What's the Matter with Koch U?

There's much ado in Madison today about the news that the Koch Bros. made a $1.5 million gift to the economics department at Florida State University accompanied by numerous strings, including significant power over faculty hiring.

Over at Sifting and Winnowing, professors and students are debating whether or not we should be concerned about this event given the potential the New Badger Partnership creates for changing the rules of the game at Madison in ways that could increase authority of a governor-appointed board to make such decisions based on pure economics.

One writer, "Patrick," contends that the FSU incident is no big deal, because "I was under the impression this kind of thing has been going on basically forever in one form or another no matter where the funding comes from. Maybe attaching explicit strings to funding like this is a bit more open than usual, but I don’t understand how it’s any different."

To some extent, Patrick is right: donors often have conditions. In particular, they have interests in specific kinds of work, methodologies, and expertise. But faculty have conditions and obligations too. For example, at UW-Madison right now:

(1) Faculty are protected from pressure to accept every dollar offered by being paid reasonably well by their institution. That includes time for research. Sure, we still feel a desire (in some disciplines) to raise summer money and money to buy out of teaching and money for assistants and supplies-- but the fact that our base salary rarely depends on external funds helps reduce that pressure. In fact, no matter how much external money we raise our base salary is not enhanced by that money (unless it gets us a raise, which I'm told is rare) and it (supposedly) doesn't affect our chances for tenure.

(2) Faculty are further protected by obligations to disclose funders to Institutional Research Boards and on "outside activities" reports. We are asked about potential conflicts of interest.

(3) Faculty are protected by shared governance. No donor can interfere in hiring or tenure as long as that stands.

(4) Faculty are further obligated by a community which (currently) has a strong norms that uphold consideration of ethics and values in decisions about funding. As the professors said in the Campus Connection piece, this wouldn't happen at UW-Madison-- at least right now.

Those protections are crucial, for what they do is minimize the potential consequences of "academic capitalism." That term, according to UW-Madison alum and scholar Sheila Slaughter and her co-authors, means "market and market-like behaviors on the part of universities and faculty.”

The risks of academic capitalism at public research universities include a move "away from “access” (for students who are not employed and do not have easy access to good jobs) towards “accessibility” (benefiting the already employed)....this reverse[s] a pattern established over most of the 20th century: a push to increase access for low-income and minority student populations. Interestingly, academic capitalism in the new economy involves the pursuit not of mass markets, but of various privileged, niche student markets, with the effect being to change one of the basic functions of most higher education institutions in the U.S."

UW-Madison seems increasingly vulnerable to academic capitalism: despite its high rankings it is clearly still on a quest for legitimacy, strongly inclined to try and enhance revenue flows rather than reduce dependency on resources, and seemingly quite open to embracing the influence of globalization. Frankly, it's a prime target for donors with agendas-- but right now, there is a substantial palace guard protecting us. Dismantle that guard-- as I think the NBP with its new Walker-appointed board and focus on private fundraising will-- and watch the chips fall.

Think I'm exaggerating? Here's the report on a top Walker cabinet member, Department of Administration Secretary Mike Huebsch, on the NBP (hey thanks Vince Sweeney for pointing this one out!):

"Speaking in Brookfield Wednesday at a gathering of the Metropolitan Milwaukee Association of Commerce, he [Huebsch] told the group it would bring a free-market approach to the university system similar to that of a corporate business..."

UW-Madison -- the new Koch U?
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This is depressing, so let me end instead on an alterative vision proffered by Slaughter and Rhodes:

"We believe that in place of these policies, faculty and their associations and unions should reprioritize the democratic and educational functions of the academy, in addition to the local economic roles in community development that colleges and universities can play. They should systematically challenge the privilege and success of the private-sector economy that is being mirrored in higher education today, subjecting the increased investment in entrepreneurial ventures to more public discussion and more public accountability. After all, as with the dot.coms in the private sector, much academic capitalism ends up losing revenue and cost shifting to the consumer—in higher education in the form of higher tuitions. We believe that faculty and their associations and unions should redirect attention to just who exactly is benefiting from certain forms and patterns of higher education provision, and in doing so emphasize the importance—particularly during a time in which some states are realizing a new majority population—of expanding educational opportunity for those who have historically encountered social, economic and cultural barriers to entry. In the face of academic capitalism in the new economy, academics and their associations and unions should consider their own participation in this process and begin to articulate new, viable, alternative, paths for colleges, universities and academics to pursue."

