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News, analysis and opinion on reforms being offered to improve schools, whether the ideas originate in Washington, Austin or Dallas. The online discussion will take education policy debates seriously, while it connects them to students from grade school through college. We welcome and read all letters from readers. Letters are selected for publication based on their clarity and brevity. They also are chosen to represent a diverse set of views on as many issues as possible. February 2010
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February 19, 2010
The DMN's Holly Hacker and Bob Garrett reported this week on the budget cuts that state agencies are being asked to make to help correct the state's budget shortfall of anywhere between $10 billion to $15 billion. Universities naturally were on the list, including about $26.6 million in reductions for UT-Austin, $7.2 million for UT-Dallas and $8.3 million for UT-Arlington. We're in a hole, so everyone's going to have to live with less than ideal situations. University of Texas System Chancellor Francisco Cigarroa acknowledged that point in an editorial board interview Wednesday. But he also pointed out something that surprised me. While the UT-System got about a 6.7 percent increase in legislative appropriations during last year's session, UT-Austin got only about a 1.9 percent hike. That's because the state uses formulas based upon enrollment to help fund campuses. And UT-Austin has pretty much maxed out on its enrollment capacity. (UT-Dallas, on the other hand, is in a growth phase so it received a greater percentage increase in legislative appropriations.) Cigarroa said he was exploring ways the Legislature could fund schools other than through enrollment figures. He didn't have any specific suggestions, but that seems like a plausible path to go down. Perhaps the Legislature could reward things like cutting-edge research projects. Whatever the answer, we all have a vested interest in UT-Austin, as well as Texas A&M, climbing higher in the rankings of public universities. Students would benefit from top faculty and better student-teacher ratios. And the state would gain from the innovation that comes out of top public universities. I pressed Cigarroa some about expanding the amount that the UT System spends each year from its endowment, which puts UT in the top five or so of university endowments nationwide. I have no desire to see UT draw it down in a way that harms future generations. Hey, I have kids that I would like to go there someday! But UT should at least look at easing up on its yearly drawdown, which regents recently moved from 4.75 of the fund's value to 5 percent. That changed ended up flowing a few million more into UT-Austin. So, here's my question: How much could UT-Austin get if regents voted to start drawing down some more each year, eventually reaching, say, 5.5 percent or even 6 percent? (My understanding is that Yale spends 6 percent.) And what impact would that have on the multi-billion dollar endowment over time? I don't know the answers, but maybe a little more liberal use of the endowment could help UT get enough extra revenues without having to worry about those funding formulas.  Comments (0) Leave comment
|  E-mail entryThe entry "UT-Austin: What about using more of its endowment? " is tagged: UT-Austin |
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