Opinion: Invest in education for economic recovery

By: Rosemary DePaolo

As our state and our nation emerge from the deep economic recession, it has never been more important to make sure that our students get the knowledge and skills they need to compete in the global economy of the 21st century.

With the support of citizens and business and with bipartisan support in the General Assembly, North Carolina has always been known for the quality of our public universities, since the founding of UNC as the first state university in America. However, the recent economic downturn resulted in deep budget cuts, with the university forced to take a disproportional share. In the current fiscal year, the UNC campuses absorbed 29 percent of all of the budget reversions taken by state agencies and institutions, although these same campuses comprise only 13 percent of the state’s general fund budget.

Unfortunately, we face the possibility of severe cuts again next year. The budget proposed by the Governor for 2010-11 and under consideration by the General Assembly reduces university budgets by an additional 3.9 percent (on top of the 2 percent reduction that was decided during the 2009 legislative session).

UNC campuses stand to lose $154 million, beyond last year’s cuts of nearly $300 million. If the legislature adopted these additional cuts, UNC campuses would be forced to eliminate approximately 1,200 positions, half of them faculty positions. UNCW would have to eliminate approximately 24 faculty positions and another 24 support positions, resulting in 190 fewer course sections, increased time for students to complete degrees, fewer student support services, lower retention and graduation rates, and other significant impacts on the quality of the education we offer and the benefits we provide to the state.

We are at the tipping point, where enrollment in degree programs will have to be limited or capped if funding levels continue to erode. Given that almost all states are experiencing revenue shortfalls and reducing budgets, one might ask how their public universities are coping with the crisis. One seemingly easy answer is a significant increase in tuition, fees, and other student costs. For North Carolina, this is simply the wrong answer for several reasons.

Affordable access to higher education allows individuals with motivation and ability to become productive citizens. Public education is a public good, providing benefits to every citizen, not just a private good that only provides benefit to those who are in need of education. Moreover, Article IX, Section 9, of the North Carolina Constitution, in its entirety, says: “The General Assembly shall provide that the benefits of The University of North Carolina and other public institutions of higher education, as far as practicable, be extended to the people of the State free of expense.”

Unless we want to amend our Constitution and ignore our long history of support for our outstanding University, it is a responsibility of the state legislature to protect and fund higher education. As things now stand, the budget will be balanced in part on the backs of students and parents, through a tuition increase of 8 percent. The revenues from that increase would disappear into the state’s general fund, rather than helping to cover the costs of maintaining quality on the UNC campuses.

The Governor’s recent budget proposal supports an alternative and smaller tuition increase, as proposed by the UNC Board of Governors, with the revenues to remain with the campuses in order to protect the academic core and provide financial aid to students. This alternative deserves support.

Now is clearly not the time to disinvest in higher education and job creation or to levy additional costs on families without benefits to students. As those in business understand, educational opportunities and an educated workforce are necessary for our recovery and our prosperity. In the current legislative session, tough budget decisions must reflect the fact that North Carolina’s economic future depends on keeping our universities both strong and affordable.

Rosemary DePaolo is Chancellor at University of North Carolina Wilmington.

Opinion: Invest in education for economic recovery

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