By Clay Robinson
Houston Chronicle
May 22, 2008

AUSTIN — Gov. Rick Perry on Wednesday urged university regents to consider several potentially controversial changes in policy, including merit bonuses for some teachers and state grants of scholarships, or "vouchers," directly to students.

"We have to take these reforms, we have to put them in place and we have to be responsible for them," said Perry, who co-hosted a wide-ranging higher education summit with the conservative Texas Public
Policy Foundation.

Rising tuition, which has strained the budgets of many Texas students and their families since Perry signed a tuition deregulation law in 2003, was barely mentioned all day. But the governor said his proposed reforms, which also include separating universities' research and education budgets and changing how tenure is determined for some professors, would make higher education "more accessible."
In an interview on Tuesday, Perry had said he was concerned that higher education is "becoming out
of reach" for some Texans. But a spokesman said the governor still supports the deregulation law,
enacted to help the Legislature bridge a $10 billion revenue shortfall without raising state taxes.

Under that law, regents have consistently raised tuition, arguing that the increases are necessary
because legislative appropriations haven't kept pace with student growth and other university needs.
Some of the governor's proposals, which also were endorsed by the TPPF, likely would require changes
in state law. No legislators attended the meeting, to which Perry invited members of all the state
university governing boards plus a number of business-oriented people.

Lawmaker weighs in

Rep. Lois Kolkhorst, chairwoman of an appropriations subcommittee that writes the higher education
budget, was pleased that Perry is opening a discussion well in advance of the legislative session that
begins in January.

"Higher education is not quick to change," said the Brenham Republican. "What is difficult for us is to
demand changes in Texas when the rest of the nation isn't going to change and we could lose talent."
But as higher education budgets have grown faster than inflation and population growth, Kolkhorst
said it's time to ask what students are getting for their money.

The governor urged regents, all his appointees, to immediately begin considering his proposals. "Working together, we can make higher education even more accessible, continue to enhance the learning environment and, most importantly, give Texas students the best chance to compete in the global marketplace," he said.

Bill Jones, chairman of the Texas A&M University System Board of Regents, was receptive. "These are the kinds of things we need to do to push our institutions to the next level (of performance)," he said.

University of Texas regents Chairman H. Scott Caven said he didn't necessarily agree with all the
recommendations. But he added: "It's very important that these issues be put on the table and discussed. Any institution that does not embrace change is doomed to extinction."

Details left hanging

Much of the student aid is now distributed through the universities. Under Perry's proposal, the state
would distribute money directly to students in the form of "scholarships" or "vouchers." The students
could them use the money to attend the schools of their choice.

A similar program already is in place in Colorado.

Presumably, the money given directly to students would be deducted from university appropriations,
although the governor, in laying out the idea, didn't say how it — or any of the other ideas — would be
carried out.

Most university funding in Texas now is based on formulas determined by enrollments. "There will be a lot of follow-up here," Perry said. He said the proposals could be modified by individual
schools.

"One size does not fit all," he said. "Texas Tech is not A&M."

clay.robison@chron.com