Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, August 8, 1994 TAG: 9408080071
SECTION: VIRGINIA PAGE: C1 EDITION: METRO
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
Northern Virginia developer John T. ``Til'' Hazel Jr. said the Business-Higher Education Council's concern stems from a belief that higher education is the key to job creation and economic development.
``We're competing with neighboring states to attract and keep business, and we know investment in higher education is a significant factor,'' said Hazel, chairman of the council.
He said industrial prospects look for states that can supply well-educated workers and offer affordable tuition to employees with college-age children.
Hazel said that in the last four years, more than $400 million in state support has been cut from higher education. Colleges coped by raising tuition. Students at the state's four-year colleges now pay the second-highest tuition in the country.
``I don't think there's much way to go back to the students and say they have to pay even higher tuition,'' Hazel said. ``And we're assuming there won't be any tax increases in the immediate future. So we're looking at allocation of existing resources.''
The state's budget growth in recent years has been driven by Medicaid, public school and prison costs. Gov. George Allen has made abolishing parole a priority, and that could drive prison costs up even more.
``It's ironic and troublesome that we're focusing more cost allocation on criminal maintenance and incarceration than on students,'' Hazel said.
But he said he is encouraged that another Allen priority is economic development. One of Allen's campaign promises last fall was to create 125,000 jobs.
``It's clear we can't have job creation until we generate confidence in our education system,'' Hazel said. He believes the Allen administration and the General Assembly understand that and will lend a the council a sympathetic ear, he said.
John Casteen, president of the University of Virginia, agreed.
``There are groups of this kind that convene from time to time to work on all sorts of issues of interest to the state,'' he said. ``It's a mechanism that's pretty well understood and has a long and honorable history in this state.''
He added that Allen's ``understanding about the link between higher education and the state's general economic well-being is promising.''
Allen spokeswoman Melissa Herring noted that a government reform task force appointed by the governor is examining higher education, but she said he is open to recommendations from Hazel's group and others.
Sen. John Chichester, R-Fredericksburg, chairs a 17-member Commission on the Future of Higher Education established in the last General Assembly session. He said he welcomes the input of Hazel's group.
``Some of the finest business minds in Virginia are represented on that council,'' he said. ``It's hard to imagine that we would not be interested in their recommendations.''
Del. Alan Diamonstein, D-Newport News and chairman of the House Appropriations subcommittee that oversees college funding, said he also looks forward to hearing from the council. The organization includes more than 30 business leaders, the presidents of the state's 16 public colleges and the chancellor of the community college system.
``I'm delighted this group cares enough to get involved,'' he said. ``It will help get across the message that more money is needed.''
Squeezing more money out of a tight state budget is not the council's only goal. The business leaders also hope to show college presidents how to run their schools more efficiently.
``Business has been going through this kind of downsizing periodically for years, so they have a lot of expertise to offer,'' said former state budget director Karen Washabau, who was hired to conduct research for the council.
Said Hazel: ``We find there is a consistent concern, whether talking to business people or the general public, that higher education be efficient and cost-conscious.''
by CNB