CLIPS REPORT by fanzhongqing


									                                    CLIPS REPORT
 Clips Report is a selection of local, statewide and national news clips about the University of Missouri and higher
 education, compiled by UM System Strategic Communications as a service for UM System officials. The report may
 include articles dealing with controversial subjects, policy matters, higher education trends and other significant
 topics affecting the University.

 The articles are not screened for accuracy, balance of favorable and unfavorable reports, or representation of
 campuses, University Extension or media outlets. Some articles, especially those from Columbia newspapers, are
 written by students. The report is not an effort to measure the University’s public information efforts.

                                                   January 9, 2009

Lawmakers looking for more oversight of UM, 1
The Grade: UM board elects officers for 2009, 2
Former UM curator dies, 3
Updates on MU billion-dollar campaign, 6
Lafferres raise $5M for Mizzou engineering school, 8
Big 12 to repay MU for charter flight, 10
MU professor receives honorary doctorate, 12
Study boosts women in engineering field, 13
Editorial: MU newspapers’ future rough, but survivable, 14
Opinion: MU smoking bans should be enforced, 16
MU Historical Society stops archiving state newspapers because of budget concerns, 17
MU opens renovated bookstore, 19
MU students and street sign theft, 21
UMKC law student’s final gifts save lives of others, 23
Missouri S&T student project donates 5,000 diapers to young parents, 25
State research board awards $1.4 million to Innovation Center, MSU projects, 26
MSU denies request for budget plans, 27
The Grade: SLU increases scholarship for siblings, 31
Interim Webster U. chief is a finalist for top job, 32
Stephens College cuts tuition for post-graduate work, 33
Higher education a priority as Missouri legislative session begins, 34
Cancer claims life of Missouri education commissioner, 48
Missouri stem cell research critics refile lawsuit, 52
Colleges see slowest growth in state aid in 5 years, 53
Recession may drive more adult students to take online courses, 54
Colleges protect workers and cut elsewhere, 55
Colleges press new ideas as they brace for bumpy state-budget sessions, 58
Moody’s sees stiff challenges for colleges in next year, 61
Colleges offer extra aid to strapped students, 62
Tuition ammunition: A happy lesson on lending, 64
Recession leads to more tuition hikes, 66
Editorial: It’s time to improve academic, not just administrative, productivity, 68
Energy drain by computers stifles efforts at cost control, 71
Commentary: Students deserve a bailout too, 75
Economist describes a missing pool of low-income college applicants, 76
Princeton cuts budget as endowment slides, 78
UT pushes lawmakers to modify ‘top 10% rule,’ 79
Abilene Christian U. will continue iPhone giveaway, but gadgets add to worries about cheating, 80
Nebraska college suspends retirement contributions, 82
College 2.0: A wired way to rate professors – and to connect teachers, 84
Panel of college and industrial leaders urge Obama to ease limits on scientific exports and visas, 86
Columbia Daily Tribune
University autonomy under fire
Lawmakers looking at more oversight.
Thursday, January 8, 2009
Missouri lawmakers have indicated they want to strengthen the higher education department’s control over
public colleges and universities, which ultimately could chip away power from the University of Missouri’s Board
of Curators.
No specific plan has been laid out, but essentially the goal is to make sure the UM System understands it is
subordinate to the Department of Higher Education’s Coordinating Board when it comes to any proposal
requiring state resources, said Sen. Gary Nodler, R-Joplin.
"The reality is higher education interests cannot be met when they speak with multiple voices," he said. "It’s as
simple as that. If the higher education community remains divided, it will remain ineffective."
Nodler said he is not asking that the state control UM’s federal grants or endowment funds. He also said it has
nothing to do with the state wanting more control of university research, such as how researchers use embryonic
stem cells.
"What I’m talking about is a relationship between the higher education department and General Assembly in the
budgeting process where the University of Missouri is exactly the same as a regional institute," Nodler said.
The Missouri Constitution recognizes the University of Missouri as an independent entity, but Nodler said he
doesn’t interpret that to mean it is autonomous when it comes to how UM receives state funding.
"The University of Missouri does operate under the Department of Higher Education, but they don’t always act
like it," Nodler said. "I think there may be those associated with the university who don’t fully understand what"
the Constitutional requirement "means and read into it a certain degree of autonomy that is not there."
While lawmakers can’t legislate cooperation, Nodler said, they can attach financial incentives, such as allowing the
coordinating board to withhold larger chunks of state funding from universities that don’t cooperate.
Curator David Wasinger, a St. Louis attorney, said he’d need to see a concrete proposal on the table but is open
to the idea of streamlining higher education. "To have a more centralized board, if certain efficiencies were to be
had, I’d be open to discussing that," he said. "The devil’s in the details about how it would be structured, but
there is potential there. I’m not a turf war guy. Just because I’m on the Board of Curators doesn’t mean I’m not
open to the idea."
Rep. Chris Kelly, D-Columbia, said he’d support a statewide board but not the coordinating board as it currently
exists. One possibility, he said, would be to create a "board of curators that had the same constitutional
independence which had governing authority over all institutes of higher education in the state." Doing so would
require voters to approve a constitutional amendment.
Rep. Mary Still, D-Columbia, is also open to a more efficient system. "The question will be how to accomplish
that in a manner that recognizes the important role MU plays in the economy of our state," she said. "I don’t
want to devalue the role of our major public research university."
But UM has already lost some of the respect and value it once had, Kelly said, because curators failed to defend
the university when lawmakers adopted a statute that caps how much they can increase tuition. "Curators have
not been very zealous of guarding their own independence," Kelly said.
Wasinger agreed and pointed a finger at himself. "The board has been relatively passive, and we need the board
of curators to be more aggressive than it has been if we want to retain autonomy," he said. "That’s something we
need to look internally at if that’s the direction" the state "is heading."

The Kansas City Star
The Grade Blog: University of Missouri board elect officers for 2009
Saturday, January 3, 2009

Bo Fraser of Columbia was elected to a one-year term as chair of the University of Missouri Board of
Curators during the board’s December meeting in St. Louis.

Judy Haggard of Kennett, Mo., was elected vice chair.

The one-year terms began Thursday. Fraser, who served this year as the board’s vice chair, succeeds
curator Cheryl Walker of St. Louis.

Fraser is chairman of the board of Boone County National Bank and was the bank’s chairman and
CEO for more than 20 years.

Haggard is a family nurse practitioner at the SEMO Health Network in Kennett and an examiner for
the Missouri Substance Abuse Board.

The board of curators consists of nine members appointed by the governor with the consent of the

Curators serve six-year terms with three terms expiring every two years.

Springfield News-Leader
Former university curator Mary James dies at age 59
The Associated Press
Monday, January 5, 2009
Harrisonville -- Mary L. James, a former president of the University of Missouri system Board of Curators
and member of two newspaper families, died Friday.
James, 59, had been battling pancreatic cancer for several months, the Missouri Press Association said in
announcing the death.
She was the wife of William E. James, who is the publisher of the Daily Star-Journal in Warrensburg and
served as president of the Missouri Press Association in 1998.
Her late father, J.W. Brown Jr., was the association's president in 1963. Brown and his wife, Wanda Brown
of Harrisonville, were co-publishers of the Cass County Democrat-Missourian in Harrisonville.
A 1971 graduate of the University of Missouri, James taught school for several years in Texas and
Harrisonville and served 26 years as the human resources manager for Cass County Publishing Co., which
her family had owned.
James served on the Board of Curators of the four-campus University of Missouri system from 1999-2005.
She was appointed after writing to then-Gov. Mel Carnahan expressing pride that most of the top 10
students in her older son's high school graduating class were attending the university, and asking if she
could do anything for education in the state.
In October 2008, Mary and Bill James created the Mary L. James Scholarship Endowment in the
university's College of Education. The scholarship will be awarded for the first time in August.
The couple also supported the Community Newspaper Management Fund and the William E. James
Scholarship in the Missouri School of Journalism.
Information on other survivors besides Mary James' husband and mother was not available late Friday.
Funeral services are scheduled for 11:30 a.m. today at the United Methodist Church in Harrisonville.
Columbia Daily Tribune
Former curator remembered as an inspiration to others
Sunday, January 4, 2009
Former University of Missouri Board of Curators President Mary James’ "warm smile" and "even-keel
personality" will always be remembered by outgoing board Chairwoman Cheryl Walker.
"Whenever I would see her, her personality was so warm," Walker said yesterday. "It made you feel
welcome and comfortable. That’s what I’ve been thinking about during her illness and how I can carry her
smile with me, it’s so vivid."
James, 59, of Harrisonville, died Friday of pancreatic cancer. She served on the Board of Curators from
1999 to 2005 and was board president her last year. Walker and James served together on the board for two
years, and Walker said James remained an ardent supporter of the UM System.
"Even after she was no longer on the board and I’d have the occasion to see her at events, she had that
same level of engagement as when she was an active board member," Walker said. "She seemed to pay it
forward. Her commitment was never-ending."

In October, James and her husband, William James, created an endowed scholarship in her name for MU
College of Education students. The amount of their donation was not disclosed. The scholarship will be
awarded for the first time in August.
"Mary and her family have given consistently and generously of their time, energy, personal resources and
counsel," MU Chancellor Brady Deaton said in an October news release. "I am hopeful that the students
who enter MU on this new scholarship will be fully aware of Mary’s history and proud to know they are
following in her footsteps."
James graduated from the MU College of Education in 1971 and taught in San Antonio and Harrisonville.
She also was human resources manager for Cass County Publishing Co. for 26 years, according an MU
news release. She and her husband also have supported the Community Newspaper Management Fund and
the William E. James Scholarship at the MU School of Journalism.
Walker said James had a "profound interest" in student success. "Her passion, not unlike other curators,
began and ended with the students, and that played out a lot with her role" as board president, Walker said.
UM System Chief of Staff David Russell described James as a "tireless advocate for students, faculty and
"She treated the position as a full-time position, constantly visiting campuses, talking to faculty and
administrators on the phone, reviewing policies coming before the board for consideration," he said. "She
was very highly respected for her commitment. The university has lost a real friend."
Columbia Missourian
Former UM System Curator Mary L. James dies at 59
Saturday, January 3, 2009
Mary L. James dedicated her life to public service in the fields of education and health care.
In 1999, Gov. Mel Carnahan appointed her to the UM System Board of Curators. She became board
president in 2005. Mrs. James also was active in the Chancellor’s Fund for Excellence, the Advisory and
Development Committee within the College of Education, the Griffiths Leadership Society for Women and
the Jefferson Club.
“Mary loved the university, the whole system and, in particular, the Columbia campus. It was a big part of
her life for a number of years,” her husband, William James, said. “When our last son, Doug, graduated
from high school, she noted that the top 10 graduates were all attending MU and called Gov. Mel Carnahan
and asked if there was something she could do. That’s when he appointed her to the Board of Curators.”
Mrs. James of Harrisonville died Friday, Jan. 2, 2009, at Kansas City Hospice House in Kansas City of
pancreatic cancer. She was 59.
She was born May 6, 1949, in West Plains to James W. and Wanda A. (Alston) Brown Jr. She graduated
from Harrisonville High School in 1967 and received a bachelor's degree in education from MU and a
master's degree in public administration from the University of Kansas.
She married William E. James on Feb. 6, 1971, at the United Methodist Church in Harrisonville.
She served an active role in the Harrisonville community.
From 1972 to 1975 she was a teacher for Cass R-IX School District in Harrisonville. From 2006 to 2008,
she was the adult and community education coordinator for the Cass Career Center.
Mrs. James served as a trustee for the Harrisonville Public School Foundation. In 2004, she was one of the
first to be inducted into the Harrisonville High School Distinguished Alumni Wall of Fame.

In 2005, the UM system Alumni Alliance recognized her for outstanding alumni service. And in 2006, MU
recognized her as a Distinguished Friend to the School of Nursing.
In health care, she worked as the executive director of the Cass Regional Medical Center Foundation for
two years and as a foundation board member, including serving as vice chairwoman. Mrs. James also served
as a member of the board of the Healthcare Foundation of Greater Kansas City.
Mrs. James also helped others by serving 12 years on the Harrisonville Park Board, including serving as
chair. While on the board, she advocated for a community sales tax that led to building a pool and
maintenance facility for the city, wrote the grant and raised funds to build an outdoor theater and helped in
preliminary planning for a community center.
Mrs. James was also active in the newspaper business. She was first lady of the Missouri Press Association
in 1998 while her husband was president and was human resources manager at the family-owned Cass
County Publishing Co. from 1975 to 2000.
She was a member of the Harrisonville United Methodist Church, the Harrisonville Chamber of
Commerce, Chapter G.R. PEO, Delta Gamma Fraternity and the MU Alumni Association.
She is survived by her husband and mother of Harrisonville; two sons, Alex James of Overland Park, Kan.,
and Doug James of Memphis; one sister, Jean Snider of Harrisonville; and one granddaughter.
Visitation will be from 10 to 11:30 a.m. Monday at the United Methodist Church, 2600 E. Mechanic St., in
Harrisonville. Services will follow at 11:30 a.m. at the church.
Memorials may be made to the Mary L. James Endowed Scholarship, MU College of Education, 114 Hill
Hall Columbia, MO 65211; or Kansas City Hospice House, 12000 Wornall Road, Kansas City, MO 64145.
Columbia Daily Tribune
Former UM curator dies after cancer fight
Saturday, January 3, 2009
HARRISONVILLE (AP) - Mary James, a former president of the University of Missouri System Board of
Curators and member of two newspaper families, died yesterday.
James, 59, had been battling pancreatic cancer for several months, the Missouri Press Association said in
announcing the death.
She was the wife of William James, who is the publisher of the Daily Star-Journal in Warrensburg and
served as president of the Missouri Press Association in 1998.
Her late father, J.W. Brown Jr., was the association’s president in 1963. Brown and his wife, Wanda Brown
of Harrisonville, were co-publishers of the Cass County Democrat-Missourian in Harrisonville.
A 1971 graduate of the University of Missouri, James taught school for several years in Texas and
Harrisonville and served 26 years as the human resources manager for Cass County Publishing Co., which
her family had owned.
James served on the Board of Curators of the four-campus University of Missouri system from 1999 to
2005. She was appointed after writing to then-Gov. Mel Carnahan expressing pride that most of the top 10
students in her older son’s high school graduating class were attending the university and asking whether
she could do anything for education in the state.

The Chronicle of Higher Education
Updates on billion-dollar campaigns at 33 universities
Friday, January 9, 2009
The 33 American universities that are seeking to raise at least $1-billion collected a total of $423.2-million in gifts
and pledges during the last month for which they had data available.
The campaign with the largest gain in the last month was the Johns Hopkins University, with $67-million. That
increase brought the campaign's total to nearly $3.5-billion. The university had been seeking to raise $3.2-billion.
The 33 universities—each with its most recent total, last month’s increase (if reported), the original goal, and the
planned completion date—are as follows:
Boston College, $538.8-million as of November 30 (increase of $2.5-million in the last month); the goal is $1.5-
billion by 2015.
Brandeis University, $812-million as of November 30 (increase of $4-million in the last month); the goal is $1.22-
billion by 2013.
Brown University, $1.282-billion as of November 30 (increase of $10-million in the last month); the goal is $1.4-
billion by 2010.
Carnegie Mellon University, $560-million as of November 30 (increase of $3.5-million in the last month); the
goal is $1-billion by 2013.
Columbia University, $2.991-billion as of November 30 (increase of $40-million in the last month); the goal is $4-
billion by 2011.
Cornell University, $2.342-billion as of November 30 (increase of $21.7-million in the last month); the goal is $4-
billion by 2011.
Dartmouth College, $1.15-billion as of November 30 (increase of $10-million in the last month); the goal is $1.3-
billion by 2009.
Emory University, $880.7-million as of November 30 (increase of $24.3-million in the last month); the goal is
$1.6-billion by 2012.
Indiana University at Bloomington, $868.3-million as of November 30 (increase of $9.4-million in the last
month); the goal is $1-billion by 2010.
Johns Hopkins University, $3.492-billion as of November 30 (increase of $67-million in the last month); the goal
was $3.2-billion by 2008.
Princeton University, $909.4-million as of November 30 (increase of $5.6-million in the last month); the goal is
$1.75-billion by 2012.
Rensselaer Polytechnic Institute, $1.405-billion as of November 30 (increase of $2.3-million in the last month);
the goal is $1.4-billion by 2009.
Rice University, $506.6-million as of November 30 (increase of $6.6-million in the last month); the goal is $1-
billion by 2012.
Stanford University, $3.824-billion as of August 31 (the university provides annual updates only); the goal is $4.3-
billion by 2011.
State University of New York system, $2.37-billion as of October 31; the goal is $3-billion by 2012.
Syracuse University, $608-million as of November 30 (increase of $17-million in the last month); the goal is $1-
billion by 2012.
Tufts University, $930.1-million as of November 30 (increase of $9.3-million in the last month); the goal is $1.2-
billion by 2011.
The University of California at Berkeley, $1.35-billion as of November 30 (increase of $10-million in the last
month); the goal is $3-billion by 2013.

The University of Florida, $772.5-million as of November 30 (increase of $4.1-million in the last month); the goal
is $1.5-billion by 2012.
The University of Illinois, $1.515-billion as of November 30 (increase of $13-million in the last month); the goal
is $2.25-billion by 2011.
The University of Maryland at College Park, $557.2-million as of November 30 (increase of $1.8-million in the
last month); the goal is $1-billion by 2011.
The University of Michigan, $3.138-billion as of November 30 (increase of $23-million in the last month); the
goal is $2.5-billion by 2008.
The University of Missouri at Columbia, $1.008-billion as of November 30 (increase of $8-million in the last
month); the goal is $1-billion by 2008.
The University of Notre Dame, $1.4-billion as of November 30 (increase of $9.5-million in the last month); the
goal is $1.5-billion by 2011.
The University of Pennsylvania, $2.226-billion as of November 30 (increase of $29-million in the last month); the
goal is $3.5-billion by 2012.
The University of Pittsburgh, $1.305-billion as of November 30 (increase of $10-million in the last month); the
goal is $2-billion by 2014.
The University of Tennessee, $783-million as of November 30 (increase of $9.9-million in the last month); the
goal is $1-billion by 2011.
The University of Texas at Austin, $723-million as of November 30 (increase of $10.5-million in the last month);
the goal is $3-billion by 2014.
The University of Utah, $575.7-million as of November 30 (increase of $10.2-million in the last month); the goal
is $1.2-billion by 2013.
The University of Virginia, $1.811-billion as of November 30 (increase of $12.8-million in the last month); the
goal is $3-billion by 2011.
Vanderbilt University, $1.618-billion as of November 30 (increase of $5.7-million in the last month); the goal is
$1.75-billion by 2010.
Virginia Tech, $721.9-million as of November 30 (increase of $7.4-million in the last month); the goal is $1-
billion by 2010.
Yale University, $2.43-billion as of November 30 (increase of $25-million in the last month); the goal is $3.5-
billion by 2011.
Over the past 12 months, universities that are seeking to raise at least $1-billion collected a total of $9.131-billion
in gifts and pledges.
A list of 78 continuing and completed billion-dollar campaigns is available here.
A list of all the capital campaigns that The Chronicle has tracked is available here.
Monthly comparisons are based on totals previously reported in The Chronicle. We do not adjust figures to
account for pledges that are not fulfilled as scheduled.

Columbia Daily Tribune
MU graduates pledge another $5 million
Thursday, January 8, 2009

University of Missouri graduates Thomas and Nell Lafferre, who already have a campus building
named after them, have pledged an additional $5 million to the College of Engineering as part of the
For All We Call Mizzou billion-dollar fundraising campaign.

The couple pledged $7 million in 2004, which included outright donations and estate gifts, according
to an MU news release. The engineering school’s Engineering Building East was renamed "Thomas
and Nell Lafferre Hall" in 2004 after their donation was announced. They also pledged $500,000
throughout the eight-year campaign to MU Libraries.

The Lafferres’ latest estate gift of $5 million was pledged as a "challenge" gift to encourage others to
donate to the College of Engineering, Director of Development Communication Beth Hammock said.

"They promised to match gifts made to the College of Engineering up to $5 million," she said. "They
gave $5 million, and other donors gave $5 million from March through the end of October."

An estate gift is a pledge by a donor to bequeath a portion or all of his or her estate to the university,
Hammock said. About one-third of all donations pledged during the For All We Call Mizzou campaign
were in the form of deferred gifts.

The Lafferres’ gift will be "unrestricted funds" that allow the dean of the college to determine how to
allocate the funds. Some MU administrators have said unrestricted gifts are particularly helpful when
there are budget crises such as that faced by the university because the gifts aren’t bound to specific
use. In a previous interview, MU Chancellor Brady Deaton said unrestricted gifts can help MU fund
scholarships and faculty salaries when problems with state appropriations arise. The University of
Missouri System has been told by the state Department of Higher Education to prepare for potential
state appropriation cuts of between 15 percent and 25 percent.

"The Lafferres and the donors who met the matching challenge demonstrated their commitment to
the University of Missouri by helping the College of Engineering achieve its campaign goal," Deaton
said in a news release. "Especially during these difficult economic times, our donors realize that giving
to MU is a sound investment, ensuring that MU will continue to excel in educating the state’s and
nation’s students while solving problems that affect our health and environment."

Thomas Lafferre received a bachelor’s degree from the College of Engineering in 1956, and Nell
Lafferre is a graduate of the College of Education, according to MU. The fundraising campaign, which
reached the billion-dollar mark in November, was to officially end Dec. 31. But some donation-related
documents still are being finalized, Hammock said, and gifts accepted through the end of this month
will count in the total. To date, the campaign has raised more than $1.031 billion, and the final total
will be released in early February.

St. Louis Business Journal
Lafferres raise $5M for Mizzou engineering school
Wednesday, January 7, 2009

University of Missouri alumnus Thomas Lafferre and his wife, Nell, made a challenge donation that
resulted in a $5 million estate gift to the Columbia, Mo., campus’s engineering college.

The Lafferres matched the donations and pledges of other donors by increasing the amount of the
estate gift as the other gifts were received. The couple asked that the $5 million gift be designated to an
unrestricted fund, allowing College of Engineering Dean James Thompson to make strategic
investments in the college, according to a release from the university.

Thomas Lafferre received a bachelor's degree from the College of Engineering in 1956 and a master's
degree in engineering management from Washington University in St. Louis in 1967. He retired
from a career with Monsanto Co. in 1993.Nell, attended the University of Missouri’s College of
Education. Following their retirement, the couple settled in Brentwood, Tenn.

The Lafferres have donated $12 million to the College of Engineering, having made a $7 million
commitment to the college in 2004 that included both outright and estate gifts.

Engineering Building East on the Columbia campus is undergoing a major renovation and expansion,
and was renamed Thomas and Nell Lafferre Hall in their honor.

The University of Missouri, with campuses in Columbia, Kansas City, Rolla and St. Louis, is a land-
grant, public higher education system.

Columbia Daily Tribune
University delegates fly in style
Big 12 to repay MU for charter flight.
Friday, January 2, 2009

The University of Missouri sent 10 system and campus administrators on a chartered plane to Monday
night’s Alamo Bowl game in San Antonio as the "official party delegation" to represent the university.

Athletic Director Mike Alden conceded that with the bad economy and recent announcements that the
UM System could face significant cuts in state appropriations, sending administrators on a chartered
flight could look like an extravagant expense. But he said it doesn’t actually cost the university anything
because funding comes from the bowl payout and the athletic department.

"I know it’s like, ‘Holy cow, there are all these financial issues, and we’re sending people on planes,’ "
he said. "But it’s not like that. None of the money comes from the university. It comes from the
allotment from the bowls that the Big 12" Conference "kicks to the schools. We’re required to have a
team there, to have the band there and to have an official party there."

Most bowl games, including the Alamo Bowl, expect an "official party delegation" to attend the game
and other scheduled events as MU ambassadors, Alden said.

The bulk of the Athletic Department’s cost to send players, coaches, administrators and Marching
Mizzou is reimbursed by the Big 12 Conference, which receives payouts from bowls. Athletic
Department spokesman Chad Moller said the final payout hasn’t been finalized, but it likely will be
between $1.3 million and $1.5 million. The money covers travel, hotel and meal costs for those
attending, Alden said.

Ten administrators from the Columbia campus and the UM System attended the game, campus
spokeswoman Mary Jo Banken said. They were UM System President Gary Forsee; outgoing Board of
Curators Chairwoman Cheryl Walker; MU Deputy Chancellor Mike Middleton; MU Budget Director
Tim Rooney; Jackie Jones, MU vice chancellor for administrative services; Chris Koukola, assistant to
the chancellor for university affairs; Todd McCubbin, MU Alumni Association executive director;
Betsy Rodriguez, UM System vice president for human resources; Mike Nichols, UM System vice
president for research and economic development; and Steve Graham, UM System interim vice
president for academic affairs.

Banken said Chancellor Brady Deaton was unable to attend because of a death in his family. The
chancellor has a "predetermined list" of senior staff members to whom he sends invitations when MU
makes a bowl appearance, she said.

Each member of the official delegation is allowed to bring one guest paid for through the
reimbursement, Alden said. If administrators want to bring additional guests they must pay for those
guests themselves.

The administrators traveled to Texas on a chartered plane. However, none of the money used to pay
for the flight came from MU’s general operating budget, Alden said. The cost of the plane is included
in the Athletic Department’s total expenditures. Any expenses incurred by the department beyond the
reimbursement would be paid for by the department’s budget, Alden said, but he doesn’t expect costs
to surpass the payout MU receives. He said calculations of the final cost likely won’t be available until
the end of the month after all expense reports are turned in.

Alden said administrators representing bowl-game schools are expected to attend various events
sponsored in host cities, including parades and luncheons. "These bowl games are huge economic
developments for these cities and they want those people there," he said.

Bowl organizers also expect a certain number of fans to attend the game from each school. Alden said
if all tickets allocated to a school aren’t sold, the athletic department could have to cover the cost of
the tickets. He said MU didn’t sell as many tickets this year as they did last year for the Cotton Bowl,
but he still expects expenditures to be "close to even."

