With a few exceptions, tuition for state universities in Ohio has not gone up in 4 years. That, plus no increase in state funding in the new budget, leaves the president of the University of Akron wondering about Ohio’s economic future. Matt Wilson spoke to the Akron Roundtable today (Thursday).
In the year since Wilson stepped into the office, the school has managed to turn a $30-million-dollar deficit into a $12 million surplus. But Wilson worries that the state legislature, which is controlled by Republicans, isn’t big on supporting higher education.
“We’re actually 27% below the national average when it comes to state funding for public university students.”
Ohio also ranks below average with only 26% of its adults with bachelor’s degrees.
Wilson says that competing for the new Amazon headquarters would be difficult because Ohio suffers from a “talent gap.”
“You look to see what Amazon is looking for. They’re looking for a strong university system - a place where they can come in a get immediate talent. I ask myself: here in Akron and Cleveland, are we positioned to go after a company like Amazon, based on our education system?”
Wilson says estimates are 64% of Ohio jobs will require some college education in the next 8 years but only 43% of working-age Ohioans will achieve that.
Stark State College has raised eyebrows erecting a new building within walking distance to UA. But Wilson says colleges may be spending too much competing with each other.
“Wouldn’t be great if we could collaborate more. And whether that’s through joint programing, whether that’s through better pathways, whether that’s by exchanging faculty, doing things of the like.”
Stark State College President Para Jones was in the audience.
Matthew Wilson's prepared speech.
Akron Roundtable
Quaker Square • Sept. 21, 2017
“Crossroads in Higher Education:
Responding to Ongoing Challenges and Preparing for the Future
Through the Eyes of The University of Akron”
Matthew J. Wilson, President
The University of Akron
My presentation today is about crossroads in Higher Education.
This CROSSROADS – this point at which a vital decision must be made – involves higher education but its ramifications go far beyond that.
It involves individuals, families, and communities. It factors into sustainability and global competitiveness.
In deciding how much we are willing to support public higher education in this state, we are deciding what kind of state we want Ohio to be.
- State budgets are being squeezed
- Overall value of education is questioned – at least by some
- Questions raised about the operations of universities in general
This afternoon, I would like to cover three topics:
- Some challenging truths about higher education in Ohio
- Some encouraging truths about your University of Akron
- Some thoughts about where we go from here
CHALLENGING TRUTHS ABOUT HIGHER EDUCATION IN OHIO
I regularly attend Inter-University Council meetings involving presidents from Ohio’s 13 public universities. This includes a broad range of institutions, from massive OSU with 66-thousand students, to tiny Shawnee State with only 37-hundred. Despite our differences the most critical issues apply to one and all.
Return on Investment
At our IUC meeting several weeks ago, we talked about money – no surprise there, I am sure.
We didn’t simply talk about the money our universities need to operate, though. Rather, we talked about the value of education and the money you hope your children and grandchildren will earn as adults.
It seems hard to believe, particularly in a century as technologically dependent and driven as this, but there are those who claim you don’t really need a college degree to succeed.
Of course, there will always be those for whom college is not the right path. Naturally, there will always be exceptions to the rule, or professions that simply don’t require a college degree.
However, these exceptions are becoming fewer and fewer as our economy becomes ever more knowledge-based and complex.
As the father of two college-age children and two high school students, let me phrase my remarks from a parent’s perspective. I firmly believe that my children need a higher education in today’s world to:
- Learn lessons of history so we don’t repeat mistakes;
- Comprehend the world around them both locally and globally and have a global perspective that can open doors, minds, and opportunities;
- to understand the discoveries of “giants” so we can build upon these discoveries and move society forward;
- learn about communication, leadership, social interaction, conflict resolution, and the viewpoints of others;
- serve others and advance society;
- Or, even simply to filter out the misinformation that is prevalent in today’s world.
Study after study after study demonstrates that by earning college degrees, our children are statistically likely to earn $1 million more over their lifetimes than peers without a degree; have an unemployment rate nearly ½ that of those without degrees (recessions are especially hard on the under-educated); live at least 7 years longer; vote more often; and volunteer and engage in civic life more often. [1] And because of our children’s choice to earn college degrees, our grandchildren are more likely to do well in school. [2]
Student Debt
Some ask, “what about all the debt they’ll accumulate getting that degree?” While we all have seen headline-grabbing stories about six-figure individual student debt, those are outlier situations and don’t reflect reality for most students. [3] Very often the students in those examples are enrolled at high-end, private colleges. These stories also raise questions about personal responsibilities and choices, especially concerning cars, apartments, etc.
