Photo of Chancellor Charles R. Bantz
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Chancellor Charles R. Bantz

Charles R. Bantz

Archive of Prior Chancellors' Speeches

Presented to the faculty by Gerald L. Bepko, Chancellor
Indiana University - Purdue University Indianapolis
December 3, 1998



In this 1998 State of the Campus message, I would like to explore three points: First, how well we are doing by citing some statistics and commentary from people in a position to evaluate us; second, some examples of the extraordinary opportunities that lie before us; and third, how much work we have to do to create a better public vision for advanced education in our state and in our city.


To begin, let's look at IUPUI by the numbers. Nearly all our most important numbers are up. Our overall enrollments are up again, this year by 2.9 percent in headcount and 3.3 percent in credit hours. In the fall of 1998-99, we have the highest number of credit hours (but not headcount) ever generated in the history of IUPUI, breaking the record we set in the fall of 1997.

The enrollment of minority students also increased, once again. Our total minority enrollment for the fall of 1998 was 3,840 -- the largest minority postsecondary student enrollment in the history of the state of Indiana. The total enrollment of African Americans is 2,675, up 5 percent from last year. This figure also represents what we believe to be the largest African American postsecondary student population in the history of the state (Figure 1). Our full-time undergraduate student body continues to grow ­ something that is observable nearly every day on campus. In the fall term 1998, 11,339 or 56 percent of our undergraduate students are studying full time, up 5.2 percent from last year.

One enrollment figure that has gone up, but which is not as positive, is the number of entering undergraduate students who do not meet the IU threshold admission standard. For the fall semester 1998, more than 70 percent were "conditional admits" using these criteria. This accentuates the challenge of our multiple undergraduate missions and calls to mind the national discussion of retention, persistence, degree completion, and the extent to which universities should provide remedial programs. Among the few figures at IUPUI that have not increased are our measurements of undergraduate retention. Both as measured from the first year to the second (56.4 percent), and in terms of six-year graduation rates (22.8 percent), we have been flat, or have even seen some slight declines in our performance (Figure 2). These retention rates are not simply a reflection of our taking in students whose records are not at the high end in terms of grade-point average (GPA) and Scholastic Aptitude Test (SAT) scores. In fact our retention rates are actually lower among those with higher SAT scores. We must recognize, however, that these numbers are parallel to many urban campuses. Moreover, our initiatives to increase student performance will not likely show up in these data until years after their implementation. We should think in longer time frames to judge our work. We are optimistic that the long-term analysis will prove our case because the work of literally hundreds of colleagues has been so profoundly good.

Just two months ago we dedicated University College, with Secretary of Education Richard Riley speaking and receiving the first Urban University Medal (Figure 3). With the leadership of Dean Scott Evenbeck and the outstanding University College faculty, we have launched a place and programs that reflect all the best thinking on student performance and higher achievement. University College, both as a substantive effort and as a symbol of our values, may be the most important feature of our university today since it puts learning at the center of our mission and our campus life.

It serves as a foundation for other important developments, such as the renewal of the undergraduate curriculum. We must all acknowledge the extraordinary curriculum work of scores of colleagues, most recently Beverly Ross, Rosalie Vermette, and Kathryn Wilson, in the development of the Principles of Undergraduate Learning and the general education plan shared by science and liberal arts. We are also currently looking at the courses we use to help students prepare themselves for university-level success and reviewing our commitment to invest resources in this crucial first step of student success. We just approved an excellent plan for an undergraduate honors program to be headed by Professor of Religious Studies Ted Mullen, who will also serve as Associate Dean of University College.

We have been rethinking student life and campus interrelations as a means of increasing the bonds with students. We are awaiting a final report from Acting Vice Chancellor Charlie Nelms, developed in concert with a group of national leaders in the field. The report should help us refine and implement a new paradigm for student life based on a set of principles that complement the Principles of Undergraduate Learning. This will lead to the appointment of a new Vice Chancellor for Student Life and Diversity, we hope, by the beginning of the 1999-2000 academic year.

At the IU Board of Trustees meeting on December 4, we hope to take another step toward constructing additional student housing to help enhance campus life. We have been excited by the way intercollegiate athletics has gained attention in the larger community and begun to create "traction" within the campus community. We have a renowned architect retained for the student center project -- Project 2000 -- which will not likely be finished by the year 2000, but which is on track . Finally, as we report each month, the child care center is now back on schedule. It will be under construction this next summer, and we would like to emphasize that there will be no reduction in the 242-child capacity that has been planned.

