Reform UW System, But Don't Render it Toothless

A busy first week of classes caused me to miss last week's UW System Board of Regents meeting, an event now known for its dramatic highlights and active Twitter feed. I was especially disappointed to miss it because it was the initial unveiling of the work UW System has done over the summer to re-orient itself given the recent legislative changes granting its member institutions more fiscal autonomy.

The main thrust of the documents shared at the meeting appears to be a desire to accomodate the wishes of (some of?) the UW chancellors for more decision-making authority and less oversight from the System office. There will be a downsizing of that office, and a corresponding restructuring.

I have heard a few folks suggesting that these moves look like the New Badger Partnership policy advanced by former chancellor Biddy Martin last spring. Reportedly, they think that those of us who felt the NBP was ill-advised, given its obvious leaning towards privatization, should also be upset about the System changes. Both of these arguments seem to hold little water. First and foremost because the System changes are the result of a transparent process during which time many discussions with relevant partners were held. That in no way resembles what transpired with the NBP. With regard to the System changes there is no evidence that any individuals seek to gain personally or politically from these reforms, or that they make any institution within System more vulnerable to the influence of private interests. These appear to be modifications to bureaucratic processes, rather than large-scale changes to governance structures. There is nothing here resembling the Board of Trustees proposed by Martin and her team, which would have installed a Governor Walker-dominated set of leaders overseeing UW-Madison instantaneously.

That doesn't mean, however, that I am free of concern. On the contrary, I worry that the moves at System belie an approach of appeasing institutional leaders whose natural tendencies are to have as much control as possible over their own campuses. The preservation of statewide interests in Wisconsin public higher education requires close coordination of the work on each campus, and that kind of work isn't fun. It isn't the kind of thing people volunteer to do. And so it must be led by a System whose employees are experienced and paid to do it.

I am also especially concerned with System President Kevin Reilly's statements about the future of national initiatives in System's work. While we can all point to national initiatives that have failed, there are also those that have succeeded--in getting institutional leaders to consider what their data have to say about their policies, at convening faculty and staff from across campuses and states to learn across new practices that could help Wisconsin, etc. Two of the most important aspects provided by national initiatives are vision and cover. Making common cause with colleges and universities across the state and country renews our sense of energy and purpose. And that common work can make it possible to collectively undertake efforts that individually are politically hard to do. It can be difficult, for example, for a chancellor to convince his campus they must talk about racial gaps in their college completion rates--it is often easier if instead campus leaders are invited to become part of a larger group engaged together in these conversations. Decades of organizational research indicates that the best ideas don't come from conversations occurring in silos but rather than those where we can learn from those who've tried and succeeded, and those who've tried and failed. So I hope that Reilly will continue to make System's participation in these national initiatives a priority, and keep the talented teams in place who currently lead them.

Those of us working diligently to preserve Wisconsin public higher education need to support System's right to influence the work of its campuses. Van Hise should not be diminished into a central party-planning office, or one whose workers can do little more than rubber-stamp the offerings of campus leaders. Certainly there should be more give-and-take with talented local leaders like UW Colleges Ray Cross, and Reilly should embark on a statewide tour to interact with faculty, staff, and students at all colleges and universities so as to get in touch with their needs. They all need to get a better sense of him and System writ large, lest during the next go-around they continue to believe the fallacious tales they are told. The position of System president must remain one of power and influence. A significantly weakened System makes all of Wisconsin public higher education vulnerable to further loss of legislative support. That's the last thing Wisconsin's economy and its working families need.

Are you Ready for Some "Football"?

If there's one thing Wisconsin seems to agree on, it's the Badgers. Even if you never attended or even cared to attend UW-Madison, you're most likely a fan. Why? Honestly, I won't pretend to know--college football's never been my thing. But I do think it's cool that people throughout the state seem to feel they have a little bit of Madison they're connected to. Football-- Bucky-- makes that happen. As my late colleague and friend Doug Toma wrote in Football U, "football humanizes seemingly impersonal large universities for external audiences."

But a few recent incidents regarding UW football seem to have affected UW Madison's activities and image in ways that deserve some scrutiny.

First, last Thursday afternoon (on the eve of the first day of classes), Madison faculty and staff were urged to abandon their offices early and clear out of campus so that the crowds could take over for the season opener against UNLV. Many campus administrative offices shut down at 1 pm. People who paid sizable fees for annual parking (e.g. $1000 per year) were told they needed to leave so their spots could be sold to others for the night. Basically, we threw all real business (class prep?) aside for a beer and circus show. For more, check out this spot-on post over at Sifting and Winnowing.

The message was clear: Football comes first. Get out of the way.

