For Maine citizens, the story of the University of New England (UNE) provides an excellent example of what can happen when government decides not to crowd out. A few years ago, I gave a speech at UNE. I was a member of the Maine Senate, considering a run for governor at the time. There were about 100 people gathered in a function room to hear my thoughts on economic development. I assume that many came to hear about how government could create jobs. They were in for a surprise.
I started with the story of UNE. They looked surprised, but interested. What could I tell them about their own institution that they did not already know? Soon they had their answer. The audience was interested to learn that I gained my finance degree from Nasson College, their old rival from Sanford that was forced to close its doors due to competition and a bad economy. UNE was called St. Francis College at that time, and St. Francis was in the same dire shape as Nasson. So my story began with a reminder of one of our former independent governors, Jim Longley. One major battle that he fought and won made him very few friends. The Maine Legislature decided that because Maine did not have a medical school, it was critical that government create one. So the bill was debated and passed. No more sending Maine students to Vermont or elsewhere for medical training. We need our own med school; end of story.
Well, not quite. Jim Longley governed in an era when resources were scarce (sound familiar?). Longley was convinced that the Legislature had made the wrong decision in their vote to establish a medical school in Maine, to be funded by the taxpayers. It was already difficult to fund the University of Maine System, as well as the many other state programs and holdings. So, in what had to be his most difficult decision, Jim Longley vetoed a medical school for Maine. The veto held.
As you can imagine, the room at UNE got really silent after I uttered the word, veto. I could hear an ohh...in the crowd. Suddenly the students, faculty, staff, and visitors at UNE realized, almost all at once, that had it not been for Longley's incredible foresight, the amazing success story at UNE would never have taken place. In fact, St. Francis may very well have met the fate that Nasson College lived in 1983. Its doors may have closed. Instead, UNE took up medicine, and the rest is history. UNE has a $100 million dollar yearly budget, and employs nearly 1000 faculty and staff according to their website. Could the Maine taxpayer have footed this bill and generated this success? I leave that up to you.
It's a lesson in private enterprise. It's somewhat ironic that I have two brother-in-laws who are trained physicians with a UNE degree. It's an incredible campus. From near bankruptcy to a Maine success story over the past twenty five years...all due to the fact that UNE was able to turn its curriculum to medicine in order to fill a void intentionally left by Governor Longley. Thanks Jim.
I had a lot of responses after that speech. All were positive. So here is my attempt at another story of government "crowding out."
Let's look at the Maine Community College System. When we read about it in the local newspaper, it sounds fabulous. Good leadership, an expansive network of campuses. A wide curriculum at a low cost. What could be better?
Well, we might want to ask, "what if Governor Jim Longley were still alive? What would he say?
My best estimation of his veto speech follows. We miss you, Jim.
Citizens of Maine. I am vetoing the bill that restructures the Maine Technical College System into a new community college system. With the help of my economic advisers, I have come to the conclusion that expanding from specific, technically-based degree programs to include a new general education curriculum may only serve to damage already-existing private organizations offering the same courses and degree programs. While subsidizing a community college will surely offer low-priced credits to the public based on the state's ability to set price, we estimate that the public dollars necessary to provide a community college system will lead to a severe impact on the private sector. Growth and development from the privates will be stunted.
Many associate degree programs currently offered by the privates are likely to be discontinued within ten years. Furthermore, there may be direct competition between the University of Maine System and the proposed Maine Community College System. While low-priced courses will likely cause successful growth in the student population for the new community colleges (we estimate as high as 10% per year growth in student population in community college campuses), the direct competition with the University of Maine System campuses would likely lead to sparse budgets, layoffs, and difficult times ahead for our already-existing University System. Rather than create a business climate that is hostile to both public and private enterprise, we hope to see more private opportunities for our students, so that the increased supply of offerings itself drives down tuition pricing. We fear that the establishment of a new community college system will instead cause both private institutions and the UMaine System to escalate their tuition far beyond the rate of inflation. In the long-run, even the community colleges will meet this pricing fate due to state budget and resource shortages. We should nurture, not starve our private partners. Some private campuses may even be forced to close, particularly small colleges such as Mid-State College in Auburn and potentially others. While this proposal may especially wreak havoc on smaller campuses such as Fort Kent and Machias, the larger institutions of Orono and Southern Maine will not be spared fiscal pain. Program consolidations and outright program eliminations are the likely result of a state budget spread too thin.
As history bears witness, let my veto of a state-wide medical school and the success encountered by the University of New England serve as a guidepost for those who would question my equally difficult decision to veto the creation of a Maine Community College System. I pledge to work to forward to the people of Maine an accessible system of higher education, including vigorous but niched technical college programs, based upon the creation of a better working partnership between existing private and public resources. The fostering of a more positive climate for private business development in Maine will lead to stronger job creation and a thriving economy, with bright prospects for higher education positioned at its very core.
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