In defense of ASU’s pursuit of low tuition

Time on the road has a way of giving one perspective on matters back at home. It was after a week of travel and a chance to be reminded once again of the importance of higher education on America’s ability to compete in a world economy that I returned home to see Bob Robb’s recent column articulating his position regarding appropriate tax support for public universities.

While I respect Robb’s thinking and writing, he failed to accurately outline the dilemma of our three state universities. The Arizona Constitution is clear — public schools will be free and universities will be as close to free as possible. It is also clear in the Constitution that the state will use tax revenue to support the universities and to maintain them.

But that’s not where we are today. In 2019, we have evolved to the point

where nearly 90 percent of the financial support and maintenance of the university comes from sources other than the state.

This has come at a time when the number of residents attending ASU has skyrocketed, a good thing for the state.

ASU is one of the most efficient universities in the country. Yet, with our mission of making tuition affordable and the limited state investment we still have a shortfall of $225 million per year to educate resident students. We subsidize the cost of their education through other means, including out-of-state and international student tuition.

We have adjusted our state budget requests to focus solely on the cost of educating students from Arizona.

That has not been provided.

The notion that we are “doing fine,” as Robb suggests, doesn’t hold water when you look at the net operating loss figures and the fact that Arizona severely lags other states in terms of the number of residents pursuing postsecondary education at all levels — moving from high school to community college, technical training or university. This large gap in attainment bothers me more than it might bother Robb, as I am of the strong conviction that educational attainment is absolutely critical to our economic adaptability and competitiveness. There are mountains of data that show this.

I appreciate Robb recognizing that we can continue to improve academically with less state support. I also appreciate that the funding issues with respect to K-12 and the universities are different.

But if Arizona wants to continue to provide access to higher education for more residents and advance our economy, additional revenue will be needed.

Robb’s column fails to take the long view. He does not outline ways in which the state might invest in the universities. Only that this sales tax is a bad way.

I am at a loss to find a better way. Unlike K-12 schools and community colleges, we have no authority to make or receive tax assessments and we have no set funding formula from the state. We have university property, which is limited, and we have the ability to operate in the national and global education market, research and philanthropy markets, which we do vigorously.

But it is not nearly enough to achieve what Arizona needs.

Historically, the investment in higher education in Arizona was around $10 to $15 per $1,000 of personal income. That was reduced to approximately $3 to $4 per $1,000 in the last 10 years and is now trending further down. To address this change, we adjusted everything. Now we don’t need $15, we need around $5 or $6.

As we work to meet the educational needs of the state, others in state leadership have sued us for advancing university interests with partnerships with the private sector and revenue and facilities from those relationships. Robb supports the elimination of this source of revenue and partnership also. All of that in spite of the fact that state legislation specifically authorizes us to do so.

And the state’s top lawyer has sued us, his own client, over our tuition costs, without even asking for a briefing.

So to Robb and anyone else who might have some thoughts: What are we supposed to do here in the world as you see it? I’m genuinely asking.

What in fact is the source of funding and level of support that you think is appropriate? And on what basis do you make that calculation?

Do you want to see more tuition increases?

Do you want us to cap resident enrollment, so fewer Arizonans have access to higher education?

I am actually hoping you and others who wish to engage in these topics in good faith have some ideas here. We are listening, and our minds are open.

In the interim we will, of course, do our best to keep our ships afloat, as we strongly believe that our role and importance to Arizona’s future is not going to be reduced in the years ahead. If anything, the role of public universities in helping to shape and maintain Arizona’s future will become more important.