War for economic future must be won with higher ed

Updated 11:00 AM November 17, 2003

State of the Universities address

War for economic future must be won with higher ed

By Laurel Thomas Gnagey

The state's 15 public universities are key to economic recovery for Michigan and should be supported appropriately if they are to continue to educate the workforce that will be needed to increase jobs in the state, Wayne State University President Irvin Reid said Nov. 12 in the first State of Public Universities address in Lansing.

"As we struggle to strengthen Michigan's economy, it is apparent that we are in a war for our state's very economic future," Reid said. "Failure to recognize the need for high-quality public universities is to disarm ourselves unilaterally in the fight for jobs."

The Presidents Council, State Universities of Michigan, sponsored the event, which was attended by leaders of the 15 public universities, including President Mary Sue Coleman, U-M-Dearborn Chancellor Daniel Little and U-M-Flint Chancellor Juan Mestas. Also present were state lawmakers, members of Gov. Jennifer Granholm's administration and a number of representatives of higher education organizations.

Increasing cuts in state appropriations for colleges and universities have a direct impact on access to higher education and, thus, are threats to Michigan's economy, Reid said. Last year's cut of 10 percent from colleges and universities was met with a corresponding 9.9 percent average hike in tuition, which he said was necessary for the state's universities to continue to serve the 288,000 students enrolled in the 15 public institutions. U-M's tuition increase was among the lowest in the state and the lowest in the Big Ten at 6.5 percent for in-state undergraduate students.

Despite universities' overall increase in financial aid, which in many cases exceeded the tuition hikes, Reid said the state cannot continue on the path of cutting support to universities if it wants to keep college affordable for its residents.

"Access is tied to affordability. And affordability is tied to the level of our state support. Maintaining, let alone increasing, access is being threatened by a disturbing pattern of declining state support with no sign of reversal," he said.

"Twenty-five years ago, three-fourths of our universities' general operating revenues were funded through appropriations and the remaining one-quarter through tuition. Today, state support accounts for less than one-half of general university operations. I appeal to our legislators to halt if not reverse this trend."

After the address Coleman noted that the joint message from the 15 public universities was a valuable opportunity for the presidents and chancellors to unite and relate their contributions, and their concerns, in a public forum.

"It is very helpful to be able to underscore the value of institutions such as the University of Michigan, and that we want to ensure that the fiscal problems of the state do not put our quality at risk," she said. "But, just as the governor has been communicating the tradeoffs in services that reduced revenues are creating, we want our elected officials, and the public, to understand that if the support of the state erodes further, there will be an impact on the student experience, an area we have protected to this point."

A goal of the Presidents Council, State Universities of Michigan is to communicate the value of higher education to the state. A survey conducted by the council and the Michigan Economic Development Corporation says universities contribute to their communities by generating $26 of economic impact for every dollar invested, the highest rate of return for any state public institution. Using the U.S. Labor Department statistic that adults with a four-year degree earn nearly $20,000 more per year than those with only a high school diploma, or approximately $1 million in a lifetime, Reid said graduates contribute more than $35 billion in personal earned, taxable income annually to the state of Michigan.

In addition to communicating about the value they add to the state, Reid said the universities will continue to cut costs, while maintaining academic integrity. He said collectively the 15 universities have trimmed $159 million but, in the process, have had to lay off 1,500 employees.

He said the universities also will work to increase access for the 277,000 additional students it would take for Michigan to reach the national average for college participation; the 15 universities will work with the governor and legislators on increasing technology transfer by getting more inventions to the marketplace, thus creating jobs; and they will work to ensure that a reauthorization of the federal Higher Education Act reflects the need for college affordability through expansion of grants and work study programs.

The state is facing a $920 million budget shortfall this year.

State of the Universities address

War for economic future must be won with higher ed

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