Summary of October 18 Listening Session

Held on October 18, 2004
Tamarack Room
Davies Center
UW-Eau Claire
Eau Claire, Wisconsin
4:00-6:30 p.m.

Regent President Toby Marcovich presiding

Regents who attended the session were Regent President Toby Marcovich, Regent Vice President David Walsh, Regent Mark Bradley, and Regent Guy Gottschalk.

The purpose of the session was to hear public comments on challenges facing the UW in three areas:

• Affordability of a UW education
• Recruitment and retention of top quality faculty, staff and academic leaders
• The role of UW campuses in driving the state’s economy.

Twenty-seven persons presented oral remarks and two provided written remarks. Representative Rob Kreibich joined the session and made some concluding remarks.

Colleen Bates, a member of the Eau Claire County Board, commented that public universities should belong to all the people but that high tuition costs are causing low-income students and people of color to be left behind. This will harm the state in the years ahead.

John Kaiser, an Eau Claire attorney, commented that many families can afford higher tuition and that, for those people, the UW is too good a bargain. He suggested that tuition be raised to the average of peer institutions and that some of that money be used to fund financial aid for those who cannot afford the tuition. For those who would not qualify for need-based aid, but still cannot afford the higher tuition, he suggested making available loans, some part of which would be forgiven for every year that the borrower stays and works in Wisconsin following graduation.

Karl Zimmerman, Marshfield businessman, member of the Wood County Board, and President of the UW-Marshfield Foundation, commented on the need to keep a UW education affordable and to stop the drastic cuts in state support for the university.

Nick Clippert, member of the UW-River Falls Student Senate, urged that for every increase in tuition, there be a corresponding increase in financial aid. He noted that the high cost of education is especially hard on nontraditional students who have families to support and that middle-class students are squeezed financially because they often do not qualify for need-based aid but still cannot afford to pay the higher tuition levels.

Chad Wade, Vice President of the UW-Eau Claire Student Government, commented that students are priced out of an education when tuition goes up more than financial aid. He also pointed out that students are forced to work more hours by the higher costs, decreasing the amount of time that can be spent studying and experiencing other college activities. He noted that he will have $20,000 in debt upon graduation.

Meredith Marx, UW-Eau Claire Student Senator, commented that students should not bear the burden of faculty costs. While students would accept a slight tuition increase, they do not want to pay more for less.

Avril Flaten, UW-Eau Claire Student Senator, pointed out that many parents who used to be able to pay their children’s tuition can no longer afford the much steeper costs. Therefore, students must work more hours, both during the summer and the school year to try to make ends meet. As one of those students, she noted that her grades had suffered from having less time to spend studying. While she did not want to go into debt, she thought that she might have to do that in order to stay in school.

Shawn Peter, of the UW-Stout Student Association, stated that he would favor a cap on tuition and increased funding for the university.

Charlie Grossklaus, owner of the Royal Credit Union in Eau Claire, commented that Chancellor Mash has developed an valuable presence in the community, which he witnessed first-hand as Chair of the Chamber of Commerce. As a businessman, he is knowledgeable about the need to reward top staff in order to keep them. In addition, he offers his executive staff deferred compensation, something that the university is unable to do. He also observed that it is less expensive to compensate appropriately than to pay turn-over costs.

Trudy Popenhagen, Community Service Manager for XCel Energy, and member of a UW-River Falls advisory committee, commented that it is of critical importance to pay what is needed to attract and keep the best faculty, staff and leaders. The ability to do so has been impeded both by budget cuts and by the increasingly high cost of living in western Wisconsin due to proximity to the Twin Cities. She pointed out that salaries for faculty at the comprehensive campuses are more than 9% behind their peers and academic staff salaries lag their peers by more than 17%. As examples of the kinds of problems that have been experienced, she noted that several recent searches have had only one or two candidates – or even none. In one case, a position was offered to a high school teacher who would have had to take a pay cut to accept it – he didn’t. In another case, a rising faculty star in agriculture at UW-River Falls couldn’t afford to buy a house for his family. He left to take a job with USDA. In response to a question from the regent panel, she indicated that her company offers domestic partner health insurance benefits.

Randall Linton, President and CEO of Luther Health Systems, the largest employer in the Chippewa Valley, spoke about recruitment of staff on the national level and retention of those staff. In order to be successful, he pointed out, recruitment and retention of the best people must be made a priority and adequate resources must be allocated. His organization had found that top-quality potential hires look for the following: 1) They want to join a well-respected organization; 2) they expect high-quality colleagues; 3) they expect competitive salaries and benefits; use of national comparisons is very important in determining what level of compensation and benefits is competitive; 4) They want high quality schools, child care, and health care; and 5) they value life-long learning.

Emilie Rabbit, of the UW-Eau Claire LGBT Student Organization, commented that lack of domestic partner benefits and a proposed constitutional amendment against same-sex marriages would harm the university’s efforts to recruit faculty and staff.

