The McCombs School of Business is too good for $9.4 million. They laud the newly subscribed tuition deregulation plan, but questionably reject multi-million dollar private sector scholarship grants that could assist needy students in coping with the inevitable tuition hikes, commonplace at other universities where deregulation has been adopted.

The Austin–based Roy F. and Joann Cole Mitte Foundation withdrew its $9.4 million grant to the school of business, which would have afforded financial awards for 100 needy undergraduates business students and 15 MBAs for 20 years, after University officials raised pesky concerns against one of the foundation's executives.

The University's beef was with Scott Mitte, son of founders Roy F. and Joann Cole Mitte, who had resigned last year as executive director of the foundation after disclosures that he had been sued four times for alleged sexual harassment. The cases in question involve women Scott Mitte worked with at the foundation. All have been settled out of court with Mitte denying any wrongdoing. However, he still remains on the foundation's board of directors, and was assigned to oversee the scholarship program at the University.

The Mitte Foundation claims the University was more concerned about allowing the foundation to play an active role in administering the scholarship program than it was about about Scott Mitte's involvement — an allegation the University refutes. One of the preconditions for the grant was that the foundation "remain actively involved with its students, including reviewing and approving scholarship applications."

While it is laudable that the University seeks to shield us impressionable souls from the alleged sleazy, perverted and oversexed corporate executives of the world, should the steadfast embrace of such elitist and moralist high ground come at the cost of financial aid for needy students? In an era of rampant budget cuts and diminishing state support, Texas' higher education institutions must now turn to alternative sources of funding, especially the private sector. Like the rest of the nation, Texas is mired in a mini depression; this is certainly not the time to be exceedingly picky in accepting philanthropy. How much money does the University hope to raise if it resorts to conducting thorough background checks on the employees and their children of every potential philanthropic organization?

If the University's goal is to maintain affordable learning for students, it must be amply committed to securing scholarship money. Instead of renouncing the Mitte Foundation, leading to the withdrawal of the grant, the business school could simply have suggested that Scott Mitte be replaced if personnel concern was the issue. But clearly it was not. Philanthropist typically provide their funds at a small cost — control, which the University seems hardpressed to relinquish. If this pettiness persist, donors will simply take their money elsewhere, which is always a loss for students.

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