Misc

Rio Games a Success at ‘Only’ 51% Overbudget

Published

7 years ago

August 31, 2016

Jeff Desjardins

Rio Games a Success at 'Only' 51% Overbudget

Rio Games a Success at ‘Only’ 51% Overbudget

Will the 2016 Rio Olympic Games be remembered as a success or a failure? It’s hard to know the answer yet.

What we do know, however, is that in the bizarro world of hosting Olympic Games, the cost overruns for Rio are actually quite favorable compared to numbers from past events.

Always Overbudget

The above graphic from HowMuch.net, a cost information site, visualizes data from a recent study by Oxford University to compare the budgets of previous games.

The study found the average cost overruns for Olympic Games to be a whopping 156% from 1968 to 2016. This means that the Rio Games were a budgeting success, at least in relative terms, by ‘only’ running 51% overbudget.

It should be noted that the study accounts only for sports-related costs, such as those relating to operations or building venues. The study excludes indirect capital costs such as upgrading transport or hotel infrastructure, since data on these costs is harder to come by, and is often unreliable. Also, some Olympic Games were omitted from the study, as they did not have available public data on the costs involved.

The Good, The Bad, and the Ugly

The good news for organizers is that cost overruns, as a percentage, are generally going down.

The 1976 Summer Games in Montreal caught everyone off guard after going 720% overbudget, and the city was saddled with debt for 30 years. Lake Placid (1980), Barcelona (1992), and Lillehammer (1994) were all grossly overbudget as well with 324%, 266%, and 277% overruns respectively.

However, recent games – with the exception of Sochi (289%) – have all been pretty good as far as Olympics go. The average cost overrun since 1998 has been just 73%.

The bad news for organizers is that costs, in general, are still going way up. Organizers are just getting slightly “better” at budgeting for them.

Here are the total costs for all games in the study – note that costs are adjusted to be in 2015 terms.

Olympic Games Costs

Lastly, the ugly part for future Olympics organizers?

The study found that the budgeting problems for Olympic Games are without precedent, as far as megaprojects go:

The Olympic Games have the highest average cost overrun of any type of megaproject, at 156 percent in real terms. In comparison, Flyvbjerg et al (2002) found average cost overruns in major transportation projects of 20 percent for roads, 34 percent for large bridges and tunnels, and 45 percent for rail; Ansar et al. (2014) found 90 percent overrun for megadams.

A major difference, however, is that sometimes infrastructure projects do get built on budget. Olympic projects, on the other hand, always go overbudget by amounts that seem almost unfathomable.

And, it is only in this bizarre context that the Rio Games can be seen as a budgetary “win”.

Related Topics:games costs olympics rio overbudget budget overruns

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Misc

Ranked: America’s Best Universities

Evaluated on 19 different metrics, here’s the list of America’s best universities, led by 14 private schools.

Published

4 days ago

November 25, 2023

Pallavi Rao

Ranked: America’s Best Universities

The latest ranking of America’s best universities is here, perfectly timed for the approaching admissions season.

“Best” is of course subjective, and U.S. News and World Report has compiled 19 metrics on which they evaluated more than 400 national universities. Some of them include:

Graduation rates & performance: A four-year rolling average of the proportion of each entering class earning a bachelor’s degree in six years or less. Performance is measured against predictions made by the publishers, and when beaten, the university gains a higher scoring.
Peer assessment: A two-year weighted average of ratings from top academics—presidents, provosts and deans of admissions—on academic quality of peer institutions with which they are familiar.
Financial resources: The average per student spend on instruction, research, student services and related educational expenditures in the 2021 fiscal year.
Debt: A school’s average accumulated federal loan debt among borrowers only.
Pell graduation rates & performance: the same calculation as stated above, but focused only on Pell Grant students, adjusted to give more credit to schools with larger Pell student proportions.

The website’s methodology section details how they sourced their data, the weights assigned to each metric, and their changes over the years.

From the hundreds assessed come the nearly 50 best universities that offer a variety of undergraduate majors, post-graduate programs, emphasize research, or award professional practice doctorates.

Which are the Best Universities in America?

At the top of the list, Princeton University is the best university in the country, known for its physics, economics, and international relations departments. Notably, it’s a rare Ivy league university that does not have a law, medical, or business school.

Here’s the full ranking of America’s best universities, along with annual tuition requirements.