Rick Richmond, of UW-Eau Claire, spoke on behalf of the Association of UW Professionals in support of the right to choose collective bargaining for faculty and staff, noting that most neighboring states give these employees the right to choose. He also expressed support for domestic partner benefits.

Sheri Klein, a UW-Stout faculty member and secretary of the Association of UW Professionals, expressed concern about salaries that continue to fall behind similar institutions by as much as $10,000. She called for raises based on the cost of living and national averages. She also expressed concern about requiring payment of a portion of health care premiums causing many to have to take on second jobs. Another problem, she commented, is replacement of faculty with academic staff, which has an adverse impact on such areas as student advising. She suggested the right to collective bargaining as a partial solution.

Bobby Pitts, of the UW-Eau Claire faculty, commented on recruitment problems caused by budget cuts, noting that inability to fill positions harms student access. At the level of professor, he said that UW salaries are $8,000 below peer universities, and are falling even further behind. Stating that the board needs to do better for faculty and staff, he noted that he lives modestly, wears second-hand clothes and drives a used car.

Jean Wilcox, a UW-Eau Claire career counselor, commented that academic staff salaries are more than 17% below their peers, even farther behind than faculty. Their salaries are 19% behind peers in the Eau Claire public schools and 33% behind their peers in the area Technical College. These peers, she pointed out, are people of similar qualifications and experience. Noting that retention in the career counseling area has suffered, she said that three counselors have left in five years for higher paying jobs, adversely affecting the ability to offer this important service to students.

Tom Miller, Chair of the UW-Eau Claire History Department spoke of the problem of faculty retention, giving the example of a faculty seeing new people hired at higher salaries than those being paid to current faculty because of lack of increases over the years. Noting that faculty have a heavy workload, with lots of student writing required, he said that faculty often leave for as much as $7,000 more in salary and lighter teaching loads. Noting that the History Department has been top-flight, bringing $2.2 million grants in four years, he stated that help is needed in order to maintain that level of quality.

Larry Glenn, of the UW-Eau Claire academic staff, spoke in support of collective bargaining as a means of seeking improved compensation.

Julie Derks, a UW-Stout student, spoke about recruitment and retention of faculty and staff, noting that problems in this area have resulted in students not being able to get into classes and in classes not being offered as frequently as needed. She commented that health insurance benefits for all are needed and that an amendment against same-sex marriage would only make recruitment and retention more difficult.

Nick Clippert, of the UW-River Falls Student Senate, commented that lack of competitive salaries for faculty and staff harms students. As an example, he noted that the Philosophy Department may be eliminated because of inability to recruit faculty.

Bradley Stafford, President of the Stout Student Association, spoke of the value of career services in developing student relationships with employers through internships and job-shadowing. He pointed out that more staff are needed to serve students in this area.

Chad Wade, President of the UW-Eau Claire Student Association, commented on the importance to students of competitive faculty and staff compensation. In response to a question by Regent Walsh, he said that students would support a slight tuition increase in order to help with this problem. He also indicated that an amendment against same-sex marriage would make it even more difficult to hire faculty and staff.

Meredith Marx, Vice President of the UW-Eau Claire Student Association, agreed that students would support a small tuition increase but commented that the burden of faculty costs should not be put on the shoulders of students. She added that students do not want to pay more for less.

Shawn Peters, a UW-Stout student, commented that inadequate funding for faculty has resulted in classes being cut. 50% of students responding to a poll indicated that there were classes that they were unable to take, resulting in some students not being able to graduate on time. He favored a tuition cap along with increased state funding for the UW.

Darcy Fields, a retired Eau Claire business owner made the point that the university is the key to the city’s economic future. He felt that budget cutting has gone too far and is jeopardizing the future by cutting into the muscle of the university and, therefore, the city and region.

William Rubin, of the St. Croix Economic Development Corporation, commented that UW campuses are critical in driving the economy of the region. In that regard, he noted that Chancellor Lydecker had been instrumental in obtaining Technology Zone status for the I-94 corridor so that tax credits could be offered. He pointed out the St. Croix County is ranked 91st of the 100 fastest growing counties in the country and is the only county with this status in Wisconsin. The area also is the fastest growing metropolitan area in the state. Stating that UW-River Falls, UW-Stout, and UW-Eau Claire are well-positioned to help drive the economy, he mentioned as examples university involvement with the St. Croix Valley Regional Tourism Alliance and the St. Croix Economic Development Corporation, the assistance offered by Small Business Development Centers, and business incubator analysis that had resulted in development of two new high tech businesses in the area.

Tom Still, President of the Wisconsin Technology Council spoke about the council’s recent report, “The Value of Academic Research and Development.” In 2002, academic research and development totaled $883 million, including $696 million in the UW System, and was responsible for 31,000 jobs in Wisconsin. The report indicated that Wisconsin ranks 15th in attracting federal research and development funding, which grew even in hard times, with the UW adding $57 million in the last year. This funding, the report pointed out, could be at risk unless state support increases because research and development funding tends to go to states with well-equipped laboratories and well-compensated researchers. In that regard, he pointed that the UW ranked third in 1995 but slipped to 6th in 2002. In addition, the number of faculty, courses and labs are down, at the same time the number of students is increasing.

