GOVERNOR PAUL PATTON

POSTSECONDARY EDUCATION PLAN ANNOUNCEMENT

KENTUCKY EDUCATIONAL TELEVISION -- 3/26/97

MY GOAL AS GOVERNOR IS TO HELP BUILD A KENTUCKY WHERE THE STANDARD OF LIVING AND QUALITY OF LIFE IS COMPARABLE TO THE REST OF THE NATION -- A KENTUCKY WHERE OUR CHILDREN CAN GROW AND PROSPER.

WE CAN'T DO THAT IN ONE YEAR, OR FOUR YEARS OR EVEN TEN YEARS, BUT I AM COMMITTED IN THE TIME THAT I HOLD THIS OFFICE TO LAY THE FOUNDATION UPON WHICH THAT KIND OF KENTUCKY CAN BE BUILT.

TO REACH THAT GOAL WE MUST HAVE A POSITIVE BUSINESS CLIMATE WHERE OUR CORPORATE CITIZENS CAN BE PROFITABLE AND GROW TO CREATE MORE AND BETTER JOBS FOR OUR PEOPLE. WE MUST HAVE A WORKFORCE WITH THE SPECIALIZED SKILLS AND ADAPTABILITY TO COMPETE AND EXCEL IN A WORLD ECONOMY. TO DEVELOP THAT MENTAL CAPITAL, WE MUST HAVE A WORLD-CLASS, POSTSECONDARY EDUCATION SYSTEM ACCESSIBLE TO EVERY KENTUCKIAN. LET'S MAKE NO MISTAKE, IT IS THE MOST CRITICAL CHALLENGE WE FACE.

I HAVE BEEN BOTH AN EMPLOYER AND A PUBLIC SERVANT, AND FOR MY ENTIRE ADULT LIFE I'VE KNOWN THE IMPORTANCE OF HIGHER EDUCATION. I'VE STUDIED ALL OF THE ISSUES AGGRESSIVELY. MY PERCEPTION HAS BECOME MORE FOCUSED, MY SENSE OF URGENCY HAS BECOME MORE COMPELLING, MY DETERMINATION MORE RESOLUTE.

LET ME REMIND THE PEOPLE OF KENTUCKY AND THOSE IN HIGHER EDUCATION WHAT I SAID IN MY INAUGURAL ADDRESS ON DECEMBER 12, 1995.

". . . . I CHALLENGE THE INSTITUTIONS OF HIGHER EDUCATION TO THROW OFF THE SHACKLES OF THE PAST, USE THE INSTRUMENTS OF MODERN SCIENCE, EMULATE THE TECHNIQUES OF PROGRESSIVE BUSINESSES AND CHANGE THE WAY YOU TRANSFER KNOWLEDGE. YES, YOU NEED MORE MONEY, BUT MONEY ALONE WILL NOT REMEDY THE MALADIES. I CHALLENGE YOU TO ARTICULATE A NEW VISION, PROPOSE A NEW METHOD, SHOW ME A SYSTEM MORE DEVOTED TO INNOVATION THAN IT IS TO TURF, MORE CONCERNED ABOUT THE BIG PICTURE THAN IT IS ABOUT ITS OWN PLACE IN THAT PICTURE, AND I'LL WORK WITH YOU TO FIND THE MONEY TO DO THE JOB. WE MUST HAVE A SYSTEM OF HIGHER EDUCATION WHICH IS MORE RESPONSIVE, MORE EFFICIENT, AND MORE RELEVANT TO TODAY'S REALITIES AND TOMORROW'S NEEDS. OUR PEOPLE DESERVE NO LESS AND I WILL ACCEPT NO LESS."

THAT WAS MY POSITION AT THE BEGINNING OF THIS ADMINISTRATION AND IT IS MY POSITION NOW.

IMPROVING POSTSECONDARY EDUCATION IN KENTUCKY WILL BE THE MOST IMPORTANT TASK OF MY TENURE AS GOVERNOR. I'M WILLING TO DEVOTE VIRTUALLY ALL OF THE NEW RESOURCES I CAN MUSTER DURING MY FIRST TERM TOWARDS THIS EFFORT. I'M WILLING TO DELAY INITIATIVES IN MANY OTHER AREAS WHICH NEED ADDRESSING IF WE CAN ACHIEVE SUBSTANTIAL IMPROVEMENT IN HIGHER EDUCATION AND INDELIBLY IMPRINT ON THE MINDS OF THE PEOPLE OF KENTUCKY HOW IMPORTANT IT IS TO OUR FUTURE.

