A state is a terrible thing to waste

http://media.businessreport.com/media/img/photos/2007/12/31/JR.vu_t290.jpg
A state is a terrible thing to waste

Monday, June 1, 2009

We’re moving into the eighth month of [cue graphic, roll ominous music] “Assault on Higher Education: Louisiana’s Financial Brain Drain.”

We’re also 17 months into Bobby Jindal’s first term as our new-day-has-dawned governor, 23 months into John Lombardi’s tenure as LSU’s shoot-from-the-lip system president, 11 months into Sally Clausen’s second reform-minded stint as commissioner of higher education and a little over one month into the two-month comedy festival known as the 2009 regular legislative session.

On the subject of Higher Education 101, all those months add up to a giant waste of time.

Time this state—which continues to fall further and further behind in almost every measurable way in the building of a knowledge-based economy—does not have to waste.

Don’t misunderstand, pretty much anyone with the intellectual capacity to string the words “higher” and “education” together in a sentence has demonstrated his or her ability to do so. Yet while there’s been yapping aplenty, has anyone seen any real action? Any bold plans? Forget bold, any plans?

As is usually the case in Louisiana, and almost always the case when the topic is education [higher or K-12], the only focus over these past eight months has been to follow the money.

Jindal stands there declaring this year’s $219 million problem is only going to get bigger over the next two years so somebody better do something about it—without raising taxes. Legislators are scrambling to define “tax hike” while probing every nook and cranny of the budget to reduce the fiscal hit. University leaders aren’t doing much of anything, other than issuing death threats to programs and jobs while screaming, “Just give us our money, dammit!”

And that giant sucking sound you hear above it all is the complete and utter lack of leadership.

No question, lagging higher education funding is a decades-old issue in this state, even with the increases seen under the Foster and Blanco administrations. Unfortunately, money isn’t higher ed’s big problem.

Here’s the truth: Political and education leaders are using the cash-flow crisis as subterfuge to mask the very depressing fact that higher education in this state is as abominably broken as our K-12 system.

It’s time for a reality check. There are not enough community and technical colleges in this state, and the manner in which the system interacts with the business community and reaches out to its students must be radically overhauled. There are too many four-year institutions, some existing not for any profound educational purpose but almost exclusively for the jobs they bring to a community. Parochialism, petty jealousy and turf battles are everywhere, resulting in an alarming duplication of programs where mediocrity is the best-case outcome. Campus leaders remain stuck in an old-school mindset, refusing to embrace the fact universities must reach beyond their ivy-covered walls and foster intellectual partnerships with the knowledge-based private sector. And here’s the big one few seem to realize: Not all colleges and universities are created equal.

No doubt there are pockets of excellence, but how can anyone defend our populist approach to higher education when the best this state can do is boast one bottom rung Tier I institution? [Who wants to bet that one will be gone next year?] Pick any statistic you want [except athletic proficiency] and not one public university in Louisiana even sniffs the national elite.

So why is the debate only about the restoration of funding? Why, so we can continue pumping money into a broken system?

It’s time for Gov. Jindal to quit defining the problem and start demonstrating the leadership to solve it. He needs to appoint a commission [elected officials need not apply, and I suggest he find experts who live outside the state willing to serve] and give them 10 months to redefine and restructure higher education in this state. Whatever they come up with goes before the Legislature for a simple up-or-down, all-or-nothing vote. If it then has to go before the voters, fine.

Until then, Louisiana’s higher education funding problem really isn’t the problem at all.


Comments

Posted by jrball (JR Ball) on June 3, 2009 at 11:15 a.m. (Suggest removal)

For the record, HB 797 would setup a nine-member commission, including experts from out-of-state, but it also includes elected officials and leges can choose to accept or reject any part of the commission's recommendations. Topics include funding, governance and facilities. But the bill is also missing plenty. Translation: Little real reform will be done should this good-sounding, warm-feeling bill pass both chambers.

Posted by Schoolfin101 on June 3, 2009 at 1:34 p.m. (Suggest removal)

And here's how K-12 in Louisiana compares:

http://schoolfinance101.wordpress.com/20...

Posted by jrball (JR Ball) on June 5, 2009 at 10:44 a.m. (Suggest removal)

Couple of quick points: 1) There has been talk that shuttering a campus or two or three won't really save a lot of money. Perhaps if one only looks at direct costs. What about the money, time and effort on duplicate programs etc.?

