The Public Strategies Group

Needed: A Higher Education Investment Advisor


The following editorial appeared in the April 12, 2005 edition of the St. Paul Pioneer Press.


by Rick Heydinger
Senior Partner, The Public Strategies Group, St. Paul, MN
and Member of the 2004 Citizens League Study Committee on Higher Education

The Minnesota Legislature is currently considering the need for increased accountability in higher education. The Senate Appropriations Higher Education Sub-Committee chaired by Senator Pappas has heard testimony on collecting additional performance data and establishing a Higher Education Performance Council.

These proposals are part of a Citizens League report on higher education, Trouble on the Horizon. This report sounds a clarion call for Minnesota higher education based on changing demographics, global competition, and declining resources. The report also speaks to the need for performance data that is useful to students, parents, and policy makers to help them make informed investment choices on higher education.

Today Minnesota state government spends $1.3B annually on postsecondary education. Minnesotans take another $1B out of their pockets for tuition and fees.

The State must be certain that these investments are adequate to remain globally competitive. We also must be sure that this total investment is yielding an effective return to Minnesota citizens and employers.

We can be proud of Minnesota's higher education leaders, both public and private. They bring critical policy issues forward. Yet most often the policy choices they present are developed from the perspective of what's best for their institution.

Missing from our State's debate is an independent, powerful voice that keeps the broader higher education questions before us. For example, how does the education attainment of our citizens compare to other countries, not just Wisconsin or Iowa? The U.S, now ranks 15th in the world in the proportion of high school graduates going on to higher education, down from 2nd in 1991.

What impact does the dramatically rising price of higher education have on the capability of lower income people to attend the post-secondary institution of their choice? In 2001, only 31% of 18-24 year olds had attended college where as 79% had enrolled from families earning $75,000 or more.

What "grades" do Minnesota employers give our colleges and universities in terms of preparing graduates for the demand of today's jobs? These data are not collected regularly, but we do know that there will be 3,000 fewer college graduates per year by 2017 in Minnesota.

The quality of Minnesota's higher education sector will take on added importance in keeping Minnesota in a globally competitive position. For other essential sectors, we have oversight or "steering" groups. For utilities we have the Public Utilities Commission (PUC); for air travel the Metropolitan Airport Commission (MAC). These public bodies are charged with representing the interest of citizens and bringing to the fore important policy questions. It's not accidental that Minnesota remains globally competitive in these sectors.

Yet the Legislature and our higher education institutions are ambivalent about moving in the direction of increased accountability. They object to another layer of bureaucracy, a diversion of funding, and changing governance prerogatives.

Rather than cast a performance council as another layer of bureaucracy, it should be seen as an "investment advisor." Organizations and individuals alike seek independent counsel when making investment choices. Why shouldn't the Governor and the Legislature seek the studied opinion of a performance council before making higher education decisions?

A performance council will require a financial investment. Yet an effective operation would cost less than $1 million annually. Taking less than 0.1% off the top of the current higher education appropriation would be a sound, long-term investment.

Some argue that a performance council will intrude on the governing prerogatives of the Legislature. In actuality, an independent voice will enhance Legislative action by giving it expanded, independently reasoned choices.

Minnesota employers are important customers of higher education. They hire the graduates. If their representatives were members of a performance council, the Legislature would have the customer's voice more directly involved and legislative action would be enhanced, not decreased.

Not surprisingly the higher education systems have serious reservations about these accountability proposals. Yet just as the PUC and the MAC keep pressure on the utilities and the airline companies to address issues critical to the future of the State, a higher education performance council could play the same valuable role. For presidents sitting in the lonely chair of leadership, a performance council could also provide them with additional impetus to make difficult choices.

The Legislature should put aside its ambivalence and act on the proposals to increase higher education accountability and establish a performance council. The future of our state increasingly depends on it.

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