Federal policy

Anxiety and Uncertainty

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As Aug. 2 deadline for increasing the federal debt limit nears, no one seems to know what will happen to federal student aid payouts if a deal is not reached. Agencies are mum.

For-Profit Debate Redux

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Senate roundtable features continued criticism of the sector -- and continued pushback against more regulation.

Frustration with the Feds

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At annual gathering, financial aid administrators say they are exasperated by the constantly changing regulatory environment of recent years.

The End of Subsidized Loans?

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A GOP proposal in talks to raise the federal debt limit would end the subsidized student loan program for undergraduates.

'State Authorization' Struck Down

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WASHINGTON -- Higher education hates the U.S. Education Department's recently enacted regulation requiring institutions to seek and gain approval from any state in which they operate, and has fought it on multiple fronts. Late Tuesday colleges and universities got at least a temporary reprieve from the part of the rule to which they most object -- its application to online programs in which even one student from a state enrolls.

Naughty and Nice on College Price

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U.S. Education Department has released lists -- 54 in all -- of most and least expensive colleges and those increasing tuition at the fastest rate. Will they matter?

Missing the Mark: Graduation Rates and University Performance

In the quest to measure university performance, both for valid or other reasons, we often latch on to statistics in ways that do more harm than good.

SAT scores, GPA's and graduation rates are all examples. Each of these data points provides some information about some characteristics of students and their universities, but none of them can serve as the ultimate test of institutional or individual worth. Universities and colleges are complicated places that serve widely varying individual students, each with a particular set of abilities, resources, preparation, background, attitudes, and goals. No single number captures this complexity, and when we extract simple numbers from this complicated mix and use them to compare colleges, we usually generate cynicism, misinformation, and, on occasion, misplaced remedies for inaccurately identified problems.

Let us take the graduation rate. What could be simpler or easier to understand? This rate measures the percentage of those students starting college in year one who graduate by the end of year four (or for some purposes year six).  The four-year rate reflects the ideal model of the small liberal arts college where students attend full time for four years to complete a program that requires exactly eight semesters of academic work. Although we do not say so, we also have in the back of our minds that perhaps the very best college of all graduates 100 percent of its students within the four years. When a university graduates only 70 percent or 60 percent within the four-year period, we wonder why it fails to educate all of its students.

University people know better, but the answer, being complicated, fails the Lombardi 25 word test: "If you can't explain it in 25 words, most people won't listen."

Universities and colleges do want their students to graduate, and to do so having taken a rigorous course of study that challenges them. The institutions want to accept some students whose academic promise may exceed their academic preparation for college, and to accommodate students whose financial circumstances require them to work and attend part time. So, they try to explain graduation rates with a few more than 25 words.

Most colleges and universities institutions do not fit the full-time, small residential liberal arts college model. Some have programs like engineering that require five years of full time study, or pharmacy programs that also require more than the standard four years. Many institutions specialize in high-risk students, and by definition, many of these students will not succeed. Many students register for only 12 credits a semester because that is how the federal government defines full time for financial aid, yet to graduate in four years, students must take 15 credits. The graduation rate includes students who register for 12 credits, so by definition many students will fail to meet the four-year goal.

In large complex university systems, students frequently start at one campus, then transfer and finish at another. These students may transfer because they choose to pursue a program the first institution doesn't have, or because they couldn't gain admission to a highly selective major in their first institution, or found they preferred a larger or a smaller institution, or wanted to be closer to home, or had financial difficulties at the first campus. None of these reasons necessarily provides cause for alarm, but students leaving for these reasons will lower the graduation rate.

Even so, some reasons for low graduation rates do require attention. Sometimes students drop out because they cannot find seats in required classes or because they fail classes. Students can become isolated and discouraged and drop out; they can find themselves distracted by social and other non-academic activities and neglect their class work. Sometimes these failures reflect weaknesses in campus support services, and with careful attention to academic advising along with effective student support programs, campuses can reduce the dropout rate and improve the graduation rate. 

When we use graduation rates to compare campuses and infer from these comparisons that one campus is doing a better job of educating students than another, we exceed the value of the data point. It may be that the campus with a high grad rate is simply giving away its degrees (after all, a diploma mill has a 100 percent graduation rate). It may be that the campus with a low rate is working with high risk students. Or, it may be that the high rate campus is doing a superb job of advising and the low rate campus is ignoring its students. 

