Voters Approve Florida Governance Shift, Major Bond Measures in California and Virginia By SARA HEBEL and PETER SCHMIDT Florida voters agreed last week to set up a new governing board for the state's public universities, in defiance of many lawmakers there, while Californians and Virginians voted to let their states borrow large sums of money to finance college construction. A total of 15 states voted on referendums directly affecting higher education. Also among them were Michigan, where voters overwhelmingly rejected a measure that would have cut the state's merit-based scholarship program off from a key source of funds, and Tennessee, where a solid majority of voters agreed to let lawmakers establish a lottery to finance college scholarships and other education-related needs. The Florida governance measure, approved by just over 60 percent of voters there, amends the state's Constitution to establish a new public-university governing board much like the one that Gov. Jeb Bush, a Republican, and the state's Republicandominated Legislature abolished two years ago. Governor Bush had opposed the measure, but had not campaigned heavily against it, focusing instead on his own (successful) bid to win re-election. The governance structure that had been put in place over the past two years had entrusted each of the public universities to its own gubernatorially appointed Board of Trustees. It left questions related to state higher-education policy to a state board that oversees all sectors of education, from preschool on up. That board will remain in place, but, as a result of last week's vote, it will have little authority over public universities. The campaign on behalf of the amendment had been mounted by Sen. Bob Graham, a Democrat and former two-term Florida governor. He had strongly opposed the Legislature's recent reorganization of university governance, and had argued that the state would suffer without the presence of some panel to oversee public universities and coordinate their efforts. The amendment's passage "is definitely a good thing for higher education," said Joan D. Ruffier, the chairwoman of Education Excellence for Florida, the organization that Senator Graham pulled together to lead the campaign. "Instead of competing against each other and building mediocrity in the higher-education system," Ms. Ruffier said, "the universities can build depth and programs of distinction that compete against their peers nationally." The amendment adopted last week will place the public universities under a 17-member Board of Governors that, being enshrined in the state Constitution, will have much more power and independence than the board that lawmakers had abolished. The institutions will retain their own Boards of Trustees, but those panels will have only those powers that the Board of Governors delegates to them. Several universities' boards had opposed Senator Graham's proposal, as had the associations representing the presidents of the state's public universities and community colleges. Many public-university officials argued that their institutions were thriving under the governance system established under Governor Bush, because having their own Boards of Trustees gave them much more flexibility. In response to last week's vote, Talbot D'Alemberte, president of Florida State University, said that he did not expect the passage of Amendment 11 to have much impact on his institution or how it is run. "Ultimately, I believe that a number of different types of governance will work, so long as you have good people," he said. The Constitutional amendment had been strongly supported by the state's teachers union, the Florida Education Association. It had watched its college affiliate, the 3,200-member United Faculty of Florida, lose its right to represent public-university faculty members throughout the state in collective bargaining when the former Board of Regents was abolished and power over faculty contracts was handed over to each university's Board of Trustees. Other Races Attract Attention The debate over the amendment had largely been overshadowed by two other political contests: the race for governor, which pitted Mr. Bush against Bill McBride, a Democrat, and by the debate over another proposed constitutional amendment, calling for limits on class sizes in elementary and secondary schools. Many college presidents had issued statements opposing the class-size measure, arguing that it would draw money away from higher education as the state scrambled to provide districts with new classrooms and teachers. Governor Bush also opposed the class-size amendment, but it passed nonetheless. The university-governance amendment takes effect in January. At that point, Governor Bush will need to make his appointments to the new Board of Governors and the reconstituted university Boards of Trustees. The state Legislature will have to devote part of its 2003 session to revising a host of laws that deal with university governance, to bring them into line with the newly amended Constitution. In elections elsewhere, voters in California and Virginia paved the way for their states to finance hundreds of millions of dollars in college construction projects, by approving statewide bond measures. The California measure, known as Proposition 47, passed comfortably, with almost 59 percent of voters approving it. It will provide $1.65-billion for campus projects, including $496-million at the California State University System, $408-million at the University of California system, and $746-million at the state's community colleges. The legislation that put this year's referendum on the ballot also authorized placing an additional $2.3billion in higher-education bonds on the state's 2004 ballot. If voters also approve the bonds in 2004, the two measures combined would be the largest bond package