US overspends on universities?

Amusing snippet in the Chronicle

Economist Says U.S. Spends Too Much on Higher Education

A paper released today by Richard K. Vedder, a professor of economics at Ohio University…says that most incremental appropriations to higher education lead to higher spending rather than lower tuition, and new funds often go to non-instructional purposes, such as administrative salaries, student services, fancy recreation facilities, intercollegiate athletics, and research.

Even richer pickings in the paper itself:

What might be some useful reforms? Emulate competitive market practices by increasing incentives for college decision-makers to reduce costs, for example by giving bonuses for cost savings. Tie presidential compensation to indicators both of qualitative improvements and tuition cost restraints. Numerous potential cost-savings come to mind. The central administration should rent buildings to departments to encourage more efficiency, including year-round use. Slash administrative staffs. Increase teaching loads. Eliminate low enrollment and costly graduate programs. Get out of non-instructional businesses like housing,food,and building maintenance.

And so on. Entertaining stuff. But, if the administration has been slashed who is going to rent out the buildings?