1. Let’s Make a Deal: Compacts and Public Agendas in American Higher Education
TRAVIS REINDL, JOBS FOR THE FUTURE (USA)
INTERNATIONAL SYMPOSIUM ON UNIVERSITY COSTS AND COMPACTS
CANBERRA, AUSTRALIA
14 JULY 2008

2. Historical Context DEVELOPMENT/ MATURING INDUSTRY (21st Century)
EXPANSION
(20th Century)
Compacts between states and institutions largely implicit
MATURING INDUSTRY (21st Century)
Push for more explicit compacts between institutions and states

3. The Shift from Implicit to Explicit
Realities Collide
Political Realities
(increasing expectations
and scrutiny from
policymakers
and public)
Market Realities
(intensifying drive
For prestige)
Institutional Mission and Function
Fiscal Realities
(increasing demand for
state resources in the face of
structural deficits)
Economic/Demographic
Realities
(emergence of knowledge
economy in the face
of aging and diversifying
population)
Regulatory Realities
(increasing decentralization)

4. Types of Compacts
Revenue Stabilization: narrow focus—tuition/subsidy balance
Example: Michigan
Capacity Building/Degree Productivity: broader focus—subsidy assurance in exchange for enrollment, completion, efficiency gains
Examples: California, Maryland
Statewide Public Agenda: broadest focus—increased autonomy in exchange for fulfillment of state priorities
Examples: Kentucky, North Dakota, Virginia

5. Status Report Mixed record of success
Changes in political landscape: leadership issues impact future prospects (e.g. Kentucky, North Dakota)
Changes in fiscal landscape: economic downturn is placing compacts and agendas at risk (e.g. California, Kentucky)
Implementation challenges: complexity raises questions about long-term effectiveness and viability
Drive to expand and sustain use of compacts
National Governors Association (Innovation America)

6. Lessons To be successful, compacts and public agendas must:
Be rooted in clear, understandable, and measurable goals
Be enforceable and simple to administer
Be sustainable
Leadership cadre must be able to withstand changes in political and higher education leadership
Major policy levers (e.g. accountability and finance) must support or at least not work at cross purposes with the compact/agenda
Terms must be developed that do not endanger the compact/agenda in times of fiscal stress