<p>UF President Bernie Machen announced recently that Florida should invade its “rainy day” fund of more than $3 billion to relieve the institution’s financial crisis (Sun, Aug. 3).</p>
<p>Readers and members of the university community will recall that last spring the state legislature cut UF’s budget by some $47 million, allegedly eliminating about 430 faculty and staff positions (some vacant), necessitating personnel layoffs, and curtailing or modifying a number of academic programs, especially in languages but including biological and social sciences.</p>
<p>President Machen’s plan to save UF is misguided. It will not work, and it will not save UF. There is absolutely nothing in the political history and current climate of state government which suggests that officials would do anything but laugh at his proposal.</p>
<p>State support for public higher education in Florida is pathetic, and shrinking. Our governor and legislators do not regard institutions like UF and its sister schools as public goods worthy of investment. It is more likely that they view public higher education as a drain on the treasury, and if it were not for the entertainment the Gators, Seminoles, Bulls, Knights, Owls and other athletic teams provide, it would not be surprising if state officials shut down the universities altogether, or curtailed their resources even further.</p>
<p>According to the prestigious association of State Higher Education Executive Officers (SHEEO) in its 2008 study “State Higher Education Finance, FY2007,” Florida’s performance in funding its institutions of higher education is, charitably, unimpressive, no matter which measure we examine.</p>
<p>For example if we look at state and local support of public higher education per capita (FY 2007), on a national index of 1.00 Florida is at 0.71; our neighbors Alabama (1.31) and Georgia (1.04) do better.</p>
<p>Florida is almost $100 per capita ($197) lower than the national average ($277); Alabama is at $364, and Georgia $289. The states everyone loves to deride — Arkansas, Louisiana and Mississippi — are at $287, $340, and $318, respectively.</p>
<p>Most revealingly, over a 28-year period Florida had the second largest drop in higher education revenues per FTE of the 50 states, a loss of about $2500. Alabama showed an increase of about $3000 over that period, and Georgia a rise of about $500.</p>
<p>What then to do? First, there is no short-term solution. UF’s fiscal distress will continue unabated until the state’s economy gets moving again. Even the most optimistic assessments suggest this will take years. </p>
<p>But UF could energetically pursue a course of increasing privatization of the budget, a course which “peer” institutions around the country are actively pushing. The goal is to decrease institutional reliance on state appropriations to operate the university so that it does not have to repeatedly suffer the slings and arrows of legislative and gubernatorial stinginess.</p>
<p>A few examples will demonstrate the point. The University of Virginia — a school to which UF would like to compare itself — now receives less than 8 percent of its budget from Richmond. The University of Michigan at Ann Arbor gets about 18 percent from Lansing; the University of Illinois-Champaign about 25 percent from Springfield; Penn State is under 20 percent; and Colorado at Boulder, under 10 percent.</p>
<p>UF receives about 66 percent of its major operating budget from state sources.</p>
<p>The institutions just mentioned are all flagship schools, a mantle to which UF aspires. To reach that goal, UF has to aggressively reduce its financial ties to the state. Nationally all public institutions of higher learning get about 64 percent of their budgets fromstate coffers. UF is much too close to that figure; all flagship public universities are substantially below it.</p>
<p>There are downsides to privatization. For example, it will likely require significant increases in tuition (something Tallahassee resists, to keep UF in its place). Without accompanying increases in student financial aid, a UF degree will rapidly become the provenance of the wealthy.</p>
<p>And privatization will require intimate involvement with corporate America — some would say entanglement — which raises another set of ethical and financial issues with which UF will have to contend.</p>
<p>But to continue reliance on Tallahassee to fund educational quality at UF is simply delusional. It’s never going to happen. UF must return to the course former President John Lombardi initiated in the 1990s, and aggressively cultivate substantial private sources of money.</p>
<p>UF recently took steps down the road to big-time privatization. In 2003 the University Athletic Association completed renovations to Ben Hill Griffin football stadium at a cost of $50 million, all of which was privately raised. The just-completed “Gateway of Champions” built at the stadium at a cost of $28 million was also underwritten by private subscription.</p>
<p>But it is sad to note that Tigert Hall launched no comparable major private fund raising effort to help the university’s academic programs, faculty, or staff through the current very trying period. This was a missed opportunity to move the institution in the right direction. Hopefully UF’s administration won’t fumble the next one.</p>
<p>Richard K. Scher is a professor of politicla science at the University of Florida.</p>