Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, September 25, 1993 TAG: 9309250073
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: MICHAEL STOWE and JIM STRATTON FOR THE ASSOCIATED PRESS
DATELINE: LENGTH: Medium
The admonitions from legislators closely follow marching orders issued by Gov. Douglas Wilder to college and university presidents to make changes or risk having the state do it for them.
The legislators' remarks are less confrontational than Wilder's, but the message is similar.
"They're going to have to make some changes," said Del. Alan Diamonstein, D-Newport News, a senior member of both the appropriations and education committees. "They recognize that the status quo is not acceptable."
"These colleges can take a hard look at their budgets," agreed Del. Robert Ball, a Richmond Democrat and chairman of the House Appropriations Committee. "And I guarantee you there is waste to cut."
College and university presidents have been ordered to draw up plans for coping with a 10 percent to 15 percent budget cut because revenue projections indicate the state may come up $500 million short. On Thursday, Wilder chided them for demanding an additional $223 million. Meanwhile, their priorities and spending habits have been questioned in a statewide newspaper series.
The presidents have tried to blunt the attacks by saying they have made changes and will continue to do so. They and some of the state's political analysts contend that politics has played a part in the college bashing as lawmakers and the governor search for ways to look fiscally tough.
But legislators and the governor maintain they've been telling colleges and universities for years to change. They say only now are the pleas being taken seriously.
"I don't think their budget will be cut 15 percent, but the way they're talking, they don't want to cut anything," Ball said.
"Higher education has a problem," said Del. Victor Thomas, D-Roanoke, a member of the House Appropriations Committee. "They've got to get their house in order and make sure every dollar counts . . . and some of them haven't shown that they are doing that."
Despite the tough talk, most legislators say they realize that schools can cut costs only so much. At some point, they said, the General Assembly and the governor need to think of ways to free up more money, or make better use of existing revenue.
For now, however, few appear ready to suggest a tax increase.
Thomas suggested that the state consider establishing a fund that would reward colleges that streamline operations and make better use of existing facilities.
Sen. Walter Stosch, R-Richmond, said privatization of some services may be one way to combat the projected budget shortfall. Some schools already have outside contracts for on-campus food services but Stosch recommends going further, saying it may save the state money to have a private company run and maintain college fleet vehicles.
"There are probably other college functions that could be done just as easily by private companies," said Stosch, chairman of a joint committee on privatization. "We have to be innovative."
At least one influential lawmaker is cautioning the General Assembly not to be too quick with the budget knife. Del. Richard Cranwell, D-Roanoke County, said the governor's predicted shortfall is exaggerated.
Cranwell, chairman of the House Finance Committee, said Wilder is underestimating economic growth in the next two years by at least 2 percent - enough to wipe out any deficit. In a letter to Virginia Tech President James McComas, Cranwell accused the governor of inflating the figures for political gain.
"It looks to me like the economy's turning the corner," Cranwell said this week. He said there are still ways colleges can cut spending but that lawmakers must be careful "not to bleed the patient to death."
The legislature's highest priority, Cranwell said, should be finding a way to hold down skyrocketing tuition prices. "I think we've all been aware," he said, "that we need to focus more on classroom instruction."
Michael Stowe is a reporter for the Roanoke Times & World-News; Jim Stratton is a reporter for the Daily Press in Newport News.
by CNB