ASSOCIATION OF AMERICAN UNIVERSITIES July 11, 2012 Dear Mr. President and Congressional Leaders: We write to urge your bipartisan leadership in forging a major, balanced long-term deficit-reduction agreement that will reduce budget deficits, rein in the nation’s debt, and create economic and job growth to ensure our nation’s long-term fiscal health and to prevent the indiscriminate cuts of sequestration. Sequestration is an undiscerning and blunt budget tool that would substantially harm our nation’s future by blindly slashing valuable investments in education and scientific research, as well as other important discretionary programs that provide health, economic, and national security. There is much public discussion about the impact of sequestration on the defense budget but little about the proposed indiscriminate cuts to the non-defense discretionary budget. Deficit reduction until now has concentrated almost entirely on non-defense discretionary expenditures, which are only about one-sixth of the budget. Spending on these programs is not the primary cause of our rising debt. Wholesale additional reductions in these and other programs that educate and train the next generation risk undermining our nation’s human capital, infrastructure, technological, and scientific needs. A prudent and effective deficit reduction agreement should seriously and thoughtfully address a primary source of long-term spending growth: entitlement programs. Entitlement programs account for a large percentage of the budget, and they are projected to take an increasing share of federal spending in the coming decade. However, the sizable deficit reduction required cannot be achieved solely through decreasing expenditures. Substantial tax reform that is designed both to encourage economic growth and to raise revenues needed to reduce the deficit should also be part of the package. The federal government has played and must continue to play a critical role in fostering U.S. economic competitiveness and economic growth, and therefore, even as the overall budget may be constrained, certain investments for the future must be a top priority. Americans know that investments in education and scientific research pay long-term dividends. Federal support for scientific research and student financial aid laid the foundation for the dramatic expansion of the 20th century U.S. economy and can do the same in the 21st. These investments produce the people and the ideas that lead to new products, new businesses, and entire new industries, as well as the jobs that go with them. Members of both political parties believe that a long-term deficit reduction agreement should specifically incorporate such investments. For example, the majority report of the bipartisan Bowles-Simpson Commission stated, “we must invest in education, infrastructure, and high-value research and development to help our economy grow, keep us globally competitive, and make it easier for businesses to create jobs.” As national leaders in higher education, we urge you to show America and the world that our country’s political system is capable of solving serious problems. The choices will not be easy, but throughout our nation’s history, American leaders have overcome great challenges with difficult decisions and sensible compromises. Please do so again and do so now. Association of American Universities •1200 New York Ave., NW, Suite 550, Washington, DC 20005 •(202) 408‐7500 Association of Public and Land‐grant Universities • 1307 New York Ave., NW, Suite 400, Washington, DC 20005 • (202) 478‐6040 Sincerely, Peter McPherson, President, Hunter R. Rawlings III, President Association of Public and Land-grant Universities Association of American Universities Michael F. Adams, President Lee C. Bollinger, President The University of Georgia Columbia University Stan L. Albrecht, President Al Bowman, President Utah State University Illinois State University Paula Allen-Meares, Chancellor Linda P. Brady, Chancellor University of Illinois at Chicago (UIC) The University of North Carolina at Greensboro James H. Ammons, President A. John Bramley, Interim President Florida A&M University University of Vermont Guy Bailey, President Dean L. Bresciani, President Texas Tech University North Dakota State University Charles R. Bantz, Chancellor Richard H. Brodhead, President Indiana University - Purdue University Duke University Indianapolis M. Christopher Brown II, President James F. Barker, President Alcorn State University Clemson University Thomas Buchanan, President Eric J. Barron, President University of Wyoming The Florida State University Eli Capilouto, President Mark Becker, President University of Kentucky Georgia State University Robert L. Caret, President Robert M. Berdahl, Interim President