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Yepsen: THERE ARE SOME STIFF BUDGET CHALLENGES AHEAD FOR THE IOWA BOARD OF REGENTS. WE'LL GET THE INSIGHTS OF BOARD OF REGENTS MEMBER DAVID FISHER ON THIS EDITION OF IOWA PRESS.

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THIS IS THE SUNDAY, JULY 16^th EDITION OF IOWA PRESS. HERE IS DAVID YEPSEN.

Yepsen: BUDGET REALITY IS SETTING IN FOR IOWA'S THREE STATE UNIVERSITIES. MOST IOWA STATEHOUSE OBSERVERS ARE IN AGREEMENT THAT THE IOWA BOARD OF REGENTS INSTITUTIONS -- THE UNIVERSITY OF IOWA IN IOWA CITY, IOWA STATE UNIVERSITY IN AMES, AND THE UNIVERSITY OF NORTHERN IOWA IN CEDAR FALLS -- DID NOT FARE PARTICULARLY WELL DURING THE LAST LEGISLATIVE SESSION. THE REGENTS GOT LESS THAN REQUESTED FROM THE GOVERNOR AND THE IOWA LEGISLATURE. AND SO TODAY, ADJUSTMENTS ARE BEING MADE. THOSE ADJUSTMENTS COULD EVENTUALLY INCLUDE DRASTIC TUITION HIKES, PROGRAM CUTS, OR STAFF REDUCTIONS... OR PERHAPS A COMBINATION OF ALL THREE. IN AMES, 55 POSITIONS ARE BEING ELIMINATED, AND 18 OF THOSE POSITIONS ARE FROM THE FACULTY. IN IOWA CITY, THE WORD IS THAT THERE WILL BE DELAYS IN FILLING SOME POSITIONS UNTIL THE SHORTFALL IS ADDRESSED. AND FROM THE STUDENTS' PERSPECTIVE, TUITIONS ARE GOING UP BY 4.3 PERCENT THIS ACADEMIC YEAR, AND FURTHER HIKES ARE FORESEEN IN THE FOLLOWING YEARS. IT'S AGAINST THIS BACKDROP THAT WE WELCOME DAVID FISHER OF WEST DES MOINES TO THE IOWA PRESS TABLE TO GIVE US HIS INSIGHT. MR. FISHER HAS BEEN A MEMBER OF THE IOWA BOARD OF REGENTS SINCE 1997. MR. FISHER, WELCOME BACK. GOOD TO HAVE YOU WITH US.

Fisher: THANK YOU. GLAD TO BE HERE.

Yepsen: ALSO WITH US AT THE IOWA PRESS TABLE ARE STATEHOUSE REPORTERS KATHY OBRADOVICH OF THE LEE NEWSPAPERS, AND MIKE GLOVER OF THE ASSOCIATED PRESS.

Glover: MR. FISHER, THERE'S BEEN A LOT OF TALK ABOUT BUDGET PROBLEMS WITH THE STATE UNIVERSITIES. LET'S GET DOWN TO THE BASICS THAT MOST PEOPLE DEAL WITH HERE IN IOWA. LET'S SAY I'M THE PARENT OF A STUDENT WHO'S HEADING OFF TO A REGENTS INSTITUTION -- THE UNIVERSITY OF IOWA, IOWA STATE -- IN A COUPLE OF YEARS. WHAT SORT OF TUITION INCREASES SHOULD I BUDGET FOR?

Fisher: THAT'S A GOOD QUESTION. WE WILL BE TAKING UP THAT ISSUE LATE THIS SUMMER AND HAVE A LOT OF DISCUSSION AND DEBATE, RECEIVING RECOMMENDATIONS FROM THE ADMINISTRATION. THE PAST FEW YEARS -- I MEAN LAST YEAR IT WAS 4.5 PERCENT.

Glover: RIGHT.

Fisher: I ANTICIPATE IT WILL BE IN THAT AREA. IT MIGHT BE A PERCENT MORE THAN THAT. BUT WE ARE VERY AWARE OF THE COST OF EDUCATION. HOWEVER, AT THE UNIVERSITY -- IN THE STATE OF IOWA, IT'S THE BEST VALUE IN THE COUNTRY.

Glover: RIGHT. THERE HAVE BEEN SUGGESTIONS THAT TUITION INCREASES COULD BE AS BIG AS 10 PERCENT. YOU'RE SAYING THAT'S NOT GOING TO HAPPEN?

Fisher: FROM MY PERSPECTIVE, I DON'T BELIEVE THAT WILL HAPPEN.

Glover: SO AROUND 4.5 PERCENT, 5.5 PERCENT?

Fisher: I HATE TO PEG THAT. WE HAVEN'T HAD ANY RECOMMENDATIONS YET, HAVEN'T HAD ANY DISCUSSIONS YET. BUT WE TRIED TO KEEP UP WITH INFLATION, THEN WE ADDED A QUALITY FACTOR OF ADDING ANOTHER PERCENT OR TWO TO IMPROVE QUALITY AT THE UNIVERSITIES. I WOULD SAY IT WILL BE A MODEST INCREASE ABOVE INFLATION, BUT FAIRLY MODEST ABOVE THAT.

Obradovich: WELL, MR. FISHER, WHAT DO YOU THINK IS THE RIGHT LEVEL FOR TUITION FOR STUDENTS WITHIN IOWA TO PAY? YOU MENTIONED IT'S A GOOD VALUE COMPARED TO OTHER STATES. IS IT TIME FOR TUITIONS TO GO UP A LITTLE BIT?

Fisher: WELL, I THINK -- AS YOU RECALL BACK IN THE MID '80s, DURING THE FARM CRISIS, TUITION WAS KEPT CONSTANT. AND THEN WE HAD TO PICK UP IN THE EARLY '90s, AND WE HAD SOME SUBSTANTIAL TUITION INCREASES. BUT THE FACT OF THE MATTER IS THAT WE'RE -- IN THE BIG 10, THE UNIVERSITY OF IOWA IS THE LOWEST. IN THE BIG 12, I BELIEVE IOWA STATE IS THE LOWEST OR NEXT TO THE LOWEST IN THE BIG 12, AS FAR AS TUITION IS CONCERNED. AND UNI IS CERTAINLY, IN THEIR PEER GROUPS, IN THE LOWER HALF. SO WE WANT TO MAKE IT ACCESSIBLE FOR IOWA STUDENTS, BUT YET WE NEED TO PAY FOR QUALITY AND TO GET THE RIGHT PEOPLE ON CAMPUS TO TEACH THESE YOUNG PEOPLE.

