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Public Universities Struggle To Stay Afloat

Wednesday, March 10, 2010

By Eliza Krigman  

Gene Block

UCLA chancellor

Chancellor Gene Block has overseen UCLA during the most challenging fiscal climate in decades. Last week, thousands of students, teachers and other stakeholders protested education budget cuts and increases in student fees across the Golden State. This week Chancellor Block is in the nation's capital to meet with lawmakers and the members of the UCLA community in Washington. He sat down with National Journal to discuss money woes and his strategy for the future. Edited excerpts follow.

NJ: Will you be lobbying Washington lawmakers for increased federal funds for higher education?

Block: We will be informing them about the importance of federal funds for supporting institutions. Clearly, they play a critical role already at UCLA. This year we are going to do over a billion dollars, we suspect, in external support for our [school]. Of that, a large a fraction will be federal support.

At one time funding agencies were involved with providing infrastructure for universities, and that's sort of disappeared. There is some of that of going on, but not nearly enough.

NJ: What is your strategy to deal with the financial challenges facing UCLA?

Block: We recognize that Sacramento and the whole country are going through a deep recession and that California has been hit disproportionately. When you go to Sacramento to visit with legislators, all of them are supportive of the UC system, and some of them are passionate about UCLA, but they are faced with very difficult choices. With that said, they are reassuring us that they are going to respect the governor's budget proposal, which is really no further cuts to the UC budget. We certainly hope that's the case....

In terms of planning for the worst... we are looking into administrative and academic restructuring to be more efficient. For example, in information technology, we are working hard to combine facilities and services so that we are can remove as much inefficiency as possible. Even in academic areas, we are beginning to ask hard questions about majors and the number of requirements. Some of the majors have created many courses over the years and [we're asking] whether they can be trimmed down to become more efficient.

Fees have increased for students and that makes up a reasonable fraction of the shortfall. We are looking at other ways to bring in university support. We are focused on intellectual property and the optimization of our revenues there.... We are focused on seeing how we can bring fundraising to new levels.

NJ: What revenue stream will play the largest role in shoring up the budget gap?

Block: Immediately, it's the increase in student fees. In the short term, that will play a large role, along with restructuring. In the long run, I think philanthropy is going to be the major determinant in how we can continue to be excellent with reduced state support. Last year I announced a $500 million campaign for student support, and this is money for undergraduate scholarships and graduate fellowships. I have a laser focus on reaching that goal within five years.

NJ: For-profit schools are the one sector in higher education that's growing exponentially right now, what, if anything, can nonprofits learn from them?

Block: I think they need to be studied because they are using a different model. This is an oversimplification, but they have a student-focused model and not a faculty-focused model.

As I understand it, at the University of Phoenix, they hand a faculty member a curriculum with instructions on what needs to be covered and what books will be used, and the faculty member fits into the mold. It's a delivery system.

I think it can serve students well in some areas, especially technical training. They are not involved in discovery, they're not involve in producing inquisitive minds. That's not their job. I think in some areas they may be able to deliver a very satisfactory product, that's just my impression. But it's not the kind of broad education that universities are involved in, it's not going to produce people who want to be researchers and create new knowledge.

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This is really true. I have seen some of these problems in my local area. We need to get our economy straight and get kids back in school. This is really a great article.

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Responded on September 13, 2010 10:43 PM

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This is really sad to see that these universities are suffering like this. I hope to to see some positive changes very soon. This is really sad to see that this is happening in America.

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Many of these great Universities have been standing for well over 100 years. We have to help them get back on their feet and help kids get into schools.

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The economy is really effecting a lot of colleges. This is so sad to see.  We have to support these colleges better in the future with more money. They should never close.

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So it's not just citizens feeling the effects of a stalling economy, it's public universities as well. Just goes to show this economy is being squeezed through a can crusher, proving this is a depression of the magnitude of the 1930s, not a recession.

 


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