One very good sign is that student satisfaction levels are higher again this year, as they have been in each of the four years that we've conducted our student satisfaction survey. This year there was better satisfaction with the registration process, advising, access to financial aid, and even the availability of parking. Eighty-one percent are satisfied or very satisfied with the quality of instruction, which seems the most important feature of our student satisfaction surveys, with 11 percent reporting that they are "neutral." Only 7 percent report any dissatisfaction.

The results of our alumni surveys, now also in their fourth year, are similarly positive and improving. Responses echo what continuing students are saying. Alumni indicate that they are most satisfied with what they consider to be the most important aspects of their experience here. The quality of education received at IUPUI and the quality of teaching by faculty in their major area continue to rank highest in terms of both importance and satisfaction, followed by courses in the major.

This reaction is not surprising because our faculty, across the disciplines, continue to be more and more distinguished. This year the only member of IU's faculty to earn distinguished rank came from IUPUI ­ George Stookey from the School of Dentistry. During the year the IU trustees approved 16 faculty from this campus for appointment to titled chairs or professorships. Our faculty balance of trade continued to be favorable, although the ratio narrowed a bit this year. We lost 16 faculty to other universities while recruiting 27 from universities such as University of Southern California (SPEA); Johns Hopkins, Oklahoma, Temple, Vanderbilt, Tennessee, and Texas (Medicine); Rollins, Harvard, Penn State, and Texas A&M (Liberal Arts); Michigan (Dentistry); Minnesota (Science); and South Florida and Houston Baptist (Education).

The narrowing of the balance of faculty trade highlights the wisdom of the Myles Brand/trustee-led review of faculty and staff salaries. We have nearly completed the gender/race equity study, which will raise our overall competitiveness, and we will shortly begin an initiative to move our faculty salaries to the top 40 percent of our peer institutions. Our refined peer list includes six institutions: University of Alabama, Birmingham; University of Cincinnati; University of Houston; University of Illinois, Chicago; University of Wisconsin, Milwaukee; and Wayne State University.

One important method of raising faculty compensation is the creation of more chairs and professorships. This is something that will be emphasized in the Campaign for IUPUI, the feasibility study for which is being conducted as we meet today. Myles Brand and the IU trustees have committed to renewing the program of matching the yields from newly committed chairs and professorships. Our preliminary case statement being tested in the feasibility study calls for us to seek commitments over the next six years for $80 million for the support of exceptional faculty.

In planning the Campaign for IUPUI, we have a good base of fund raising to build on. Gift income to the campus for 1997-98 increased by a dramatic 48.6 percent so that our total gift income was $28.1 million (Figure 4). The School of Medicine attracted $19.3 million or 69 percent of this total. The campus total represented 39 percent of the entire Indiana University gift income. Moreover, Indiana University's total private support (gift income and non-governmental grants) for 1997-98 was $144 million (Figure 5). This places Indiana University 15th in the nation in private support. Of that total private support, IUPUI generated 53 percent.

One of the highest tributes to the quality of our faculty colleagues is the grant income that we attract. As you can see in (Figure 6), for 1997-98, of the campus-generated grant income of more than $135 million, $109 million was earned by the School of Medicine. This campus total was up 5.5 percent from the previous year and solidifies our position at the fulcrum of the Bloomington/Lafayette research corridor and lays the right foundation for the new Office of Research and Graduate Education headed by a new member of our university family, IU Associate Vice President and IUPUI Vice Chancellor Mark Brenner, fresh from his successful work at the University of Minnesota. With Mark on board, our drawing power seems to continue to grow. As (Figure 7) shows, for the first four months of 1998-99 we have had a remarkable early run, and grant income is ahead of last year's record-setting pace.

In view of these successes, it is not surprising that we get more and more favorable commentary from people whose views are reported either across the higher education network in the U.S. or here on campus. Just in this fall term, we've had visitors on campus who have written or spoken eloquently about our emergence. Christine Licata, who was here recently to talk about post-tenure review, wrote "I visit many campuses in the course of my work, but very few compare to IUPUI. Your staff conveys confidence and professionalism of the highest order. But there is more than that . . . it also conveys an enthusiasm that is rare and loyalty that is even rarer."