Obradovich: WHAT ABOUT FOR OUT-OF-STATE STUDENTS? ARE IOWA UNIVERSITIES TOO MUCH OF A BARGAIN FOR THEM? AND IS IT TIME TO HAVE THEM PAY MORE OF THE SHARE?

Fisher: THE BOARD OF REGENTS, PRIOR TO MY COMING ON THE BOARD, ADDRESSED THAT ISSUE AND ADDRESSED IT VERY EFFECTIVELY. RIGHT NOW, GOING INTO THIS FALL, AN IOWA STUDENT IS GOING TO PAY ABOUT $3,200 IN TUITION. AN OUT-OF-STATE STUDENT WILL PAY NEARLY $10,000 IN TUITION. YEARS AGO IT WAS BETTER FOR AN ILLINOIS STUDENT TO COME INTO THE STATE OF IOWA AS A NONRESIDENT. THEY PAID LESS THAN THEY PAID AS A RESIDENT STUDENT OVER IN ILLINOIS. SO THEY HAVE ADDRESSED THAT. WE TRIED TO MOVE NONRESIDENT TUITION SO THAT IT PAYS, BASICALLY, FOR THE COST OF THEIR EDUCATION.

Yepsen: MR. FISHER, WHY SHOULDN'T TUITIONS GO UP? I MEAN I COMPLAINED ABOUT TUITION WHEN I HAD TO PAY AT THE UNIVERSITY OF IOWA. YOU PROBABLY DID TOO. BUT IT WAS A PRETTY GOOD DEAL, RIGHT? PRETTY GOOD INVESTMENT.

Fisher: RIGHT.

Yepsen: GOT A GOOD RETURN ON THAT INVESTMENT. SO WHY SHOULDN'T STUDENTS PAY MORE?

Fisher: WELL, LET ME SAY, DAVID, WHEN I WENT TO SCHOOL -- IOWA LAW SCHOOL BACK IN THE EARLY '60s, I PAID 20 PERCENT. TUITION WAS PAYING 20 PERCENT OF THE EDUCATION COST. TODAY IOWA STUDENTS ARE PAYING 30 PERCENT OF THE EDUCATION COST. SO I BELIEVE THAT TUITION SHOULD GO UP; BUT IT SHOULD BE MODEST, BECAUSE THE COST OF EDUCATING IS GOING UP, THE COST OF THE FACULTY, THE COST THE ADMINISTRATION, THE COST OF UPKEEP. THE COST OF THE BUILDINGS IS GOING UP. WE NEED TO KEEP PACE WITH THAT.

Yepsen: DO YOU THINK THE 30-PERCENT THRESHOLD SHOULD CONTINUE; WHERE THE STUDENT PAYS 30 PERCENT, THE TAXPAYER AND OTHER SOURCES OF FUNDS PAY 70 PERCENT? SHOULDN'T THAT RATIO BE MORE LIKE 50-50?

Fisher: I THINK THAT -- I AM COMFORTABLE WITH THAT, AND I THINK IN TIME THAT WE MIGHT MOVE THAT UP SOME, DEPENDING UPON THE NEEDS OF THE UNIVERSITY, THE APPROPRIATIONS, PRIVATE CONTRIBUTIONS TO THE UNIVERSITY. ALL THOSE FACTORS WEIGH INTO IT.

Glover: LET'S LOOK AT THAT DEBATE ON ITS EAR FOR JUST A SECOND. THE OTHER ASPECT OF TUITION INCREASES IS ACCESSIBILITY. ONE OF THE MISSIONS OF THE STATE IS TO PROVIDE A HIGHER EDUCATION TO ALL OF ITS CITIZENS. THAT'S CONSIDERED A GOAL OF THE STATE.

Fisher: RIGHT.

Glover: WHERE IS THIS DEBATE OVER ACCESS?

Fisher: WELL, NUMBER ONE, AS YOU SAY, MICHAEL, THAT IS ONE OF THE MISSIONS OF OUR UNIVERSITIES IS ACCOUNTABILITY, ACCESSIBILITY, QUALITY, AND DIVERSITY. WE NEED TO MAKE HIGHER EDUCATION ACCESSIBLE TO IOWA STUDENTS. AN IOWA STUDENT, REGARDLESS OF THEIR PARENTS' ECONOMICS, CAN GO FOUR YEARS OF COLLEGE AND BORROW EVERY PENNY OF IT. AND SO THERE IS ALSO -- EVERY TIME WE DO HAVE A TUITION RATE, A CERTAIN PERCENT GOES BACK INTO STUDENT AID. SO I BELIEVE WE ARE MAKING IT AVAILABLE FOR IOWA STUDENTS TO GET A COLLEGE EDUCATION, REGARDLESS OF THEIR ECONOMIC CIRCUMSTANCES.

Obradovich: THE ECONOMIC CIRCUMSTANCES OF THE REGENTS WERE UNDER A LOT OF DEBATE DURING THE LAST LEGISLATIVE SESSION. AS DAVID MENTIONED, YOU DIDN'T GET THE BUDGET THAT THE REGENTS WERE ASKING FOR. THERE'S NOW TALK ABOUT STAFF REDUCTIONS, POSITIONS BEING LEFT DARK. WHAT DIFFERENCE -- IF I'M A SOPHOMORE RETURNING TO SCHOOL AT IOWA STATE THIS FALL, WHAT DIFFERENCE AM I GOING TO NOTICE FROM LAST YEAR?

Fisher: IT'S MY SENSE THAT YOU WON'T NOTICE ANY DIFFERENCE. THE ADMINISTRATORS OF EACH OF THE UNIVERSITIES ARE TAKING A CLOSE LOOK. WE ALL DO THAT IN THE PRIVATE SECTOR. WE DO IT WITH OUR FAMILIES. WE DO IT WITH OUR BUSINESSES. AND SOMETIMES REVENUES DON'T QUITE COME IN AS WE ANTICIPATE, SO WE MAKE CHANGES, AND WE ADJUST. BUT I THINK THAT THEY ARE HANDLING IT IN A VERY PROFESSIONAL MANNER. I DON'T BELIEVE THE STUDENTS WILL SEE ANY IMPACT AT THIS POINT.

