1. When Private Colleges Come Knocking, The Chronicle of Higher Education, 11.12.04, by Piper Fogg; As those institutions get richer, public universities struggle to keep their professors.

From the issue dated November 12, 2004

http://chronicle.com/weekly/v51/i12/12a02001.htm

At a black-tie gala this fall, New York University kicked off a $2.5-billion fund-raising campaign and a major effort to hire new faculty members.

To celebrate, Billy Joel, whose daughter is a freshman at NYU, performed for 400 donors, trustees, and other VIP's at Cipriani 42nd Street, an exclusive restaurant in Manhattan. Their generosity had already enabled the university to meet its goal of $200-million to finance 125 new faculty positions in the arts and sciences over the next five years.

Even as NYU was feting donors and courting new ones, officials in the Oregon University System were dropping a proposal to create a $500,000 "fighting fund" to retain top faculty members; the cash-strapped state legislature had indicated it would reject it.

Like administrators at many public universities these days, Oregon's officials fear they can only do so much to retain their best faculty members when rich private universities come knocking.

Warding off private institutions has always been a problem for state universities. But it has become particularly acute as the financial disparity between the two types has deepened in recent years. At doctoral institutions across the country, full professors at private institutions earned $122,158 while their peers at public colleges made 77 percent of that, or $94,606, last year, according to the American Association of University Professors. Five years ago full professors at private institutions made $98,606 and their peers at public institutions made 80 percent of that, or $79,284.

As that gap has increased, private colleges such as the University of Southern California and Brown and New York Universities have embarked on multiyear, multimillion-dollar campaigns to hire hundreds of new professors.

Meanwhile, public institutions are struggling to keep theirs. For example, the number of faculty members at the University of Arizona who received outside offers climbed 61 percent between 2000 and 2003, and the number of faculty losses there increased steadily in that time.

Some public institutions are taking steps to stem the tide. The University of Iowa recently secured a $250,000 donation to help ward off faculty poaching. The University of Arizona persuaded the state legislature this year to give it $4-million for the same reason. And the University of California at Los Angeles has taken an even more definitive step: a $250-million fund-raising effort to attract and retain faculty members and graduate students.

But for many universities, including those in the Oregon system, there is little that can be done about the widening divide.

"It's a real problem," says Ronald G. Ehrenberg, director of the Cornell Higher Education Research Institute. The divide, he says, has affected the quality of undergraduate education and research at public universities. Institutions that have long-term success with fund raising -- public or private -- will be in better shape. Those that do not, he says, will have to compensate by being strategic and creative. Mr. Ehrenberg says they will also "have to make hard decisions about who is really important."

Jumping Ship

Jennifer Edson Escalas could be the poster woman for professors who choose to leave public colleges for private ones. As an assistant professor of marketing at the University of Arizona, Ms. Escalas worked last year on a clunky desktop computer made in 1996. It kept crashing, but her department did not have the money to buy a new one. She remembers long stretches of time when the department had no working photocopier.

"We were all fighting over a small piece of the pie," says Ms. Escalas, who received only $3,000 a year from the university to do her research. Even with that, it was hard to attend more than two conferences a year. Because she had already run through her budget, she had to apply this past spring for a university travel grant to finance a trip to Murcia, Spain, where she was to moderate a panel discussion at a European marketing conference. But the university denied her request.

After paying her own way for a cheap flight and finding a roommate in Spain, the professor found she could not afford the $500 registration fee for the conference. She had to beg the director to sneak her in. "Those things, after a while, start to wear you down," says Ms. Escalas.

But they made her decision easy when Vanderbilt University's business school offered her a job that more than doubled her salary and included a $13,000-a-year research budget.

"I keep getting in trouble for doing things myself," says Ms. Escalas of her new life at Vanderbilt, where she shares an administrative assistant with three other professors. At Arizona the 13-member marketing department shared one. She says that at Vanderbilt, members of the support staff compile her course packets, order copies of journals for her, and link articles to her Web site.

Not having to think about those things, she says, will help her be more productive. And having enough research money will allow her to attend numerous conferences and interact more with her peers.

Arizona's provost, George H. Davis, says retaining faculty is the university's top priority. In 2003 the university lost 60 faculty members to other institutions, 11 more than in the previous year. In addition to Ms. Escalas, Arizona lost stars such as Daniel C. Lieber, a professor of toxicology in the College of Pharmacy who brought in more than $5-million in research grants over the past three years. He too went to Vanderbilt, which offered him more resources. In 2001 Vernon L. Smith, an economist, also left Arizona, in part because his research was not getting enough financial support from the university. He went to George Mason University, which is public, and less than a year later won a Nobel Prize for his work -- much of which he did while at Tucson.

In each of the last three years, Mr. Davis says, the university allocated between $400,000 and $500,000 for faculty retention. But with recent deep cuts in the university's budget, faculty salaries have still not kept pace with their competitors. "That has exacerbated the challenge of hanging on to outstanding faculty members," says Mr. Davis. Deans have had to cannibalize vacant faculty jobs to use those dollars to augment salaries, he says.

Last year the university asked state lawmakers for $16-million to spend on faculty retention. They told the legislature that in the cases for which they had data, outside institutions offered salaries in 2003 that on average were 34 percent higher than what the Arizona professors were making. Arizona made counteroffers that averaged 21 percent more than what the professors were already earning. The university received $4-million in this year's budget, which Mr. Davis says will be a help in trying to close that gap.

Unequal Results

But boosting some faculty members' salaries and not others can substantially throw off faculty salary scales. It can compound the already large disparity, for example, between what professors in the humanities are paid compared with pay in the sciences, medicine, and business, where outside offers are far higher. It can also create inequalities within departments.