The report recommends: 1) that the state begin restoring support for the UW; 2) that investment be made in projects to attract research and development; 3) that a fund be created to connect researchers more closely to the private sector; and 4) that the UW, the Marshfield Clinic and the Medical College of Wisconsin work more closely together. In conclusion, he pointed out that academic research and development is big business in Wisconsin, ranking with plastics and forest products, and that investment is needed to keep this growth engine strong.

In response to a question by Regent Walsh, Mr. Still noted that more faculty are getting and accepting outside offers. While UW-Madison could withstand this problem initially because of its high ranking in R&D funding, another biennium like the last one could hurt because other states will see more opportunities to take away Wisconsin’s best researchers.

Gus Myron, of Phillips Plastics, in Menomonie, spoke of the value of UW-Stout graduates to his business. He expressed concern that reductions in funding would result in elimination of programs and specific courses that prepare graduates to hit the ground running in businesses such as his. Graduates that he hires from the local area tend to stay, while those hired from elsewhere are more likely to move on after a short time. He also was concerned that continual budget cuts would result in universities being less willing to innovate and take risks in areas that benefit business. He pointed out that the Stout Technology Park is a good example of what the UW can do to drive the economy, and he urged reinvestment by the state in the university.

Linda Clark, Community and Economic Services Manager of XCEL Energy, commented that her company looks to local businesses for supplies and markets, as well as to the Twin Cities area. Entrepreneurial companies that boost the economy, such as Phillips Plastics and Cray Computers, locate in this area, she pointed out, in part because of the programs offered by UW-Eau Claire, UW-Stout and UW-River Falls. As programs that are valuable to the economy, she cited the examples of the UW-Stout Technology Transfer Institute and the UW-Eau Claire Materials Science Center. For the state to grow out of its deficit, she suggested that what is needed are: 1) affordable education for all students; 2) access to advanced degrees for workers; and 3) R&D and technology transfer grants to institutions outside of Madison.

Jim Schuh, of Chippewa Falls Main Street, Inc., commented on how economic development in the area has benefited from the UW, noting that his organization benefits from university interns, assistance from the Small Business Development Center, and from advice from UW-Extension agents.

James Hanke, land use planner for the City of Chippewa Falls, remarked that he works with the university on at least a weekly basis. For example, he uses a market analysis model provided by UW-Extension and has received assistance from university interns. In addition, the UW-Eau Claire and UW-Stout chancellors hosted a session for potential Angel Investors, and they consistently work with communities in initiatives aimed at entrepreneurial growth. He also noted the valuable assistance provided by the Small Business Development Centers. Noting that universities play a critical role in economic growth, he expressed concern that loss of state funding would tend to reduce the universities to their core mission and force them to cut back on important economic development activities. He suggested replication of the university research park model in the area and that access be found to equity for business investment.

Chad Wade, President of the UW-Eau Claire Student Association, commented that the UW and economic growth go hand in hand and that education is pivotal in retraining workers for the new economy. Noting that the UW educates fewer students now than 20 years ago, he asked how much better off the state might have been if those students had not been left behind.

David Miller, Director of Barron County Economic Development, submitted written comments about the importance of UW-Extension work in promoting economic growth. In that regard, the Extension community development agent had collaborated with his office in offering tax incremental financing seminars and had assisted the City of Rice Lake in its development efforts. He also took the lead in conducting a county labor market study and assessing the economic impact of new businesses. The Extension agricultural agent took the lead in the state’s Agricultural Development Zone program and provides expertise in economic development and marketing information and in activities important to agriculture.

State Representative Rob Kreibich noted that he has spoken to parents who see a trend of middle-income students being priced out of a university education. He stated that he would propose legislation to ban raiding of auxiliary reserves for financial aid funding and to keep financial aid linked to tuition increases. In order to reduce time to degree, he suggested four-year graduation guarantees and more collaboration to facilitate credit transfer.

He felt that post-secondary education must be made a higher priority for the state and that the goal should be for 33% of the population to have bachelor’s degrees. Noting that there is intense competition for state resources, he said that the UW will need to use tuition increases matched by financial aid, that there must be an ongoing effort to save money through efficiencies, and that students need to be graduated in a timely way.

Recognizing the great competition for state funds, Regent Walsh referred to student remarks that indicated a culture of not wanting to go into debt and expressed appreciation for Representative Kreibich’s comments about financial aid. Noting Mr. Still’s remarks that university research and development are the state’s economic driver, he expressed concern that this economic engine will be choked off if the funding problem is not solved.

Representative Kreibich suggested that more flexibility might be helpful, noting that the UW is one of the most regulated public universities, and that such measures as consortium purchasing show a promise of savings. He also commented that serving more part-time and non-traditional students is a priority.

Regent President Marcovich added that additional flexibility would help the university to better finance itself.

Regent Gottshcalk suggested that the regents’ study on Charting a New Course for the UW System be used as a base for such consideration