By James Leutze

Given the state’s phenomenal growth over the last few generations, it isn’t surprising that more than half of North Carolinians today have no memory of what the University of North Carolina was prior to 1962. It would be natural to think it has always been a nationally-recognized center of academic excellence. Not so.

For most of the 19th Century, North Carolina was poor and rural. It was a Southern backwater with little interest in paying for public education at any level. It was a reflection of the power of the manufacturing business community, which historically has always had a dominant influence on public life. Why educate farmers, textile or furniture mill workers, especially at public expense? For those who could afford it, there were private schools.

The University struggled – even having to close its doors between 1871 and 1875 due to lack of support. About that time, some forward-looking businessmen realized that some form of higher education had practical value and it was their influence – along with federal Land Grant and Hatch Act funding – that led to the founding of the N.C. School of Agricultural and Mechanical Sciences (today N.C. State University) in 1887. That was something of an anomaly, because by 1900 the public school system was “relatively worse than it had been in 1860, it was perhaps the poorest in the U.S.,” said Hugh Lefler in his authoritative history of North Carolina. As Lefler put it: “Some of the wealthy opposed the entire concept of higher education. “ As a result, the state languished economically, even behind other poor Southern states.

As far as the University was concerned, historian Arnold King said, “For 125 years it (UNC-Chapel Hill) was a relatively small institution and it wasn’t until the second decade of the 20th Century that it began to show promise into developing to a modern University.” In 1931, driven in part by Depression-era government funding, the University consolidated to include Chapel Hill, N.C. State and UNC-Greensboro (then known as the North Carolina College for Women) with a combined enrollment of less than 6,000. It grew so slowly that it wasn’t until after World War II that UNC became a true center of scholarship.

What really enhanced the reputation of the University was the recognition by Gov. Luther Hodges (1954-1960) that the University could become the economic engine for the state. Clearly that was needed. In 1953, North Carolina ranked 44th out of 48 in per capita income. Hodges was a businessman. Friends like Robert Hanes of Wachovia Bank had interested him in an idea that would change the whole trajectory of the University. The Research Triangle Park (RTP) would pool the academic talent of UNC-Chapel Hill, N. C. State and Duke University, thereby attracting the nation’s leading industries in a public/private research enterprise.

It was a stroke of genius. It quickly won over the hearts and minds of the business community. Hodges was succeeded by a series of forward-thinking, pro-business governors, one of whom, Terry Sanford, became President of Duke University and also was a close ally of William C. Friday, the dynamic president of the UNC System. A few years later, Gov. Jim Holshouser oversaw the effective implementation of the consolidation of the state’s public universities, creating a system that allows all the campuses to reach greater levels of excellence.

The next big leap forward came with the election of James B. Hunt as governor in 1976. An astute graduate of N.C. State, Hunt quickly realized the importance of support from business leaders and set out to win them over to his agenda, which included strengthening K-16 public education. In the years that followed, the university grew in stature with the help of prominent businessmen like Hugh McColl, John Allison, Frank Kenan, George Watts Hill, Sherwood Smith and Walter Davis.

The relationship proved most potent in 2000, when a $3.1 billion education bond issue was pushed over the top with the help of N.C. Citizens for Business and Industry (now the state Chamber of Commerce). It was those leaders and that group which agreed with Luther Hodges that the University was the state’s economic engine. In less than 50 years, North Carolina went from 44th in per capita income to 31st — and was considered the third best state in terms of business climate.

Then came 2010. To the surprise and consternation of many, North Carolina took a dramatic turn to the right. There were many reasons, but one of the most important was a change in the alliance with the business community. Different sectors of the business community lost interest in educational advancement, changed direction or decided to simply remain on the sidelines. The result moved the ideological climate distinctly to the right, and the move was reinforced in the elections of 2012 and 2014.

One consequence of this political shift has been an assault on the system of public higher education, echoed by current Gov. Pat McCrory. Citing hard economic times brought on by the Great Recession, the General Assembly dramatically cut the university budget. To partly compensate, the universities raised tuition. Since 2008, North Carolina spending per student (when adjusted for inflation) has gone down 24.9 percent – about $3,000 per student. In 2013-14, when most states were restoring higher education funding, North Carolina cut funding by 3.3 percent. Over the same period, tuition in North Carolina has gone up 34.6 percent – a lot, but not nearly enough to compensate for the cuts from Raleigh.

While we have a venerable higher education system, its days of national prominence are less than a lifetime in length. It takes decades to build a great institution. It takes just a few years of neglect to see it crumble. Public universities are fragile things held together by a combination of political supporters, dedicated faculty, talented administrators, eager scholars and citizens who understand the value of higher education to their well-being. In North Carolina, there is one other important element – the business community – that must see the necessity in an increasingly complex world for a vibrant, nationally recognized system of higher education. Unless and until they return to their vital role in supporting a strong higher education system, the State, itself, will struggle.

The business community must get involved, because, despite claims that the state’s economy is recovering, as of today North Carolina ranks 38th in median family income at $45,906 – down from $50,362 in 2008.

James Leutze is Chancellor Emeritus at the University of North Carolina at Wilmington, a former history professor at UNC-Chapel Hill, and a former president of Hampden-Sydney College.