In July, I wrote briefly about the unfolding investigation into the University of Illinois’ admissions scandal.  Until very recently, a student with connections to a VIP (e.g., government official, board member, big donor) typically received preferential treatment in the admissions process by being placed on what was called the “Category I” list.

Last week, the Illinois Admissions Review Commission, created to investigate the matter, issued a blistering report calling for the entire University Board of Trustees to resign and stopping just short of calling for the President and Chancellor to resign.  And indeed the Chairman of the Board, who had used his influence to help family and friends, and at least two other board members, have resigned over the scandal.

“The University now finds itself in a full-fledged crisis purely of its own making,” says the report.  ”Public confidence in the University and its leadership has eroded, and the University must set out in earnest to regain the public’s trust and repair the damage done to its reputation.”  Sound familiar?  The University of Illinois probably could learn some lessons, both good and bad, from West Virginia University’s handling of the Bresch matter.

Please note that Kevin Carey, Policy Director of Education Sector, shares my earlier assessment: “Most, if not all, of our public universities engage in some sort of similar practices.”  But fortunately, or unfortunately, West Virginia institutions are less likely to find themselves embroiled in a similar admissions scandal because none is even close to being as selective as the University of Illinois.

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The assault on The Academy continues – this time in an op-ed commentary by Dr. Robert Zemsky, another person generally regarded as a nut case by The Academy, in the Chronicle of Higher Education.  What is the latest barbarian at The Academy’s gates saying?

The history of American higher education is well supplied with reform movements that have gone nowhere.  Despite fervent calls for change in a number of areas, most often issued by a commission with an impressive masthead, nothing much happens – or worse, the only visible result is hurt feelings and a hunkering down by the college leaders on whom change depends.

Of all the groups I have dealt with over the years, higher education is the most resistant to change, which may seem counter-intuitive given that The Academy is supposed to be all about thinking the great thoughts.  But it is about precisely that – thinking, not changing.

Like outside reformers, state agencies cannot prescribe change (unless they are prepared for a long, exhausting battle) but must create the conditions that make change possible… The nature of the academy sucks the air out of piecemeal reforms.

More than anyone in West Virginia higher education over the last few years, I was involved in those lll-ooo-nnn-ggg, exhausting battles with the Death Eaters and have two observations.  First, don’t focus primarily on trying to build consensus from within The Academy.  You’ll accomplish more by hitting your head against a wall repeatedly.  Second, you really can create the conditions that make change possible – just look at how West Virginia’s community college system has been transformed over the last 5 years (a subject for some future blog posts, I suspect).

… and most important …

The problem, as the economist Richard Vedder and others have noted, is that the classic rules of supply and demand apply at best imperfectly to higher education. In a market so awash with federal money—for research support, for grants and loans to students and parents—competitive pressures aren’t sufficient to change the system.

That’s the real issue: there is little change – and tuition costs are going through the roof – because The Academy is very well insulated from the effects of the market.  In my experience, the two higher education groups most receptive to change – academic research and community colleges - actually prove the rule.  Why?  They are expected to be entrepreneurial and address real-world concerns.  If they do not, their “business” models do not work very well.  Over time, we will follow the money … and thus gain a better understanding of higher education’s strengths and weaknesses.

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A new approach for HBCUs

Several weeks ago, I wrote about how President Barack Obama’s new drug czar Gil Kerlikowske was attempting to change the dialogue surrounding illegal drug use. He is not alone among President Obama’s new appointees.

President Barack Obama recently selected John Silvanus Wilson, Jr. as his point person for  Historically Black Colleges and Universities (HBCUs).  In the Higher Education Act of 1965, Congress provided for funding for HBCUs to remedy the historic effects of racism and discrimination.  The funding continues to this day.

According to Inside Higher Ed, Dr. Wilson wants HBCUs to move away from the “against great odds” and “survival and maybe victimization” narrative and toward a focus on “thriving not merely surviving.”  While this theoretically weakens the overall justification for HBCU funding, I appreciate Dr. Wilson’s effort.  No institution, whether historically black or historically white, is going to thrive if it wallows in self-pity and always has a ready excuse for failure.

West Virginia has two HBCUs – West Virginia State University and Bluefield State College.  Both are on the surviving side of the surviving/thriving continuum with low graduation rates and serious financial challenges.  They need to figure out how to make the transition that Dr. Wilson is advocating.

HigherEdThink

Last week Anne Neal, president of the American Council of Trustees and Alumni, wrote a thought-provoking commentary aptly titled The Potty Trained Trustee” in Inside Higher Ed. Like Ms. Neal’s organization, her commentary is sufficiently outside the mainstream of “HigherEdThink” that I’m sure Ms. Neal will be dismissed as a crackpot by “The Academy.”  But I am convinced that several of her main points are correct and deserving of some attention.

