by Dennis Treacy, Nancy Agee, George Martin & Todd Stottlemyer
“Gentlemen, we have run out of money. It is time to start thinking.”
That sentiment, attributed to Nobel laureate Ernest Rutherford, contains an important insight that aligns with our own business and professional experience. Times of economic stress are moments of opportunity, forcing us to challenge the status quo, set priorities and double down on investments that will have the most lasting positive impact.
As Virginians head to the polls again this fall, leaders in both parties are signaling that some belt-tightening lies ahead for state government. This will require crucial choices. We believe that — second only to the safety and health of Virginians — our elected officials should make investing in talent our top priority.
This past week, the Virginia Business Higher Education Council, which we lead, issued our Virginia Higher Education Impact Agenda outlining the investments needed to secure our commonwealth’s place as the Top State for Talent.
Why is that distinction so important? There are several reasons, but here are three.
First, talent is Virginia’s chief competitive advantage, our greatest asset in attracting job-creating investment and producing the economic and revenue growth needed to address every other priority.
In giving us high marks as a business-friendly state, CNBC again this year cited our educational system as the thing that sets Virginia apart. Every public dollar invested in our higher education system generates more than $25 in economic impact and returns nearly $2 in revenue back to the state treasury. Unlike other programs, our state’s investment in higher education more than pays for itself.
Second, investments in talent are Virginians’ bridge to opportunity, providing the education and training that puts young Virginians and career-changing adults on pathways to great jobs and fulfilling careers without leaving our state.
Nationwide studies show that college graduates with bachelor’s degrees on average earn twice as much as nongraduates. Many who gain associate degrees and in-demand industry credentials today likewise are landing well-paying jobs. The results in Virginia are especially strong. Focusing on bottom-line factors such as graduation rates and future earnings, the investment website SmartAsset ranked Virginia’s higher education system No. 1 or No. 2 in the country for seven straight years.
Third, talent is Virginia’s hope for the future, the catalyst for innovation and resilience, problem-solving leadership, and equipping citizens to give back to their communities, commonwealth, and country.
University-based research and university-affiliated medical centers together generate more than $5 billion annually in economic activity, produce more than $450 million in state revenue, cultivate novel discoveries, and create new businesses. Colleges and universities are major employers and drivers of economic growth in every region of our state.
As our polling research shows, we Virginians are rightly proud that our higher education system is ranked at the very top nationally while also being one of the most cost-efficient. But we know this is no time to rest on our laurels. The competition is fierce, and rankings are fleeting.
Already, our neighboring state competitors are outpacing us, investing considerably more in higher education per student than we invest here in Virginia. Tennessee currently invests 43% more; North Carolina invests 32% more. In fact, Virginia’s per-student investment currently ranks 28th in the country, below the national average.
Our newly released Virginia Higher Education Impact Agenda identifies the higher education investments that will have the greatest positive impact for Virginia and Virginians in the months and years ahead. Our recommendations fall in four categories:
Talent pathways and internships — Providing all undergraduate students with paid internships that provide workplace experience and, whenever possible, connect them to Virginia employers for full-time employment after graduation.
Affordability and ROI — Improving college affordability so that every student has access to high-quality degree and credential programs that lead to in-demand jobs and strong returns on the educational investment.
Innovation and entrepreneurship — Supporting leading-edge research, converting discoveries into business start-ups, and investing in innovative projects with strong regional economic impact.
Solving problems and strengthening communities — Preparing the next generation of contributing citizens and problem-solving leaders who can bridge differences and make our communities, commonwealth and country stronger.
As we promote these priorities for the future, we are deeply grateful to Virginia’s elected leaders for what they have done in the past. Their bipartisan support in recent years has strengthened our higher education institutions, provided much-needed operating and capital support and helped make college more affordable for thousands of Virginians.
On Tuesday, both candidates for governor will outline their higher education priorities in appearances at the annual Education and Workforce Conference in Richmond. We are grateful for their attendance and look forward to hearing their plans.
Our business-education partnership, along with the thousands of grassroots Virginians who make up our Growth4VA coalition, stands ready to work with forward-looking leaders in both parties to ensure Virginia remains the Top State for Talent. The concrete ideas in our Impact Agenda are the right place to start.
To learn more about these priorities and how you can help, visit growth4va.com.