Iowa City economic group opposes regent funding plan

IOWA CITY - An Iowa City-based economic development group this week expressed concern to regents and lawmakers over a proposed change to how they fund Iowa's public universities, calling it an 'isolationist approach” that would 'weaken our institutions.”

'We believe the unintended consequences of this funding proposal will pit all of our institutions against each other in a fight over a limited and shrinking Iowa student population,” according to the Iowa City Area Development Group's letter to the Board of Regents and state legislators.

The letter was sent Tuesday - the same day the state Education Appropriations Subcommittee heard from constituents also concerned about proposal, including representatives from Iowa's community and private colleges.

According to the ICAD letter, the new enrollment- and performance-based funding metrics would 'ultimately limit our ability to compete in a global market for the best faculty and research talent,” limiting the attractiveness to future learners.

The regents in June approved a new method for funding the University of Iowa, Iowa State University and the University of Northern Iowa that ties 60 percent of state dollars to resident enrollment. Another 5 percent would be doled out based on graduate and professional student enrollment, 5 percent would be left up to the board, and the remaining 30 percent would be tied to performance metrics like access and graduations.

The model currently in place has been used since the 1940s and has evolved into a 46-36-18 appropriations split among the campuses - with UI receiving the most and UNI receiving the least. Supporters of the new model say that was illogical and underfunded UNI.

In October, the regents sent a letter to lawmakers - signed by each university president - saying the proposed change 'provides equity across the universities and creates a direct link between state taxpayer dollars and Iowa students.”

Because ISU and UNI have larger portions of in-state students, the new model would take millions from UI, including $12.9 million in the upcoming budget year. Regents asked lawmakers to provide that amount the first year to hold UI unharmed and give it more time.

But ICAD President Mark Nolte told The Gazette his group doesn't think that should be UI's goal.

'The University of Iowa has done a great job of international marketing, and now it's being punished for some of that,” he said. 'That runs counter to the needs of our workforce.”

The Iowa Private Independent College Association, Greater Dubuque Development Corporation, City of Dubuque, and the Dubuque Area Chamber of Commerce also have spoken out in opposition to the formula.

ISU and UNI officials, along with some lawmakers in those areas, have said they support a funding change.

Regents President Bruce Rastetter and the university presidents are set to meet with the House-Senate Education Budget Subcommittee next week on budget issues.