The reality is that average debt for graduates of Ohio’s public universities, is about $30,000. [4] That is lower than the cost of most new cars. Consider what I just told you, too. For that $30-thousand investment in their teens and 20s, they are likely to earn $1 million more than their peers who didn’t get degrees. That’s a potential $1 million return on a $30-thousand investment: I am not a CPA or financial advisor, but that sounds like a pretty good ROI to me.
Now consider the same issue, but this time from the perspective as Ohio citizens, taxpayers, and homeowners.
Ohio’s Attainment Goal
There is a severe and well-documented “talent gap” that threatens our state’s continued economic competitiveness and growth. It is estimated by 2025 – just 8 years away – approximately 64% of Ohio jobs will require postsecondary education. [5] At the current rate of completion, only 43% of working-age Ohioans will have a college certificate or degree. That leaves a gap of 22% of jobs we cannot fill. [6] This is compounded by the inability of some folks to pass drug test.
What happens to unfilled jobs? They go elsewhere. What happens to a state/locality in which the jobs go elsewhere? Anyone in this room who remembers the term “rubber capital of the world” knows the answer to that question.
We cannot let this happen. We simply must produce more college graduates for Ohio to remain economically viable.
Associate vs. Bachelor’s/Graduate Degrees
I must stress that it is dangerously shortsighted if our solution to this dilemma is to make higher education just another form of vocational training. A university education prepares you for a profession, not merely a job.
During a recession, those who hold associate degrees are less affected than those without any college experience…but those who hold bachelor degrees are less affected than those who have only associate degrees. [7] That gap is even more pronounced during the recovery that follows a recession.
A Georgetown University study showed that between 2010-14, 152-thousand good jobs – defined as paying more than $53-thousand a year – went to people who had only an associate degree. 152-thousand sounds good…until you consider that 2.8 million good jobs went to those with bachelor degrees. [8] The skills and education learned can open doors and pay dividends.
There is no mystery to this. If you learn a skill, you will do better than someone w/o any. If you learn how to think critically and how to constantly evolve your skills, you will do better than someone who learns a single, static skillset.
At the community level, the need is even greater for university education beyond vocational training. What modern community can survive without doctors, or engineers, or executives, or scientists, or researchers? You need bachelor’s degrees and better to produce those vital professionals. Learning one’s trade sufficiently can take more than a year or two.
Opportunities provided at institutions like The University of Akron reach beyond the classroom as well, and include leadership development in residence halls; discipline from activities on the field or the court; service-oriented learning; and study abroad
State Investment & Support
Ohio does indeed invest in its public universities. The question is, is it enough? How well do you think Ohio compares with other states in terms of investing in students at public universities? Well, I can tell you we are not above the national average. We’re not even close to the national average. State funding per public university student in Ohio is $5,078. The national average is $6,966. We are 27% below the national average. 27%!! [9]
A common response I hear when I bring up these points is that college education is too expensive and grows costlier each year. I also hear that Universities are bloated and should simply cut the fat.
Tuition Control
Let me share with you a few of those “challenging truths” I alluded to at the beginning of my speech.
Ohio’s rate of tuition growth among public universities is the 4 th lowest in the U.S. The national average increase over five years is 12%. In Ohio, it’s 2%. [10] Why is our rate so low? Because tuition at Ohio’s public universities has not increased in 4 years. [11] Let me say that again: tuition at Ohio’s public universities, with only a very few exceptions, has not risen in 4 years. At UA, our tuition and fees are below $12,000 per year.
Nor can anyone justifiably claim that we are “bloated.” In fact, we are ranked no. 1 or 2 in the state in terms or efficiency (staff/administrator to student ratio). Others operate on a 2-to-1 or 3-to-1 scale.
When the state legislature freezes tuition, they soften the financial blow to universities by increasing the state subsidy. The state subsidy is a formula that determines how much money the state gives to each university, based on the number of students enrolled and graduation rates. This year that practice of raising the subsidy when tuitions are frozen changed. Ohio’s biennial budget approved last summer freezes public university tuition with no additional state support.
Have we arrived at a crossroads for public higher education in Ohio? If we haven’t, we must be awfully close. So we must seek out POSITIVE solutions.
There is a phrase in Japanese that really gets under my skin – shikata ga nai. Literally translated, this means “It cannot be helped.” In this instance, we could use this phrase in terms of the lack of funding. We could also use it to say “it cannot be helped” that we will have to cut down on opportunities for students and community.
