Here & Now

Sen. Stroebel Describes Plan To Keep Graduates In Wisconsin

FREDERICA FREYBERG:

IN OTHER STATE NEWS HOPING TO STEM THE BRAIN DRAIN OF COLLEGE GRADUATES WHO LEAVE WISCONSIN, ONE LAWMAKER IS PROPOSING TO PLUMP UP THE STATE’S CURRENT ACADEMIC EXCELLENCE HIGHER EDUCATION SCHOLARSHIP. THIS IS A HIGHLY COVETED SCHOLARSHIP GOING TO ONLY THE VERY TOP GRADUATES ACROSS THE STATE. RIGHT NOW IT’S WORTH $2250 A YEAR FOR ANY WISCONSIN FOUR YEAR OR TECHNICAL COLLEGE. REPUBLICAN SENATOR DUEY STROEBEL WANTS TO BOOST THE AWARD TO ABOUT $5,000 A YEAR AND THEN GIVE ANOTHER $5,000 IN THE FORM OF AN INCOME TAX CREDIT, BUT ONLY IF THE GRADUATE STAYS AND WORKS IN WISCONSIN FOR FIVE YEARS. AND WE TALKED WITH THE SENATOR EARLIER THIS WEEK AND STARTED BY ASKING WHY HE THOUGHT THE BEST AND BRIGHTEST WERE LEAVING THE STATE?

DUEY STROEBEL:

WELL, THIS IS SOMETHING THAT’S BEEN GOING ON FOR A LONG TIME. THIS IS NO RECENT PHENOMENON. AND I REALLY BELIEVE THAT PART OF IT IS OUR TAX POLICY, AND IT INHIBITS OUR ECONOMIC GROWTH AND DEVELOPMENT IN THIS STATE. AGAIN, THIS HAS BEEN GOING ON FOR A LONG TIME. I THINK IT’S REALLY ONE OF THE BIG REASONS, OPPORTUNITY, THAT’S WHAT YOUNG PEOPLE ARE LOOKING FOR. AND I THINK THAT THAT IS WHAT WE NEED TO STRIVE TO PROVIDE MORE OF IN WISCONSIN.

FREDERICA FREYBERG:

SO DESCRIBE HOW YOUR BEEFED UP SCHOLARSHIP WOULD WORK.

DUEY STROEBEL:

SURE. RIGHT NOW WE HAVE A PLAN THAT’S REALLY BEEN FROZEN IN TIME SINCE THE MID 1990s AND THAT’S TO THE BEST AND BRIGHTEST WHO IT IS SUPPOSED TO RETAIN IN THE STATE OF WISCONSIN IN OUR UNIVERSITIES AND IT IS $2250 PER YEAR. NOW IN THE MID 90s THAT EQUATED TO A YEAR’S WORTH OF TUITION. BUT RIGHT NOW IT’S BARELY EVEN A QUARTER OF IT. WE ARE FACING COMPETITION FROM MANY OTHER STATES THAT QUITE FRANKLY ARE PROVIDING TOTALLY FREE RIDES TO MANY OF THE BEST AND BRIGHTEST. IF YOU LOOK AT THE NATIONAL MERIT SCHOLARS IN WISCONSIN, WE GENERATE ABOUT 350 A YEAR. WE’RE ONLY RETAINING LESS THAN 10% OF THOSE IN THE STATE OF WISCONSIN WITH OUR CURRENT SITUATION. MANY OF THEM ARE GOING TO A PLACE LIKE THE UNIVERSITY OF OKLAHOMA. IT GOT OVER 300 OF THESE BEST AND BRIGHTEST NATIONAL MERIT SCHOLARS LAST YEAR. SO WHAT MY PLAN DOES IS IT BEEFS IT UP BECAUSE IT’S TO RETAIN THE BEST AND BRIGHTEST BUT IT’S FAILING RIGHT NOW. IT’S NOT DOING IT. SO REALLY WHAT MY PLAN DOES IS INCREASES THE CASH AWARD BY ABOUT DOUBLE TO AROUND $5500. AND THEN WE ALSO HAVE THE SITUATION OF WHERE, OF COURSE, PEOPLE GO TO SCHOOL HERE AND THEN THEY LEAVE WISCONSIN. WE WOULD LIKE TO INCENTIZE THEM ACTUALLY STAYING HERE AND PUTTING DOWN ROOTS AND BEING THE JOB CREATORS, THE ENTREPENUERS, THE BENEFACTORS OF OUR UNIVERISTIES AND THE LEADERS THAT WE WANT TO RETAIN. SO WHAT THIS PLAN ALSO DOES IS IT PROVIDES A TAX CREDIT FOR THE OTHER HALF OF THEIR TUITION THAT THEY CAN EARN BACK IN THE FIRST FIVE YEARS OF THEIR TIME SINCE COLLEGE. AND AGAIN, SO WE WOULD THEN BE ABLE TO TELL THESE BEST AND BRIGHTEST WHO ARE JUST GRADUATING FROM OUR HIGH SCHOOLS THAT IF YOU GO TO SCHOOL IN WISCONSIN, AND YOU DECIDE TO LIVE AND WORK IN WISCONSIN, YOUR COLLEGE EDUCATION WILL BE PAID FOR AND YOU WILL NOT HAVE TO INCUR ANY COSTS TO ACHIEVE THAT.