Jim Appleberry, President of the American Association of State Colleges and Universities (AASCU), was on campus just a few weeks before to speak to the Issues in Higher Education Forum. In suggesting that urban campuses are helping to define engagement for all of higher education, he said, "Our nation's urban colleges and universities can provide the vision that restores hope. These dynamic and powerful institutions, like IUPUI, can provide the vision that restores and renews our nation's vital urban areas and revives the American ideal that tomorrow will be better than today." One of Purdue's senior academic executives said recently, "Everywhere I travel in the U.S., I find people who know about IUPUI and have been impressed by its many accomplishments."

This past year we had the usual number of persons on campus to review our programs. In the review of our Department of English, the team, whose members included the provost of Wayne State University, wrote: "The teacher-centered orientation of the faculty is apparent in all ranks. The empowerment of lecturers and supervising the writing program is impressive . . . . The department's commitment to service, both within and in the wider university, is (also) impressive." In commenting on the Department of Chemistry, visitors said, "Overall, the committee found the undergraduate programs to be excellent. The faculty and support staff appear genuinely committed to quality teaching at all undergraduate levels from service courses to upper-division majors." And when IUPUI was visited by the American Productivity and Quality Council, an article was written by the staff of the council about Alverno College and IUPUI that included the following statement: "In addition to student-related data, IUPUI measures a variety of factors affecting the bottom line to make sure it is heading in the right direction. Educational and business organizations alike can learn from these and other excellent assessment practices used by Alverno and IUPUI."


No picture of how we are doing could be complete, however, without going on a little tour of the development of the physical dimensions of our campus and its surroundings. Come with me for a moment as we look at downtown from the southeast (Figure 8), then the southwest (Figure 9), then the west/northwest (Figure 10) to see the city with the campus in the foreground. It is absolutely clear to those who travel to other urban campuses that we have the very best location and campus environment in the U.S.. And it's getting better every year. This year we dedicated the IU Cancer Research Institute (Figure 11), the Van Nuys Medical Science Addition (Figure 12), and University College (Figure 13).

In the process we have created some new attractive vistas such as can be found on the new mall on Barnhill Drive in front of Riley. On the other side of Riley, we are seeing the first Clarian project emerge ­ the new Riley Outpatient Center. On the horizon, in addition to those I mentioned in connection with building undergraduate campus life, we will soon have the new law school building (Figure 14)for which construction will begin in the spring term, and a new Communications Technology Complex, which we expect to be approved in 1999. It will house our Program in New Media as part of the School of Informatics; the Schools of Library and Information Science, Music, and Journalism; University Information Technology Services (UITS); the network operation centers (NOCs) that I'll talk about later; and classrooms and faculty space to substitute and expand space now in Mary Cable.

On our borders we have splendid new additions to the Indianapolis Zoo. Soon we'll have the new State Museum, the expansion of the Eiteljorg, and the completion of the new Indiana Historical Society just across Military Park from the new home of the Herron School of Art (Figure 15), (Figure 16). We will also have the new NCAA headquarters (Figure 17), the first phase of which will be opened late next year.

The Herron School of Art's use of the old law building is another project on the immediate horizon that we hope we can accelerate and finish as early as 2001. Already there is work under way on the new Herron ceramics facility on North Stadium Drive.

What all this adds up to is a revolutionary change. Thirty years ago the only people who ventured out in the campus area were a handful of local residents, drivers of trucks loaded with grain, and people who were sick. Today, we and our neighbors are on the brink of becoming one of the most, if not the most, important destinations in the state of Indiana.


But as well as things have gone for us, the most exciting feature of any review of IUPUI is found in the opportunities that lie before us. Our future is grounded solidly in the vision for IU that is set forth in the Strategic Directions Charter (SDC). President Myles Brand has challenged us to employ the SDC to make IU into "America's New Public University," and he has made it clear that IUPUI will be a critical part of this new public university and IU's future success.

The SDC reflects many of IUPUI's strengths and approaches, and it has been very easy for us to continue the IUPUI planning process by building on the SDC. We have focused on putting learning at the center of our missions, the responsibilities of excellence, our centrality and connections, as well as accountability and best practices. But there is one overarching notion that is of particular interest -- a notion that derives from the SDC and from our centrality and connections. In recent years there has been more and more attention focused on the engagement of public universities. Engagement was the subject of this year's meeting of the National Association of State Universities and Land Grant Colleges (NASULGC) in Atlanta and is the subject of a new report prepared by a Kellogg-funded Commission on the Future of State and Land Grant Institutions. According to the report:

    As rediscovered, engagement means:
    Universities must be organized to respond to the needs of today's students and tomorrow's, not yesterday's.