Reforming Wisconsin Public Higher Education: Part 2

Here's perhaps the only thing I like about the New Badger Partnership: it's got people talking about reforming public higher education in Wisconsin.

The downside is that the terms of the conversation are constrained by its leadership: right now it's a conversation about how a single, expensive institution can continue to have lots of money to do its work. The state needs to transform this into a broader conversation about creating a more sustainable model with which to provide public higher education to all state residents.

That requires far more than a few "flexibilities" or the creation of yet another governing board. There are fundamental issues we have neglected to tackle for far too long. And these issues make university administrators and faculty members very uncomfortable, for they strike at the core of the enterprise. The trick is how to "strike" at the core in a way that transforms it into something better, rather than something awful.

Here are big questions we must begin to consider and address if the overarching goal of sustaining a public higher education model in the state will be met:

(1) How can we best increase institutional performance on several metrics related to undergraduate and graduate education?

(2) How can we tie some of the funding for higher education to performance? (Right now we pay for "butts in seats" not completed credentials)

(3) How can we best assess duplicate or similar programs that could be meaningfully consolidated?

(4) Are there too many public higher education institutions in the state?

(5) Are all senior administrator positions adding value? What about all professors?

(6) Are all degree programs at each institution adding value?

What the NBP Really Costs

UW-Madison is a rock star. Look at how we stack up in nearly every ranking imaginable! It is a public Ivy, and there is no objective indication that the model that built this institution has stopped working, causing a consistent downward slide. Indeed, its own press office notes that it "continues to be lauded" and the Badger Herald reports the same from key members of the Administration.

Now consider this: For the last 18+ months, University Administration has spent an enormous amount of time trying to change the way UW-Madison is governed and financed. They've pushed a plan that includes no specific, demonstrable cost savings. And their efforts have consumed enormous resources, including but not limited to a preponderance of the time and attention of all Bascom Hall leaders (at least 10-12 people, if not more), their staff, deans and other administrators, faculty from across campus, and graduate and undergraduate students. Plus all of those media resources (town hall meetings, flyering, computing time, etc). Not to mention the resources spent by our alumni on the Badger Advocates and the WAA's robocalls promoting the NBP.

And for what? All that money spent to promote a plan without a single demonstrable $ savings attached to it? And now, rumors that instead of "money-saving" flexibilities we are going to get not one but two new governing boards?

I've said it before, and I'll say it again-- a hard look at this plan indicates that it's not about money, it's about power.

My crystal ball says the first thing to go is shared governance. It is undoubtedly inefficient. And many of those in charge give us every reason to think they don't truly believe in it.

The big question is this: Do you? What are you willing to do to protect it?

Or perhaps, instead, you'll welcome a shift to professor accountability, such as that being implemented at public universities which lack shared governance.

UW-Madison is Elite, But it Doesn't Have to be Elitist

Several critics of the New Badger Partnership contend that the policy will accelerate the development of UW-Madison as an elitist institution. In response, proponents of the policy ask "what's wrong with being elite? Madison is elite."

Both are right. The words "elite" and "elitist" mean different things.

Many people are clearly confused about the difference. In a discussing a column by a UW-Madison alum concerned about his alma mater's latest moves,"badgertom" writes "You call UW-Madison elitist. But clearly they are the very best."'

