RALEIGH (March 10, 2015) – Tom Ross, President of the University of North Carolina system, issued a sharp warning today about declining support for public higher education in North Carolina and the nation.

Repeated budget cuts to the state’s colleges and universities are part of a damaging trend, Ross told the Raleigh City Club’s first National Public Affairs Forum.

“America’s societal commitment to investing in higher education appears to have eroded,” he said.  “We spend about 30 percent less per student today than we did 25 years ago.”

“As a nation, it is without doubt that we are disinvesting in higher education, and we are beginning to pay the price.”

That price comes in the form of a less-competitive workforce, underfunded research and development, and much higher costs for students and their families.  Ross highlighted particular concern about tuition increases prompted by diminishing public support.

“Growing numbers of American students can’t afford to attend college at all, and too many of those who do are burdened by significant debt,” Ross said.  “This is an extremely dangerous trend for America.”

“If we put the cost of public higher education out of reach … we will be unable to produce the talent that businesses need in the coming years,” he said, noting low unemployment rates for college graduates.  “We’re going to run out of college graduates, and we’re behind in this state.”

Repeated budget cuts are also having an impact on faculty, Ross said.  Some of the University system’s most-talented teachers and researchers are leaving for other states, taking valuable research dollars with them.

“Without great faculty, you cannot be a great university,” Ross said.  “And in my view, without a great university, you cannot be a great state.

Without funds for faculty salaries, the state’s public colleges and universities simply can’t compete, he said.

“Since becoming UNC president, I have managed one budget cut after another, including the largest in UNC’s long history – more than $400 million in 2011 alone,” Ross said.  “Under the Governor’s budget proposal that came out last week, we would again face more cuts this year.”

Ross said the University must acknowledge pressures for greater efficiency.  The system has made tens of millions of dollars in efficiency improvements, ranging from energy conservation to staff streamlining to shared information technology systems.

“That makes us more efficient.  We have eliminated hundreds and hundreds of jobs,” he said.

“Compared to five years ago, we are producing 18 percent more degrees.  At the same time, our cost per degree is down 15 percent when you adjust for inflation.”

Ross made a strong argument for the university system’s goal of having 32 percent of the state’s adult population earn a college degree, noting that while 28 percent of North Carolinians have bachelor’s degrees today, more than 40 percent of Massachusetts residents do.  The 32 percent goal was endorsed by a bipartisan collection of civic and business leaders from across the state.

“It is about talent,” Ross said.  “It is higher education that will produce the talent we need to face the competition we face globally.”

Ross also highlighted the role universities play in supporting private research and development.

“Roughly 75 percent of research in America now takes place on university campuses,” he said.  “North Carolina is no different.  Our public and private universities bring more than $2 billion in research grants and contracts to our state every year.”

Companies rely on university breakthroughs to drive economic development – NC State alone has more than 700 private-sector partners, Ross noted.

That research makes a real difference in people’s lives.  Ross pointed to research at NC A&T State University that patented a method to remove 98 percent of the allergenic properties of peanuts, and to work by UNC-Chapel Hill spinoff Liquidia Technologies that will deliver nano-drug therapies directly to targeted cells.

“It’s a game-changer,” he said.

Beyond the individual student, there are broader benefits to the public from higher education, Ross said, pointing to lower levels of obesity and crime and higher levels of civic engagement among college graduates.  He defended North Carolina’s long-term commitment to public colleges and universities.

“I am convinced – and believe the research confirms – that the value of higher education is not fully measured by one’s job title or earnings level,” Ross said.  “Higher education has value beyond the individuals who participate in it that extends to the public at large.”

Reinvesting in education as a public good is critical to maintaining America’s place in the world, he said.

“It is our exceptional system of higher education, both public and private, that has enabled our nation to develop the number-one economy in the world,” Ross said.  “We must reverse the 25-year trend in this country and begin investing again in our public universities, in their faculties and students, in teaching and learning, and in research and discovery.”

Related Link: McCrory budget: Economy’s up, but another cut for universities

Related Link: ROSS: The Future of Higher Education in the United States