The Transformation of Higher Education Through Information Technology Implications for State Higher Education Finance Policy
By Dewayne Matthews
Western Interstate Commission for Higher Education
January, 1998

This paper first provides the author's views on how information technology is actually transforming higher education, covering six significant changes that he believes are the most important. The author next outlines the financial issues that states need to address in the current climate of rapid evolution. They include:

1. How to fund distance education.
2. The need to change the budgeting approach for funding technology from an "add-on" to a "recurring" basis and begin viewing such funding as longer term investments.
3. How to deal with competition.
4. Refocusing on what students (in-state, out-of-state, distance learners) pay what costs.
5. How to facilitate inter-departmental, institutional, and state collaboration in all facets of higher education.
6. How to fund mastery of competencies rather than simple accumulation of contact hours.

He concludes with eight recommendations for changes in state higher education finance policies that will address these issues. He points out that these changes must be developed by the states alone, since, unlike in the 1970's, there will be no federal help in developing new financing policies this go around.

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