FREDERICA FREYBERG:

I UNDERSTAND THAT YOUR PROPOSAL WOULD REDUCE THE NUMBER OF THESE SCHOLARSHIPS FROM THE CURRENT ABOUT 875 TO ABOUT 362. SO WHILE THE AMOUNT OF MONEY UNDER YOUR PROPOSAL WOULD BE GREATER, FEWER WOULD BE RECIPIENTS. WHY IS THAT A GOOD TRADE-OFF?

DUEY STROEBEL:

FIRST OFF, THIS IS MERIT. WE DON’T HAVE ANY OTHER PROGRAMS FOR MERIT IN THE STATE OF WISCONSIN. WE CERTAINLY VALUE FINANCIAL AID AND WE DO OUR BEST JOB TO PROVIDE AS MUCH OF THAT AS POSSIBLE. THIS IS THE ONLY THING WE HAVE FOR MERIT. NOW IN ORDER TO BE REVENUE NEUTRAL, IT GOES BASICALLY CUTS IT IN HALF. WHAT WE HAVE NOW IS TWO STUDENTS ON AVERAGE PER SCHOOL DISTRICT IN WISCONSIN. IT WOULD GO TO ONE STUDENT ON AVERAGE PER SCHOOL DISTRICT IN THE STATE OF WISCONSIN. NOW, I BELIEVE THAT, OF COURSE, WE NEED TO BUMP THIS AMOUNT UP TO MAKE IT EFFECTIVE. BECAUSE RIGHT NOW THE STUDIES HAVE SHOWN THE PEOPLE EVEN TAKE THIS SCHOLARSHIP, LESS THAN HALF OF THEM — DIDN’T EVEN AFFECT THEIR DECISION TO GO TO WISCONSIN. AND QUITE FRANKLY WELL OVER 200 OF THE PEOPLE WHO WERE OFFERED THIS SCHOLARSHIP DIDN’T EVEN TAKE IT. SO IT’S NOT EFFECTIVE. SO THIS IS MOVING THE NEEDLE IN THAT DIRECTION. NOW, WOULD I BE OPPOSED TO THE GREATER AMOUNT? NO, I WOULDN’T BE, QUITE FRANKLY BECAUSE I THINK IT’S MONEY WELL SPENT WHEN WE LOOK AT SOME OF THE SUBSIDIES THAT WE WOULD EVEN PROVIDE TO EVEN ANY ONE COMPANY IN THE STATE OF WISCONSIN. I BELIEVE THE MULTIPLIER OF PAYBACK IS WELL BEYOND. BUT I FASHIONED IT IN A REVENUE NEUTRAL NATURE AND AGAIN TO KEEP THE BEST AND BRIGHTEST. BUT WOULD I BE OPPOSED TO KEEPING IT AT THE OTHER LEVEL? NO, I WOULDN’T BE OPPOSED TO THAT. BUT RIGHT NOW IT’S IN A REVENUE NEUTRAL PERSPECTIVE.

FREDERICA FREYBERG:

WE NEED TO LEAVE IT THERE. SENATOR, THANK YOU VERY MUCH FOR JOINING US.

DUEY STROEBEL:

THANK YOU.

FREDERICA FREYBERG:

I SPOKE WITH SENATOR STROBEL EARLIER. NOW THERE ARE CRITICS OF HIS PROPOSAL WHO SAY MAINTAINING FUNDING FOR A STRONG UW SYSTEM WOULD ALSO HELP STATE COLLEGES KEEP THE BEST AND BRIGHTEST.