As recent events have starkly highlighted, Madison is both elite and elitist. The first is a good thing--it means that Madison is a objectively a top performer, excellent in many ways. The second is not-so-good, since it means that Madison is exclusionary, focusing on preserving its own privileges at the expense of others.

I think evidence of both abounds, but unfortunately much of the rhetoric coming from Madison's leaders these days emphasizes the elitist approach the flagship is taking to deliver an elite education.

To wit:

(1) Multiple administrators have claimed that the flagship is hindered by its relations to other universities, even "shackled," and instead must be "freed." More importantly, while some claim that no harm will be done to other universities, others claim "Not our fault if they are hurt." They seem to have no capacity to imagine ways to remain strong and excellent without outcompeting others (see the graphic...)

(2) Chancellor Martin has claimed that those who oppose the plan have not done their homework ("You need to get your data and you need to get it right"); else they would get on board. She has also dismissed students' concerns that the debate has engaged some and not others, disenfranchising the less powerful members of Madison's community. Other proponents of the NBP do the same, putting down critics as "not so able." Making people look or feel silly for highlighting power dynamics is a common tactic of elitists.

(3) In their most honest moments, some NBP proponents have admitted that if access and quality must be traded off, they will pick a "higher quality" institution that is less accessible -- supposedly necessitating the exclusion of some. The third option-- improving productivity, thus making high quality opportunities affordable--is ignored.

(4) Administrators have insisted on using elitist language--specifically, short repetitive words and phrases like "tools" and "flexibilities" and simple syntax-- as a form of controlling the terms of debate. This is not language that encourages an inclusive policy debate but rather one that serves to protect the powerful. Don't believe me? A recent email from Bascom told some members of the UW community: "When I spoke briefly with all of you... on April 27, I asked that one of your key talking points moving forward should be a consistent mention of momentum. With each passing day, support for NBP is growing stronger on and off campus, and we need to make sure we make note of that." And lo and behold, Chancellor Martin's most recent missive to her constituents says, "Lawmakers are just beginning to focus on the higher-education portion of the budget and as we continue to make our case at the Capitol and in the community, we are gaining momentum."

To sum: those that are claiming Madison is acting elitist are not claiming it should not be an elite institution (contrary to what "mikeylikesit" says). But sadly, those pushing the NBP have employed a highly elitist process and elitist rhetoric in an effort to keep UW-Madison elite.

Who Should Pay for Public Higher Education? Who Will?

On the subject of public higher education, with whom do you agree?

Person A: "Since most of the financial benefits of college go to the student, he or she should pay a large portion of college costs. Even with the large tuition increase, [our tuition is] well below those of many other prestigious flagship public universities. The ... bureaucracy is bloated, teaching loads are low, and most of the budget goes for noninstructional expenses. Most attendees come from moderately to very prosperous families that can shoulder this extra burden. Lower income students are largely protected by ...financial aid policies and by an increasingly generous federal student assistance program."

Person B: "The budget situation facing the university... is truly dire. It’s been a long time coming, and while they could have done more to restructure costs to reduce what they now will get from students, no amount of resource planning could have forestalled a crisis at this level. That said, retroactive finger-pointing at the Regents and the administrators isn’t going to solve anything. Strong public universities can survive bad government for a while, but eventually the wheels start to come off. They’re the people who’ve got the job to right this ship, and I hope they will. The bigger problem is with state government, as the lion’s share of the responsibility has to lie with the legislature and Governor, who for decades have been presiding over the erosion of public investments in higher education, while they’re jacking up spending on prisons and the state share of Medicaid. Like it or not, government officials are the investment managers of the portfolio that will pay for our collective future. Too many people seem to think it’s possible to insulate public institutions from the consequences of dysfunctional government. It doesn’t work that way: strong institutions can survive bad government for a while, but eventually the wheels start to come off."

