He acknowledged that it would cause the University of Iowa "to make some near-term sacrifice" for the greater good of the regents' system. He said that, over time, all three schools "will be stronger, more successful and frankly better funded by the citizens of Iowa."
Miles' panel concluded that the state's longtime funding model, in which the universities seek funding increases based on their prior year's level, no longer made any sense.
That approach, dating to the post-World War II era, punished the universities for enrolling in-state residents because their tuition rates do not cover the full cost of instruction, he said. The result was that the University of Northern Iowa was "chronically underfunded" because the vast majority of its students came from in-state, and often required special funding fixes to make up the gap, Miles said.
The University of Iowa received $14,000 per in-state student compared to about $8,000 at the other two schools, even as the number of its in-state students dropped by 3,200 over the last 30 years.