The grad rate doesn't tell which answer is right. The right answer requires a detailed analysis of what happened to the students who dropped out, and that takes more than one data point.  If the campus improves its own graduation rate, that is probably a good thing, but comparisons of grad rates among campuses usually produce more distortion and misunderstanding than progress. 

State colleges with lower tuition usually have lower graduation rates than private colleges with high costs because they accept a wider variety of often less affluent students.  Private college parents, who pay a lot of money for their children's education, expect the college to find a way to graduate those students, and paying parents encourage their students to finish in the minimum four years.  Sometimes this produces grade inflation as eager institutions seek to meet the expectations of paying parents.

As most university administrators know, graduation rates are very different for different subsets of students within the same campus. Some groups will graduate at rates approaching 100 percent, others at rates well below 40 percent. Both sets of students attend the same institution, have access to the same classes and faculty and advisers, and experience the same intellectual, cultural, and social environment. They have remarkably different graduation rates because they are remarkably different students. 

Some of those who succeed easily are smart and academically well prepared, others who fail are also smart and academically well prepared but perhaps not yet ready to live away from home or experience a large university. Some of those who fail are poorly prepared and economically challenged, but others in similar circumstances meet the challenge and succeed. Improving graduation rates requires attention to the specific needs of significantly different groups of students. 

If we overemphasize graduation rates, colleges may suffer the temptation to do whatever it takes to get the high percentages celebrated by rating agencies and trustees. One way to help improve the rate, after all, is to inflate grades so that all students are above average, and water down the curriculum so everyone can get a degree -- not outcomes of much interest to the policy makers, board members, or politicians who tout graduation rates as the touchstone of college performance.

John V. Lombardi
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John V. Lombardi, author of the Reality Check column, is chancellor and a professor of history at the University of Massachusetts-Amherst.

Can We Learn the Hard Languages?

To: Secretary of State Condoleezza Rice, Secretary of Education Margaret Spellings

Re: University Presidents Summit on International Education

A week or so ago, at the University Presidents Summit on International Education, you honored us with an event delivered with class and style uncommon in executive branch engagements with university presidents and chancellors. As I’m sure you noticed, we enjoyed the attention, respected the intent, and appreciated your personal and effective participation, as well as your mobilization of key actors including the President and First Lady. As we all returned to our campuses to reflect on the messages, themes, and programs discussed, and you return to the critical business of government, a reality check on our conversation seems in order.

International education in all its many forms has been a major agenda item in American higher education forever, and over the most recent 30 years or so, colleges and universities have conducted a constant conversation about internationalizing the curriculum and improving the campuses’ ability to bring the world home.  

This agenda, which reappeared in many of the comments by the university and college presidents in attendance, is really not a federal obligation. The task of internationalizing or globalizing our campuses belongs to the institutions. If internationalizing is a major campus concern, like teaching chemistry, the campus will find a way to do it because it will be central to the campus’s academic and student programs. If a campus requires federal money to support a major change to its curriculum or to rethink its purposes, the campus is not likely to be effective anyway. I would recommend that you thank us for such insights, and return to the main purpose of the summit: language skills.

Success in this proposed joint venture requires that both the federal government and the universities speak clearly and precisely about what you want and what we can do.

We in the universities and colleges have much experience in taking tightly focused government programs and diffusing their intent to flow money into activities more central to our interests. If you fund language and area studies, we will leverage the language effort to get more resources for area studies, literature studies and culture studies. These are good things, but they do not address the national need you articulated at the summit, learning language.  

Further, we in the colleges and universities are expert at avoiding effective performance measurement. If the nation needs college educated graduates functionally literate in a number of less commonly taught languages, the only way to get this result is to fund programs that will test the graduates. If you want us to graduate students with a command of spoken and written Arabic, Urdu or Mandarin, you need to fund a program that delivers money to institutions that demonstrate the functional literacy of its graduates in these languages through standardized tests. Otherwise, we will train people for you who can read some things in some languages, have traveled and lived in the countries where some of these languages are spoken, but who may or may not have functional usable literacy.