Glover: LOOK DOWN THE ROAD. THERE'S SOME TALK ABOUT NOT FILLING POSITIONS. THERE'S SOME TALK ABOUT NOT BRINGING PEOPLE ON BOARD. IS THERE A NEED FOR ACTUAL LAYOFFS AT THE REGENTS UNIVERSITIES? ARE THEY TOO STAFF-HEAVY?

Fisher: WELL, THAT'S REALLY FOR THE ADMINISTRATION AND MANAGING EACH OF THEIR CAMPUSES, AND THEY HAVE TO TAKE A LOOK AT THAT. WE, AS A BOARD OF REGENTS, CERTAINLY SET THE POLICY. WE DON'T MICROMANAGE. AND THEY BRING THEIR RECOMMENDATIONS TO US, AND I SUPPORT WHAT THEY'RE DOING TO TAKE CARE OF THIS SHORTFALL.

Glover: FOLLOWING UP ON KATHY'S QUESTION, EVERYBODY AT THE BOARD OF REGENTS HAS COMPLAINED ABOUT THE BUDGET THEY GOT FROM THE LEGISLATURE THIS PAST SESSION. YOU'VE JUST SAID YOU DON'T THINK STUDENTS COMING IN ARE GOING TO NOTICE ANY DIFFERENCE IN THE QUALITY FROM WHAT THEY'RE GETTING. WHY WASN'T THE LEGISLATURE RIGHT IN MAKING THAT DECISION, IF THEY CAN CUT THAT MONEY AND STUDENTS WON'T NOTICE A DIFFERENCE?

Fisher: WELL, WE HOPE THAT THIS IS JUST A ONE-YEAR SITUATION. IF THIS WOULD CONTINUE, IT WOULD HAVE A SERIOUS IMPACT ON ALL OF THE CAMPUSES.

Glover: HOW LONG WOULD IT TAKE FOR THAT TO HAPPEN?

Fisher: THAT'S -- I REALLY CAN'T SAY, BUT I WOULD SAY TWO OR THREE YEARS, WE'D SEE SOME SERIOUS IMPACT ON CAMPUS.

Yepsen: SO YOU DON'T THINK THE REGENTS ARE CRYING WOLF, THEN, WHEN YOU SAY, "OH, WE'RE GOING TO HAVE LAYOFFS AND TUITION IS GOING UP," AND THEN THE STUDENTS COME BACK AND THEY DON'T NOTICE ANY DIFFERENCE?

Fisher: NO, I DON'T. THIS IS A NATURAL TENDENCY. WE WERE DISAPPOINTED. THE PRESIDENTS WERE DISAPPOINTED. BUT THEY'RE PROFESSIONAL PEOPLE AND WE'LL GET BY THIS YEAR.

Yepsen: I WANT TO FOLLOW UP ON SOMETHING MIKE JUST ASKED YOU... STAFF. THERE'S 2.4 STUDENTS FOR EVERY STAFFER AT A STATE UNIVERSITY. NOW, ISN'T THAT A LITTLE HIGH?

Fisher: WELL, I THINK YOU'VE GOT TO LOOK AT HOW YOU CALCULATE THAT. AT THE UNIVERSITY OF IOWA, FOR EXAMPLE, THERE'S 28,000 STUDENTS AND I BELIEVE THEY HAVE 1,700 FACULTY. BUT WHEN YOU USE THAT RATIO, YOU'RE TAKING IN ALL THE HOSPITAL EMPLOYEES, ALL THE RESEARCH PEOPLE THERE DOING RESEARCH. I THINK YOU'VE GOT TO LOOK AT THAT -- I DON'T QUITE THINK THAT FIGURE IS ö

Yepsen: DO YOU HAVE 1 EMPLOYEE FOR EVERY 2.4 OF YOUR CUSTOMERS?

Fisher: NO, I DO NOT. BUT I'M NOT IN THE EDUCATION BUSINESS.

Obradovich: WELL, LET'S TALK A LITTLE BIT ABOUT THE POLITICAL CLIMATE AT THE HILL. GOVERNOR VILSACK SORT OF STARTED THE BLEEDING THIS YEAR BY NOT FULLY FUNDING SALARY INCREASES THAT THE REGENTS HAD PROMISED TO FACULTY. THEN THE REPUBLICAN LEGISLATURE CAME BACK AND CUT MORE. NEXT YEAR THEY HAVE OTHER SPENDING PRIORITIES DEALING WITH TEACHER PAY FOR K-12. WHAT ARE THE PROSPECTS OF THE REGENTS DOING BETTER IN THE NEXT COUPLE OF BUDGET SEASONS?

Fisher: I THINK THAT THE REGENTS WILL DO BETTER. I THINK WE'LL DO A BETTER JOB OF STATING OUR CASE TO THE GOVERNOR AND CERTAINLY TO THE LEGISLATURE. I SUPPORT LOOKING AT K-12 TEACHER PAY. I THINK THAT'S A SERIOUS PROBLEM IN THIS STATE. BUT I BELIEVE THAT THIS WAS THE FIRST YEAR THAT THE GOVERNOR HAD HIS OWN BUDGET. HE WAS TRYING TO GET HIS ARM AROUND THINGS. I BELIEVE THE GOVERNOR SUPPORTS HIGHER EDUCATION IN THIS STATE, AND I THINK THAT THE REGENTS WILL DO BETTER AND WILL GET THE APPROPRIATE FUNDING IN THE COMING YEARS.

Glover: YOU'VE ACKNOWLEDGED THAT THE REGENTS HAD SOME PROBLEMS IN THE STATEHOUSE THIS YEAR, AND YOU'VE SAID THEY'RE GOING TO DO BETTER NEXT YEAR. WHAT ARE YOU GOING TO DO TO FIX THOSE PROBLEMS YOU HAD AT THE HILL THIS YEAR? WHAT DO YOU DO DIFFERENTLY NEXT YEAR? I'M ASSUMING YOU MADE YOUR CASE THIS YEAR AND IT FELL ON DEAF EARS.

Fisher: I THINK THAT WE NEEDED TO BE MORE EFFECTIVE IN VISITING NOT ONLY WITH THE LEGISLATORS AND THE GOVERNOR, BUT WITH THE SENATORS OF IOWA. LET THEM KNOW THAT THE REAL ASSET THEY HAVE IN HIGHER EDUCATION IN THIS STATE AND THE IMPORTANCE OF MAINTAINING QUALITY AND MOVING THEM HIGHER, IMPROVING THE QUALITY EACH AND EVERY YEAR.