LET ME EMPHASIZE ONE POINT. I'M NOT JUST ASKING THE KENTUCKY GENERAL ASSEMBLY TO PASS A LAW, I'M ASKING THE PEOPLE OF KENTUCKY TO MAKE A COMMITMENT, A CONSCIOUS COMMITMENT TO OUR FUTURE.

OUR SYSTEM OF POSTSECONDARY SCHOOLS SHOULD ADDRESS THREE DISTINCT FUNCTIONS IF IT IS TO SERVE US WELL.

IT MUST FIRST AND FOREMOST HAVE A FOUNTAIN OF INTELLECTUAL CAPITAL, A MAJOR RESEARCH UNIVERSITY, FLOWING WITH THE NEW IDEAS, CONCEPTS, TECHNOLOGIES, AND ENTREPRENEURS NEEDED TO GROW OUR ECONOMY AND CREATE WEALTH FOR THE BENEFIT OF OUR PEOPLE.

SECONDLY, IT MUST HAVE INSTITUTIONS WHICH STRIVE TO MEET THE PARTICULAR NEEDS OF THE VARIOUS REGIONS OF THE STATE AND TO DEVELOP AREAS OF EXPERTISE UNIQUE TO THOSE REGIONS.

THIRDLY WE MUST HAVE INSTITUTIONS SPECIFICALLY DEVOTED TO PROVIDING A WELL PREPARED WORKFORCE. THESE INSTITUTIONS MUST HAVE THE FLEXIBILITY TO ADAPT TO THE EVER CHANGING ENVIRONMENT OF BUSINESS AND INDUSTRY.

IN CARRYING OUT THESE THREE FUNCTIONS, WE MUST MAKE MAXIMUM USE STATE OF THE ART TECHNOLOGY TO INSURE ACCESS, EFFICIENCY AND EXCELLENCE.

THE QUESTION IS, "UNDER OUR CURRENT SYSTEM OF POSTSECONDARY EDUCATION, DO WE HAVE WHAT WE NEED?" THE ANSWER IS "NO."

JUST THIS WEEK, I RECEIVED A LETTER FROM DOUGLAS KUELPMAN, VICE-PRESIDENT OF UNITED PARCEL SERVICE, KENTUCKY'S LARGEST PRIVATE EMPLOYER, WHO WROTE TO TELL ME THAT HE HAD THE OPPORTUNITY TO LEARN ABOUT THE ROLE OF HIGHER EDUCATION IN OTHER STATES WHERE LOCAL COMMUNITY COLLEGES ARE KEY PLAYERS IN THEIR REGIONS ECONOMIC DEVELOPMENT EFFORTS, DESIGNING STATE-OF-THE-ART TRAINING PROGRAMS FOR NEW AND EXISTING EMPLOYERS IN VERY SHORT TIME FRAMES BASED ON THE EMPLOYERS NEEDS. THE COMMUNITY COLLEGES HAVE THE AUTONOMY TO MAKE DECISIONS AND RESPOND AND ARE BETTER LINKED TO THE OTHER POSTSECONDARY INSTITUTIONS IN THE STATE. CREDITS TRANSFER SEAMLESSLY WITHIN THE SYSTEM AND TECHNICAL TRAINING IS NOT SEPARATE.

THOSE ARE THE ISSUES STUDIED BY THAT A JOINT TASK FORCE OF THE LEGISLATIVE AND EXECUTIVE BRANCHES THAT I CHAIR. LET ME REVIEW SOME OF OUR FINDINGS.

KENTUCKY'S TRADITIONAL ECONOMIC SECTORS ARE DECLINING AND ARE BEING REPLACED BY HIGH-TECH MANUFACTURING AND BY SERVICE INDUSTRIES. AS A RESULT OF THIS STRUCTURAL ECONOMIC SHIFT, THE NEED FOR A SKILLED WORKFORCE HAS BECOME EVEN MORE IMPORTANT FOR THE COMMONWEALTH'S COMPETITIVE POSITION. MOREOVER, AN ANALYSIS OF KENTUCKY'S COMPETITOR STATES SUGGESTS THE NEED FOR A MORE RESPONSIVE AND FLEXIBLE SYSTEM OF POSTSECONDARY EDUCATION "IN SYNC" WITH THE EMERGING ECONOMIC REALITIES OF THE 21ST CENTURY.

KENTUCKY CONTINUES TO LAG THE NATION AND COMPETITOR STATES IN EDUCATIONAL ATTAINMENT AT ALL LEVELS. HIGH SCHOOL GRADUATION RATES REMAIN AMONG THE LOWEST IN THE NATION. ONLY 13% OF THE STATE'S POPULATION COMPLETED A BACCALAUREATE DEGREE COMPARED TO THE NATIONAL LEVEL OF 20%. KENTUCKY ALSO CONTINUES TO LAG THE NATION AND COMPETITOR STATES IN PER CAPITA PERSONAL INCOME, THE MOST COMMON MEASURE OF A STATE'S ECONOMIC WELL BEING.

