Leaders of state colleges, universities face sharpest slashing of funds in nation

By Diane Knich

The Post and Courier

Monday, January 26, 2009

South Carolina has cut 17.7 percent from the budgets of its public colleges and universities this year — the highest rate in the nation. As a result, presidents say the window is closed on a chance to make the state's higher education system more competitive with those in other states.

Presidents at some of the state's largest schools, still numb from the drastic cost-cutting measures they've put in place since last summer, are bracing themselves for more potential cuts. They're hoping to keep tuition increases reasonable for next year, even as they struggle to compensate for the cuts. And they're looking to free themselves from some of the state's bureaucracy, a move they say will make them more efficient.

But mostly, they're hoping the amount of money they get from the state rebounds so their schools don't lose momentum on the improvements they've made over the past several years.

Clemson University President Jim Barker said being the state with highest percentage of cuts to higher education, according to a survey from the Center for the Study of Education Policy at Illinois State University, could hurt schools' academic reputations. Such rankings "make it more difficult to recruit excellent faculty and talented students," he said.

George Benson, president at the College of Charleston, said the college lost $8.3 million, about 24 percent of its state money, this year. Most of the money was cut mid-year, which left the college unable to plan for the shortfall.

Benson understands the state is in poor financial shape, he said. "But the state's current economic crisis ought to be the catalyst for improvement in higher education. I don't think we've got it right yet in South Carolina," he said.

Benson points to the examples set by North Carolina and Georgia. Both have made financial and resource commitments to higher education, and it has paid off for them in better academic reputations and increased economic development.

Citadel President Lt. Gen. John Rosa also said he understands the state's financial predicament. But he noted his institution has endured a nearly 23 percent state budget cut, much higher than the state average of 17.7 percent.

"With those kinds of cuts, you look at the things that keep your college accredited and everything above that is at risk," he said.

He's not yet sure what the school will do if it faces more cuts next year.

One of the toughest things about the financial crisis, Rosa said, is that the school can't continue right now to improve certain programs. For instance, its signature leadership training program is still in place, but plans to continue to improve it and make it a model program have been curtailed for now.

The school is now operating at a "bare-bones minimum," Rosa said. "Later we'll add back the muscle."

State college and university leaders say they can't fill the funding gap with private money, even though they have become quite good at fundraising over the past several years.

Donors don't give money for the college's core academic programs, which are covered by state money and tuition, Benson said. "Fundraising is supposed to be for the margin of excellence," he said. "Donors are not receptive to giving money for paper clips."

University of South Carolina President Harris Pastides said "the cuts came at a time when USC was beginning to fulfill its true potential for the people of South Carolina."

University leaders said they can't estimate how much tuition will increase next year until they know how much money they will get from the state. They said they want to be sensitive to students and their families, who also are struggling financially. But most said they are opposed to the Legislature placing a cap on tuition increases.

Pastides said the amount of money USC will get from the state for next year is "the next big what-if." If cuts are large or profound, "the university will take on a different shape for the future." It will be "leaner and less comprehensive and less able to provide the full service to our students that we think a flagship (university) should provide."

Rosa said college and university leaders statewide are meeting to develop a plan to ask the Legislature to allow them to break free from some of the state's bureaucracy so they can be more efficient during economically trying times.

Barker said the schools hope to have fewer restrictions in areas such as hiring and construction. Right now, he said, universities have to abide by cumbersome state regulations for new construction even if a new building is being 100 percent financed with private money.

He said the higher education leaders will develop a plan, then likely will find supportive state legislators to file a bill and champion the cause.

Pastides said "regulatory relief" is a good idea and will help the schools. But he warned that it can't make up for reduced funding.

Barker agreed but said it's at least a small step to help the state's schools during a very difficult time. "Don't cut our budgets, then tie our hands," he said.

STATE FUNDING

Percent change in state money for higher education from the 2007-08 school year to the 2008-09 school year:

The biggest losers

South Carolina ••• -17.7 percent

Alabama ••• -10.5 percent

Florida ••• -8.8 percent

Rhode Island ••• -7.2 percent

Tennessee ••• -6.7 percent

The biggest winners

Wyoming ••• 10.9 percent

Hawaii ••• 10.6 percent

Missouri ••• 9.8 percent

Ohio ••• 9.3 percent

(tie) Colorado, Oregon ••• 8.8 percent

Source:Center for the Study of Education Policy at Illinois State University

Reach Diane Knich at 937-5491 or dknich@postandcourier.com.

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