Obradovich: WELL, HOW DO YOU COUNTER WHAT HAS BEEN HAPPENING AT THE SOME OF THE UNIVERSITIES, HOWEVER? NO SOONER HAS SUMMER COME AROUND, BUT AT THE UNIVERSITY OF IOWA, THEY TALK ABOUT EXTENDING BENEFITS TO HOMOSEXUAL PARTNERS OF FACULTY. AT THE UNIVERSITY OF IOWA, THEY'RE TALKING ABOUT THE SAME THING WITH UNMARRIED PARTNERS. YOU THINK HOW THAT KIND OF THING PLAYS AT THE HILL. HOW IS THAT GOING TO HELP OR HURT YOUR CASE?

Fisher: WELL, I VOTED AGAINST THAT, AND DIDN'T THINK THE TIMING WAS RIGHT. BUT MY FELLOW BOARD MEMBERS AND THE MAJORITY VOTED FOR THAT, AND I JUST THOUGHT IT WAS NOT GOOD PUBLIC POLICY, AND I DIDN'T THINK THE TIMING WAS RIGHT. BUT THAT COULD HAVE AN IMPACT.

Glover: IN OTHER WORDS, THAT'S NOT GOING TO BE HELPFUL NEXT SESSION.

Fisher: I DON'T BELIEVE IT WILL BE HELPFUL.

Glover: AND YOU THINK YOU'LL HEAR IT AGAIN.

Fisher: I'M SURE WE WILL.

Glover: LET'S TURN TO ANOTHER TOPIC. PRESIDENT MARTIN JISCHKE JUST LEFT IOWA STATE UNIVERSITY. THE BOARD OF REGENTS HAS STARTED A SEARCH FOR HIS REPLACEMENT. WHAT ARE YOU LOOKING FOR IN A REPLACEMENT FOR HIM? ARE YOU LOOKING FOR SOMEBODY WHO WILL CONTINUE HIS POLICIES? ARE YOU LOOKING FOR SOMEBODY WHO WILL TAKE THE UNIVERSITY IN A DIFFERENT DIRECTION? WHAT ARE WE LOOKING FOR UP THERE?

Fisher: FIRST OF ALL, THE STRUCTURE IS JUST BEING PUT IN PLACE TO PUT TOGETHER THE SEARCH COMMITTEE AND THE SEARCH FIRM, AND THE PROCESS IS REALLY NOT STARTED YET. BUT FROM MY OWN PERSONAL STANDPOINT, I WOULD WANT A STRONG PERSON THAT COULD COME IN AND TAKE IOWA STATE EVEN FURTHER. I THINK IOWA STATE IS IN THE BEST POSITION IT'S BEEN EVER. I THINK MARTIN DID AN OUTSTANDING JOB. AND IT'S A REAL RESOURCE, A VERY ATTRACTIVE JOB. I THINK WE'LL BE ABLE TO ATTRACT A VERY HIGH-QUALITY PERSON TO HEAD UP IOWA STATE.

Glover: IF YOU COULD, YOU WOULD GET A CLONE OF MARTIN JISCHKE, SOMEBODY WHO WOULD CONTINUE THE UNIVERSITY IN THE DIRECTION THAT HE SET?

Fisher: WELL, I DON'T THINK WE'D LOOK FOR ANY CLONE OF ANYBODY. I JUST THINK WE NEED THE BEST POSSIBLE PERSON WE CAN GET THAT CAN PROVIDE THE LEADERSHIP TO MOVE IOWA STATE EVEN FURTHER.

Glover: HE WAS GOOD AT FUND-RAISING. HE RAISED A LOT OF MONEY. HE PUT A LOT OF EMPHASIS ON RESEARCH PARKS, MAKING THE UNIVERSITY A PART OF DEVELOPING THE ECONOMY. IS THAT THE DIRECTION YOU'D LIKE TO SEE THAT UNIVERSITY CONTINUE?

Fisher: WELL, I THINK MARTIN DID A LOT OF GOOD THINGS. I THINK HE DID AN OUTSTANDING JOB OF RECRUITING OUTSTANDING STUDENTS TO IOWA STATE. I THINK THE CALIBER OF STUDENTS COMING TO IOWA STATE HAS NEVER BEEN BETTER. AND I THINK THAT'S ONE MARK THAT HE'S REALLY PUT ON IOWA STATE, IN ADDITION TO FUND-RAISING, IN ADDITION TO RESEARCH. AND HE'S ALSO CARRIED THE MESSAGE OF IOWA STATE UNIVERSITY THROUGHOUT THIS STATE, AND LET THE PEOPLE OF IOWA KNOW WHAT A RESOURCE IOWA STATE IS. HE DID AN OUTSTANDING JOB OF THAT.

Yepsen: MR. FISHER, HE HAD A BALANCING ACT. AT THE UNIVERSITIES, WE ASKED HIM TO DO RESEARCH, WE ASKED HIM TO TEACH. AND THERE'S ALWAYS A TENSION THERE. YOU TALK TO MANY PEOPLE AT IOWA STATE TODAY, FACULTY AND STUDENTS, AND THEY SAY TOO MUCH EMPHASIS WAS PLACED ON RAISING MONEY, AS MIKE SAID, ON RESEARCH, AND NOT ENOUGH EMPHASIS ON TEACHING AND LEARNING. DO YOU AGREE WITH THAT?

Fisher: I DON'T AGREE WITH THAT. I THINK THAT THAT'S A FINE LINE. AND WE IN IOWA, WITH A SMALL POPULATION BASE, HAVE TWO FINE RESEARCH INSTITUTIONS IN THIS STATE... IOWA AND IOWA STATE. THEY BRING IN CLOSE TO $500 MILLION IN GRANTS, PUBLIC AND PRIVATE GRANTS, TO THE STATE OF IOWA TO SUPPORT THE RESEARCH. FACULTY -- YOU LOOK AT ANY FACULTY, THERE'S MEMBERS OF THE FACULTY THAT ARE OUTSTANDING TEACHERS. THEY'D RATHER TEACH THAN DO RESEARCH. THERE'S PEOPLE THAT ARE BETTER FACULTY MEMBERS THAT ARE BETTER IN RESEARCH THAN THEY ARE AT TEACHING. IT'S A FINE LINE BUT I BELIEVE -- AND THERE'S AN EMPHASIS ON GETTING TENURED FACULTY INTO THE UNDERGRADUATE CLASSROOM. AND I THINK THEY MADE GOOD PROGRESS ON THAT. I DON'T THINK THERE'S A PROBLEM OF TOO MUCH EMPHASIS ON RESEARCH AS OPPOSED TO TEACHING.

