Back in 2000, just as the Martin Center (then called the Pope Center) was getting going, the UNC system pushed for a huge bond package, declaring that the state had to “invest” in higher education. When we examined things closely, it was apparent that quite a few of the buildings that had either to be either torn down or renovated at great cost had been suffering from deferred maintenance. Spending money on upkeep was a low priority for the administrators. (Voters approved the $3.1 billion bond package.)

The tendency for government and non-profit institutions to let maintenance slide in favor of more glitzy spending is still with us, of course. In today’s Martin Center article, Jane Shaw ponders this problem. She writes:

Organizations that don’t have to make a profit — such as governments — are more susceptible to deferring maintenance than are private profit-making companies. For a profit-making firm, the ultimate costs of deferred maintenance are potentially so high that they can make the difference between success and bankruptcy. So maintenance in private firms is rarely deferred.

In contrast, governments hardly ever go bankrupt, and non-profits rarely do.

Moreover, universities underutilize their buildings, but still clamor for more new construction.

Read the whole thing.