Bowles' business savvy is serving UNC system

When UNC-system President Erskine Bowles swept into office last January, he sought to use his business background to transform the way state universities operate. He has worked to push the UNC system out of the staid world of academia and into the dynamic global economy. Bowles might be a Tar Heel, but it's his degree from Columbia University's Graduate School of Business that seems to shape his management style. Evidence of his business-oriented approach is everywhere, from his slashing of the General Administration budget to his attempt to leverage systemwide buying power in the fight to lower textbook costs. Bowles drew on his extensive experience in the business and political arenas to gain financial support from the state legislature. "We've got a new president, Erskine Bowles, who has strong street cred in Raleigh and great personal relationships with politicians in both parties and both houses who wanted to give him, I think, a successful start," UNC-Chapel Hill Chancellor James Moeser said. The General Assembly's latest budget includes $90.6 million for academic salary increases - an average raise of 6 percent. "It's the best, certainly the best budget in my time - it might be the best budget in the past 20 years," said Moeser, who's in his seventh year at UNC. "I didn't dream we'd get 6 percent," he added. Despite the salary increases, the General Assembly only allotted $5 million for teacher training and recruitment programs for which Bowles had requested $21 million. "We didn't get everything we asked for; we never get everything we ask for," said Jeff Davies, chief of staff to Bowles. Alan Mabe, vice president for academic planning for the system, said it's difficult to get funding for new programs during the legislature's short session. Bowles should have more success funding new programs in the next two-year budget, which will be prepared in January, Mabe said. Some of the programs that did not receive funding in the latest state budget have attracted private donors, he added. For example, the Bryan Foundation is partnering with Guilford County Schools to fund a pilot program that provides salary boosts and mentoring services for math teachers in eight high schools. Encouraging students to study math and science and placing the best teachers in classrooms will help keep system students competitive in today's global economy, Davies said. "I think that all the chancellors are acutely aware of the need to advance students in STEM fields," Davies said, referring to the science, technology, engineering and math disciplines. To aid his effort to streamline the education bureaucracy, Bowles created the president's advisory committee on efficiency and effectiveness . Krista Tillman, BellSouth's president of N.C. operations, is in charge of the committee, which aims to compile a final report by late October. The committee's report will help Bowles prepare his budget requests for next year. "This project grew out of his desire to look at where we spend money and whether or not we spend it in the most effective and efficient way," Tillman said. General administration has proposed a $1.3 million cut in salary and nonpersonnel expenses, Davies said. "We've taken a hard, careful look at ourselves," he said, adding that Bowles wants each campus to perform a similar assessment. As part of the self-investigation, Bowles is requiring each college to look into the feasibility of a textbook rental system. "My hope is that if we have to raise tuition this year, that we do it in an environment where we've examined all costs," Davies said. The president will submit his long-term tuition plan in September. The plan will determine the maximum amount that each campus can raise tuition in the next four years. "It provides for predictability that I think will be so helpful for students and campuses," Davies said. In the spirit of remaining globally competitive, the board commissioned a report from the Pappas Consulting Group Inc. entitled "Staying a Step Ahead: Higher Education Transforming North Carolina's Economy." The consultant suggested creating a K-16 board that would expand communication between educators from all grade levels. Another idea from the report was the possibility of offering in-state tuition to students in bordering counties of neighboring states. The program could enable students in Southern Virginia to pay in-state rates at schools in the tidewater region of Eastern North Carolina, and similar reciprocity programs also could be set up in the western part of the state. Though it might seem that the new president has a lot on his plate, he seems to be keeping one constant in mind - streamlining the process. Tillman said, "We're very focused on this effectiveness side." Contact the State & National Editor at stntdesk@unc.edu. What's next for UNC-system President Erskine Bowles Making tuition predictable: In September, Bowles will present a formal proposal to the tuition policy task force. The proposal will determine the maximum amount that each campus can raise tuition in the next four years. Lowering textbook costs: As part of their annual tuition requests to the Board of Governors, each university must examine whether a textbook rental system would work on their campus. The BOG will also explore other ways to save money on textbooks, such as creating a systemwide pool of used books. Improving efficiency: Bowles has created a special committee to study the effectiveness of the UNC-system administration. As part of that study, General Administration has proposed a $1.3 million cut in salary and non-personnel expenses.