Person C: "For decades states have been unable to provide public research universities with the levels of financial support they need to prosper, and our nation’s current economic problems have dug the holes that they face even deeper...The real danger is that higher tuition levels may lead to decreased public support. Increasingly tuition increases must provide the resources to offset limited increases, or decreases, in state support. To maintain their accessibility to students from all socioeconomic backgrounds, the great public research universities have developed institutional financial aid programs, and they need to annually demonstrate to state government that these programs are working...The real danger from [a tuition] increase is that unless the public can be educated about the great bargain that attending the university...remains, its higher tuition levels may lead to decreased public support for enhanced state funding in the future and thus to a continuous cycle of large tuition increases. Furthermore, absent the large endowments and flows of annual giving that many public research universities have, public comprehensive universities and two-year colleges will not have the institutional financial aid resources to move to a high tuition-high aid policy. Large tuition increases at the public comprehensives and the two-year colleges have the real potential to reduce access, and state governments need to understand the importance of state support to prevent this from happening."

Sound familiar?

Surprise: none of these folks was talking about UW-Madison. All three were speaking of the University of California's crisis back in 2009.

One of the dominant trends in higher education over the last 30-40 years is the rapid shifting of the costs of public higher education from the shoulders of the government onto the backs of students and their families. Many but not all see this as a problem (those that do not tend to underestimate the public returns to higher education and overemphasize the private). And people disagree over the solution.

Is the New Badger Partnership a solution?

Let's ponder some possible scenarios, given the wisdom of the three folks whose perspectives are noted above:

(1) Status quo: UW-Madison has been dealt a large cut in Governor Walker's proposed budget, so the status quo involves a reduction in state funding. Right now the state puts in slightly more than half of the costs of our core mission, with tuition covering the rest. This cut will be offset with increased tuition at a rate determined by the Legislature and the Regents--which will shift the burden onto families, who will then cover slightly more than half the costs. The hike will be restrained by those entities, who must balance the needs of the state and the collective with the needs of individual institutions. To compensate for the remainder of the cut, UW-Madison will be required to either reduce "quality" or find more productive ways to deliver education. After an economic recovery, Madison will remain with UW System and could theoretically become part of a unified effort to gain increased support for public higher education in Wisconsin, holding tuition down. In the meantime, the best case scenario is that the strong incentive to improve productivity will crack the "iron triangle," forcing UW-Madison to maintain quality and access with fewer resources-- in other words, by finding more efficient ways to serve students.

(2) Full NBP, Scenario A: If UW-Madison administrators get what they are asking for, and their numbers are correct, then the cut will be offset with a tuition hike comparable to the one described above, together with savings from the various efficiencies they've proposed. As Darrell Bazzel's projections clearly indicate, the gap between the contribution of families vs. the state in terms of footing the bill will grow over time (see the green and blue lines in the Projected Budget slide). Again, if Admin's numbers are correct, then no additional sacrifices to quality will be required-- and at the same time no increases in productivity will be demanded. After an economic recovery, Madison's tuition will be managed by its new Board of Trustees--if Bazzell's projections are right, and the state continues its modest support and does not divest, then over time the relative burden placed onto families should grow each year. Actually, let's be clear-- the burden will be shifted further and further onto families making more than $80,000 -- those with the most powerful parents, who most often vote. What can we expect that to do for political support for UW-Madison?

(3) Full NBP, Scenario B: However, should Bazzell's numbers be off-- if Foundation or the state doesn't perform as promised-- then there is nothing to stop the BOT from hiking tuition in a few years (especially if Chancellor Martin doesn't stick around). What are the chances that the state will continue to support UW-Madison at the same rate, rather than decrease its support? Over the past decade, state support per student at UVA has declined by one-third! At Virginia's other universities, who don't have UVA's deal but suffer from UVA's decisions, it's declined by 40 percent. Even if you believe the state will continue to kick in, the BOT will have a clear incentive to hike tuition to generate more and more revenue, rather than to demand productivity enhancements-- and given the ability of the Board to demand that, the state has little reason to put in more support---and thus the burden of this public higher education will shift further onto families. It's a vicious cycle.