Second, 6 weeks after her much-discussed departure from campus, we've come to learn that Biddy Martin has left some goodbye presents. One is the apparent revelation that she unilaterally decided that UW-Madison would vote against AAU membership for Nebraska. Reports the Lincoln newspaper: "After endorsing the University of Nebraska-Lincoln's entrance into the Big Ten Conference -- in part because of its academic strength -- leaders at the universities of Wisconsin and Michigan apparently helped oust UNL from an elite academic group."

UW Madison is famous for its shared governance of all issues, big and small. According to actions and rhetoric around campus (including last Thursday's events) football is a BIG darn deal. So why does it seem that Biddy went it alone on making such an important decision?

Honestly, I don't know. But I'd really like to hear some campus discussion of it. I'm concerned that it serves to perpetuate our elitist image, an appearance Biddy did much to reinforce. Football may have been yet another tool in her arsenal of weapons intended to barricade Madison from the public--using it in this way manages to undo its powerful ability to bring Madison to the people. I'm especially concerned that efforts by journalists to understand what's happened here have been rebuffed-- the Journal Star says that its open records requests were declined by UW. And most of all, I hope that those of us who benefit from shared governance act now to find out why we--the faculty, staff, and students--were bypassed on this one. Who knew what, and when? This institution isn't supposed to act on issues that seemingly matter most of all ... like FOOTBALL... without us.

Executive Compensation at UW Madison

Last week UW Madison employees got the details on their pending benefits cuts, which will take a substantial hack at their earnings during the coming years.

At the same time, we also got word that at least two folks at UW Madison wouldn't be feeling the pain--quite the contrary actually. Barry Alvarez has a new deal amounting to $1 million in total compensation (a 20% raise), and Francois Ortalo-Magne was named dean of the biz school with a salary of $410,000. While former dean Mike Knetter's salary was completely paid for by the Albert O. Nicholas endowment, apparently some of the new dean's salary (how much? we aren't told) is covered by UW Madison central administration. This apparently amounts to a 109% increase in 43-year-old Ortalo-Magne's salary. Outgoing chancellor Biddy Martin approved both deals as she left UW Madison.

According to the posted agenda for the upcoming UW System Regents meeting, these two aren't alone...
"Move into closed session to consider personal histories related to the naming of a facility at UW-Madison, as permitted by s. 19.85(1)(f), Wis. Stats.; to consider a compensation adjustment for the UW-Madison athletic director, as permitted by s. 19.85(1)(c), Wis. Stats.; to consider a compensation adjustment for the UW-Madison men’s basketball head coach, as permitted by s. 19.85(1)(c), Wis. Stats.; to consider a compensation adjustment for the UW-Madison women’s hockey head coach, as permitted by s. 19.85(1)(c), Wis. Stats.; to consider salary approval for an interim chancellor for UW-Madison, as permitted by s. 19.85(1)(c), Wis. Stats; to confer with legal counsel regarding pending or potential litigation, as permitted by s. 19.85(1)(g), Wis. Stats.; and to consider annual personnel evaluations, as permitted by Wis. Stats. §19.85(1)(c)."

Raises for not one but three athletics folks, eh? Don't forget, Bret Bielema's salary was increased 47% and Paul Chryst's was jacked 33% back in February while most of us were freezing our butts off protesting at the Capital. And of course tuition is going up yet again-- passing the costs for these luxuries onto all students and their families (hey, do they get a vote?). You can claim "private donors funded this" but (a) it's not entirely true (some comes from Administration) and (b) if donors didn't have to pay for this stuff, don't you think they might CONSIDER funding our educational mission? In other words, a dollar is a dollar-- and a dollar spent here is a dollar that could've been spent there.

I guess the UW Madison administration isn't acquainted with the phrase "shared sacrifice."

Things That Make You Go Hmmmm...

Twitter is such an amazing resource. For those following Chancellor Biddy Martin's departure from the University, I thought you might enjoy some of these recent tweets about her statements at Amherst today.

Marx: "Welcome to Amherst, @Biddy_Martin." Another standing ovation.less than a minute ago via web Favorite Retweet ReplyAmherstCollege
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Martin: "I just feel the urge to get here and find out who all of you are."less than a minute ago via web Favorite Retweet ReplyAmherstCollege
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Martin: "I think people exaggerate the difference between private and public institutions, and even small and large institutions."less than a minute ago via web Favorite Retweet ReplyAmherstCollege
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Martin: "I need first to learn from the faculty ... staff ... students" about college's challenges and aspirations.less than a minute ago via web Favorite Retweet ReplyAmherstCollege
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Martin: "Every part of the community is critical to the success of the community."less than a minute ago via web Favorite Retweet ReplyAmherstCollege
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Martin: "Things can always be made better, no matter how great they are. ... But we'll want to do that together."less than a minute ago via web Favorite Retweet ReplyAmherstCollege
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Martin: "You can count on me always to want to discuss things."less than a minute ago via web Favorite Retweet ReplyAmherstCollege
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Turn, Turn, Turn

I've been asked by some readers for my thoughts on the resignation of Chancellor Biddy Martin, and her pending move to Amherst College.

