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First, the proportion of U.S. citizens earning Ph.D. degrees has declined for more than two decades. As you probably know, now less than one-half of all graduating engineers are U.S. citizens.

There is a continued underrepresentation of women in some disciplines, sometimes as low as one-third of their proportion the population.

There is a worsening underrepresentation of minorities in some disciplines, often as low as 10 percent of their proportion in the population.

There is an aging population of graduate students. At my institution, the average graduate student is 35 years old.

There is an increase in the demand for new faculty, especially in the humanities and social sciences, and there is an increase in demand for math science and engineering recipients, and shortages in these fields are already occurring.

Action taken by the Congress in providing fellowships and traineeships under titles II, VI, and IX will certainly reduce these projected shortages. The programs attract talented students into graduate programs, they increase retention rates, they provide support for older students, and they reduce time to degree. These programs also support funds for university research libraries and graduate education in international studies.

Mr. Chairman, I was pleased to go by the news stand this morning and pick up today's issue of "U.S. News & World Report", which focuses on America's best graduate schools. One of the programs listed in here is the University of South Carolina, which for the second year in a row is named the No. 1 international business school in America. I am pleased to say that we are funded by one of the title IX programs in international business.

Mr. Chairman, we have presented written testimony which summarizes our request for each of these areas, and I will not go over each one of those. However, I will say that the institutions which I represent generally support the budget proposals submitted to the Congress by President Bush for fiscal year 1992. We wish to remind you that there is no fat in this budget for graduate programs.

For example, the fiscal year 1992 budget request for math, science, and engineering education contains a request in precollege education with an increase of 28 percent, which we fully support. It requests undergraduate increases of 14 percent, and it requests graduate increases of only 2 percent.

PREPARED STATEMENT

To quote the President's science adviser, Allan Bromley, it is important that in our efforts to correct a dismaying series of problems at the precollege level we not lose sight of the importance of maintaining our world leadership in graduate education.

Mr. Chairman, we appreciate what you have done for us in the past, and we hope you can support us again.

[The statement follows:]

STATEMENT OF PAUL G. HURAY, SENIOR VICE PRESIDENT FOR Research UNIVERSITY OF SOUTH Carolina

INTRODUCTION

Chairman Harkin and members of the subcommittee, my name is Paul Huray, and I am Senior Vice President for Research at The University of South Carolina. I am presenting testimony today on behalf of the Association of American Universities, the Association of Graduate Schools, the Council of Graduate Schools and the National Association of State Universities and Land-Grant Colleges.

Mr. Chairman, the nation's programs of graduate education produced approximately 34,000 Ph.D.'s and 309,000 master's degrees in 1989. The talented students who complete these programs are a rich resource for the nation. Doctoral recipients become the scientists, teachers, and scholars responsible for the discovery and dissemination of new knowledge and the preservation and interpretation of our intellectual and cultural heritage. Master's degree recipients are also prepared to pursue Ph.D.'s or professional careers, but more often than not, they are educated to begin state-of-the-art careers in industry which assists our nation's performance in global competition. Sometimes they provide the human resources for our public service sector which improves our health or the quality of our life.

In an analysis of the academic labor market for arts and sciences disciplines, William Bowen and Julie Ann Sosa have projected that, absent intervention, current trends in Ph.D. supply and demand will result in substantial shortages of Ph.D.'s beginning in just a few years and extending into the next century. According to their projections, between 1997 and 2002 there will be only eight candidates for every ten faculty vacancies across all arts and sciences disciplines, and over that same period, only seven candidates will be available for every ten vacancies in the humanities and social sciences. Shortages in high-demand fields of computer science, engineering, and mathematics are already occurring.2 These shortages will affect industry as well, which has become increasingly dependent on personnel with advanced training to conduct its R&D programs.

The divergence of supply and demand in graduate education is driven by a twodecade decline in the proportion of U.S. citizens earning Ph.D.'s; a continued underrepresentation of minorities and women, an increase in demand for new faculty, particularly in the humanities and social sciences; an aging undergraduate student pool; and an increased demand for natural science and engineering master's and Ph.D. recipients in government, industry and academe.

Action taken by practitioners of graduate education and of the U.S. Congress in providing fellowships and traineeships will certainly reduce those projected shortages. Fellowships and traineeships are a proven means to attract talented students into graduate programs, increase retention rates, provide support for older students, and reduce time-to-degree. They play an effective role in a national effort to increase the supply of master's and Ph.D. recipients. The Title IX programs of the Department of Education play a key role in that effort.

The Department also administers the major federal program supporting research and graduate training in international studies, providing the knowledge and personnel essential to our capacity to understand and compete in a world that is changing at an extraordinarily rapid rate. In addition, the Department provides important support for research libraries, which are the nation's shared information resource centers supporting research and graduate education in all disciplines.