THE LINKAGE BETWEEN EDUCATIONAL ATTAINMENT AND ECONOMIC PROGRESS HAS BEEN WELL DOCUMENTED. IN THE 1997 KENTUCKY ANNUAL ECONOMIC REPORT, PRODUCED BY THE UNIVERSITY OF KENTUCKY'S CENTER FOR BUSINESS AND ECONOMIC RESEARCH, IT WAS CONCLUDED THAT 57% OF THE DIFFERENTIAL BETWEEN PER CAPITA PERSONAL INCOME IN KENTUCKY AND OTHER STATES CAN BE ACCOUNTED FOR SOLELY BY THE COMMONWEALTH'S LOW LEVEL OF EDUCATIONAL ATTAINMENT, ESPECIALLY AT THE POSTSECONDARY LEVEL.

FORTY FOUR PERCENT OF KENTUCKY'S ADULT POPULATION LACK THE NECESSARY LITERACY SKILLS TO FULLY PARTICIPATE IN THE KENTUCKY ECONOMY. THIS POPULATION CANNOT EFFECTIVELY COMPLETE A JOB APPLICATION OR READ AN INSTRUCTIONAL MANUAL.

ALTHOUGH KENTUCKY HAS INCREASED ACCESS TO AND PARTICIPATION IN POSTSECONDARY EDUCATION IN RECENT YEARS, THE STATE HAS NOT REALIZED SIGNIFICANT GAINS IN EDUCATIONAL ATTAINMENT. FACTORS CONTRIBUTING TO THE STATE'S LACK OF SUCCESS INCLUDE INEFFICIENCY ACROSS THE SYSTEM AND A STRUCTURE WHICH FOSTERS COMPETITION RATHER THAN COOPERATION.

EFFECTIVE STATEWIDE LEADERSHIP AND COORDINATION IS NEEDED FOR ALL OF THE POSTSECONDARY RESOURCES IN THE COMMONWEALTH.

THERE IS NO STATEWIDE STRATEGIC VISION TO DRIVE THE POSTSECONDARY EDUCATION SYSTEM AS A CRITICAL ECONOMIC ENGINE FOR THE STATE AND ITS REGIONS.

KENTUCKY IS 15TH - DEAD LAST IN RESEARCH AND DEVELOPMENT FUNDING - AMONG THE STATES WITH WHICH WE COMPETE FOR JOBS AND INDUSTRY. RESEARCH AND DEVELOPMENT IS VITAL TO THE GROWTH OF REGIONAL AND STATE ECONOMIES.

QUALITY AND EFFICIENCY IN POSTSECONDARY EDUCATION ARE CRITICAL ISSUES FOR THE FUTURE ECONOMIC DEVELOPMENT OF KENTUCKY AND THE QUALITY OF LIFE OF ITS CITIZENS. WITHOUT STRATEGIC INVESTMENT IN POSTSECONDARY EDUCATION AND CRITICAL LINKAGES TO A STATEWIDE MISSION, THE COMMONWEALTH WILL NOT REACH ITS FULL POTENTIAL, AND CITIZENS WILL NOT BE ABLE TO COMPETE IN THE GLOBAL ECONOMY OF THE 21ST CENTURY. KENTUCKY MUST CHANGE ITS PATH, AND MAXIMIZE ALL OF ITS POSTSECONDARY EDUCATION RESOURCES. KENTUCKY'S ABILITY TO IMPROVE ITS STANDARD OF LIVING AND QUALITY OF LIFE DEPENDS ON A COMMITMENT TO EXCELLENCE.

WE, IN KENTUCKY, HAVE ONE FUNDAMENTAL DECISION TO MAKE. DO WE WANT A SYSTEM OF HIGHER EDUCATION WITH A LONG-TERM STRATEGIC AGENDA THAT SERVES OUR PEOPLE AND OUR BUSINESSES IN EVERY PART OF THE STATE FAIRLY, EFFICIENTLY, AND EFFECTIVELY IN THE LONG RUN? OR DO WE WANT A SYSTEM WITH NO OVERALL GOAL OR PLAN, SERVING ONLY A PARTICULAR INSTITUTION, A REGION OF THE STATE, OR A POLITICIAN WHO HAPPENS TO BE THE MOST POWERFUL AT THE TIME?

WE HAVE THE LATTER, BUT I BELIEVE WE DESERVE AND NEED THE FORMER AND SO I'LL PROPOSE TO THE GENERAL ASSEMBLY ON MAY 5TH THAT WE DRAMATICALLY RESTRUCTURE THE POSTSECONDARY EDUCATION SYSTEM IN KENTUCKY.

