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New York City Mayor Bill de Blasio unveiled a proposal on Feb. 27 to create a new type of public university with the aim of reducing the cost of higher education. Under de Blasio’s proposal, students entering New York City public colleges and universities would pay tuition based on the median income of the student’s family, much as tuition costs are currently based on the cost of attending private colleges.
New York City’s private universities generate tuition revenue primarily from wealthy New Yorkers, while public universities generate tuition revenue primarily from middle-class and working-class New Yorkers. It is the middle class who are paying de Blasio’s tuition proposal, and of course the mayor is facing no small amount of backlash over the prospect of his plan.
Despite this, it’s important to recognize that this proposal is not new. Indeed, a proposal similar to this was made in 1971 by a New York City councilman named Daniel Patrick Moynihan. Moynihan, however, did not win.
Moynihan called for creating two types of tuition: tuition for the most affluent students, which would be based on the median family income of the student’s family, and tuition for the less affluent students based on the average income of the student’s family.
To be sure, Moynihan’s proposal found some support. In 1971, the last year Moynihan introduced this bill, the New York City Council passed a resolution to support his proposal.
Moynihan’s proposal became a reality in 1977 when Mayor Abe Beame signed legislation creating what was officially called the Beame Plan. Under the Beame Plan, tuition and fees were based on the median family income of the student’s family. And the average student saw a 7.6 percent tuition decrease between 1978 and 1989.
Indeed, the Beame Plan had to be expanded by the City Council in 1988 and 1990 to cover “high cost colleges,” including City University of New York and the City University of New York School of Law, where tuition is around $50
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