2) More important, many of these four-year colleges primarily serve needs typically fulfilled by community and technical colleges. Make them what they really are and put them under the leadership of the community college system for better efficiency and program allocation.

3) Without question, LSU is the state's flagship institution, much like UNC-Chapel Hill is the flagship school of that state. However, that doesn't mean the remaining schools are simply lumped together. UL-Lafayette, UNO (because it's in New Orleans, also absorbs SUNO) and Louisiana Tech (which absorbs the undergrad program of LSU-S [medical school remains part of LSU] and Grambling [may be politically impossible] and perhaps another nearby university) are their next tier of universities and get funding priority directly behind LSU.

4) Though LSU is the flagship, it can't pick and choose its programs of excellence. A single governing board decides that, acknowledging there WILL be many programs at UL-L, UNO and La. Tech that get funding and resource priority over LSU.

5) Example of why this requires outside people: It's crazy that LSU-BR, the Ag Center, Law School and Pennington are separate intitutions. In just about every other state, each would be under the main campus.

6) Two-year schools must provide the resources to attract students to satisfy the state's workforce needs, such as daycare facilities (tough for low-income students to attend class when they have children at home) and job placement programs to help defer the cost of attending college.

7) Could go on and on and welcome other suggestions. Clearly the matter is far more complicated than a few bullet point ideas... but let's get the creative juices flowing.

Posted by batonrougenative on June 5, 2009 at 11:21 a.m. (Suggest removal)

Mr. Ball,

Shown below is a comment posted on your Editor's page about his comments that 'Government cannot fix GM'. Then he talks about fixing Louisiana government as you are......

Big question for McCollister, Ball & Jindal

You publication is 'touting' Jindal's re-organization study for streamlining Louisiana Government.

Readers, please look at who is going to be on the Commission according to the legislation.

1. The Governor's Commissioner of Administration

2. The Governor's Secretary of Health

3. The Governor's Secretary of Natural Resources

4. The Governor's Executive Director of Labor

5. The President of the Louisiana Senate

6. The speaker of the Louisiana House

7. WOW, here is the big one, "two individuals engaged in private enterprise" APPOINTED BY WHOM? THE GOVERNOR!

ETC.
ETC.
ETC.

Are u kidding?

Obviously, the Business Report, Mr. McCollister, Ball and Jindal firmly believe in the premise that 'YOU CAN FOOL ALL OF THE PEOPLE ALL OF THE TIME'.

Posted by Tigerfan169 on June 5, 2009 at 11:42 a.m. (Suggest removal)

Amen Brother, preach on.

Only thing I will add is that the hit to higher ed is far from draconian. Once you add in stimulus and tution raises, it was only about a 5% cut.

Once people see real reform in higher ed (not that nonsense LSU-BR is doing moving econ from business to the newly named "humanities and social science") people will be a lot more willing to invest more tax dollars in it.

Posted by ConstantReformation on June 5, 2009 at 11:45 a.m. (Suggest removal)

I've been hearing all of my adult life that if LSU were just properly funded the research dollars would come, yet Lombardi claims that without more money, the existing research institutions will be forced to cut back or close. If CAMD and Pennington are not self sustaining after all of this time, then they really should close. Private institutions in similar situations would not be sustainable – why should the people of Louisiana be asked to continue to provide what amounts to welfare assistance for LSU? The redistribution of wealth from taxpayers and students needs to end.
I don’t want to hear about the secondary benefits to the community like the additional jobs provided and the pride of having these institutions in our community. In today’s economic climate, the private sector should be allowed to keep those funds and use them more efficiently and we really can’t afford the luxury of research facilities to improve Baton Rouge’s self esteem.
One final thought, what gives Lombardi the right to spend taxpayer and student dollars on radio propaganda spots? I resent this abuse of the public trust.
BTW – good job J.R. Prepare for the slings and arrows of the Lombardibots.

Posted by citizen on June 5, 2009 at 11:57 a.m. (Suggest removal)

JR,

Buddy Roemer had some great ideas, but he met a stone wall. Jindal has no shot. The status quo will not permit necessary changes to our education system because their constituents might not keep their jobs.