Funding for Department of Education programs will play an important role in the support of teaching, research, and scholarship and the expansion of individual opportunity in the followings ways:

INCREASING PARTICIPATION OF UNDERREPRESENTED GROUPS IN GRADUATE EDUCATION

African Americans, Hispanics, and Native Americans remain severely underrepresented in virtually all fields of graduate education, in some disciplines by a factor of ten with respect to their proportion of the population. Despite their preponderance in undergraduate ranks and their recent gains, women remain underrepresented in many graduate disciplines, particularly in science and engineering fields, often by a factor of three or four. A continuing inability to recruit larger numbers of students from these groups will shut off the educational pipeline for an expanding proportion of American youth and increase our difficulty in meet

1Bowen, William G. and Julie Ann Sosa, Prospects for Faculty in the Arts and Sciences, (Princeton, NJ: Princeton University Press, 1989).

2 El-Khawas, Elaine, Campus Trends, 1989, American Council on Education-Higher Education Panel Reports, No. 78 (July, 1989).

ing national needs for human capital. To counter these trends the Department of Education provides:

Grants to Institutions to Encourage Minority Participation in Graduate Education (Title IX-A a which provides summer research internships and additional educational enrichment programs for talented minority undergraduates, to interest them in and prepare them for graduate study. We recommend $7.5 million for this program in fiscal year 1992, which will permit funding 100 grants.

Patricia Roberts Harris Graduate and Public Service Fellowships (Title IX-B) which provide fellowship support for postbaccalaureate study to students from groups underrepresented in graduate and professional education. In combination with the Part A minority undergraduate internship program, the Harris fellowships provide the Department with an extremely effective approach to increasing the enrollment of students who are underrepresented in graduate education. We recommend $24 million for the Harris Graduate Fellowships, which will support 1,500 fellowships, slightly more than the previous high of 1,400 funded in fiscal year 1986. We also recommend $3.5 million for the Harris Public Service Fellowships, which will provide a modest increase above current funding of $3.2 million.

INCREASING U.S. DOCTORAL RECIPIENTS FOR CAREERS IN TEACHING AND RESEARCH

Federally funded fellowships and traineeships have declined from a peak of 60,000 in 1969 to fewer than 14,000 today. The proportion of U.S. citizens earning Ph.D.'s has declined for more than two decades reflecting, at least in part, the declining availability of financial support. Following the elimination of the National Defense and Education Act (NDEA) in the early 1970's the federal government provided no fellowship support focused on graduate study in the arts and humanities until the Javits fellowship program was first funded in fiscal year 1985. Studies of Fortune 500 CEO back grounds have demonstrated the value of investing in liberal arts education by showing their disproportionate representation among the ranks of our corporate leaders. Together, the Javits and National Need programs provide a balanced investment in human resources through critical support for doctoral study across all arts and sciences disciplines.

The Jacob K. Javits Fellows Program (Title IX-C) remains the only federally funded program a that has the express purpose of supporting graduate study in the arts and the humanities, and is one of the few programs providing a small amount of support in the social sciences. This year, 100 new fellows only one out 15 applicants are being supported. We recommend $9.5 million for the Javits program, which will provide sufficient funds to support a new class of 250 fellows in addition to supporting continuing fellowships.

Graduate Assistance in Areas of National Need (Title IX-D) is designed to increase the number of this country's talented college graduates who elect to pursue careers in teaching and research in critical fields, particularly in science and technology education which we believe to be essential to the nation's competitive stature. We recommend $30 million for the National Need traineeship program. This will provide $10 million for a new competition, down substantially from this year's competition of just under $17 million but sufficient to expand substantially university doctoral programs in critical areas.

STRENGTHENING THE NATION'S CAPACITY IN INTERNATIONAL EDUCATION

Title VI International Studies programs and Fulbright-Hays programs administered by the Department of Education provide the talent and knowledge base needed by industry, by government, and by our citizens to operate effectively in an increasingly interconnected global environment. The Department's National Resource Centers (NRCs) are the country's major resource for advanced instruction in foreign languages and for the training of area studies specialists who are the nation's experts on the customs and cultures of other countries of the world. The Department's international programs also include Foreign Language and Area Study (FLAS) scholarships which support the graduate study of language and area studies specialists; dissertation and faculty research overseas as well as langage training through group projects abroad; linkages between colleges and universities and businesses with overseas activities; International Business Centers providing graduate training both in language and area studies and in international business; and national language resource centers, which support research on language learning and the development of language pedagogy. South Carolina's high interdisciplinary Masters of International Business program is ranked first in the nation by its peer institutions, and our Center for International Business Education and Research has been successfully funded under this program. We recommend $55 million for Title VI and $7 million for Fulbright-Hays to support an expansion of critical programs and ini

tial funding of summer intensive language programs and foreign periodicals collections.

STRENGTHENING INFORMATION SYSTEMS FOR TEACHING AND RESEARCH

Title 11-5, II-C, and II-D assist libraries to expand their collections of scholarly works, facilitate access to unique collections through enhanced library resource sharing, develop new techniques for expanding information services, and train the librarians who must manage these rapidly growing and changing information systems. We recommend a maintenance of these programs through current services funding.