  • First, Ms. Neal castigates the Association of Governing Board’s (AGB’s) “Survey of Higher Education Governance.” I must admit that I had been puzzled when I first saw a list of AGB’s supposed five major higher education issues, according to board trustees, several weeks ago.  Not only was the football team’s record (or even athletics more generally) missing from the top of the list; it was not even ON the list.  (Seriously, I wouldn’t expect athletics to be at the top of the list, but I would expect it to be on the list.)   It turns out that, in an effort to figure out what trustees think is important, AGB surveyed, not trustees, but presidents and other administrators.
  • Ms. Neal also criticizes HigherEdThink on the proper role of boards:  “According to this view, higher ed administrations are the governance structure. Trustees for the most part should keep to their place and do as they are told by administrators. One might call it the potty-trained trustee….” She goes on to illustrate how pervasive the conventional wisdom is by pointing to a question on the survey that assumes that presidents select their own board members (their bosses!!!), which they frequently do.  She also – very rightly – points out that private sector boards have been headed diametrically in the opposite direction over the last few years thanks to Sarbanes-Oxley, Enron, etc. and wonders why higher education has not been paying any attention.
  • Third, Ms. Neal identifies the first of two issues concerning which board members should be paying particular attention:  Current levels of higher education expenditure are unsustainable.  Higher education costs are increasing at a faster clip than health care costs and a much faster clip than either personal income or consumer prices.  Ms. Neal knows this trend cannot continue.  She also knows that too many administrators’ heads are buried in the sand when it comes to meaningful cost controls.  She thinks boards made up of people who have had to operate within a profit-and-loss statement’s bottom line could provide meaningful leadership on this front.
  • Fourth, Ms. Neal identifies a role for board members in the academic arena.  She thinks board members need to push The Academy to evaluate learning meaningfully and address issues like grade inflation.  As Ms. Neal is well aware, the pressure to evaluate learning has come almost exclusively from outside The Academy in recent years, and no one can seem to tell you much about whether a student learned anything while attending college.

Over the next several weeks and months, I will discuss at greater length some of the main points that Ms. Neal raises.  All are very relevant to West Virginia’s higher education system and some are key to escaping from the received wisdom of “HigherEdThink.”

PS: My favorite statistic from the AGB report: For 64% of private institution boards, the full board is told the president’s compensation … which logically means that in 36% of cases, the full board is not told and does not know the president’s compensation.  How on earth could you claim to be fulfilling your fiduciary duty to the institution if you aren’t told the president’s salary?  It makes you wonder what else those trustees are not told – a lot, I suspect.

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Chemical peel, anyone?

Last week I wrote about the struggles of Kinetic Park in Huntington with its dermatologist anchor-tenant and indicated that I would write about the struggles of two other research/technology parks in the new future: the Dow Technology Center in South Charleston and the West Virginia University Research Park in Morgantown.

On Sunday, Charleston Gazette reporter Eric Eyre wrote about the Dow Technology Center.  The article was titled “Supporters try to save South Charleston Tech Park,” which says about all that needs to be said about the current status of the Tech Center.

Unlike Kinetic Park and the WVU Research Park, which have never succeeded in getting off the ground, the Dow Tech Center has a storied past.  Located on a relatively flat area between I-64 and Corridor G in South Charleston, the Union Carbide Tech Center opened in 1949; employed as many as 3,500 chemists, technicians, researchers and engineers in its heyday; and produced more than 30,000 patents worth $18 billion, according to the article.  Intriguingly, this was done in an area without a research university or a significant educational pipeline of science, technology, engineering and math (STEM) graduates.  (Nearby West Virginia Tech produced engineering graduates, but not in the quantities or advanced degrees needed to support a major research facility.)

Over the last several decades, the South Charleston Tech Center has fallen on hard times.  With the exception of the Mid-Atlantic Technology Research and Innovation Center (MATRIC), with about 150 employees, not much remains of the Tech Center.  The article quotes a MATRIC employee as saying: “There’s a lot of intellectual capital left in the valley.  This is an ideal place for technology development.  It’s like Research Triangle Park in North Carolina.”  I don’t think this assessment is correct.  While Union Carbide invested millions, if not billions, of dollars in the Tech Center and brought smart people from all over the nation and world to the Kanawha Valley, it is very unlikely that another private sector entity would do the same.  Why not?

  • Intellectual Capital.  Unlike Research Triangle Park, which is surrounded by Duke University, the University of North Carolina and North Carolina State University, the Tech Center is surrounded by West Virginia State University and the University of Charleston, neither of which has the kinds of strong STEM programs needed to support the Tech Center, and West Virginia University Institute of Technology, which has some of the programs, but is struggling at best, dying at worst.  Furthermore, WVU-Tech’s last foray in the direction of the Dow Tech Center was an unmitigated disaster; just ask the “Take Back Tech” folks.
  • Environmental Issues.  Having been aware of at least two efforts to assess environmental conditions at the Center, I know there are widely divergent opinions.  Clearly, there are serious environmental issues associated with a sediment pond on the property.  Beyond that, some people think the site is quite habitable.  Regardless, any time an environmental cloud hangs over a piece of property, it presents serious challenges for any marketer of that property.
  • The Owner.  Dow Chemical, which owns the property, faces a financial dilemma.  It has a series of old buildings on property that is of little use to it now, and there’s no single buyer on the horizon willing to take all the property off its hands.  So rather than continue to maintain buildings that are partially occupied, Dow is beginning to level them to reduce maintenance costs.  Additionally, Dow is not the easiest company with which to deal on property issues, I have been told.

Keeping with our dermatological theme, can West Virginia University and/or Marshall University provide the necessary chemical peel?  No.  Neither institution has the critical research mass needed on its home campus.  If significant institutional resources were redirected to South Charleston, it probably would weaken both institutions’ current research-building efforts.  Additionally, there is little likelihood of a new infusion of external resources at either institution to support such an endeavor.

Can West Virginia’s state government provide the necessary chemical peel?  Not without taking an incredible risk.  If the property ended up in the hands of the State, the State also would inherit a set of old facilities that need to be maintained and some serious environmental questions.  Additionally, the State would have to find a significant number of new tenants for the site.  All one has to do is tour facilities on the Capitol Complex to appreciate what a poor landlord the State historically has been.

What’s the best-case scenario?  Create a consortium of educational and private sector organizations in addition to MATRIC to serve as anchor tenants at the Tech Center.  On the education front, create a higher education center, much like the one in Beckley, which has the potential to thrive and grow, and locate the Kanawha Valley’s new Advanced Technology Center on the site.  On the private sector front, market, market, market the Center to anyone and everyone who might have the slightest interest.  It’s a long shot, but I think it’s probably the best shot we have.

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