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URL: http://www.andersonsc.com/and/news/article/0,1886,AND_8203_2481987,00.html
Sanford proposes letting state colleges privatize

Clemson, other colleges say they will examine issue

By By Jean Scott
Independent-Mail

December 5, 2003

CLEMSON — Gov. Mark Sanford proposed Friday allowing the state’s public colleges and universities, including Clemson University, to privatize if they want freedom from the more regulated higher education system he envisions.

The proposal, which he announced during a news conference in Charleston, could not go forward without state lawmakers’ approval.

In addition to freeing interested institutions from state Commission on Higher Education regulation, the plan would free the state to devote appropriations for some of its 33 public institutions to other education needs.

He said the large number of schools the state is trying to support is part of the reason South Carolina is at 105 percent of the national average in terms of tuition costs, compared with North Carolina at 82 percent and Georgia at 86 percent.

In return for giving up their state money, reorganizing as not-for-profits and keeping preferred tuition rates for qualified South Carolina residents, the state would transfer ownership of their buildings and land to institutions that chose to privatize.

Because of Clemson’s unique creation as a public university through the will of its founder, Thomas Green Clemson, it is unclear whether privatization is even an option.

Clemson President Jim Barker, who was out of town on university business Friday, issued a statement emphasizing Clemson’s commitment to serving the state and indicating university officials would further study the issue.

"Clemson is a public university in terms of its character, personality and values, not just in terms of funding," he said. "We were founded for two reasons: to provide opportunities for our young people and to build South Carolina’s economy. That mission has allowed Clemson to serve the state well for 115 years."

Mr. Barker attributed much of Clemson’s success to its sense of obligation to the state but noted that university officials had followed the national discussion about privatization of public universities in Colorado, Virginia and other states.

"Until we have done considerably more research, we cannot know if privatization would be the best way to serve the state, our students, alumni and other constituents," he concluded.

Earlier this year, lawmakers introduced but failed to win passage for a reform package that would free Clemson and the state’s two other research schools from regulation by the state Commission on Higher Education. Bill supporters said the plan would help Clemson, the University of South Carolina and the Medical University of South Carolina increase their research capabilities and therefore create more high-paying jobs for the state.

In contrast to the universities’ push for more flexibility, Gov. Sanford wants a more coordinated higher-education system for the state.

"If any institution ultimately feels uncomfortable with our push toward coordination, they can exit the system," he said. "We think this is more than fair."

In a news release issued Friday, he said he plans to push for a governing board that would eliminate the system’s waste and duplication.

His press secretary, Will Folks, said that could come about through a Board of Regents model that would replace the Commission on Higher Education. He said that whereas the commission has limited disposal for governing higher education, a Board of Regents or similar model would have more authority over public institutions.

That again raises the issue of the Clemson founder’s will, which calls for the university to be governed by a board of trustees.

Bill Hendrix, chairman of Clemson’s Board of Trustees, said Friday that Clemson officials would have to carefully study the governor’s proposal, which he called somewhat of a surprise, before they could even decide whether to consider it as an option.

Among the considerations is how Clemson would make up for the state money it would lose.

In the 2003-04 fiscal year, Clemson is budgeted to receive a total of $125.8 million from the state.

Although, thanks to state budget cuts, that appropriation represents a historical low of 24 percent of Clemson’s overall budget, officials would still have to determine whether they could forego the dwindling state money while also maintaining lower in-state tuition rates.

State dollars represent a larger portion of Clemson’s educational and general-operations budget, which is separate from its budget for public service activities including the Extension services it offers across the state.

In terms of education and general operations alone, the state’s budgeted $87-million appropriation represents almost 39 percent of Clemson’s budget.

Like Clemson’s president, University of South Carolina President Andrew Sorensen stressed his university’s dedication to educating South Carolinians and said its trustees and administration would have to comprehensively study the proposal.

Citadel spokeswoman Charlene Gunnells said the school was also studying the proposal and had no immediate comment.

(The Associated Press contributed to this report.)

Jean Scott can be reached at (864) 654-6553 or by e-mail at scottj@IndependentMail.com.

 

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