AIB, University of Iowa merger is a positive, but raises issues

According to Iowa's Constitution, the state's seat of government is 'fixed by law” at the city of Des Moines, while the state university is in Iowa City. Now, it appears that state university is taking a Des Moines address.

Last week, the University of Iowa announced it will merge with AIB College of Business in Des Moines, taking over its 20-acre campus, currently serving more than 1,000 students. The UI is planting its flag in the middle of Iowa's largest city with hopes of enhancing its programs and its ability to attract Iowa students.

That's an important objective, given the Iowa Board of Regents' decision to reform the state university funding structure to reward enrollment of in-state undergraduate students. That formula puts the UI at a financial disadvantage when compared to the University of Northern Iowa and Iowa State.

For months, the predominant reaction from Iowa City to the regents' funding proposal has centered on that disadvantage and how lawmakers should step in to stop or alter the new formula. The AIB announcement seems to show the university is taking action not only to live with the proposed funding structure, but to thrive.

In this case, the merger seems to be a win-win. Working out the details and addressing the many concerns of AIB students and staff will be a challenge, to be sure. Still, we think this will be a positive development for the university and for Iowa. A Des Moines campus will offer opportunities and resources that unavailable to UI students.

But the merger also shows how the regents' proposal might affect the entire system of higher education in our state - a concern many already have raised.

Will the friendly fight between universities to recruit in-state students spark an expansion of the university system? Will Iowa State, for example, be moved to plant its flag in western Iowa, where legislators and development leaders have long advocated for a regents institution?

And will the scramble to enroll Iowa kids put enough pressure on Iowa's small, private colleges that otherwise healthy schools decide they can no longer compete? What if that competition comes to their doorstep in the form of a satellite campus?

These are potentially big changes, with high stakes beyond Iowa City, Ames and Cedar Falls. Lawmakers should consider them in discussing the regents proposal, and proceed thoughtfully, and with care.

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