i have no problem budgeting for a reasonable tuition, its the additional 3-4k of cost shifting funds that bother me.
I agree. It is a bit funny that we shift the cost to the other parents. I don’t see how they are more liable than any one else in the community.
However, I think you need to build more information into your model, thus:
lets work backwards for a second: if a class has 20 boys, each paying 7k that equals 140k. lets subtract 50k for the rebbi’s salary and 30k for the english teacher, we’re left with 60k to cover admin/building/misc. this seems reasonable to me.
with that said tuition shouldn’t be above 7k?
Maybe the model should look like this:
If a rebbi’s salary costs 50k and an english teacher costs 30k, and administration costs 60k, then the cost to run the class is 140k. If there are 10 parents who can afford to pay between 7k and 14k, and 10 parents who cannot afford anything, then the tuition will have to be 14k. Then, the only choice left is whether to have a class of 10, or allow the other 10 to come.
But, you’ll say we have more than 10 who can afford to pay 7-14k, because we could really combine all the payers into one school, and have tuition of 7k, and leave the others out in the cold.
So that’s where I’m holding in the cheshbon now, and that may be the correct way to view it. But, I may be missing more steps. And my model will only hold in larger cities, but not in the smaller ones.