As published in the April 1, 2005 Toledo Business Journal
Dan Johnson
The University of Toledo, president
TBJ: What do you see as the most important need in the business community?
DJ: For Toledo and northwest Ohio, we’re looking at ways to strengthen our economic infrastructure. That’s one of the things the university is working on through the development of the Northwest Ohio Research and Technology Corridor. It’s building an infrastructure that will make us more attractive to investment, funders of our research, and students and faculty who are going to be playing a role in tech transfer, business start-ups, developments of patents and licensing – the things that are so important today in economic development.
So I would say, it’s important to build that infrastructure for economic development, which we don’t have – ours is pretty outdated. Trying to elevate and re-create that infrastructure so it’s attractive to the knowledge economy investments that are a very important part of economic development.
I think the community is working hard at this. The Port Authority, Regional Growth Partnership, the Chamber, and other groups recognize that it’s something that is absolutely essential in order to attract business and research investment. I think we’re pretty much on the same page now, but there’s still a lot of work to be done if we’re going to actually build that infrastructure.
TBJ: What role do you see research and development playing in helping the future of the economy in this area?
DJ: I think it’s absolutely essential. The economic development that we see today around the world is centered on the knowledge economy. It’s technology; it’s science. Universities are at the core of this, and that’s one of the real challenges that we have in Ohio – we’re not funding our universities at a level that will enable us to be competitive with the other states that really have seen the importance of this kind of investment. We should be making a distinction, in my opinion, between an expenditure and an investment. So many see the money that’s going to higher education as an expenditure rather than an investment. Until we get to the point where we see the value of that investment, we’re not going to be as competitive. We don’t have that vision of the power of this investment that other states have.
TBJ: Can you share your thoughts on the state’s plans to reduce funding for higher education?
DJ: We’re right in the middle of the budget process now. I had an opportunity to testify before the Higher Education Subcommittee of the Committee on Finance, and other presidents have testified. I think all of us are very worried that the reductions that we’re taking are causing us to be less and less competitive as a state.
Our tuition rates are among the highest in the nation because the state has withdrawn its support. Many states have lower out-of-state tuition rates than our in-state tuition rates. We’re creating – for ourselves – a perfect storm where our tuition rates are literally forcing young people and adults out of the state. We’re laying the groundwork for a massive brain drain here.
TBJ: How will the reduction in state funding affect balancing UT’s budget? What solutions do you see for this challenge?
DJ: We don’t know what the budget’s going to be, but just using the Governor’s budget, which is the best-case scenario, we’re likely to lose about $4 million. Right now, we have to increase collaboration among our universities, and we’re doing that. We’re engaged in shared services with Bowling Green State University and the Medical College of Ohio, and we’re going to be expanding that area.
One of the things that we should do, in my view, is look seriously at tuition reform. I’d like to see Ohio as a state link tax reform with tuition reform. We could do this, but it takes political courage.
For example, we have approximately 200 thousand Ohio undergraduates attending public universities, paying roughly $7 thousand a year. Together, our students are paying about $1.4 billion in tuition every year at our public universities. That is almost exactly the amount that is raised with a one-cent sales tax. Free tuition is not a good policy; people should pay something for it. But if we took half a cent and dedicated it to tuition reform, we could virtually cut our tuition rates in half and be competitive with other states. Right now we’re not competitive.
We would instantly be seen as a state that’s interested in attracting knowledge-based businesses because we’re investing in higher education. We would become very attractive to corporations and businesses that are looking for a skilled workforce. We would keep our young people here and actually attract people as a pro-education state. I don’t think that kind of a sales tax is the sort of thing that repels business. That’s the sort of policy that would actually attract business, even though it’s the “T” word. It would help build the infrastructure to prepare an educated workforce that businesses and corporations are looking for.
TBJ: What are the top things you personally would like to accomplish?
DJ: Number one: we need to help convey to the community what’s here. The University of Toledo is a jewel in northwest Ohio’s crown. There is a valuable asset right here in Toledo that is not fully recognized and we need to do a better job of conveying the assets that we have here to the families and workforce of Toledo and to the economy of our region. I’d like to see our image and visibility increase significantly.
Number two: it’s extremely important that we increase the overall stature and quality at The University of Toledo. Increasing the quality of the faculty in terms of the number of those that are engaged in meaningful, productive research, and increasing our research funding.
Number three: The Northwest Ohio Research and Technology Corridor and building the infrastructure for economic development here in northwest Ohio. That will leverage the partnerships that we have with MCO, Bowling Green, ProMedica, Dana, Toledo Zoo, WGTE, and all of the others to a higher level of return. We can do that, but we have to start someplace and we’re starting now.
TBJ: Please identify an important community organization that needs more support.
DJ: I’m a very strong proponent of public schools and one of the things that I’d like to see happen that we’re actually working on is a strong relationship between the Toledo Public Schools and the university so that we help each other meet the education needs of our community. I think there’s a synergy there that we haven’t fully captured yet.
TBJ: Is there any other issue that you would like to address?
DJ: One of the things that would be extremely helpful, not only here in Toledo but across the state, would be for the business community to use its clout to help draw attention to the importance of higher education, not only for our community, but for our economy and for the businesses that are here. We’re starting to see that more, and I think we’re going to see more of it in the future, but the business community has the clout to influence our public policy on education. With a strong voice from the business community, we would benefit enormously.