My general sense is this: Martin's making the move that is right for her. There is a place and time for everything, and she must've had a sense that her time here might not last much longer when she entered the search at Amherst last fall. She had more knowledge of the full dynamics at play in these Wisconsin debates than anyone, since she was allowed into more conversations with more players. She was looking ahead.

The job at Amherst is an enviable one. The past-president, Tony Marx, is one of the most thoughtful leaders of higher education in the nation. His efforts at value-driven decision-making have challenged traditions--traditions that favor institutional interests over student and state interests. I am especially impressed by his efforts to promote socioeconomic diversity by not only offering enormous amounts of financial aid but also practicing class-based affirmative action. Many institutions do only the former but not the latter since it's the latter that makes the distribution of aid much more expensive. He used the advantages that come with being at an elite private institution to challenge the privileges the elites try to keep for themselves. Those are big shoes to fill.

Looking to the future I fervently hope that the search for a new UW-Madison chancellor will identify someone who thinks about both the institutional and student interests (and by students I mean all potential students not only those currently or previously enrolled) as well as the state's interests, and how those often conflict. I hope we will be led by someone who understands and is fully committed to the unique values, qualities, and challenges facing public higher education-- and who embraces its difficulties as opportunities, rather than resenting them. Public institutions should be recognized for the uncommon goods that they are, rather than treated like a dying breed that cannot be saved.

On Wisconsin!

Biddy Martin's Next Bold Vision

Chancellor Biddy Martin of the University of Wisconsin-Madison enjoys making bold moves. Here are some thoughts on what those next moves could be.

Since his election, Scott Walker has successfully divided the constituencies supporting public education across Wisconsin. Advocates for poor children who see charter schools as the best option are attacking public school teachers who struggle to feed their families while being painted as living lifestyles of the welfare "queens." Proponents of publicly-supported research universities are attempting to preserve the rights of UW-Madison by denigrating the work of other UW institutions. By distracting supporters of public higher education with a divisive "public authority" model for UW-Madison, Walker convinced most administrators, faculty, staff, and students at that school to fight against their brethren, rather than against his $250 million cut.

Regardless of her intentions, Chancellor Martin participated in Walker's charade. Great ugliness has resulted, and I think she's well-aware of that. For example, last week, even as the media declared the death of public authority, the Badger Advocates issued a press release that castigated UW System President Kevin Reilly and humiliated everyone not at UW-Madison. While the Badger Advocates consistently claim to represent the Chancellor--above and beyond the institution-- even she couldn't take it anymore, attempting to distance herself from their work.

That was a good start. Much more is needed. The past several months have illuminated some extremely elitist, ugly attitudes among Madison's employees, students, and alumni. To be clear, I am not attacking students here-- indeed, I feel we are collectively responsible for their actions. I am extremely concerned, however, by Martin's expressions of uniform support for alumni involvement in Madison when alumni express opinions like this one, written by Frank Rojas (UW, '74) in the comments of a national higher education online newspaper:

"Madison gets more outside research funding in one day than than Oshkosh gets in a year. It raises more donations in a day than Oshkosh does in a year. Madison would be happy to see the other schools grow and improve as it would take away some of the heat it now gets over admissions/rejections of instate kids. But to date none has shown much ability or vision in that area. There is no College of New Jersey or William and Mary equivalent in Wisconsin. Madison endorses similar freedoms from state regs for the other campuses. But it does not want to be held back by the limits of the lowest common denominator thinking either."

Frank has written to me and about me since this debate began, accusing me of "hateful" behavior towards UW-Madison. Nothing could be further from the truth. I have worked tirelessly to preserve the best of UW-Madison -- its unselfish leadership and opportunities it provides all of Wisconsin. I have worked to defend UW-Madison from global forces that aim to corrupt it-- a market-driven vision that is antithetical to its populist roots, a neoliberal approach that prioritizes pragmatism over values, a narrow definition of excellence that excludes others' accomplishments. I honor UW-Madison, the institution. That is why I fight efforts to distance it from the rest of UW System -- a move that would transform it from something unique and wonderful, to something common and truly mediocre.

Biddy's bold step should be to ensure that all of UW-Madison understands her lesson learned from the past six months: divided we fall. She should work to instill a sense of collective efficacy, and teach her employees and staff to empathize with the struggles facing all of Wisconsin. She should endeavor to educate UW alumni about the institution's values, lest they be away far too long and simply forget.

