Frederica Freyberg:

Turning to education, after a decade of undergraduate tuition freezes at the University of Wisconsin, the system president is now asking to be able to hike the cost of attendance by 5% starting next fall. Current tuition rates vary at the 13 universities in the UW System from about $4,750 per year to just under $9,275 at UW-Madison. A 5% increase would add hundreds of dollars to that bill. Governor Tony Evers’ budget calls for giving the UW System more than $300 million over the next two years, but that is still short to cover costs, according to the university. UW System President Jay Rothman joins us now. Before we begin, we should note PBS Wisconsin is part of UW-Madison. President Rothman, thanks very much for being here.

Jay Rothman:

It’s my pleasure. Thank you for inviting me.

Frederica Freyberg:

You described there are two levers for the university when it comes to meeting costs: state GPR tax dollars and tuition. But even the governor’s education-friendly budget doesn’t get you there, is that right?

Jay Rothman:

Well, I think we have to look at it, and coming from the private sector, I look at it and say we have to have a profit and loss statement that balances out at the end of the day. We have to look at the various revenue levers that are available to us, and that’s GPR as a practical matter and tuition and we have to look at the expense side. It’s been 10 years since tuition has been adjusted, and during that period of time, inflation has been there, but much more accelerated over the last couple of years. So, you know, we had to balance off what we’re asking for in terms of a tuition increase. It’s not going to cover the cost of inflation as a practical matter, so we are going to have to also look at those expense levers to make sure that we can achieve the two goals that we really have. One is to maintain the quality and excellence that the UW System is known for, and secondly, to ensure the long-term financial stability and sustainability of our universities.

Frederica Freyberg:

What are the main drivers of the increased need for the system right now?

Jay Rothman:

In some sense, it’s the inflationary pressure but we also need to invest. Wisconsin is in a war for talent. We are not filling the jobs that are needed by state employers. Certainly coming out of the private sector, I knew that, because I was experiencing those same pressures. But as I spend time in my current role talking to employers in the state, the need for engineers, the need for nurses, the need for teachers, the need for data scientists, that list goes on and on. We need to invest in enrollment and in increasing the number of students who are graduating. The new strategic plan adopted by the regents in December has a target of increasing our graduates by about 10% to 41,000 annually by 2028.

Frederica Freyberg:

In your mind, what happens in Wisconsin if the university system cannot attract and retain that talent, those workers?

Jay Rothman:

I mean, I think it’s a broader issue. It’s a Wisconsin issue. It’s for the state. If we are not able — we are the best talent magnet, in my judgment, the state has in terms of recruiting, developing and retaining great talent in the state. 87% of our in-state residents who graduate from one of the system schools stay in the state. That’s a great magnet. But if it doesn’t happen, if we aren’t successful and if Wisconsin is not successful in winning that talent war, the economic prospects for the state decline. It’s as simple as that. And I think we have to look at what is the state going to look like 10 and 15 and 20 years from now, and we have challenges. We look at demographics, we look at birth rates, we look at net outward migration, and we look at the decline in college participation, the number of high school graduates going into college. Those are challenges for our state. The UW System, partnering with the executive branch, partnering with the Legislature, can help address those for the state of Wisconsin.

Frederica Freyberg:

Now, as you know, the governor included an additional $24.5 million to fund your Tuition Promise Program, but Republican legislative leaders have said state funding of that is unlikely and should come from private donations. What’s your response to that?

Jay Rothman:

A couple factors. One is, I think, that is a step in helping us win the war for talent. That is an investment in students that are coming from lower socioeconomic means, and that impacts all 72 counties in our state, including the county that I grew up in, in northcentral Wisconsin. It can help get more students in because it takes tuition off the table. Those students still have a whole lot of skin in the game. They have a whole lot of skin in the game because they still have to pay for housing. They have to pay for books. They have to pay for transportation, and they are investing four years of their life in that college education, so there’s a lot of skin in the game but it allows for social mobility and allows us to try to address the talent war. So I think that is a big piece of trying to respond. Secondly, I think we have to be open. I’d welcome the conversation with the legislators about how we can structure that program. I believe in it. I think it’s important. I think it helps achieve some goals for the state, but I also think we have to — you know, we have to be open to having that conversation with them, and I look forward to doing that.

Frederica Freyberg:

With less than a half a minute left, what is your message to students and families in Wisconsin about this tuition increase?

Jay Rothman:

I think we have to look at it and say three things. One is, we want to make sure that we maintain the quality of education and if we don’t invest in it, we won’t maintain that quality the system is known for. Secondly, we want to make sure our universities are sustainable, but third, we did an affordability study last summer. We are the most affordable public university in the Midwest. This tuition increase is not going to change that. We are still going to be the most affordable, best value of any public university in the Midwest. The value of a college education is, I don’t think the economics — they are unassailable. It is clear that students can benefit from that, both economically but also socially. It is a great investment in the future.

Frederica Freyberg:

Jay Rothman, thanks very much.

Jay Rothman:

Thank you.