    Universities must enrich students' experiences by bringing research and engagement into the curriculum and offering practical opportunities for students to prepare for the world they will enter.

    Universities must put their critical resources (knowledge and expertise) to work on the problems their communities face.

This is a philosophy of university management that is familiar to us, and that we have been employing, developing, and building capacities toward for many years. These ideas mirror our essential institutional personality -- grounded in our helping professions -- and they now have become a national benchmark for success. This puts IUPUI in the forefront.

Good examples of our leadership in this arena abound. Because this forum doesn't lend itself to an exhaustive review, I've selected four areas by way of examples of our bountiful future of engagement. Those areas are the following:

  1. our commitment to health
  2. our emphasis on information technology
  3. the emerging era of the arts on campus that is associated with the move of the Herron School to West New York Street
  4. our historic obligation to public service


For many years we have thought of ourselves as a health campus. Not only do we serve as the state's place of preparation for health care professionals such as physicians, dentists, nurses, social workers, and allied health care providers, but we increasingly have become a place where people can study every aspect of health and prepare themselves for thoughtful lives, in general, or careers in various aspects of the professions and industries that focus on health, wellness, longevity, and quality of life. Our planning along these lines has been based on the assumption that the public will continue to commit greater percentages of gross domestic product to health, longevity, and quality of life issues and that our society will continue to increase the attention given to all the accompanying personal and social issues.

Another way of looking at this trend is to observe that companies such as Eli Lilly and Company and Guidant, Inc., have experienced success not only in selling their products, but in selling their stock. Investors seem to know that the 21st century will be the health century, here and around the world, and that the new frontier will be not only in space, but in aging. Septuagenarian John Glenn, who recently returned to space, and octogenarian TV personality Mike Wallace, both active in the most personally rigorous walks of life, seem to be a portent of things to come. Our recently formed Center on Aging Research will be an especially important part of our ability to lead in this field, and our recruitment of Herman Saatkamp as dean of the School of Liberal Arts, after serving as chair of the program in medical humanities at Texas A&M, should add to our capacity to deal with all dimensions of health and aging.

The evidence of the public's interest in longevity and quality of life is also found in the nation's politics. In a budget signed by President Bill Clinton only a month or so ago, National Institutes of Health (NIH) funding for next year was increased by 14.7 percent. It is expected that this NIH funding will increase by equal amounts in the future and will double over the next five or six years. Earlier in the congressional discussions of budgets, a specific proposal to double NIH funding was defeated in committee, but the underlying movement is strong enough with bipartisan support to produce this kind of long-term investment in health research. Why? Because the Cold War is over. Fatalism, borne of two world wars in this century, is rapidly diminishing. People believe that science can help them live longer and feel better, and they want their government to invest in this way. In terms of political dynamics, this consensus could be as important as the one that has sustained Social Security.

What does this mean to us? It is an obvious opportunity and a profound challenge to earn more in grant funds from the NIH. The competition for NIH funding will stiffen, however, as universities pursue this funding to enhance their biomedical departments and try to refocus some departments in related fields that in today's environment have less potential for external support. States and their economic development offices also will be watching this closely because, as one person has said, "As the new NIH funding goes geographically, so will go significant parts of the U.S. health industry."

If NIH funding doubles over the next half dozen years, we simply must participate at a higher rate so that we can more than double our own NIH return. If we are successful, we will not only improve the university, but we will bring good economic activity to Indiana, including the multiplier effect of our expenditures, and we will bring jobs and people to Indiana that should make an enormous contribution to the future of our health industry. This could be one of the most important forms of university engagement in Indiana's history.

This is a time when we will need to draw together in this state to ensure our position in this 21st century competition. IU, Purdue, and their urban campus, IUPUI, cannot do this alone. We will need support from a variety of sources. Of course, we will expect to gather support to enhance our research infrastructure through the forthcoming Campaign for IUPUI. We also expect to reallocate some funds of our own to fortify our ability to compete for these new NIH funds. We will also expect the health industry to work with us to fund projects, both as philanthropic endeavors and as business investments. But we also think that the state should participate more in the development of a stronger biomedical research infrastructure.