I know Biddy can do this. I recently watched a wonderful video of her during days at Cornell, where she spoke of rejecting the corrupting influence of college rankings that create a "winner-take-all" society, and focused on "questions of value" for the future of higher education. She talked of the "threats to meritocracy" that stem from "public resistance to paying the taxes it would require to keep pace with the costs of higher education and research." That is the Biddy Martin we needed to fight Scott Walker's cuts.

That Biddy Martin also talked about something crucial when she said, "I think that there is a kind of lack of attention to interiority generally, by which I mean the relationship we have to ourselves, and I believe that education is letting us all down when it comes to that. I am not talking about interiority in the form of naval-gazing or individualism in the sense of some sort of asocial obsession, but I am talking about the value of awareness and individuality, the development of individuality and the development of the ability to integrate, what we take in and what we establish as our own. I think we owe it to our students to model those things. They require engaging with the world and with other people, but they also require that each of us engage with the person that we are in the process of becoming, and that we give our students the tools to engage with themselves as the people that they are becoming to. It is a combination then of wired connectivity and super-fast pace on the one hand, which our students require of us and we require of ourselves, but also the ability to take space and time in the midst of the gold rush for contemplation and reflection."

The Biddy Martin of that video is capable of repairing the immense damage inflicted by the push for public authority. She is capable of standing up to alumni who wish to promote a UW-Madison that views the UW-Oshkoshes of the world as part of the "lowest common denominator." She is capable of reaching the hearts and minds of students who mistakenly believe they are at UW-Madison because they deserve it more than other people in the state.

That's the Biddy Martin I look forward to meeting this fall.

The Saddest Tweet of Them All

Updated May 30, 2011--and again June 1

I've been watching as UW Madison moves into the post-NBP phase of life (wait, there is life after NBP?). In particularly, I'm finding the (re)framing of recent events by NBP proponents both fascinating, and disturbing.

Spin is, to some degree, expected. We can't blame Chancellor Martin for trying to save face, or Governor Walker for that matter.

What I didn't expect, and what upsets me most, is the self-righteousness evident in those who proclaim "we accomplished something here." Something, they claim, UW System did not. Could not. Would not.

Sad and short-sighted, perhaps, but not surprising. On the other hand, a recent tweet from a Madison student stopped me in my tracks. On Saturday he wrote, "No #UWNBP. Disappointing. Looks like we have to be tied to the poor decisions #UWSystem makes." Surprised at his statement, I responded, "Ever been to System? Ever met anyone there? Why do you follow blindly what u r told? #UWNBP #UWSystem." To which he replied "It's fun to make assumptions."

Well, that's sorta what I figured-- the majority of people claiming failure on the part of UW System and lauding the achievements of Chancellor Martin have never interacted with System. It's not that System is perfect -- far from it. But by degrading the capabilities of the governing body of our sister institutions, one casts dispersions on the quality of education received by other students. It's incredibly unproductive. It's also unfair. Of course, maybe people just don't care. I worried about that, so I wrote: "Fun, but destructive to students at other universities."

A moment later, I got a reply: "It isn't my job to be concerned with students at other universities." And a few minutes after that, he added: "It was my job to maximize my education and the value of this university, if that benefits other universities too, great!"

It was like a punch in the gut, as I suddenly realized that the whole UWNBP situation is but a microcosm of the broader threat to public education.

Too many of our fellow Americans are downright compassionless.

As David Berliner wrote in The Manufactured Crisis, "true improvements in public education will not come about unless they are based on compassion...If we structure our public school system so that large groups of students are not provided equitable education, we create a host of problems....In Lincoln's words, it has always been clear that effective reform of education must begin 'with charity for all.'"

None other than David Brooks makes a similar statement in today's New York Times, where he loudly admonishes college graduates "It's not about you." The big mistake society has made is giving undergraduates the impression the goal in life is to find themselves. Not hardly. The goal is to "lose yourself", Brooks explain, by "look[ing] outside and find[ing] a problem, which summons [your] life."

I guess we can't really blame the students. After all, they are simply following the example set by people like the alumni backing The Badger Advocates. Given that I've already publicly called them "goons" I suppose it's worth the risk to go one step further and say straight up that their latest press release reveals them as plain ol' liars. Yes, I said that. They are lying. Take a look. According to their revised version of reality, Chancellor Martin spent the last year attempting to "educate" the state about the need for the New Badger Partnership (if by educate you mean tell people the version of the facts you prefer, alrighty then), working "closely and diligently" with the Legislature while UW System "fought the proposal," worked "hastily," opposed "real reform," and basically did whatever was possible to undermine the thoughtful, hard work of Martin. "And although Martin worked tirelessly on the NBP, at the end of the year-long tour, she is respectful and considerate of the Joint Finance Committee and the Legislature’s desire to draft their own plan for UW-Madison and the system." There are no words for the extent to which this is a lie, other than COME ON! (I'm not alone in saying this.) The only truth in the whole darned thing is that Martin was on a "year-long tour."

