Cone Ballroom, Elliott University Center
Tuesday, Nov. 18, 2008
Posted 11-18-08
Chancellor Linda P. Brady
GREENSBORO, NC –I am excited to be here with you today and to welcome you to campus. As you know, this is my first semester on the UNCG campus; it has been a busy, busy first few months. I am so pleased to see many new friends in this audience – friends who demonstrate the strong relationship that exists between this university and this community.
The very fact that we have all come together here this morning is indication there are good things to come for Greensboro, the Triad, and the state of North Carolina. We share a commitment to developing human potential, fostering innovation, and improving quality of life – for individuals and our communities. As long as we remain committed to collaborating with one another and working toward solutions-based partnerships, we can take steps that address the impact of this economic downturn and its social consequences on our region and state and together foster hope, achievement and productivity.
I want to thank Bill Amelio (president and CEO of Lenovo) for his remarks. He spoke to the importance of establishing, indeed restoring trust with our stakeholders – a challenge for universities as well as for the business community.
At the Business Summits of 2006 and 2007, Chancellor Sullivan and other faculty and staff gave an overview of the working relationship and collaborative partnerships between UNCG and the business community. As we gather together this year, we find ourselves in much different, more challenging times. I want to start a conversation today specifically about the economy’s effect on our community in hopes that our conversation will continue in the coming weeks and months so that we can find ways to help ourselves and this community weather the storm and enable us to think more creatively about how we engage our missions.
During the past few months our economic climate has changed dramatically. And it’s nearly impossible to predict what might happen next.
I feel for our neighbors in the Triad, for the people who’ve been laid off and are searching for employment. One of my colleagues told me the other day that she had received about 150 applications for a position she is trying to fill – one that is essential to the delivery of services to the public. Many of the applicants for this job had been laid off in recent weeks.
I am sure everyone in this room knows of someone who was recently let go. And perhaps you’ve had the unenviable task of delivering the unfortunate news to one of your employees. I understand that as leaders within your respective organizations, each of you is facing difficult decisions relative to your workforce and the future of your businesses. I know you are probably grappling with how you can continue to move your business forward, working toward your goals, while dealing with the reality of the most serious economic crisis of this generation.
Playing Field has Changed
The playing field has changed for you in the business community. The stakes seem higher; your responses to these challenges seem ever more critical. UNCG is in much the same position. We understand what you are experiencing and dealing with for we, too, are facing many challenges as well. We are a university, yes. We’re not a corporation. But the BUSINESS of higher education has us seeking to address some of the very same issues you face.
All of us across America – businesses, educational institutions, communities and individuals – all of us find ourselves in a place in which we need to redefine how to thrive in an age of scarcity. In a recent column, Tom Friedman said it well: “It’s time to move from nation-building in Iraq to nation-building in America.”
A recent article in the Wall Street Journal noted that three quarters of the states are anticipating economic hardships for 2009 or 2010 and at least 20 states have already made cuts to public university budgets. UNCG has been treated very well by the General Assembly over the past several years, but North Carolina, unfortunately, is not immune to the fiscal challenges facing our country.
On a budget of approximately $327 million, the state appropriated funds in support of that budget total $169 million. We’ve experienced first a 1 percent budget cut, amounting to about $1.7 million. And now an additional 4 percent cut, bringing total cuts so far this fiscal year to about $8.5 million. This may not be the last of budget cuts mandated by the Governor.
In addition, capital construction has been frozen, and we have been told not to expect any funds for facilities repairs or renovations in the current fiscal year.
The Business of Higher Education
I would like to talk for a few minutes about the business of higher education institutions and some of the challenges that focus our daily conversations and now inspire our strategic planning.
First, affordability is an issue that UNCG takes very seriously. Even before the economic crisis hit, students and their families across the nation were asking themselves some tough questions as tuition rates at most institutions skyrocketed. “Should I go to the university I can afford and walk away with little to no debt? Or should I attend the university that will allow me to follow my dreams no matter what the cost? How will I make ends meet? Should I work part-time or full-time while I pursue my degree? How much loan debt will I be able to reasonably pay off in the years – or decades – after college?”