"My gut tells me we’re pretty close," he said.

The Mizzou Alumni Association teamed up with the Athletic Department to fly some fans to the game
on the chartered flight occupied by administrators, Alumni Association Director Todd McCubbin said.
The association sells packages every year that includes tickets to the game and accommodations at the
hotel where the team is staying. For an extra fee, fans can fly on a chartered plane from Missouri to the
city where a bowl is being played. For last year’s Cotton Bowl in Dallas, more than 500 fans bought air
and land travel packages; only about 160 fans purchased packages this year, and about 80 of them
chose the flight option, McCubbin said.

The cost of the package that included airfare was $1,439 per person for a two-person hotel room this
year. Because only about 80 fans purchased the flight option, the Alumni Association didn’t meet the
minimum number of people to charter a separate plane, so the fans joined administrators on their
flight, McCubbin said. Alden said some money from the fan packages would be used to offset some of
the cost of the plane. McCubbin blamed the economy for this year’s lower turnout.

"If you look across all of college football in terms of ticket sales, it’s down," he said. "In this economy
people are cutting out luxuries, and there aren’t nearly as many people traveling" to games.

The Hindu
Karnatak varsity recommends doctorate for Madhavan Nair
Saturday, January 3, 2009

DHARWAD: The Academic Council of Karnatak University, Dharwad, on Friday resolved to
recommend the names of four eminent personalities, including ISRO chairman G. Madhavan Nair, for
awarding honorary doctoral degrees.

At the Academic Council meeting chaired by Vice-Chancellor S.K. Saidapur, the council members
unanimously took a decision in this regard. Mr. Saidapur announced that Academic Council would
forward the names to the Syndicate meeting of the university, which would subsequently be sent to the
Governor for approval.

The names of other eminent personalities, whose names were proposed for honorary doctoral degrees
are Yakshagana artiste Keremane Mahabala Hegde, seer of Ilkal Sri Mahantappa Swamiji and
nanoscientist from Karnataka presently based in United States Kattesh Katti.
Hon Doctorates to Madhavan Nair, Dr. Katti
Friday, January 2, 2009

The Karnataka University today decided to confer Honorary Doctorates on ISRO Chief G Madhavan
Nair, Nano scientist Kattesh Katti, Yakshgana exponent Keremane Shambhu Hegde and Mahant
Swamiji of Illakal Math.

A decision to recommend their names to Governor Rameshwar Thakur, who is also the Chancellor,
was taken by the University Academic Council, which met here.

Columbia Daily Tribune
Study boosts women in engineering field
Sunday, January 4, 2009
Finding ways to increase self-confidence through classroom work might help recruit and retain women in
traditionally male-dominated engineering fields, a University of Missouri researcher said after conducting a study
that looks at how self-perception can affect women’s success in the field.
Rose Marra, an associate professor inthe MU College of Education’s school of information science and learning
technologies, and Barbara Bogue of Pennsylvania State University completed a two-year study of self-efficacy
data from 196 female undergraduate engineering students at five unidentified universities.
The study will be published in the January issue of the Journal of Engineering Education and was funded by the
National Science Foundation.
Marra said a woman’s confidence in her studies could be shaken by negative feedback from peers and faculty or
poor exam scores. Marra said results of the study suggest more encouragement in classrooms is needed and that
"consistent real-life examples" allowing students "to get their hands dirty" could help recruit and retain women
engineering students.
"There are a number of activities outside the classroom to raise awareness" about women engineers, she said.
"We’d like to see the results of this study incorporated into course designs. It’s really the classrooms we’re
interested in."
According to the MU Registrar’s Office, women represent 13.2 percent of more than 1,900 undergraduate
engineering students this fall. Despite an increase of about 200 engineering students compared to 2007, the
percentage of women remained the same.
Marra said there is an increasing need for engineering students in general and especially for women and
minorities in engineering.
About 85 percent of undergraduate students enrolled in the College of Engineering this past fall identified
themselves as white, according to the Registrar’s Office.
"We need more engineers, period," she said. "We need to draw engineers from untapped sources, we need to try
and get more women and more minorities."
Marra said her interest in conducting the study was partly influenced by her experiences in software product
development at AT&T Bell Laboratories in the late 1980s and early ’90s.
"I wasn’t as isolated as women mechanical engineers might feel, but I did have some personal experience," she
Self-efficacy refers to a person’s belief in his or her capabilities to achieve a particular outcome, according to the
study. Questions were posed to students about career expectations, feelings of inclusion, self-efficacy in dealing
with course difficulty and math expectations. The study found that "feelings of inclusion" decreased during the
research but self-perception or self-efficacy improved when students were asked about their level of confidence.
The study also found a slight decrease when students were asked to rate success in their coursework when
success is defined by achieving A or B grades.
Marra said the study is just one step toward finding ways to recruit and retain women and minorities in
engineering. She said more studies about minorities and engineering education need to be conducted. She and
Bogue have been working on a new study to address students’ perceptions of what takes place in engineering
"We want to see how students perceive faculty interaction and student interaction," she said. "We’re encouraged
to continue these studies and keeping a focus on issues of retention of women."

Columbia Missourian
Editorial: Newspapers’ future rough, but survivable
Thursday, January 8, 2009

Your new year was made a little brighter, I hope, by last week's announcement that the future of our
Columbia Missourian has been assured for at least another three years. Mine sure was.

That other newspaper in town looks even healthier. Its associate publisher, Vicki Russell, is the new
president of the Missouri Press Association. In the most recent issue of the MPA's house organ, she
says, "The Trib is doing fine."

You certainly couldn't say that about the newspaper industry — or the broader news industry — as a
whole. The news about the news is almost all bad. Every day, it seems, there's another report of layoffs
or reduced content or looming bankruptcies. Just a few days ago, Lee Enterprises, the company that
owns the St. Louis Post-Dispatch, was notified that its stock price has fallen so low that it is in danger
of being delisted by the New York Stock Exchange. How low? Try 40 cents a share. In 2005, when
Lee bought the Post, it was trading at $42 a share.

Across the state, Mark Zieman, publisher of the Kansas City Star, felt obliged last month to write a
column asserting that the Star is doing just fine, thank you. Readers of his paper might ask why, if
that's so — content is being cut and the staff reduced.

The answer to that question explains a lot of the ills besetting an industry that I'd argue is at least as
important to the democracy as the auto industry is to the economy.

The Star, like the Post but unlike the Missourian and the Tribune, is owned by an out-of-state
company. In the case of the Star, that's McClatchy, which was once a highly profitable, family-owned
organization. After McClatchy went public, its stock traded for as much as $70 a share. Now you could
buy a share for less than $2, not that you'd want to.

Other newspaper companies, such as the Tribune Co. in Chicago and the Journal Register Co. back
east, are in even worse shape.

What happened? A combination of bad management and bad luck. The bad management part was
driven by greed, a reality not unique to newspapers. McClatchy and Lee both decided that bigger was
better. Both borrowed heavily and bought. Lee bought the Post, which was twice as big as any of Lee's
other 50 papers. McClatchy leaped even further, purchasing most of the former Knight-Ridder chain,
including papers in Kansas City, Fort Worth, Miami and Charlotte.

Meanwhile, a real estate mogul in Chicago named Sam Zell took the biggest plunge of all, buying the
Tribune Company, owner of the Chicago Tribune, Los Angeles Times, Baltimore Sun and other big
papers, as well as the Chicago Cubs. He did that, of course, with other people's money. That's what
high rollers do.

Then came the reckoning. Though none of these geniuses saw it, the business model that had made
newspapers rich for generations was already under threat from the Internet, which lures away readers
and advertisers. So the days of profit margins above 20 percent, which managements and the stock
market had come to count on, were gone, probably forever.

And you've probably noticed that we're entering our second year of recession. Hardly anybody saw
that coming, either.

The newspapers we read about as being in trouble are mainly those that are not only suffering from
the recession but are buried under a mountain of debt. The Star, which publisher Zieman said is
making a nice profit, is being milked to make McClatchy's debt payments. The same thing is happening
in St. Louis, Los Angeles and Chicago.

Russell told the Missouri Press News, "What we don't know is how the newspapers that are having
trouble will look when the economy turns around. I would not be surprised to see some of the big
newspaper companies go bankrupt."

Neither would I. That might not be an altogether bad thing, as Vicki notes, for journalism and for the
democracy, if they were succeeded by locally owned, maybe even journalist-controlled, publications in
print or online. (If you want to see pioneering models of what that might look like, go online to or

Call me Pollyanna, but I don't think the newspaper is doomed.

The New York Times, I'm guessing, will survive. It's profitable, family-run and not burdened by too
much debt. Same with the Washington Post and the Wall Street Journal. The Gannett empire is
probably solid enough.

The Columbia Daily Tribune will be fine, too, I expect. The Internet is more a blessing than a curse for
truly local news and advertising.

And our Missourian lives to print another day.

George Kennedy is a former managing editor at the Missourian and professor emeritus at the Missouri School of

Columbia Missourian
Opinion: Smoking bans should be enforced
Wednesday, January 7, 2009

With the arrival of the New Year, many of us have made yet another resolution to make our butts
smaller. MU is no exception. By 2014, the university hopes to ban smoking and tobacco on campus.

Now, MU is planning to do this in baby steps. On Jan. 20, an ordinance banning smoking within 20
feet of university buildings will go into effect. This means of course, dormitories, class buildings,
anything associated with MU will now be smoke-free for at least a couple feet of walking distance. Or
will it?

I’m not a smoker myself, but I notice it quite often around town. Back in December, my friends and I
were out celebrating my graduation. We went to a new bar, Room 38, in The District. As we walked up
to the entrance, there were about 10 people standing outside the door smoking. I walked through the
smoke to get into the bar, only to find the smoke had come in and lingered by the entrance.

Now, Room 38 was a great place, ultra-chic. It had good times written all over it, and I am in no way
putting down the establishment, because my friends and I enjoyed the place very much. But this trend
of just barely walking outside the building to light up is rampant despite a city ordinance that went into
effect more than two years ago. If no one is enforcing it in the city of Columbia, should we really
expect anyone to enforce it at the university? Walk by any coffee shop and their outdoor seating is
directly by their doorway. There is no 20-foot buffer keeping you from inhaling as you enter the

I am happy the university is taking steps to make the campus a healthier one and also maybe cut back
on the litter cigarette butts create on our beautiful city. I see no difference between flicking a cigarette
in the street and dumping your McDonald's coffee cup on the sidewalk. Litter is litter, and the world is
not an ashtray. Billions of cigarettes are dropped on our streets, highways and sidewalks every day,
according to

As someone who is allergic to smoke, walking outside to a cloud from someone waiting to finish their
cigarette as they hold the door open to go inside is the equivalent of someone with a pet dander allergy
having a cat rubbed against his or her face as they walk down the street. It doesn’t seem fair to suffer
for another person’s addiction.

My good friend Stephen is a nonsmoker. But he brought up the point that smokers pay to go to school
here as well, and maybe it isn’t right to restrict their habits while on campus. I can see the point. But
smoking is something that affects more than just the person who chooses to smoke. I didn’t pay
tuition to MU to have clouds of smoke impede on my fresh Midwestern air. Now, I am opposed to the
limiting of anyone’s rights as an American. But voting is a right. Equal job opportunity is a right.
Smoking is a choice, and being able to stop others from smoking around you should also be a choice
the university and individuals should be able to make.

Tracy Barnes graduated from MU in 2008 with degrees in journalism and English. She is a former copy editor and
multimedia editor for the Missourian. She can be contacted at

Columbia Missourian
Historical Society stops archiving state newspapers because of budget concerns
Tuesday, January 6, 2009

COLUMBIA — Print is on the way out.

That’s the prevailing sentiment throughout most of the newspaper world as it grapples with a slumping
economy and the migration of readers to the Web.

Yet for more than a century, the State Historical Society of Missouri has carefully stowed the state’s
daily newspapers in the basement of Ellis Library. Looming budget cuts have at least temporarily
ended this tradition.

In 2008, Historical Society Executive Director Gary Kremer decided to cut the service and curtail
others instead of eliminating jobs.

Shed services or employees? It’s the conundrum causing a chorus of groans in the offices of state
agencies as the economy and Missouri’s budget appear likely to endure leaner times.

The Historical Society’s inability to archive newspapers on microfilm might seem trivial but could
signal just the beginning of cutbacks for the agencies that fall under the University of Missouri
System’s Other Curators Programs.

The Missouri Institute of Mental Health and the Missouri Kidney Program have the same UM System
classification as the Historical Society and were listed in a budget cut scenario report submitted to the
state on Dec. 18.

The Missouri Institute of Mental Health would have to eliminate jobs if its funding is cut by 15
percent. A 25 percent reduction would lead to the closing of the institute’s Continuing Education
program and further job cuts, according to the report.

The report also states that cuts of 15 percent to 25 percent for the Missouri Kidney Program would
leave Missourians with End-Stage Renal Disease without life-sustaining services.

The scenarios described in the report would place other managers in the same position as Kremer,
who is trying to balance the Historical Society’s mission statement against job losses.

"I'm trying very hard to avoid laying people off; that's always the last thing you want to do," Kremer

It’s a difficult task, given that the vast majority of the Historical Society’s state funding pays for
workers’ salaries and benefits. And still, the decision won’t necessarily preserve the Historical Society’s
work force.

A UM System-wide hiring freeze instituted on Nov. 17 has left many vacated positions unfilled.

“We have a woman across the hall who will retire at the end of January,” Kremer said. “The good
news is that we won’t we won’t be paying her salary; the bad news is we won’t have her, and it’s a
position that we can’t fill.”

But Walt Meyer, who has used the newspaper archive for the past 10 years to research high school
sports, worries that some of the state’s history could be lost.

“There might be people 30 years from now that will be interested in the same kind of research that I’m
doing, and it’ll be impossible if there aren’t any archives,” Meyer said.

The Historical Society has also aggressively been collecting works by Missouri artists, but this practice
has also been curtailed until funding improves.

And if the Missouri General Assembly were to cut funding by 25 percent, the Historical Society would
have to find a way to come up with the $50,000 it costs to publish and distribute its scholarly journal,
which hasn’t missed an issue in more than 100 years.

“I’d hate to be the executive director who presided over the inability to publish an issue of the
Missouri Historical Review,” Kremer said.

Potential cuts in state funding have made the Historical Society more reliant on individual
contributions and membership fees, which are becoming scarce. This could mean additional cuts in

“In a tough economy, people pull back and focus on their own needs,” Kremer said. “In any given
year we need to raise $300,000 to $400,000. Now we may need to raise double that.”

Despite the prospect of fewer state dollars, Kremer was sympathetic to administrators and members of
the General Assembly, who have been forced to make tough decisions.

“If there are only so many dollars and you’re competing with institutions that deal with living or dying,
it is understandable that the study of history might take a back seat,” Kremer said. “But I think it’s

Columbia Daily Tribune
MU opens renovated bookstore
Rest of $63 million project under way.
Monday, January 5, 2009

University Bookstore employees made a mad dash this past weekend to get the store’s new location
ready to open today.

"Up until Friday, there were still construction fences in place around the building," spokeswoman
Michelle Froese said this morning with a smile while looking around at student employees who
continued to stock shelves and help guests. "They really got a lot done over the weekend."

The bookstore and TigerTech store were the first to take up residency in a new section of the
expanding MU student center, which will eventually take the place of Brady Commons. The $63
million project is being completed in two phases. Phase One, a 102,550-square-foot addition to Brady
Commons, is reaching completion with the opening of the retail spaces. A temporary food court and
the Center for Student Involvement are still being finished in the new building. The food court should
open next Monday, and student organizations can move into their new space on the second floor of
the building around March 1, Froese said.

The second phase of the project will renovate the gutted Brady Commons building and add a larger
food and entertainment court as well as offices for student services and media organizations such as
the campus radio station and newspaper. Phase Two is expected to be completed by 2011. Brady
Commons is "basically empty," Froese said, though student organizations still have access to the
basement, where their current offices remain until they can move into the new building.

Froese said she knows some people might wonder why the student center is being built now with the
economy sliding, but she said funding had been previously approved by students. "All of the university
construction projects you see happening on campus right now were initiated a number of years ago,"
she said.

The idea for a new student center was first tossed around in 2000 after students expressed concerns
that Brady Commons was too small, Froese said. A student referendum in 2005 secured 50 percent of
the funding for the project through a student fee increase of $35 per semester, which goes into effect
this semester. Auxiliaries such as the bookstore and Campus Dining Services will pay for the other
half, Froese said. The new center will be about twice the size of Brady Commons, she said.

"The bookstore is one of the first tenants to move into the new student center, but this project is not
about building a new bookstore," she said. The "bookstore and TigerTech are paying the construction
and design costs of their location in the new student center. To further save money, the fixtures from
the current bookstore and TigerTech are being reused in the new location."

Brandon Fick, a graduate student in MU’s hotel and restaurant management program who has worked
for the bookstore for four years, said he likes the new layout and thinks it will help students find
coursework more easily than the old cramped space in Brady Commons.

"I love it," he said while stocking a shelf with textbooks. "Everything’s more open now, and it seems
more friendly that way. I think students are going to love it. After being on other campuses, our
bookstore wasn’t up to par" compared to other bookstores "until now."

Columbia Missourian
New MU Student Center will open Monday
Sunday, January 4, 2009

COLUMBIA — Beginning Monday, there will be only one way for students to access University
Bookstore and other Brady Commons services.

The new MU Student Center will open with one entrance at the southeast corner of Hitt and Rollins
streets. This will be the only way to access University Bookstore, Truman’s Takeout, the student ID
office, UMB Bank and Tiger Tech until construction is complete.

Michelle Froese, center spokeswoman, said the southeast corner is the most practical given the
construction layout.

Phase I of the new center will be opening as construction begins on the second phase in what is now
Brady Commons.

According to the center's Web site, the project was split into two phases to allow the services Brady
Commons currently offers to continue during construction. Phase II should be completed by spring

Froese said in an e-mail that planning for the project began in fall 2000 in response to student
concerns that Brady Commons was too small to meet their needs.

In 2005, MU students voted to pay for 50 percent of the project, and Student Affairs Auxiliaries agreed
to pay for the other half. The $35-per-semester increase, which starts this month, will raise the student
union fee from $24.65 to $59.65.

Froese has worked to notify students that they will be unable to use the former Brady Commons
entrances when classes resume Jan. 20. Signs are posted informing students of the change, and staff
will help direct traffic a few days before classes resume.

The bookstore will reopen Monday. Truman’s Takeout will open Jan. 12 to serve primarily fresh food
because regular food services will be closed until Phase II is completed.

The second floor of Phase I will house the Leadership Lounge, a chamber auditorium, the Missouri
Students Association, Greek Life and services and resources for the more than 450 student

Other services will be expanded while the remainder of the student center is under construction.

The Bookmark Cafe in Ellis Library and J-Cafe in the Reynolds Institute of Journalism have added
more food options, and Bengal Lair in Memorial Union has provided more seating.

“The goal is to provide as much as possible while Brady is offline,” Froese said.

Columbia Missourian
Street sign theft a costly ‘tradition’
Thursday, January 8, 2009
 COLUMBIA — A metal pole at the corner of Bearfield and Churchill roads has stood bare for months —
a painted name on the curb has served as the only label for the intersection since the street signs were
stolen last fall.
From November 2007 to November 2008, approximately 1,730 street signs were replaced on Columbia
streets, costing the city around $35,000 in new sign materials, said Jill Stedem, spokesperson for the
Columbia Public Works Department, quoting figures from the Public Works Street Division database. No
numbers for December were available.
Signs featuring beer names, such as Corona Road and Rolling Rock Drive, are among the most commonly
stolen, Stedem said. But street signs in student neighborhoods, such as the duplexes around Bearfield, are
also frequent targets, no matter the name.
“It’s not just the beer streets now,” Stedem said. “It’s citywide.”
Stedem doesn't know why the problem is growing. But students in the Bearfield neighborhood have a
theory about street-sign theft in their neighborhood: It has become a tradition.
Stolen street signs hang in bedrooms and living rooms in many of the duplexes surrounding Bearfield.
Some residents say that nearly every home in the student neighborhood has at least one street sign. A few
students agreed to talk to the Missourian about street sign theft on the condition of anonymity. The
possession of a stolen street sign or theft of a sign is a misdemeanor.
“It’s somewhat of a tradition to have a street sign from the street you live on, as well as one from Bearfield
Road, " said Alex, an MU student and Bearfield resident. Although he has never stolen a sign himself, he
has signs hanging in his house —"gifts" from a friend who had taken them from the neighborhood.
One MU student has taken so many street signs that he has lost count.
“I have no idea how many signs I have stolen, I lost track a long, long time ago,” Jeff, an MU senior, said.
“I would guess it is somewhere in the area of 40. I would say I started stealing street signs around the start
of my junior year, and for the most part stopped in the middle of my junior year.”
The process for stealing signs varies. Some use wrenches or other tools, but many simply jump up and rip
the signs down.
“I generally would just run up to the pole, jump up and grab the sign,” Jeff said. “All you have to do is rip
the sign in both directions and it will fall off. You wouldn't be able to do this if they made the signs of
metal. But they're cheap, so it's easy.”
It may be a bit harder for students to simply rip down signs for much longer. The city switched to
aluminum signs in September, and they are more durable than the fiberglass material that was previously
used. Stedem said that while fiberglass is easy to break away from the poles, aluminum proves difficult.
The aluminum signs cost approximately $130 per sign after material, labor and all other expenses, while the
fiberglass signs cost $100.
While the method for stealing the signs change, students agree about the common catalyst — alcohol.
 “I mostly do it to get the signs for people that want them, since I haven't actually kept a single street sign
that I have stolen,” Jeff said. “There was one night when I was just bored, though, and stole around two
dozen. … Obviously there was a tiny bit of drinking involved that night.”

It may seem like college antics, but the theft of a street sign is a crime and can cause problems for
emergency responders.
If response teams have to drive to an area where signs are missing, they cannot respond as quickly or as
effectively as possible.
“We rely upon those signs to give us guidance,” said Steven Sapp, battalion chief of the Columbia Fire
Sapp recalled an incident a year ago in which the Fire Department responded to a kitchen fire on South
Drive. The sign for that street had been stolen, and the response team passed it, causing about one minute
of delay.
Though the delay did not result in added damage in that case, a minute can be the difference between
arriving on time and too late, fire officials say.
“In our business, seconds count,” Sapp said. “You’re literally putting somebody’s life in danger when you
steal those signs.
Despite taking 40 or more signs, Jeff has never been caught.
“It is really easy to get away with since you can do it so fast,” he said. Jeff isn’t sure what the exact
punishment for the theft would be, but “I heard someone say it was a felony, so good thing I never got
Generally, it's a misdemeanor rather than a felony, though the number of signs a person has in his or her
possession and the person's criminal history might make it a more serious offense. Capt. Zim Schwartze
said that police would generally write someone a ticket for stealing a sign or possessing a stolen one. The
signs are city property, and the city started marking the signs on the back several years ago to ease
Though they cost more, aluminum signs may prove to be worth the extra money. From April 1 to May 31,
2008, before the aluminum signs were implemented, the Public Works Department replaced 340 street
signs. From Sept. 1 to Oct. 31, 2008, after the switch to aluminum was made, 160 street signs were
Stedem said that a more accurate comparison can be made once the Street Division can compare figures
from 2008 to 2009.
“Anything they can do,” Sapp said about the upgrade to aluminum signs. “Hopefully, they’ll be a little
harder to break off.”
Other alternatives have been proposed to hinder the theft of street signs, such as placing them on higher
poles. Sapp said that raising street signs might also make them harder to see.
Stedem said that the idea of painting street names on curbs was brought before the council but never got
traction. Painting street names on the curbs could provide drivers with a second reference for navigation.
The idea presents its own problems: Curbs can be harder to see at night and can be blocked by cars. Also,
curb paint would have to be maintained as exposure to weather causes it to fade.
“It’s not a perfect solution,” Sapp said.
Clearly, people do not realize the dangers that the loss of signs poses, he said, adding, “they don’t think
about the consequences.”
“It’s not just a joke or a prank,” Stedem said. “It’s very serious, and it’s definitely a crime.”

The Kansas City Star
Young woman’s final gifts save lives of others
Wednesday, January 7, 2009

News that their daughter would not survive her injuries from a car crash late Saturday night left Sam
and Sue Sabaugh numb.

Worse, the couple initially worried that doctors wouldn’t be able to recover 27-year-old Alicia’s organs
for donation, something the Sabaughs said their daughter — a perpetual advocate for underdogs and
“the little guy” — wanted.

Today, as Alicia Sabaugh is buried, her heart, lungs, kidneys, liver and pancreas probably are already at
work inside other people who needed new organs to survive.

“She’s just living on for many more years now,” her father said, “and that’s such a comfort.”

Sabaugh spent Saturday evening with her parents and two younger brothers, both visiting from out of
state, at the family’s south Leawood home.

Her parents said Sabaugh was returning to her apartment near the Country Club Plaza when she lost
control of her car on Interstate 435 about 11:45 p.m.

Sabaugh’s Mercury Cougar bounced off the concrete median near 103rd Street and came to rest
sideways in the middle of the highway, Kansas City police said. The impact knocked out the headlights
and left Sabaugh’s foot wedged in the wrecked car.

Police said a bystander was talking to Sabaugh and trying to help free her when a Ford Focus driven by
a 91-year-old woman crashed into the Cougar, throwing Sabaugh from the car.

Sabaugh was rushed to a hospital, where she was pronounced brain-dead Sunday morning. Police said
the bystander and the driver of the Focus sustained minor injuries.

Sue Sabaugh described her daughter as “all over the board,” with many interests and passions.

Alicia Sabaugh worked as an assistant to her father, a stockbroker, at UBS Financial Services and had
just finished a semester of law school at the University of Missouri-Kansas City.