The biomedical research initiative (BRI) calls for the state to invest $125 million over five years to enhance research infrastructure. The BRI is being led by the Indiana Health Industry Forum (IHIF), an organization of Indiana's health companies. The IHIF is supported by those companies as well as through an initial grant from the state. The IHIF is led by a board, which includes Dean of Medicine Bob Holden, and which is chaired by Guidant CEO Ron Dollens.

The potential for enhancing research infrastructure has increased because of Indiana's participation in the settlement of claims against tobacco companies. The person who pursued these claims on behalf of the state is Attorney General Jeff Modisett, who serves as a member of our faculty in the School of Public and Environmental Affairs (SPEA). The private counsel for the Attorney General and the chair of the Allocation Committee is our own president of the Indiana University Board of Trustees, John Walda. We hope that some of these tobacco settlement funds can be used for tobacco-related biomedical research (we already have on campus $17 million in grants for tobacco-related research) and for public health education and smoking cessation programs that will be administered by the university, especially with respect to children through our Department of Pediatrics.

The engagement of our campus with the health industry in Indiana was recognized this year by a group of high tech business leaders. The Mayor's High Technology Task Force recognized as early wins many IUPUI projects including the creation of a medical research park adjacent to the campus and the new research and development venture between GE and the Department of Radiology that will be located on the canal in a building that was originally constructed to house the IUPUI-operated Electronics Manufacturing Productivity Facility or EMPF.


As important as the health industry may be to the future economy of our state, the Mayor's High Tech Task Force spent more of its time on challenges related to making central Indiana a center for information technology businesses. This makes sense because many of the members of the task force have had experience in the use and applications of information technology and because the future will be so dependent on those information technology applications.

In the course of analyzing the potential of central Indiana, the task force applauded early wins on campus in information technology fields -- achievements such as the recruitment of Michael McRobbie as IU Vice President for Information Technology, who served on the task force; the Microsoft contract that Michael negotiated; the academic programs developed in new media, which offer great promise for workforce development; the move of the Advanced Research and Technology Institute (ARTI) to Indianapolis; and the plans for a communications technology complex to serve as a hub for IU's telecommunications and advanced networking systems and possibly as a site for the incubation of technology startup companies. Continuing work with the Mayor's High Technology Task Force, and its successor the Indianapolis Central Indiana Technology Partnership (ICITP), will be managed for IU/IUPUI by Georgia Miller, who has been assigned as the ICITP liaison and who will have an office in the Indianapolis Economic Development Corporation.

Since the task force report, we have taken further steps under Myles Brand's leadership to create a core campus (Bloomington and Indianapolis) School of Informatics, which will include the IUPUI Programs in New Media. Led by Michael Dunn from IUB and our own Darrell Bailey, this school represents the engagement of the university in addressing the shortage of well-prepared professionals for these growing high tech companies. As a governor in a state that has invested in high technology has said, "The hottest jobs are in information technology ­ computer programmers, engineers, and systems analysts. Whoever addresses this workforce need first will lead the nation and the world in economic development." We have already begun to mobilize our programs to act on this premise by bringing together faculty from electrical engineering, computer science, computer technology, informatics (especially nursing, medicine, and dentistry), and other fields to develop a joint plan for faculty hiring and new degrees, particularly in computer engineering.

The biggest news of all, however, came late this summer when the announcement was made by the University Corporation for Advanced Internet Development to designate IU and IUPUI as the site of the Network Operations Center for the Abilene Network (Internet 2). Unveiled by Vice President Al Gore earlier this year, Abilene will be the world's most advanced research and education network. Less than two months after Abilene was announced, the National Science Foundation awarded IU a $10 million grant for development of the Asia Pacific Advanced Network Consortium called TransPac. The network center for TransPac will also be here at IUPUI.

These developments are national models of engagement since they reflect partnerships between business, government, and the university to gain an advantage for Indiana in the increasingly competitive digital technology world. A moment ago I suggested that investors had signaled the continued growth of the health industry by bidding up the price of stocks. Well, have you followed technology stocks in recent months? They have had one of the best runs of investor interest of any industry in the history of stock trading in the U.S. Through these NOC's and other activities, we hope we are winning some share of this for Indiana.