Obradovich: WHAT DO YOU THINK THE ROLE IS OF THE UNIVERSITIES IN HELPING IOWA EXPAND ITS ECONOMY, AND HAS THAT ROLE CHANGED OVER TIME? WHAT DO YOU SEE THE FUTURE OF THE UNIVERSITIES, AS YOU LOOK AT NEW INDUSTRIES LIKE BIOTECH, FOR EXAMPLE, IN IOWA?

Fisher: WELL, IF YOU LOOK AROUND THE COUNTRY, WHERE YOU SEE REAL GROWTH IN ECONOMIC DEVELOPMENT AND NEW TECHNOLOGY, IT'S USUALLY CENTERED AROUND UNIVERSITIES -- SILICON VALLEY, THE TRIANGLE OF NORTH CAROLINA. WE NEED TO DO A BETTER JOB OF TYING THE UNIVERSITIES -- ALL THREE UNIVERSITIES -- UNI, IOWA STATE, UNIVERSITY OF IOWA -- INTO THE ECONOMIC DEVELOPMENTS OF THE STATE. AND I KNOW THE GOVERNOR, GOVERNOR VILSACK, IS INTERESTED IN PURSUING HOW WE CAN DO A BETTER JOB OF TAKING THE RESEARCH AND THE PRODUCT FROM THE CLASSROOM OR FROM THE RESEARCH LAB INTO THE MARKETPLACE.

Obradovich: DO YOU SEE THAT AS A PRIMARY PRIORITY FOR THE UNIVERSITIES AHEAD OF THE KIND OF TEACHING ISSUES THAT DAVID MENTIONED?

Fisher: I DON'T THINK IT'S THE PRIMARY, BUT IT'S A VERY IMPORTANT ISSUE THAT WE NEED TO WORK ON AND DO A BETTER JOB OF.

Glover: THERE'S SOMETHING I'VE NOT HEARD DEBATED A LOT LATELY, AND THAT'S THE ROLE OF UNIVERSITIES AS A PLACE WHERE YOUNG PEOPLE CAN GO, LEARN, THINK, GROW, DEVELOP.

Fisher: RIGHT.

Glover: WHERE IS THAT IN THIS DEBATE?

Fisher: WELL, IN TODAY'S EDUCATION ARENA, THERE'S MORE NONTRADITIONAL STUDENTS. TO GET AN EDUCATION TODAY, YOU DON'T NEED TO GO ONTO CAMPUS. THAT'S THE BEST. BUT SO MANY PEOPLE ARE BEING REEDUCATED, AND DISTANT LEARNING IS BECOMING A VERY, VERY IMPORTANT ISSUE. BUT I BELIEVE THE FOUR YEARS THAT ONE SPENDS ON A CAMPUS, YOU LEARN MUCH MORE THAN YOU DO IN THE CLASSROOM. AND I THINK THAT'S AN IMPORTANT THING AND WE NEED TO MAKE THAT ENVIRONMENT CONDUCIVE FOR THOSE.

Yepsen: YOU SAID THAT THE REGENTS WERE DOING A BETTER JOB OF GETTING PROFESSORS IN THE CLASSROOM. HOW GOOD? HOW ARE YOU MEASURING THAT? THE CRITICISM HAS BEEN MADE THAT FOR MOST UNDERGRADUATES, THEY GO TO CLASS AND THAT IT'S TAUGHT BY A TEACHING ASSISTANT WHO, OFTENTIMES, CANNOT SPEAK ENGLISH.

Fisher: RIGHT. THAT'S BEEN ADDRESSED AND I CAN TELL YOU, TOO, THAT EACH PERSON ON THE BOARD OF REGENTS, WE LOOK AT THAT SERIOUSLY, WE GET REPORTS ON IT. I DON'T HAVE THE FIGURES, BUT I KNOW PROGRESS HAS BEEN MADE. WHAT I HEAR FROM PARENTS AND STUDENTS IS THAT IT IS BETTER.

Glover: ONE OF THE ISSUES THAT GOVERNOR VILSACK HAS TALKED ABOUT IS IMPROVING THE PREPARATION OF TEACHERS WHO ARE BEING TRAINED TO GO INTO THE CLASSROOMS AROUND THE STATE. WHAT'S WRONG WITH WHAT'S BEEN DONE IN THE PAST? WHAT HAVE THE UNIVERSITIES NOT DONE THAT THEY NEED TO CORRECT TO BETTER PREPARE TEACHERS?

Fisher: I DON'T THINK THEY'VE DONE ANYTHING WRONG. I THINK WE JUST NEED TO TAKE A LOOK AT IT AND SEE HOW WE COULD DO A BETTER JOB. UNI IS A GREAT RESOURCE. THEIR TEACHING SCHOOLS UP THERE FOR TEACHING TEACHERS IS OUTSTANDING. I THINK THAT THEY ARE LOOKING AT HOW WE CAN PROVIDE A SERVICE TO THE K-12 TEACHERS IN THIS STATE TO IMPROVE THEIR ABILITIES.

Glover: AND SUPPORTERS AT THE UNIVERSITY OF NORTHERN IOWA WILL COMPLAIN ROUTINELY THAT THAT UNIVERSITY IS THE POOR SISTER OF ALL THE REGENTS UNIVERSITIES, THAT THERE'S NOT BEEN ENOUGH RESOURCES POURED INTO WHAT IS IOWA'S PRIMARY TEACHER-PREPARATION SCHOOL. IS THERE ANY VALIDITY TO THAT?

Fisher: I DON'T AGREE WITH THAT. ALL YOU HAVE TO DO IS WALK AROUND THAT CAMPUS. THAT IS AN OUTSTANDING INSTITUTION: 13,000 STUDENTS, A BEAUTIFUL CAMPUS, AND WE HAVE POURED SUBSTANTIAL RESOURCES IN TO UPGRADE THAT CAMPUS. IT IS SECOND TO NONE AS FAR AS A CAMPUS AND AN OPPORTUNITY FOR IOWANS TO GET A GREAT EDUCATION.

