>> FALL SEMESTER AT UW CAMPUSES
IS ABOUT A MONTH OFF, AND THE
NEW ACADEMIC YEAR HAS UNIVERSITY
LEADERS INCREASINGLY VOICING
CONCERNS ABOUT THE TUITION
FREEZE.
COMING INTO ITS SEVENTH YEAR.
THAT’S BECAUSE THE STATE BUDGET
DID NOT BACK-FILL THAT FREEZE.
INSTEAD THE UW SYSTEM
SAW A 58-MILLION DOLLAR INCREASE
OVER TWO YEARS.
LESS THAN HALF WHAT GOVERNOR
TONY EVERS HAD PROPOSED. SYSTEM
PRESIDENT RAY CROSS SAYS IT
WOULD TAKE 60-MILLION JUST
TO KEEP UP WITH INFLATION.
THERE ARE SEVERAL LEGISLATIVE
BILLS CIRCULATING RELATED TO
TEUATION AND A CAMPAIGN ON THE
PART OF THE SYSTEM TO HERALD THE
VALUE OF THE U.W. TO THE STAILT. STATE.
TO TALK ABOUT ALL THIS, WE’RE
JOINED NOW BY UW SYSTEM
PRESIDENT, RAY CROSS. BEFORE
WE BEGIN, WE SHOULD NOTE THAT
WPT IS PART OF THE UNIVERSITY.
SO AS THE UW PREPARES FOR
STUDENTS TO CONVERGE FOR FALL
SEMESTER, WHAT WILL YOUR
CONCERNS WITH THIS YEAR MARKING
THE SEVENTH OF THE TUITION
FREEZE?
>> WELL, WE BELIEVE, AND I THINK
YOU SEE THAT THE LEGISLATORS OF
BOTH PARTIES ARE INTRODUCING
BILLS THAT REFLECT THEIR DESIRE
TO INCREASE THE INVESTMENT IN
THE UNIVERSITY.
AND THAT'S SOMETHING THAT WE
THINK IS NEEDED, AND THAT WE'RE
REALLY PLEASED TO SEE THAT
CONVERSATION TAKING PLACE.
THAT'S ONE OF THE REASONS, TOO,
THAT WE ARE EMBARKING ON THIS
ALL IN WISCONSIN AS YOU CALL
HERALDING THE VALUE OF THE
UNIVERSITY.
WE THINK PEOPLE ACROSS THE STATE
NEED TO HAVE A BETTER SENSE OF
HOW THE UNIVERSITY IMPACTS THEIR
LIVES, THE VALUE IT BRINGS, THE
ADDITIONAL LIVING -- THE LIFT IN
THE LIVING WAGE THAT IT PROVIDES
ON AVERAGE OF A MILLION DOLLARS
A YEAR, SO -- AND THE INVESTMENT
ITSELF IS LIKE 23 TO 1 IN THE
UNIVERSITY, SO WE BRING A GREAT
RETURN TO THE STATE AND HELPING
PEOPLE UNDERSTAND NOT ONLY THE
ABSTRACT NUMBERS AT A HIGH LEVEL
BUT ALSO THE IMPACT IT DIRECTLY
HAS ON THEIR LIVES.
>> ARE YOU SPECIFICALLY TRYING
TO CONNECT THE DOTS BETWEEN THE
VALUE OF THE U.W. SYSTEM TO THE
STATE OF WISCONSIN AND
INCREASING TUITION?
I MEAN, YOU WANT THIS KIND OF
WHAT REALLY IS KIND OF A P.R.
BLITZ TO CONVINCE PEOPLE, YES,
THE TIME IS NOW TO DO THIS?
>> WELL, IT ISN'T JUST THAT
WE'RE SEEKING INCREASED TUITION,
WE'RE SEEKING AN INCREASED
INVESTMENT, WHATEVER FORM THAT
TAKES.
WE CANNOT MAINTAIN QUALITY
WITHOUT SUFFICIENT INVESTMENT IN
THE UNIVERSITY.
AND I THINK THAT'S OBVIOUS TO
MEMBERS OF BOTH PARTIES.
>> NOW, YOU HAVE SAID THAT THE
STATE BUDGET DOES NOT PROVIDE
ENOUGH FUNDING TO COVER
NECESSARY INVESTMENTS.
LIKE WHAT?
>> WELL, LET ME TAKE A COUPLE OF
THINGS.
FIRST OF ALL, THE COMPENSATION
THAT OUR EMPLOYEES RECEIVE.
THE UNIVERSITY HAS TO PAY 30% OF
THAT.
THAT TRADITIONALLY CAME FROM
TUITION.
SO OUR PORTION OF TUITION WOULD
COVER THAT COMPENSATION INCREASE
FOR OUR EMPLOYEES.
THAT'S NOT BEING COVERED AT THIS
POINT, SO THAT'S ABOUT
$16 MILLION OF THAT -- ACTUALLY
$45 MILLION THAT WE'RE GETTING
RIGHT OFF THE TOP.
SO THAT'S A PIECE OF IT.
