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Charlottesville Regional Chamber Supports "Charter Public University" Concept for University of Virginia, Other Public Universities
(Charlottesville, Virginia - December 16) The Charlottesville Regional Chamber of Commerce today announced its support for "Charter Public University concept for the University of Virginia and other public universities" in the Commonwealth.
The Chamber support was outlined in Chamber Legislative Memorandum 04-6: Chamber Support For Charter Public University Concept which has been communicated to the 11-member Greater Charlottesville Legislative Delegation to the Virginia General Assembly and Albemarle County and City of Charlottesville public officials. The Chamber Board of Directors approved the Chamber support at its November meeting. A copy of the Chamber Legislative Memorandum is attached.
The Chamber memo said "The concept of Chartered Public University represents a significant evolutionary educational opportunity that can enhance the University's preeminence as the leading public university in the nation while propelling its overall educational excellence to excel even further. As a progressive educational advancement, the Chartered Public Universities concept also can effectively raise standards of higher education throughout Virginia. "
"Furthermore," the Chamber said, "the synergy of educational innovation, increased research and development, and enterprise can enhance the attractiveness of Greater Charlottesville and the Commonwealth of Virginia as places to live, raise families, work, do business and build a better future."
The Charlottesville Regional Chamber of Commerce is dedicated to representing private enterprise, promoting business and enhancing the quality of life in the greater Charlottesville communities. Founded in 1913, today the Chamber has 1,200 member enterprises which employ more than 45,000 men and women in the Charlottesville region, representing an estimated total payroll of more than $1.3 billion a year.
Chamber Legislative Memorandum 04-6: Chamber Support for Charter Public University Concept
December 15, 2004
TO: LEGISLATIVE DELEGATION - GREATER CHARLOTTESVILLE REGION (04-6)
SENATE: Creigh Deeds (D-25); Emmett Hanger (R-24); R. Edward Houck (D-17); Frank M. Ruff, Jr. (R-15); HOUSE OF DELEGATES: Watkins M. Abbitt, Jr. (I-59); Rob B. Bell, III (R-58); W. R. Bill Janis (R-56); R. Steven Landes (R -25); Christopher B. Saxman (R-20); Edward T. Scott (R-30); Mitchell Van Yahres (D-57)
cc: Albemarle County Board of Supervisors; Charlottesville City Council
FROM: Timothy Hulbert, President
RE: CHAMBER SUPPORT FOR CHARTER PUBLIC UNIVERSITY CONCEPT
* * *
Our Charlottesville Regional Chamber of Commerce supports the Chartered Public University concept for the University of Virginia and other public universities (Chamber Board of Directors, November 23, 2004).
The concept of Chartered Public University represents a significant evolutionary educational opportunity that can enhance the University's preeminence as the leading public university in the nation while propelling its overall educational excellence to excel even further. As a progressive educational advancement, the Chartered Public Universities concept also can effectively raise standards of higher education throughout Virginia.
Furthermore, the synergy of educational innovation, increased research and development, and enterprise can enhance the attractiveness of Greater Charlottesville and the Commonwealth of Virginia as places to live, raise families, work, do business and build a better future.
It is essential that the University of Virginia remain competitively positioned as the nation's leading public university. To decline appreciatively from that position would represent a serious challenge not only to UVA, but also to higher education in Virginia and to Virginia's and our region's future economic vitality. UVA's leadership intends to not only maintain that position but to improve its standing overall among the nation's leading universities.
Our Chamber, our community and our Commonwealth share this aspiration for UVA. It is essential to note that UVA has reached excellence as a public university through its benefactors and enterprise in an environment of constricted public support. Currently 92% of UVA's operations are funded by private, tuition, university-generated and other non-state tax sources. The Commonwealth provides approximately 8% towards UVA programs from tax sources.
While being the leading public higher educational institution in the nation, UVA is also the most important engine for employment, enterprise and economic vitality in our Greater Charlottesville Region. UVA entities employ approximately 12,600 full-time people within our communities (+/- 65% in Albemarle County; +/- 35% in the City of Charlottesville) earning more than $800 million annually. The University of Virginia is our region's largest employer and community citizen and our Chamber's leading member, as well as a leading Chamber partner.