Obradovich: WHAT DO YOU THINK NEEDS TO BE DONE TO PREPARE TEACHERS BETTER IN IOWA? AND WHAT DOES THE UNIVERSITY OF NORTHERN IOWA AND OTHER STATE UNIVERSITIES NEED TO MAKE THAT HAPPEN?

Fisher: I THINK THEY'RE DOING A GOOD JOB OF PREPARING TEACHERS TO GO FROM THE COLLEGE ENVIRONMENT INTO THEIR FIRST FEW YEARS OF TEACHING. I THINK WE NEED TO TAKE A LOOK AT HOW WE REEDUCATE THE TEACHERS, HOW THEY CAN GO BACK AND LEARN NEW SKILLS, TECHNOLOGY SKILLS, DIFFERENT SKILLS THAT MAYBE THEY LEARNED WHEN THEY FIRST GRADUATED. I THINK THE REEDUCATION OF TEACHERS IS VITALLY IMPORTANT. AND I THINK THAT'S GOING TO BE ON THE FRONT BURNER FOR ALL PUBLIC OFFICIALS.

Obradovich: IS THAT GOING TO BE REALLY EXPENSIVE? IS THAT GOING TO REQUIRE A MAJOR INCREASE IN STATE FUNDING?

Fisher: I DON'T THINK THAT -- I THINK THERE WILL BE SOME REALLOCATION OF FUNDS. I THINK THE NEW LEARNING CENTER IN DES MOINES THAT THEY'RE TALKING ABOUT COULD PLAY A ROLE IN THAT PROGRAM OF HELPING RETRAIN TEACHERS.

Glover: ANOTHER ONE OF THE GOVERNOR'S GOALS IS HE WANTS TO KEEP IOWANS IN IOWA AND CONVINCE IOWANS WHO HAVE MOVED AWAY TO COME BACK. WHAT ROLE CAN UNIVERSITIES PLAY IN KEEPING IOWANS IN IOWA?

Fisher: THEY PLAY A VERY IMPORTANT ROLE, AND I'VE BEEN VERY PLEASED TO HEAR DEAN KELCH AT THE UNIVERSITY OF IOWA MEDICAL SCHOOL, THE DEAN OF THE MEDICAL SCHOOL, TELLS ME THAT THEY, EACH YEAR, HAVE MORE AND MORE STUDENTS THAT GRADUATE FROM MEDICAL SCHOOL END UP IN RURAL IOWA COMMUNITIES. IN FACT, ABOUT HALF OF THE GRADUATES OF THE RECENT CLASS ENDED UP IN RURAL COMMUNITIES IN THE STATE OF IOWA. AND I UNDERSTAND THAT THAT IS NOT AS SERIOUS A PROBLEM AS IT WAS, BECAUSE WE'RE KEEPING MORE. BUT WE'RE EDUCATING DOCTORS, LAWYERS, ENGINEERS, NURSES, DENTISTS, AND PHARMACISTS, AND A GOOD NUMBER OF THOSE ARE STAYING IN THE STATE OF IOWA. WE NEED, AS BUSINESSPEOPLE, TO CREATE MORE OPPORTUNITY TO RETAIN THESE IOWA GRADUATES.

Glover: ARE THERE CONCRETE STEPS THAT THE UNIVERSITIES CAN TAKE TO KEEP PEOPLE HERE? I'M THINKING OF THINGS LIKE FORGIVING LOANS FOR PEOPLE WHO AGREE TO STAY HERE FOR A FEW YEARS, THINGS LIKE THAT.

Fisher: I THINK THOSE ARE THINGS THAT WE OUGHT TO TALK ABOUT. I THINK THAT MENTORING, PROVIDING A MENTORING PROGRAM BY IOWA BUSINESS LEADERS TO BRING STUDENTS INTO OUR BUSINESSES IN THEIR FRESHMAN, SOPHOMORE, AND JUNIOR YEAR SO THEY CAN FIND OUT AND LEARN ABOUT IOWA BUSINESSES AND PERHAPS THEN MOVE INTO THESE BUSINESSES. THERE'S A LOT OF THINGS THAT WE CAN DO.

Glover: AREN'T WE REALLY SWIMMING UPSTREAM HERE.? ISN'T THIS THE OLD STORY OF PEOPLE GO TO COLLEGE, THEY GO TO THE BRIGHT LIGHTS OF THE BIG CITY, AND THEY MOVE AND THEY GROW? THAT'S JUST A NATURAL PART OF EVOLUTION.

Fisher: I THINK THAT'S JUST HUMAN NATURE, BUT I THINK WE CAN STILL CERTAINLY STATE OUR CASE AND ENCOURAGE PEOPLE TO STAY AND ENCOURAGE PEOPLE TO COME BACK. THE MARKETPLACE WILL TAKE CARE OF THAT.

Obradovich: AS YOU PROBABLY KNOW, INCREASING THE STATE'S POPULATION WAS ONE OF THE MAJOR GOALS OF THE IOWA STRATEGIC PLANNING COUNCIL, WHICH PUT OUT ITS 2010 REPORT LATE LAST MONTH. YOU ARE NO STRANGER TO THE STRATEGIC PLANNING PROCESS IN IOWA, AND I'M KIND OF WONDERING WHAT YOUR TAKE IS ON THE RECOMMENDATIONS OF THIS GROUP AND WHETHER YOU THINK ANY OF THEM ARE GOING TO BE ACCOMPLISHED.

Fisher: I HAVE NOT HAD AN OPPORTUNITY TO READ THAT. I THINK THE PROCESS WAS GOOD AND IT PUTS ISSUES ON THE TABLE FOR DEBATE, DISCUSSION, AND I THINK SOME GOOD WILL COME OUT OF IT.

Obradovich: WHAT DO YOU THINK HAS TO BE DONE TO KEEP THE PROCESS MOVING?

Fisher: YOU HAVE TO HAVE THE LEADERSHIP, BOTH PUBLIC AND PRIVATE LEADERSHIP. YOU NEED TO KEEP IT ON THE TABLE. YOU NEED TO KEEP THESE TOUGH ISSUES ON THE TABLE FOR DISCUSSION, DEBATE, AND JUST KEEP IT HOT.