We are good at redefining objectives. If the federal government wants to help create college graduates who have high quality skills related to living and working within other languages, it must fund specific programs in specific countries focused on the acquisition of testable specific language skills. If we go to India, and live primarily with English speaking communities, we will return with cultural awareness and many good stories to tell about our experiences, but we will not have acquired functional competency in a foreign language or culture. You must be specific about what you want, specific about how you will know when you get it, and specific about the test you will apply to validate the learning accomplished. This is difficult in cultural studies, but it is not at all hard in language acquisition.

If we struggle with clarity and effectiveness in our international objectives and programs, our counterparts in the federal government -- especially the State Department, the Defense Department, and some of the intelligence agencies -- send conflicting messages about the importance of language and area studies expertise. While we hear that in-depth knowledge of countries and languages is essential to the defense and prosperity of the nation, we also know that the State Department and the Defense establishment tend to rotate their employees from place to place, country to country, language region to language region, devaluing in the process true expertise in either language or culture. 

We also know that the career track to high level assignments in both State and Defense place a premium on generalist experience and knowledge and little emphasis on high levels of expertise in any particular language or culture. We are also unsure whether language competency is of any particular advantage for positions within the Department of Education.

You could do some things to improve the incentives for students to think of language related skills as major assets for careers in State, Education or Defense. For example, you might institute a language competency premium for mid to high level employees in the executive branch, a bonus addition to salary for those capable of maintaining a high level of language competency throughout their careers (tested on a periodic basis). You might consider longer term assignments overseas or in region specific offices or agencies as premium assignments with enhancements to salary or other benefits that would demonstrate that the enthusiasm for functional language skills is highly valued, much in the same way combat duty and other difficult assignments carry a premium.

These comments speak to the task of making the skills associated with uncommonly taught languages valued in the real world that our students watch with clear-eyed intensity. They know that in the great American Midwest, for example, the daily need to know someone else’s language is minimal. We can travel for days without needing to speak anything but English. We see corporations hire language experts and culture brokers from among the nationals of countries where they trade and work, not from among the language fluent American college graduates. 

Students see that only a few individuals in high government positions speak another language fluently, and almost none speak uncommonly taught languages. They see no premium for acquiring and maintaining a competency in difficulty to learn languages, and so they leave the language skills to native speakers, language and literature experts, and some area studies specialists.  

To achieve your goals, you will need to help us focus on testable language skills, incentives for careers that use functional language skills, and support for overseas experiences that produce high levels of language performance.

We had a wonderful time at your summit, and the two of you are to be congratulated for what you are doing to improve education in the K-12 arena, facilitate the visa process, and address the constant challenge of encouraging the exchange of scholars without compromising national security. We are grateful for the respect reflected in the quality of our treatment during the Summit, and we are all eager to work with you.

John V. Lombardi
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Dreams Deferred?

The heated rhetoric surrounding immigration reform legislation in Congress threatens to drown out an important, bipartisan effort to resolve a decades-old inconsistency in federal immigration law concerning postsecondary tuition costs for undocumented students who have graduated from high schools in the United States.

The “DREAM Act,” which was incorporated into the Senate Judiciary Committee’s immigration reform bill last week, would allow states to provide in-state tuition for postsecondary education to undocumented students who have attended (for at least three years) and graduated from high school in their states.

Federal immigration law now prohibits them from doing so, though that has not stopped several states, including “red” states like Utah, Kansas, and Texas, from adopting such legislation in recognition of the fact that there are more than 50,000 of these students each year that graduate from high school as -- in nearly every way -- children of the American dream.

Of the DREAM Act, Sen. Jeff Sessions (R-Ala.) stated, “I find it inconceivable that we would provide greater benefits to persons who are here illegally than to American citizens. It makes a mockery of the rule of law."

However, Congress must ensure the debate over the education of undocumented students is actually grounded in the law, rather than rhetoric. Federal law related to this issue was interpreted more than 20 years ago by the United States Supreme Court’s 1982 Plyler v. Doe decision.

