While proud of the accomplishments the University System of Georgia has made under his tenure, Chancellor Erroll Davis warned of future challenges because of the weak economy and rapid enrollment growth.
Davis spoke of higher education being at a crossroads during his final address to the State Board of Regents as chancellor. He will retire when his contract expires the end of the month.
Hired in 2006, Davis' tenure is marked with record growth and steep budget cuts -- challenges his successor, Hank Huckaby, will face as well.
The system enrolled about 260,000 students when Davis started and will have about 320,000 students this fall. Meanwhile, the system has lost about $1 billion in state funding in recent years because of the recession. In response the system reduced class offerings, relied more on part-time professors and increased the tuition and fees charged students.
"Even as the recovery continues, however, I do not sense that the historic way in which we have approached funding for public higher education can continue or will continue," Davis said.
He worried about quality education becoming too costly and turning into a luxury for a few. He urged the regents to keep college affordable and accessible while maintaining high quality.
"Do we really want a two-tiered higher education system in this country where first-rate education is associated with private colleges and universities and minimally funded public institutions are seen as second-rate?" he said. "Do we really want a situation to exist where those with money have access to that first-rate education and those without the economic means or the ability to tap into scholarships are shut out?"
Davis encouraged the regents to continue to be innovative and give presidents and colleges the freedom to explore new solutions.
Huckaby, who begins July 1, has also said that the system can't go back to doing business as usual and must have a plan in place for when state funding returns.
Huckaby is a political insider with more than 40 years in public service. He was one of Gov. Nathan Deal's floor leaders and has worked at the University of Georgia, Georgia State University and Gordon College.
Davis is the first African-American and the first person from outside academia to hold the job as a permanent position. The former engineer and CEO said his time as chancellor was the "singular most challenging position I've ever held."
Davis admitted he can't claim victory for every initiative, but said he was proud of the system-wide effort to graduate more teachers in the so-called STEM fields of science, technology, engineering and math. The number of students majoring in these teaching areas increased from 12,972 in 2007 to 16,559 in 2010, he said.
The system is also graduating a more diverse teaching workforce. Minority teaching graduates increased from 570 candidates in 2005 to 1018 in 2010, he said.
"All of this focus and improvement in teacher preparation and especially the STEM fields is happening precisely because of the clear signals sent by this board and because we are working better as system to achieve your goals," he said.
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