POLICY & REFORM campusreview. com. au
Treasure hunt
Public universities are going to have to find ways to diversify their revenue.
By James Wells
Public universities must broaden their funding base to thrive and survive, the chancellor of the University of California, Berkeley, says.
Nicholas Dirks, whose institution was the top public university in the Times Higher Education World University Rankings, says government funding for higher education is drying up and the trend is unlikely to reverse itself. In the US, Dirks said, many public universities will face an“ existential question” of choosing between maintaining university access for students across the socio-economic spectrum and keeping their academic excellence, if funding bases don’ t expand beyond sole reliance on government. The modern public university needs to foster funding relationships with the private sector, he says.
“ It is crucial for us to develop radically new funding mechanisms that will entail new and innovative partnerships between public universities and the private sector,” Dirks argues.“ In short, at a time of state disinvestment, I believe the private sector needs to step up to support our mission in a manner that is commensurate with the benefits it enjoys as a result of the highly educated workforce and research we provide.”
Some public universities in the US have already adopted new funding models with the private sector, including California, Berkeley. Dirks says the university receives only 13 per cent of its revenue from taxpayers. The University of Michigan receives only 9 per cent and the University of Virginia 6 per cent.
Without funding from the private sector, public universities will become either mediocre in academic quality or inaccessible for most students, Dirks says. This dilemma is not limited to the US. Public university leaders worldwide need to discuss solutions.
“ When I talk to leaders of other public universities, whether here or in the UK or wherever, it’ s very comforting to hear they’ re struggling with some of the same issues we are,” Dirks says.“ Believe me, misery loves company.”
But in moving towards the private sector for funding, Dirks says, it’ s imperative to have checks and balances in place to ensure academic freedom so public universities continue to serve the public good.
“ We have lots of relationships already with the private sector, supporting research and development,” Dirks says.“ Even where there’ s potential proprietary interest in some of the research being done. We’ re a public university, so everything is a matter of public record. We’ ve done very well preserving academic freedom and preserving the rights of faculty to determine their own research programs.”
Ed Byrne, president and principal of the King’ s College in London, says developing funding arrangements with the private sector will not endanger academic freedom. Decentralising funding sources gives universities greater autonomy, he says. Deferred loan systems, such as Australia’ s HELP program, also assist public universities in getting the funds they need, Byrne says, thus giving room for more autonomy.
“ A key factor here is the funding equation … You need enough money to run universities adequately … and there’ s much to be said for a public-private benefit model as operates in the United Kingdom and in Australia,” he says.“ Adequate access is ensured through mechanisms like deferred repayment government loan schemes, as we have here in Australia and in the UK, but it also means students and their families are paying very large sums of money for a university education and they have an absolute expectation for a good outcome.” ■
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