William E. Kirwan: Transforming Maryland Status of state’s economy rests with quality of its higher education

The reasons are clear. Thanks in large measure to a strong system of higher education, public and private; the presence of dozens of federal labs doing cutting-edge research in partnership with our universities; and a growing tech-based private sector, especially in the biosciences, Maryland has the potential to become an economic powerhouse.

Solidifying our position

Our state ranks in the top five nationally in percentage of residents with a bachelor’s degree, the number of doctoral scientists employed in our workforce, the ratio of high-tech workers in the private sector, and federal funding for research and development. But, our enviable position is fragile.

A recent report by a Maryland business group, the Fort Meade Alliance, says the state will experience an almost 20 percent increase in demand for engineers and scientists between now and 2014. Moreover, several states are not standing still. North Carolina, Connecticut, New York, Michigan and California, to name just a few, have made huge recent higher education investments in research infrastructure and workforce development as a means of building their states’ economic competitiveness.

Maryland’s elected leadership appears committed to addressing the state’s $1.7 billion structural deficit. But it is not enough to just ‘‘pay our bills.”

Gov. Martin O’Malley earlier this week took the bold step of identifying a dedicated funding stream for higher education, marking a historic first. Let’s hope that our other elected officials will support his plan and take steps to generate the revenue necessary and make investments in areas that will ensure a bright future for all Marylanders, including higher education, transportation, health care and the environment. This is the only way Maryland can realize its potential as a leader in job and economic growth and be a state where its citizens enjoy an exceptional quality of life.

Meeting enrollment demands

In particular, if higher education is to grow the capacity of its institutions to meet the anticipated surge in enrollment demand, continue to build the quality of its universities, invest in recruiting the research talent so necessary for a vibrant knowledge economy, address the pressing highly skilled workforce needs and keep tuition affordable, the state will need to find a way to increase higher education funding significantly in the coming years. Although the amount needed is sizable, rising to several hundred million dollars over the next several years, this is both an investment the state can afford and one it must make if it hopes to realize its potential as the next Silicon Valley.

Maryland ranks 40th nationwide in higher education investment per $1,000 of personal income. If it moved to, say, 15th — not an unreasonable goal for a state trying to build a world-class knowledge economy — there would be ample funds to build the quality and capacity, at an affordable price, that would meet Maryland’s future higher education needs

Maryland is fortunate to have a governor and legislative leaders who are prepared to grapple with our fiscal challenges. Our outreach efforts have revealed that the business community and the general public understand the importance of investment in higher education for our state’s future. Indeed, quality, access and affordability are not simply USM goals; they are, in a very real sense, the aspirations of citizens and families throughout Maryland.

For decades, Maryland has been a low-investment, high-tuition state, hampering access and affordability and investment in research infrastructure.

Just as USM has transformed itself through its Effectiveness and Efficiency efforts, so too must Maryland now transform itself to make higher education the priority it will have to be if the dreams and aspirations of present and future generations are to be realized.

William E. Kirwan is chancellor of the University System of Maryland.