<p>Several factors will decide this question:
1. Money-This goes to the combination of endowment per capita (and additional consideration given to number and type of graduate students)
2. Politics-Will the politicians sacrifice quality in order to provide services to a broader spectrum of constituents? Will they offer the services of a top-flight state flagship school to sufficient numbers of OOS students?
3. Size-Will commitments be made to hire and retain high quality and highly qualified faculty and provide enough resources to offer an undergraduate education experience competitive with the top privates?
4. Demographics-The current swell in high school graduates is due to peak in 2011. In addition, how will the changing nature of America's population, both geographically and ethnically, influence the ability of state colleges to excel?
5. Tuition & Fees-Will costs be allowed to rise to allow the public universities to have enough funds to effectively compete with the top publics?</p>
<p>Overall, I believe that there are several state universities that can currently make strong arguments for the quality of their undergraduate offering vs nearly all but the very top private schools. However, the secular trends are not presently in their favor and these schools will have to make some difficult choices in the years ahead to keep pace. </p>
<p>Institutional leadership will be more important than ever and fiscal planning and execution will be critical. In the future, endowment will play an increasingly important role and will need to fill the gaps should the respective state legislatures fail to sufficiently fund the flagship universities of their states. Here are the approximate endowment per capita figures (based on NACUBO data from 6/30/06) for some of the leading state universities:</p>
<p>$262,716 U Texas (may be overstated as does not take needs of other campuses into account)
$150,331 U Virginia
$141,331 U Michigan
$125,760 Texas A&M
$65,558 UC Berkeley
$58,415 Georgia Tech
$50,898 UCLA
$47,583 U Minnesota
$47,568 U Washington
$45,284 U North Carolina
$36,664 U Wisconsin
$29,861 U Illinois
$23,611 UC Davis
$19,568 U Florida
$18,242 UCSD
$5,725 W&M (that is not a misprint)</p>
<p>Now compare this to a few of the privates that the publics will compete with:</p>
<p>Ranked 1-4. HYPS-all over $1mm per student
Ranked # 10 $457,382 U Chicago
Ranked # 20 $220,032 Cornell
Ranked # 30 $92,907 USC</p>
<p>Most of the publics have some wood to chop in order to catch up and this is happening at a time of increased budget pressure in statehouses across the country and state funding of higher education is under ever greater pressure.</p>
<p>In addition to the money issues, large demographic changes are occurring as the population ages and spreads further to the South and the West. One argument is that this could add to the social infrastructure costs of these states and will hurt education in the public schools of these states. My personal view is that the intellectual capital transfer will be a more important factor and these states will use these increased populations to generate greater economic growth while gaining greater political power. As a result, I see the public universities in the South and the West as major beneficiaries over the next decade from these demographic changes (although I see this taking place over several decades rather than one). </p>
<p>One can speculate about how well the state universities will meet their financial goals and how they will deal with the problems as enumerated above. But the money will have such huge ramifications for how much operating room each state and each school will have. I am also worried about the unwillingness of legislators to restrict enrollments while limiting the number of OOS students, particularly in states with modest and/or declining populations, and the ability/political will to raise tuition costs (as shown in the recent FL decisions about tuition rates). These two macro factors will go a long way to determining the quantity and quality of the undergraduate resources that the state schools will be able to offer as well as their ability to attract top students. </p>
<p>One bright spot for public schools that is unlikely to change drastically over the next ten years is in the facilities for research use. Many schools see this as an area that can defray some of their operating costs while still doing important work that can have large reputational benefits. The barriers to entry for other institutions are considerable and I would guess that the willingness of many privates to duplicate these facilities is relatively low. To the extent that ranking systems and the public's opinion are dependent on institutional research efforts (regardless of graduate or undergraduate work), this will continue to sustain the reputations of the public universities in the eyes of academics although the benefit to undergraduate students is less clear. </p>
<p>My personal guess for 2017 is:</p>
<ol>
<li> U Virginia</li>
<li> William & Mary</li>
<li> UC Berkeley</li>
<li> U North Carolina</li>
<li> UCLA</li>
<li> U Michigan</li>
<li> U Washington</li>
<li> U Texas</li>
<li> Georgia Tech</li>
<li>U Wisconsin</li>
<li>U Florida</li>
<li>U Illinois</li>
</ol>