Two letter writers to The Wall Street Journal‘s Wednesday Letters section disputed Harvard Professor’s Maya Sen’s “defense” of Harvard’s 69% “overhead” cut of any Federal research grant sent Harvard’s way. One noted that Sen had chosen to elide any actual facts regarding

the [overhead] costs that the reimbursement was intended to cover to support her claim that the 15% rate is insufficient.

He noted Sen’s disingenuousness in her expectation that we taxpayers should just trust the school’s managers to do the right thing. His view was that, in light of this attitude, research grants should be discontinued altogether.

The other letter writer cited Yale’s condition as a typical case:

Yale has a $6 billion annual budget with 8% coming from tuition and room and board, and 20% from grants and contract income. It has a $41 billion endowment and pays little in tax.

As he put it, this is Yale crying wolf.

No to Sen, almost entirely yes to the letter writers.

There’s no reason to believe the amount of money for research in a grant would fall as a result of lowered caps for grant overhead. The only thing that would be limited is that overhead; the money in the research part of the grant isn’t affected in the slightest—except by university managers who confiscate that research money for their overhead chimera.

I don’t entirely disagree with the first letter writer’s position regarding ceasing grants altogether, but I think it would be sufficient, instead of capping the overhead cut at 15%, to cap it at 0.00%, and the schools can accept that or get no grant at all. They can take their claimed overhead costs out of their endowments or jack their tuition further. Instead of us taxpayers paying for these confiscations, let the schools’ investors/donors or their students (parents) pay for them.

For those schools that have such puny endowments or that have properly low tuitions that they truly can’t hack the overhead costs on their own—rather than viewing the whole grant as income the way Sen confessed Harvard does—the relevant State government can make up the shortfall. The State’s taxpayers should be the only ones paying the costs of the schools in their State. That would magnify the voice of those taxpayers and perhaps lead to tightening up on school managers’ fraud, waste, and abuse.