Plyler v. Doe involved a Texas law that effectively banned undocumented minor children from participating in public elementary and secondary education. The Court heard arguments that sounded quite similar to those used to deny in-state college tuition for the same students: that providing K-12 education rewards illegal immigration, that we should not give public benefits to those in the country illegally. The significance of this case is not that it settled once and for all the ideological arguments surrounding immigration. Rather, the Court created protective legal precedent for minor undocumented students by carefully examining the intersection of immigration law, the distribution of public goods, and individual rights as protected by the Constitution of the United States.

The Supreme Court’s decision addressed the question: Did a child break the law because the parents brought the child into the country illegally as a minor? The Supreme Court said “no.”

The Court ruled that such children, in fact, were entitled to equal protection under the law, one of America’s most cherished legal principles. As cited in the Court’s opinion, the Fourteenth Amendment to the Constitution provides that “[n]o State shall…deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.”

As a population within the state’s jurisdiction, undocumented students were, therefore, entitled to equal treatment under the law. In the opinion of the Court, Associate Justice William J. Brennan Jr., wrote, “To permit a state … to identify subclasses of persons whom it would define as beyond its jurisdiction, thereby relieving itself of the obligation to assure that its laws are designed and applied equally to those persons, would undermine the principal purpose for which the Equal Protection Clause was incorporated in the Fourteenth Amendment.”

The Court further argued that federal immigration law, despite “sheer incapability or lax enforcement,” was not a justification for denying children equal protection and access to education.

In recognition of this principle, several state legislatures have passed laws to allow in-state postsecondary tuition for undocumented students who have attended public high schools in state for more than three years. They realize the legal “no-man’s land” these students occupy, and have sought to remedy it under the law.

The central relevance of the Supreme Court’s case to this debate over in-state tuition for undocumented students is that we cannot simply ignore what Justice Brennan called the “shadow population” of students who go about their daily lives and contribute to our society in the same way that we all strive to contribute. Moreover, we cannot deprive these students of the equal protection that our Constitution provides simply because they graduate from the high school setting where the Supreme Court has decided that it applies.

Though the issue is easy to weigh down with heated rhetoric, we hope that the law will, in fact, prevail, and that Congress will pass the DREAM Act. As Justice Brennan concluded, “[W]hatever savings might be achieved by denying these children an education, they are wholly insubstantial in light of the costs involved to these children, the State, and the Nation.”

David Hawkins
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David Hawkins is director of public policy for the National Association for College Admission Counseling.

What Trustees Must Do, After A.U.

In the wake of the Sarbanes-Oxley Act, the 2002 federal law aimed at reforming the governance of public companies, corporate trustees have been on the hot seat to ensure greater transparency and accountability. While Sarbanes-Oxley does not apply to nonprofits yet, the U.S. Senate Finance Committee has been hard at work analyzing whether nonprofits merit more scrutiny and similar rules. The recent string of events at American University -- involving a president who needed a strong board to protect him from himself – has, for better or for worse, drawn attention to the challenges of higher education trusteeship. And Congress’s continuing interest underscores the pressing need for college and university boards to get their house in order – before someone does it for them.

But the existing culture of university trusteeship is one that promotes the status quo and discourages active and informed trustees. By custom and practice, trustees are not trained or encouraged to ask questions and do their job responsibly. Based on more than a decade of service as an elected regent of the University of Nebraska, and my involvement with the American Council of Trustees and Alumni and the Institute for Effective Governance, I have found a number of reasons this is the case, and identified some antidotes to these unhealthy practices.

For starters, when I was elected regent I was amazed at the number of parties, dinners and social functions that board members attend. The benefit of these events from the university administrator’s perspective is very clear: a trustee who becomes friends with administrators is going to be more likely to cheerlead than to challenge policies and practices.  As I delved into my work with my fellow regents, I was amazed at how willing regents were to let administrators make all the decisions. I soon realized that the “social side” of trustee life was only part of the problem.

The University of Nebraska has very good, decent people in its administration and on its Board of Regents. Yet the standard practice of public university administration, like so many other parts of our system of government, promotes agency interests first, often with results that fail to enhance the public interest. For example, the board voted 6 to 2 to spend over $3 million to build a storage facility for seldom-used books. These are not rare books, but standard texts available in libraries across the country. Now they will be stored in better conditions than the books in the University’s regular collection.