HERE IS MY PLAN:

FIRST, ESTABLISH THE COUNCIL ON POSTSECONDARY EDUCATION WITH A STRATEGIC LINKAGE TO THE ELECTED LEADERSHIP.

THE COUNCIL CANNOT BE A COLLECTION OF SPECIAL INTERESTS BECAUSE A COLLECTION OF SPECIAL INTERESTS WILL ONLY TAKE CARE OF THE SPECIAL INTERESTS AND THE PEOPLE WILL BE IGNORED. THE COUNCIL MUST BE A REPRESENTATIVE COLLECTION OF KENTUCKIANS DEDICATED TO THE PEOPLE, RATHER THAN A REGION OR INSTITUTION.

THE COUNCIL MUST HAVE THE CONFIDENCE OF THE GOVERNOR BUT IT MUST ALSO HAVE THE CONFIDENCE OF THE GENERAL ASSEMBLY. THEREFORE, ALL MEMBERS OF THE COUNCIL MUST BE CONFIRMED BY BOTH HOUSES OF OUR LEGISLATURE.

THE POSITION OF PRESIDENT OF THE COUNCIL MUST BE FILLED BY A PERSON POSSESSING THE VERY HIGHEST ADMINISTRATIVE, ACADEMIC, POLITICAL AND COMMUNICATION SKILLS AND MUST BE SELECTED IN A NATIONAL SEARCH.

THE PRESIDENT OF THE COUNCIL MUST BE THE PRIMARY SPOKESPERSON AND ADVOCATE FOR POSTSECONDARY EDUCATION IN KENTUCKY. THE PRESIDENT AND THE LEADERS OF THE COUNCIL MUST ENGAGE IN A REGULAR AND MEANINGFUL DIALOGUE WITH THE GOVERNOR AND THE GENERAL ASSEMBLY.

THE COUNCIL'S ROLE MUST BE TO PROVIDE TO THE POLITICAL LEADERSHIP OF THE STATE, FACTUAL INFORMATION ABOUT POSTSECONDARY EDUCATION IN KENTUCKY AND ADOPT A STATEWIDE AGENDA THAT PROVIDES DIRECTION TO THE ENTIRE SYSTEM. THE COUNCIL'S JOB IS NOT TO MICRO-MANAGE HIGHER EDUCATION IN KENTUCKY BUT TO ELIMINATE DUPLICATION, WASTEFUL COMPETITION AND TURF BATTLES IT MUST INSURE THAT THE SYSTEM IS EFFICIENT AND MEETS THE NEEDS OF THE PEOPLE AND THE ECONOMY OF KENTUCKY.

EACH INSTITUTION MUST REMAIN AS INDEPENDENT AS POSSIBLE BUT IT MUST BE ASSIGNED A SPECIFIC ROLE AND BE GIVEN SPECIFIC INCENTIVES TO ACHIEVE ITS MISSION. EACH INSTITUTION MUST UNDERSTAND THAT IT IS A PART OF AN OVERALL SYSTEM SEEKING TO MOVE ALL OF KENTUCKY AHEAD, ECONOMICALLY, SOCIALLY, AND POLITICALLY.

TO THIS END, EACH INSTITUTION MUST UNDERSTAND THAT IT IS TO RECEIVE ITS GUIDANCE FROM THE COUNCIL, WHICH RECEIVES ITS GUIDANCE FROM THE POLITICAL LEADERSHIP OF THE STATE.

I AM ALSO PROPOSING THE ESTABLISHMENT OF A STRATEGIC COMMITTEE ON POSTSECONDARY EDUCATION OR SCOPE WHICH WILL BRING TOGETHER THE GOVERNOR, THE LEADERSHIP OF THE GENERAL ASSEMBLY AND THE LEADERSHIP OF THE COUNCIL. THIS ADVISORY GROUP WILL INSURE THE STATE'S ELECTED LEADERSHIP PLAYS A KEY ROLE IN THE DEVELOPMENT OF A STRATEGIC AGENDA FOR POSTSECONDARY EDUCATION.

MY SECOND RECOMMENDATION WILL BE TO ESTABLISH THE KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM (KCTCS) TO SERVE AS THE GOVERNING BOARD FOR THE COMMUNITY COLLEGES AND KY TECH.