However, I want to remind and reassure you that a crossroads, while forcing us to make a decision, also can be a point of opportunity if approached with an open mind. It is an opportunity for positive change and improvement. And it allows you to focus on your core mission and what you do best
I can make that statement because at The University of Akron, we have been facing our own crossroads recently. While we still have a lot of work ahead of us, we have made excellent progress and we have regained our confidence. We have become more efficient and focused. We are in the process of assessing what we need to do to continue providing a quality education into the future.
ENCOURAGING TRUTHS ABOUT THE UNIVERSITY OF AKRON
Last year, when I was asked to step up from my role as dean of the law school to take on institutional leadership, the way forward was murky. Fast forward a year. Thanks to innovative thinking, collective efforts, financial discipline and cost containment, we have converted a $30M deficit to a $12M surplus in FY 17.
We face continued fiscal challenges in FY 18 and 19, but we are using the momentum of our success last year to continue to be innovative, pragmatic and cost-conscious as we move forward. How? I could get down into the nitty-gritty details, but there’s not enough time in the day. So generally speaking one of the first things we did was restore trust and faith in each other & rebuild our relationships. We did that by increasing and sharing information among, faculty and staff, alumni and donors, students, and prospective students and parents.
In addition to transparency, we needed a thorough understanding of our present circumstances and future trajectory, absent any change. Thanks to a generous donor and with the assent of our Board, we were able to access the expertise of Ernst & Young to do the kind of analysis that would, to borrow from Donald Rumsfeld’s now famous phrasing, reveal our known knowns, our known unknowns, and our unknown unknowns. [12]
What we discovered was an exceptional foundation, a great team of people, and a willingness to transform. Together with that, we devised a strategy that we named “Stabilize, Invest and Grow.” And that’s exactly what we’ve been doing. Let me tell you a little of how we’ve done that:
- ACCESSIBILITY: Moving Forward Making a Difference scholarship campaign
- INNOVATION: Akron Guaranteed Scholarship program (AGS)
- ROOTS: Flexible Learning Option (FLO) – “near-completer” students
- SUCCESS OF FAMILY: Focused on retention
- GOING GLOBAL: International Center
- EFFICIENCY THROUGH A DIFFERENT LENS: All-Ohio Focus with controlled costs for Baseball & Women’s Lacrosse
- All of this within about one year
Wiping off the Goggles
Many of you here have heard my biography, and know that I have lived and worked in Asia as well as in several locations in this great country. Sometimes, when local people learn of those details, someone will ask, “With all that background, why Akron?”
And as my wife Noriko and I have discussed, when I hear that, I feel like should carry around a handkerchief, because those individuals seem to be wearing fogged-up goggles that prevent them from seeing properly.
Why Akron?! This city has wonderful people, a great downtown, access to metro and National parks, and a strong business community.
Akron also has has a truly outstanding University. It has:
- World’s first, and our nation’s largest and broadest, polymer academic and research enterprise.
- a Law School that has been named a Best Value in the nation; among the top 50 overall; among the top 25 for bar exam preparation; among the top 7 for prosecutors and public defenders – remember, I am a former dean of Akron Law, I could go on about it all afternoon. But let’s look elsewhere.
- For UA students, job placement rates within 6 months of graduation are as high as:
- 100% for computer science
- 99% for music education
- 96% for engineering
- 94% for graphic design
- 85% for health professions
- 84% for business
- Pass rates for professional licensure and certification exams exceed the national average in, nursing, education, nutrition and dietetics, law, sports science, audiology and more
- The highest-ranking in Northern Ohio for commercialization of technology
- One of the nation’s premier men’s soccer program (we won the National Champion just 7 years ago)
- a Student Recreation Center that has a national ranking! It’s ranked among the 25 Most Amazing Campus Buildings.
CONCLUSION
Last year The University of Akron found itself at a crossroads. Our community responded by coming together, rebuilding trust, and supporting one another. We took a realistic look at our situation and agreed to work with the data that emerged, regardless as to whether it confirmed or disproved any of our preconceived ideas.
Then we went to work. We tighten our belts and cut costs, but not people. We went out to the high schools and reminded them of the treasure and opportunities that exists right here, in their own backyard. We reconnected with old friends and alumni and helped them realize we are the same great institution that they have supported and taken pride in for so very long.
We got creative and introduced new initiatives designed to meet our #1 priority: improve student success.
We rediscovered and took pride in our many areas of excellence. And we began the serious and frank work of evaluating our strengths and weaknesses in order to become a better resource for our community.
We are on a better path now.
Ohio is at a crossroads in terms of its public higher education, and its own future. We have the opportunity to decide what kind of state we want to be, and what kind of future we will provide for our children and grandchildren.
Let’s take that path that leads forward for all of us.