Mr. Chairman, lest you think I am pessimistic about the state of our graduate education programs, let me say that I believe that graduate education in U.S. Colleges and Universities remains the best in the world. But I would like to quote D. Allan Bromley, who in testimony of February 20, 1991 said, "It is important that in our efforts to correct a dismaying series of problems at the precollege level we not lose sight of the importance of maintaining our world leadership in graduate edu

cation.

Mr. Chairman, I want to close my testimony with a personal story. I was offered an NDEA fellowship in Physics at the University of Tennessee between 1964 and 1968 and that fellowship translated into a lifetime decision by me to become a scientist. I regularly meet colleagues who attest to a similar experience, and I will bet there are thousands like us. Such programs are today providing incentives for undergraduate students to produce a new generation of graduate degree recipients. Those graduates with advanced degrees will no doubt go on to build a stronger, healthier nation with an even higher quality of life. I urge you to support the Department of Education programs as recommended in this testimony in order to provide continued incentives for American students into the future.

Senator BURDICK. Thank you.

I have heard a great deal about the underrepresentation of minority scholars in doctoral programs today.

Do you have any specific statistics on the rate at which minorities are receiving Ph.D.'s, especially in the sciences?

Mr. HURAY. Yes, sir; I do. In the past decade the number of minorities who have received Ph.D. degrees in physics, chemistry, and engineering is approximately 9 percent of their proportion in the population. This means that we have a serious and worsening problem, that that proportion is decreasing, not increasing. Specifically, some of the programs we requested under title IX for increasing minority underrepresentation we believe can be significantly influence by this legislation.

STATEMENT OF HON. ARLEN SPECTER, U.S. SENATOR FROM PENN

SYLVANIA

Senator BURDICK. Senator Specter, do you have any questions? Senator SPECTER. Thank you, Mr. Chairman. I do not have questions, but I did want to come by and acknowledge the presence of a group of Pennsylvania witnesses, if I may.

We have with us today Mr. Robert Knutson, chairman and chief executive officer of the Education Management Corp. of Pittsburgh, who will be testifying on the very important subject of funding for student financial assistance programs.

We also have Dr. Thomas Detre, president of the University of Pittsburgh Medical Center, who will be testifying on issues relating to academic health centers, including medical education assistance. We have also Mr. and Mrs. Mumber, who will be testifying on behalf of a very important medical research program, along with Ms. Sharon Wanat of the board of trustees. Mr. and Mrs. Mumber regrettably recently lost a child because of the disease factor.

We will also be having a very distinguished Pennsylvanian, Ms. Lee Ducat, who is president of the National Disease Research Interchange, testifying on the subject of diabetes.

Mr. Brian Berman and Mr. Joseph Newhouse will be testifying on behalf of the National Gaucher Foundation. Mr. Berman and Mr. Newhouse are young boys who are afflicted with this disease. While it is not generally known, Mr. Chairman, I think it is always worthwhile to take just a moment to let people know that on any given day there are multiple hearings which are in process at any one time. I have come from Defense Appropriations and also Veterans and still have to attend the Judiciary Committee. Notwithstanding the very many distinguished witnesses who have such important testimony to offer, including many from my home State of Pennsylvania, it is simply not possible to be quadruplets and attend all the hearings.

So I want to give the assurance that I have staff present and will be monitoring the situation closely and to make that acknowledgement at this time.

I thank you, Mr. Chairman.

Senator BURDICK. Well, you should know the next witness will be from Pennsylvania.

Senator SPECTER. With the list I have just enumerated, it would be pretty hard not to have the next witness from Pennsylvania. [Laughter.]

STATEMENT OF ROBERT B. KNUTSON, CHAIRMAN AND CHIEF EXECUTIVE OFFICER, EDUCATION MANAGEMENT CORP.

Senator BURDICK. The next witness is Robert Knutson of the Education Management Corp.

Senator SPECTER. Mr. Chairman, I have not seen this distinguished Pennsylvanian since breakfast yesterday, and I am pleased to interrupt my other duties to come down and listen to his testi

mony.

Mr. KNUTSON. I appreciate the opportunity.

Senator SPECTER. Senator Burdick has been around here a little longer than I have. He came a day or two before I arrived at the Senate, so he is able to handle his roller skates with greater agility.

Senator BURDICK. Proceed.

Mr. KNUTSON. I am Robert Knutson, chairman of Education Management Corp. of Pittsburgh, PA. I thank you for the opportunity to testify.

The perspective that I bring to this hearing is of one who was a student of economics at the University of Michigan, spent 5 years as a military fighter pilot, 10 years as a corporate finance specialist with Jaye P. Morgan & Co. in New York, and the past 20 years as chief executive of an education organization that has grown from 800 students to 14,000 students and from 80 members of the faculty and staff to 1,800.

Our employee-owned organization has art institutes in major cities throughout the United States offering a wide range of associate degree and baccalaureate degree education programs, and, in addition, we have consulting affiliations with universities here and

overseas.

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