We have been sold a bill of goods-- one that paints UW Madison into a corner as an elitist, know-it-all flagship that bears no resemblance to the rest of the state. We at UW Madison should be furious that anyone--anyone--is spending money "on our behalf" to support the kinds of work The Badger Advocates are doing. That they are doing it at the behest of our leader is even more appalling. At this point, they are more than undermining our credibility with the Legislature, in fact they threaten to further smear the good name of Madison in the hearts and minds of the rest of Wisconsin. Not only have they -- and she-- not given up on Public Authority, they are pushing harder.

This state faces massive inequities in the provision of both k-12 and higher education. If we at UW-Madison cannot teach our undergraduates compassion for their fellow undergraduates-- at all public institutions throughout the state-- then we are doomed to a competitive race to the bottom. If the only route they can see to helping others is by helping themselves, we have not done our jobs.

That was the lesson I got from Twitter that day. We have failed to educate. We must do more.

The Truth About the Proposed NBP: LFB Weighs In

The New Badger Partnership is -- reportedly-- dead. In the meantime, the Legislative Fiscal Bureau has just released its analysis of what Public Authority would look like if the NBP were passed. The report is quite interesting, and in particular I think the following points are worth highlighting:

(1) Despite the Chancellor's claims that what she wanted was "part of a national trend" the governance structure Madison asked for was quite unusual, when considering arrangements in other states.

"Attachment 1 provides an overview of the governance structures of institutions that are similar to UW-Madison in terms of size and federal research and development funding. These institutions are all public or "state-related" institutions with large student populations, high six-year graduation rates, and federal research and development expenditures above $400 million in 2008-09. As shown in the Attachment, these institutions have a variety different governance structures. Of the institutions shown, the University of Michigan, the University of Washington, and the University of Pittsburgh have governance structures most similar to that proposed for UW-Madison under the bill. Each of these institutions is governed by a board that oversees that institution and a limited number of smaller regional institutions. However, in Michigan and Washington, most other public four-year institutions similarly have their own governing board. In Pennsylvania, there are separate governing boards for Pennsylvania State University, the Pennsylvania State System of Higher Education, Temple University, and Lincoln University. None of the states shown have one governing board for the flagship institution and one governing board for all other public higher education institutions as Wisconsin would under the bill."

(2) Madison's claims that it has suffered disproportionate losses over time in the race for funding and that it especially needs these flexibilities-- or at least, it should get them NOW before other schools-- seems quite off considering these facts:

"When adjusted for inflation, state funding provided for UW-Madison and for all other UW System institutions decreased from 1990-91 to 2010-11. Over that period of time, state funding for UW-Madison decreased by 2.8% while state funding for all other UW System institutions decreased by 6.8%. At the same time, enrollment at UW-Madison increased by 1.5% while enrollments at all other UW System institutions increased by 23.4%. When these increases in enrollment are controlled for, state funding for UW-Madison decreased by 4.2% while state funding for all other UW System institutions decreased by 24.4%. Given that state funding for UW System institutions other than UW-Madison have decreased by a greater amount than state funding for UW-Madison over the past twenty years, it is unclear whether UW-Madison or the other UW System institution would benefit most in terms of state funding if UW-Madison were no longer part of the UW System."

"Salaries at UW-Milwaukee and the comprehensives are significantly farther behind their peers than salaries at UW-Madison are. For this reason, the Committee may want to extend any compensation flexibilities that may be provided to UW-Madison to all UW institutions."

(3) Madison's claims about the monetary savings from NBP appear to be over-stated.

"..As an authority, UW-Madison would not be required to deposit most of its program revenues or any of its federal revenues in the state treasury. The UW-Madison Chancellor has asserted that keeping these accounts separate from other state moneys would protect these funds from being transferred to support other state programs as has occurred in the past. In the Wisconsin Idea Partnership, the UW System Board of Regents similarly proposes that most of its program revenues and all of its federal revenues similarly be kept outside of the state treasury. The UWMadison Chancellor contends that the UW System, which would remain a state agency, would not be able to deposit these revenues outside of the state treasury leaving them susceptible to transfers. However, the cash management policies proposed for the UW-Madison authority may not fully protect these funds from future transfers, either. Regardless of where UW-Madison authority funds are deposited, it appears that as a matter of law, the Legislature could compel UW-Madison, as an authority created by state statute, to transfer funds to the state at any time."

(4) There was significant potential for tuition to skyrocket in order to increase faculty salaries.