These are concerns that should not overshadow a student’s enthusiasm and determination. Making sacrifices in the process of advancing oneself can be a source of pride. But deferring a dream indefinitely is a risk that we cannot afford for this next generation and this society to take. Across campus, we are working to identify how UNCG can help.
Nationally, tuition and fees at four-year public schools rose 76.3 percent in the last eight years. During this same period, UNCG’s tuition increases have been less dramatic. In fact, last year UNCG’s in-state tuition was 34.9 percent LESS than the national average for in-state tuition and fees at public universities. And among public universities in North Carolina, UNCG remains very competitive.
But while we are generally known as an affordable university, our students, by and large, still struggle to afford tuition. On the whole, UNCG students are self-disciplined multi-taskers who pay for their education through a combination of loans and part-time, full-time or work-study employment. 41 percent do not receive financial support from a family member and are, therefore, mostly or entirely responsible for managing the cost of tuition and fees. That’s why nearly 72 percent of UNCG students work at least one job.
We have yet to see the short and long-term effect of what the recent credit crunch will bring. But we know loans will be harder to find. It’s quite concerning to me that while UNCG awards millions of dollars each year through scholarships and financial aid, the university still faces an annual gap of $31 million in unmet need.
More than half of our student body has documented need and 6,200 of those students go without the financial support for which they qualify. At the same time that all of this is going on, there is great pressure to raise tuition.
This week UNCG’s Board of Trustees will consider a proposal for an increase in tuition and fees for the 2009-10 academic year. The proposed increase will enable UNCG to support instruction, retain our top faculty, and provide additional financial aid to our neediest students. While we recognize the challenges an increase in the price of education will pose for many students, we are committed to serving them and to providing the quality education they demand.
Look at the factors behind the cost of tuition. Rising cost of all kinds of goods from water and electricity to light bulbs and paper. Increasing competition for excellent faculty. A growing demand by students and faculty to have the facilities, equipment and resources that define the modern day college campus. When these factors intersect with serious budget cuts, a modest increase in tuition and fees is required to sustain quality educational programs.
Rising costs and the need to cut budgets in a competitive environment…does any of this sound familiar to you? I am sure it does. We understand what you are facing.
Just like the mission that drives your business, our commitment goes on. UNCG has a “Students First” promise to recruit, retain and reward the most deserving students. To open not just doors, but worlds of opportunity. And to provide the ongoing support to sustain students’ dreams from their first year to their graduation day.
Accessibility for Students
Another challenge in the business of higher education is accessibility. The Census Bureau’s 2004 American Community Survey gives us insight into the socio-economic status of North Carolina children under the age of 18. It’s enlightening, especially given the challenges of affordability that I just shared. Here are a few statistics that we must consider as we work to increase access. 50 percent of non-Caucasian families earn less than $30,000 a year. 75 percent of Hispanic parents lack college experience. And 34 percent of all students’ families – no matter their ethnic background – do not own their own home.
UNCG wants to make it easier for families at poverty level to send their students to college. Currently, we are losing 27 percent of needy students between their freshman and sophomore years. In the final year of the Students First Campaign, the primary emphasis is on raising money for scholarships.
If more money is earmarked for need-based scholarships, the Office of Financial Aid can move forward with a program to grant two loan-free years to students at or below the poverty level. Think of what a difference this would make.
We also have proposed new programs in academic and student support services, at a cost of nearly $750,000, which have been included in the UNC expansion budget request approved last week by the UNC Board of Governors. If funded by the North Carolina General Assembly, these programs will provide needed advising and mentoring and freshman year programming designed to enhance UNCG’s retention and graduation rates. We are working to identify how UNCG can help.
Changing demographics present another challenge. "The full-time, traditional age, residential student with better-than-average academics and ability to pay full price will be the minority in the future." We will see more applications from older students, parents, people in mid-career, and students who may be struggling academically. This means that we must be more creative as we plan new academic programs so that they accommodate a variety of schedules, careers and life responsibilities. And we must partner with our school systems in helping better prepare younger students for college.