We know the news of Abilene and TransPac has traveled rapidly in higher education. When AASCU President Jim Appleberry was here this fall, the announcements had barely been made, but Jim knew about them and included references to them in his speech to our Issues in Higher Education Forum. He said, "It's . . . a treat to be close to what will be the epicenter of Internet 2. What an enormous coup to have the network operations center for this super-fast fiber-optic data network right here at IUPUI . . .The selection of IUPUI as the site of Internet 2 is a good example of the growing expectations for urban institutions now and in the future."

These developments also represent the most basic purpose of IUPUI as a place of concourse between the university centers in Bloomington and Lafayette. Through a special state appropriation, these NOCs will be linked up with new fiber optic cable to IUB and Purdue. All three campuses will benefit from the NOC's location here in Indianapolis. Moreover, the Kellogg Commission has acknowledged that engagement will involve university partnerships not only with businesses, government entities, and nonprofit organizations, but with other universities as well to engage the agenda of their home states. IU and Purdue have been 30 years ahead of the Kellogg Commission by creating IUPUI to lead the engagement of the two universities with each other at the state's cultural, economic, political, and population center. As a reminder of our leadership, each year we receive requests from cities and universities across the nation to visit IUPUI to see first-hand how collaboration really works.

These developments lay a good foundation for us to continue to move into a leadership position in technology applications in learning. Remember the emphasis should be to reward better learning and excellence, not just the use of technology, but at the same time to accelerate the changing paradigm for teaching with innovations such as those begun in the Department of Psychology a few years ago or Oncourse, developed by Ali Jafari and others, through an exciting model of UITS and campus teamwork. These developments will help us continue to build our Community Learning Network and new sites in Carmel and at the Defense Finance Center at the now-closed Fort Benjamin Harrison. These developments will help us seize the opportunities inherent in a new Associate Vice President for Distributed Education and Indiana's membership in the Western Governors University, which itself has now affiliated with the British Open University. All this will be enhanced by the UITS strategic plan now being implemented with a special emphasis on full funding for replacement.

These developments present an extraordinary opportunity and challenge for all of us at IU and on this campus. Moreover, if central Indiana is to be successful in economic terms, it must continue to develop companies that are grounded in the information technology industry. We should play an important role in that development. We have many of the ingredients now on campus, including these NOCs, which may be the state's most important advancements in information technology. It is our responsibility to develop new educational programs for our students and create new knowledge-development programs to fuel the curriculum of the future. We also will be privileged to help society absorb these technologies and work through all the social and human dimensions. This even includes the arts, which leads to the next challenge.


Our campus has been too little developed in terms of the arts. This is why it is so important to bring the Herron School of Art to the Michigan/New York Street corridor. We are now closer to that important milestone and we expect to move Herron, as I said earlier, in the year 2001 or 2002. Already, the construction is beginning on the ceramics facility on Stadium Drive just north of campus.

There is much more. The linkage between art and technology has taken hold in our university community. We have a visual imaging lab at the Herron School of Art that is quite remarkable. While its benefits are largely educational and creative, there are also spill-over benefits that we can all enjoy. This holiday season, the gifts given to Chancellor's Circle members were created in the visual imaging lab, IRIS (Figure 18). Computer imaging may well foster a new world of creativity -- not to diminish tried-and-true artistic media but to open up new vistas of creative thought. This will make the Herron School of Art even more exciting as it goes through its transition to the campus, where it can more easily interact with faculty and students in new media, journalism, SLIS, engineering, and other fields where graphic images are used to communicate and entertain.

With respect to the arts, there is much more in development on campus. We recently recreated a Committee on Campus Arts, chaired by new acting dean of Herron, Valerie Eickmeier, to oversee the creation of what we hope will be many new artistic features on campus. As an expression of our engagement in the arts, we have created a Committee on the Arts of the IUPUI Board of Advisors, which is chaired by Dr. George Rapp and staffed by Bill Plater and Cheryl Sullivan. Its purpose is to emphasize the arts over the next decade as Herron moves to campus and as we establish new types of relationships with arts organizations. Some of those arts organizations probably will locate in the old Herron facility on 16th Street, while other arts and cultural organizations are already around us. We intend as part of the Campaign for IUPUI to create chairs and professorships that can be shared with the arts organizations. Examples already in planning include the Indianapolis Museum of Art, the Children's Museum, the State Museum, the Eiteljorg, and the Indiana Historical Society. Among other things we would like to build on the work of Claude McNeil and the American Cabaret Theater, expand our involvement with the Heartland Film Festival, highlight the presence of the National Art Museum of Sport collection at the University Place Hotel and Conference Center on campus. We want the IUPUI campus to literally be alive with arts and cultural treasures that will enhance the arts and cultural corridor that has developed on the south edge of our campus.

