Robert Litan: Legislative micromanagement will kill innovation at state universities

Ask creative or innovative people what one thing most frustrates them, and the likely answer they will give is being micromanaged. “Just give me a budget, of money or time, and then let me do my thing, and judge me by results” is what most employees will tell their bosses, and they’re right.

That commonsense notion, followed by all good organizations, whether in the private sector or government, is certainly not reflected in the latest version of House Bill 2703 now being considered in the Kansas Legislature.

The proposal, House Substitute for Senate Bill 249, would dramatically lower the dollar threshold for prior legislative approval of “state agency” expenditures, from the current $25 million to just $1 million for most expenses, or $2 million for maintenance and construction of new facilities. The bill conveniently exempts transportation spending from this heightened level of micromanagement. But it fully captures some of the most innovative state agency activities in our state, namely the construction of new facilities at and the operation of our many state colleges and universities.

This not only makes no sense, but if the proposal is enacted, it could threaten one of the most exciting ventures this city has seen in decades: the near doubling of the footprint of Wichita State University to make room for the wide array of innovative private partnerships that will provide internships, on-the-job training and jobs, here or elsewhere, for WSU graduates.

Already the university has signed deals with Airbus and Dassault to locate on campus, and 10 others. It is also poised to bring one or more hotels and other service providers that will greatly enhance the campus experience of students, faculty and those who work at the university partners.

Instead of congratulating the university for attracting private-sector dollars, jobs and skill training, legislators who support the latest proposal would punish the very kind of entrepreneurship that makes any organization great. And the surest way to do that is to take an activity – such as building and operating WSU’s Innovation Campus – that requires decision-making at the speed of private business and subjecting it instead to decision-making at legislative speed.

Economic researchers have consistently found the presence of young college graduates to be the most important predictor of a region’s current and future economic success. Killing or, at best, stalling the growth of the Innovation Campus runs directly contrary to this research. It will prevent the university from retaining Wichita-area talent and attracting out-of-state students who are needed to boost Wichita’s economic fortunes in this century, when industry-relevant skills training is more important than ever.

Wichita is not only the potential victim. Residents of Emporia, Hays, Manhattan, Pittsburg and Lawrence would be put at the same disadvantage if the legislation becomes law. Rural areas, which also benefit from the relatively low-cost college-level training that state universities provide, would also be penalized.

Kansans who don’t want this future for our state can tell their legislative representatives that the micromanagement they don’t want for themselves in their daily lives should not be replicated at the state level.

This story was originally published March 17, 2016 at 7:01 PM with the headline "Robert Litan: Legislative micromanagement will kill innovation at state universities."