The Blue Valley North High School graduate majored in math and sociology at the University of
Kansas. She was a belle at the 2006 BOTAR ball, a vegetarian, a “workout fanatic” and an artist.
Among other works, charcoal nudes she sketched during a semester abroad in Rome are displayed at
her parents’ home.

Sabaugh loved mining for “underground” music and eagerly shared new songs and bands she
discovered with others, brother Jason Sabaugh said. Also, she had a great sense of humor.

“She found humor in everything,” he said. “No joke was unfunny to her.”

From working to traveling to researching current events and politics, Sabaugh was thorough and
meticulous, her father said. “It was always full-speed ahead.”

Whether it was environmental issues or the plight in Darfur, he said, Sabaugh advocated “anything to
help people in need.”

Doctors told the Sabaughs their daughter’s major organs immediately could save the lives of at least
five people. Other tissues, over time, could help dozens more.

In Kansas and Missouri alone, more than 2,000 people are awaiting lifesaving transplants, said Jan
Finn, chief operations officer for the Midwest Transplant Network.

Once hearts and lungs are matched with a recipient, they must be transplanted within four hours of the
time they are recovered from the donor, Finn said. The window of opportunity is up to 36 hours for
abdominal organs.

If organs aren’t matched with a recipient in the region, they are flown to other parts of the country,
Finn said. She urged families to discuss organ donation so they know what their loved ones want
before a crisis occurs.

For those who choose to donate, she said, “It’s certainly a great gift.”

Springfield News-Leader
Rolla university student project donates 5,000 diapers to young parents
Tuesday, January 6, 2009

A classroom project at Missouri University of Science Technology intended to hone students’
management skills will mean new parents enrolled in the Young Parents Program in Rolla will receive
free disposable diapers.

Eighteen students in an Introduction to Project Management class donated 5,000 diapers to the
program operated by the Phelps County Community Partnership at the completion of the class.

The course, taught by professor Paul Hirt, required students to develop and implement a management
plan. The students decided to tackle a service learning project.

Before the holidays, the students held a three-day diaper drive at the Rolla Kroger grocery, according
to a news release.

Receiving enough diapers to provide to new parents for two months means funding can go to other
efforts, according to the partnership.

Springfield News-Leader
State research board awards $1.4 million to Innovation Center, MSU projects
Tuesday, January 6, 2009

The Missouri Life Science Research Board has awarded nearly $1.4 million to projects at the Jordan
Valley Innovation Center and Missouri State University for development of new medical materials,
devices and instrumentation.

JVIC and MSU received a three-year grant of $825,000 for that effort.

The grant will be used to stimulate high-risk, high-reward applied research and development projects
targeted toward commercial product development, according to a university news release.

St. John’s Medical Research Institute received $574,450 to fund the first year of the commercialization
of iPrep, an antiseptic for the eye to be used clinically and over-the-counter. Currently, a product
capable of broad spectrum antisepsis that does not require local anesthetics or a product for minor
infections of the eye other than a physician-prescribed antibiotic does not exist.

iPrep may also have applications in treating the world’s leading cause of preventable blindness,
Trachoma, in developing countries.

iPrep will be the first commercialized product to come from the collaboration of St. John’s Medical
Research Institute and JVIC. Plans are to locate manufacturing and sales of iPrep in downtown
Springfield near JVIC.

Columbia Daily Tribune
MSU denies request for budget plans
Thursday, January 8, 2009
SPRINGFIELD (AP) - Missouri State University has denied a newspaper’s request to obtain the university’s
contingency budget plans, saying the documents are not public under the state’s Open Meetings and Records
Law. The university formally denied the request by the Springfield News-Leader on Monday.
The budget plans sought by the newspaper were prepared before Thanksgiving by several university
administrative offices at the request of Michael Nietzel, university president.
Nietzel asked the offices to draft contingency budget plans, assuming state appropriations should fall by 5
percent, or roughly $4 million. He has said the plans do not translate into actual budget cuts because it was
unclear whether state funding would drop.
The News-Leader made the initial verbal request on Dec. 19. Paul Kincaid, the university’s chief of staff,
declined to provide the documents, saying those plans, yet to be presented to the board of governors, were not
The News-Leader then filed a formal Sunshine request, saying the documents became open records once the
president’s office collected them. Nietzel wrote the newspaper a letter, printed Dec. 24, in which he argued the
budget recommendations he requested from various units are not public records under state law.
Springfield News-Leader
Editorial: MSU should take open path
Contingency plans for possible cuts, layoffs should be made public.
Thursday, January 8, 2009
We're not trying to be unreasonable in pushing for documents about possible budget cuts at Missouri State
University. We're just trying to do our job.
Sometimes, that job entails sparring with officials who would like to withhold those documents until they can be
massaged, polished, sometimes revised.
We work under the assumption that, in our shoes, you would be demanding these kind of documents, too --
especially when they concern matters as serious as $4 million in possible cuts at a large, taxpayer-funded
institution like MSU.
Our argument, which we believe is backed up by state law, is that documents created by MSU vice presidents and
the provost -- in this case, contingency plans detailing the possible cuts -- become subject to disclosure as soon as
President Michael Nietzel receives them.
Not after internal discussion.
Not after Nietzel or others raise concerns in private.
Not after the documents are kicked back to the creators for a redo.
We believe taxpayers should have a say on plans to cut MSU services, increase class size, reduce pay or make
other significant changes at this $228 million-per-year institution sooner rather than later.
MSU initially denied our request for the contingency plans by arguing they become records only after they are
fine-tuned and presented to the MSU Board of Governors.
On Wednesday, Nietzel told our reporter that he has decided against passing the plans to the board of governors.
He said MSU will instead wait to make more firm budget plans, possibly months from now, once it learns its
level of state funding.
So, that means that we -- and you -- might never know these specific contingency plans already developed. If
Nietzel has his way, only he and other high-level MSU officials will know what were offered up as 5 percent
budget cuts.
If you're an advocate for smaller government, that means you don't get to see what these officials considered to
be expendable aspects of their operations -- in other words, what critics might call fat.

Budget makers at Springfield Public Schools and with the city do not act in the same manner as Nietzel. They
have forthrightly produced documents in similar budget circumstances.
Wisely, they have come to realize they have nothing to lose. With the proper qualifiers, such documents can lead
to candid, healthy public discussion weighing the hopes of the future against realities of the present -- especially
economic ones.
Sorry if we sound like harpies. But, as we said, sometimes nagging is part of the job.
MSU is wrong on this one.
These documents should released. Not after a redo. Not in coming months. Now.
This editorial is the view of the News-Leader Editorial Board.
Springfield News-Leader
MSU declines to show budget plans
Attorney contends public should know of possible cuts.
Wednesday, January 7, 2009
Missouri State University on Monday denied a request by the News-Leader to obtain the school's contingency
budget plans, saying those documents, as prepared by staff, are not public records as defined under the Missouri
Open Meetings and Records Law.
But the newspaper believes such documents become public once they are retained by the university president's
office, which is considered a public governmental body under state law.
"I clearly disagree with them," Jean Maneke, a lawyer for the Missouri Press Association, said Tuesday. "We're
not talking about the staff. We're talking about the president."
The president, created by the by-laws of the university, is a public governmental body, Maneke said.
The budget plans sought by the newspaper were prepared by several university administrative offices, including
those of the provost, vice presidents and president under the request by President Michael Nietzel just before
Nietzel asked the offices to draft contingency budget plans, assuming state appropriations should fall by 5
percent, or roughly $4 million.
He has stressed the plans do not translate into actual budget cuts because it is unclear whether state funding
would drop.
Maneke said the public, as taxpayers, should know about possible budget cuts.
"They relate to the use of public funds," she said.
Budget cuts also have the potential to directly affect tens of thousands of people in the community, such as
students, faculty members and staff employees, Maneke said.
Those documents were due at Nietzel's office on Dec. 15, and the News-Leader made the initial verbal request
on Dec. 19.
Paul Kincaid, the university's chief of staff, declined to provide the documents, saying those plans, yet to be
presented to the board of governors, were not public records.
The News-Leader then filed a formal Sunshine request, saying the documents became open records once the
president's office collected them.
Nietzel wrote the newspaper a letter, printed Dec. 24, in which he argued the internal budget recommendations
he requested from various units heads are not public records under state law.
"In this case, the opportunity for a staff to discuss, document and debate various budgetary options with some
degree of deliberateness and confidentiality prior to a final decision being made public is exactly what the
legislature wanted to protect."

On Monday, the university formally denied the newspaper's request.
In her response, June McHaney, the university's custodian of records, cited state law that says public records
"shall not include any internal memorandum or letter received or prepared by or on behalf of a member of a
public governmental body consisting of advice, opinions and recommendations in connection with the deliberate
decision-making process of said body, unless such records are retained by the public governmental body or
presented at a public meeting."
According to executive editor Don Wyatt, the News-Leader is considering legal action to obtain the budget
"We disagree with MSU's interpretation of the law and are weighing our options," he said.
"In the end, taxpayers deserve to know what options Missouri State is considering before a final decision is
presented to them.
"It is interesting to us that the city of Springfield, interpreting the same law, has taken the opposite approach and
has been very forthcoming about the impact budget cuts could have on various departments and services before
a decision is final."
Springfield News-Leader
Professor: Budget process not open enough
MSU president shelves contingency plan until state funding proposal is available.
Thursday, January 8, 2009
Few outside Carrington Hall have a clue about how Missouri State University is preparing for a likely cut in state
funding, though final decisions could affect hundreds of faculty members, thousands of employees and tens of
thousands of students.
"Most faculty don't know what's going to happen next year -- if they would have a job," said Tom Wyrick, an
economics professor at Missouri State.
"Just a small number of people are making the decisions," Wyrick said. "They have set the course. They already
know the range of the options."
The university administration is offering little information about its plans.
It has prepared contingency plans based on state funding falling 5 percent, or $4 million. But the plans have been
shelved, and the university has declined to release them.
In addition, an executive budget committee is meeting over budgetary concerns, but behind closed doors.
Meanwhile, President Michael Nietzel is promising an open budget process in this trying year of financial
A Web page has been set up for the president to directly communicate with the university community, sharing
ideas and seeking public input prior to final decisions.
But there is nothing to report yet, Nietzel said.
"When we know the (state) budget proposal, we will work on the process," he said.
As in the past, the administration will involve faculty and staff in the budgetary process, Nietzel said.
Wyrick, however, doubts the faculty would have much meaningful input in any final decision.
"It may be the right decision, but it's not a shared decision," Wyrick said.
For now, Nietzel says those contingency plans are shelved.
"They are not being discussed," Nietzel said. "Any scenario could be obsolete, as we're waiting for the state
budget proposal."

Just before Thanksgiving, Nietzel asked his vice presidents and provost to draft such plans, with the assumption
that the state funding would decline by 5 percent.

The next week, Nietzel was asked by the state to consider scenarios should state funding fall by 15, 20 or 25
"Things moved very quickly beyond what we anticipated," Nietzel said.
He said he has no plan to present the 5 percent contingency plans to the Board of Governors when it convenes
on Feb. 20 in West Plains.
Wyrick said the contingency plans contain important information, as they may offer directions for future cuts.
But Pauline Nugent, chair of the Faculty Senate, disagreed.
"That's history," Nugent. "It's not a matter of hiding. It's a matter of not having anything worthy of publishing."
Any budgetary talk before Jefferson City proposes its next year's budget is "imaginary," Nugent said.
"There's really nothing on the table to work with," she said.
The News-Leader requested the files but was denied.
The university administration argues the contingency plans are internal documents exempt from the State's Open
Meetings and Records Law, commonly known as the Sunshine Law.
The News-Leader contends those plans became public records when they were delivered to Nietzel's office and
that his office is subject to the Sunshine Law.
Behind closed doors
In his online communications to the campus, Nietzel said the Executive Budget Committee, which usually meets
monthly, would be meeting at least bi-weekly after school starts in January to generate and evaluate ideas for the
university's upcoming budget.
The meetings, however, are not open to the public. Nietzel said he would inform the campus of any decision
resulting from those meetings.
Nugent, who serves on the budget committee, said she trusts Nietzel "to share everything" with faculty.
On the committee are senior university administrators and representatives for faculty, staff and the student body,
appointed to the committee by Nietzel.
The university says the budget committee is not a public governmental body, thus its meetings are closed to the
public and that no minutes are kept.
Nietzel said the meetings have a reason to be closed.
"These people deserve to discuss those matters among themselves," Nietzel said. "It's important to have a chance
to sit down and talk among ourselves."
Orlando Hodges, president of the student body, sits on the committee. On Wednesday, he declined to talk about
committee meetings.
"I'm not in the place to talk about those meetings," he said.
Nugent said the meetings are closed so information from discussions would not get misconstrued and become
She stressed she would protect the interests of the faculty by acting as the watchdog on the executive budget
She also sees another task as the faculty senate chair: to help maintain the learning environment for students.
"I want to keep people quiet and peaceful, go on with their teaching so students wouldn't be overly affected by
faculty worried about something nonexistent."

St. Louis Post-Dispatch
The Grade Blog: SLU increases scholarship for siblings
Thursday, January 8, 2009

As the economy continues to take a toll on people’s finances, many parents who have more than one
child in college are no doubt concerned about paying for tuition. Now St. Louis University is giving
parents a bigger financial incentive to send both or all of their children to them.

SLU is upping its sibling scholarship to $3,000 starting next fall. Currently, the award is worth $1,000 a
year for SLU undergrads who have another sibling attending the school.

“We believe this award further recognizes families who have a commitment to Jesuit higher education
and to SLU,” said Jean Gilman, dean of undergraduate admissions, in a news release. “We want to
ensure that every family has the opportunity to take advantage of a SLU education for all of their

University officials also noted in the news release that many families send more than one child to SLU
and that they hope that more will decide to do so with this larger scholarship.

Many schools are trying to increase their scholarship offerings during the recession to help families
afford college and to keep their enrollment numbers up. SLU also recently launched a recruiting
campaign called “Be a Billiken” to try to attract more students.

To receive the SLU sibling award, students have to fill out an application by March 1. Go to to fill out an application.

The Grade is the St. Louis region’s premier blog on education and child welfare. To read other recent posts, go to

St. Louis Post-Dispatch
Interim Webster U. chief is a finalist for top job
Wednesday, January 7, 2009

One of the two finalists to be the next president of Webster University has been serving in that role on
an interim basis. Neil George is a veteran Webster administrator who has been there for more than
three decades.

The second finalist, Elizabeth Stroble, is a relative outsider who has established her reputation while
helping to steer fundraising, strategic planning and community partnerships at the University of Akron.

On Tuesday, Webster announced that George and Stroble are the two finalists for the top job. The
school initially had three finalists, but the third person recently removed his name from consideration
because of a death in the family, said Ed Glotzbach, a Webster board member who is also the
chairman of the presidential search committee.

Webster's previous president, Richard Meyers, resigned in February. George, who was the university's
executive vice president, has been leading the university since then.

George initially said that he had no interest in being president on a more permanent basis. But he later
reconsidered and became a candidate after encouragement and prodding by his colleagues.

George has taken an active role in supervising Webster's 100-plus locations, strengthening the network
of international campuses, and promoting the expansion of online graduate programs.

Stroble has been the provost and chief operating officer at the University of Akron for six years.
During that time, she helped establish the university's honors college, collaborated with public schools,
and successfully helped lobby for $34 million in private and public grants and other funding.

In her application letter, she said she felt that Webster's traditions appeal to her own values. Stroble
has some local connections to the area, having received her bachelor's degree from Augustana College
in Illinois and a master's degree from Southern Illinois University Edwardsville.

At the outset of the search, Glotzbach said he wasn't sure whether the university would publicly
announce the names of finalists. But he said Tuesday the potential finalists welcomed the opportunity
to be interviewed on campus. He added that Webster faculty and staff also wanted a chance to vet the

George and Stroble will each participate in a day full of interviews with faculty, staff, deans, students
and trustees on Jan. 14 and 15.

After that, the search committee will submit its recommendations to the Board of Trustees. Glotzbach
said he expects a decision would be made within a month or so of the interviews.

"The target is to have someone in place by the summer, so when the fall semester starts, we'll be
prepared with a new president," he said.

Columbia Daily Tribune
Stephens cuts tuition for post-graduate work
Thursday, January 8, 2009

Stephens College is offering a tuition reduction to help Boone County residents who wish to continue
their studies at the private women’s college. To qualify for reduced tuition, residents would need to
start a program in the Division of Graduate and Continuing Studies in 2009, spokeswoman Sara
Fernandez Cendon said.

The Community Connections Grant would reduce tuition by $50 per credit hour, Stephens said in a
news release. Tuition is $335 per credit hour for graduate students and $275 for undergraduates
enrolled in continuing education classes.

The Division of Graduate and Continuing Studies offers undergraduate and graduate programs for
non-traditional students. The program and Community Connections Grant are open to men and

So far, 16 eligible students have signed up for the program, said Suzanne Sharp, dean of the Division
of Graduate and Continuing Studies. The college will continue to take applications through the first
week of classes, which begin Monday.

Columbia Missourian
General Assembly opens with call for higher education reform, emphasis on economic development
Wednesday, January 7, 2009
JEFFERSON CITY — The 95th Missouri General Assembly began Wednesday with a proposal that could
endanger the continuing authority of the UM System Board of Curators by bringing all state universities under
one board.
In his opening address, Senate President Pro Tem Charlie Shields, R-St. Joseph, spoke about tough economic
times in Missouri and repeatedly referenced the need to reform higher education in the state.
Shields called the higher education system "disorganized," and said he would like to see the governing model
altered to resemble other states' systems.
Missouri's Coordinating Board for Higher Education, which has been in place since 1972, handles state budget
requests from all state universities.
But, the UM System is exempted from the board's authority. Its administration is handled solely by the Board of
Curators, which, like the coordinating board, is made up of a member from each congressional district.
"At the very least in Missouri, we have to increase the power of the coordinating board," Shields said.
Rep. Chris Kelly, D-Columbia, agreed with Shields' assertion. Kelly said he supports combining all state
universities under a board of curators because it would make state universities more efficient. However, he said
he does not think it will ever be done because some schools would oppose it.
In 1971, a citizens' commission to restructure state government supported uniting all universities under one
governing board. Several state institutions, including the UM System, fought against the effort on the claim that it
would weaken competition and cause some schools to lose their regional identity.
The legislature created the Coordinating Board for Higher Education in 1972, but gave it little actual power.
Most Missouri universities continue to have a governing board.
Sen. Kevin Engler, R-Farmington, agreed with Kelly that the current system is inefficient.
"You wouldn't run a business like that, have different locations all over doing the same thing," he said.
Columbia Daily Tribune
Higher ed a priority as legislative session begins
Wednesday, January 7, 2009
The University of Missouri will have a freshman cheerleading squad in Jefferson City this year.
Incoming legislators said championing MU will be one of their primary goals in the legislative session of the 95th
General Assembly, which was to convene at noon today.
The challenge for Columbia’s new slate of representatives will be learning the ropes while trying to be effective
voices in a minority Democratic Party. Adding to those challenges are state budget cuts in the forecast that would
have dire consequences for MU, Rep. Stephen Webber said.
"It’s going to be a tough year," he said. "It’s easy to be a good representative with a surplus, but it will be
challenging when the budget is short. In these times, Columbia needs us to step up. We need to make sure the
university isn’t singled out" in budget cuts "as best we can. And we don’t have the luxury of time."
Gov.-elect Jay Nixon’s budget adviser, Wayne Goode, last month warned that the state could face as much as a
$342 million shortfall this fiscal year. By law, the state must end the fiscal year with a balanced budget, requiring
cuts if revenues come in lower than expected.
The University of Missouri System already is under a hiring freeze, and administrators have warned that a cut of
15 percent to 25 percent - $60 million to $100 million - would require massive layoffs or tuition increases as high
as a 27 percent. State law prohibits the university from raising tuition higher than the U.S. Consumer Price Index,
or about 1.1 percent right now, without appealing first to the state Department of Higher Education.

Raising tuition might be a necessary way to offset state funding shortfalls, Republican Sen. Kurt Schaefer said.
"No one wants to see tuition increase, but no one wants to see a decline in the quality of education, either," he
At the same time, Schaefer doesn’t expect the university to be solely targeted in the anticipated round of budget
cuts. "I don’t see any attempt to balance the budget on the back of the university like we did seven years ago," he
Democratic Rep. Mary Still, a former MU communications director, said she is ready to ensure that doesn’t
happen. "I have to learn the ropes here, but fortunately, I already know the University of Missouri, and I well
know how to promote it," she said. "We have only one public research university in this state, and it’s very
important to our future."
Still also wants to protect the $5.3 million in capital improvement funds allocated this year for the Columbia Area
Career Center. That funding is at risk because it comes out of general revenues and - because construction hasn’t
begun - has yet to be spent.
But cuts will have to come from somewhere, and it’s too early to say which area - K-12 schools, higher
education, social services or corrections - will take the biggest hit, Rep. Chris Kelly said. "That’s the challenge it’s
going to take 4½ months to answer," he said. "I don’t know the answer yet. Not only do we have all of those
needs, we will also have conflicting legislative priorities."
The Kansas City Star
Prime Buzz Blog: Senate Republicans favor empowering Higher Ed board
Wednesday, January 7, 2009
JEFFERSON CITY | Republican Senate leaders today expressed strong support for further empowering the
state's Coordinating Board for Higher Education.
Senate Leader Charlie Shields, of St. Joseph, and Appropriations Chairman Gary Nodler, of Joplin, said in a
press conference today that they would look at strengthening the board, which in turn could exert more influence
over policy and curricula at the state's numerous state universities.
Currently, the four-campus University of Missouri system, the state's regional universities and its community
colleges all operate more or less independently and, perhaps, inefficiently, Shields said.
"At the very least in Missouri, we have to begin a process to figure out how we bring that all into one governance
structure," Shields said. "That probably starts with enhancing the power of the coordinating board."
Lawmakers must first determine their goals for higher education in the state before any decisive action is taken,
Shields said, but that process should begin now.
In the House, lawmakers said they were unaware of interest in strengthening the coordinating board or otherwise
altering the state's higher education system.
Springfield News-Leader
Op-ed: Gov. Blunt to successors: Keep education No. 1 priority
In a guest column released to Missouri news organizations today, outgoing Gov. Matt Blunt warns
lawmakers against diverting new Proposition A education dollars generated from a new casino tax
intended for schools.
Friday, January 2, 2009
Two weeks ago I warned in an op-ed that the St. Louis Post-Dispatch and Kansas City Star have yet to print, that
we cannot go back to the old shell game of giving money to schools with one hand and taking it out with the
other. Unfortunately, it appears my concerns were warranted.
In November, Missourians voted to expand gambling by passing Proposition A because they wanted more
money to go to education. Steps must be taken to ensure Missouri schools receive every penny in additional
funding this initiative has promised.
Taxpayers who were reluctant to expand gambling should be wary and watch for stagnant, reduced or only

slightly increased general revenue funding. The gaming money should be over and above the scheduled general
revenue formula payment. It should not offset it.
Serving as governor has strengthened my understanding of the competitive nature of the national and global
economy. Communities, states and nations that invest in education and workforce development will have a
higher standard of living than those that do not.
I do not intend to comment on every topic or opine on every idea of the next administration, but education is of
vital importance to me and to our state and I feel compelled to offer some thoughts as I leave office.
Before I became governor, state government actually cut and withheld money from schools and universities so
that it could continue with out of control spending in other areas. However, the failure to control rapidly
escalating social welfare spending meant that the state’s budget problem only became worse.
The budget I inherited in January 2005 was broke and broken with a $1.1 billion deficit. Overcoming this deficit
was daunting on its own. Even more challenging was simultaneously realigning Missouri’s budget priorities to put
education back on top.
In my most challenging budget year as governor I recommended an increase in education funding and set a new
priority: education would come first in making budget decisions.
Working in partnership with the General Assembly we kept this promise. We turned a $1.1 billion deficit into
consecutive surpluses and increased funding for education at all levels.
My budgets increased K-12 funding by 17.2 percent or $440 million. We increased funding for colleges,
universities and students by $166.5 million, or 19.3
In fact, the more than $1 billion higher education budget I signed this year is the highest in state history and we
went beyond this core funding increase by enacting the Lewis and Clark Discovery Initiative which is providing
an additional $335 million for state-of-the-art learning centers for our students. We also nearly quadrupled
scholarship funding for students.
In my four years as governor we provided $1.2 billion new dollars for education at all levels. This is the largest
increase in education funding without a tax increase in state history.
The Fiscal Year 2010 budget will be challenging because of the national recession. It is my hope that in this
challenging budget climate that education will not be cut to feed bigger government programs. My administration
ended the education cuts and withholdings of the past.
We should not return to the old way. The United States cannot continue to lead the global economy unless we
invest in education. Education must come first in the state’s budget priorities.
Education is the best foundation for a future of growth, opportunity and success for Missourians and our state.
We must protect and increase education funding, not cut it.
Matt Blunt is Missouri’s Governor
The Joplin Globe
State budget shortfall forces hard choices for education, others
Sunday, January 4, 2009
“Conservative” may be the word in 2009 for Missouri schools, businesses and municipalities bracing to see how
a projected $342 million shortfall in the state’s budget will affect them.
“We don’t know what to expect or what decisions the Legislature may make before it adopts the budget in May,”
said Jim Morris, spokesman for the Missouri Department of Elementary and Secondary Education (DESE).
“The message this year is be conservative.”
Legislators and state officials are guarded about potential cuts to the current as well as next year’s budgets until
the Missouri General Assembly reconvenes on Wednesday. Gov.-elect Jay Nixon was not available for comment
last week, but his office analyzed general revenue data and estimated the shortfall will be $342 million for the
current year.