in the history of higher education, eclipsing the $3.1-billion of college projects that North Carolina voters approved two years ago. Virginia voters endorsed $846-million for campus facilities by a wide margin, with 72 percent of voters approving the measure, which also includes almost $55-million for museums. Brian Cannon, chairman of the Students of William and Mary Political Action Committee, said that he and other supporters of the Virginia bonds were pleasantly "shocked" by how many voters turned out to approve the measure. The nonpartisan student group, which formed in May, raised more than $17,000 to pay for radio advertising that urged support for the higher-education bonds and for other campaign activities, such as holding voter-registration drives at the College of William and Mary. "We view this as a mandate. It shows that Virginians want higher education funded at better levels than they are funded now," said Mr. Cannon, a junior who is majoring in government. On Election Day last week, he and about 40 student volunteers campaigned at voting sites and drove fellow students to the polls. Advocates for the bonds in both states had argued that institutions desperately need the projects to make room for a growing number of students, update technology, and catch up on a backlog of repairs so that buildings could meet fire codes, be more accessible to students with disabilities, and, in California, better withstand earthquakes. Supporters, though, had been concerned that voters might worry whether the states could afford to take on large amounts of debt during tough economic times. California is confronting a $24-billion budget deficit, and Virginia faces a $1.5-billion shortfall in revenues over the next two years. In California, some lawmakers and taxpayer groups had urged voters to reject the referendum, which also included $11.35-billion for construction at public elementary and secondary schools, saying that obligating the state to pay those bonds would be unwise financially. Supporters of the measures had countered that now is the best time for the state to issue bonds because interest rates are low, which makes it cheaper for the state to pay them back. They also argued that the bonds could spur economic development by creating thousands of construction jobs and improving university facilities that support the work of researchers. Elsewhere, Alaska, New Mexico, and Oregon also approved bond measures to finance college construction and other needs. Hawaii amended its Constitution to allow the state to issue special-purpose-revenue bonds to finance projects at private colleges and schools. The state had previously allowed the sale of such bonds only for public educational entities. Merit Aid Protected More than two-thirds of Michigan voters rejected a measure that would have deprived the state's merit-based college-scholarship program of its sole source of revenue: funds derived from the state's legal settlement with the nation's tobacco companies. The measure would have required that 90 percent of the approximately $300-million annual payment from the state to the tobacco companies be spent on hospitals, nursing homes, and other health-related needs. Currently, about 75 percent of such dollars go into the Michigan Merit Award Trust Fund, which awards $2,500 college scholarships to high-school students who perform exceptionally well on a state-administered standardized test. The referendum's passage would not have had any effect on the more than 137,000 students who have received such awards since the scholarship program's inception, in 2000. But it might have resulted in the denial of promised scholarship funds to 58,000 students who are scheduled to enter college next year, and an additional 20,000 who have deferred spending all or part of their awards, if state lawmakers were unable to come up with a new source of scholarship funds. The campaign on behalf of the measure spent more than $4-million -- about four times as much as the other side -- with much of the money coming from hospitals and other health-care providers or advocates. It argued that the tobacco money would be better spent on health care and that the majority of students who receive Michigan's merit-based scholarships come from financially well-off families and do not need state aid. Among the opponents of the measure were various organizations representing the state's college presidents, as well as teachers unions and several prominent current and former state officials, including Gov. John Engler, a Republican. They argued that the measure would have devastated the Michigan Merit Award program and wreaked havoc on the state's already tight budget, by obligating lawmakers to spend money on health-related programs that had not been receiving funds before. Tennesseans overwhelmingly adopted an amendment to the state Constitution that clears the way for lawmakers to create a state lottery, with some of the resulting revenue to be earmarked for financial aid for college students. The measure was supported by many education leaders, but opposed by the Tennessee Baptist Convention and other churchaffiliated groups. In Arizona and Idaho, voters approved measures to require that a certain percentage of American Indian gambling income go toward education programs. Between 1 percent and 8 percent of gambling revenues in Arizona will now go to the state for education and other activities, and tribes in Idaho will have to contribute 5 percent of their annual net gambling income to colleges and schools near Indian reservations. Arizona voters, however, defeated two other measures that would have authorized more gambling venues, including casinos and slot machines on tribal land, and directed some of the profits to higher education. http://chronicle.com Section: Government & Politics Volume 49, Issue 12, Page A26