[ Golden Gater Online - November 13, 1997 ]
Michele Thompson
Staff writer
The largest example of a growing trend toward funding public education projects by teaming up with private corporations has come to California State University and brought with it concerns for the future.
The CSU is about to embark on a joint venture with four major private corporations on an unprecedented scale. The goal of this venture is to provide the CSU system with state-of-the-art telecommunications and make the private corporations a lot of money.
Last year, CSU Chancellor Barry Munitz called together campus presidents to address what he called a serious problem: The need for updated technology systemwide and the huge expense it would cost. In the face of dwindling public funding for public education, CSU did what so many other universities across the nation are doing. It turned to the private sector.
The CSU system is planning to form a corporate partnership with Microsoft, Hughes Electronics, Fujitsu and GTE. The initial contract, originally thought to be signed in mid-December, should be signed sometime in January, according to Don Scoble, vice president of business and finance at SF State. With a $300 million start-up cost, the deal is the largest partnership ever between public education and private industry. Called the California Education Initiative (CETI), it promises to prepare the universities systemwide for the high-tech 21st century.
The CETI partnership will provide a state-of-the-art infrastructure "anytime, anywhere" Internet access. That means no more busy signals for students. However, it may cost a monthly fee.
The project also promises to provide for student internships, opportunities to create on-line classes, the latest software Microsoft can provide, and computer training for the faculty and staff at little or no cost to the state budget.
Of course, the reason for any business partnership is money. A separate corporation, not yet named, will be established to be in charge of daily services. But more importantly, this corporation will also sell its wares outside the campus community to the general public.
The financing for this deal comes from different sources, some private money, some public money and a portion from private loans to the corporations. Critics worry that the deal lets the state shrug its responsibilities to education.
But for now at least, the educational budget will stay the same, Scoble said. "We can provide the infrastructure at no net cost to the CSU," he said.
Everything is not as perfect as it may seem. The idea of forming an alliance with marquee Fortune 500 companies has raised concerns among faculty, staff and students. Academic senates at nearly all 23 CSU want it postponed until further review. And nearby, San Jose State's academic senate and Associated Students have been equally reticent.
"Frankly, there's been a great deal of questions and concerns on this campus," said Sylvia Hutchinson, public affairs director at San Jose State.
Major resistance to this new partnership comes from the lack of opportunity for faculty, staff and student input in negotiations.
"The ultimate concern comes down to faculty governance within the university," said Gerald Eisman, computer science department chair. "How much are we saying in the direction of the university?"
Part of the reason that faculty, staff and students have not had much of an opportunity to contribute, say the partnership's negotiators, is that very little was known about the deal until last month, when a public forum was held to discuss the magnitude and scope of this public/private partnership.
"Even though it was mentioned to us long ago, no one knew the magnitude of this project until a month ago," Eisman said.
Some students and faculty suspect that the university and the CSU trustees were being deceptive when they downplayed the magnitude of this joint venture over the years, and particularly when they voted on important aspects of it during summer session.
In addition, faculty and staff are concerned about ownership of course curriculum and job security for staffers, like computer technicians who could be replaced by contract workers.
Who owns a professor's ideas, or intellectual property rights, is a central issue. Currently, the faculty has a contract with the university in which the university has a right to use materials created by faculty members whenever they use university equipment. The intention to use campus computers and the new telecommunications system set up by CETI for educational purposes brings a new dimension to this problem.
For instance, if a professor's textbook was published on-line, the unanswered question is who retains the rights to it?
"Let's say you develop an on-line course and it starts making money, the university can claim ownership," Eisman said.
In fact, preliminary contract negotiations dealt with CETI's right to market what different faculty developed. However, strong objection to loss of faculty intellectual property rights may have prevented it from being part of the deal.
"Don Scoble said that they are going to take that part out of the initial contract," said Eisman, "The truth is the reason they are willing to take it out is that it is not a major part of the deal (the profits)."
Where the real money maker seems to be is in the telephone business.
"You have to look at it (CETI) as basically the creation of a telecommunications company," said Eisman. "It's what you make your money at."
A communications company with a hub, centered in each campus, will be in every major metropolitan center in California.
"I was told that the pipe is going to be as large as possible because they are going to sell off communication services," said Eisman, adding that it's not clear yet whether it is good or evil for CSU to be involved in the telephone business.
[ Golden Gater - November 13, 1997 ]