Support for the University of Wisconsin

The University of Wisconsin is a world-class university, but we need to do a better job of assuring that it continues to be a world-class institution. We need to find a way to provide the additional funding that is necessary to attract and retain talented members
of the faculty, to educate our students, and to conduct ground-breaking research.

I believe we need to give the funding of higher education a higher priority, in part because the University is an engine for economic growth, both for the State as a whole, and for the Madison area. If we want to have a strong economy, we have to help the University increase the supply of college educated workers, and conduct the important research that will lead to the creation of new and better-paying jobs. In my view, this is the best prescription for creating more jobs, higher per capita incomes, and a broader tax base that will help to support the public services that benefit us all.

Academic research and development is already a $1.1 billion industry in our State. It is providing more than 38,000 jobs.

Companies that are located in the UW-Madison Research Park employ nearly 4,000 people with an average salary of about $62,000. That is nearly twice the average per capita income in the State of Wisconsin.

In this context, we need to keep in mind that Wisconsin lost 180,000 jobs during the current recession, including one-eighth of our manufacturing jobs, and one-fifth of our construction jobs. Many of the manufacturing jobs are not going to come back. If we are going to attract the investments that will be necessary to create new jobs, our State needs to create a larger pool of college graduates, with the qualifications that these new jobs will require.

The need for additional funding is evident in a number of
important financial trends. First, the State of Wisconsin used to provide funding for 46 percent of the University’s budget. However, during the past thirty years, the level of State support has been reduced to less than 24 percent of the money that the University spends.

Second, a recent report found that UW salaries are now between 8 and 24 percent lower than the salaries at peer universities, depending on the school and job title. This finding is consistent with the results of a number of earlier reports.

This competitive disparity has been exacerbated by the current recession and the desperate fiscal outlook of the State. The UW faculty and academic staff have been denied 2 percent raises that were previously approved. In addition, they have been placed on furloughs that have had the effect of cutting their existing pay by about 3 percent.

According to one report, Wisconsin now ranks 34th among the states in the per capita funding of higher education. We cannot remain competitive, and maintain a world class university, if we do not address and reverse these trends.

"Despite this reality, Governor Doyle has directed the University to prepare its budget requests for 2011-2013 on the basis of just two alternatives. He is asking for budget proposals that assume either no growth in state funding during the next biennium, or worse yet, a 10 percent reduction in state funding in addition to the 9.2 percent reduction that was sustained in the current biennium."

I believe we need to increase the percentage that the State contributes to the University budget. We should start by restoring the 2 percent pay increase that was supposed to take effect in June of 2009 in June of 2011, and by eliminating furloughs in the next biennium. The Legislature should also fund University proposals to stimulate economic development through higher college enrollments and expanded scientific research.

At the present time, only 26 percent of Wisconsin adults have a four-year college degree. That is less than the national average. In fact, in 2008, Wisconsin was ranked 29th in the nation in the percentage of adults who hold a four year college degree. This low ranking could be part of the reason that Wisconsin is having difficulty in recovering from the current recession.

The need to increase the number of college graduates is demonstrated by the fact that, if the average per capita income in Wisconsin was equal to that of Minnesota, our residents would take home about $29 billion in additional earnings each year. Such a boost in the average per capita income would mean a substantial increase in income tax revenues, and would go a long way toward fixing the projected budget deficits that our State is facing.

Finally, if we want to increase the number of college graduates, I believe we need to assure that every student with the ability and the desire to obtain a college degree has an opportunity to do so. This means, among other things, that we should work toward imposing a moratorium on further tuition hikes.

Tuition at the UW-Madison has been increased by 5.5 percent in each of the past two years. Over the past twenty years, tuition and mandatory fees have more than quadrupled from $2,004 to a total of nearly $9,000. In contrast, while the State provided 64 percent of the cost of educating each student ten years ago, it now provides only 40% of that cost.

Meanwhile, the total cost for an in-state student to attend the UW-Madison has increased during the past twenty years, from less than $7,000 a year to a total of more than $20,000. It now costs more than $80,000 to earn a degree at the UW-Madison, assuming that one can finish a degree program in four years.

We must do better. We must make support of the University of Wisconsin a higher priority if it is to remain a world class university that can serve as an engine of economic growth for our State.

Authorized and paid for Wade for Assembly,
Marilyn Townsend, Treasurer