As citizens from many fields and also alumni, active volunteers of Arizona State University, we are appalled by a recent report of the Goldwater Institute. The report asserts that higher education spending does not significantly impact economic growth. Moreover, the report denies any tie between the presence of prestigious universities and economic growth. These conclusions are illogical and readily refutable by the most general observer.

College graduates earn 70 percent more than those without degrees. The Goldwater Institute report suggests that having an educated workforce doesn't translate into dollars for the state.

In reality, that college-educated segment of the workforce returns significant dollars. A recent economic impact report demonstrated that total income in Arizona is now $1 billion higher because of undergraduate education services provided by ASU during the past three decades.

Eight senior Ph.D. economists and public policy analysts with more than 175 years of collective experience conducting research and analysis of public finance, econometrics, macroeconomics, public policy and business trends have determined the Goldwater Institute report lacks credibility. They concluded the study repeatedly violated techniques required for valid economic analysis. It is rife with misrepresentations and procedural errors, academically unacceptable for an undergraduate. There are many other solid, more defensible studies on the economic impact of higher education, and its effect on the state of economic well-being are readily available. This pathetic effort by the Goldwater Institute to repudiate the value universities bring to the community, state and region is not only counterproductive; it can be detrimental to Arizona's future.

The new Goldwater Institute report has surfaced just as key decisions are being made about investment in the state's universities. Many models exist for funding higher education. ASU has started the shift from an agency model to an enterprise model of investment. With this comes the understanding that investment carries an expectation of a return.

Policy makers should take a lesson from the business community. Business leaders are well aware of the measurements of return on investment in higher education related to research. They recognize the university's real and significant value. As a result, ASU is among the most active partners for the Arizona business community. The university's effect on the Arizona economy stems from a broad range of activities including everything from research, grants, partnerships, student and visitor spending. These examples only scratch the surface.

As important as that proven economic impact has been, we must not lose sight of the many other benefits ASU brings to the community and state - benefits that must be measured by more than dollars and cents. In addition to fostering new business and creating long-term job growth, the university promotes innovation; enhances the workforce; improves the quality of life; and enhances community service. The effects of blindly accepting the conclusions of the Goldwater report would be detrimental to ASU, to our children and grandchildren and to the vision of Arizona as a wonderful place to live and to work.

Many on our ASU Alumni Board admire the elements of conservative philosophy. It is increasingly evident, however, that some limited-government advocates have failed to grasp the manner in which public education can support and expand economic opportunities. They should not deprive Arizona of a bright business future.

Look at cities with thriving economies and you'll find great universities. Arizona has great potential, and it can be realized through investment in our universities -- investment in our future.

Sincerely,
Martin L. Shultz '66, '67 M.Ed.,
2002-03 Chairman
ASU Alumni Association Board of Directors
On behalf of the entire board.

Martin Shultz '66, '67 M.Ed.

President's Letter