Missouri House Speaker Ron Richard, R-Joplin, said talk of withholdings this year or specific cuts to the 2009-
2010 budget is “premature,” but officials agree it will be tough.
“We were right on until this financial crisis came,” said state Rep. Kevin Wilson, R-Neosho, of Missouri’s
budget. “Nobody saw this coming. I think the general consensus is that we will have to make some tough
decisions this year.”
Not only is the state not going to be able to grow its budget, Wilson said, but general revenue has actually
Missouri is 4 percent behind in general revenue collections for the year compared to 2007, according to state
figures. The biggest problems are a 7.6 percent decline in sales taxes and a 13.6 percent decline in corporate
taxes. Tax refunds also have increased more than 20 percent this year compared with last.
“It’s pretty bad,” said Amy Blouin, executive director of the Missouri Budget Project, a nonprofit group that
analyzes the state’s public policy. “The level of crisis facing the state both with its revenue and with the economy
is more significant than it has been in decades. By all accounts, the most recent experience we’ve had like this was
the Great Depression.”
Blouin said that with budget cuts over the last eight years, there are fewer “discretionary” funds in the budget
“It’s almost like every rock has been overturned to find every penny,” Blouin said. “We’re already 46th in the
nation on what we spend on state and local services, so at this point, going lower is not really an option. There’s
not that much further to drop.”
K-12 education
Rick Cook, Seneca R-7 superintendent, said his district has an annual budget of about $12 million, and spends
nearly every penny. So, potential cuts in state funding are a major concern.
Cook said the district has already cut $1 million from its payroll in the last two years, and $500,000 from its
supply lines to reduce expenses and balance its annual budget.
He has been working to get Seneca teachers’ salaries up to the conference average and is only about $500 a year
from reaching that goal, but said he doesn’t know what will happen if the state withholds money or cuts
“We’re going to continue to get teachers up there,” Cook said of reaching the average. “But, we can only do what
we can do.”
C.J. Huff, Joplin R-8 superintendent, said the Missouri General Assembly “promised” to fully fund the K-12
school funding formula for seven years when it was adopted three years ago. Local legislators have indicated the
state will probably fund the formula this year (2008-2009), Huff said, but that districts should not expect that
next year.
“Do we all want that to continue? Yes,” Huff said of full funding. “Do we anticipate it? I don’t think so.”
Richard said he was not aware of plans to not fully fund the formula and said the Legislature will work to keep
every financial promise it has made.
Morris said DESE has been asked to develop a contingency plan for what cuts it would make to its $5.3 billion
annual budget if state funding is reduced. He said the hardest-hit groups would be the ones with the most state
funding, including state-run schools for the blind, deaf and severely handicapped and the A+ Program.
Across the country, Huff said school districts are just now recovering from budget cuts made in the early 2000s.
Any upcoming cuts would be tough, he said. The hardest hit could be staff because 80 percent of a district’s
recurring expenses are personnel costs, he said.
“There’s a lot of these districts that are just getting up on their feet, and they’re getting punched in the nose
again,” Huff said.
Cook said he has dropped everything he can from his budget already, so any more cuts in state funding will have
to come out of payroll.

“I pray this is not as bad as people think it’s going to be,” Cook said. “We’ve cut where we could so it wouldn’t
be too painful, but any further cutting will be painful.”
Huff said the fate of Missouri’s schools now rests on how long the recession lasts and how much they have in
reserves. Joplin’s reserves — about 25 percent of its $80 million budget this year — will help the district get
through for the time being, he said.
Higher ed
In December, the Missouri Department of Higher Education outlined what 15, 20 and 25 percent cuts would do
to colleges and universities in the state. Bruce Speck, president of Missouri Southern State University, said a 15
percent cut would amount to $3.5 million and result in layoffs and academic, athletic and support programs being
cut. A reduction of only $2.5 million would force the college to cut about 65 positions, he said.
Alan Marble, president of Crowder College in Neosho, has said that a 25 percent cut could prompt the college to
raise tuition by 8.8 percent, eliminate eight positions and discontinue a technical education program.
The University of Missouri system could lose between $60 million and $100 million and Missouri State University
in Springfield could lose between $12.3 million to $23.1 million.
Job creation
Unlike education, Spence Jackson, spokesman for the Missouri Department of Economic Development, said
Wednesday that the agency has not been asked to simulate budget cuts. Local Joplin officials said the same thing.
“At this point, we haven’t heard anything specific related to economic development programs,” said Rob
O’Brian, president of the Joplin Area Chamber of Commerce.
He noted that Nixon has cited job creation and retention as high priorities.
Richard said much of the state’s job-creation program will stay the same under Nixon’s leadership, including the
$51 million Quality Jobs Bill that Richard authored and that Gov. Matt Blunt signed in 2007. The bill has
benefited two local defense contractors, EaglePicher Technologies and LaBarge, Inc. through tax credits for
creating new, well-paying jobs with health insurance.
Richard said that program should continue despite the state’s budget crunch because it only offers the credit after
a revenue-producing job has been created. The program may be subject to greater accountability in the future.
The challenge, Richard said, is where to find the money to do job training.
“We may have to start training and re-training people who are out of jobs now,” Richard said. “It’s going to be
one of the conversations we’ll have in the coming weeks.”
Cities, health care
Municipalities may fare better with any potential state budget cuts, but health-care clinics could take up the slack.
Leslie Jones, finance director for the city of Joplin, said most of the grant money the city receives is actually
federal money sent to and distributed by the states. If the city of Joplin feels an impact, she said, it could be on
the services side, particularly the local health department.
Dan Pekarek, director of the Joplin Health Department, said state cuts to the Medicaid program several years ago
fueled an increase in demand at local offices such as the Community Clinic. The city supports the clinic by paying
for prescription drugs for residents who qualify.
Pekarek said 35 to 40 percent of the Joplin Health Department’s total budget comes through contracts with the
state health department, but much of that funding originates at the federal level.
Michelle Ducre, director of the Community Health Clinic in Joplin, said patient visits doubled after the 2005
Medicaid cuts. In 2007, the clinic saw between 2,000 and 2,200 patients. Last year, it served 3,000. Ducre
attributes much of the increased traffic to the economic downturn.
“If we cut health care any further, the only areas that can be cut are seniors, people with disabilities and kids, and
I can’t imagine anybody thinking that is a good idea,” Blouin said.
Staff writers Derek Spellman and Joe Hadsall contributed to this report.
Piece of the pie

Missouri funding makes up 25 percent, or $18.58 million, of the Joplin R-8 school district’s funding for 2009.
The Kansas City Star
Budget woes await lawmakers in Missouri, Kansas
Saturday, January 3, 2009
The nation’s recession already has gut-punched Americans at home. Now it’s hitting the statehouses hard.
Missouri and Kansas open their legislative sessions in a few days in the midst of what some lawmakers are calling
a once-in-a-generation money crisis.
Mounting job losses. Plummeting home values. And now consumer spending declines have sent tax revenues
dropping sharply. Lawmakers may be forced to dig deep into state spending just to stanch the red ink and keep
their budgets balanced.
Roads, schools, universities, programs for the most vulnerable citizens — everything is a potential target for
lawmakers struggling to find money. Seldom have the political challenges in both state capitals been so in sync,
so obvious, and yet so resistant to easy fixes.
Nationwide, 44 states have or are facing budget deficits, according to the nonpartisan Center on Budget and
Policy Priorities. In the end, the shortfalls could surpass $350 billion in the next two years.
“This is of historic proportions,” said Kansas Sen. Karin Brownlee, an Olathe Republican. “It’s unlike what most
of us have seen in our lifetime.”
The hard work in Missouri will start Wednesday, when the General Assembly will convene. The Kansas
Legislature will open Jan. 12.
Kansas faces a $141 million deficit in this year’s budget — and more than $1 billion in red ink in the budget that
will begin July 1.
In Missouri, the budget outlook is better, but still murky. For the current fiscal year, which will end June 30,
different analysts project different numbers. But the odds of a shortfall are “better than 50-50,” said Senate
budget committee chairman Gary Nodler, a Joplin Republican.
The budget pain is being felt in Kansas. The final phase of a $285 million Capitol restoration project is on hold.
Universities face delays in building repairs and expansions. Some $200 million in highway projects are being
Johnson County’s community corrections initiative — a nationally recognized effort to give low-level offenders
one last chance to keep working and avoid prison — could be slashed by nearly $1 million. That would force
staff cuts and send roughly 120 offenders to prison instead, a costlier option in the long run.
“The state of Kansas has been a leader in the nation on this,” said Betsy Gillespie, the county’s corrections
director. “It’s such a shame to turn that around now.”
Sunflower income wilts
Lawmakers in Kansas will probably target low-hanging budget fruit first. Open jobs will go unfilled. New
purchases and projects will be delayed. Pay and pension raises for state employees will be put on hold. Tax
loopholes may be tightened. Redundant programs will be eliminated.
And then they say it will get tougher.
Legislators are approaching cuts with the hope of protecting core missions of state government. But they warn
that no agency is immune to trims.
Across-the-board cuts are possible, but lawmakers say they aim to be more deliberative, doing more arthroscopic
surgery than amputation.
“The guiding principles are protecting the most vulnerable Kansans, trying as much as possible to protect the
education advancements that we’ve made, not only in K-12 but in higher education,” said Gov. Kathleen
Sebelius, a Democrat whose budget office will submit proposed budget changes in the session’s first week.

Across-the-board cuts, she said, are “sometimes the easiest thing to do, but it’s the least strategic. … We don’t
want to look back in five years and still be digging out of some hole we produced for ourselves.”
Cancel the community corrections program entirely and the state must build more prisons. Cut into school
funding too much and businesses might steer clear of the state. Cripple health programs for the poor and the
state will have to pay higher bills for emergency-room visits.
The key, lawmakers say, will be identifying programs that don’t contribute more than they cost.
“There will be pain felt, but it’s pain our taxpayers have been feeling for quite some time,” said the new House
speaker, Mike O’Neal, a Hutchinson Republican. “The citizens have a right to expect that if a program isn’t
working, that we shouldn’t spend money on it.”
There’s one more hitch. Tough economic times increase demands on the state even as leaders look to reduce
funding. State schools, for instance, expect to need $100 million more this year to address a growing number of
low-income students.
Agencies such as the Wyandot Center, Wyandotte County’s mental health agency, also are seeing more vulnerable
clients — many of them children. The agency is expecting reductions of $140,000 this year and potentially three
or four times that for next year, according to the center’s chief executive, Peter Zevenbergen.
Show me the money
As of late November, Missouri revenues were down $96 million for the year, but that was just the beginning of
the tax-dollar free fall.
The Missouri Budget Project, a nonpartisan group that studies state finances, expects revenues to ultimately sink
by $480 million, while Gov.-elect Jay Nixon’s transition team forecasts a $623 million shortfall.
Several things are working in the state’s favor, though, and major cuts aren’t necessarily a given — at least not
this year. One of those is that the current budget included a $281 million surplus, meaning revenues could drop
by that amount with no effect on state departments and programs.
Budget leaders also expect the budget’s annual “lapse” — dollars appropriated but not spent — to further
insulate programs from cuts, perhaps by $200 million or more.
With luck, the state could have around $500 million extra on hand to offset the downturn, said House budget
committee chairman Allen Icet, a St. Louis County Republican.
Still, Nixon has laid out a road map for cuts that include freezing new long-term state contracts, delaying some
building projects and ordering cost-savings reviews of all agencies.
Even as Nixon and lawmakers mull budget cuts for the current year, they must also begin crunching numbers
and debating priorities for fiscal 2010.
Analysts will develop a revenue estimate in the next few weeks, and Nixon will deliver his proposed budget by
the end of the month. A final budget must be passed by May 8.
As in the current year, estimates are uncertain. The Missouri Budget Project estimates a shortfall of $900 million
or more, although others say they think revenues may stay positive. Growth of 1 or 2 percent is possible, Nodler
said, although he noted that was not much cause for celebration.
“Even if we manage to end up with some growth, it’s virtually certain that it won’t be sufficient to maintain our
present spending paths,” he said.
Nodler declined to speculate on where cuts might be made, but noted that options were limited.
“You can’t take money from places that don’t have it,” he said. “It has to (come from) spending areas that are
discretionary in nature and that have financial resources.”
Such areas could include the Department of Social Services, which runs the state Medicaid program, and the
Departments of Elementary and Secondary Education and Higher Education.
David Stokes, an analyst with the Show-Me Institute, a free-market think tank, said the state’s best option might
be an across-the-board reduction in state jobs.

“The idea that every agency is working at full capacity and can’t afford a payroll reduction is erroneous,” Stokes
said. “Most departments in state government can take a 5 to 10 percent cut.”
However, after years of concerted efforts to reduce spending, any significant cuts will be difficult, said Amy
Blouin, executive director of the Missouri Budget Project.
“The state has been in perpetual crisis for eight years now, so it’s almost like every stone has been overturned,”
Blouin said.
Medicaid cuts, for example, would be limited by federal requirements and the political perils of reducing services
to the elderly or disabled, Blouin said. Further cuts to higher education might force colleges to reduce class
offerings or limit enrollment.
There is an alternative to less spending in both states — tax increases. California and New York are considering
tax hikes as deficit cures.
Missouri could follow other states by levying sales taxes on Internet commerce, Blouin said, although federal
legislation would be necessary to allow the state to collect an estimated $200 million to $300 million annually in
tax revenue.
A cigarette tax increase is on the table in Kansas, and O’Neal said he had heard talk about a potential increase in
alcohol taxes. But even if approved, those taxes alone aren’t likely to solve the state’s fiscal woes.
The states also could seek federal aid to fund capital projects and stimulate the economy. The Obama
administration has proposed a public works program to rebuild infrastructure that could reach $1 trillion.
If there is an upside to the financial perils facing the states, some lawmakers say it will be a renewed emphasis on
cooperation between Democrats and Republicans.
Missouri Senate Minority Leader Victor Callahan, an Independence Democrat, agreed.
“The times require us to probably work together more than we’ve ever worked together previously,” he said. “I
don’t think the public will be very patient with a lot of games of political tag.”
Missouri people to watch
Gov. Jay Nixon: After sweeping into power on promises to expand access to health care and higher education,
the new Democratic governor must instead cope with a fiscal crisis.
The crisis will almost certainly rule out both priorities this year and necessitate budget cuts in their places.
Nixon’s success will depend on whether he can compromise on cuts with the Republican-led General Assembly
and communicate their necessity to the public.
Beyond cutting costs, Nixon will have a major role to play in the solutions that will put the state back on track.
Plans outlined late last month, including expanding tax credits for growing businesses and offering low-interest
loans to small businesses, have won tentative support from Republicans.
Sen. Kevin Engler: The Farmington Republican was the winner of a three-way race for Senate floor leader, the
post responsible for guiding debate and seeing that priority legislation advances.
Hailing from a strongly Democratic area, Engler is known for taking an ecumenical approach to politics, and will
be expected to make good on the promises of bipartisanship made in the weeks leading up to the session.
Working across the aisle will be more critical than ever this year, when a beleaguered budget will dominate
lawmakers’ attention and a Democrat will have veto power over Republican legislation.
Rep. Ron Richard: The new House speaker has built his political reputation on economic development, and
now economic development will be job No. 1.
As lawmakers weigh budget cuts, they must develop plans for recovery — stimulating growth and adding jobs
chief among them.
Richard, a Joplin Republican, will be expected to be at the forefront, lending expertise on job growth and
shepherding legislation through the House.

Lawmakers also will seek from him a different tone following the bombastic, partisan and often controversial
reign of Rod Jetton.
Missouri issues to watch
Economic development: Job growth will be paramount this year as lawmakers look to repair the damage
wrought by the recession.
One long-sought change expected to receive a big push will be the expansion of tax credits awarded in the state’s
Quality Jobs Program. The program, which offers credits to companies creating new high-paying jobs and
offering health-care coverage, is capped at $60 million a year. Lawmakers will seek to remove that cap altogether.
Also expected is further debate on tax credits for “angel investors” — venture capitalists who bankroll small and
growing companies in the state.
Tax credits: Gov.-elect Jay Nixon, Democrats and even a few Republicans have called for a review of the state’s
tax-credit programs out of concern about their impact on the state’s revenues in the down economy.
Issuance of the credits removes hundreds of millions of dollars from state coffers each year, although most are
said to yield positive gains in economic activity.
How such a review would be conducted and its effect on tax credits in the future are uncertain. Also uncertain is
how the backlash against tax credits will affect the advancement of job-growth initiatives proposed this year that
rely primarily on offering new credits.
Energy: Lawmakers will consider ways to encourage alternative-energy development, including hydro and solar
power, but the conversation will be dominated by a proposed change in the utility rate structure to finance a new
nuclear plant.
AmerenUE, an electric utility serving central Missouri, aims to build an additional nuclear facility near its existing
plant in Callaway County. The plant is expected to be the most expensive single project in Missouri history, and
the company says it can’t be done unless customers help foot the bill up front with higher utility rates.
Currently, state law forbids utilities from charging for power not yet being produced.
Other issues: Also on lawmakers’ radar this year is property tax relief, health-care reform and more authority for
the state Coordinating Board for Higher Education.
Lawmakers also will watch for additional federal funding for highway and infrastructure improvements, and
expansion of some health-care programs.
With the heat of the elections now dissipated, there may be some movement on voter issues, too.
At least one lawmaker has suggested a compromise between Republicans and Democrats that would allow early
voting in the state — a Democratic priority — in exchange for Republican-backed photo-identification
requirements at the ballot box.
Kansas people to watch
Gov. Kathleen Sebelius: The term-limited Democrat surprised many by not leaving Kansas for a job in the
Obama administration.
Instead, she will finish out the last two years of her second term trying to dig the state and its budget out of
She will face some tough decisions when it comes to cutting state services and spending, and some potentially
bruising fights with the Republican-led Legislature.
She may also discover that last year’s battle over the construction of two western Kansas coal plants — which
she successfully blocked — may not be over yet.
Rep. Kevin Yoder: The Overland Park Republican is only 32, and yet this year he has one of the most
important and powerful jobs in the statehouse — chairman of the budget-writing House Appropriations
The former University of Kansas student body president will have his hands full crafting a multibillion-dollar
budget amid a $1 billion deficit and deciding which programs will live or die.

Depending on whose ox gets gored, Yoder could find himself taking the credit — or the blame.
House Speaker Mike O’Neal: The Hutchinson Republican takes over the keys to the House at an unenviable
time of fiscal upheaval.
But O’Neal has seen tough times before.
First elected to the Legislature in 1984, he has been in the House longer than just about anybody.
House Republicans last month picked O’Neal to replace Melvin Neufeld.
O’Neal, considered a conservative, promises to work with Democrats and Republicans of all stripes. His
background as a trained mediator should come in handy.
Kansas issues to watch
Energy and coal plants: The fate of two coal-fired power plants planned for western Kansas dominated last
year’s session after Gov. Kathleen Sebelius’ administration blocked construction of the plants for environmental
Lawmakers — especially those from western Kansas — tried but failed to overrule Sebelius.
They are certain to try again. Regardless of the outcome, the debate about fossil fuels, climate change and
renewable energy is here to stay.
Statewide smoking ban: Once considered a quixotic quest, the push to ban smoking in restaurants and bars is
gaining momentum. Legislation to do it has failed in every session, but the margin of defeat is shrinking.
Opponents say it is a local issue. Supporters argue that it could do more for Kansans’ health than anything else.
In a year in which there is not going to be much money for expensive health-care reforms, lawmakers may see
the ban as the best health legislation no money can buy.
Also, lawmakers are likely to weigh in on a proposed increase in cigarette taxes — perhaps the only tax hike
proposal that will get serious consideration this year.
Transportation plan: This was supposed to be the year lawmakers came up with another long-term funding
plan for roads. The recession drove that train off the tracks.
Instead, look for creative approaches to transportation this year. Talk of an Obama stimulus plan that favors
road building has many lawmakers dusting off lists of stalled road projects.
It is also possible that lawmakers could think smaller, crafting a one- or two-year continuation of the state’s
transportation plan instead of a 10-year plan they had hoped for.
Other issues: Lawmakers could grapple with illegal immigration again this year, looking for ways to curb the
influx of illegal workers while not putting onerous requirements on businesses.
Legislators could revisit state-run gambling too, because the revenue from a plan passed two years ago still hasn’t
And expect debate about school spending. While budget cuts are inevitable, lawmakers will be reluctant to
reverse recent increases in the state’s investment in public education.
Springfield News-Leader
Agencies in angst over budget
Cuts seem certain, may not be as deep as expected.
Saturday, January 3, 2009
Jefferson City -- Sheltered workshops for the disabled shut down. A veterans nursing home closed. College
scholarships cut. Police security eliminated at the Governor's Mansion.
Those are just a few of the possibilities raised by state agencies that have responded to legislative requests for
scenarios dealing with budget cuts of 15 percent to 25 percent.
Understandably, there is angst in state government as the 2009 legislative session begins Wednesday.

Legislative leaders say the economic recession is their foremost concern. The slowdown likely will mean spending
cuts for some government services. It also is the impetus behind new job-creation incentives being proposed by
lawmakers and Gov.-elect Jay Nixon.
The focus for 2009: "Jobs, economic development, raising the standard of living of Missourians, making Missouri
more competitive in the country" and the global economy, said incoming House Speaker Ron Richard, R-Joplin.
The 95th General Assembly will feature new leaders in the House, Senate and Governor's Mansion. And it will
be a politically split government. Nixon is a Democrat, but Republicans will hold a 23-11 Senate majority over
Democrats and a 89-74 advantage in the House. The session runs from Jan. 7 to May 15.
The session will be starting with a good news-bad news pronouncement. The bad news: Budget cuts seem
certain. The good news: The cuts of may not be as deep as the 15-25 percent scenarios.
House Budget Committee Chairman Allen Icet, R-Wildwood, said a 5-10 percent cut may be more realistic. Icet
and Senate Appropriations Committee Chairman Gary Nodler, R-Joplin, say they asked state agencies to develop
worst-case scenarios so they would have a better idea of the departments' priorities as they craft the budget for
fiscal year 2010, which starts July 1.
Unlike the federal government, Missouri must maintain a balanced budget. So when revenues fall, spending does
Only the Department of Higher Education has publicized its spending-cut report to lawmakers, warning that
tuition hikes, faculty layoffs and scholarship reductions could ensue under a 15-25 percent cut. In the case of
Harris-Stowe State University in St. Louis, the department warned that such cuts "would threaten the continued
existence of the institution."
The Associated Press obtained copies of the reports from most other departments through open-records
requests. The departments of Corrections, Social Services and Health and Senior Services refused to provide the
information, claiming the reports were exempt from disclosure under the Sunshine Law.
In its budget-cut scenarios, the Department of Elementary and Secondary Education suggested the elimination
of its annual Scholars and Fine Arts academies, a reduction in A-plus scholarships and in transportation aid to
schools and the elimination of funding for sheltered workshops.
As a result, "many of the 93 sheltered workshops would be forced to close" -- leaving about 7,500 disabled adults
without jobs, the department said in its report.
Icet and Nodler both said lawmakers are unlikely to force the closure of sheltered workshops, even if they have
to cut budgets by 25 percent. Rather than make realistic suggestions, Nodler said it seemed the department took
"a political approach to try to create pressures" on lawmakers.
But the education department was not alone in warning of dire consequences.
The Department of Public Safety reported that budget cuts could force the closure of its veterans cemeteries and
one of its veterans homes, resulting in the repayment of millions of federal construction dollars.
Capitol Police warned it could have to stop providing protection at the Governor's Mansion and reduce its staff
at the Capitol. That could put an estimated 220,000 annual Capitol visitors -- a majority of whom are
schoolchildren -- at a greater risk of violence similar to last year's fatal shootings at the Kirkwood City Hall, the
report said.
Among other possible budget-cutting outlined by state agencies:
 The Department of Economic Development said potential job training cuts could affect between 5,875 and
   9,875 workers, and a reduction in tourism promotion could result in a $175 million to $293 million decline
   in tourist spending in Missouri. It said a cut to the Office of Public Counsel could reduce its ability to affect
   rate cases, "and utility consumers' rates will be higher than they otherwise would be."
 The Department of Transportation said it could have to eliminate one of the twice-daily Amtrak passenger
   trains between St. Louis and Kansas City.
 The Department of Agriculture said payments to ethanol and biodiesel plants might have to be reduced.

   The Department of Labor and Industrial Relations said it could have to lay off investigators who handle
    discrimination complaints -- a move it said was counterintuitive because more people file complaints during
    economic downturns.
   The Department of Natural Resources said it could be forced to reduce its water pollution control
    monitoring in southwest Missouri and eliminate county courthouse restoration grants.
A budget adviser for Nixon has said Missouri could face a $342 million budget shortfall during the remaining six
months of the 2009 fiscal year.
Economists for the legislative and executive branches are still working on official revenue projections for the rest
of this fiscal year and next. It's possible, legislative budget leaders say, that revenues for the 2010 fiscal year may
still be lower than they were in 2008.
Thus the reason lawmakers are preparing for spending cuts.
"One of the strategies I would probably employ is to spread the pain as far and wide as possible, so everyone has
to bear a little bit of the burden," Icet said.
St. Louis Post-Dispatch
Missouri Legislature to start its 2009 session this week with hope, fear
Sunday, January 4, 2009
JEFFERSON CITY — The Missouri Legislature will launch its 2009 session this week with a new bipartisan
tone that officials hope will help them steer the state away from looming financial shoals.
Republican legislative leaders have pledged to work with Jay Nixon, the incoming Democratic governor, to tackle
the slumping economy and a projected $342 million budget shortfall this fiscal year.
"I'm happy to get along," said House Speaker-designate Ron Richard, R-Joplin. "The times warrant partnership."
The legislative session will kick off at noon Wednesday, when the 163 House members and 34 senators elect
their leaders and hear opening speeches. Republicans have commanding majorities in both chambers: 89-74 in
the House and 23-11 in the Senate.
Nixon and legislative leaders agree no taxes should be raised and more jobs must be created. But just how they'll
avoid red ink remains unclear — especially given the goals Nixon laid out during the campaign.
"It's going to come down to being creative," said Rep. Sam Komo, D-House Springs.
Nixon, who will be inaugurated on the Capitol steps Jan. 12, is keeping the details of his budget plan close to the
vest until he makes his "State of the State" speech later this month.
The new governor maintains that even with declining revenue, he can advance his pledges, such as covering
thousands of low-income people who were dropped from Medicaid in 2005. He said in an interview Friday that
he would focus first on insuring more children.
"Are we going to get all the way to the finish line the first year? No, but changing the direction of this means
we're much more likely to begin a process" of expanding health care, Nixon said.
An expected federal stimulus package could give the state some breathing room. Some legislators also are
pushing for a state bond issue to fund highway and university capital improvements, but Nixon said he would
not propose the state take on more debt.
"The people elected me to take the dollars we have and move forward the best we could," he said.
Traditionally, the first several weeks are slow while legislators await the governor's budget address. But both
House leader Richard and Senate President Pro Tem-designate Charlie Shields, R-St. Joseph, plan to break that
Shields has scheduled experts to testify at eight special Senate seminars, beginning with energy issues on Tuesday
and health insurance and life science on Wednesday. Richard intends to appoint committees this week so they
can begin holding hearings on bills.