"Under current practice, many UW faculty and academic staff positions are funded through a combination of state GPR and tuition. Compensation plans approved by the Joint Committee on Employment Relations (JCOER) therefore include a GPR portion and a tuition portion. If the UW Board of Regents or the proposed UW-Madison authority Board of Trustees were provided both unlimited tuition authority and the ability to approve pay plans for faculty, academic staff, and senior executives, the Legislature would not be able to limit the amount by which resident undergraduate tuition would be increased to fund those pay plans."

(5) Tying tuition increases to accountability for increasing financial aid was an option-- but not one Madison proposed.

"A third option could be to grant the Board of Trustees and the Board of Regents full authority to set tuition rates but to require them to report to the Legislature on certain specified measures such as the number of low-income students enrolled, retention and graduation rates for low-income students, and the amount of need-based financial aid provided through federal, state, and institutional programs. The Legislature could set goals for the UW-Madison authority or the UW System and could penalize the institution or institutions, either by reducing GPR funding or limiting tuition authority, if sufficient progress towards those goals is not met."

Good thing this bad idea has been recognized for what it truly was. A mess.

A Provocative New Report on Higher Education

I know we in Wisconsin are sick and tired of hearing about Virginia....but please bear with me, because a new report out of UVA will likely resonate-- especially with my UW-Madison readers.

A new Lumina Foundation-funded report from the Miller Center and the Association of Governing Boards of Colleges and Universities, based on a December 2010 meeting about "how to maximize higher education’s contributions to the American economy" makes the following provocative statement:

The past few decades have seen far too many colleges and universities engage in a rush toward elite status. The more selective an institution is, the better. The more research money it collects, the better. The higher it ranks in national and international publications, the better. But what has the race for status contributed to the public good? It is possible to build state institutions that are noted in U.S. News & World Report and national rankings of research universities but ignore the needs of many or most of a state’s people.

Among the report's recommendations:

(1) Rethink the purpose and functions of governing boards (e.g. like our Board of Regents). Give them new leadership roles, including setting clear goals for their member institutions and creating funding mechanisms linked to these goals. "The state governing and coordinating boards are still needed, both for their leadership and for the “buffer” role that they play between higher education institutions and state governments...In addition to measuring and paying for performance, state boards should encourage institutional redesign, curriculum revision, and the introduction of educational programs.. that meet the needs of new kinds of students...State boards should promote review of the missions of institutions,and create conditions in which it is in their own best interests to focus on the public mission of higher education...Reconsidering the missions of colleges and universities requires participation by faculty, institutional management, institutional governing bodies, and those who are responsible for the statewide coherence of higher education. It also requires consultation with the executive and legislative branches of government, with employers, localities, and the business community in general."

(2) Assign greater percentages of [institutional] operating budgets to instruction in order to achieve higher rates of degree completion. "The percentage of increases in student tuition over the past several years is far greater than the increases in expenditures on instruction. Where is the money going? What expenditures can be reduced or eliminated?...Many institutions have grown used to spending their money on things that may not reflect the needs of the states or regions that they are supposed to serve."

(3) Increase faculty teaching responsibilities. "Reduce the number of non-permanent and adjunct faculty -- this almost certainly will require that many regular, full-time faculty members teach more courses and be relieved of other duties for which they have volunteeredor to which they have been assigned."

(4) Restrict research efforts to a limited number of institutions. "..Say clearly that the “research” obligation of the great majority of faculty members is simply to remain current in their fields. Relatively few of them are going to make historic contributions to human knowledge."

(5) Adopt tighter, more focused curricula with key learning objectives."..The “electives” that have proliferated in the past half-century often are far less cost-effective, in part because enrollment in them is voluntary and usually smaller, and not required for particular programs of study. A core curriculum of required courses may seem less attractive than a wide array of choices, but it also may be less costly and more focused on key learning objectives. It is also likely to lead to higher levels of program completion."

(6) "Institutions should be required to assess what students learn and to measure and report their progress in clear and unambiguous terms."

Now, I don't agree with every idea in here-- but I do think this is a very useful report for framing a discussion about the future of Wisconsin public higher education, and I urge you to review it in full.

What Wisconsin Needs Now: Collective Efficacy

When citizens seek to solve social problems, they are much more effective if they work together rather than alone. This basic, sensible idea is also known as "collective efficacy." And it is what must be inculcated in Wisconsin residents if we are to preserve our world-class public higher education systems.

Our willingness to act, when needed, for one another's benefit, generates long-lasting effects. Unfortunately, there is a strong impulse to turn inward when threatened, to focus on self-preservation rather than community preservation.

Solutions for issues like the fiscal challenges facing the University of Wisconsin System will not emerge if we follow leaders with imperious styles who seek to "win" no matter what the cost. Regardless of the specific policy agenda, the process of policy formation is essential since it dictates the terms of the debate.