The board approved $3 million for a “hydraulically banked indoor running track system” so that the University of Nebraska at Lincoln’s sports center could boast a state-of-the-art, world-class indoor track.  This at a time when the university was increasing tuition and student fees and lobbying the legislature for more money claiming we do not have enough to pay faculty.

The list goes on.  Trustees who realize that their responsibility is to make decisions that serve the public (not always the university) would never approve these proposals. But the prevailing culture on university boards is one of routinely succumbing to administration demands. A significant part of the reason boards behave this way is that most university administrators contract with the Association of Governing Boards of Colleges and Universities to train new board members. AGB training follows a single model, which emphasizes following the administrators’ lead and not “micromanaging” -- in other words, not asking tough questions.

But if our universities are to be well managed, we need trustees who promote responsible policies and serve in a responsible manner -- which means asking tough, challenging questions, advancing public understanding of the trade-offs and costs of public programs, promoting responsible behaviors and often voting No for programs that do not meet cost-benefit standards.  

Having criticized my fellow board members for voting irresponsibly, let me offer a brief case study in which the University of Nebraska Board of Regents took a very courageous and responsible stand in the face of extreme pressures.  In 2000, the University of Nebraska Medical Center (UNMC) came under attack for conducting fetal tissue research using tissue from aborted babies. UNMC is prohibited from performing abortions, but it accepted tissue donations from a doctor who had been awarded “honorary faculty” status.

UNMC had not been doing fetal tissue research in secret; faculty had published more than 50 papers based on the research. But UNMC did deliberately keep the source of the tissue quiet -- and this proved to be a big mistake.  When the news media picked up the issue, it was described as “secret research using tissue from aborted babies.”

Nebraska pro-life groups condemned the research as immoral. Several vowed to defeat any regent running for re-election who supported this research. Political watchers predicted that the Board of Regents would quickly cave. The board thoroughly studied and debated the topic, and made the responsible decision. We weighed the overall public costs and benefits, thought through the moral questions, and, against significant threats and pressures, voted 12 to 0 to approve continuing fetal tissue research at UNMC. Recognizing the sensitivities of certain citizens on the issue, the board also directed the Medical Center to try to develop an alternative supply of tissue. UNMC did eventually develop some alternative sources for some of the cells needed, but to this day, it continues to use fetal tissue from abortions for some of the cell types since no other source can be found.

We need elected officials and university trustees who will make the tough and sometimes unpleasant decisions that result in responsible policy. Making tough calls, saying No, voting against programs that are recommended by administrators or government officials who are your personal friends, is very hard for an elected or appointed governing board member to do. But it is the responsible course. The public interest is clearly served by weighing all the costs and benefits to the public, debating alternatives openly and honestly, and then choosing the best option.  The administration will be advocating what is best for the university from its perspective -- at a public university, it is the trustee’s job to champion the public’s perspective.  

What are we to do to enhance the performance and responsible decision making by college and university governing boards in an environment that is dominated by administrators controlling the information and a board culture that promotes cheerleading rather than responsible governance? Here are 10 proposals:

1. Board members must subject major spending and policy decisions to cost/benefit analysis. It is a simple and extremely useful analysis because it forces trustees to consider disadvantages and trade-offs.  While simple to do, the fact is, cost-benefit discussions are rare at governing board meetings. Unfortunately, since administrators have the resources to do analysis and do not like trustees to “micromanage,” the normal practice for board members is no cost/benefit analysis, listen and nod as administrators speak, vote yes, and let the full-time officials explain the policies and decisions.

2.  The board secretary should be hired and rewarded by and responsible only to the board.  If the board wants to have serious staff work done and someone who can collect information and be responsive to the board, a staff person responsible only to the board is best. Board employees who work for the administration will understandably end up being less than supportive if there is a request for information the administration doesn’t like, or a serious disagreement in policy. Beware: A request to hire a board secretary is often viewed (incorrectly) as an insult and great threat to the president, and most likely will be opposed.

3. Responsible trustees should insist on real committees and meaningful committee meetings, sessions that truly tackle issues. Administrators often favor minimal board meetings and a maximum of socializing. Similarly, administrators do not like the board breaking down into committees where they can do even more analysis and work. Trustees must take charge of their board, organize into committees to get into budget and policies in far more detail than is possible in the full board meetings, and limit the amount of time lost to unimportant university “show” presentations and social events.