LET THERE BE NO QUESTION REGARDING MY TOTAL COMMITMENT TO THE STRONGEST POSSIBLE COMMUNITY AND TECHNICAL COLLEGE SYSTEM FOR THE COMMONWEALTH. THIS SYSTEM IS THE LIFE BLOOD OF ECONOMIC DEVELOPMENT FOR THE STATE. DURING THE TEN YEARS BEFORE I TOOK OFFICE, FUNDING FOR THE COMMUNITY COLLEGES WAS REDUCED RELATIVE TO BENCHMARK BY 12%. SINCE I BECAME GOVERNOR, FUNDING HAS INCREASED BY 10% RELATIVE TO BENCHMARK AND WILL INCREASE BY 26% WITH THE IMPLEMENTATION OF MY PLAN FOR ENHANCING POSTSECONDARY EDUCATION. WHAT I PROPOSE IS AN INDEPENDENT STRENGTHENED, VIABLE, ACCESSIBLE COMMUNITY AND TECHNICAL COLLEGE SYSTEM.

FULLY 70% OF OUR WORKFORCE WILL NOT REQUIRE A TRADITIONAL BACCALAUREATE OR POST-GRADUATE EDUCATION, BUT 60% OF THESE KENTUCKIANS WILL NEED POSTSECONDARY OCCUPATIONAL PREPARATION. THIS IS THE JOB OF KY. TECH AND THE COMMUNITY COLLEGES, THE CHALLENGE IS IMMENSE, THE NEED IS URGENT, THE OBSTACLES FORMIDABLE. THERE IS NO ROOM FOR WASTE OR DUPLICATION OR TURF BATTLES.

THE COMMUNITY COLLEGES WERE ESTABLISHED TO PROVIDE THE FIRST TWO YEARS OF AN ACADEMIC COURSE OF STUDY TO BE TRANSFERRED TO A FOUR-YEAR SCHOOL IN PURSUIT OF A BACCALAUREATE DEGREE. KY TECH WAS ESTABLISHED TO TRAIN CRAFTSPEOPLE IN THE MANUAL SKILLS NEEDED TO BUILD AND MAINTAIN THE INFRASTRUCTURE AND INDUSTRY OF AN INDUSTRIAL NATION.

BUT OVER THE YEARS A NEW NEED HAS DEVELOPED, A NEED FOR HIGHLY AND SPECIFICALLY TRAINED TECHNICIANS IN THE FIELDS OF HEALTH-CARE, BUSINESS OFFICES AND PRACTICES, ELECTRONICS, ENGINEERING RELATED FIELDS LIKE DRAFTING, COMPUTER ASSISTED DESIGN AND COMPUTER OPERATION, PROGRAMMING AND MAINTENANCE.

BOTH INSTITUTIONS HAVE MOVED TO FILL THIS NEW NEED AND HAVE IN MANY WAYS BECOME DUPLICATIVE AND NEEDLESSLY COMPETITIVE. UNDER MY PROPOSAL, EACH OF THESE INSTITUTIONS WILL KEEP THEIR IDENTITY, LED BY A CHANCELLOR FOR EACH BRANCH BUT ANSWERABLE TO A SINGLE BOARD AND PRESIDENT WHO CAN ENSURE EFFICIENCY, RESPONSIVENESS, AND FAIRNESS TO ALL OF THE ELEMENTS OF THE COMBINED SYSTEM. THE PRESENT RIGHTS OF THE EMPLOYEES OF EACH INSTITUTION WILL BE PROTECTED.

I HAVE GIVEN THIS PROPOSAL ENDLESS CONSIDERATION. I REALIZE WHAT A PROFOUND CHANGE I AM PROPOSING BUT I HAVE CONCLUDED THAT IT IS ABSOLUTELY NECESSARY.

THE THIRD ELEMENT OF MY PROPOSAL IS TO CREATE A STRATEGIC BUDGET PROCESS FOR POSTSECONDARY EDUCATION. THE DATA FROM OUR RESEARCH CLEARLY SHOWS THAT WE'RE NOT SPENDING ENOUGH ON POSTSECONDARY EDUCATION COMPARED TO OUR NEIGHBORING STATES. IT ALSO SHOWS WE'RE NOT GETTING ENOUGH BACK FROM THE MONEY WE'RE SPENDING. FROM DAY ONE I'VE SAID THAT I'M NOT WILLING TO SPEND MONEY ON THE SAME OLD INEFFICIENT SYSTEM. WHEN WE BEGAN THIS PROCESS WE FORMED THIRTEEN ADVISORY GROUPS REPRESENTING ALL OF THE CONSTITUENCIES OF POSTSECONDARY EDUCATION AND ASKED THEM FOR INPUT. SOME OF THEM SUGGESTED CHANGE IS NECESSARY, SOME HAVE SEEN MONEY AS THE SOLUTION. I HAVE CONCLUDED WE NEED MONEY AND CHANGE. I WILL NOT PROVIDE ONE WITHOUT THE OTHER.

