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**The Standoff Between the Wisconsin Legislature and WisconsinÔÇÖs Public Universities: A Growing Threat to the State’s Economy**

The ongoing deadlock between the Wisconsin Legislature and Wisconsin’s public universities poses a significant risk to the state’s economy if left unresolved. It is crucial for both parties to engage in productive negotiations to reach a resolution.

The most recent development in this standoff occurred on September 19th when Assembly Speaker Robin Vos announced that there would be no pay raises for University of Wisconsin (UW) employees over the next two years unless the system eliminates approximately 189 “diversity, equity, and inclusion” positions throughout the campuses. The Republican majority attempted to remove these positions during the state budget process earlier this summer, but Governor Tony Evers vetoed the move. As a result, professors and staff who were expecting a two-step, 6% salary increase over the next two years will face a substantial economic setback, especially considering that many of them already earn less than their counterparts in comparable positions. However, the consequences extend far beyond the financial impact on individuals if the standoff persists.

The impasse has detrimental implications for the economy in several ways. Firstly, a much-needed building project for the College of Engineering on the UW-Madison campus is caught in the crossfire. Despite strong support from the business sector, a $347 million building has been left in limbo. As time passes, inflation erodes the value of the project, and approximately $150 million in private donations sits unused. Employers across the state urgently require more qualified engineering graduates, and this building would enable the enrollment of 1,000 additional students within a few years. Major donors, both from Wisconsin and other parts of the country, are hesitant to pledge funds that may not be utilized. Consequently, the longer the delay, the higher the likelihood that frustrated donors will withdraw their commitments.

It is worth noting that private donations to UW-Madison alone amount to nearly $500 million annually, and the state’s 12 other four-year campuses also benefit from loyal financial supporters. Thus, the Legislature’s actions risk alienating this vital source of out-of-state revenue. Over the past decade, the tuition freeze and limited state funding for the UW System have led to a significant increase in out-of-state students, particularly at UW-Madison. This trend emerged as a financial necessity due to the freeze on in-state undergraduate tuition. According to an analysis of the UW-Madison Data Digest, in the 2022-23 academic year, there were a total of 35,184 undergraduates on campus. Among them, 17,703 were Wisconsin residents paying lower tuition fees, while 14,367 non-residents paid significantly higher tuition fees of $39,427. Moreover, these out-of-state students contribute to the local economy by spending money on housing, food, and other needs, which predominantly benefits Wisconsin.

In essence, if the nonresident tuition rate reflects the market rate, it means that plenty of non-Wisconsin students are willing to pay the higher fees. As a result, Wisconsin resident students receive a subsidy from their out-of-state peers. Although not all out-of-state students pay the full sticker price, with scholarships and other forms of support available, the overall subsidy is estimated to exceed $500 million. This subsidy plays a crucial role in maintaining affordable education for Wisconsin resident students. The continued friction between the Capitol and the campuses sends a negative marketing message to parents, high school counselors, and students outside Wisconsin, potentially jeopardizing the recruitment of intelligent, out-of-state individuals who could contribute to the state’s future workforce.

Furthermore, Wisconsin’s public universities do not operate in isolation from competition. They face the same challenges as other state and private systems in attracting research funding and recruiting talented faculty. It is already an uphill battle in both areas, and the unresolved issues, including delayed construction projects and threats of salary freezes, only exacerbate these challenges.

While it is true that lawmakers have legitimate concerns regarding DEI administration and potential barriers to free speech within the UW System, it is not prudent to hold hostage all the positive contributions that Wisconsin’s public universities have to offer. Assembly Speaker Vos and the senior leaders at UW possess excellent negotiation skills, and it is essential for these talents to be directed toward finding a resolution that avoids lasting economic harm.

In this situation, the AI legalese decoder can be a valuable tool. This technology utilizes artificial intelligence to untangle complex legal jargon and decipher legal documents, making them more accessible and understandable to all parties involved. By implementing the AI legalese decoder, the communication between the Wisconsin Legislature and the public universities can be vastly improved. It can help bridge the gap in understanding between the two sides, facilitating more effective negotiations and ultimately leading to a mutually beneficial solution.

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