"We're doing double-time starting the first day," Richard said. He wants the House to send all the major bills to
the Senate by mid-March, when legislators take a spring break. The session ends May 15.
Economic issues will dominate the session.
"No matter what party you're in, that's our No. 1 task," said House Minority Leader Paul LeVota, D-
With job losses mounting, personal income growth in Missouri has dipped to its lowest level since 2003. As a
result, individual income and sales taxes — the bulwarks of the state budget — have dropped.
Nixon's team projects that tax collections will fall about $623 million short of projections this fiscal year, which
ends June 30. The state can use $281 million in leftover surplus funds but that still leaves a shortfall of $342
Next year will be worse: Some say that without cuts, the budget gap could approach $1 billion.
Finding a billion dollars in savings "is a daunting task," lobbyist Jim Moody, a former state budget director, told
the Missouri School Boards Association recently. "I'm glad I'm not sitting in (Nixon's) chair."
Sen. Chuck Purgason, R-Caulfield, has filed a bill that would freeze state tax credits, which divert hundreds of
millions of tax dollars each year into special programs ranging from housing development to livestock breeding.
If tax credits aren't cut, education will take a huge hit in the budget, Purgason said.
Colleges and universities, for example, have predicted layoffs, tuition increases and closed facilities, among other
things, if the state orders budget cuts as large as 15 percent to 20 percent.
Nixon said getting Missourians back to work is the key to solving the state's budget problem.
He wants to expand the state's Quality Jobs program, which rewards employers that provide high-paying jobs
with health insurance. Nixon also wants to boost worker training funds and provide low-interest loans to small
When he announced the jobs plan last month, Nixon drew effusive praise from Republican leaders as well as the
state's largest business groups — the Missouri Chamber of Commerce & Industry and Associated Industries of
"Actually, the governor sounds like a Republican," quipped Richard. "I told him that. He chuckled."
While united on the need for business incentives, Nixon and Republican leaders part ways over what to do on
health care.
During the campaign, Nixon pledged to find $265 million in state funds to reverse the cuts that knocked 100,00
low-income adults off Medicaid in 2005. He also called for covering all Missouri children.
The GOP's leaders say the state can't afford Nixon's proposals. Legislators hope to find middle ground, perhaps
with a plan similar to the "Insure Missouri" initiative proposed by outgoing Gov. Matt Blunt.
Under a version of that plan that died in the Legislature last year, the working poor would have received help
from the state to buy private health insurance. But even the poorest family would have been required to set up a
savings account to pay some medical expenses.
Shields, the Senate leader and a hospital executive, said: "We're going to have to put bright folks together and say,
'How do you get at this coverage issue, 700,000 people without insurance?' We have to whittle that number
Other front-burner issues include energy and ethics.
AmerenUE is expected to ask legislators to allow the utility to charge ratepayers for construction of a second
nuclear unit in Callaway County.
A 1976 state law passed by voters prohibits utilities from recovering costs from a new power plant before it's
fully operational.
Shields predicted a compromise would be reached to satisfy consumer groups and the utility. He said legislators

"support the concept" of a second nuclear plant but want to make sure ratepayers are protected.
On ethics, Democrats will push for the reinstatement of campaign finance limits, which were repealed last year.
But Shields, who sponsored the repeal, said donors found ways to get around the limits, making it hard to track
the money under the old system.
He said lifting the limits made the system more transparent. For example, donations exceeding $5,000 must be
reported electronically within 48 hours.

The Kansas City Star
Cancer claims life of Missouri education commissioner
Wednesday, January 7, 2009

Missouri Education Commissioner D. Kent King, a former small-town English teacher who shepherded
the state’s most urban school districts through high-stakes struggles with academic performance, died

King, who had continued to work through early December despite battling cancer for more than two years,
was 65.

He stepped into the state’s top educator role in 2000 and soon had to respond to a series of crises, starting
in Kansas City.

In 2001, Kansas City had an unaccredited district, a fractured board and a green superintendent, Bernard
Taylor, all facing a state takeover if they couldn’t pull things together.

“He helped me, and he helped the district immeasurably,” said Taylor, now the superintendent in Grand
Rapids, Mich.

He didn’t cut Kansas City any slack but was determined that the district get all the help the state could give,
Taylor said, adding, “He was tough but fair.”

King was raised in south-central Missouri, teaching in Houston, Mo., and becoming superintendent of the
Licking School District before leading Rolla schools for two decades.

But he came into the role of commissioner ready to help the state’s big-city districts, said Al Mauro, a
former Kansas City school board member and board president.

“He had a great sympathy for what we were going through,” Mauro said. “He understood the issues of
urban education.”

King was always available by his private number to Kansas City’s leaders, Mauro said, and was eager to

During King’s tenure, the state retooled its accreditation process, recasting the state’s role from judge to

The transition had begun under previous commissioner Bob Bartman, as educators rallied lawmakers to
boost the state’s under-funded school systems in the early 1990s.

The state wanted to hold districts accountable for the increased funds and created the Missouri School
Improvement Plan to guide and measure school performance.

When King retired from Rolla in 1996, Bartman recruited him to lead the MSIP program.

“We couldn’t afford to let the program slip,” said Bartman, now the superintendent of the Center School

When Bartman retired from the commissioner post in 2000, the state school board wanted a leader to boost
the state’s service role and deal with the trouble in its major cities, said Tom Davis of Kansas City, former
state board president.

“We needed a guy with two traits,” Davis said. “Someone who understood what was necessary to make a
difference for kids and who had the grounding and stability to address the questions in a sound way. Kent
had both.”

The No Child Left Behind Act raised the stakes beginning in 2001. The required standards and a
demanding schedule of rising benchmarks increased the pressure on struggling districts.

While Kansas City has clung to provisional accreditation, the Wellston School District near St. Louis came
under state control in 2005, and St. Louis followed in 2007.

King wanted to bring more resources to help districts that were under the most strain, said Jim Morris,
King’s spokesman throughout his tenure.

Kansas City last year became the first district to begin a new accreditation process in which the district is
working with the state to develop a turnaround plan to strive for full accreditation together. Instead of a
one-time grading process that determines a district’s accreditation, the state will be monitoring Kansas
City’s progress, allowing the district roughly two years.

Whether the new approach will succeed remains to be seen. Kansas City and St. Louis continue to struggle.

Deputy Commissioner Bert Schulte has taken charge of the department and could be formerly designated
as the acting commissioner at the state school board meeting next week, Morris said. The state school
board selects the education commissioner.

Columbia Daily Tribune
State education chief dies of brain cancer
Wednesday, January 7, 2009

Missouri Education Commissioner Kent King died Wednesday after a two-year battle with cancer, House
Speaker Ron Richards announced Wednesday afternoon on the floor of the Missouri House.

In an e-mail to school districts yesterday, King’s assistant, Robin Coffman, said King’s cancer had advanced
quickly and that he had decided to stop chemotherapy. She added that King was “quite ill” at his Rolla
home with family.

King, 65, was diagnosed with a brain tumor in October 2006 but managed to juggle job duties while
undergoing treatment. He presided over the Missouri Board of Education meeting last month, Department
of Elementary and Secondary Education spokesman Jim Morris said. The latest diagnosis “happened very
rapidly,” he said.

Deputy Commissioner Bert Schulte has been functioning as commissioner in King’s absence.

Springfield News-Leader
Education leader King dies
Colleagues recall commissioner of education’s impact.
Thursday, January 8, 2009

D. Kent King, Missouri Commissioner of Education and a long-time leader in public education, died at his
Rolla home on Tuesday due to brain cancer. He had surgery for a brain tumor in 2006 but the cancer
returned and spread rapidly. He was 65.

Those who knew the Drury University graduate described him as passionate, fearless and extremely
dedicated to the education of Missouri's children.

"One-hundred percent of his time and efforts went to what's best for kids in Missouri," said Peter
Herschend, member of the state board of education for 17 years.

Herschend, who worked with King for about 12 years, said he was impressed with his leadership, ability and

A telling example of King's resolve came about three years ago, Herschend recalled, when the decision was
made to pull accreditation from the Wellston school district in St. Louis. Then president of the board,
Herschend had to face an unruly crowd in opposition to the move.

But King supported the move and did not waver in his belief that the children of Wellston deserved better
than what they were receiving.

"Kent King was 'Cool Hand Luke,'" Herschend said.

"He strongly believed that if the district was not held accountable, the kids would never realize their

King will be remembered for his commitment to early childhood education and his commitment to
education reform, friends said.

State Rep. Sara Lampe, a former Springfield schools educator, said King has "always been focused on the
needs of children."

"You could always count on Kent to be the person to come forward ... and bring the strong message of
public schools," said Lampe, D-Springfield.

Local superintendents also expressed a sadness at King's passing.

"He fought hard for what he believed was the best for the kids," said Nixa superintendent Stephen
Kleinsmith. "And he fought with energy, professional tact and a high degree of confidence in himself."

Even when they were in disagreement, Kleinsmith respected King's passion for quality education.

Springfield superintendent Norm Ridder recalls similar qualities.

"One of his greatest strengths was his ability to have a strong conversation, be humble and listen, but also
put his opinions across," Ridder said.

King also possessed a keen self-deprecating sense of humor, Ridder said. Together, they walked the halls of
a Springfield elementary school last spring. Ridder remembered being taken off guard by King drily joking
about his own weakening condition.

"I almost fell down, he was so funny," Ridder said. "But I think he was just trying to make me feel

King was born in Preston, in Hickory County.

After completing his undergraduate degree in English in three years at Central Missouri State University in
1964, he began his 44-year career in education. He was an English teacher and junior high school principal
at Houston for six years. He received his master's degree from Drury College in 1967 and his doctoral
degree from Oklahoma State University in 1972.

From 1971 to 1977, he was superintendent of schools for the Licking school district. He served the next 19
years as superintendent of the Rolla Public Schools.

King joined the Department of Elementary and Secondary Education in 1996. He was appointed
Commissioner of Education in 2000 by the State Board of Education and served in that capacity until his
death. He is only the fourth person to hold the office of Missouri Commissioner of Education.

Funeral services for King will be held at at 2 p.m. Sunday at the First United Methodist Church Rolla.

In lieu of flowers, the family suggests memorial gifts be made to the D. Kent King Memorial Fund, c/o
Champions of Rolla Education (CORE), PO Box 1204, Rolla, MO 65402.

News-Leader reporter Chad Livengood contributed to this report.

St. Louis Business Journal
Mo. education commissioner King dies
Wednesday, January 7, 2009

After battling a cancerous brain tumor for two years, Missouri Education Commissioner Kent King died

King, 65, of Rolla, was diagnosed with cancer in 2006 but had continued to preside over state board of
education meetings until recently.

“Dr. King was a true public servant, dedicated to the ideals of public education and to the welfare of
students,” said Gov.-elect Jay Nixon in a statement. “That dedication did not waver for more than 40 years,
from the time he was a teacher, principal and superintendent through his tenure for the past eight years as
commissioner of education.”

Deputy Commissioner Bert Schulte had been serving as commissioner in King's absence.

“He was a valued member of my cabinet who shared my belief that education should be the highest priority
of state government,” outgoing Gov. Matt Blunt said in a statement.

Columbia Missourian
Missouri stem cell research critics refile lawsuit
By CHRIS BLANK/The Associated Press
Thursday, January 8, 2009

JEFFERSON CITY — Missouri critics of embryonic stem cell research have resurrected a lawsuit that
seeks to block $21 million from going to life sciences research.

The lawsuit, filed by Missouri Roundtable for Life, is similar to one tossed out in November by Cole
County Judge Richard Callahan, who ruled that there was no genuine legal dispute to be decided.

In its amended lawsuit publicized Tuesday, Missouri Roundtable for Life claims there is a legal dispute over
whether lawmakers had the authority to include $21 million in the state budget to disburse as life science
research grants.

That money is to flow from the Life Sciences Research Trust Fund to the Life Sciences Research Board,
which then distributes the money as research grants. The trust fund was created in 2003 to spend one-
quarter of Missouri's annual proceeds from a legal settlement between states and tobacco companies.

The 2003 law that created the trust fund bars spending money for abortion services and human cloning —
restrictions that stem cell research critics contend were trumped by a 2006 constitutional amendment
endorsing embryonic stem cell research.

Two years ago, voters approved a ballot measure that guaranteed stem cell research legal under federal law
would be allowed in Missouri. That allows scientists to clone embryos in laboratories and remove the stem
cells — a procedure that some critics contend creates and destroys human life at its earliest stages.

In the revised lawsuit, Missouri Roundtable for Life argues that passage of the 2006 amendment invalidated
the 2003 research restrictions, which triggered a provision in state law invalidating lawmakers' plan to spend
$21 million for the research grants.

Donn Rubin, the chairman of the Missouri Coalition for Lifesaving Cures that backed the 2006 stem cell
amendment, said Tuesday that the Missouri Roundtable for Life essentially refiled its same arguments.

"It sounds like they've filed the same suit with the same wild claims that have no substance," Rubin said.

Ed Martin, an attorney representing the stem cell research critics, said that there are significant changes in
the revised lawsuit, which is why it was permitted to be refiled. He accused Rubin of distorting the truth.

"It's catchy, but it's not fair and it's not true," Martin said of Rubin's assertions.

Martin, the former chief of staff for Gov. Matt Blunt, said Missouri Roundtable for Life now asserts that
the 2006 stem cell amendment made it impossible to spend the $21 million appropriation instead of asking
a judge to determine if the 2003 research limits still applied.

The the lawsuit was filed Monday.

Also Monday, Missouri Roundtable for Life announced it planned to push for a proposed constitutional
amendment on the 2010 ballot that would limit the types of research that can be supported by state funds.

The Chronicle of Higher Education
Colleges see slowest growth in state aid in 5 years
Friday, January 9, 2009

State-tax support for higher education increased by less than 1 percent in the 2008-9 budget year, to
$78.5-billion, according to an annual report released today by the Center for the Study of Education
Policy, at Illinois State University. This was the first time in five years that state aid for higher
education grew more slowly than it had the year before.

What's more, many states are considering midyear budget cuts that would reduce money for colleges
this year, even as legislators begin to draft budgets for next year. Over all, states could face budget gaps
that total as much as $200-billion in the current fiscal year and the next one, the National Governors
Association said in December.

For most states, the budget year begins on July 1.

It is common for states to change their appropriations during the course of the fiscal year to balance
their budgets, but the situation is especially uncertain this year because of the revenue shortfalls that
nearly every state is experiencing, said James C. Palmer, who directs the national survey at the Illinois
State education-policy center.

The shifting budget numbers make state-by-state comparisons of higher-education spending more
difficult this year than in previous years of the survey, Mr. Palmer said. Some states provided figures
that do not include amounts that colleges had received but have been ordered to hold in reserve or
give back, he said.

A total of 14 states reported declines in the tax dollars they provided to higher education for the 2008-
9 budget year, according to the Illinois State survey, known as the Grapevine Project. South Carolina
made the biggest cut, a reduction of 17.7 percent from the previous year.

Wyoming provided the largest increase, giving higher education 10.9 percent more this year than in
2007-8. Hawaii was the only other state that raised support for higher education by more than 10
percent. Eleven states either increased higher education appropriations by less than 2 percent or
reported no change in support, the survey found.

The grim news about state budgets comes just one year after state funds for colleges jumped by 7.5
percent nationally, the largest annual increase since 1985. Last year 15 states raised spending on higher
education by double-digit percentages from the year before, and only one state, Rhode Island, made a
cut, reducing money for colleges by 1.2 percent.

Nationally, state appropriations for higher education have actually declined only three times since 1992,
most recently in the 2004 fiscal year, when spending was down by 2.1 percent.

The Grapevine Project figures represent only state-tax appropriations for the general operation of
higher education, not total spending. They omit nontax sources of revenue, like lottery income, and
exclude state-tax revenue earmarked for capital expenditures and debt service.

The Chronicle of Higher Education
Recession may drive more adult students to take online courses
Friday, January 9, 2009
Economic storms historically have prompted more adults to seek shelter in the classroom. But this time
around, two-year colleges and private for-profit institutions are especially optimistic about attracting more
students—and many of those older students will probably take courses online, according to one of the
authors of a recent survey.
The 2008 Sloan Survey of Online Learning, released in November before the extent of the recession was
clear, found that while all types of colleges anticipate enrollment bumps because of high unemployment,
two-year and private for-profit institutions expect to increase their rolls more than others since they “tend
to offer programs that have traditionally been tailored to serve working adults.”
And as the economic forecast has grown increasingly pessimistic, these expectations are more likely to play
out, according to I. Elaine Allen, an associate professor at Babson College, one of the report’s authors.
“A lot of people want to increase their skill levels or get that degree they didn’t have,” Ms. Allen told The
Chronicle this week. The threat of losing their jobs, she said, “can be as big a motivator as the actuality.”
Ms. Allen also expects the number of students enrolled in online courses, which two-year and private for-
profit colleges have embraced, to rise during the recession. Back in November, the Sloan survey asserted
that the high cost of gasoline might compel more people to learn from home. Although gas prices have
since fallen, Ms. Allen said she still expects the struggling economy to push more students into online
courses for other reasons.
“If you don’t have a job, lowering your gas costs is not your primary motivation for going back to school
online,” she said. “Time-wise, you have the flexibility of logging online and taking the course whenever you
want. We also see that most of the online learners are older, and there are family issues.” With online
programs, she said, “you don’t have to leave your house. If you have a family, that’s going to make things
much easier for you.”
If the recession does move more adults into cyberclassrooms, it will accelerate a trend that has been
happening since the Sloan Consortium began publishing its online-education reports, in 2003. As of 2007—
the most recently analyzed data—more than a fifth of all students enrolled in higher education were taking
at least one online course. The survey defined that as courses where “at least 80 percent of the course
content is delivered online.”
According to the survey data, two-year colleges and large public universities have been the most enthusiastic
about adding Web-based courses and programs to their curricula.
But Ms. Allen said public institutions were “not anticipating huge growth anymore online.” Two-year
colleges and for-profit institutions, on the other hand, have not yet met their maximum potential in online
enrollments, she said.
Both public universities and two-year colleges did agree that online courses were “critical” to their long-
term strategies, while baccalaureate institutions generally refrained from ascribing them such dramatic
importance. Still, 58 percent of all colleges surveyed agreed that online courses were strategically critical.
That figure has remained roughly consistent over the last four years, leading the authors of the report to
conclude that the perceived strategic importance of the Web may have peaked. At the same time, they note
that 70 percent of colleges report that competition for the growing pool of students interested in online
learning is increasing. “This competition may be leading schools to increase their geographic reach and to
concentrate on nondegree, nontraditional students,” the authors wrote.
“For the first time, [schools] are seeing students choose another college for its online program,” said Ms.

The Chronicle of Higher Education
Colleges protect workers and cut elsewhere
Monday, January 5, 2009

Most colleges have steered through the first jolts of the recession without resorting to layoffs, cutting
employee benefits, or imposing across-the-board freezes on hiring. But the economic pain is afflicting
campuses in many other ways, according to the findings from a new survey of chief business officers
conducted last month by The Chronicle and Moody's Investors Service.

Slightly more than one in 10 colleges had laid off employees, and another 26 percent were considering
doing so, survey responses from more than 200 public and private four-year colleges showed.

While few institutions have imposed total freezes on hiring faculty members (5 percent) or staff
members (7 percent), more than 40 percent said they had imposed partial freezes on faculty hiring, and
nearly 60 percent had done so for other staff positions. (See tables, Page A14.)

The survey results suggest that colleges are taking pains to avoid reducing the benefits of current
employees — only about 6 percent said they had reduced benefits, and 18 percent of the remaining
ones were considering such a step. But more than one-third of all respondents said they had already
frozen salaries or delayed increases, and more than half of the rest said they expected to.

Roger Goodman, a Moody's senior analyst for higher education, said he was struck by the proportions
of those considering hiring freezes or pay cuts. Colleges are "taking a cautious approach to planning,"
he said, which seems appropriate.

Unlike other sectors of the economy, such as restaurants and retail, "which have already seen sharp
declines in their revenues," he noted, colleges probably won't begin to feel the full impact of the
downturn until the fall, when they enroll their next incoming classes.

"It's good that they have time to plan," said Mr. Goodman. "But it also means that the stakes for
getting it wrong are much higher." Colleges need to realize that if they plan their expenses on the basis
of a certain level of enrollment but fail to meet it, they must "live with it for four years."

The survey, which institutions answered anonymously, was sent to nearly 900 public and private
nonprofit institutions, including those that Moody's follows for its bond-rating service and about 300
others with budgets of $20-million or more.

While the survey is not fully representative of higher education, the results suggest that colleges on the
whole haven't been cutting jobs as extensively as have employers in other industries. For example, a
survey in December of 117 companies across a variety of industries by Watson Wyatt & Company, a
human-resources-consulting company, found that almost two in five companies had already made
layoffs, and that nearly one in five planned to do so in the next 12 months.

Still, as Mr. Goodman noted, for a sector like higher education, which has been in a largely expansive
mode for two decades, even the need for broad hiring freezes and spending cuts "is a substantial
change" in culture.

Differing Pressure Points
The sources of financial pressure for private colleges are different than those for public institutions,
and the survey responses reflect that.

For example, 60 percent of the public-college respondents said they had made midyear budget cuts in
areas unrelated to compensation, while only 43 percent of the private-college respondents had made
similar midyear cuts. For many of those public institutions, the cuts were likely to have been imposed
as part of statewide mandates.

Private colleges, meanwhile, are feeling the reverberations of the financial squeeze brought on by job
losses and the credit crunch, which are making it more difficult for some families to afford tuition bills.
Nearly a quarter of all private-college respondents said they expected their retention rates from the fall
to the spring semester to be slightly or substantially worse than last year's. By contrast, 13 percent of
respondents at public colleges, which tend to be less expensive, said they expected unusual declines in

A vast majority of private-college respondents, 83 percent, said they planned to keep their tuition
increases for next year lower than the average of the past three years, a sign of concern about scaring
off cost-conscious families. But nearly half of all public institutions said they expected their tuition
increase to be higher than the average of the past three years, presumably to make up for revenue they
will lose because of cuts in state support.

Colleges' other major source of revenue, private donations, is also under stress. Nearly 60 percent of all
colleges said were already seeing a decline in their annual giving totals to date, though less than 30
percent said they planned to lower their overall annual giving goals. (See related story, Page A16.)

Preserving Continuity
At some colleges, moves to insulate personnel from cuts have been deliberate. "We don't want to
poison the environment and make the employees pay the price of the economy," said Philip A.
Hawkey, executive vice president at the University of La Verne. The private institution, which has
several locations in California, has not reduced pay or benefits but is considering a range of changes
including voluntary furloughs, larger teaching loads, and consolidation of departments and
administrative functions.

Mr. Hawkey was one of 10 chief financial officers who identified himself and his institution when
answering the survey and agreed to be interviewed by The Chronicle.

A smaller institution, the College of Saint Rose, in Albany, N.Y., said it is trying to avoid layoffs
because many of its departments are run by one or two people and "there is a need for continuity,"
said Marcus F. Buckley, vice president for finance and administration. The college has delayed planned
renovations on its library and the last phase of a renovation of Albertus Hall, a key academic building.

Half of all respondents to the survey said they had or were planning to postpone or cancel building
projects. Among the private colleges, 48 percent said yes to that question; among the public colleges,
the proportion was 58 percent, which may indicate that their projects, like their overall budgets, may
be subject to statewide cuts.

The University of Missouri system, expecting such cuts — perhaps as deep as 25 percent in the next
fiscal year — has already imposed a freeze on hiring for all but the most crucial faculty and staff
positions, said Natalie Krawitz, vice president for finance and administration.

The four-campus system is weighing a range of other options, including furloughs, consolidating
academic programs, increasing faculty workloads, and adjusting class schedules to make fuller use of
campus facilities.

Ms. Krawitz said the additional measures would be painful because the institutions still have not
recovered from recession-related cuts imposed early this decade. "We were on a plan to get back to
2001 funding by 2010," she said.

Even officials in states that have not been hit as hard by the recession, like Oregon, are worried. Public
colleges there have not made any layoffs, said Jay D. Kenton, vice chancellor for finance and
administration in the Oregon University System, and they are slated to receive increases from the state
in the next biennial budget. But that could change as the economy chills. "We're waiting for the other
shoe to drop," he said.

'Full Steam Ahead'
Not all of the survey responses were negative. Gary L. Carter, chief financial officer of Union
University, in Jackson, Tenn., said he expected no need to freeze hiring or cut spending. "Our
retention for the spring looks as good as it's ever been," he said. The institution, which saw 60 percent
of its student housing destroyed in a tornado in February, managed to rebuild all of it by the start of
the fall semester and is in the process of expanding to a location near Nashville. The new housing and
the college's relatively low cost — tuition, room, and board amount to about $26,000 a year — makes
it appealing to many families, he said.