I'M CONFIDENT WE CAN AND SHOULD PROVIDE $100 MILLION OVER AND ABOVE COST INCREASES CAUSED BY INFLATION BY THE SECOND YEAR OF THE NEXT BIENNIUM. WITH THE PASSAGE OF MY REFORMS, I COMMIT TO INCLUDE THAT AMOUNT OF NEW MONEY IN THE BUDGET I PRESENT TO THE GENERAL ASSEMBLY IN JANUARY OF NEXT YEAR.

AS A GESTURE OF GOOD FAITH, I WILL PROPOSE THAT THE CURRENTLY ENACTED BUDGET FOR THE FISCAL YEAR BEGINNING NEXT JULY 1 BE INCREASED BY ABOUT $36 MILLION TO BEGIN THE PROCESS OF GRANTING EQUITY AND INDUCING EFFICIENCY AND EXCELLENCE. ABOUT $20 MILLION OF THIS APPROPRIATION WILL BE USED TO BRING FUNDING FOR ALL INSTITUTIONS UP TO 95% OF THEIR BENCHMARKS BEGINNING ON JULY 1 OF THIS YEAR.

THE COMPARATIVE DATA FOR KY TECH IS SO SKETCHY THAT IT'S DIFFICULT TO DETERMINE IF IT NEEDS MORE OPERATING MONEY BUT IT CERTAINLY NEEDS MORE EQUIPMENT SO I'LL RECOMMEND THE $3 MILLION BE ADDED TO THE BUDGET TO MODERNIZE THEIR TECHNOLOGY.

AS A DOWNPAYMENT ON A SERIES OF STRATEGIC INVESTMENT AND INCENTIVE FUNDS TO LEAD OUR POSTSECONDARY EDUCATION SYSTEM INTO THE 21ST CENTURY, $12 MILLION WILL BE ALLOCATED TO OUR HIGHEST PRIORITY INITIATIVES.

ONE THING WE MUST HAVE IF WE'RE TO BECOME THE KIND OF STATE I ENVISION, IS A TOP FLIGHT, NATIONALLY RECOGNIZED RESEARCH UNIVERSITY. IT MUST BE A UNIVERSITY CAPABLE OF ATTRACTING THE GREATEST SCHOLARS, STUDENTS, ADMINISTRATORS, AND RESEARCH GRANTS TO KENTUCKY. WE MUST HAVE THAT KIND OF CONCENTRATION OF INTELLECTUAL CAPITAL STEWING IN A GREAT CAULDRON OF RESEARCH, GENERATING THE NEW IDEAS OF THE FUTURE, THE ENTREPRENEURSHIP OF A DYNAMIC ECONOMY, THE INNOVATION THAT LEADS TO PROSPERITY.

THE UNIVERSITY OF KENTUCKY MUST BE A NATIONALLY RECOGNIZED COMPREHENSIVE RESEARCH INSTITUTION AND THE UNIVERSITY OF LOUISVILLE MUST ACHIEVE NATIONAL PROMINENCE IN SELECTED FIELDS APPROPRIATE FOR A METROPOLITAN RESEARCH UNIVERSITY. IT WILL NOT BE EASY, IT WILL NOT BE QUICK, IT WILL NOT BE CHEAP, BUT IT MUST BE DONE IF WE ARE TO REACH OUR DESTINY. I AM PROPOSING A DOWNPAYMENT ON EXCELLENCE IN THE AMOUNT OF $6 MILLION.

ABOUT A YEAR AGO, JUDI AND I HOSTED EIGHT PRESIDENTIAL SCHOLARS IN THE GOVERNOR'S MANSION. THESE WERE EIGHT OF THE MOST BRILLIANT STUDENTS TO COME OUT OF KENTUCKY'S HIGH SCHOOLS. THE SAD PART OF THIS EVENT WAS THAT NOT ONE OF THEM HAD CHOSEN A KENTUCKY SCHOOL TO ATTEND. THIS EXPERIENCE SPURRED ME ON TO PURSUE THIS REFORM INITIATIVE BECAUSE I KNEW THAT WE COULD NEVER BE ALL THAT WE COULD BE UNLESS WE COULD KEEP OUR BEST AND BRIGHTEST. WE NEED TO BE THE PLACE THAT SCHOLARS SEEK OUT. THE UNIVERSITY OF KENTUCKY NEEDS TO BE KNOWN FOR GREAT BASKETBALL AND GREAT SCHOLARSHIP. I AM DETERMINED THAT TWENTY YEARS FROM NOW THE UNIVERSITY OF KENTUCKY WILL BE RECOGNIZED THROUGHOUT THE NATION AS ONE OF THE TOP TWENTY PUBLIC UNIVERSITIES IN AMERICA.