This may sound exceedingly feel-good, but it is also deeply pragmatic. The savings that will accrue to individual campuses from any "flexibilities" are small (numbers provided to me by Darrell Bazzell are in the $10-20 million range for Madison) but collectively (if granted to all campuses) fairly large. The same is true for proposed efficiencies such as adjustments in faculty/student ratio. If, as a community, UW System examined that key cost driver across departments and divisions throughout all institutions, it could reasonably begin to make assessments about resource distribution. I suspect that some departments at UW-Madison would actually see that ratio decreased as a result, perhaps because of resources saved at another campus-- and vice versa.

The climate at UW Madison has eroded dramatically over the course of several recent policy debates such as the Madison Initiative for Undergraduates, the Graduate School Restructuring, the Huron Engagement, and now the New Badger Partnership. Faculty, staff, and students are fearful of repercussions from both the success and/or the failure of the NBP. Rumors of the imminent departure of our friends and colleagues fly around daily. Motivation and productivity are down.

The way forward lies in refocusing on what has always made Madison -- and System -- great. That is: our commitment to a community that prioritizes fearless sifting and winnowing and shared decision-making to a degree uncommon in other institutions of higher education. That's the community and commitment that put us on the map. We have been through hard financial times before, and inevitably will go through them again. Stick to what we do best, and what we can do best no matter how many dollars we have at the moment, and we will shine.

It's All About the Faculty: Update

On April 25 I blogged about the claim made by some NBP proponents that the policy change was needed in order to stem the tide of faculty turnover at UW-Madison. In that post I referred to some data from a 1999 report, which at the time was all I could locate on the web.

I have now had the opportunity to examine more recent data (UW-Madison faculty have access to it at the APA website) and here are some updates:

(1) In the prior post, I claimed that there hadn't been much change over time in turnover rates at Madison. As I said, I was looking at data up til 1999 and it showed a rate of about 5 or 6% (based on number of leavers divided by total number of faculty). The more recent data shows even lower turnover rates since that time-- no doubt due in large part to the efforts of UW Administration and the fact that the 2005-07, 2007-09 and 2009-11 biennial budgets provided High Demand Faculty Retention Funds (HDFRF) to address recruitment and retention issues. In the graph below, the blue and red lines show the number of faculty (blue is headcount and red is FTE) and green and purple show the turnover rate calculated two ways (green by dividing # leavers by headcount, and purple dividing #leavers by FTE). As you can see, there's no evidence that our turnover is climbing.

(2) The percent of our faculty receiving outside offers declined during the 1980s and 1990s (from a high of 7.7% in 1983 to a low of 2.4% in 1999) and then grew again during the 21st century to a high of 8.1% in 2009. However, after a steady decline in the 1990s, our success at retaining faculty who receive offers has increased from 60% in 2001 to 84% in 2008 and 80% in 2009.

(3) Probably due to the state support in this area, the percent of payroll devoted to these retention offers declined from up to 10% in the 1980s to barely 1% in 2009.

It certainly seems that those funds from the state helped stave off an uptick in faculty turnover rates. What isn't clear is that the NBP--and the Public Authority model in particular-- is necessary in order to continue to use funds in this manner. In 2009-2010 we spent less than $1.5 million on this effort.

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?
********

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."

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."

UW-Madison's Average Family Income is $90,000?

Based on the tweets from today's student conversation with Chancellor Martin, there's a big myth running around campus:

No, the average family income of UW-Madison students isn't $90,000.

That number came from reports like these that were discontinued back in 2008. Why were they discontinued? Because the data they are based on is a train wreck. The information comes from students' self-reporting of their parents' income when they were in high school (reporting is done on the ACT questionnaire) and according to UW-Madison's office of academic planning and analysis 30% of UW-Madison students left the question blank (and that percent has been rising over time).

Is it a high estimate? A low one? Well, what we know is that a study done by two La Follette professors using Census blocks to estimate income (better than student self-report most likely) finds that family income at UW-Madison for Wisconsin residents isn't very out-of-whack with Wisconsin family incomes as a whole. For example, families of Wisconsin applicants to Madison have incomes that are 1.2 to 1.3% higher than the state average.

Why don't we have a really accurate measure of family income? Because UW-Madison doesn't ask students to report their family income on their application (for obvious reasons) nor does it require them to complete a financial aid application (otherwise known as a FAFSA). So we only know family income--according to parents--for those who apply for aid. And less than 50% of UW-Madison students apply. That doesn't mean less than 50% are needy; many needy kids don't apply every year because the application is insanely onerous and difficult to complete correctly. In fact, upper-income folks are more likely to complete it, and to do it correctly, because they're hoping to get a loan.

If we really want to promote affordability at UW-Madison we should make FAFSA completion an "opt out" rather than "opt in." This is the kind of nudge behavioral economists love, since it makes the default option less painful (people tend to resort to inaction over action).

