Remarks to the Higher Education Subcommittee of the House Ways & Means Committee
Chairman Keegan, Representative Littlejohn, Representative Neilson, Ms. Powell,
Thank you for giving me the opportunity to talk with you today about Clemson University's critical funding needs and the challenges we all face because of declining state revenues. This committee has been extremely supportive of Clemson, and we sincerely appreciate the efforts you have made to protect funding for higher education.
We recognize that any investment of state funds comes at the expense of another investment. When presented with a funding request from any agency or constituency, the first question you must ask is: what benefit is the State receiving in return? I can confidently tell you that it would be hard to match Clemson's return on investment.
In recent months, we have announced:
- A $10 million gift from BMW Manufacturing, to help build a new industry sector - one that will move our automotive industry from just manufacturing to manufacturing and research, creating new, higher-paying jobs and long-term financial stability for this growing economic sector;
- A $10 million gift from Darla Moore and Richard Rainwater to endow the Eugene Moore School of Education and improve the quality of teaching and leadership in our K-12 system;
- A near doubling of research support in a three-year period, with external research support now exceeding $103 million a year. Our research has already generated more than 10 spin-off companies employing more than 100 people.
- A new collaboration with technical schools and partners in North Carolina to build the photonics industry in South Carolina.
Further, when you consider our high graduation rate, Clemson's cost-per-graduate is among the lowest in the state. Our graduates tend to move into higher-paying jobs in growing industrial sectors, adding more wealth to our state's economy. And despite recent tuition increases, Clemson remains ranked among the nation's best values in higher education by Kiplinger's and Money Magazine.
So in terms of jobs, personal wealth, and value for the tuition dollar, Clemson gives South Carolina an exceptional return on its investment.
What is remarkable is that these accomplishments occurred in times of budget cuts. They occurred because our faculty and staff are highly productive and creative about finding ways to generate funding and to do more with less. Imagine what they could do with more.
Our primary funding request, therefore, is for stability. The progress we are experiencing is threatened by continued erosion of basic funding. It is obvious that our current economy -- built largely on manufacturing and service industries -- is vulnerable. If we want to build a new economy -- one based on stable, knowledge-based industries, with higher-paying jobs and more personal wealth -- it will require a new compact between the state and its research universities. The marketing tools for the new economy are Ph.D.'s and research facilities, and that's our role. South Carolina needs to be increasing its investment in research universities.
Our second request is regulatory relief. Without spending a dime, the state legislature could pass legislation that will give research universities greater flexibility to leverage our resources and develop non-traditional sources of revenue. Let me make an important point: we are NOT asking for relief from accountability or from regulations related to the expenditure of state dollars. We ask for flexibility in the use of private and external dollars, so that we can generate more support for teaching, research and public service.
Third, we ask you to consider capital funding to help build the infrastructure required for the level of research needed to build this new economy. Specifically, Clemson needs a new facility for materials research, an expansion of our chemistry building, and funding for critical air quality and deferred maintenance projects. Lack of adequate space is the single factor that will stymie further research growth at Clemson.
Fourth, we seek continued support for the endowed chairs initiative and for the expansion of LIFE scholarship funding to graduate students. Currently, the endowed chairs funding is the only lottery revenue that goes directly to research universities. Scholarships benefit our students, but they do not add a dollar to our budgets.
Finally, there are several targeted initiatives in which seed money from the state could lead to significant external funding opportunities:
- $1 million for research in wireless communication could bring another National Science Foundation engineering research center to Clemson, which would bring substantial federal and industrial support. Our existing engineering research center in fibers and films has returned $4 for every dollar originally invested by the state.
- $1.03 million for a DNA Learning Center to work with K-12 teachers and students to help build their competency in biotechnology and create a workforce for this emerging industry.
- $310,000 for a Center for Safety Research and Education to keep our young people alive and healthy by addressing the six major safety and health risk behaviors threatening the futures of our children (accidents, alcohol and drug use, sexual activity, tobacco use, diet and physical inactivity).
- $1.2 million for Call Me MISTER, the program that has encouraged 150 African American young men to pursue teaching careers in South Carolina's elementary schools, by providing scholarships, mentoring and out-of-classroom experiences. This funding will allow the fourth and final group of MISTERs to begin their academic careers, fulfilling the promise made when the state funded the program. As we have from the beginning, Clemson will continue to pursue additional private and federal funding to support the program.
That summarizes our requests for education and general funding. Later this morning, Vice President John Kelly and I will meet with another committee to discuss critical needs in our Public Service Activities budget. But since we consider ourselves to be "One Clemson," I hope you'll allow me to make a brief comment on PSA.
PSA takes the knowledge and capabilities of our faculty directly into your communities. In recent months, whether it's because of the prospect of bioterrorism toward our food supply or pest-related health threats such as Mad Cow Disease and West Nile Virus, we all have a greater appreciation for the regulatory and food safety services provided by PSA. But all of these critical services are very much in jeopardy because of budget cuts.
Please consider the value and impact of our public service programs on the lives of your constituents back home. There is great service in our public service programs from Clemson.
Now let me address a specific question you have asked: How Clemson would manage an additional budget cut of 5% to 10%. I will tell you that those conversations have already begun on our campus. The challenge I have posed to our campus is this: Examine every dollar, every program, and determine which ones will move us toward our goal of becoming one of the nation's top 20 public universities, and which ones will build the new economy for South Carolina. Eliminate, downsize or merge those that don't move us in that specific direction. We are in the process of making those assessments and those very hard decisions. As I said earlier, every investment is made at the expense of something else.
In addition, we are reviewing every personnel option possible under state human resources regulations, ranging from another retirement incentive program to temporary furloughs and voluntary separations. If enacted, such programs would be strategically applied so that we emerge from this budget crisis better positioned for the future - with vacant positions that can be reallocated to academic priorities when funding improves.
The pledge that I will make is this: Before we take a tuition recommendation to our Board of Trustees, we will look for every possible dollar that can be saved internally.
In closing, let me say that I do not envy the task that you face. This is likely to be one of the most difficult legislative sessions in many years, and you will have many difficult decisions to make. On behalf of Clemson's faculty, staff and students, let me once again express my appreciation for the commitment you have made to the state and to us.
Thank you.
Cathy Sams (cathy.sams@pubaff.clemson.edu) Ph: (864) 656-4233 FAX: (864) 656-0812