Posted on: Sunday, January 30, 2005

UH autonomy talks look at fiscal policy

By Beverly Creamer
Advertiser Education Writer

Sen. Clayton Hee dangled a tantalizing concept in front of University of Hawai'i administrators in budget hearings last week: the possibility of far more autonomy as well as a simplified budgeting principle based on lump-sum dollars allocated on a per-student basis.

Interim UH President David McClain indicated the university would like to explore that kind of plan with senators and representatives in the Higher Education committees, as long as there's agreement on what the costs are at different schools within the system as well as other costs implied by the UH mission.

"We might agree on what it costs to fund a student, but if we had a surge in our enrollment our accreditors would expect us to come back to you (for additional funding)," McClain told legislators.

Gov. Linda Lingle is pushing for autonomy for the university, with the introduction of five measures, including one to allow UH to float $250 million in bonds to build student housing.

As chairman of the Senate Higher Education Committee, Hee has been the first lawmaker to suggest that the Legislature might be willing this year to entertain such ideas. Rep. Tommy Waters, chairman of the House Higher Education Committee, noted that he wasn't sure if it would happen this year.

Hee said the Legislature would expect the university to report back each subsequent year, but said he would like to leave details of where the money goes to the university.

"You take your tuition and go forth with your nation," Hee told UH administrators. "If we say that you're sovereign, is that OK?"

Replied McClain: "I'm pretty attracted to that."

Continued Hee: "It's easiest to say, 'What does it cost to educate a child?' — and then you go and educate the child.

"Our job is to create policy, not decide what Xerox machine to buy. I don't think legislators should be involved in who you hire, the salary, your student-to-teacher ratio. ... That's your business. If you want new shoulder pads for the football players, you decide, and pay for it.

"I want to put everything on the table and see if we can make this work."

McClain has often noted that the university has received no additional money for the surge in enrollment — as much as 15 percent over the past four years — and notes that the university's accrediting bodies have asked why the state does not increase the budget as enrollment increases.

UH administrators have also made the point that UH tuition pays for just a small portion of what it costs to educate a student. For instance, at Manoa, the cost to educate each student is around $11,000 annually, with students footing 31 percent of that cost, or around $3,500 annually now.

Reach Beverly Creamer at bcreamer@honoluluadvertiser.com or 525-8013.