Chancellor Francisco G. Cigarroa, M.D.I send this message to you on Texas Independence Day, 175 years after the first Texas delegates met at Washington-on-the-Brazos to write the Texas Declaration of Independence. Those were uncertain times, but they came together with strong resolve and the certainty that greatness lay ahead for Texas if they showed leadership and courage.

The challenges we Texans face today are not as monumental, but we have this much in common: Great challenges present great opportunities. For those of us in higher education today, this is a special opportunity to serve and graduate more students, to improve the quality of their education, and to make a University of Texas education affordable to a greater number of Texas families.

The 82nd Regular Session of the Texas Legislature is well under way, and we are working with lawmakers to make our priorities known and to become part of the solution to the challenges our state is facing. We know that if we are looking for public support, we must continue to put our own house in order. Over the past four years, the UT System can document $1.4 billion in savings, avoided costs, new revenue generated, and reduction of the size of System administration. As legislators look at the specifics of the 2012-2013 state budget, we are asking them to

• Ensure that the share of spending on higher education is not reduced further.
• Commit proportionate additional funding to higher education as a strategic investment that will improve lives and build the Texas economy.
• Give flexibility to university systems and institutions to manage the impacts of any budget reductions.
• Give university systems the flexibility to eliminate or sunset reporting and regulatory burdens.

When we consider the needs of specific UT institutions, we will be asking our legislators to

• Support institutions with adequate formula dollars at a time of significant enrollment growth. Public universities receive state funding through a formula that considers an institution’s enrollment, among other things. Formula funding is essential to supporting the quality of faculty and services that students need.
• Support students by funding financial aid, such as the TEXAS Grants. TEXAS Grants are available to well-prepared high school graduates with financial need.

For the health institutions, our top priority is also formula funding, with an emphasis on funding research, infrastructure, and Graduate Medical Education. These are the elements of our core mission, and adequately funding them will strengthen health education in Texas and improve the health of individual Texans.

As legislators grapple with the budget this session, it is crucial that they recognize that university research, especially at our flagship and emerging institutions, powers the Texas economy. University research puts money directly into the Texas economy and creates a stronger economic future for our state. This research leads to innovations and discoveries that transform lives, which creates additional jobs and economic prosperity. Texas is fortunate that UT universities and health institutions have an outstanding history of research success, and it is in our best interest as a state to ensure that their funding continues.

Chancellor Francisco G. Cigarroa, M.D.