4. Boards should insist on having major “strategic issue” discussions at each meeting.  Another way to avoid the tendency to respond to administrator-set agendas and engage in end-of-the-process yes/no votes is to set aside a big block of time at each meeting to discuss key strategic issues in order to set policy to direct the university.  Dedicating the bulk of a full board meeting to tuition policy, recruiting, and other major economic issues has been very effective at the University of Nebraska.

5. Board members should insist on the right to “have the floor” so that they can delve into issues and get all their follow-up questions addressed.  The standard practice at board meetings is to have trustees wait in a queue to ask a question, with no opportunity for follow-up discussion and real debate. This needs to end.

6. To promote better accountability, trustees should insist on and help develop good “outcome measures” and “key performance indicators” for the university.  It would be great for students and taxpayers if public universities required all graduates to complete the GRE or some other relevant professional exam as a condition for graduation. We need this kind of national standard and outcome measure to enable us to judge how well we do in educating our students and compare the value added by our school relative to other schools. This data would allow evaluation of programs and professors -- great information for students and those working to improve the university.

7. After new programs are approved, accompanied by promises of great results, boards should at some later date compare the program’s actual results and outcomes against the initial promises and projections. I visited Missouri's top board and found that its members followed this practice. For example, they approved a Ph.D. in Applied Mathematics and, in a board review several years later, presented facts showing that annual student enrollments had fallend far short of those projected. The natural tendency is to hide bad results like this. But a board needs to ensure that problems are disclosed and dealt with, and reviews like this can help.

8. Every few years, the board and administration should convene a committee to review administrative costs and champion efforts to undertake cost cutting. Reducing administrative costs is a “continuous improvement” effort that will often involve personnel reductions and changes to longstanding practice. An active, responsible board can help provide the impetus to make these needed changes. In Colorado, one board working closely with the president was able to reduce the administrative layers and re-direct the savings to instruction. This is a story that should inspire us all.

9.  Trustees must demand an issues/requests tracking system, so when information is requested or an action is agreed to by the board, the request actually gets done. This is often not the case -- especially if the board secretary is responsible to the administration, not the board.

10. Finally, I recommend that university boards join the Institute for Effective Governance. I have attended sessions conducted by the Association of Governing Boards (the only other organization for trustees besides ACTA, which founded the institute) and read their materials, and the overwhelming message of AGB is for trustees to cheerlead for the campus administration. It has been my experience that AGB too often adopts the proposition that any disagreement with the administration is micromanaging or intolerable failure to support the president. If there were any doubt, recent problems at American University, where the board essentially gave a blank check to the president, should surely settle the matter: American University has been a member of the AGB for decades. The best way to adopt better practices is to visit other university boards, attend their meetings and talk with them about differences in practice. The Institute for Effective Governance (a group of trustees, not administrators) is a great source of best board practices and the most helpful resource I know for boards of trustees.

While I have great admiration for Nebraska’s current and past presidents, and have supported them on the vast majority of issues, I would never trust anyone with the freedom and blank check that trustees almost universally give to their top administrator. Nationwide, university boards simply do not scrutinize the budget the way city councils, county boards and legislatures do. We have great people on university governing boards, but the system is stacked against change and efforts to cut back spending or say no to new policies that continually lift the burden of responsibility from individuals.

To be a responsible board member, one must ask hard questions, do research, and frequently question and oppose college administrators who, understandably, often focus on the narrower interests of the college or university rather than the broader public interest.

In serving as a trustee, if you are not periodically voting “no” at meetings, or preventing some good-for-the-school-but-bad-for-the-public proposals from making it to the board for a vote, then you are not doing the job properly. If you have become such good friends with the school administrators that you find it too uncomfortable to oppose them on a vote, then you are not serving the public interest. If you are spending more time attending the athletic events, parties, and dinners with administrators rather than researching and questioning, then you are not serving as a responsible trustee.

Drew Miller
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Drew Miller is a member of the University of Nebraska Board of Regents, member of two public company boards of directors, and adviser to the Institute for Effective Governance. He is the president of Heartland Management Consulting Group and a colonel in the U.S. Air Force Reserve.


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