THE UNIVERSITY OF LOUISVILLE MUST ALSO BE A GENERATOR OF INTELLECTUAL ENERGY, CONCENTRATING ON THOSE AREAS UNIQUE TO THE MISSION OF AN URBAN UNIVERSITY AND VITAL TO THE ECONOMY OF LOUISVILLE, JEFFERSON COUNTY AND KENTUCKY.

OUR REGIONAL UNIVERSITIES MUST CONTINUE TO PROVIDE QUALITY EDUCATION NEEDED BY THE PEOPLE AND THE ECONOMY OF KENTUCKY. USING THE VIRTUAL UNIVERSITY, EACH REGIONAL SHOULD REDUCE THE NUMBER OF DEGREES OFFERED ON CAMPUS AND USE THE RESOURCES AND TALENTS OF THE OTHER REGIONALS TO PROVIDE A BROAD-BASED ACADEMIC SELECTION TO THE REGION IT SERVES.

THESE UNIVERSITIES SHOULD ALSO CONCENTRATE ON EXCELLENCE AND SHOULD BE ENCOURAGED TO DEVELOP A NATIONAL REPUTATION FOR EXCELLENCE IN AT LEAST ONE AREA OF SCHOLARLY PURSUIT. A TOTAL OF $6 MILLION WILL BE AVAILABLE FOR THE REGIONAL UNIVERSITIES IN THEIR PURSUIT OF EXCELLENCE DURING 1998.

IN FUTURE YEARS WE WILL HAVE A LONGER-TERM FINANCING STRATEGY FOR ALLOCATION OF NEW FUNDS CONSISTENT WITH THE STRATEGIC AGENDA. THE COUNCIL ON POSTSECONDARY EDUCATION WILL DETERMINE THE MATCHING REQUIREMENTS AND INTERNAL REALLOCATION REQUIREMENTS FOR INSTITUTIONS TO QUALIFY FOR THESE FUNDS.

I WANT TO PAUSE TO SAY THAT OUR PRIVATE, NOT-FOR PROFIT, AND OUR PROPRIETARY UNIVERSITIES, COLLEGES AND SCHOOLS ARE AN IMPORTANT PART OF OUR POSTSECONDARY EDUCATION SYSTEM. I HAVE NOT ADDRESSED THAT SUBJECT BECAUSE THE MOST WE CAN DO TO HELP THESE INSTITUTIONS IS TO INCREASE SCHOLARSHIP FUNDS FOR STUDENTS AND GIVE THE STUDENTS THE FREEDOM TO GO WHERE THEY WISH. I ALSO HAVE NOT ADDRESSED STUDENT AID, ANOTHER AREA IN WHICH WE NEED TO INVEST. IT IS A TRAGEDY WHEN ANY BRILLIANT KENTUCKY CITIZEN IS DEPRIVED OF THE OPPORTUNITY TO REALIZE THEIR MAXIMUM POTENTIAL BECAUSE OF THE LACK OF ADEQUATE FINANCIAL RESOURCES. WE NEED TO ADDRESS THESE NEEDS BUT I SUGGEST THAT NEEDS TO BE DONE AT A LATER TIME. OUR PRIVATE INSTITUTIONS ARE IMPORTANT AND THE COUNCIL NEEDS TO ENSURE MAXIMUM COOPERATION AND DIALOGUE BETWEEN THEM AND OUR PUBLIC INSTITUTIONS AND THE COUNCIL SHOULD PREVENT THE PUBLIC SCHOOLS FROM DUPLICATING THE EFFORTS OF THE PRIVATE SCHOOLS IF THAT DUPLICATION WOULD THREATEN THE VIABILITY OF THE PRIVATE SCHOOL.

AND SO, THESE ARE THE CHANGES I AM RECOMMENDING IN MY PLAN. A FEW OF THESE CHANGES WILL UNDOUBTEDLY BE CONTROVERSIAL, BUT MANY ARE SO PLAINLY APPARENT THAT YOU MAY WONDER WHY WE HAVE NOT ACTED BEFORE NOW. REGARDLESS OF THE ANSWER TO THAT QUESTION, WE CANNOT AFFORD TO MISS THIS HISTORIC OPPORTUNITY.

WE CAN NO LONGER AFFORD TO SIT IDLY BY AS OUR BEST AND BRIGHTEST STUDENTS CONTINUE THEIR YEARLY EXODUS TO INSTITUTIONS IN OTHER STATES THAT OFFER MORE HIGHLY RANKED PROGRAMS AND OPPORTUNITIES.