(4) Partial NBP: Let's say UW-Madison administrators get only part of what they describe -- for example, public authority with a new governance structure and tuition flexibilities, but no flexibilities in any other area. I can easily imagine this happening once DOA does the math on the money it could be giving up by agreeing to flexibilities. In this case, the cut will be offset with a tuition hike of whatever size UW-Madison wants. Madison won't have any of the savings from flexibilities, and there won't be any System oversight to protect the rest of the state from skyrocketing tuition at the flagship. So, boom! The BOT can dramatically shift the burden of costs for public higher education onto families. And once it demonstrates that Madison can still fill seats even at those higher prices (with out-of-state students) it has no reason to lower tuition ever again, and the state has no reason to put in more money (even when it can).

Given these scenarios, if you believe that the Wisconsin families should not foot the majority of the bill for public higher education (beyond paying their taxes), then the only option currently on the table is to reject all forms of the NBP. The status quo is temporary-- once the NBP is off-the-table, a new campaign should begin to get all UW System institutions to identify more cost-effective ways to deliver high quality undergraduate education. In other words, to make opportunity affordable.

The NBP debate has divided people into camps, some perhaps quite unfamiliar to them. And yes they make for strange bedfellows.

So now, consider who of the three people above you agreed with-- and read who they are:

Person A: Richard Vedder, a notoriously conservative economist who once wrote that low-income students are wasting financial aid by partying too much.

Person B: Jane Wellman of the Delta Cost Project, one of the nation's leaders in efforts to improve how colleges and universities spend the money they do have-- to provide a quality higher education

Person C: Ron Ehrenberg, Cornell economist and highly respected scholar. As I understand it, our Chancellor thinks quite well of Ron. Go back and reread his cautions--and those of others. Do you think we are heeding them all?

Just the Facts on UW System (Part 1)

It seems that the advocates for the New Badger Partnership have a new strategy-- attack UW System Administration. That attack's been inherent in many comments over the past few months, but now the language is downright offensive.

What's most startling is the lack of knowledge these critics of System Administration seem to have about the organization itself. It's typically described as expensive and bloated--common critiques of all those opposed to centralized government.

So let's get educated about UW System, shall we? This is part 1 of a new series....

Fact #1: The total budget in 2010-2011 for all of UW System was about $5.6 billion. Of that, nearly half (48%) was allocated to UW Madison. Just 2.7% went to UW System Administration ($15 million).

Fact #2: In 2010-2011 40% of all state monies for UWSA went to UW-Madison, and just 8.3% ($9.8 M) went to System Administration.

Fact #3: While in Ohio Senators are expressing concern about real potential bloat-- $3 billion in unrestricted net assets (e.g. CASH) held by the Ohio system of public colleges and universities, here in Wisconsin, UW System only has about $500 million. This is not a bloated system.

So...let me get this straight. UW Madison with its $2.7 BILLION budget is attacking and fighting its way out of an Administration that has a total budget of just $15 million per year? What a super-human bureaucracy System Admin must be to be imposing such power over such a WEALTHY counterpart!

"I haven't done my homework, and that's why I support the Biddy Martin/Scott Walker New Badger Partnership"

THE FOLLOWING IS A GUEST POST SUBMITTED BY GRANT PETTY, PROFESSOR OF ATMOSPHERIC AND OCEANIC SCIENCES AT THE UNIVERSITY OF WISCONSIN-MADISON

I'm angry.

I'm angry with Biddy Martin for using her bully pulpit to short-circuit a serious, informed, and balanced discussion of the choices -- and hazards -- we face as an institution.

I'm angry with many of my fellow faculty for uncritically accepting a one-sided sales pitch that promotes a very specific, pre-determined outcome while failing to acknowledge the numerous profound risks and unknowns and failing to allow for consideration of possible alternative strategies.