That is one of the reasons that the idea of a "fighting fund" failed to gain traction both in the state legislature and among professors in the Oregon University System. Many professors there argue that increasing the salaries of the top 10 percent of the faculty, which they say would be the practical outcome of such a fund, would unfairly leave the other 90 percent without increases.

By singling out some but not others, says Peter B. Gilkey, a professor at the University of Oregon who is chairman of the systemwide faculty senate, "you do damage morale."

James Earl, a former president of the University of Oregon Senate and the faculty representative to the university's lobbying group, says that legislators made it clear that they did not want to give raises to select faculty members when the salaries of all other state employees are subject to a two-year salary freeze through 2005. "They considered it an end run around the pay freeze," says Mr. Earl.

But system officials are hoping that when the legislature does meet early next year it will authorize spending on faculty retention. In their budget proposal for 2005-7, the Oregon State Board of Higher Education requested $32.8-million to be spread across the seven-college system.

At the University of Oregon last year, of the 25 professors who received outside offers, the university was able to retain 10. They lost nine and are still uncertain about whether the other six will stay or go. Administrators and department heads there argue that they need more resources if they want to compete, for example, with the top public colleges and private institutions. "They can make salary offers that are way out of line with anything we can match," says John T. Moseley, Oregon's provost. "It does create a real inequity and dichotomy." Like other public institutions, they too have turned to private fund raising to fill in the gaps.

As part of their current capital campaign, they are trying to raise $100-million to endow some 30 new faculty chairs, which would double the number of chairs. They also rely on other resources. "We try to offer a good environment, a good lifestyle," says Mr. Moseley. That includes the small city of Eugene, an impressive arts scene, a good football team, and nice place to raise a family, he says. That said, there is only so much they can do to keep a professor, acknowledges Mr. Moseley: "We win some, and we lose some."

More Research Money

Albert Carnesale, UCLA's chancellor, says a highly ranked public research university expects to lose some faculty members. "That should bring you pride," he says. But that pride can turn to dismay when large numbers of professors are lost to private universities.

In 2001-2, 56 UCLA faculty members received outside offers. That number jumped 20 percent the next year, to 70 professors. In both years they were able to retain about 70 percent of those professors.

One department that has seen significant departures is political science, which has lost three professors in the last five years to Stanford University, and another to Harvard University. Kenneth A. Schultz, an associate professor in the department who defected to Stanford, says that while salary issues did not motivate his decision to leave last year -- UCLA matched Stanford's salary offer as well as another offer from Yale University -- the larger issue of long-term financial security did.

The concern he had about UCLA, says Mr. Schultz, was that "as a public institution, it's very susceptible to the ups and downs of the economy. There's questions about the commitment of the state to fully fund it." The standard package for graduate students there, for example, includes one year of fellowship followed by three years of teaching assistantships and one more year of fellowship. For the rest of their time there, UCLA graduate students have to find other ways to support themselves.

Worrying about making ends meet, says Mr. Schultz, takes time and energy away from their research work with faculty members. "It certainly affects the overall quality of the intellectual life there." It also means that large lecture classes have fewer TA's, since the department can only support so many. Consequently, he says, professors at UCLA have more papers to grade: "It's very unattractive."

At Stanford, graduate students don't have to teach as much, and they receive more financial support. That allows them not only to focus more on their own work, says Mr. Schultz, but improves life for everyone in the department.

Michael F. Lofchie, chairman of the political-science department at UCLA, says the department has always been identified as a leading department, and that makes it particularly vulnerable "in an age of budget austerity." But, he adds, while the situation is serious, it is not alarming. Poaching, he notes, is something that happens all the time. He also says that conditions regarding graduate students have recently improved. Using dollars generated in their summer teaching program, the department was able to beef up graduate-student packages from $15,000 to $20,000, which helped to increase their yield this fall from an average of about 22 incoming students to 37.

Another professor who left UCLA recently for Stanford, Gi-Wook Shin, an associate professor of sociology, departed because Stanford offered him the resources to start a Korean-studies center. The Center for Korean Studies, which he directed at UCLA, "had almost no money," he says. "You have to write several pages of proposals just to get funding even to cover your phone." The chairman of the sociology department, David Lopez, declined to comment on Mr. Shin's departure.

At Stanford, Mr. Shin has already been able to help raise $6-million for his new center. It is harder to raise money at a public institution, he says, where the alumni donor base isn't as strong. A private institution like Stanford can offer more perks to donors, he says, such as admitting their children as students. And since he is a faculty member, Stanford will subsidize half the Stanford tuition for Mr. Shin's own children, who are 7, 10, and 13.

To help remedy the situation, UCLA has created one of the most ambitious campaigns to raise outside dollars to keep its best faculty members. One of the goals of its $250-million fund-raising effort is to raise $100-million to finance 100 new endowed chairs to help recruit and retain professors on the campus. Officials also plan to raise $150-million for undergraduate and graduate fellowships and scholarships in its liberal-arts college and professional schools.

Some professors applaud the campaign, but others are taking a wait-and-see attitude. "I'm not counting my chickens yet," says Roger Waldinger, who says he was relieved to step down last year as chairman of the sociology department. He says that with no cost-of-living increases for last four years, it has been and will continue to be hard to hang on to people. "There's a long way to go," he says. "We have to deal with the current crisis while that little nest egg grows."

He complains that the administration should be more aggressive about trying to keep people. The main question, he says, is will UCLA continue to be a first-rate institution? "If we continue on the current trajectory," he says, "the answer is no."

http://chronicle.com Section: The Faculty Volume 51, Issue 12, Page A20