Nothing you see now is new, it's business as usual. The state is one big populist cesspool with an occasional reformer trying to overcome history without success.

Thank God, we have to balance our budget. If we could borrow money as the Feds do, we would have been broke 50 years ago.

La. ranks in the top 20 in state+local taxes. we aren't at the bottom of everything because of a lack of revenues, we're there because the powers that be have to make sure their people get theirs and that doesn't always produce good government.

Furthermore, do not think LSU or higher education as a whole isn't part of the problem. Most of their leaders and administrations came from the very state government that created this very mess. They too take care of their own, and they aren't about do "right" for the good of the whole.

J R, your enthusiasm and your concern on the subject are appreciated, but at the end of the day; I hope you realize that you are wasting your time. I also hope you are telling your children that they need to be prepared to leave the state if they want a good job. That's life in La.

Thanks,

Citizen

Posted by jrball (JR Ball) on June 5, 2009 at 12:19 p.m. (Suggest removal)

To Batonrougenative: The Business Report isn't touting anything. Mr. McCollister has his views, which unquestionably are very pro-Jindal, and I have my views, which I leave to others to define. That said, there's a difference between government fixing a private-sector company or industry and government reforming itself. I'm not sure government really is capable of reforming itself, which I why when I call for reform it's usually with the caveat that outsiders not tied to government make the suggestions and then put it before the leges for an all-or-nothing, up-or-down vote.

Posted by jeffsadow on June 5, 2009 at 12:26 p.m. (Suggest removal)

Not only has this been discussed long ago ...

http://jeffsadow.blogspot.com/2006/02/ma...

... but the basic plan has been in place even longer as suggested by the Regents Master Plan of 2001. All it takes is the political will to do it. No, it would not be popular to collapse the Southern system into the LSU and UL systems, merge Tech and Grambling, move some Tech functions to LSUS and NSU functions to LSUMC-S, downgrade NSU, SLU, Nicholls, etc., but it would be the right thing to do. Whether they are done is an entirely, and doubtful, matter.

Posted by btr_guy on June 5, 2009 at 2:41 p.m. (Suggest removal)

The real issue here is how a bunch of Republican tax-o-phobes have completely twisted the higher ed issue so that they can rail against "taxingus maximus" without actually dealing with the issue of a disfunctional university structure that still suffers the failings of segregation and parochialism.

If we follow President Obama's recent pledge to "speak the truth that everyone knows", yes we must restructure higher education. Yes we must consolidate several existing universities and transform the governance boards. But it is equally true that we cannot do this without the political leadership of the Governor. Jindal has not provided one iota of direction, leadership or courage to do what we all know is true.

Instead, he has unleashed his minions to attack any effort to address the immediate issue of funding by declaring SB 335 a tax increase (how can it be an increase if I don't pay any more taxes than I did last year???), by denouncing higher ed because of previous funding increases from the legislature, and by defaming LSU senior faculty who happen to earn a competitive wage (those who earn over $70,000). Aside from the obvious straw-man attacks, do they understand that those HCEs (High Cost Employees) generally bring in twice (or more) their salary in federal grants and contracts? Do they understand that state investments in higher ed (with its warts and all) still brings in six-fold of economic activity?

The truth is that Jindal does not care about higher ed. If he did care, he would look at any and all solutions at both the short term (funding) and long term (structure) problems, and not be blinded by his dogmatic adherence to a failed political strategy.

Posted by Ahoodah on June 5, 2009 at 3:35 p.m. (Suggest removal)

Tigerfan169 must only be a fan of what goes on in Tiger Stadium, Alex Box, and the PMAC and not the rest of the campus, else he'd understand that the University that those teams play for is in jeopardy. Maybe all he wants is a "great" community college with a campus that looks nice (but is falling apart behind the facades) and has a great set of teams. Does he really think he'll have great teams for long if the kids who populate them are -- when not practicing or playing in their high-dollar facilities -- faced with going to a 2nd or 3rd rate university? We may proudly 'whup them yankees' in football, but I think the value of a degree from Ohio State, Notre Dame, or even Georgia Tech is FAR greater than from a LSU that is nothing more than a fancy community college! Why is that we are so satisfied in this State with mediocrity from our colleges Monday-Friday, but so upset if they're not 11-1 (or 12-0)on Saturdays?

