1. NEW REVENUES AND ACADEMIC VALUES: OLD AND NEW CHALLENGES IN HIGHER EDUCATION David Ward President American Council on Education Chancellor Emeritus, University of Wisconsin—Madison EUA-ACU Conference on the 600th Anniversary of the University of Turino 3–5 June 2004 Copyright 2004 David Ward. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

2. SOURCES OF CURRENT ANXIETIES ABOUT ACADEMIC VALUES  Misfit of revenues and expectations  Proportionate decline in state investments in higher education  Increased accountability for state investments  Demands for expanded capacity and flexibility

3. SOURCES OF CURRENT ANXIETIES ABOUT ACADEMIC VALUES (continued)  Exponential growth in the costs of research  The emergence of alternative providers— for-profit and remote delivery  Growing dependence on new revenues

4. MARKET-RELATED REVENUES  Cost sharing with beneficiaries—tuition  Differential tuition by program and institution  Philanthropic endowments  Private sector partnerships  Intellectual property—real estate assets  Related enterprises—continuing education  International students and programs

5. POTENTIAL IMPACTS OF MARKET REVENUES 1. VALUES  Diminished commitment to "public" purposes  Higher education increasingly viewed as an individual, not a social, benefit  Weakened independence from political and commercial influences

6. POTENTIAL IMPACTS OF MARKET REVENUES 2. PURPOSE  Shift in research priorities—pure to applied  Decline of "liberal arts" and growth of professional education  Loss of "breadth" and growth of extreme specialization

7. POTENTIAL IMPACTS OF MARKET REVENUES 3. MANAGEMENT  Segmentation and loss of institutional identity  Reliance on professional management and leadership  Weakened internal governance  Role of adjunct faculty

8. MULTIPLE SOURCES OF ACADEMIC VALUES  Elite  Meritocratic  Egalitarian  Entrepreneurial

9. UNEVEN IMPACTS OF MARKET REVENUES  Different “national” traditions in higher education  Varied roles of the “state” in higher education  Degree and kind of mission differentiation within higher education  Extent of involvement of higher education in the global knowledge economy

10. OPPORTUNITIES FROM NEW REVENUES  Tuition as a redistributive social policy  Diminished state regulation  Entrepreneurial rather than bureaucratic management  Mission specificity and customization  Interdisciplinarity

11. LINGERING THREATS OF NEW REVENUES  Public and social priorities  Equitable access  Search for knowledge  Resource allocation  Institutional coherence  Academic freedom