Rank	School Name	State	Tuition
1	Princeton University	New Jersey	$59,710
2	Massachusetts Institute of Technology	Massachusetts	$60,156
3	Harvard University	Massachusetts	$59,076
3	Stanford University	California	$62,484
5	Yale University	Connecticut	$64,700
6	University of Pennsylvania	Pennsylvania	$66,104
7	California Institute of Technology	California	$63,255
7	Duke University	North Carolina	$66,172
9	Brown University	Rhode Island	$68,230
9	Johns Hopkins University	Maryland	$63,340
9	Northwestern University	Illinois	$65,997
12	Columbia University	New York	$65,524
12	Cornell University	New York	$66,014
12	University of Chicago	Illinois	$65,619
15	University of California, Berkeley	California	$48,465 (out-state) $15,891 (in-state)
15	University of California, LA	California	$46,326 (out-state) $13,752 (in-state)
17	Rice University	Texas	$58,128
18	Dartmouth College	New Hampshire	$65,511
18	Vanderbilt University	Tennessee	$63,946
20	University of Notre Dame	Indiana	$62,693
21	University of Michigan, Ann Arbor	Michigan	$57,273 (out-state) $17,786 (in-state)
22	Georgetown University	Washington, DC	$65,082
22	University of North Carolina at Chapel Hill	North Carolina	$39,338 (out-state) $8,998 (in-state)
24	Carnegie Mellon University	Pennsylvania	$63,829
24	Emory University	Georgia	$60,774
24	University of Virginia	Virginia	$58,950 (out-state) $22,323 (in-state)
24	Washington University, St. Louis	Missouri	$62,982
28	University of California, Davis	California	$46,043 (out-state) $15,266 (in-state)
28	University of California, San Diego	California	$48,630 (out-state) $16,056 (in-state)
28	University of Florida	Florida	$28,658 (out-state) $6,381 (in-state)
28	University of Southern California	California	$68,237
32	University of Texas, Austin	Texas	$41,070 (out-state) $11,698 (in-state)
33	Georgia Institute of Technology	Georgia	$32,876 (out-state) $11,764 (in-state)
33	University of California, Irvine	California	$47,759 (out-state) $15,185 (in-state)
35	New York University	New York	$60,438
35	University of California, Santa Barbara	California	$45,658 (out-state) $14,881 (in-state)
35	University of Illinois Urbana-Champaign	Illinois	$36,068 (out-state) $17,572 (in-state)
35	University of Wisconsin, Madison	Wisconsin	$40,603 (out-state) $11,205 (in-state)
39	Boston College	Massachusetts	$67,680
40	Rutgers University, New Brunswick	New Jersey	$36,001 (out-state) $17,239 (in-state)
40	Tufts University	Massachusetts	$67,844
40	University of Washington	Washington	$41,997 (out-state) $12,643 (in-state)
43	Boston University	Massachusetts	$65,168
43	The Ohio State University	Ohio	$36,722 (out-state) $12,485 (in-state)
43	Purdue University, Main Campus	Indiana	$28,794 (out-state) $9,992 (in-state)
46	University of Maryland, College Park	Maryland	$40,306 (out-state) $11,505 (in-state)
47	Lehigh University	Pennsylvania	$62,180
47	Texas A&M University	Texas	$40,607 (out-state) $12,413 (in-state)
47	University of Georgia	Georgia	$30,220 (out-state) $11,180 (in-state)
47	University of Rochester	New York	$64,384
47	Virginia Tech	Virginia	$36,090 (out-state) $15,478 (in-state)
47	Wake Forest University	North Carolina	$64,758
53	Case Western Reserve University	Ohio	$62,234
53	Florida State University	Florida	$21,683 (out-state) $6,517 (in-state)
53	Northeastern University	Massachusetts	$63,141
53	University of Minnesota, Twin Cities	Minnesota	$36,402 (out-state) $16,488 (in-state)
53	William & Mary	Virginia	$48,841 (out-state) $25,041 (in-state)

MIT places second, and Harvard and Stanford tie for third. Yale rounds out the top five.

Private universities, including seven Ivy League colleges, dominate the top of the rankings. Meanwhile, the highest-ranked public schools are tied at 15th, both state schools in California.

For affordability, since the higher ranks are populated by private universities, there tends to be a broad correlation of better universities being more expensive. That said, the most expensive school in the top 50 ranks is actually the University of Southern California, tied at 28th, for $68,237/year.

As it happens, also tied at 28th, the University of Florida is the most affordable public school for in-state students ($6,381/year) and Florida State University tied at 53rd, is the most affordable for out-of-staters at $21,683/year.

However these costs are tuition-only, and don’t account for other necessary expenses: accommodation, food, and textbooks.

Best University versus Best “Fit”

Finding the best university for prospective students is more than just perusing a long ranking list.

Aside from the numerous schools present within each university—which can often be the best for specific majors—factors like location, proximity to family, campus culture, the non-academic pursuits (sports, extracurriculars, internships) are also taken into consideration.

In fact, research has found that just attaining a university degree improves future earnings potential and employability.

Furthermore, individual engagement at college (irrespective of the rank of the school in question) plays a far bigger role in learning and general well-being than simply attending a highly-ranked school.

However, for low income and minority students, attending a top-ranked school does improve future earnings considerably. For women, it also often results in delaying marriage and kids, which results in more work-hours and as a result, more pay.