The cut for Higher Ed is AFTER the stimulus money has been added – it is far more than 5%. For LSU, what you hear touted as a $35mil cut is after the $10mil it took in January, and not counting mandated costs that will increase by more than $5-mil. The tuition increase barely covers that last item, and the institution is now making the plans for the permanent cut of ~$40mil. Tuition would have to go up by more than 40% to cover the total loss, and maintain that barely-there placement in the top level of universities.

But we won't allow raising tuition! We must keep it cheap and government funded (TOPS) -- because once Mommy and Daddy have shelled out all those years for private education to get around Mr. Ball's accurately depicted broken K-12 system, they're ready to be free of costs and start to live the good life here in Louisiana! We made it! Now off to old LSU (or ULL or Southern, or wherever) to get that diploma which will be worth exactly as little as we paid for it!

To those who 'resent' LSU's leadership crying havoc over this in any way they can -- what money should they spend to make that case known? And they wouldn't have to spend anyone's public trust funding if people weren't so tone-deaf to the facts of what Governor J. and the House Reps are doing. Why not instead direct your righteous Louisiana indignation toward BJ and the Legislature? Or perhaps, toward yourselves, for allowing the State's constitution to so completely hit only two sections, while the rest sit hiding safely behind a constitutional tree?

In the end, Mr. Ball has many points right but one most especially -- there will be no Tier-1 university in this State after this debacle. I suppose most people don't care about that -- so long as the football team wins on Saturday nights, and the baseball team beats Rice and goes to the CWS. Just keep enjoying all that ... soon you'll be tailgating outside nothing. No LSU, NEAUX TIGERS.

Posted by citizen on June 5, 2009 at 3:36 p.m. (Suggest removal)

btr_guy,

In all due respects our higher ed problem was not created by Jindal, nor can it be fixed by Jindal.

The problem took decades to create, and the only man who had any chance of fixing it with the muscle to do it; is in jail because he couldn't do the right thing for the state.

La. taxes are high enough, we are in the top 20 nationwide in local+state taxes. We do not need a tax increase, we need tax cuts. Our entire tax system needs reform.

Right now there is a national recession and La. will be affected more and more. I realize LSU and higher ed is important, but does anybody think that in severe economic times it would be business as usual? Higher ed will suffer as will all of the state.

Maybe it will be a good thing and we'll do some necessary things, but I doubt it. Oil prices are rising and the oil patch will start perculating again. We'll get another dose of all that black gold and forget that we have problems. This will last until the next time. This is afterall, Louisiana.

Citizen

Posted by Ahoodah on June 5, 2009 at 3:54 p.m. (Suggest removal)

Citizen, I don't necessarily completely disagree with you, but the difference is that if LSU were only to deal with the national/State recession, it would -- i.e., if it had less students because they couldn't afford to come there, then so-be-it. That's the market economy at work.

But the problem is that the State holds one spigot (the appropriation)and also holds another spigot (tuition setting) and a third one as well (TOPS funding which means tuition costs really are State costs, which is why it must control tuition that much more).

Folks at LSU are not just crying "give us our money." That's just the immediate word, because they know the larger cry of "cut our hands free" is a longer-term thing. Cut the appropriation and the State support if that's how the budget plays out -- but let LSU (and others potentially as well) control tuition and set it a rates that the market will bear. Maybe via TOPS we've adopted the view that a college education is a government-funded entitlement. But does that mean a Flagship LSU education is the entitlement? I don't think so.

Other States also are dealing with cuts. And other States have told their flagship universities that they must take a 10%, 15%, 20% or more cut in their State appropriations. The difference in those States is that their flagships have 20% or less of their total funding coming from the appropriation, and have control of setting their tuition. So the cuts are minimized, and while tuition goes up -- the universities still have to deal with the market; they can't price themselves out, and thus they manage their expenditures accordingly (and successfully).

Yes, their tuition is higher -- about the same level as our K-12 parochial and private school levels.

Posted by btr_guy on June 5, 2009 at 9:02 p.m. (Suggest removal)

Citizen,

My point was that it is the responsibility of the Governor (whomever that is) to address both the short and long term problems of higher ed. But to suggest that the only person with the muscle to fix the problem is some one in jail (who shall remain nameless but whose initials are EE???) is laughable. He's the one who designed the flawed funding system in the first place. It was EE who put into the constitution the various "sacred cows" that left universities and health care vulnerable to cuts. He's in jail for a reason - he was a crook!