A dated state bureaucratic governance structure for operating such an educational enterprise calls into question whether or not a new structure could improve overall education, operational efficiency, employee merit compensation and performance and other indices at UVA (and other universities). The Chartered Public University concept, which is similar to arrangements found in other state universities (ie. University of Michigan) offers a university greater autonomy and flexibility - in the context of a public entity. Chartered Public Universities are not private universities. Their Boards are publicly appointed and accountable. Their employees are public employees. Their assets are public assets. They operate under public rules and scrutiny.
As a Chartered Public University, UVA and other schools, would be less dependent upon unreliable, limited state resources. The State Council on Higher Education in Virginia (SCHEV) reports that in FY 2004-05 alone, the Commonwealth funding shortfall to UVA was $39 million. Clearly, absent General Assembly and Gubernatorial approval of charter public university status - or some other newly defined compact between the Commonwealth and universities - the General Assembly must be prepared to reverse its decades-old course and significantly increase public investment. To not do so, Virginia will have to confront the distinct possibility that the premier status of UVA and status of other universities will begin to slip.
Constrictive state accounting, procurement, capital and human resource regulatory measures will also less encumber UVA. A notable example recently cited was that during the Commonwealth 2003 fiscal limitations, UVA was not allowed by state law to award merit pay increases to its "state classified" employees even though it had the resources to do so. Another example: currently more than 20 separate state approvals are required for many capital projects. The Commonwealth's cumbersome contract vendor procurement requirements, and the peculiarities it often produces, could be greatly improved, opening greater entrepreneurial opportunities and operating and fiscal efficiencies.
Like our Commonwealth, Charlottesville and Albemarle County, UVA enjoys the highest financial rating available to it. (UVA and the University of Texas are the only two public universities with AAA rating by three financial rating houses.) UVA's financial stewardship is exceptional and the case could be made that during the Commonwealth's recent fiscal stalemate, UVA's financial rating, unblemished by any action on its account, was threatened by actions in Richmond. Fortunately, a resolution was reached in Richmond and the Commonwealth's rating was preserved. Some un-coupling from this annual political fiscal ritual is in order.
A question arises as to who would attend UVA as a charter university. Mr. Leonard Sandridge, the University's Executive Vice President and Chief Operating Officer, has said that the 2/3 Virginia - 1/3 out-of-state student body ratio was unlikely to change appreciably. He also offered that through innovative programs such as "Access UVA" and other financial aid "guarantees," UVA would remain competitive and affordable to student needs. (The University of Virginia Student Council voted unanimously to support the charter public university concept.)
Some concerns have been raised by other institutions and others that a "tiering-effect" could result from the charter concept. This concern of course would have to be based upon a premise that there is currently little or no difference in educational quality among institutions. If such were the case, the US News & World Report and other annual "rankings" would have little or no meaning. In fact educators, public officials, Chamber and business leaders and citizens in general regularly cite Virginia's institutions' excellent standings.
The question more accurately should be would charter status exacerbate differences among public institutions. By reducing reliance on public funding support, charter universities would open the state higher education door further to other institutions. By offering charter status to other institutions, the door to those advantages would also be open. How this plays out over years, decades, diverse General Assemblies and Governors, future academic administrations, federal governmental initiatives, governmental and corporate research funding cycles and private fund-raising would be conjecture. Regardless of governance structure however, a relatively safe assumption would be that UVA will remain among the highest tier of universities within the Commonwealth of Virginia. A better question might be: Can UVA, other Virginia institutions, chartered or otherwise, improve their standing - their tier - nationally?
There are concerns regarding UVA employees' employee status, many raised by UVA union member employees. (About 300 of UVA's 12,600 staff and classified employees are members of the Staff Union at UVA, SUUVA, a Communication Workers of America labor union affiliate.) Clearly, UVA employees should and will maintain a measure of public employee protection and benefits. In local newspaper reports at a number of UVA sponsored employee meetings some employees have raised concerns that their positions could not be "guaranteed" in the future. Even the highest degree of civil service employment protection in Virginia and elsewhere do not enjoy guarantees. We are confident that the universities and Commonwealth can allay employee anxiety.
Our Chamber understands that the charter public university concept will continue to be defined and refined by university officials, the General Assembly and Governor. As the concept and legislation evolve and proceed, our Charlottesville Regional Chamber of Commerce supports the chartered public university concept for the University of Virginia and other public universities.
Thank you.
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