The colleges and universities that educate our state's citizens also serve as a magnet for business and innovation, provide tens of thousands of jobs, attract more than $1 billion in federal research funds annually and enhance Colorado's quality of life.
Given its many contributions to Colorado, you would think higher education would be high on the state's priority list. For some, it is. The business community understands and supports the value of colleges and universities. So do lawmakers. So do our alumni and current students and their parents. Yet many do not see the storm clouds on the horizon.
In Ernest Hemingway's novel "The Sun Also Rises," a character is asked to describe how he went bankrupt. "Gradually, then suddenly," he replies. Several funding and competitive trends in higher education are gradually converging, trends we must pay attention to and address so we don't suddenly find ourselves bankrupt in the crucial endeavor of higher education.
In the early 1970s, higher education's portion of the state budget was about 27 percent. Now, it is just below 10 percent. Colorado ranks 48th in state funding for higher education, according to the State Higher Education Executive Officers' State Higher Education Finance Study. In comparison, the state's funding for K-12 education is 99 percent of the national average and compensation for our classified state employees ranks 10th among the 50 states.
Why the difference? Our state Constitution mandates salary increases for classified employees and Amendment 23 mandates annual funding increases for K-12. Federal courts mandate some of the conditions for our prisons and the federal government will not fund its share of Medicaid without a state match. When budget squeezes come, higher education is one of the few areas where funding is not mandated by the state Constitution or required by the federal government.
Perhaps of greater concern is that when the next rescission comes, higher education will be the one of the few places where lawmakers can make reductions to the state budget. Colleges and universities could see a reduction of 40-50 percent in state funding. In the last recession, cuts in higher education funding forced tuition increases and administrative cuts. Considerably less flexibility remains in the system. Administrative costs at the University of Colorado are only 40-55 percent of comparable institutions nationwide.
Three alternatives present themselves. We can continue as we have been and gradually eliminate state funding for higher education. While this will harm our economy and make it more difficult for low-income students to receive an education, most of our colleges and universities will charge more in tuition and survive.
Second, we could amend the Colorado Constitution and allow our elected legislators to allocate funds to the highest priorities rather than mandate spending through Constitutional directives. Higher education would fare much better with this approach, but amending the Constitution is unlikely.
Third, higher education could propose its own Constitutionally mandated funding, just as others have done. It may pass if the public sees it as essential to preserving higher education. My preference is the second alternative, but it is the least likely to come about.
About Hank Brown
Hank Brown was named the 21st President of the University of Colorado in June 2005. As he enters his third year at the university, enrollment has rebounded to an all-time record, donations to the university have broken all-time records, the university received the largest increase in state funding in its 131-year history, freshmen students of color increased by 18 percent, marking one of the most significant increases in university history, the President’s personal staff was reduced by 10, federally funded research increased to $637 million, nearly $50 million more than when President Brown came on board, and the university’s governance process has been reformed.
Before CU, Brown joined the Daniels Fund as President and CEO on July 1, 2002. The Daniels Fund is a billion dollar foundation left by the late cable entrepreneur, Bill Daniels. In his first two years at the Daniels Fund, he reduced overhead by 35% and shifted $2 million a year to increase grants and scholarships.
Before the Daniels Fund, Brown served as the 11th President of the University of Northern Colorado. Before becoming UNC’s President, he served Colorado in the United States Senate (elected in 1990) and five consecutive terms in the U.S. House representing Colorado’s 4th Congressional District (1980-1988). He also served in the Colorado Senate from 1972-76.
Brown was a Vice President of Monfort of Colorado from 1969 to 1980. He is both an attorney and a C.P.A.
He earned a Bachelor’s Degree in Accounting from the University of Colorado in 1961 and served as CU’s Student Body President. He earned a Juris Doctorate Degree from the University of Colorado Law School in 1969. While in Washington, Brown earned a Master of Law Degree in 1986 from George Washington University. In 1988, he passed the exam to become a certified public accountant.
Brown served in the U.S. Navy from 1962-66. He volunteered for service in Viet Nam and was decorated for his combat service as a forward air controller. The Colorado native and his wife Nan live in Denver. They have three adult children, Harry, Christy, and Lori; and three grandchildren.
Posted on Tuesday, September 18, 2007
by Hank Brown