As to taxation, you are wrong about our "tax ranking" in the top 20 states. If you look at our state income tax rates, ours is below average (2 - 6%). And state sales tax (4%) is just below average. And our property tax is some of the lowest in the country when you include the homestead exemption. The real canard is that Republicans are screaming bloody murder about a non-increase in taxes worth the cost of steak dinner.

My point is that our current governor, who claims to support higher ed, is not providing the leadership to fix the problem. Instead, he's wondering how he can spin this so that the ultra-right party faithful will contribute to "Bobby for President." He needs to stop thinking about Washington and start focusing on this great state.

Posted by LiberatedTiger on June 9, 2009 at 2:58 p.m. (Suggest removal)

Does anyone out there really believe that the legislators of a state in which nearly half of all public school kids drop out before graduation really take higher education seriously?

I remember an old MAD magazine cartoon which had a similar tone to the headline of this article and pretty-well sums up the current actions of our state. It read, "A mind is a terrible thing to waste .........money on!"

Posted by pmccarron on June 10, 2009 at 1:29 p.m. (Suggest removal)

A State wasting Tax Payer Money is a Terrible Waste too.

Posted by citizen on June 10, 2009 at 3:26 p.m. (Suggest removal)

btr_guy,

I stick by my statement, EWE was the only one with enough muscle to overcome the obstacles that are present and in the way of serious education reform. Bobby Jindal is not nearly as strong as EWE was back then.

We can ague about how much Jindal could get done, but that wouldn't get us anywhere. I do agree with your point about bobby being gone too much while vital state issues get neglected. He should be building a consensus, and he should be fighting for vital reforms in education, taxation, and in state government as a whole.

I stand by my statement of La. being a high tax state. I have provided a link for my contention. It is from 2007, but I do nopt believe 2008 data is in yet.
http://money.cnn.com/galleries/2007/pf/0...

Keep in mind though we have a low property tax rate, our income tax is up there (Texas has one), our sales tax is up there, and I believe we have a lot of local taxes and fees.

La. governments have a lot of revenues, it's just that we don't get a lot for it in return.

citizen

Posted by btr_guy on June 11, 2009 at 4:22 p.m. (Suggest removal)

citizen,

EWE is a joke and a crook. He single-handedly put into place the protections that now force cuts onto higher ed and health care. He was the problem not the solution. But I digress.

The Governor's job is to fix these problems, and Jindal refuses to accept that responsibility. He doesn't want to be the fall guy for closing down universities because it will interfere with his presidential ambitions.

As to the return on our revenue, let's do the math. Last year, the state spent about $225M in support of LSU. In return, LSU generated over $1.3 Billion in economic activity for the state. That's a 570% return on investment. Not to mention a 61% graduation rate (highest among all LA public universities - no others above 50%), and over $140 Million in federal research dollars.

Sounds like we got a pretty good deal from LSU. Only a fool would reduce that investment.

Posted by citizen on June 12, 2009 at 3:50 p.m. (Suggest removal)

btr_guy,

My point is only that EWE had the muscle to call a constitution and to push through his agenda. It wasn't because he was a "good" governor, it was because he was powerful. I realize EWE was never the answer, but I realize he could get things done when nobody else could.

Bobby Jindal doesn't have the power base required to do what is necessary. The legislature would balk at any attempts to reform the system because the homefolk in Thibodeaux, Lake Charles, Nachitoches, etc. would howl.

I provided a link for you to see that we are taxed enough. Ask John Kennedy, he will tell you the same thing. Accordinly, I am not for any tax increases. We have plenty of revenues coming in now.

Now as for LSU. I generally support fully funding LSU, and I realize it is a huge economic engine for the state far surpassing the Saints or the chicken plants. There's no question, LSU is great for BR and for La., and LSU is not truly appreciated by the masses.

But that is not the problem we disagreed about. The point is is it practical for Jindal to solve the problem we have in higher education? I don't think he can, and yes some of it is his fault, but some of it is the times and the state we live in.

Hopefully Jindal can help erode some of the resistance to true reform, and build a reform coalition to make the needed changes to higher education, but running around the country campaigning for president isn't the way to do it.

citizen

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