|
Editorial ColumnsPennsylvania's best assets need proper investment
Graham B. Spanier
Imagine if Pennsylvania landed a fantastic deal to attract a global, high-tech enterprise to the state -- an enterprise that would have facilities across the Commonwealth and could generate an economic impact of $30 billion annually. Sound too good to be true? How about if this same enterprise had the ability to pull in billions of dollars in research, employ 150,000 people, and contribute to the cultural and social well-being of all Pennsylvanians?February 19, 2006 There would be plenty of people shouting "Roll out the red carpet!" It turns out that Pennsylvania already has such an enterprise - its colleges and universities. Higher education is a major asset to the commonwealth, creating jobs and driving the economy, providing opportunities for personal enrichment and making discoveries that improve our quality of life. But its future is precarious. In Governor Ed Rendell's proposed budget for 2006-07, about 8 percent of the total budget is earmarked for higher education, a percent that has been eroding over time. The Governor's proposed 3.3 percent increase for Penn State is more than we have seen in recent years, but it will barely return us to our funding level of 5 years ago, and in the face of steeply rising costs such an appropriation falls far short of what is needed to hold our tuition at the current rate, which had been the goal for 20 of our campuses. For every dollar that is appropriated by the Commonwealth, Penn State returns $19.42 in economic impact. Pennsylvania should not allow one of its best performing investments to be under funded at a time when the state so desperately needs the contributions Penn State and its other universities offer. Within the next several weeks, public higher education leaders will trek to Harrisburg to make their annual case to legislators, with the hope that more funds can be added. I will be among those who field questions and argue for increased funding to support one of our nation's leading universities and Pennsylvania's single biggest economic engine. So why should legislators care? Consider that a recent independent report on Pennsylvania's struggling economic picture by the Brookings Institution pointed out that Pennsylvania's colleges and universities have the potential to drive the state's economy forward in critical ways, but the potential has not been fully tapped. The report urges Pennsylvania leaders to focus on its colleges and universities and their wide-ranging impact as educators, employers, and procurers of goods and services. The funding a state provides to its public institutions not only sends a definitive message about its priorities, it also provides a hint of what the state's future may hold. For Pennsylvania, its investment in public higher education has failed to keep pace at exactly the wrong time -- a time when the key to economic prosperity is a well-educated workforce and research discoveries that will produce technological innovation. Penn State educates more students than any other university in Pennsylvania and touches half of all households in the Commonwealth with its outreach activities. Its $638 million research program helps create new products, businesses, and jobs. Yet the proposed state budget inexplicably provides no increase for the outreach provided by our Extension and Agricultural Research programs, and allocates a smaller percentage increase for Penn State than any state-owned or state-related university. Since its beginning, American public higher education has been based on an important social compact. Our public institutions contribute to society through education, research, and public service. In exchange, the public invests in our colleges and universities. But the investment is eroding. Today, less than 10 percent of Penn State's budget comes from legislative appropriation, and the university has few options for increasing revenue beyond raising tuition. Unfortunately, the burden for the cost of education has dramatically shifted from state support to students and their families. This is a source of tremendous concern, particularly since these financing trends are likely to continue, increasing the financial pressure on Pennsylvania's families. At every level of the University, we have looked for ways to reduce spending without damaging the integrity of our academic programs. Over the past decade, Penn State has aggressively trimmed budgets, producing nearly $139 million in budget reallocations. We have closed programs and absorbed more than $40 million in state budget reductions. But we can't cut our way to success. In higher education, we recognize that our needs are only one component of the state's budget, and there are certainly compelling, competing needs. However, an additional investment in our public universities will yield tremendous benefits for Pennsylvania residents. Pennsylvania's future depends on strong public investment in higher education. As the steward of the academic quality and reputation of Pennsylvania's largest public university, I will continue to make the strongest case possible to the Legislature for additional support for our 2006-07 budget. My commitment to working with the leaders of our state is based on my belief that we all have a common goal - to build a stronger Pennsylvania by providing residents with the skills and knowledge needed to move forward. |
