Iowa lawmakers prepare to debate proposed higher education funding change

Whether Iowa lawmakers will support a new Board of Regents funding model and third-straight tuition freeze by boosting appropriations in the upcoming legislative session depends on who you ask.

Some have concerns about the proposed change to how the Board of Regents funds Iowa's universities, saying the new model could drive unhealthy competition and injure graduate and professional programs, private and community colleges, and the state economy.

Others support the new enrollment- and performance-based funding model, calling it a positive step toward improving an outdated system and saying it addresses the mounting budget issues at an underfunded University of Northern Iowa.

Regardless of where they stand on the issue, many agree higher education funding is critically important, not only to Iowa's universities and colleges, but to municipalities, students, parents, and the state's economic health and future.

'I think, given the importance of higher education in the state and the role of public institutions in that, we need to focus our attention on restoring the lost income,' said Sen. Herman C. Quirmbach, D-Ames, who will chair the Senate Education Committee in 2015.

State appropriations accounted for about 77 percent of the public universities' general education funding in 1981, compared to 35 percent in 2014. Quirmbach said the universities are down $95 million a year from just five years ago, before the recession, forcing them to rely more heavily on tuition.

'We aren't talking about an increase,' he said. 'This is getting back to where we were before.'

Quirmbach, who represents a district that includes Iowa State University, said he supports the idea behind the Board of Regents' proposal, which — beginning in the next budget year — would tie 60 percent of state funds to resident enrollment, 5 percent to graduate and professional enrollment, and 10 percent to access, which would be measured by enrollment of specific types of students like veterans.

Another 15 percent would be based on student progress and attainment, and 5 percent would follow sponsored research. The remaining 5 percent would be left to the Board of Regents.

'Taking a look at how many Iowa students we educate is very important,' he said. 'There is no more important rationale.'

But, Quirmbach said, 'I'm not so sure the regents have gotten all the percentages right.'

He suggested graduate and professional education get more than 5 percent, for example.

'And if you're talking about reallocating the pie without the pie growing, that would be a very difficult conversation,' Quirmbach said.

'It's time to fix it'

The Board of Regents for the next budget year has asked the Legislature for a 1.75 percent inflationary increase in general university operating support, along with an extra $12.9 million to shield the University of Iowa from being harmed by the new funding model.

That extra money is the amount UI would lose in the funding model's first year because it has a smaller proportion of in-state students than Iowa State and UNI.

Board of Regents President Bruce Rastetter has expressed confidence that lawmakers will support the new funding model and the regents' appropriations requests, but Sen. Bob Dvorsky, D-Coralville, said he's not so sure.

'There is an enormous amount of concern being raised by various groups,' Dvorsky said, citing advocates and officials with private and community colleges in Iowa. 'I don't think there was much consideration from the regents for them. And maybe that's not their mandate. But it should be ours.'

By using state funds to encourage public universities to enroll more of the shrinking number of in-state students, Dvorsky said, private and community colleges could be harmed.

'Should we be offering all these incentives to take students away from private and community colleges?' he said.

Dvorsky wants to take a step back by finding a solution for this year that addresses some problems with the current system — like the underfunding of UNI — and then convene a larger task force. That group, he said, would include representatives from the Legislature, the Board of Regents, and the private and community colleges.

'If we can shift on the funding a little and then appoint a blue ribbon task force to look at all these things, that would be the way to go,' Dvorsky said.

Sen. Jeff Danielson, D-Cedar Falls, said he's supports the funding proposal as it stands. But he also would support 'plan B or C,' as long as it addresses UNI's chronic underfunding.

'Unless someone has been living under a rock, there is wide acknowledgment that UNI has to get a more stable and fair funding allocation from the current higher education line item,' he said.

Without a funding change that moves UNI toward long-term stability, Danielson said, the institution will have to make difficult decisions that will deprive the quality of its education.

'We will have to make drastic cuts to programs and class offerings,' said Danielson, whose district includes UNI.

He's worried critics of the funding model will try to 'wordsmith' the proposal to death, preventing progress, and 'miss this window of opportunity to make the formula more fair.'

'Don't lose the forest through the trees,' he said. 'UNI is hurting. We are on our knees. We have been patient, and it's time to fix it.'

Rep. Bob Kressig, D-Cedar Falls, supports the new funding model, saying the old one 'doesn't fit anymore.' And UNI President Bill Ruud said although lawmaker opinions vary on the proposed changes, many appear to agree on one thing.

'I don't hear anybody say, 'Oh jeez, you guys don't have a problem,'' Ruud said. 'Everybody acknowledges that there has been long-term, chronic underfunding of the University of Northern Iowa.'

The new funding formula, as proposed, 'is a great way to get us down the right road,' Ruud said.

'Not well thought out'

Even as lawmakers call for restoration of higher education funding, some caution about keeping down spending. Rep. Ron Jorgensen, R-Sioux City, will lead the House Education Committee when the session begins Jan. 12 and said he expects this year to be one of belt-tightening.

And, Jorgensen said, he too has concerns about 'unintended consequences' of the proposed altered funding model, like ramped up competition for fewer Iowa students.

Senate President Pam Jochum, D-Dubuque, on Monday said she feels the proposed funding model 'was not well thought out.'

'It is pitting school against school,' she said. 'Whether it is the three state universities or them against private colleges or the community college system, the last thing we need is to create more division, especially among educators.'

Critics also have asked how the new funding model will affect migration to the state, saying it seems to incentivize universities to refocus resources on recruiting in-state students instead of out-of-state prospects.

'We need to encourage more young people to come to Iowa,' Jochum said, adding that once they get here, many 'fall in love with the state' and decide to stay.

'I believe the proposal the Board of Regents has put out actually flies in the face of trying to do that very thing,' she said.

Jochum backed the idea of stepping back and conducting a 'yearlong study of the financing of the regents system.' Senate Majority Leader Mike Gronstal, D-Council Bluffs, said he's heard 'significant reservations' and expects 'robust discussion' during the upcoming session.

Gronstal also questioned whether any other state has gone as far with 'performance-based budgeting' as the Board of Regents' proposal for Iowa.

'That kind of leads us to believe maybe it's not as well thought out as they think,' Gronstal said Monday. 'I don't think they have at all considered private colleges in their equation.'

Waterloo-Cedar Falls Courier reporter Christinia Crippes and Gazette reporter James Lynch contributed to this report.