University of Massachusetts University of Oregon Jean-Lou Chameau, President Ronald Berkman, President California Institute of Technology Cleveland State University Jimmy G. Cheek, Chancellor Robert J. Birgeneau, Chancellor The University of Tennessee, Knoxville University of California, Berkeley David L. Chicoine, President Gene D. Block, Chancellor South Dakota State University University of California, Los Angeles James P. Clements, President West Virginia University 2 Jared L. Cohon, President Rodney A. Erickson, President Carnegie Mellon University The Pennsylvania State University Mary Sue Coleman, President Drew Gilpin Faust, President University of Michigan Harvard University France Córdova, President Paul W. Ferguson, President Purdue University The University of Maine Robert A. Corrigan, President Elson S. Floyd, President San Francisco State University Washington State University Barbara Couture, President Anthony A. Frank, President New Mexico State University Colorado State University Scott S. Cowen, President Robert G. Frank, President Tulane University The University of New Mexico Michael M. Crow, President Patrick K. Gamble, President Arizona State University University of Alaska System Waded Cruzado, President Carol Z. Garrison, President Montana State University The University of Alabama at Birmingham Ronald J. Daniels, President G. David Gearhart, Chancellor The Johns Hopkins University University of Arkansas Brady J. Deaton, Chancellor E. Gordon Gee, President University of Missouri The Ohio State University Joseph A. DiPietro, President Thomas F. George, Chancellor University of Tennessee University of Missouri-St. Louis Philip P. DiStefano, Chancellor Allan Gilmour, President University of Colorado Boulder Wayne State University Philip L. Dubois, Chancellor Matthew Goldstein, Chancellor University of North Carolina at Charlotte The City University of New York John M. Dunn, President Bernadette Gray-Little, Chancellor Western Michigan University The University of Kansas Don Elliman, Chancellor M.R.C. Greenwood, President University of Colorado Denver University of Hawaii System Richard M. Englert, Acting President Amy Gutmann, President Temple University University of Pennsylvania Royce C. Engstrom, President John Haeger, President The University of Montana Northern Arizona University 3 David Hall, President Robert W. Kustra, President University of the Virgin Islands Boise State University V. Burns Hargis, President Frederick M. Lawrence, President Oklahoma State University Brandeis University Patrick T. Harker, President Steven Leath, President University of Delaware Iowa State University Ann Weaver Hart, President David W. Leebron, President University of Arizona Rice University Brian O. Hemphill, President Richard C. Levin, President West Virginia State University Yale University John L. Hennessy, President R. Bowen Loftin, President Stanford University Texas A&M University Susan Herbst, President Wallace Loh, President University of Connecticut University of Maryland Elliott Hirshman, President J. Bernard Machen, President San Diego State University University of Florida John Hitt, President Carolyn R. Mahoney, President University of Central Florida Lincoln University Mark W. Huddleston, President Ronald Mason, President University of New Hampshire Southern University and College System Lloyd A. Jacobs, MD, President Sally Mason, President The University of Toledo The University of Iowa Calvin Johnson, Chancellor Mary Ellen Mazey, President University of Arkansas at Pine Bluff Bowling Green State University Marc A. Johnson, President Richard L. McCormick, President University of Nevada, Reno Rutgers, The State University of New Jersey Eric W. Kaler, President Michael A. McRobbie, President University of Minnesota Indiana University Linda P. B. Katehi, Chancellor Gary L. Miller, Chancellor University of California, Davis University of North Carolina Wilmington Renu Khator, Chancellor, James B. Milliken, President University of Houston System, & University of Nebraska President, University of Houston Leo E. Morton, Chancellor William E. Kirwan, Chancellor University of Missouri - Kansas City University System of Maryland 4 Glenn Mroz, President Kevin P. Reilly, President Michigan Tech University University of Wisconsin System Diana Natalicio, President Brian Rogers, Chancellor The University of Texas at El Paso University of Alaska Fairbanks M. Duane Nellis, President Mark B. Rosenberg, President University of Idaho Florida International University C. L. Max Nikias, President Tom Ross, President University of Southern California University of North Carolina Mark A. Nordenberg, Chancellor Gary D. Russi, President University of Pittsburgh Oakland University Harris Pastides, President E.