Fund Formula Unfair for ATU (Charles Brown Commentary)

The system for funding higher education in Arkansas is broken. As the president of Arkansas Tech University, a state-funded institution, I’m not supposed to say that, and I may regret having written it here. However, it’s true, it’s undeniable and, frankly, I am growing weary of playing the political game “the way it’s supposed to be played” and getting nowhere.r

So, this year I’ve pledged to speak out and be honest about some of the things that are broken with the way our state funds its colleges and universities. Perhaps I’m emboldened knowing that a committee of the Legislature began meeting in August for an interim study of the issue, and will report back to the full Arkansas General Assembly by the end of 2004.r

Or it could be that I don’t believe the current funding inequities could be any more damaging to Arkansas Tech. Is it really that bad? Yes, it is, and here’s proof.r

The Arkansas Department of Higher Education has developed a formula to calculate the amount of base funding each institution should receive. This formula considers the number of students, the type of institution, the number of credit hours generated and other factors. If an institution’s productivity (enrollment and credit hours) is rising, the recommended funding will increase appropriately. The problem is the formula recommendations are just that — recommendations. And ADHE doesn’t have authority to establish funding, only the Legislature does.r

Here’s what happened to the formula funding recommendations when actual funding was set for the current fiscal year for Arkansas’ 10 four-year public universities:r

n Five institutions received 100 percent or more of the formula recommendation;r

n Four institutions received between 95 and 100 percent; andr

n One institution received less than 80 percent.r

The institution that received less than 80 percent was, you guessed it, Arkansas Tech in Russellville. Your obvious question should be, “What have they done wrong to be punished like this?” The answer is nothing. What we’ve done is grown our enrollment and improved the quality of our student body so dramatically in the past seven years that the state’s method of funding — part science, part art and part history — hasn’t been able to keep up. r

Too often, there’s a reluctance to decrease any school’s funding, even if that school’s enrollment is dropping. There’s also a reluctance to increase any school’s funding too dramatically over previous years, even if that school’s enrollment is increasing dramatically. The result is that growth and exceptional performance are penalized while status quo or decline are rewarded. Schools on the “winning” end of this system obviously resist change. In the meantime, colleges and students on the “losing” end are injured.r

Unfortunately, the private business sector in our state also loses because successful schools — those producing more and better graduates ready for the work force — have their growth and success stunted. r

Our state and the businesses in it need colleges and universities that are successfully recruiting, retaining and graduating more and more students to be funded equitably. That is the only way we will move up from our current rank of 49th in the nation in higher education attainment. It’s how we will improve our economy and the quality of life for all Arkansans.r

Arkansas Tech should receive its fair share of the funding pie because of our success. Our graduation rate is second in the state, just ahead of the University of Arkansas, and based upon a recently received national award for our retention program, will likely continue to climb. r

The point? There is something wrong when success in higher education — exactly what our state needs — is punished instead of rewarded. This situation needs to be fixed and it needs to be fixed soon — for the benefit of us all. nr

Robert Charles Brown has served as president of Arkansas Tech University in Russellville for the last decade. He holds a Ph.D. in Economics from Louisiana State University.r