Why aren't we doing it now? This did, after all, come up during debates over the Madison Initiative for Undergraduates and I made the proposal directly to Chancellor Martin over lunch in spring 2009.

I can think of a few possible reasons, see which one you think fits:

(1) We are worried about privacy. But remember, you can opt out.

(2) We are worried about deterring students who don't want to complete the form. But remember, we'd only require it after you applied and were accepted, and were able to enroll. Even then, you could opt out.

(3) We are worried about undocumented students. But remember, you can opt out.

(4) We are worried about the increased paperwork and staff time. But think about all of the financial aid $ our students would get at no cost to us (e.g. federal $)

(5) We are worried about our institutional aid costs. The more you identify as needy, the more you have to "hold harmless."

I'm willing to bet that requiring all entrants to complete the FAFSA or opt out would increase the percent receiving Pell by a fair bit, and increase retention rates by getting more students the financial aid they deserve. And once we have more accurate family income information for more than 90% of our population, we'll likely find out that right now our average Wisconsin family income is much lower than $90,000. Under NBP, I'm willing to bet that will change drastically because of (a) an increased perception of elitism, (b) disjuncture from the System, (c) sticker shock, and (d) insufficient discounting over time.

But of course, who am I to make such judgments? We are told, after all, we have nothing to worry about.

Response to Students for NBP

I applaud Jon Alfuth of the Students for the New Badger Partnership for attempting to do something the UW-Madison Administration has not bothered to do -- share some models of affordability under the NBP.

Jon asked me for my critique, so here are some big picture questions to ponder while I try and secure the numbers required for an alternative model (don't hold your breath, this requires figures beyond what Jon seems to have here and I don't see a UW source willing to provide them):

(1) Why assume that tuition will increase at the same rate for resident and non-resident students? That seems very unlikely-- typically rates for nonresidents increase at twice the rate for residents (Don Hossler, 2005, "Students and Families as Revenue, p. 116).

(2) Why assume the % of non-residents remains the same? Assuming the differential in tuition grows, this will likely tip the proportion of residents downwards, since the BOT will begin to find nonresidents even more attractive. Doubt this? Job descriptions for enrollment managers at public research universities have included a preference for candidates with successful strategies to attract out-of-state students (Hossler, p. 117).

(3) A discount rate is the average institutional grant divided by average tuition and fees-- for example, a 15% discount rate would mean that for every $1,000 increase in tuition and fees UW-Madison would award a $150 institutional grant. What is the assumed discount rate for in-state and out-of-state students? At private institutions it's around 40 percent. At publics it is on average 14%. First, what is it right now at UW-Madison? We need to know. We must know to do this modeling appropriately. If we intend to raise tuition and compete with privare institutions, the discount rate will have to climb-- and thus much of that additional projected revenue won't be realized as gains at all. (Don't believe me? AASCU writes, "part of the reason why institutions are able to keep their discount rates low is due to the fact that they are able to keep their tuition rates relatively low, making the overall cost of attendance relatively low.")

(4) Discounting cannibalizes revenue. What are your calculations as to the likelihood that under a new model UW will be able to afford to devote 30+ % of new tuition revenue to aid?

(5) What is the assumed discount rate for in-state versus out-of-state students? National data indicate that non-residents are 1.7 times more likely to get a discount and that discount costs a lot. "For example, a one-percent increase to the non-resident tuition discount rate would cost an institution $100.13, while an equivalent percentage increase for resident students would only cost $35.80." Is the UW-Madison community comfortable with giving more of our institutional aid as a discount to non-Wisconsin folks?

(6) What is the assumed discount rate for low-income versus high-income students? Biddy has made a big deal about how much she has grown need-based aid under MIU, but the fact remains that UW-Madison spends much more on merit-based aid than on need-based aid. Nationally, institutions have increased the proportion of institutional aid devoted to merit-based aid faster over time. Moreover, national data indicate that while low-income students are more likely to get a discount, theirs is typically smaller than those given to high-income students. In a recent study of public universities, "students whose families earn between $70,000 and $100,000 receive an average discount of 15.1 percent, while the lowest income students only receive a 14.7 percent discount rate."

(7) Why assume the BOT and Chancellor of today keep their promises (well actually we don't even know who the BOT is) for tomorrow, the day after and the day after? What grounds do you have to disagree with all of the scholarly proponents of this approach to financing, who clearly state that the link between aid and tuition should be legislated, not left up to faith?

(8) We already use differential tuition to finance aid. Can you explain why continuing to do that during the near future wouldn't be as effective as NBP?


Big picture: Jon and I shouldn't have to do this modeling ourselves. If UW Madison wants to argue for tuition flexibility it should have produce these kinds of figures a long time ago and made them publicly available.

More to come...