Damnable myth: "The choice is between public authority and the status quo. If you oppose splitting UW-Madison from the UW System, then you oppose gaining the flexibility to deal with shrinking state support."

Fact: Supporters of the NBP keep trumpeting "flexibility" as the reason why we need to support the public authority, and they refuse to acknowledge that many of the most important flexibilities can be achieved without separating UW-Madison from the UW System. It is way past time for alternative pathways to flexibility to be given equal time in the discussion.

Indeed, Biddy Martin's original NBP proposal, as discussed extensively in the Fall of 2010, was all about flexibility but contained no mention whatsoever of the contentious issues of public authority or the separation of UW-Madison from the System. Moreover, there was little serious opposition to the NBP until these radical new ideas emerged in Governor Scott Walker's budget bill.

How short are people's memories?

With that point out of the way, I throw down the following challenges to those who aggressively promote the public authority as the silver bullet that will save UW-Madison from the worst effects of coming cuts in State support:

READ the recent post Of deals, devils and details: Budget reality check. Decide whether you can really live with a future in which the only realistic possibility for faculty/staff pay raises is via tuition increases. And if you disagree with the article's main conclusion, then do us all a favor by pointing out the fallacy. With facts, not wishful thinking.

READ the recent post This is what the public authority looks like and it isn’t pretty. Again, find the flaw in the math, if you can.

READ former UW-Madison administrator Harry Peterson's extensive remarks about public authority and flexibility. In particular, consider his simple six-step decision tree for supporting the public authority. Can you really answer "yes" to ALL SIX of the following statements?

1. You are not concerned that the competition for funding from the other UW institutions will result in smaller block grants for the UW-Madison.

2. You are not concerned about the burden this will place on private fund raising.

3. You are not concerned that statutory authority given to the new board, to increase tuition to any level will, over time, put the UW-Madison out of reach of many middle class and working class families in Wisconsin.

4. You are not concerned about the loss of our current Board of Regents, replaced by a brand new board with 3 year terms, the shortest terms in the United States, appointed directly by this and future governors without senate confirmation, unlike our present board.

5. You are not concerned that the decisions about funding allocations for the UW-Madison and the other universities will move from Van Hise Hall, with the Chancellors, Kevin Reilly and the Board of Regents, to the Capitol and the legislature.

6. You are not concerned about the possibility that the loss of the UW-Madison to the UW System will have a destabilizing effect on public higher education and result in a loss for our State and its citizens, especially its young people.

If you don't understand the background behind any of the above statements, then go back and READ Dr. Peterson's full remarks. Yes, they're long. Sorry. And no, here in Wisconsin we don't base irrevocable decisions about the future of our flagship public University on content-less sound bites about "flexibility." It makes me angry that so many visible figures in this fight are willing to do just that.

As a rank-and-file UW-Madison faculty member, I have been watching the "debate" for months and trying to understand the facts as well as I can. I admit it's a struggle. And given my outsider status, at least relative to those who frequent Bascom Hall, I readily accept that my own grasp of the facts is far from infallible.

But what I'm NOT willing to accept or excuse is that those promoting the NBP in its current form, including Chancellor Biddy Martin, stubbornly refuse to directly and factually respond to the very specific concerns that have been raised over months by quite a few very knowledgeable individuals.

These are individuals who, as far as I can tell, have far more extensive experience with University of Wisconsin affairs and University-State relations, and are far more dedicated to public education and to the Wisconsin Idea, than the vast majority of those trumpeting the loudest for splitting UW-Madison from the System.

Yes, I mean you, Wisconsin Alumni Association. I mean you, Badger Advocates. I mean you, Students for the NBP.
So here's my final challenge to these NBP advocates: If you're really not willing to take the trouble to familiarize yourself with, and factually respond to, the very real concerns of informed NBP opponents, then for God's sake please preface all future public comments on the subject with the following disclaimer:

"I really haven't done my homework, and that's why I enthusiastically endorse the Biddy Martin/Scott Walker New Badger Partnership."