jan 11, 2002: mark yudof, "is the public research university dead?"

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The Chronicle: 1/11/2002: Is the Public Research University Dead?

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From the issue dated January 11, 2002

POINT OF VIEW

Is the Public Research University Dead?

By MARK G. YUDOF

Public colleges and universities have raised tuition this year at thehighest rates in eight years, according to the most recent annual

College Board survey -- ratcheting up fees by an average of 7.7percent, or more than twice the rate of inflation. Most observers pointto the faltering economy as the major reason for the increases, aspublic institutions have sought to offset drops in state support. Morerecently, the attacks of September 11 have compounded pre-existingeconomic difficulties.

Indeed, the National Conference of State Legislatures has reported that43 states are experiencing revenue shortfalls and more than half areconsidering budget cuts. And at least nine governors have warneduniversities to expect midyear rescissions in their state appropriations.

For public research universities, those developments represent only thedeepening of a long-term and structural trend toward relatively lessstate support. Even in the past few years, when state budgets wereexpanding, public research universities made little headway against thelegacy of previous lean years. Thus, regardless of the economy, in theforeseeable future, students at public research universities will have to

pay more of their own educational costs, and the role of suchinstitutions will fundamentally change.

More than a century ago, state governments and public researchuniversities developed an extraordinary compact. In return for financialsupport from taxpayers, universities agreed to keep tuition low andprovide access for students from a broad range of economic

backgrounds, train graduate and professional students, promote artsand culture, help solve problems in the community, and performgroundbreaking research.

Yet over the past 25 years, that agreement has withered, leaving public

research institutions in a purgatory of insufficient resources anddeclining competitiveness. The gap between professors' salaries atpublic and private universities, for example, has grown from $1,400 in

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1980 to $22,100 today. As a result, public institutions find itincreasingly difficult to compete for the best faculty members who, inturn, attract the brightest students and significant research dollars.

Demographic changes lie at the heart of public research universities'predicament. Over the past 40 years, the proportion of Americanfamily households with children has declined from almost one-half toone-third. The country's aging population appears more interested inissues like health care and public safety than higher education. While

higher education's share of average state spending fell 14 percent from1986 to 1996, Medicaid's share nearly doubled. The funds allocated to

correctional facilities grew by more than 25 percent.

Observers may note that, over the past 25 years, state support forhigher education has generally kept up with inflation, as measured bythe consumer price index. But public research universities areextraordinarily laborand technology-intensive enterprises; to attract top

talent and stay on the cutting edge, they must invest and spendsignificantly more than the inflation rate.

Meanwhile, as state support for higher education has declined relative

to other public services, the value of education to students hasincreased substantially. After adjusting for inflation, a male college

graduate today makes an average of $32,000 more each year than ahigh-school graduate, compared with a $15,000 gap in 1975. Over alifetime, a person with a bachelor's degree will earn an average of $1-million more than a high-school graduate; a professional degree widensthe differential to $3-million. With the wage premium rising, educationis increasingly seen as a private, rather than a public, good.

Given that reality, both federal and state policy makers are askingstudents to shoulder a larger share of their higher-education expenses.

Already students at public research universities are paying more; at theUniversity of Minnesota, for example, their tuition covers nearly two-thirds of the direct cost of instruction, compared with the one-third thattheir peers paid 25 years ago. In the same vein, elected officials prefer

market accountability -- with institutions competing with each other forstudents -- rather than traditional public oversight to ensure quality.And rather than provide operational support to universities, theyencourage universities to charge higher tuition, then favor giving directaid to students in the form of scholarships and tax benefits to helpmake that tuition affordable.

As state support erodes, flagship research universities face otherchallenges. Many local businesses now operate more globally and areless oriented toward state or regional concerns. In addition, businessesare creating their own educational programs, such as Motorola

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University or Dell University, to focus on specific work-force needs.

Moreover, increased enrollment in higher education over the past 30years, and the growth of regional universities within states to meet thatdemand, has further diluted state support. Although such institutionsoften have limited research capacities, their emergence has sharpenedcompetition for state dollars.

Where will such trends lead? The 21st century will see the evolution ofa hybrid public research university, one with roots in both the publicand private spheres. That new hybrid will confront significant newchallenges.

The first will be to convince the public and decision makers --governors, legislators, and regents -- that tuition must increasesignificantly to keep public research universities viable andcompetitive with private research universities. Raising tuition furtherwill be anathema to many students, who are already paying a largerpart of their instruction costs. University advocates will have todemonstrate that it is "worth it" -- to their regional economy and

society, as well as to students -- to charge more in order to support a

high-quality research institution. To do so, and to maintain the traditionof public universities, they will have to ensure access for low-incomeand historically disadvantaged students through expanded institutionalstudent-aid and scholarship programs. That, in turn, will require publicuniversities to accelerate their efforts to garner philanthropic dollars, aswell as to secure stronger political support for government initiatives

that give financial aid and tax benefits to students.

The continuing need to provide public goods will be another challenge.Especially at land-grant institutions, students and parents may questionusing tuition dollars to pay for extension services and other outreach

activities that don't directly improve students' education. Also, whatcan be done about professional-degree programs that usually cost farmore money than tuition will ever generate -- for example, those inmedicine, dentistry, and veterinary science? Public universities mayhave to explore new partnerships with private foundations andorganizations, charge fees for traditionally free programs, and call formore direct, earmarked state support.

The hybrid university also faces a philosophical tug of war: Tocompete in the market, it will have to operate more efficiently andradically improve student services. But to remain a great learning

institution, it will have to continue to nurture learning for its own sake,transmit cultural values, encourage civic understanding, and fosterother less quantifiable and profitable -- but still valuable -- features of

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The author William Arthur Ward once said, "The pessimist complainsabout the wind; the optimist expects it to change; and the realist adjuststhe sails." Unfortunately, we at public research universities and oursupporters have fallen into a pattern of blaming the circumstances of

the day -- this year's economy, the current legislature or governor, orthe media -- for our dwindling share of state resources, rather thanfocusing on our future over the long haul. Keeping public researchuniversities relevant and thriving will be no easy task, and we should

start by recognizing that the long-term political winds have shifted.

Mark G. Yudof is the president of the University of Minnesota.

http://chronicle.comSection: The Chronicle ReviewPage: B24

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Copyright 2002 by The Chronicle of Higher Education

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jan 11, 2002: mark yudof, "is the public research university dead?"

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