Glover: MR. FISHER, LET'S GET A DOSE OF REALITY HERE. YOU'VE BEEN ON MORE THAN ONE OF THESE STATE COMMISSIONS. I'VE SEEN A LOT OF ROOMS, A LOT OF REPORTS GATHERING DUST ON SHELVES. HOW IS THIS ONE GOING TO BE DIFFERENT? WHAT'S GOING TO MAKE THIS REPORT DIFFERENT AND ACTUALLY TRANSLATE INTO SOME ACTION INSTEAD OF GATHERING DUST ON A SHELF?

Fisher: I THINK THAT DEPENDS UPON -- I THINK THE GOVERNOR IS COMMITTED TO THAT. AND I THINK IT'S IMPORTANT THAT HIS LEADERSHIP, THE LEADERSHIP OF THE LEGISLATURE, AND THE BUSINESS COMMUNITY LEADERSHIP REALLY KEEP THAT GOING. AND THAT'S THE KEY TO IT.

Glover: LET'S FLIP OVER FOR JUST ONE SECOND AND CHANGE TOPICS A BIT TO POLITICS. YOU'RE NOT OF THE GOVERNOR'S POLITICAL PERSUASION, BUT YOU'VE HAD KIND THINGS TO SAY ABOUT HIS COMMITMENT TO HIGHER EDUCATION. GIVE THIS GOVERNOR A GRADE. HOW IS HE DOING IN HIS COMMITMENT TO HIGHER EDUCATION?

Fisher: I THINK FOR ALL EDUCATION, I THINK HE'S DOING JUST FINE. I THINK HE CAN DO BETTER, AND I THINK HE WILL DO BETTER.

Glover: HOW?

Fisher: I THINK HE NEEDS TO HAVE A BETTER UNDERSTANDING OF THE UNIVERSITIES, SPEND SOME TIME ON CAMPUSES, LEARN WHAT'S GOING ON, ON THE CAMPUSES. I THINK HE WILL DO THAT, AND I THINK HE'LL GAIN A GREAT APPRECIATION OF HIGHER EDUCATION IN THIS STATE.

Yepsen: MR. FISHER, ONE OF THE THINGS YOU DID FOR GOVERNOR BRANSTAD WAS TO HEAD AN ECONOMY COMMITTEE CALLED THE FISHER COMMISSION. MADE A LOT OF CHANGES AND RECOMMENDATIONS IN STATE GOVERNMENT, INCLUDING ELIMINATION OF DUPLICATION. IS IT TIME FOR A FISHER COMMISSION TO TAKE A LOOK AT THE BOARD OF REGENTS?

Fisher: LET ME SAY THIS, DAVID. THERE ARE NINE MEMBERS OF THE BOARD OF REGENTS. WE'RE PRIVATE CITIZENS FROM VARIOUS WALKS OF LIFE AND VARIOUS PROFESSIONAL BACKGROUNDS. WE MEET EVERY MONTH EXCEPT AUGUST. WE MEET FOR TWO DAYS. WE HAVE COMMITTEE MEETINGS. WE HAVE CLOSE OVERSIGHT OF THESE UNIVERSITIES, AND WE CHARGE EACH OF THE PRESIDENTS TO MANAGE THOSE BUSINESSES AND THOSE EDUCATIONAL INSTITUTIONS IN THE MOST EFFICIENT WAY THEY POSSIBLY CAN. WE HAVE A VERY CLOSE OVERSIGHT. I DON'T THINK THAT'S NECESSARY RIGHT NOW. IT'S AN ONGOING -- WE HAVE OUR ARMS AROUND IT. WE UNDERSTAND IT AND THE REPORTS THAT WE RECEIVE ON A MONTHLY BASIS. I THINK I'M COMFORTABLE WITH WHAT'S GOING ON, ON THE CAMPUSES.

Yepsen: WHY DO YOU THINK IOWANS CAN AFFORD MORE FOR HIGHER EDUCATION? WE ALREADY SPEND IN THE STATE -- ABOUT SEVENTH IN THE COUNTRY IN PER CAPITA LEVELS OF SPENDING FOR HIGHER EDUCATION. WE SUPPORT STATE UNIVERSITIES, AS TAXPAYERS, COMMUNITIES COLLEGES, PRIVATE COLLEGE TUITION GRANTS. SOME PEOPLE SUGGEST MAYBE THE SYSTEM OF HIGHER EDUCATION IN THIS STATE IS A LITTLE OVERBUILT.

Fisher: I THINK THAT IF YOU LOOK AT HIGHER EDUCATION AND ALL EDUCATION IN THIS STATE -- NUMBER ONE, IT'S THE NUMBER ONE PRIORITY ON IOWA CITIZENS. ANY POLLS YOU SHOW, IT'S EDUCATION. THEY HAVE BEEN VERY GENEROUS TO HIGHER EDUCATION. THEY HAVE GREAT PRIDE IN OUR UNIVERSITIES, AND I DON'T SEE ANY WANING OF THAT. I THINK THEY WILL CONTINUE TO SUPPORT HIGHER EDUCATION, AS THEY DO ALL OTHER EDUCATION IN THIS STATE.

Glover: FORGIVE ME, MR. FISHER, IF I KEEP GETTING BACK TO POLITICS. IT'S KIND OF AN INTUITION HERE, BUT THIS BOARD OF REGENTS HAS MEMBERS APPOINTED BY THE CURRENT GOVERNOR, IT HAS MEMBERS APPOINTED BY THE FORMER GOVERNOR. WE TALKED ABOUT THE CLOSE WORKING RELATIONSHIP. IS THERE UNANIMITY AMONG THE REGENTS ON WHAT DIRECTION IOWA'S UNIVERSITIES OUGHT TO GO?

Fisher: I BELIEVE THERE IS. ONE THING I'D LIKE TO SAY, MIKE, IS THAT, YES, WE REPRESENT VARIOUS POLITICAL PARTIES; BUT WHEN WE SIT AROUND THIS TABLE, POLITICS IN MY -- IS OFF THE TABLE. ALSO, THE ALLEGIANCE WE HAVE TO VARIOUS UNIVERSITIES... THERE'S STRONG SUPPORTERS OF IOWA STATE, UNI. I'M A STRONG SUPPORTER OF THE UNIVERSITY OF IOWA. WE LOOK WHAT'S GOOD FOR HIGHER EDUCATION IN THIS STATE. NOT -- WE DON'T TAKE OUR PREJUDICES WITH US. WE KEEP THOSE OFF THE TABLE AND DO WHAT'S BEST FOR IOWA STUDENTS.