And then there was this, from Donald Aungst, chief financial officer at Upper Iowa University, who
sent an even more optimistic message with his survey responses: "We do not plan to defer our
expansion plans. We intend to charge full steam ahead."

Mr. Aungst was completing the survey from Kuala Lumpur, Malaysia, he added, where he and a
delegation from the college were working to cement academic alliances and create new ones.

The university, he wrote, was not considering any of the cutbacks or retrenchments mentioned in the
survey: "We believe global students will need a UIU education even more during these tough times,
and we plan to answer the call."

Jeffrey Brainard contributed to this article.

The Chronicle of Higher Education
Colleges press new ideas as they brace for bumpy state-budget sessions
Tuesday, January 6, 2009

As state legislatures convene in the coming days and weeks, colleges will be battling to stave off large
cuts, with governors in places like Arizona, Missouri, and Ohio asking public colleges to prepare for
budget reductions of as much as 25 percent.

Nearly every state is now projecting a revenue shortfall for both the current budget year and the next
fiscal year, and few public-college officials expect to dodge the budget ax. But some higher-education
leaders and state policy makers see the bleak economic outlook as an opportunity to press for broad
changes in college policy and operations that haven't had much traction under better financial

The bad budget times are also leading college and government officials to suggest ideas for paring
costs that have been too politically unpopular to even put on the table in past years, such as merging
institutions, eliminating tenure, and even turning a major public research university into a private one.

Among the college officials who say lawmakers seem to be listening to their plans more carefully now
that they are grappling with bad budgets is John B. Simpson, president of the State University of New
York at Buffalo.

In December he told state senators that New York's top-tier public universities could save money and
operate more efficiently without regulations that require state approval for contracts and purchases.
The institutions should also have more control over tuition and be able to borrow private money for
building projects and to lease or purchase land, say Mr. Simpson and other SUNY leaders who have
long pressed for such changes, without success.

"In the midst of this economic crisis, we should not lose sight of the opportunities and solutions
available to us," Mr. Simpson said at a legislative hearing. New York officials have cut $210-million,
about 6 percent of state appropriations, from the SUNY budget in the current fiscal year. Gov. David
A. Paterson's proposed budget for next year would cut $40-million more from the system.

Elsewhere, Gov. Charlie Crist of Florida, a Republican, changed his tune in the midst of his state's
budget downturn after years of fighting with university leaders over tuition. With the state's 11 public
universities slammed by recent budget cuts, the governor proposed in November to allow the
institutions to raise tuition by as much as 15 percent and to gradually bring their prices up to the
national average.

The universities and the state's Board of Governors have fought with the Legislature in recent years
over who has the power to set tuition. The state reduced higher-education spending by 6 percent for
the current fiscal year, and the governor is warning that colleges could face another cut, of 4 percent, in
this year's budget.

Accountability Push
Faced with difficult choices as they draft budgets for the next fiscal year, which begins in July in most
states, legislators may have different ideas than college leaders about what changes are due for higher
education. Over all, states could face budget gaps that total as much as $200-billion for the current and
next fiscal years, according to a survey of state fiscal conditions by the National Governors
Association, released last month.

The National Conference of State Legislatures has released recommendations that call on legislators to
seek more accountability, such as by basing appropriations for colleges on the number of people they
graduate, instead of the number they enroll.

"They've got to start putting their money where it matters," said Joni E. Finney, vice president of the
National Center for Public Policy and Higher Education, a California-based nonprofit group.

Lawmakers in many states are especially concerned about loosening restrictions on tuition, especially in
the throes of a recession when some families are likely to have a harder time scraping together money
to pay for the rising price of college.

"If it goes any higher we're going to lose a lot of students, especially middle-income and lower-middle
income," said State Rep. Phyllis Gutierrez Kenney, Democrat of Washington, where four-year public
colleges are limited to increasing tuition by no more than 7 percent each year. Washington's governor,
Christine O. Gregoire, a Democrat, has told public colleges to plan for a budget cut of up to 20
percent for next year.

Representative Kenney said colleges should look to save money not by sidestepping state regulations
but by cutting underenrolled or redundant programs. "They've been told for a number of years they
have to get rid of programs that aren't working," she said. "There's no room for basket weaving
anymore, anywhere."

Responses to Budget Cuts
The dire economic conditions have also inspired an array of ideas from lawmakers and college officials
about how they might cut costs by significant amounts. Proposals have included capping enrollment,
consolidating campuses, slashing state-aid programs, and eliminating tenure.

Charles B. Reed, chancellor of the California State University system, has announced he will cut
enrollment by 10,000 students next year if state lawmakers don't increase appropriations. Gov. Arnold
Schwarzenegger, a Republican, has cut more than $31-million from Cal State since the 2009 budget
was adopted and has recommended nearly $66-million more in cuts for the current fiscal year to help
close the fast-growing state budget gap.

In Georgia, State Sen. Seth Harp, a Republican and chairman of the Senate higher-education
committee, suggested that two of the state's historically black universities merge with two
predominantly white institutions after Gov. Sonny Perdue, a Republican, took back the increase of
nearly 8 percent the state had originally allocated to the university system for the current year. The
Board of Regents for the University System of Georgia, which would have to approve such a merger,
is not likely to consider that suggestion, which has sparked outrage among many educators at
historically black colleges.

Among other proposals to absorb cuts and trim costs, Idaho State University is considering lowering
the number of general-education credits students need to graduate in order to reduce the need for
some faculty members. Gov. C.L. (Butch) Otter, a Republican, has ordered state agencies to cut
spending by 3 percent for the current fiscal year.

In Michigan, a legislative panel has suggested eliminating a $200-million merit-scholarship program
that accounts for about 40 percent of the money the state spends on student aid. The nine-member
Legislative Commission on Government Efficiency also suggested turning the University of Michigan
into a private institution to save the state money, an idea that even members of the commission have
said is unwise. It would require voter approval, since the proposal would amend the state's
Constitution, and there is likely to be little public support for such a plan.

Lawmakers in New Jersey have already voted to tighten eligibility for two of its merit-scholarship
programs for students who attend or earn degrees from community colleges. One program, which
provides full scholarships to community colleges for high-school graduates in the top 20 percent of
their class, would be limited to graduates in the top 15 percent if Gov. Jon S. Corzine, a Democrat,
signs the measure as expected. The same legislation would also alter a program that provides $4,000
per year to students who go on to a four-year institution after completing a community-college degree.
Students who earned a grade-point average of at least 3.0 in their community-college program are now
eligible, but that requirement would rise to 3.25 if the bill is signed.

The Kentucky Community and Technical College system, meanwhile, is weighing the possibility of
eliminating the tenure track for newly hired professors and instead offering them four-year contracts.
The system's Board of Regents has not indicated whether it will approve the idea, which has sparked a
flurry of protests from faculty members.

Colleges in some states are also being drawn into partisan debates over taxes. Gov. Steven L. Beshear
of Kentucky, a Democrat, is asking college officials to back a 70-cent increase in cigarette taxes to
reduce a proposed 4-percent, or $41-million, budget cut next year for higher education, to 2 percent,
or $20.5-million.

Colleges and universities have traditionally stayed out of the debate over revenues, but these are
"desperate times," said Richard A. Crofts, president of the Kentucky Council on Postsecondary
Education. .

The measure appears to face long odds. A plan to increase the tobacco tax by a lesser amount failed to
win enough legislative support to pass last year.

In most states, however, whether higher taxes are on the table or not, college advocates say they will
seek to persuade lawmakers to protect them from the worst of the fiscal blows, with the argument that
higher education plays a key role in bolstering state economies, many of which are in dire need of help.

"We're looking at huge budget cuts," said Susan M. Lehr, vice president for government relations at
Florida Community College at Jacksonville. "We're just hoping that somehow, by some miracle, we'll
be spared since we're so involved in economic development."

The Chronicle of Higher Education
Moody’s sees stiff challenges for colleges – especially private ones – in next year
Tuesday, January 6, 2009
A new annual-outlook report from Moody’s Investors Service says that higher-education institutions are
facing a range of challenges in the next year and a half. Although all colleges will face hardship, private
colleges will be especially stressed compared with public colleges and community colleges.
Roger Goodman, a Moody’s vice president and author of the report, said that this was the first negative
outlook for all sectors of higher education since the credit-rating agency started publishing higher-education
outlooks in the mid-1990s.
The outlook is consistent with trends that Moody’s has been marking over the past year. Last January,
Moody’s released an outlook that said that the climate for colleges was stable, but that several factors, like
lower investment returns and higher energy costs, could lead to problems for colleges (The Chronicle, January
25, 2008). In August, as the economy got significantly weaker, Moody’s released an update that maintained
a stable outlook, but cited more risks amid an eroding housing market and fund-raising climate (The
Chronicle, August 1, 2008).
In those reports, Moody’s noted that private colleges were especially vulnerable as families look for lower-
cost alternatives among public colleges and community colleges, a point reiterated in this report.
The new report, "2009 U.S. Higher Education Outlook," says that colleges face risks in four crucial areas:
 The first is increasing pressure on tuition and financial aid, with declines in household income,
    investments, and home equity. Access to loans is also scarcer. However, Moody’s considers college
    education to be “a nondiscretionary expense,” which means that families will generally not postpone
    enrolling children in college.
 Second is loss in endowments, which will probably be the largest in recent decades—down perhaps as
    much as 35 percent since June. The report says those losses will not necessarily lead to rating
 Third, many colleges are facing pressure on liquidity. "Investments in hedge funds, private equity, and
    other private investment vehicles are generally proving even more illiquid than originally thought," the
    report says.
 Lastly, many colleges are exposed to volatility in variable-rate debt markets.
The short-term risks from these four challenges outweigh risks from longer-term challenges, like changing
demographic trends, Mr. Goodman said.
Fortunately, colleges plan with long lead times, he added. “That is why there is so much in the report
mentioning management and governance as being extremely critical for how colleges weather this cycle,” he
said, speaking over the phone from Florida, where he is attending a leadership conference organized by the
Council of Independent Colleges. “If a college goes into the next year’s budget without some kind of
contingency plan if enrollment or tuition were to come in below expectations, that is a big red flag.”
College leaders at the conference seemed to show an intense interest in financial issues, he said. “I think
there are some institutions that feel locked in,” he said. “They now recognize the risks of the variable-rate
debt that they took on, but they are not quite sure how to get out of it when a lot of the outs that would
normally be there just aren’t there in this environment.”
The report is available to Moody's subscribers.

The Chronicle of Higher Education
Colleges offer extra aid to strapped students
Monday, January 5, 2009
Among all the uncertainty colleges face in this recession, they are sure of one thing: Families are feeling less
than confident about their ability to pay for higher education. And many colleges are not sitting idly by.
Colleges are creating more student-aid programs or expanding existing ones. Others are offering students
additional counseling or a grace period for paying their tuition bills. And even some that haven't seen an
increase in student need are preparing for one next year.
Northern Illinois University recently announced a new aid program, the Huskie Advantage, for students
who qualify for federal Pell Grants and need-based state grants.
The program, which is just for freshmen, will meet tuition costs not covered by state and federal aid.
To finance the program, the university is shifting money from upperclassmen to freshmen, who don't
qualify for as much federal aid, says Brent A. Gage, assistant vice provost for enrollment services.
Agnes Scott College, in Georgia, also has a new program, the Agnes Solution, for students eligible for the
state's Hope Scholarships. The college's scholarship will provide $15,300 in aid each year, as well as a one-
time $3,000 grant. Combined with a $3,000 Hope Scholarship, the new aid will reduce the cost of
attendance at Agnes Scott by almost half.
The college also announced its next tuition increase early, in December instead of January, because it
wanted to help families plan, says Lee Ann M. Afton, associate vice president for enrollment and dean of
admissions. And the increase was the smallest in 35 years, at just under 2.7 percent. That will require Agnes
Scott to make cuts, like reducing professional development for staff members. But no student services are
on the chopping block.
Saint Mary's University of Minnesota is raising private money to increase the size of its Brother James Miller
Program for Access, which focuses on lowand middle-income students.
Saint Mary's began the program three years ago to lower the cost of attendance to the average at Big Ten
universities, for students who met certain academic qualifications and whose families made $75,000 a year
or less. Now, because of the economic downturn, Saint Mary's has raised the income cap to $100,000.
The university is also giving more aid to its neediest students. The Miller program typically uses a
combination of government and institutional aid to bring Saint Mary's cost in line with the Big Ten average.
Now, for the 25 percent of students with the most need, the university will use its money alone to bring the
cost to that level. Then it will add federal aid, reducing the cost even further.
Getting the Word Out
Some private institutions, like the University of Pennsylvania, worry that families aren't going to look
beyond a hefty sticker price. Back in December 2007, Penn said it would expand its already robust financial
aid to eliminate loans for all students beginning in the fall of 2009. The university is going ahead with its
plan, and Bill Schilling, director of financial aid, wanted to be sure the message got out.
So Penn's admissions and financial-aid offices e-mailed a letter explaining its financial-aid policies to
109,000 high-school seniors who had expressed interest in the university. Penn also posted a video on its
financial-aid Web site in which several current students said they didn't have a lot of money for college but
had received generous aid.
The Sage Colleges, in New York, also wanted to send a clear signal to families that their costs would be
predictable and affordable, says Dan Lundquist, interim vice president for marketing and enrollment
management. The colleges promise to meet the full need of admitted students this fall. Sage expects that

change to have no impact on revenue because its two undergraduate campuses were already planning to add
a total of 150 to 200 students to next year's class.
Colleges with sparser resources, too, are trying to help students. Montgomery County Community College,
in Pennsylvania, has lost 20 percent of its endowment and is stepping up its fund-raising efforts, in part to
increase student aid. The college is starting an alumni phone-athon and emphasizing the message that every
contribution counts in a weak economy. It hopes to raise $2.2-million in this fiscal year, up from $2-million
last year, for its capital campaign and scholarships. Aid would be increased to students who qualify for less
than the full amount of Pell Grants or who just miss the cutoff. (A full Pell Grant covers tuition for in-
district students.)
Now is a good time for colleges to show they are affordable — but at least one expert cautions against
using short-term gimmicks. Robert A. Sevier, senior vice president for strategy at the higher-education-
marketing company Stamats Inc., says colleges need to think of long-term consequences when they make
changes in their student aid.
For example, he says, if a college is going to focus aid on freshmen, it is important that the difference be
made up from some other source in later years, so that students don't then face a reduction in their aid. "We
know statistically if a student can barely afford college as a freshman," Mr. Sevier says, "they almost never
come back as a sophomore."
Left in the Lurch
Several colleges in Michigan face a local problem on top of the national recession — tuition
reimbursements that are no longer being made by the Big Three automakers. Wayne State University
created a temporary response center in the fall to help students who were new to federal aid get through the
application process. The university also offered a grace period, allowing students who owed less than $1,500
to register for spring classes while working with the financial-aid office.
Lawrence Technological University took a different approach. After Ford Motors dropped its tuition-
reimbursement program in May, the university waived $1,000 worth of tuition for the affected students and
set up payment plans for them. Students who later lost tuition reimbursements from the other two
automakers received the same deal.
Now Lawrence is doing even more: In December it announced a program that will provide grants to cover
half of the tuition for 200 undergraduate and 200 graduate students who have lost their jobs. Lawrence is
also offering new certificate programs in growing fields like sustainability and alternative energy, and has
expanded its career-service programs.
In Ohio, which has also been hit hard by the automakers' decline, Ohio State University is preparing for
tough times. Martha M. Garland, vice provost for enrollment services and dean of undergraduate education,
says the university hasn't heard from many students who are having trouble making ends meet. But the
bursar's office still pooled emergency loan funds to make it easier to dole out money if things do get worse.
The University of North Carolina at Chapel Hill is prepared to see more students apply for aid next year,
and with greater need, says Shirley A. Ort, associate provost and director of scholarships and student aid. In
preparation she has asked the university's endowment board for more flexibility in how the financial-aid
office spends its portion of the endowment payout. The office will also track how many students don't
return this semester and how many request late payment for their tuition.
Still, as colleges plan for the months ahead, Mr. Sevier, the consultant, says that perhaps the best thing they
can do is help students graduate on time and get into the work force.

The Wall Street Journal
Tuition ammunition: A happy lesson on lending
The U.S. Government’s
Tuesday, January 6, 2009
Despite a massive federal effort to aid banks and boost the economy, lending has plunged in the last year. Home-
mortgage volume and bank loans to big companies are down dramatically.
But the government's response is expanding credit in at least one sector: higher education. Although the
recession is weighing on colleges in many ways, the ability of students to get federal loans to pay tuition isn't one
of them.
As of Nov. 28, the federal government had guaranteed or made $65.2 billion in student loans for the 2008-09
school year, up 18.6% from the same time a year earlier. In contrast, lending for home mortgages was down
nearly 38% through the end of November, according to Inside Mortgage Finance, a trade publication. A recent
Harvard Business School study found a similar decline in loans to big corporations.
With some schools considering tuition increases and private student loans becoming scarce, many students and
families will still face borrowing challenges.
For the moment, however, student-lending boosts are working well, experts and lenders say, because Congress
and the Bush administration intervened quickly. Legislation in the spring ensured that government capital would
be committed only if new loans were made. In the broader rescue effort outside the education sector, the
Treasury provided tens of billions of dollars to banks without requiring any increase in lending, which has
become a focal point of criticism.
Under the Ensuring Continued Access to Student Loans Act, parents can defer repayment of federal loans they
take out until after their child is out of school. Annual borrowing limits for unsubsidized Stafford loans -- federal
loans for which students don't have to prove financial need -- were increased by $2,000, bringing the cap to as
high as $7,500 a year for juniors and seniors.
Like auto manufacturers and investment firms, some student lenders sought upfront infusions of federal funds.
But under the Student Loan Act -- signed into law just a month after it was introduced in Congress -- the
government required lenders to make loans with their own funds before the federal government would buy or
invest in them.
"We thought that was one of the ways to do it to make sure they were, in fact, players in the game," said U.S.
Rep. George Miller, the California Democrat who is chairman of the House Committee on Education and Labor.
Some observers say the effort could help guide intervention efforts elsewhere in the economy. If federal officials
had responded as well as they did with student loans, "we might not be in as bad a pickle as we are," said Philip
Day, president of the National Association of Student Financial Aid Administrators.
U.S. Education Secretary Margaret Spellings said she is not ready to "declare any victories," but "what we have
seen so far is that the programs we have put in place are having the desired effect."
"So far, our students have not had any lack of loan access," said Patricia McGuire, president of Trinity
Washington University, who told the Senate banking committee in April that she was concerned about the
availability of credit.
The student-loan market is a fraction of the size of those for mortgages and commercial loans, and troubles in
home lending have been complicated by defaults on existing loans, not a major issue with college lending.
For the time being, the stability granted by the broadened loan access has provided some significant measure of
relief in light of other economic woes pressing higher education. Job losses are making it tougher for parents to
write tuition checks. Some budget-strapped schools are pursuing enrollment caps and double-digit tuition
increases as they face declines in endowment earnings and state support.
"We still feel like more money needs to go into financial aid," said Carmen Berkley, president of the U.S. Student
Association, a Washington advocacy group that is lobbying Congress to let students borrow more money under
federal programs.

The stability of federal loans has benefited college student Ashlin Ware. With both parents deceased and no one
to co-sign for her on a private loan, Ms. Ware said she couldn't consider a more expensive school than the
University of Wisconsin. A junior, she has relied on part-time work and various forms of financial aid --
including federal loans -- to pay her way. "If I don't have my federal loans or the loans from school, there is no
way for me to go to school," she said.
The availability of private credit, however, continues to be an issue. Private loans accounted for about $17.6
billion, or one-fifth of the $85.9 billion in total lending, in the 2007-08 academic year, according to the College
Board. Although such loans frequently come with higher interest rates than federal loans, they have become a
major source of financial aid in the past decade as tuition increases have outpaced gains in family income and
federal student-aid limits.
Amid the credit crunch, 39 lenders have stopped making private student loans; others have tightened lending
standards. Lenders and analysts estimate that private student lending has fallen as much as 25% this school year,
as the market for selling bundles of these loans as securities to investors has dried up.
The decline is likely to prompt more students to pursue less expensive options. "The cloud of this financing issue
will push more of them to state public universities and community colleges," said Tim Ranzetta, president of
Student Lending Analytics, a research concern in Palo Alto, Calif.Ben Kittner, of Raleigh, N.C., said the cost and
availability of federal loans are major reasons his daughter, Kaylie, a high-school senior, is applying to three state
schools and only one private one. "Definitely, it will come into consideration when we know where she is
accepted," said Mr. Kittner, a market-research manager for a nonprofit.
To help jump-start private lending, the Federal Reserve announced in November a $200 billion program to
encourage investors to buy securities backed by private student loans and other consumer debt. Observers say
changes on the federal side are likely to lessen the demand for private loans.
The mainstay sources of credit -- loans guaranteed or made by the federal government -- are expanding. During
the 2008-09 academic year, guaranteed loans made under the Federal Family Education Loan Program have risen
9.4% to $46.7 billion, despite the fact that 106 lenders have pulled out of the program. Hundreds of schools have
switched to the program in which the government lends directly to students. Loan volume in that program is up
50.4% to $18.5 billion.
Hit by subsidy cuts in 2007, FFELP lenders last year saw their profits erode even further as the credit crunch
caused them to offer investors higher interest rates to sell loan-backed securities, a major source of lending
capital. By April, more than 30 lenders had stopped making FFELP loans and SLM Corp., the big student lender
known as Sallie Mae, was warning it might do so as well.
But the Student Loan Act empowered the Department of Education, with support of the U.S. Treasury, to buy
new FFELP loans directly from lenders, paying them the full principal value, plus accrued interest and a $75 fee.
The government also agreed to invest in trusts containing new FFELP loans and, in return for certain payments,
reimburse lenders for the full cost of the loans. Lenders would have to use any federal money they received to
make new loans.
"This program was implemented in what I would call record time," said Jack Remondi, chief financial officer of
Sallie Mae, which plans to make $20 billion of FFELP loans this school year.
Federal officials say the government has directly purchased about $97 million of loans and invested about $10
billion in the trusts. Both figures are expected to grow before the end of the school year.
Although the law originally was set to expire after 2008-09, Congress extended it for another school year to
reassure students and families as they made plans for 2009-10. Meanwhile, the Department of Education recently
announced a plan under which it will act as the buyer of last resort for certain securities backed by loans made as
far back as Oct. 1, 2003.
Terry Hartle, senior vice president of the American Council on Education, a trade group representing educational
institutions, cautioned that credit conditions have eroded significantly since the law was hashed out in the spring,
and that there is no telling how lenders will respond as the crisis drags on. But for the moment, he added, "this is
one piece of legislation that worked exactly as the play was drawn up on the blackboard."

Hattiesburg American
Recession leads to more tuition hikes
Tuesday, January 6, 2009

Get ready for tuition to rise - again. As the Legislature begins its session grappling with an already tight
budget during this recession, state universities are bracing for possible tuition hikes.

Nobody wants it.

State lawmakers told The Clarion-Ledger they hope to curb the ongoing trend of tuition hikes, though
the current economic crisis is making that increasingly unlikely.

When the College Board raised tuition last year, they said they had to because the Legislature didn't
provide needed funds. Last year, the Legislature increased higher ed funding by $10 million, but with
rising costs that didn't cover it all.

That's why the College Board raised tuition at Mississippi's eight public universities. That's why it may
happen again this year.

At the University of Southern Mississippi, tuition went up this year by $181, or 3.7 percent, to $5,096
annually. Southern Miss officials had requested a 12 percent increase.

"It's moving the shift of the cost of going to college to the individual user," said College Board
President Amy Whitten back in June.

Many of those individual users - students - are having to spread a traditional four-year education over
five or six years and incur other hidden expenses from textbooks to lab fees that also increase each
year above the rate of inflation.

It would be the 12th time in 13 years Mississippi raised tuition at its public universities. In the past 20
years, the average tuition at Mississippi's public universities has nearly tripled.

The weight on students and their families could keep many Mississippians from getting a college

Everyone has to tighten belts, and the universities have done that some already by cutting 2 percent off
this year's budget. Hiring freezes and postponed projects are part of the picture. Faculty have been
protected so far. At Southern Miss, long-range thinking about energy-efficient buildings and habits will
result in savings. These are all prudent measures.

It's going to take more, though, to keep students in school.

Many students who drop out of college are within $1,000 of meeting their expenses, a retention expert
told Southern Miss staff and faculty in November. We applaud the efforts of President Martha
Saunders to identify those students before they leave school and find financial aid to keep them in

But perhaps another notch needs to be punched in the belt. Was a new information booth at the
entrance of the Southern Miss campus needed, or could that $115,000 have gone to better use to repair
the cracking walls inside College Hall? And while that's not much money in the overall state budget, we
can't help but note that would have paid for a full year of tuition for 23 students.

Then there's other expenses Southern Miss - and the other public universities - may have to reconsider.
For example, USM should reconsider its intention to lease a plane from the USM Foundation for five
years for $1.89 million.

Finding more places to cut higher ed will be difficult, but it's encouraging that our legislators recognize
the importance of an educated populace and a workforce that earns a living wage.

Senate Universities and Colleges Committee Chairman Doug Davis, R-Hernando, told The Clarion-
Ledger he thinks it's too early to speculate on what the Legislature's budget will hold for higher ed, but
he still expects higher education to come out as a priority in this session.

"Higher ed is the best economical tool we have," he said.

We agree. But a tuition increase shouldn't be the last straw that breaks a family's back.

The Chronicle of Higher Education
Editorial: It’s time to improve academic, not just administrative, productivity
Tuesday, January 6, 2009

Events since September leave no doubt that the American economy is in the midst of a major restructuring.
While the consequences are not yet fully apparent, two powerful implications for higher education have
become clear.