UNCG is identifying how we can help. Our Division of Continual Learning has received national honors for its distance learning programs and our iSchool Virtual Early College allows North Carolina high school juniors and seniors to get a no-cost jumpstart on college, thanks to the North Carolina Department of Instruction, which pays for tuition and books.
Turning to Higher Education
History shows that when tough economic times hit and unemployment is on the rise, people tend to turn to higher education. They want to hone their skills and knowledge and retool in preparation for their next career move. We anticipate seeing more of these kinds of students in the near future, and we will be ready for them with the academic programs and services they need to position themselves for success. These could very well be the same people you will hire in the future. We recognize that it is incredibly important that despite diminishing budgets, we continue to serve the people of our community and state. It’s important to them and it’s important to you.
UNCG also faces pressure to expand capacity in graduate education. There is always a spike in graduate enrollment, and particularly in masters programs, in difficult economic times. Also, let’s look at what Debra Stewart, President of the Council of Graduate Schools in Washington, DC, says about the importance of graduate education in America. Quote, "It is in graduate education that we develop the intellectual talent, those who can then create the technological breakthroughs that will improve the quality of life in the U.S. and around the world.”
Dr. Stewart goes on to say that other nations are competing aggressively for students who have historically come to the United States for their graduate education. Countries like China and India, which have traditionally sent the most graduate students to the U.S., are now making huge investments in higher education to develop their own domestic talent pool. Stewart says, “To neglect to make a similar investment in our own graduate education, at this very moment, would be a huge mistake, one which I think would put America at great risk."
UNCG is identifying how we can help. At the graduate level, we offer 64 masters, 24 doctoral and 34 certificate programs in a variety of important fields that address the needs of society. In the last six years, UNCG has established more PhD programs than any other institution in the UNC System. Currently, the university offers doctoral programs in fields like Medicinal Biochemistry, Nanosciences, Information Systems and Operations Management, Geography and we are currently exploring the feasibility of a School of Pharmacy.
Economic Realities
The last higher education “business” challenge I would like to share with you brings us back to our current economic climate. Many faculty members are looking at the performance of their 401K plans and deciding to postpone retirement. While this means we will continue to have an experienced faculty, it also impacts our ability to hire the next generation of scholars and researchers.
Raising private dollars is as important as it ever was, but the university is very realistic about how difficult this is to do when all spectrums of society are experiencing the economic pinch.
Yet we will continue to engage our alumni and loyal friends, to stay in close touch with them so that they are informed of all that we are doing as a university. While we may need to adjust our fundraising goals over the short term, we cannot lessen our communication and involvement with our many friends and supporters.
The current economy also affects our ability to assume debt for future construction. Through the passage of the higher education bonds in 2000, every campus in UNC System has gone through a construction boom. But those projects are completed now and credit for construction has dried up. The same month that UNCG announced that we are planning an academic classroom building for the School of Education in the parking lot adjacent to the Bryan School, we announced that the building is on hold, pending a decision of the Council of State. As with everything, there is a ripple effect. When you think about the hundreds of people we employed during our other construction projects, the credit crunch will mean fewer jobs in this community at a time in which we need people working, paying taxes, and buying goods and services.
Hard decisions also have to be made by the university investment committee regarding our endowment. Do we increase the payout rate to make up for state budget cuts… or do we decrease it to protect the endowment's value? We know that the decisions we make now will have an impact on our future so we are weighing them carefully.
And finally, because there is more competition for less external research funding, we are exploring how we can increase our ability to attract already limited research dollars. Because so much of our research is dedicated to increasing the long-term economic well-being and quality of life of our citizens, we must be steadfast in our intention to continue to grow our research enterprise.
After hearing the multitude of issues UNCG is managing, I hope you agree with me when I say, "We get what you are facing in today's climate of economic uncertainty."
What do successful leaders do when they face with these types of challenges? I ask, "How can we be responsive to this changing climate?"
I take comfort in knowing that UNCG is ahead of the game. Just two and one half years ago, right here on this campus at his inauguration, President Erskine Bowles warned of the coming economic tsunami. That is precisely what we are facing today.
President Bowles didn't wait for it to hit. He was proactive. UNC Tomorrow is our response to these difficult times. We are ahead of the curve because we have been addressing a majority of the issues I raised a few minutes ago. While colleges and universities throughout the nation are reacting to these trying times, we already have a game plan.
