THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Monday, January 8, 1996 TAG: 9601060178
SECTION: BUSINESS WEEKLY PAGE: 04 EDITION: FINAL
TYPE: Forum
SOURCE: BY MARTHA S. McCLEES, SPECIAL TO BUSINESS WEEKLY
LENGTH: Medium: 85 lines
In a political atmosphere where businesses continue to look to government to cut expenses and ``trim the fat'', it may appear incongruent that there is a coordinated, statewide effort by corporate leaders to increase state funding for colleges and universities.
What makes higher education the apparent exception?
Businesses' stake in assuring that the Commonwealth maintains its investment in higher education is both diverse and well founded. Industry knows that a well-trained work force is central to any economic development effort.
This has been most recently demonstrated in the announcement that Motorola will be building a semiconductor manufacturing plant near Richmond. Why did Virginia beat the competition in attracting this prestigious company?
The state made a commitment to start an engineering school at Virginia Commonwealth University that will specialize in computer chips.
It is not just high tech firms like Motorola but all types of businesses that must rely on our colleges and universities to educate tomorrow's employees and retrain today's workforce in the newest technologies.
Many businesses must also depend on these institutions to provide the advanced research capabilities that allow for the development and perfecting of new manufacturing products and techniques.
Old Dominion University, for instance, has been instrumental in keeping our ship repair industry alive in Hampton Roads. The university along with Virginia's Center for Innovative Technology, the city of Norfolk, and the South Tidewater Association of Ship Repairers formed the Center for Advanced Ship Repair and Maintenance.
Under this umbrella organization new technologies are developed that reduce the cost of various ship repairs, giving local yards a competitive edge in the global marketplace.
Are you familiar with InfiNet? if you are accessing the internet system, it is likely you are, InfiNet, a Norfolk-based firm, will serve as the local gateway to the Internet in 100 different cities by the end of 1996. It got its start in 1993 with guidance from ODU's Entrepreneurial Center.
The center was instrumental in developing InfiNet's comprehensive business plan. That plan has worked and today InfiNet employs 60 and is growing rapidly.
Colleges and universities across the state are engaged in similar activities and our local economies reap the benefits.
In 1994-96, almost $600 million in research funding was awarded to Virginia's colleges and universities, creating hundreds of jobs and strengthening regional economies. Small business development centers, entrepreneurial centers, and specialized training programs are all closely affiliated with state colleges and universities and are creating and saving jobs in every region of the state.
Despite its obvious significance, Virginia's funding for higher education, adjusted for inflation, has fallen 23 percent since 1990.
During that same period, student enrollment has grown by 10,200. As a direct result, Virginia's national ranking in per student funding support has dropped form 28th to 42nd.
The consequences of these funding reductions have been severe and pervasive.
Virginia's schools are being forced to cut or eliminate needed programs and courses. Average tuition has reached $3,773 while students nationally pay an average of only $2,235.
Seasoned faculty have been lost to distant institutions able to pay more competitive salaries. According to a report released by ODU in May of 1995, over 40 faculty members recently had left the university for positions with higher salaries at other institutions or declined a position at ODU because the salary level was too low.
The Hampton Roads Chamber of Commerce along with business leaders and coalitions from across the state know that investments in our institutions of higher learning will pay dividends unmatched by most any other comparable investment government can make.
They are calling on Governor Allen and the Virginia General Assembly to protect this resource and restore competitive funding. One goal: bring the state to 26th place in funding per student from the current 42nd place.
While this could cost as much as $200 million per year, the dividends will be reaped by business and citizens alike. MEMO: Martha S. McClees is vice president for governmental affairs at the
Hampton Roads Chamber of Commerce.
by CNB