Abstract: This paper describes a novel policy mechanism for revitalizing U.S. public higher education in the age of COVID-19. In place of the current tuition-as-revenue model, we propose the “Uni” model, whereby public colleges and universities tap their latent fiscal authority to issue and circulate complementary currencies. Like their U.S. dollar counterparts, Uni currencies will obtain value because they will be accepted by colleges and universities in payment for tuition, fees, meal plans, and rents. Unis may also be disbursed by their issuers in payment of local property taxes, creating new liquidity for their host communities. In order to satisfy its dual mandate, and in line with its experimentation with the Municipal Liquidity Facility, the Federal Reserve Bank of the United States should be petitioned to accommodate the Uni system. When implemented, the Uni system will enable colleges and universities to forego reckless plans to reopen in fall, keeping workers paid and students safe throughout and beyond the current crisis.
Keywords: Public education; Public finance; Crisis pedagogy; Federal Reserve; Municipal Liquidity Facility
JEL codes: B55, E12, G23, H11, I23