THE OTHER ELEMENTS IN THIS
INCLUDE THE NORMAL COST OF
INFLATION FOR WHICH IS ROUGHLY
2.4%, FOR GOODS AND SERVICES WE
HAVE TO BUY, SO THAT'S AN
ADDITIONAL SIGNIFICANT AMOUNT OF
MONEY.
ON TOP OF THAT, THERE ARE A
NUMBER OF INVESTMENTS WE NEED TO
MAKE TO MEET THE NEEDS OF THE
STATE, INCLUDING MORE NURSES,
MORE ENGINEERS, MORE DATA
SCIENTISTS AND MORE TEACHERS.
AND THOSE DIFFERENT FIELDS
REQUIRE INCREASED INVESTMENT.
NOW IT'S TRUE, WE HAVE
REALLOCATED FUNDS, THERE'S NO
QUESTION, IN ORDER TO SUPPORT
THOSE MORE STRONGLY.
BUT WE STILL CAN'T GROW IN THOSE
AREAS AS FAST AS WE NEED TO.
>> BUT MEANWHILE, WHAT ABOUT
CAMPUSES ALREADY STRUGGLING WITH
A BUDGET DRUN BUDGET CRUNCH LIKE UW STEVENS
POINT IN THIS BUDGET PICTURE YOU
PAINT?
>> THE DEMOGRAPHICS PARTICULARLY
IN THE NORTH CENTRAL PART OF
WISCONSIN AND STEVENS POINT IS
RIGHT IN THE MIDDLE OF THAT, THE
DEMOGRAPHICS ARE SERIOUSLY
IMPACTING THEIR ENROLLMENT, AND
THAT'S A CHALLENGE.
ON TOP OF THAT WHEN YOU HAVE NOT
JUST FROZEN TUITION BUT REDUCED
INVESTMENT FROM THE STATE OVER
THE LAST EIGHT YEARS THAT
COMPLICATES THEIR FINANCIAL
PICTURE.
AND THEY'RE DEALING WITH THAT AS
AGGRESSIVELY AS THEY CAN, BUT
THE LACK OF STATE RESOURCES,
ADDITIONAL INVESTMENT OF STATE
RESOURCES COMPLICATES THEIR
SITUATION.
>> NOW ONE OF THE REPUBLICAN
LAWMAKERS IS ALREADY KIND OF
PREPARING FOR A LIFT OF THE
TUITION FREEZE WITH A PROPOSAL
THAT IF LIFTED, TUITION COULD
ONLY BE INCREASED AT THE MAXIMUM
MAXIMUM -- TO THE MAXIMUM OF THE
CONSUMER PRICE INDEX, WHICH IS
WHAT -- UNDER 2% LATELY.
WHAT DO YOU THINK OF THIS
PARTICULAR PROPOSAL?
>> WELL, I THINK IT'S ABOUT
2.44% RIGHT NOW, BUT I THINK THE
CHAPTER 36 GIVES THAT
RESPONSIBILITY TO THE BOARD.
THE BOARD'S ROLE IS TO ANALYZE
THE NEEDS OF THE SYSTEM AND SET
TUITION, AND THAT'S THE
RESPONSIBILITY OF THE BOARD.
I THINK THERE ARE WAYS TO WORK
TOGETHER WITH THE LEGISLATURE SO
THE APPROPRIATE OVERSIGHT IS
POSSIBLE, BUT I THINK MANDATING
THAT IN STATUTORY LANGUAGE IS A
BIT TOO MUCH.
>> REPUBLICAN SENATOR STEVEN
NASS IS POINTED IN SUPPORT FOR A
CONTINUED TUITION FREEZE, BEING
AS I KNOW I DON'T HAVE TO TELL
YOU, AND CALLS INTO QUESTION HOW
CAREFUL THE U.W. IS WITH ITS
SPENDING.
WHAT DO YOU SAY TO HIM AND OTHER
LAWMAKERS WHO MIGHT FEEL
SIMILARLY?
>> WELL, WE'VE DONE A LOT TO
CONTROL OUR ECK EXPENSES, BUT THERE
COMES A POINT WHEN THERE NEEDS
TO BE AN INVESTMENT IN THE
UNIVERSITY.
WHAT HAVE WE DONE -- IF YOU
THINK ABOUT IT, THE
RESTRUCTURING PROCESS THAT WE'RE
GOING THROUGH, THAT WILL NOT
RECOUP OR SAVE US A TON OF MONEY
INITIALLY.
IT WASN'T INTENDED TO.
BUT OVER TIME, WE'VE ACTUALLY
ELIMINATED A WHOLE INSTITUTION
WITHIN THE SYSTEM.
WE'RE SHIFTING RESOURCES FROM
ADMINISTRATIVE RESPONSIBILITIES
TO THE CLASSROOM.
WE'RE DOING THINGS LIKE THAT ON
AN AGGRESSIVE BASIS, BUT YOU CAN
ONLY GO SO FAR IN THAT PROCESS.
>> ALL RIGHT.
WE NEED TO LEAVE IT