In recent years there has been a movement to use the arts in our city to encourage cultural tourism. In furtherance of its engagement, IUPUI should be an integral part of that effort. We should highlight the arts and culture corridor that begins with the Walker Center and continues on our south border, with neighbors who include the Indiana Historical Society; the Eiteljorg; Herron and its new gallery; the state museum, including its IMAX theater; the NCAA with its museum; and the Indianapolis Zoo and White River Gardens (Figure 19). This area should be a destination point for visitors from all across the state. We envision that there will be no Indiana K-12 student who does not at some point come on a school bus to visit the arts and cultural attractions on the south edge of our campus, including the Herron gallery.


And finally, of these four ideas about engagement, we think public service defines us. It derives from our history in the helping professions, but I think you will find on this campus more interest in voluntary action for the public good than you will find most anywhere. It derives in part from the Center on Philanthropy, but it also is being defined today by our Center for Public Service and Leadership, our Office of Neighborhood Resources, the Polis Center, the Center for Urban Policy and the Environment, and other units that are doing extraordinary things in the community. We're looking into developing, as part of a consortium, a set of comprehensive databases to make Indianapolis the best city in the world in terms of understanding itself through real data and not through myth and supposition. But I would like to conclude by talking about the one ingredient that we don't have as much control over.


These examples, drawn from among our many opportunities, suggest that we have substantial control over our destiny. Our accomplishments suggest that we have taken hold of that destiny. There is one important ingredient in our future, however, which we do not control, or even influence very much. The uncontrollable factor is the support provided by the state for higher education.

Our higher education system is arguably more important today than at any time in history. All across the nation it seems clear that the correlation is stronger between quality of life and advanced education, especially as measured in economic terms. The capital assets of greatest value are no longer land, natural resources, machinery, a place in an industrial park with tax abatement, or even financial strength. The greatest value is found in human, intellectual capital. This will be the business capital of the 21st century, and higher education is business's most important infrastructure.

This is an especially important notion for Indiana's leadership to consider because Indiana does not have natural topographical or climatic advantages, like the coastal, mountain, or Sunbelt regions, to attract well-educated, wealth-creating people. Indiana will have to compete by sustaining a strong educational environment, including university resources to attract, cultivate, and retain human capital.

The 21st century will bring more change, probably at an increasingly rapid rate. Rapid change will produce threats and opportunities. Some people will be frightened by the future and will see only threats. Some will approach the future with confidence and see change as opportunity. What's the difference? Education. Those who do not have an education will not understand globalization, technology, economic forces, or how to deal with change. This will make them insecure and defensive. Those who are well educated and able to understand globalization, changing economic conditions, and technology will move forward with confidence, seize the opportunities that always exist in a changing world, and create the highest quality of life that humankind has ever known. Are we proceeding with the right vision for Indiana's future? Let's take a look at the numbers.

Over the past 20 years, Indiana has spent a smaller and smaller percentage of its overall expenditure budget on higher education. In 1975, the state spent 17.7 percent of its budget on higher education. By 1998-99, that percentage had dropped to 13.4 percent (Figure 20),(Figure 21). This declining emphasis on higher education in the state's budget has come at a time when higher education was expanding. The number of students studying in Indiana's public colleges and universities has gone up by 38 percent from 1979 when nearly 160,000 students were enrolled to 1998 when more than 220,000 were enrolled. Most of the increase has been in the institutions which receive direct public support.

Not only are there many more students, but the complexity of the world has grown geometrically. In many fields the half-life of knowledge has shrunk to a few years, and the sheer amount of information with which nearly everyone must deal has made a good education a necessity. Finally, the gap in earnings (or wealth creation) between high school graduates and college graduates has increased, suggesting that the real payoff in education comes mostly at the college level.