First, because solutions to the nation's problems will require a highly educated work force, the demands on
colleges can only increase. Second, because of the financial meltdown, colleges will have to meet those
demands in an environment characterized by constrained state and federal support, more resistance to
tuition increases, greater need for financial aid, and reduced returns from endowments. Meeting such
challenges will require colleges to get the best possible results from what they spend — that is, to maximize
their productivity. Few would disagree with that basic notion, but the "how" can elicit great controversy.

Clearly we will continue to seek productivity increases in administration, facilities management, and other
areas. That's good, but it doesn't get at the core productivity question: What is happening on the academic
side of the enterprise? We simply can't afford to dodge the hard questions of academic productivity any
longer. Continuing to do so will lead to an accelerating decline in educational quality, not to mention
dereliction-of-duty charges by our critics.

I visited a campus recently that has been subject to chronic shortfalls in state appropriations and that, so far
at least, has continued business as usual in terms of learning formats. Administrators have boosted
efficiency and increased enrollments in order to garner tuition revenue but still have had to cut faculty
positions. In one department, for example, regular faculty numbers have declined from 42 to 28 over the
past 10 years — even as the number of credit hours taught has increased. The department continues to use
the same teaching paradigms, so what has had to give is small class sizes, courses taught by tenured
professors (replaced by largely unsupervised adjuncts), the number of writing assignments (which require
grading by faculty members), student advising, and other key drivers of quality. That is what we can look
forward to, writ large, if we try to meet the coming challenges with business as usual.

Let me emphasize that I'm not talking about how hard professors work or about institutions' commitment
to research. Faculty workloads can be debated endlessly, but the questions we in higher education should be
asking aren't "How hard is hard?" or "Is the right balance being struck between teaching and research?"
Rather, we should ask, "Are we analyzing the real drivers of quality and cost and then vigorously exploiting
the opportunities that we've unearthed?" My experience with colleges, along with my training as an
economist, convinces me that, too often, the answer to the last question is "no."

To see why, just consider the time and effort most faculty members and academic leaders spend on
understanding the activities and cost structures for teaching and learning, studying best practices inside and
outside the institution, and organizing innovative ways to use technology and human resources. Of course
one can point to such programs — and to the real gains that they have achieved — but the examples are
not at all widespread.

What is needed is for most, if not all, colleges to mount systematic and well-resourced programs for
analyzing and continuously improving the processes of teaching and learning. Because the "devil is in the
details" at each institution, one can't know in advance how much such programs will contribute to cost
savings and the overall quality of educational offerings. But one thing is certain: We won't find out if we
don't look, and looking requires faculty time. Until that time commitment is forthcoming and well
supported by institutions, the improvement of learning productivity will remain a slogan rather than a

Whether faculty members use some of the time that they would normally use for research to work on ways
to improve learning productivity is an important but not fundamental detail. That's because, in the end, a
policy of shortchanging an institution's teaching responsibilities in favor of research would be disastrous
intrinsically and politically. The issue is not how hard professors work (I believe most work very hard) or
whether they engage in research (most do and should), but whether they are tackling learning productivity
in a meaningful way.

What faculty members can do to improve teaching and learning productivity is no longer a mystery. What is
missing, besides time on task, is a passion to shed old ways and attitudes. Professors who engage in the
change process report that the quest is eminently worthwhile and the work satisfying. Yet most campuses
lack the incentives and resources to achieve critical mass. Building momentum will require concerted action
by presidents, provosts, deans, department heads, and senior faculty members.

Three examples demonstrate the efficacy of such action and illustrate how it can be initiated. First is the
course-redesign program conducted since 1999, initially with support by the Pew Charitable Trusts, by the
National Center for Academic Transformation. The center works with teams of faculty members to analyze
the activities associated with teaching and learning in large courses on campuses, to document course
objectives and develop assessment measures for them, and to identify and test alternative formats that
promise to improve cost-effectiveness. The center's results have been impressive. For example, the 30 initial
Pew-financed projects reduced per-student cost by 37 percent on average, with a range of 15 percent to 77
percent, while improving learning performance in 25 of the 30 projects (with the other five showing no
significant difference). Similar positive results have been obtained in subsequent course-redesign programs
conducted by the center.

The new formats often involve information technology, but technology is a tool rather than an objective.
Carol A. Twigg, the center's founder and chief executive, describes the approach as movement toward a
more activity-focused and assessment-driven pedagogy, usually accompanied by applications of technology.

The focus on activity deals directly with the learning process — one that pushes students to take a more
active role — while assessment supplies faculty members with the feedback necessary to diagnose and
correct learning problems. Technology allows such active learning processes to be expanded to large
courses and, as learning software and databases become better, to use faculty time more effectively.

At Rensselaer Polytechnic Institute during the 1990s, for example, professors used simulation and problem-
solving software to achieve learning increases in physics, chemistry, and calculus with significantly fewer
faculty and teaching-assistant hours. That "studio" approach to teaching has been adopted by institutions
around the world.

Another example is a program that the University of Minnesota at Rochester is developing through its
Center for Learning Innovation: a bachelor's degree in health sciences that reflects the application of such
principles on a curriculumwide basis. The university will offer the curriculum in a distinct format in which
faculty members engage students in structured, integrated ways that illustrate key connections among
biological sciences, quantitative sciences, life sciences, social sciences, and the humanities.

The goal is to personalize the learning experience — students are supported through one-on-one peer
mentoring, for example — while being cost-effective by using scalable, technology-facilitated pedagogy and
deploying faculty members in innovative ways. Rather than assigning professors to individual courses, for
example, so-called "design faculty" organize and monitor the learning experience while "student-based
faculty" (a type of adjunct) operate learning centers in the various subject areas to provide personalized
assistance when the software falls short.

As a third example, department-level audit programs also illustrate what can be done to improve
productivity within the context of traditional academic departments. I have worked with Steven W.
Graham, director of the President's Academic Leadership Institute at the University of Missouri system,

and Paula Myrick Short, vice chancellor for academic affairs at the Tennessee Board of Regents, to help put
such programs in place in their state systems. In both cases, academic leaders began by working with willing
departments to self-study their teaching and learning activities, identify evaluation measures, and propose
changes designed to improve quality and contain costs — which then were reviewed by peers from within
the system.

The academic-audit process is well positioned to encourage the introduction at various campuses across the
country of more course redesigns using technology, like those of the National Center for Academic
Transformation. The juxtaposition of self-study with peer review assures the effort's integrity, imposes
useful deadlines, and propagates best practices across the institution through the experience of auditors.
Auditors and those being audited both give the process high marks. The 20 campuses within Tennessee
reviewed some 143 programs between 2005 and 2008, with an additional 37 scheduled for 2009. The state
now accepts academic audit as part of its performance-accountability program.

Tennessee's experience shows that people outside academe can support the development of sophisticated
academic-quality work within institutions. The impetus for improvement came from within the Board of
Regents, but the state provided a major boost by embracing the results — thus avoiding a duplication and
dilution of quality-improvement efforts.

I fervently hope that this historic economic crisis will spur the creation of more systematic and well-
resourced programs for analyzing and continuously improving teaching and learning productivity. Without
doubt, in the longer term, the colleges that provide exemplary education will be those that have learned how
to harness learning technology for the benefit of their students. To paraphrase the reflections of President-
elect Barack Obama's new chief of staff, Rahm Emanuel, and other observers on how our nation should
respond to the current financial difficulties, "A crisis is a terrible thing to waste."

William F. Massy is a professor emeritus of education and business administration at Stanford University and a consultant to
colleges on education-quality processes. He is the author of several books, including (with Steven W. Graham and Paula
Myrick Short) Academic Quality Work: A Handbook for Improvement (Jossey-Bass, 2007).

The Chronicle of Higher Education
Energy drain by computers stifles efforts at cost control
‘We don’t have a meter on the data center,’ says one college official
Wednesday, January 7, 2009
Menlo Park, Calif. – For decades, the major computers at the Stanford Linear Accelerator Center have
multiplied almost without limit.
Row by row, racks of computer servers have expanded outward in a constant quest to provide computing
power for the center's data-intensive experiments. The servers have taken over new wings of an office
building at the site, which is operated by Stanford University. Many of those unfortunate enough to work
nearby have been displaced, and their former offices house towering black machines.
Now the pipes that supply cold water to help keep the servers cool are running at full capacity. The building
has trouble taking in the huge amounts of electricity that modern-day servers require. For each dollar spent
on computers, the center must spend an equal amount of money to build the power and cooling systems to
keep them running.
That cost "has been killing us," says Richard P. Mount, the center's head of scientific computing. The price
of storing and processing data, in fact, is hurting every college and university in the country.
In response, some institutions are embracing greener technologies, as much to keep costs down as to help
the environment. Stanford is moving toward building a new center that uses outside air instead of chilled
water, and it hopes to save just over $3-million per year. "Arguably, this pays for itself," says Phil Reese, the
university's faculty and research computing strategist. "There's not many arguments you can give that are
that strong." And there are other steps, like consolidating servers and outsourcing services, that are less
expensive than building a new facility and reduce data's budget-devouring appetite, computer experts told
The Chronicle.
But compared with other industries, colleges and universities have been slow to understand the problem
and to adopt energy-saving techniques, experts say. Colleges are decentralized, and they often lack a
cohesive strategy to reduce energy use. Researchers, in fact, often resist plans for centralization because they
want their own servers just down the hall. As a result, many institutions waste millions of dollars per year
powering inefficient machines, outdated cooling systems, and improvised clusters of servers stored in lab
closets and back rooms.
One survey, for instance, found that higher-education institutions are less likely than businesses, the K-12
sector, and the federal government to have a formal policy to encourage energy-efficient buying decisions
and are less likely to hold information-technology departments responsible for their own energy costs. The
survey was conducted in June by the computer vendor CDW-G.
"We typically in higher education have not had the financial incentives lined up," said Mark S. Askren,
assistant vice chancellor for administrative computing services at the University of California at Irvine.
"Folks in data-center organizations like mine who are consuming energy, we don't have a meter on the data
center. We don't even know how much we're consuming."
At Stanford, leaders realized the depth of the problem when plans for every new major building included
requests for major computing facilities inside of them, says Mr. Reese. The requests were symptomatic of a
larger problem that plagues many institutions, Mr. Reese says: Data centers are spread out across the
campus, making it more difficult to ensure that the computing facilities are energy efficient.
In response, the university is moving toward building a new, greener data center off-campus, on the site of
the Stanford Linear Accelerator Center. The new data center would serve the university's research needs as
well as take over half of the computing capacity of the linear accelerator itself, alleviating some of its
infrastructure problems.
The new facility would be twice as energy efficient as the university's current model, Mr. Reese says. The
building is designed to take advantage of Northern California's temperate climate, cooling the servers with

circulated outside air instead of using chilled water, which is expensive to cool down. It would also expel
the hot air given off by the servers, reducing the need for external cooling.
Mr. Reese says he expects the data center could cost upwards of $50-million, but he said the center will save
the university $3.2-million per year in energy costs over 25 years.
Stanford's proposed improvements are dramatic, but many efforts to increase efficiency do not require such
a large initial investment. In interviews, data-center experts recommend steps college administrators could
take to begin reducing a data center's energy costs.
Conduct an Audit
Some colleges do not understand how much money they are spending powering their data centers, and that
makes it difficult to solve the problem.
For many, the first step is to conduct an energy audit. Representatives from facilities departments can
typically measure how much power is being consumed at each of the campus's major data-center clusters,
says Dallas Thornton, a division director for cyberinfrastructure services at the San Diego Supercomputer
Center at the University of California at San Diego. They can then add up the readings to determine the
total data-center energy usage of the campus.
"More times than not, it will be a high number," Mr. Thornton says.
Private consultants and some equipment vendors also offer efficiency audits, though Mr. Thornton says an
effective audit can often be done in-house. A couple of common measurements have been developed to
evaluate the approximate energy efficiency of a data center, which often focus on the excess energy used by
the facility that houses the machines.
PUE, for example, which stands for power usage effectiveness, is calculated by taking the ratio of the
energy use of the total data-center facility and the energy use of just the IT systems themselves. (The Green
Grid, a prominent industry group that promotes energy-efficient data centers, explains the details of
measuring data center efficiency at
Colleges can often save significant amounts of energy by making small improvements to their cooling
systems, which can account for 50 percent of a data center's energy usage, says Jesse Hanz, a regional
director in Pittsburgh for APC, an equipment vendor that offers energy audits to colleges.
"There's no better place to start in the data center to become more energy efficient, because there's a lot of
waste there," says Mr. Hanz.
Establish a Working Group
The roadblocks to establishing more efficient data centers are as much organizational as they are technical.
Historically, IT departments have been responsible for selecting and paying for data-center equipment, but
facilities departments have been responsible for footing the electricity bill. Unless the two departments
coordinate their budgets and set energy efficiency as a common goal, reducing usage is difficult.
"The people buying the computer equipment don't have the incentive to spend a dollar to get a more
efficient computer even if they might save $5 or $10 on more-efficient energy use," says Jonathan Koomey,
a consulting professor at Stanford.
Long-term planning for operational costs could more easily be ignored when data centers were smaller and
the most important things were speed and access to the equipment. But now that the costs are so high,
establishing incentives to encourage energy-efficient behavior on the part of IT departments and faculty is
imperative, Mr. Koomey says. On some campuses, IT departments that can prove their purchases saved
money on operational costs recoup some of that money in their budgets.
Don Carli, a research fellow at the Institute for Sustainable Communication, an advocacy group, says
reducing energy use requires setting common goals among many parts of an organization, always difficult
on college campuses. Mr. Carli recommended forming a committee that has the power to create incentives
that seek to encourage more energy-efficient behavior.

"By its very nature, sustainability is an interdisciplinary concept," says Mr. Carli. "It's a systems-thinking
concept, and basically institutions of higher learning are a collection of silos."
One particularly inefficient strategy for grouping servers is common at colleges. Instead of using a
centralized data center, research groups install their own servers locally, often in back rooms and closets.
The set-up helps gives researchers greater access to their machines, but it can take 50 percent more energy
than the same amount of resources at a centralized data center. Researchers call them "server closets" or
"closet clusters."
Amin M. Vahdat, a professor of computer science at the University of California at San Diego, says the
strategy is particularly wasteful because researchers might only use the servers every so often, when they
have a paper due or need to perform calculations.
"I have my cluster and I only need it twice a year — well, I'm not going to power it down," says Mr.
Vahdat, who is researching how to build more energy-efficient networks. "I build my cluster, put it in an
energy-efficient closet, and use it twice a year, and I'm not exaggerating."
Forcing employees to use centralized facilities is much more difficult at a university than in the business
world, which makes it hard for colleges to control energy costs, says Gregory Ganger, director of the
Parallel Data Laboratory at Carnegie Mellon University. Researchers do not trust that IT departments will
be able to fit their individual needs, and they like to have direct access to their machines.
"At a company, the company can dictate the software you're going to use," Mr. Ganger says. "At a
university, theoretically the central administration could dictate the software you're going to use, but in
practice that's impossible. ... You're not going to dictate to them, 'Thou shalt use the following version of
More and more types of researchers are depending on large amounts of computing power to perform their
research, however, making a centralized data center for research all the more important. Mr. Ganger says
the practice of virtualization, which allows researchers to establish different operating environments while
using the same data center, has matured enough to work in a wider variety of situations.
New infrastructure is expensive, of course, and the recession is forcing some institutions to forgo building
their own new data centers. Instead, they are looking at ways campuses can share their facilities to achieve
greater economies of scale.
At the University of California, administrators are discussing establishing two data centers that will serve
some of the system's 10 campuses in each half of the state, says Mr. Thornton, at the San Diego
Supercomputer Center. Taking a regional approach, he says, could allow the university to build fewer
specialized facilities to power and cool the servers.
"It's something that in tough budget times that people are a lot more likely to be interested in," Mr.
Thornton says. "It's hard to go to bat to get new funding for a data center right now."
Some of the most energy-efficient data centers are those run by technology companies like Google and
Microsoft and the online retailer, whose profits depend on finding cost-effective ways to
store and process data. In the long term, experts expect many colleges to export much of their operations to
companies like these to save money and focus on what they know best.
Already, more than 1,000 colleges have signed up for e-mail service through Google or Microsoft, helping
those colleges reduce, if only slightly, their need for on-campus data centers. Despite some concerns about
student privacy, many colleges have reported that letting professionals take care of e-mail results in
significant savings.
A model for outsourcing more significant parts of the data center — the computing needed for scientific
research, for instance — is still being developed, says Thomas A. DeFanti, a professor of computer science
at the University of Illinois at Chicago. Even if some universities did figure out how to outsource more of

their computing resources, he says, some do not have access to networks that would support efficiently
moving such large amounts of data.
"There isn't a price model that everybody believes in yet, and it does of course depend on networking that's
not available in some places," Mr. DeFanti says.
Still, Mr. Koomey, the Stanford consulting professor, says the idea of using external resources "makes a ton
of sense."
"Why not let the people who have a lot of users do all the work?" he says. "It puts you at risk in some other
ways, but for the most part there really are economies of scale."
Greener Computing
Universities feeling the pinch on computing energy costs
Tuesday, January 6, 2009

OAKLAND, Calif. -- In some ways, it's the oldest story in the green IT book: rapid growth and a divide
between who runs up the utility bills and who pays the bills leads to spiraling IT costs; and when that waste
comes to light, steps are taken to bring costs back down through any number of means.

But when these problems arise in a university setting, especially among some of the country's biggest and
most IT-intensive universities, many of these problems are compounded with institutional issues, even if
the solutions for public-sector IT departments are much the same as in the private-sector.

That finding is the gist of a new article by Josh Keller in the latest issue of the Chronicle of Higher
Education. In the article, "Energy Drain by Computers Stifles Efforts at Cost Control," Keller looks at
some of the problems faced by Stanford University researchers and IT managers, and offers some ideas for
how to overcome those problems.

In these economically strapped times, all organizations are looking for ways to cut costs; but universities
have so far been less likely than other public-sector groups to look to green IT as a way to achieve those

But just as with private companies that are seeing their data needs -- both computing and storage -- growing
quickly, university officials at Stanford are seeing "plans for every new major building includ[e] requests for
major computing facilities inside of them," according to the Chronicle article. And at the same time, the
incentives to consolidate data facilities or purchase more energy efficient equipment are not as obvious,
because the folks running the data center are not in charge of paying the bills for those data centers.

If this all sounds familiar to you, then you're clearly ahead of the curve on the green IT front. But Keller
cites a handful of tried-and-true strategies that universities are getting on board with for cutting costs for
institutional computing.

In addition to establishing a working group to chart energy usage by department and conducting that all-
important energy audit, Keller notes how the University of California system is working on consolidating
their data centers into two regional facilities instead of decentralized centers on each campus. And Stanford
University is building a major new data center to power not only the school's entire research-computing
needs, but also to handle half the load of its Linear Accelerator Center; the new facility will include green
features that could save the school over $3 million per year in energy costs in the coming decades.

The Chronicle of Higher Education
Commentary: Students deserve a bailout, too
Thursday, January 8, 2009
As we leave 2008 behind us, it is hard not to reflect back on what has been a tumultuous year in the
financial world, culminating in scandals and bailouts. In 2009, we can probably expect not only more
financial upheaval, but also further attempts by state and local governments to stem the all-but-fated
turmoil. But in all the talk of bailouts, of embattled homeowners, and the transfers of public funds intended
to prop up various failing institutions, it seems that we are overlooking another worthy group of bailout
candidates: overburdened college graduates saddled with student-loan debt.
Now, before any of you Ayn Rand wannabes decide to slap me with the oh-so-predictable label of
"socialist," I am not talking about a wholesale bailout of everyone who's ever taken out a student loan and
failed to pay back their legal and moral obligation. What I am suggesting is providing some relief to those
who are being victimized by this current and unprecedented era of rapid changes in the marketplace —
changes that would have anyone hard-pressed to keep up as they struggle to survive.
I am suggesting a morally sound level of financial assistance in the form of hardship-based debt forgiveness
for those of us whom — it turns out — were sold a bill of goods regarding the value of a college degree as
it relates to socioeconomic advancement.
The situation is particularly dire for those of us from the lower rungs of the socioeconomic ladder, who
find ourselves waiting tables, sweeping floors, doing substitute teaching, or otherwise remaining chronically
underemployed instead of benefiting from an education meant to move us past our humble beginnings.
I propose that lenders perform a case-by-case analysis of each student in debt. Using a universal formula,
such as the formulas employed by the federal government for determining entitlement benefits and tax
deductions, lenders could then determine an appropriate amount of debt relief. Debt relief should take into
account the total amount owed, borrowers' efforts to make regular payments, and borrowers' average
annual postgraduate income in relation to expected earning potential (based on government and industry
economic forecasts, like hiring trends projected by Manpower Inc.).
Bailouts are unquestionably a slippery slope. But if we're going to talk about bailing out homeowners,
especially those with risky credit ratings who are struggling with mortgages for houses they couldn't afford
in the first place, and lenders, many of whom employ executives with extravagant salaries and golden-
parachute severance packages, then why not help those of us who were only trying to make an honest go of
The ideological arguments against bailing out either institutions or individuals are predictable. It is
commonly believed that more government aid encourages colleges to raise tuition because they assume that
students will be able to borrow to afford it. And some people even contend that students irresponsibly
borrow money for college knowing that their loans are backed by government guarantees and assume that
the government will never run out of money.
But most colleges are struggling to keep costs down, and most sensible people know full well that they must
work to earn a living and repay their student-aid debt. In today's economy, however, all bets are off as to
whether they'll even get a chance to do that. The shifting trends of the economy and job market have
resulted in a record number of unemployed college graduates looking for jobs. For this reason, it's an idea
that is at least worth considering for the New Year.
Here's to the possibility of a progressive 2009.
Jeffery Sims is an adult-education instructor at the Benton Harbor Street Ministry in Benton Harbor, Mich.

The Chronicle of Higher Education
Economist describes a missing pool of low-income college applicants
Monday, January 5, 2009

San Francisco – Each year thousands of high-achieving students from low-income families do not
apply to selective colleges that would almost certainly accept them, according to a paper presented here
on Saturday during the annual meeting of the American Economic Association.

Most such students do attend college somewhere—often at nonselective institutions where the median
SAT score is hundreds of points below their own. But they miss out on the challenging course work
and valuable career networks that a selective college might provide. And ironically, they might actually
pay more for their education, because some elite colleges now offer extensive financial aid to students
from low-income families.

“There is a large supply of low-income, high-achieving students who just do not apply at all to selective
colleges and universities,” said Caroline M. Hoxby, a professor of economics at Stanford University,
during a panel discussion of the economics of college-going.

And that matters, Ms. Hoxby said, both because elite colleges ought to be more economically diverse
and because the students’ own interests would be better served if they chose more-selective colleges.

Missed Advantages
“We know that at a given level of high-school achievement, a low-income student who attends a more-
selective college is more likely to graduate on time, more likely to be employed, and more likely to have
high earnings after graduation,” Ms. Hoxby said. “I’m not saying that all of those relationships are
causal. But even if they’re only partly causal, it seems worthwhile to get more of these students into
selective colleges.”

Ms. Hoxby and Christopher N. Avery, a professor of public policy at Harvard University, obtained a
huge cache of data from the College Board, which allowed them to analyze the entire population of
students who took the SAT in five recent years. The data included test scores, high-school grades, and
the names of the colleges where the students asked the College Board to send their scores (which is a
close proxy for where the students actually applied).

The two scholars used a variety of methods, including block-level census data, to estimate each
student’s household income. In their paper they define a family as “low income” if its income is below
the 30th percentile, which is around $28,000. They define a student as high-achieving if the student
had combined SAT scores above 1200, a high-school grade point average of B-plus or better, and at
least one Advanced Placement score of 4 or 5 (or an equivalently high score on an SAT subject-area

In one typical recent year, Ms. Hoxby said, there were roughly 21,000 high-achieving students from
low-income families. But more than 60 percent of those students did not make any “ambitious
applications,” the study found.

Ms. Hoxby and Mr. Avery regarded an application as ambitious if the college’s median combined SAT
score was no more than five percentiles below the student’s own score. “Notice that that’s a very
broad definition,” Ms. Hoxby said. “I’m not saying that you’re applying to a school where you would
be below the median."

But even under that generous definition, Ms. Hoxby and Mr. Avery found that a large majority of
those students did not make any ambitious applications. Instead, they typically applied to nonselective
(or only slightly selective) public institutions close to their homes.

High-achieving students from affluent families, the study found, are much more likely to apply to
colleges that are appropriate for their SAT scores and high-school grades.

“So why don’t these low-income students apply to selective colleges?” Ms. Hoxby asked. “What is the
point of studying hard in high school and taking the SAT if you’re not going to apply to selective
colleges that would accept you?”

Influence of Geography
After sifting through the data, Ms. Hoxby and Mr. Avery have tentatively concluded that the low-
income students who are least likely to make ambitious applications live in small towns and rural areas
where they are relatively isolated.

“Think of a high-achieving, low-income student in New York City,” Ms. Hoxby said. “That student is
going to get swept up into the magnet-school system and attend high school at some place like
Stuyvesant. That student will have a very high probability of attending a selective college. But most
low-income students are not in places like that. A student might be in a small school district where
teachers and counselors just don’t have any experience in advising students about selective colleges. So
these students are poorly informed about their college opportunities, and they have few allies.”

Ms. Hoxby and Sarah E. Turner, a professor of economics and education at the University of Virginia,
are planning a series of experiments in which school districts will give low-income students and their
parents new kinds of information about the process—and the potential benefits—of applying to
selective colleges.

An audience member asked whether interventions like those wouldn’t simply replicate the federal Gear
Up program and the many other programs that encourage college-going among low-income students.
Ms. Turner answered that those programs are typically aimed at persuading lower-achieving students to
consider going to college at all.

“The package of information that one wants to give a student who’s on the margin of dropping out of
high school,” she said, “is very different than the kind of information that would be useful to a high-
achieving student about applying to selective colleges.”

The Wall Street Journal
Princeton cuts budget as endowment slides
Friday, January 9, 2009

Princeton University announced budget cuts to offset a steep expected drop in its endowment, becoming
the latest wealthy college to institute austerity measures.