UNC Tomorrow will change the culture of higher education in North Carolina. We will be more responsive than ever, specifically in support of economic transformation, community development, outreach, and global readiness. We will more responsive than ever in increasing access, advancing our competitiveness and helping students develop the 21st century skills they’ll need.
How UNCG Will Help
Faculty WILL engage in more interdisciplinary research. We WILL review the tenure and promotion process to ensure that we value and reward faculty involvement in community problem solving as we have rewarded faculty scholarly publications.
We WON'T make across-the-board budget cuts. We WILL fund growth in strategic areas and create the kinds of programs that our community and state need. That is why we intend to create a new Vice Chancellor for Research and Economic Development, someone who can walk the halls of Washington agencies as easily as the academic halls of this campus. Given the current economic climate, we have decided to postpone that search until spring, but I feel very strongly that we must establish this important position very soon.
We WILL continue to grow our relationship with North Carolina A&T State University. There is good progress being made at the two 75-acre campuses of Gateway University Research Park. With our collaboration with A&T, we are attracting and retaining educational, corporate and community agencies that advance scientific and educational research. I am especially excited about the Joint School of Nanoscience and Nanoengineering. In addition to working toward offering masters and PhD programs in the nanosciences, this school will include a technology outreach program intended to enhance science and technology education in the Triad’s schools.
In June, we hired a founding dean, James Ryan, who comes from the University of Albany where he was a professor and administrator at one of the world’s leading colleges of nanotechnology. Ryan is a researcher with 47 U.S. patents. His credentials are simply outstanding. Fifteen other faculty and administrators will be hired for the Joint School in the next year or so, and we plan to admit the first graduate students in nanoscience in the Fall of 2009. I believe the Joint School will enable us to lead the way as we help grow and steer the knowledge economy of the 21st century.
We WILL emphasize the importance of technology transfer. Since the inception of the Office of Technology Transfer 6 years ago, OTT has accepted and assessed 106 innovations disclosed by UNCG faculty, staff, and students; it has filed for 27 patents; entered into license agreements covering innovations in biotechnology, nanotechnology, and information technology; and UNCG has spun out 9 companies (6 of which have direct UNCG faculty participation.) I have made a serious commitment to enhance our activity in this area.
We WILL answer the demand for better teachers and more nurses. We’re improving math and science education and we are recruiting more educators in these fields. We have an office within the School of Education that is dedicated to addressing the critical teacher shortage by visiting middle and high school students as well as meeting with UNCG students who have not yet declared a major. We are partnered with Wachovia on a teacher mentoring program to help teachers stay in the field. The Nursing program is very focused on producing not just more nurses, but more nurse educators. And they are out in the community in partnership with the Greensboro Housing Authority, visiting senior citizens in their own homes and tending to their physical and personal well-being.
We WILL redefine what it means to be a student-centered, public research institution. Growing one does not have to be at the expense of the other. I believe we can do both and do them both well. We can be a leader in research and in offering an exceptional student experience.
There is Much To Do
There is much to do, but we are well on our way. Our strategic planning committee is in the process of seeking feedback on a proposed new vision statement and mission for UNCG. Our future direction is grounded in a set of values we hold dear: transparency, inclusiveness, collaboration, sustainability, and responsibility. These are the values that will deliberately guide our work going forward.
I am proud of the steps our community has taken together, for we cannot have a global impact without the kind of regional partnerships in which we are engaged. I encourage us to keep the conversation going and look for more ways to leverage each other’s strengths.
I know UNCG and you, as members of our business community, will not only survive these extremely difficult times, but will grow and fulfill our new vision. In the months since my arrival I have often said to campus audiences and alumni and friends of UNCG: “There is nothing we cannot accomplish together in support of this great university.” Today I say to you, “There is nothing we cannot accomplish together in support of this great community.”
Let our challenges help us to be more responsible, creative and steadfast in our commitment to developing solutions. Both education and business sectors have a responsibility to the community in which we live to help make things better. And ultimately that is why we are all here today…to partner in doing so.