WE CAN NO LONGER AFFORD TO FOREGO THE RESEARCH AND DEVELOPMENT DOLLARS THAT COME FROM GRANTS WHICH FLOW INTO RECOGNIZED RESEARCH INSTITUTIONS --- INSTITUTIONS WHICH ATTRACT BUSINESS, INDUSTRY AND TALENT FROM OTHER REGIONS.

WE CAN NO LONGER AFFORD A SYSTEM WHICH OUR STATE'S EMPLOYERS KEEP TELLING US FAILS TO PROVIDE PROPERLY TRAINED WORKERS WITH SKILLS TO SURVIVE IN THE NEW AND RAPIDLY CHANGING MODERN ECONOMY.

NO, MY FELLOW KENTUCKIANS, WE CAN NO LONGER SETTLE FOR ANYTHING LESS THAN EXCELLENCE. INSTEAD, I ASK YOU TO ENVISION WITH ME A KENTUCKY WHICH TREATS ITS STUDENTS, WORKERS AND EMPLOYERS BETTER.

MY PLAN WILL PROVIDE THE ADULT POPULATION OF THE STATE WITH EASY ACCESS TO A SYSTEM WHERE THEY CAN RECEIVE TECHNICAL EDUCATION AND SKILLS TRAINING THAT WILL ALLOW THEM TO EXCEL IN NEW JOB AREAS.

IT WILL PROVIDE THE TYPICAL COMMUNITY COLLEGE STUDENT WITH A MUCH EASIER PATH TO AN ASSOCIATE DEGREE WITHOUT AN INCREASE IN TUITION. THERE CAN BE LITTLE DEBATE THAT UNDER MY PLAN, COMMUNITY COLLEGE STUDENTS WILL FIND IT EASIER TO TRANSFER CREDITS AMONG INSTITUTIONS, UTILIZE ADDITIONAL RESOURCES, AND DEVELOP SKILLS NECESSARY FOR THEIR SUCCESS IN THE FUTURE.

MY PLAN WILL PROVIDE BUSINESSES IN THE STATE WITH A BETTER WORKFORCE - ONE MORE EASILY ADAPTABLE TO THE CHANGING NEEDS OF OUR ECONOMY.

AND MY PLAN WILL HELP TO ENSURE THAT GIFTED YOUNG PEOPLE HAVE PRE-EMINENT RESEARCH INSTITUTIONS AND CENTERS OF EXCELLENCE NEARBY SO THAT WE NO LONGER EXPORT OUR BEST AND BRIGHTEST.

MY FELLOW KENTUCKIANS - LET ME REPEAT. I'M NOT ASKING THE LEGISLATURE OF KENTUCKY TO MERELY PASS A BILL. I ASK THE PEOPLE OF KENTUCKY TO MAKE A COMMITMENT - A LONG TERM COMMITMENT TO EXCELLENCE IN POSTSECONDARY EDUCATION NOW AND IN THE FUTURE. THIS IS NOT A ONE-TIME EVENT AFTER WHICH WE CAN MOVE ON TO ANOTHER TOPIC, BUT RATHER A COMMITMENT TO IMPROVEMENT WHICH WILL CONTINUE LONG AFTER I LEAVE THIS OFFICE.

SO I ASK YOU TO EXAMINE THIS ISSUE AND EVALUATE THE ARGUMENTS NOT ON THE BASIS OF PAROCHIAL POLITICS, BUT ON THE MERITS OF MY PLAN FOR YOUR REGION, YOUR STATE AND ITS STUDENTS. EXAMINE THE ISSUE NOT FROM THE PERSPECTIVE OF WHETHER WE ARE ADEQUATE NOW, BUT WHETHER WE CAN DO BETTER. IF YOU STUDY THIS ISSUE AS I HAVE, I BELIEVE YOU WILL CONCLUDE WE CAN.

TO SUCCEED THIS REFORM MUST HAVE LEADERSHIP. LEADERSHIP ON AN INSTITUTIONAL LEVEL, LEADERSHIP FROM THE COUNCIL, LEADERSHIP FROM THE LEGISLATURE, AND MOST OF ALL, LEADERSHIP FROM THE GOVERNOR'S OFFICE, NOW AND IN THE FUTURE.

THE MEASURES I PROPOSE ARE NOT DETAILED, THEY AREN'T TOO NUMEROUS, THEY ARE FUNDAMENTAL SYSTEMIC CHANGE. BUT I ASK NOT FOR JUST A CHANGE IN THE LAW. I ASK FOR A CHANGE IN ATTITUDE. I ASK FOR COOPERATION. I ASK FOR COURAGE. I ASK FOR VISION. I ASK FOR COMMITMENT. AND I ASK IT ALL ON BEHALF OF KENTUCKY'S CHILDREN AND HER FUTURE.

THANK YOU. AND NOW I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.