The Ivy League school also said it expected to raise tuition and fees next fall by only 2.9%, the smallest
increase in 43 years, to provide some relief for cash-strapped families.

The developments show the impact of what Princeton President Shirley Tilghman on Thursday called "the
turmoil gripping the world economy" on the nation's richest universities.

Princeton's endowment, valued at $16.3 billion on June 30, ranks fourth in higher education, behind
Harvard, Yale and Stanford, according to the latest official tally. But, because of Princeton's relatively small
size -- 7,500 students -- the school is the wealthiest of any major university in endowment per student,
which in its case comes to $2 million.

In recent years, the school had been early among its peers in sweetening financial-aid packages by replacing
loans with grants. Still, Princeton had been among those criticized for alleged hoarding of its endowment, as
some members of Congress discussed requiring colleges to spend at least 5% of their funds annually.

In recent years, Princeton has typically spent less than that. Thursday, the university said that with the
declines in its endowment and the need to fund programs, its annual spend-out rate from its endowment
could jump to 6%.

In a letter distributed to the Princeton campus, Dr. Tilghman said the school's conservative spending has
allowed it to add $5 million to financial-aid packages recently.

Princeton said it expected to raise tuition, room and board and other fees, currently $45,695, by 2.9% for
the 2009-2010 academic year, a relatively modest boost that would help families who pay full fare and don't
receive financial aid. That would be the smallest increase since 1966. In recent years, tuition, board and fees
have increased between 4% and 5% a year at Princeton, and had jumped as much as 14% annually in the

In line with Harvard, Yale and other top private schools, Princeton predicted a steep drop of 25% in its
endowment for its fiscal year, which ends June 30. That would amount to a loss of about $4.1 billion.

From July 1 through Oct. 31, Princeton said its endowment's marketable securities, such as publicly traded
stocks and bonds, had fallen 11%, compared with a 24% loss for the Standard & Poor's 500-stock index.
Harvard reported a 22% loss in its marketable securities and Yale a 13% loss.

None of the schools gave data on performance to date of their holdings of more exotic and illiquid
investments, such as real estate, commodities and private equities. The expected losses in those categories
have led to the bigger, full-year loss estimates.

Princeton said its endowment supports 45% of its roughly $1.25 billion budget -- far more than most
universities, making budget cuts necessary. Dr. Tilghman said the best-compensated employees would have
their raises capped at $2,000 and administrative budgets would be reduced by 5%. Princeton said it would
scrutinize all new hiring, including new faculty searches and defer new capital projects to save more than
$300 million over 10 years.

The Houston Chronicle
UT pushes lawmakers to modify ‘top 10% rule’
Wednesday, January 7, 2009

AUSTIN — The University of Texas at Austin has “lost control” of its admissions policy and wants to
change the law that guarantees automatic entry to students who graduate in the top 10 percent of their
high school class, UT President William Powers said on Wednesday.

Powers said a record 81 percent of the Texas freshmen entering the university this fall gained
admission through the so-called “top 10 percent rule.” Unless the Legislature changes the policy
during its upcoming 2009 session, Powers said, the state’s premier university soon would have no
room to admit any Texas student who does not meet that standard.

“We’ve lost control of our entering class because we don’t have any discretion on the admissions,”
Powers said at a legislative preview meeting hosted by the Texas Associated Press Managing Editors.
Powers said the university supports some form of automatic admission based on high school grades
but wants to modify existing law so that high achievers who happen to fall short of the top 10 percent
can gain entry.

Powers suggested that one solution would be to adopt a more “aggressive” program allowing students
to transfer to the university from community colleges.

The automatic-admissions law was adopted a decade ago after a federal appeals court decision made
affirmative action illegal in Texas college admissions. In 2003, the U.S. Supreme Court allowed
universities to use race as one of many decision-making factors.

Efforts to change the top 10 percent law, or place a cap on the number of students being admitted
under it, have fallen apart in past legislative sessions. Many Democrats have argued against modifying
it, saying the law has improved ethnic and geographic diversity at major universities over the past

Sen. Royce West, D-Dallas, who serves on the Senate panel that oversees higher education, agreed
Texas has a “capacity problem” but he said any modifications to the top 10 percent law should contain
a “sunset provision” that ensures the Legislature could revisit admissions policy if it’s not producing
the intended results. West also said studies have shown that students admitted under the provision do
better than those who aren’t.

“The top ten percent (rule) is working,” West said.

The 81st session of the Texas Legislature begins Tuesday at noon and runs for 140 days.

The Chronicle of Higher Education
Abilene Christian U. will continue iPhone giveaway, but gadgets add to worries about
Tuesday, January 6, 2009

Many students at Abilene Christian University now walk the campus tapping messages into their
cellphones or listening to music rather than calling out hellos to passers-by.

The university's unusual effort to give every freshman an iPhone or iPod Touch has been a huge
success, officials say, and they recently decided to continue the project in the fall. But the devices are
altering campus life at the 4,800-student college—and students say that not all of the shifts are positive.

"It has changed how people interact with one another on a day-to-day basis," said Daniel Paul
Watkins, a senior who is president of the student government. "Now walking around campus, nine out
of 10 students either have their iPod headphones in or they're texting or they're talking on the phone,"
he said. Sure, that's happening at colleges across the country, but Mr. Watkins, who bought his iPhone,
believes it is even more pronounced at a campus that has pushed the latest cellphones. "The West
Texas charm of 'Hey, howdy, everybody knows your name,' has shifted inward—everyone's enthralled
by their device."

Mr. Watkins also said that a few students were using the iPhones to cheat, furtively looking up test
answers on the Internet (The Chronicle, October 10, 2008). .

"Since the iPhones were introduced, I honestly think that academic integrity has gone down," said Mr.
Watkins. "I've seen people cheat, and I've heard people talk about how easy it is to cheat."

Administrators said that because Internet-ready phones are popular on many campuses, Abilene
Christian is not alone in wrestling with such social impacts of the technology. And officials say they
have not seen a rise in reports of cheating, and they defend the friendliness of the institution.

But because the college is aggressively encouraging students to make the smartphone a key
communication tool, the campus serves as an interesting laboratory for examining the gadgets’
impacts—both positive and negative.

"One of the things we want to do over time is try to work on how do we develop the etiquette around
these devices," said Kevin Roberts, the university's chief information officer. He said administrators
were considering adding discussions about the social and ethical impacts of the phones in a mandatory
course for freshmen next year.

And the university is developing technological tools that can prevent using iPhones to cheat.
Specifically, developers are building software that will let a professor take control of the iPhone of
every student in a classroom. That would allow the professor to send information or images to each
student's phone for educational purposes, but it could also be used to block use of the phones during a
test, said Mr. Roberts. "It could be something like parental controls on your TV," he added. Officials
hope to have a prototype of the system ready by the fall.

Over all, Mr. Roberts said that he was "thrilled" with how smoothly the iPhone experiment has gone
so far and how much students and professors are making use of the devices for educational purposes.

About 85 percent of freshmen at the university see the iPhones as "very valuable" to their education,
according to preliminary results of a university survey. And the freshmen said that 20 percent of their
courses made some use of the devices during the semester.

Officials plan to release the full results of the survey, and a report on their experiences so far, at a
national conference at the campus next month that will explore the use of cellphones at colleges.

William Rankin, an associate professor of English at Abilene Christian who is coordinating academic
uses of iPhones there, said programmers at the university had built software tools that let professors
conduct instant quizzes using the devices. The professors can ask true-or-false or multiple-choice
questions, and they can allow for free-form responses. The software can quickly sort and display the
answers so that a professor can view responses privately or share them with the class by projecting
them on a screen.

The university also designed a version of the university Web site for display on iPhones so that
students can view course materials and even register for courses using their phones.

Entering freshmen were given the choice of receiving either a free iPhone or a free iPod Touch, which
has all the same features as the iPhone except for cellphone service. Mr. Rankin said that about two-
thirds of students chose the iPhone.

Mr. Watkins, the student-government president, said that despite his concerns about the iPhone
program, he praised the college's efforts to develop services for the devices. And he said the project
has improved the university's reputation. "In the long run," he said, "it's going to make my degree
worth more."

The Chronicle of Higher Education
In move seen as harbinger, small Nebraska college suspends retirement contributions
Wednesday, January 7, 2009

Two years after budget pressures prompted Dana College to eliminate some academic programs and
lay off tenured faculty members, the struggling Nebraska institution is trying a different tactic amid
worsening economic conditions: ending its retirement contributions for all employees.

The decision by regents at Dana College, a private liberal-arts institution of 550 students in Blair, Neb.,
is uncommon, but one that other colleges are expected to consider as a way to stave off additional

Dana, which is associated with the Evangelical Lutheran Church in America, has been suffering
financially for years because of declining enrollments and soaring costs. In October regents voted to
end the college’s contributions to employees’ retirement plans with TIAA-CREF, just as many of those
employees were watching their accumulated savings diminish as stock values plunged.

The college had contributed 7 percent of employees' incomes into their retirement accounts, as long as
the employees contributed at least 5 percent. So an employee earning $40,000 a year who contributed 5
percent, or $2,000, could receive a $2,800 contribution from the college. Employees can still contribute
but may be less motivated to do so without the matching contribution from the college. It is unclear
when, if at all, Dana will resume its contributions.

“After examining a variety of options, we concluded that eliminating the contributions to the TIAA-
CREF pension plan in October of 2008 would have the least amount of impact on our employees,”
Nikki Kinsey, a spokesman for Dana College, said in a written statement.

The college's vice president and chief financial officer, Robert Schmoll, said that to help offset the loss
of retirement money, the college would absorb recent increases in employees' health-insurance

Employees, several of whom refused to be identified for fear of reprisal, said the retirement cuts hurt
but the alternative could be worse.

Sybille Bartels, a part-time professor emerita in languages and international studies, lost her full-time
tenured position at Dana two years ago when four academic programs were eliminated. Cutting
retirement benefits "is financially painful for all involved, especially for employees in low-paying staff
positions, and including those administrators charged with managing the college,” she wrote in an e-
mail message. “As someone who experienced the other approach, namely the loss of tenure and full-
time status, I would suggest that a temporary retirement-contribution cut for all is preferable to
eliminating positions and people.”

Another faculty member, who asked to remain unidentified, agreed. “I understand the need to make
cuts. If I were cutting, that’s where I’d reluctantly do it,” he said. “Still, it’s regrettable and a hardship.”

Despite the slumping economy and colleges’ endowment losses, most colleges are doing everything
they can to avoid layoffs, experts say (The Chronicle, January 9).

In 2007 one of Dana College's major donors, Howard L. Hawks, issued an ultimatum to Dana and
another small church-affiliated college, Midland Lutheran, also in Nebraska, saying he would no longer

donate money for capital projects unless the institutions made plans to merge operations (The Chronicle,
March 16, 2007).

That didn't happen, and both colleges continue to struggle today in a much tougher economic climate.

Officials from several national higher-education groups, including the National Association of
Independent Colleges and Universities, the College and University Professional Association for
Human Resources, and the Council of Independent Colleges, said they had not yet heard of any other
colleges suspending retirement contributions.

Asked about colleges cutting retirement plans, Chad W. Peterson, a spokesman for TIAA-CREF, said
that a "very small number of sponsors have reduced or are considering cuts to their plan

Corporate America is another story. Among the growing number of companies that have stopped
contributing to employee pension plans are Motorola, Federal Express, and Eastman Kodak.

The Chronicle of Higher Education
College 2.0: A wired way to rate professors – and to connect teachers
Thursday, January 8, 2009
Who is the most wired teacher at your college?
The folks at the University of Maryland-Baltimore County know the answer on their campus: Gerald
Canfield, an associate professor of information systems. He came out on top in the campus's latest rankings
of “most active instructors” using the university’s course-management system.
Just about every college has such a system these days, designed to track assignments and manage online
class discussions. But the Maryland campus is perhaps the first to publish campuswide usage statistics.
Mr. Canfield amassed 12,927 “hits” on Blackboard, the course-management system used by the university,
during the fall semester. That’s 1,000 more than the nearest competitor, and double the average at the
Administrators are not suggesting that the professors who lead the rankings are any better at teaching than
those lower on the list. But they may be better with technology. The data let those who are not so tech-
savvy find more expert colleagues and trade tips, says John Fritz, the administrator who manages
Blackboard at the university and who dreamed up the hit-tracker software.
“Faculty learn best from other faculty,” said Mr. Fritz. Although the university runs workshops on how to
use Blackboard, many professors are reluctant, or too busy, to sit through training sessions. Most would
prefer to ask a colleague down the hall for help, said Mr. Fritz. “Half of my job is referrals—I’m kind of a
He publishes reports about the hit-tracking software's findings on a university Web site and in a newsletter
sent to all faculty members each semester.
Bragging Rights
Many college leaders have been trying for years to get professors to try technological tools to jazz up their
teaching. But the independent ethos of the college environment has made it difficult to spread new teaching
practices among more-reluctant professors. Colleges have tried various carrots: Some give professors fancy
new office computers in exchange for attending training sessions. Others give grants to professors who
experiment with technology.
The genius of Mr. Fritz’s “Blackboard Reports” is that it gives professors who top the list (and those who
top department-by-department breakdowns) bragging rights—and a quantifiable measure they can put on a
Katherine Morris, an instructor in social work at the university who is the most active user in her
department, says she will “definitely” mention the statistic if she applies for another teaching position, as
proof that she is using the latest tools in the classroom.
“I really see that this is where education is going,” she said. When she talked about the rankings with
colleagues at a recent lunch meeting, “everyone wanted to know where they were ranked.” The public
nature of the rankings has already motivated some professors to do more with online tools than they have
in the past, she said.
Mr. Fritz initially worried that professors, especially those at the bottom of the list, would protest the new
rankings. So before the project began, he gathered a committee of about a dozen faculty members to advise
him (or talk him out of it). “I said, does anyone have any problems with this?” None did. Besides, he only
publishes the top 50 in any category—so there is no list of “least-active users.”

Measuring Teaching
The reports at Maryland remind us that as professors put material online, they are leaving far more of a
trace than traditional lecturers ever did. In the old days, once a class ended, the chalkboard was quickly
erased by the next group, and the scrawlings were gone forever. Now professors are converting their
yellowing lecture notes to text on course-management systems, or posting videos of their lecture
performances for students to watch later for review.
All of those materials are preserved on college servers. And such data could easily be used to evaluate the
quality of the teaching going on behind closed classroom doors, though the University of Maryland-
Baltimore County has no plans to do that.
Though the idea of using technology to rank activity is new to teaching, it has long been a staple of
academic research.
For decades, scientists have tracked the number of times their articles are cited by others, and such citation
indexes have been important for career advancement.
Teaching has had no similar metric—except, of course, for student evaluations. But many people consider
those evaluations imperfect measures because students may rate most favorably those professors who are
more generous with their grading rather than those who challenge them.
So in an era when colleges are under more pressure than ever to be accountable for their costs and quality,
the question arises: Will colleges begin to use technology to help them measure teaching? And should they?
Surprising Connections
Mr. Canfield said he was not surprised that he topped the list of most-active users at Maryland-Baltimore
County because he teaches all of his courses online.
But the "Blackboard Reports" have produced some surprises, said Mr. Fritz—including calling his attention
to professors in traditional classrooms who use more technology than he might have realized otherwise.
One example is Lili Cui, a lecturer in physics. She posts lecture notes and practice quizzes, and gives extra
credit for participation in the course's chat room. She said she spends at least 30 minutes every day reading
the discussions and answering questions that crop up there. Students consistently rate her highly on
evaluations, praising her responsiveness.
Mr. Fritz’s department now spends more time talking with Ms. Cui. It recently worked with her as she
experimented with a classroom response system that let her conduct quizzes in class and have the results
instantly displayed on a screen.
The reports have helped him know which professors are interested in doing more, he said, even if they have
not come forward asking for help
“What it at least gives me is some sort of barometer for distinguishing between all 1,300 courses,” he said.
The Maryland college plans to share the software it developed to create the reports with other colleges. And
perhaps it is just one way colleges will tap into new classroom technologies to rate their professors.
College 2.0 explores how new technologies are changing colleges. Please send ideas to

The Chronicle of Higher Education
Weak economy could curtail flow of Indian students into the U.S.
Friday, January 9, 2009
New Delhi – More than 94,000 Indian students enrolled at American colleges and universities in the fall of
2007—up nearly 24 percent from two years earlier—making India the largest source of foreign students in the
United States. But that boom may come to an end in 2009.
Thanks to tightening credit markets and a global slowdown in economic growth, Indian students are finding it
harder to secure loans to study abroad or are less willing to take on huge amounts of debt, according to Indian
news reports and interviews with students and college counseling firms. These firms say that as many as 90
percent of Indian students who study overseas rely on loans to pay for their tuition and living expenses. That
could spell bad news for American colleges, which are increasingly looking for new sources of revenue as their
budgets shrink.
Consider the case of K. Archana, an Indian student who graduated first in her class from India’s Osmania
University in 2006 and won admission to doctoral programs in microbiology at two American universities last
year. While preparing for her visa interview with the American consulate last May, Ms. Archana suddenly shelved
her plans to go the United States. The falling rupee and rising dollar made American tuition more expensive, she
says, and the bleak job market made taking a big loan from an Indian bank look scarier than ever.
Ms. Archana, who lives in Hyderabad, would have had to borrow as much as $42,000 to cover tuition and living
expenses, “which is a huge amount to think of taking a chance with," she said in a telephone interview, "because
there is a job crunch” in both India and the United States.
Many Indian students who take out loans to study in the United States prefer working there for a few years after
they graduate—for much higher wages than they could earn in India—so they can pay off their debt.
Fears about job prospects are widespread in India, as the finance and information-technology sectors have cut
back on hiring. At the globally renowned Indian Institute of Technology in Kanpur, where a graduate student
killed himself this month after he failed to get a job offer, only 47 percent of applicants found jobs in December
compared with 76 percent one year ago, according to the Indian Express newspaper.
The Educational Testing Service has reported that the number of Indian students taking the Graduate Record
Examinations fell from 74,000 in 2007 to 55,000 in 2008. That could result in a significant decline in graduate
applications to the United States, which absorbed nearly 80 percent of the more than 120,000 Indian students
who went abroad last year.
David Payne, the company's associate vice president for college and graduate programs, played down the drop.
He said the 2008 figures should be considered in relation to the spike in the number of Indian students who took
the test in early 2007, which was triggered by news that a new version of the test would be introduced that fall.
ETS ultimately delayed the rollout of the new test, but Mr. Payne says the effect was clear: “A normal response
of test takers is they try to avoid the changes by taking the test before the changes are introduced.”
Mr. Payne notes that 53,000 Indian students took the test in 2006, a number that is closer to 2008’s figures. He
acknowledged, though, that difficulty in getting loans could also have contributed to the decline this year.
“I put that in the category of beyond our control," he said. "We try to stay on top of that. At this point there may
be a perception that access to loans is a problem.”
When contacted by The Chronicle, five private Indian companies that offer exam coaching and other college-
preparation services say they fully expect the number of Indian students heading abroad to drop this year.
“Logically, one would say it’s a bad time to graduate now because job opportunities are down and a good time to
enter colleges,” said Jaideep Chowdhary, head of public relations at the Hyderabad-based Triumphant Institute
of Management Education, a counseling-services company. “Unfortunately that’s not how we’ve seen students
Reduced Lending
Indian banks have reduced lending because they fear an increase in defaulters as many companies have frozen
hiring or cut pay packages, says a senior bank official and college counselors. That means today’s prospective

borrowers often run from bank to bank looking for one willing to lend—a stark contrast to the past four years,
when the number of higher-education loans here almost doubled.
Lending figures for 2008-9 aren’t available yet, but a number of students say that they have had trouble securing
banks loans since September and October.
Even state-owned banks, which have been ordered by the government to increase educational lending, are asking
for documents that they never required in the past. The Rupee Times newspaper quoted an unnamed official from
the state-owned Indian Overseas Bank as saying that almost 25 percent of the nonperforming assets at his
branch alone are educational loans.
“There is going to be a subprime [crisis] even in educational loans,” the official said.
Perhaps because of the government’s order to increase educational lending, banks are reluctant to publicly admit
to the belt tightening. Officials from six state-owned banks contacted by The Chronicle either refused to comment
or didn’t return repeated phone calls.
One private banker said that lending standards over all have gotten more strict. “In general all unsecured loans’
norms have been tightened in the past six months,” said K.V.S. Manian, group head for liabilities at the private
Kotak Mahindra bank.
Mr. Manian says that Kotak Mahindra is a generous lender for education, and his cellphone ring tone is an
advertisement that says in Hindi: “If money grew on trees, your daughter would be studying in the U.S.” But he
also acknowledges that his bank doesn’t “aggressively pursue educational loans.” And it has tightened rules for
granting other unsecured loans, he said, which many borrowers use for education.
Akhil Kapoor, who will enter a master’s-degree program in computer engineering at San Jose State University
this year, couldn’t hide his disgust as he described his experience in applying for a loan from a private bank.
“After having said that I had all my documents in order, they suddenly asked me for copies of my parents’
degrees—which is ridiculous—two days before my visa interview at the U.S. Embassy,” said Mr. Kapoor.
He finally received a loan from the public Bank of India because his parents had held accounts there for decades.
“I could have used more money" from the other bank, he said, "but I didn’t bother.”
The Chronicle of Higher Education
Panel of college and industrial leaders urges Obama to ease limits on scientific exports and visas
Friday, January 9, 2009
Washington – A National Academies study panel is calling on Barack Obama to ease federal limits on high-
technology exports and visas for scientists and researchers as soon as he takes office as president, warning that
the risks to the nation’s economy and security preclude waiting any longer for Congressional action.
The Academies, which had some success in winning fund increases for college students and research institutions
after bringing out its 2005 “Gathering Storm” report on the role of science in global economic competitiveness
(The Chronicle, October 13, 2005), has now put forward "Fortress America," by a 20-member committee of
scientists and industry leaders, which highlights the negative effects of export controls and visa restrictions.
The new report says that Mr. Obama should immediately enact, by executive order, changes that include a
wholesale loosening of the criteria for allowing exports of sensitive technology. The president also should
establish a policy of automatic one-year visa extensions for any foreign student in a scientific field who wants to
seek employment or pursue further studies in the United States, it says.
Such changes are necessary because the United States still adheres to cold-war-era protections on its scientific
research, report authors say. “The system of export controls and visa applications of the United States is
broken,” said one of the committee’s co-chairmen, Brent Scowcroft, national security adviser to Presidents
Gerald Ford and George H. W. Bush. “They were crafted initially for a world which has disappeared.”
Action by the president is essential because, the report says, Congress for years has proved itself “unwilling or
unable to deal with” the visa and export-control limits stifling U.S. technological innovation.
U.S. regulations damage both the nation’s economic competitiveness and its national security by shutting the
United States off from outside discoveries, Mr. Scowcroft told a briefing here. “We are still a leader, but we are

only one among many,” he said. The committee’s proposal “recognizes the world as it is and as it’s going to
continue to change.”
The committee issued the 100-page report after two years of study. It highlighted the case of Goverdhan Mehta,
a past vice chancellor of the University of Hyderabad, in India, and past president of the International Council
for Science, who canceled plans to deliver a lecture at the University of Florida in 2006 after facing extensive
questioning by officials at the U.S. Consulate in Chennai, India (The Chronicle, March 10, 2006).
Mr. Mehta said he was embarrassed by the ordeal he endured, including questions from embassy officials he
regarded as challenging his integrity, and withdrew his visa application.
The proposal suggests nothing that would change either the current federal system concerning technologies that
are classified, meaning they cannot be disclosed even to U.S. citizens, or current limits that bar exports to certain
unfriendly nations,
Questions on Strategy
The report attracted words of support from higher-education and science groups, as well as cautions about the
political and, possibly, legal limits on Mr. Obama's acting in the manner it suggests.
The proposal to bypass Capitol Hill through a series of presidential orders shows that “Congress hasn’t been able
to do anything” on these issues, said Tobin L. Smith, senior federal-relations officer at the Association of
American Universities. Yet “the one thing I question is the feasibility of doing these things without Congress
actually raising a fit,” he said.
The possibility of Congressional criticism might not deter Mr. Obama, said Steven Aftergood, a specialist in
security policy at the Federation of American Scientists. “Today they are a minority and would probably be little
more than a nuisance politically,” said Mr. Aftergood, director of the federation’s Project on Government
Committee members thoroughly studied the president’s legal authority to impose such changes without
Congressional approval and became convinced that he could, said panel member Deanne C. Siemer, a managing
director at Wilsie LLC, a Washington law firm.
The chairman of the U.S. House of Representatives Science and Technology Committee, Rep. Bart Gordon,
Democrat of Tennessee, offered no objection to the president's taking action unilaterally. In a written statement,
Representative Gordon endorsed the Academies' committee’s concerns about current regulations as harmful to
American technological innovation and called the report “a serious attempt to better understand the nature of
the problem and to offer recommendations for reform.”
Problems Foreseen
Problems might prevent the panel’s ideas from working in the real world, Mr. Aftergood said. Researchers might
want to give government bureaucrats more discretion about exporting materials, equipment, and information,
but that might be difficult to establish in practice, he said.
“At some point,” Mr. Aftergood said, “officials in customs and law enforcement need actual lists, not conceptual
Researchers also might not benefit from the adoption of another of the report’s proposals, the creation of an
appeals panel composed of federal judges to adjudicate export-control disputes, Mr. Aftergood said. “Instead of
reasoned deliberation, they almost always defer to the government’s opposition to disclosure,” he said.
The National Academies panel was led by Mr. Scowcroft and John L. Hennessy, president of Stanford
University. Its academic members also included Claude R. Canizares, vice president for research at the
Massachusetts Institute of Technology; France A. Córdova, president of Purdue University; Elizabeth Rindskopf
Parker, dean of law at the University of the Pacific; and Mitchel B. Wallerstein, dean of social science at Syracuse


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