Obradovich: I HAVE A FEELING THAT, VIEWERS OF THIS PROGRAM ASIDE, THERE'S A LOT MORE PEOPLE OUT THERE WHO ARE MORE INTERESTED IN SPORTS THAN POLITICS. SO A QUICK QUESTION ABOUT THE ATHLETIC PROGRAMS AT OUR UNIVERSITIES. ARE YOU HAPPY WITH THE WAY THAT THOSE ARE GOING AND PROGRESSING?

Fisher: I THINK THEY'RE RUN VERY WELL. THE PRESIDENTS ARE IN CHARGE, AND THAT'S THE WAY IT SHOULD BE. THEY HAVE VERY COMPETENT ATHLETIC DIRECTORS. THEY'RE CLEAN PROGRAMS. THEY'RE GOOD PROGRAMS.

Glover: WE'VE TALKED A LITTLE BIT ABOUT WHAT YOU WANT TO DO TO PREPARE FOR THE NEXT LEGISLATIVE SESSION TO DO A LITTLE BIT BETTER THAN YOU DID THIS YEAR. IF YOU COULD CONVINCE THE GOVERNOR TO DO ONE THING FOR THE UNIVERSITIES, THE REGENTS UNIVERSITIES NEXT YEAR, WHAT WOULD THAT ONE THING BE?

Fisher: I THINK THAT THE GOVERNOR NEEDS TO TAKE A LOOK, AND I BELIEVE HE WILL, AT OUR REQUEST FOR APPROPRIATIONS, AND AT LEAST GIVE US THE INFLATION FACTOR PLUS FUND OUR SALARY APPROPRIATIONS. WE NEED TO HAVE THAT DONE. WE RECEIVED ABOUT 2.1 PERCENT INCREASE IN TOTAL APPROPRIATIONS. BUT THE SALARY INCREASES THAT ARE NEGOTIATED BY THE OVERALL STATE GOVERNMENT -- AND WE ACCEPT THOSE -- WENT UP 4 PERCENT. SO THAT'S WHERE THE SHORTAGE WAS, IN THE SHORT FUNDING OF SALARY.

Glover: CAN YOU GIVE US A NUMBER OF WHAT YOU THINK YOU'LL NEED NEXT YEAR?

Fisher: WE ARE -- I DON'T HAVE THAT, BUT I WOULD THINK THAT WE NEED TO BE IN THE 3.5 TO 4.5 PERCENT ADDITIONAL FUNDING FOR THE UNIVERSITIES TO KEEP EVEN.

Yepsen: MR. FISHER, I WANT TO GO BACK TO KATHY'S QUESTION ABOUT ATHLETICS. A LOT OF PEOPLE THINK TOO MUCH EMPHASIS IS PLACED ON ATHLETICS BY THE STATE UNIVERSITIES, THAT YOU'RE PAYING THOSE FOOTBALL COACHES TOO MUCH. WHO DO YOU SAY TO THAT CRITICISM?

Fisher: WELL, THEY DO GET AN AWFUL LOT OF MONEY. IT'S BIG-TIME SPORTS. IT'S IMPORTANT TO THE VISIBILITY OF THE UNIVERSITIES THROUGHOUT THE COUNTRY, THROUGHOUT THE WORLD. I CAN SHOW YOU THAT AT THE UNIVERSITY OF IOWA, THEY HAD A SURVEY A FEW YEARS AGO THAT PEOPLE THAT CAME IN GIVING TO THE UNIVERSITY CAME THROUGH THE ATHLETIC DEPARTMENT. BUT OVER $90 MILLION OF THEIR FUNDS WENT TO ENGLISH DEPARTMENT, HISTORY DEPARTMENT, MEDICAL DEPARTMENT, AS OPPOSED TO THE ATHLETIC DEPARTMENT. SO IT PROVIDES HIGH VISIBILITY. THEY'RE IN A COMPETITIVE, COMPETITIVE ARENA. THAT'S THE MARKET. THE GOOD NEWS IS THEY'RE PRETTY WELL SELF-FUNDED THROUGH TICKET SALES.

Yepsen: MR. FISHER, THE BAD NEWS IS WE'RE OUT OF TIME. THANK YOU FOR BEING WITH US TODAY. APPRECIATE YOUR COMING OUT.

Fisher: THANK YOU. WE HAVE THREE GREAT UNIVERSITIES, AND I'M PLEASED TO BE HERE TO TALK ABOUT THEM.

Yepsen: THANK YOU. NOW, ON OUR NEXT EDITION OF IOWA PRESS, WE GET A STATUS REPORT ON THE BUSINESS OF THE 106TH UNITED STATES CONGRESS. JOINING US FROM THE IOWA DELEGATION IN WASHINGTON, D.C. IS SENATOR CHARLES GRASSLEY, WHO'LL FOCUS ON THE ISSUES OF THE 106TH, NOW IN ITS FINAL MONTHS IN THE NATION'S CAPITAL. THAT'S NEXT SUNDAY AT NOON AND 7 P.M. NOW, ONE REMINDER AS WE LEAVE YOU THIS SUNDAY IS THAT IOWA PRESS IS NOW AVAILABLE TO OUR IOWA PUBLIC TELEVISION VIEWERS ON THE WORLDWIDE WEB. TRANSCRIPTS OF PAST PROGRAMS ARE AVAILABLE ON OUR WEBSITE, AS IS COMMENTARY FROM OUR TEAM OF IOWA PRESS REPORTERS AND NEWSLINKS TO OTHER SOURCES DEALING WITH THE TOPICS WE DEAL WITH HERE AT THE IOWA PRESS TABLE. YOU CAN CLICK IN AT WWW.IOWAPRESS.IPTV.ORG DEAN BORG REJOINS US NEXT SUNDAY, AND I HOPE YOU WILL AS WELL. I'M DAVID YEPSEN OF THE DES MOINES REGISTER, AND THANKS FOR JOINING US HERE ON STATEWIDE IOWA PUBLIC TELEVISION.

FUNDING FOR IOWA PRESS WAS PROVIDED BY FRIENDS OF PUBLIC TELEVISION. AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS.