Let’s Make a Deal: Compacts and Public Agendas in American Higher Education TRAVIS REINDL, JOBS FOR THE FUTURE (USA) INTERNATIONAL SYMPOSIUM ON UNIVERSITY COSTS AND COMPACTS CANBERRA, AUSTRALIA 14 JULY 2008

Historical Context DEVELOPMENT/ MATURING INDUSTRY (21st Century) EXPANSION (20th Century) Compacts between states and institutions largely implicit MATURING INDUSTRY (21st Century) Push for more explicit compacts between institutions and states

The Shift from Implicit to Explicit Realities Collide Political Realities (increasing expectations and scrutiny from policymakers and public) Market Realities (intensifying drive For prestige) Institutional Mission and Function Fiscal Realities (increasing demand for state resources in the face of structural deficits) Economic/Demographic Realities (emergence of knowledge economy in the face of aging and diversifying population) Regulatory Realities (increasing decentralization)

Types of Compacts Revenue Stabilization: narrow focus—tuition/subsidy balance Example: Michigan Capacity Building/Degree Productivity: broader focus—subsidy assurance in exchange for enrollment, completion, efficiency gains Examples: California, Maryland Statewide Public Agenda: broadest focus—increased autonomy in exchange for fulfillment of state priorities Examples: Kentucky, North Dakota, Virginia

Status Report Mixed record of success Changes in political landscape: leadership issues impact future prospects (e.g. Kentucky, North Dakota) Changes in fiscal landscape: economic downturn is placing compacts and agendas at risk (e.g. California, Kentucky) Implementation challenges: complexity raises questions about long-term effectiveness and viability Drive to expand and sustain use of compacts National Governors Association (Innovation America)

Lessons To be successful, compacts and public agendas must: Be rooted in clear, understandable, and measurable goals Be enforceable and simple to administer Be sustainable Leadership cadre must be able to withstand changes in political and higher education leadership Major policy levers (e.g. accountability and finance) must support or at least not work at cross purposes with the compact/agenda Terms must be developed that do not endanger the compact/agenda in times of fiscal stress