Growth by Degrees
Kenneth R. "Ken" Plum
 
 
        Virginia business leaders are advocating that the Commonwealth should "grow by degrees," a campaign to create good jobs and high incomes by expanding access to higher education.  Organized by the Virginia Business Higher Education Council, the campaign is directed to statewide and legislative candidates to raise awareness of the economic impact of higher education and public support for colleges and universities as measured by a public opinion poll conducted for the Council.  The Council's message is clear:  "After a decade of disinvestment in higher education, our state will forfeit business expansion and high-wage jobs to competing states and countries unless our elected officials commit Virginia to a sustainable plan of investment and reform."
 
        Virginia's colleges and universities have borne the brunt of budget reductions in recent years as the state has had to cut its budget because of declining revenues with the economic recession.  According to the Council's calculations, state funding for Virginia 4-year schools has declined since the year 2000 by more than $3,300 per student - from $10,675 to $7,303 in constant dollars.  If the recently received federal stimulus funds are excluded, the reduction is approximately $4,000 per student.  The institutions have had to raise tuition and limit expansion to exist within the contracting state dollars.
 
        The public opinion poll conducted for the Council found that 75 percent of Virginia voters believe that a college degree is needed to succeed.  Yet only about 35 percent of college-age Virginians enroll in college with Northern Virginia being the exception where most high school graduates go on to higher education.  Statewide, only about 42 percent of Virginians have college degrees.  To get that number to 50 percent of Virginians, the state needs a specific goal of awarding a cumulative additional 55,000 bachelor's and associate degrees and a cumulative additional 16,000 graduate and professional degrees over the next 10 years as found in a study by the National Center for Higher Education Management Systems.  Such a level of education in the state would have a positive impact on attracting good jobs to the state.  Already Virginia is ranked number one by Pollina Corporate /Real Estate in having a pro-business environment
 
        The results of the poll found that two-thirds of the public would be more likely to vote for a candidate who says investing in Virginia's public universities, colleges, and community colleges is a way to keep taxes low by attracting new businesses and jobs that increase state revenues without tax increases.  The challenge to the Business Higher Education Council and other business leaders supporting this campaign is to get behind the statewide and legislative leaders who will ensure that funds are available in the short-run to invest in higher education in order for the long-term benefits to be realized.