Renewed human capital investment needed

When the space shuttle Discovery launches this month, it will carry two University of California graduates on board.
For astronaut John Phillips, this will mark his third journey into space. Former middle school math and science teacher Joseph Acaba will be taking his first trip into orbit. These two are among 20 UC-educated astronauts who, since the early days of the space program, have expanded both the physical and intellectual frontiers of space travel. We at UC are certainly proud of our NASA connections, and I enthusiastically congratulate astronauts Phillips and Acaba on their upcoming journey.
At the same time, I am deeply concerned over the ability of California to continue to inspire and educate our future generations of promising students. In the years since Phillips and Acaba studied at UC campuses, state support for our higher education institutions has declined to a crisis level. I fear the day is fast approaching when we can no longer honestly say that every bright young Californian who dreams of healing the sick, founding new enterprises or flying into space will have access to an affordable public university education.
Last year, the California State University announced that it would lower its enrollment by 10,000 students to cope with dwindling state support. In January, UC Regents reluctantly took similar steps to curtail freshman enrollment by 2,300. UC currently has enrolled 11,000 students for which we receive no state funding. That leaves us with a $121.8 million shortfall. Even with this enrollment cutback, UC will still be significantly overenrolled in 2009-10. We simply could no longer afford to grow our enrollment and hope to maintain the quality of our educational offerings.
All segments of the university are making sacrifices to preserve that quality. A plan to raise faculty salaries to market rate has been suspended. We have enacted a wage freeze for senior managers, and students, unfortunately, will likely face another fee increase.
Nevertheless, we have made a commitment to hold steady our graduate student enrollment. We will also increase the number of California transfer students by 500 to help preserve an affordable pathway to UC from community colleges, which are facing their own budget cutbacks.
Given our state's serious budget deficits, such higher education funding downturns may seem inevitable. However, I would argue that now is precisely the time California must renew its investment in the human capital on which this state's economy depends.
These enrollment cutbacks will certainly impact individual California families and high school students who have worked hard to become eligible for a UC education. But the long-term effects will be felt throughout the state.
California's reputation as a seat of innovation and bold new discoveries came about, in large part, through the talents of a highly educated work force. The graduates of our public education system have been leaders in jump-starting new industries, founding new companies and creating new jobs - not just in California but throughout the nation.
At a time when California's economy begs for revitalization, we can't afford to withdraw our investment in higher education. Without that investment, California will be ill-equipped to deal with the economic pitfalls that lie ahead. For the investment in human capital plays just as important a role in fueling the state's economy as investments in infrastructure and products. Without human capital, California cannot maintain its standing as a land of invention and opportunity.
I look forward to hearing your thoughts on ways UC can contribute further to California's economic resurgence. Contact me at president@ucop.edu.
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