August 6, 2007
Cooperation Between Business, Higher Ed Sectors Can Help Keep America Competitive
Four experts discussed the future of American higher ed at NCSL Legislative Summit
 BOSTON - Colleges and universities should look to the business community for answers and inspiration as they strive to meet America’s needs in this global economy. That’s what a panel of four experts told state legislators and legislative staffs today at the opening session of the National Conference of State Legislatures’ 2007 Legislative Summit.
The United States’ higher education rankings are slipping compared with other developed nations, according to the Organization of Economic Cooperation and Development (OECD). The experts on the panel worried that as Baby Boomers retire, their replacements won’t be adequately prepared to take their place.
The panelists were: Hank Brown, president of the University of Colorado; Patrick Callan, president of the National Center for Public Policy and Higher Education; and Phyllis Eisen, a senior vice president at the National Association of Manufacturers. Jim Hunt, former governor of North Carolina, moderated the session, The Big Squeeze: The Challenges to Higher Education.
Hunt said the rate of college enrollment in the United States has stagnated since the early 1990s. He pointed to numbers from the OECD showing that in seven other developed nations, a higher percentage of adults hold college degrees. Not only are we graduating fewer students, Hunt said. Those who do graduate might not be as literate as some of their predecessors.
“We’re seeing a time in America when a workforce that enabled us to be competitive is being replaced by a workforce that is not as skilled and not as educated,” Hunt said.
This doesn’t bode well for the business sector, said Eisen, with the National Association of Manufacturers.
“There’s a lot of concern in the business community,” Eisen said. There’s a skills gap. It’s broad. It’s deep. It’s wide. It’s persistent. The gap is what will keep us from being competitive internationally (in the future.)”
Eisen gave insight into the type of graduates businesses need: “We don’t need people with pieces of paper and degrees,” she said. “They need people who think differently. They need people who are flexible, agile and know how to learn and move from discipline to discipline. This agility and flexibility are what we’re not seeing.” Watch a video clip of Eisen's comments.
Callan, president of the National Center for Public Policy and Higher Education, said these gaps can’t be closed one institution at a time. This nation, and the states, need broader outlooks. Legislators need to examine their higher ed systems and develop plans to improve them. He suggested that states give colleges economic incentives for change.
“Too often, we call attention to new outcomes, but as long as we continue to fund the old way, our higher education systems are smart enough to know the difference,” Callan said. States could distribute higher ed funding based on graduation rates, rather than enrollment rates, for example. Watch a video clip of other comments from Callan.
Brown, president of the University of Colorado, agreed that funding should be based on outputs, rather than inputs. “They have to measure student learning,” he said, “not just hours in the classroom.” Brown said colleges and universities need guidance from state legislatures. He offered advice for legislators looking for ways to determine how productive and efficient their colleges and universities are.
Legislators can insist that universities in their states meet the national average in terms of controlling their overhead costs. And they decide to focus their dollars on essential costs. At a previous post at a university, Brown’s efficiency plan included eliminating 100 administrators, selling the radio station and turning over book store operation to a private firm. Watch a video clip of more comments from Brown.
Eisen, who said higher ed is “could be a lot leaner,” called state legislators the “deal-makers.”
“You have great power in your hands,” she said.
NCSL is a bipartisan organization that serves the legislators and staffs of the states, commonwealths and territories. It provides research, technical assistance and opportunities for policymakers to exchange ideas on the most pressing state issues and is an effective and respected advocate for the interests of the states in the American federal system.
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