This shifting of state priorities over the past 20 years has had a disproportionately negative impact on those campuses, like IUPUI, that have grown up during this period. While IUPUI's General Academic programs have been provided with a slightly larger increase in state appropriation over the last dozen years (Figure 22), IUPUI's state appropriation per full-time equivalent student (FTE) in its General Academic programs remains well below other campuses in the state. (Figure 23) shows IUPUI bundled up so all programs are lumped together. (Figure 24) shows what happens to IUPUI when the health schools, which have a separate budget and a longer period of development, are taken out. (Figure 25) shows the IUPUI figure when the law school, which has also had a long period of development, is taken out. The result is that per-FTE student appropriation is well below the average of the IU regional campuses, even though IUPUI has a broader range of graduate-level and service responsibilities. (Figure 26) shows the IUPUI General Academic per-FTE student appropriation over the last 12 years, adjusted for inflation but not for program mix. As you can see, the growth campuses have paid a price in terms of state support. In real terms, IUPUI's state appropriation per FTE student during that period went down by 22 percent. This seems unwise state policy in view of IUPUI's location at the center of the state, the center of the state's most populous region and only a few blocks from the state capitol. It also makes all the more important the state's full funding of the higher education request for 1999, which I'll touch upon in a moment.

We shouldn't feel isolated in Indiana. Public institutions have suffered even more in other states as they similarly were dropped in terms of state priorities and as states shifted from thinking of higher education as a public good over to thinking of higher education as more of a private good with many market forces combining with static or shrinking state resources to serve the needs for advanced education. What are other states doing now, however, in this time of recovery and prosperity? Some activities in other states should concern us, more than a little. The southern states seem to have the most noteworthy activity. For example, in Louisiana, Governor Mike Hunter has led a movement to combine higher education and economic development, actually merging the state's Department of Education with its Department of Commerce, along with substantial new investments in higher education. The most pronounced new programs, however, are in Georgia, where Governor Zell Miller led the movement to create the Hope Scholarship Program, the Georgia Research Alliance, faculty salary increases, and a variety of other investments that could make Georgia the leading 21st-century state. Listen to Governor Miller's words:

    John Kennedy once said, "to govern is to choose . . ." If you want to do anything in office besides hold it, you have to make a choice of who it is you want to help. My choice was students and teachers. Education has been the passion of my administration, and my goal as Governor has been to create in my state a culture of higher expectations. I wanted the question for Georgia's students to be not "whether" to go to college but "where" to go to college.
And listen to his words on economic development:
    Intellectual capital will be the business capital of the 21st century, and higher education is the most important economic infrastructure we can have. We have traditionally thought of economic development as building a rail siding or a spec building, or working to attract a specific company to a specific site somewhere in an industrial park. But as we look ahead to the 21st century, we know that this approach will no longer work. And it will not be enough simply to update that old mindset. It will not be enough to call it a technical park instead of an industrial park. These days industries are more interested in an educated workforce than a rail siding.
Today, probably as a result of this approach, the state of Georgia is booming in every way.

Indiana's universities have a reasonable proposal filed with the Indiana Commission for Higher Education and the Indiana General Assembly which calls for a measured maintenance increase of 4 percent on personnel compensation and 3 percent on other budget lines to keep up with inflation. In addition, there is a request for some base adjustments to reflect changes in levels of service due to changes in enrollment, increases in the number of degrees awarded, and changes in the operating costs of facilities associated with new buildings. If the request is honored in this category, IUPUI would receive an additional $4.3 million in base funds. Moreover, the appropriation request calls for new investments in key areas, such as scientific and technological improvements that enhance both quality and efficiency of teaching and research, support to ensure that IU retains its most qualified faculty members and highly-trained technical staff, and improvement of student retention. This amounts to 3 percent of the total base budget and equals $7.6 million for IUPUI programs.

These requests for continuing base funding are crucial. This is especially true for IUPUI where we can do more with less for only so long. Moreover, there are a series of special one-time funding requests, including a special request to provide funding on a matching basis for federal grants. There is a proposal for funding to match federal funding for the cyclotron in Bloomington, and there is a proposal to make the completion of the Van Nuys project, along with some renovations at three of our regional medical centers, a special project outside of the traditional capital appropriation process. We need these projects and will work hard to earn them. We have an excellent governor and legislative leadership who would like to be helpful to higher education, but they need to hear from more people. This could be a watershed year for higher education in Indiana. They need to hear how important it is to keep up with those states that have renewed their commitments to higher education. They need to know that the courageous political leaders in those states have gained more popularity because of their interest in higher education than on any other issue. Zell Miller will leave office this year because of term limits, but he will leave as one of the most popular governors in Georgia history. He deserves it.


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