Whether Governor Spitzer will be able to make New York’s public universities competitive with the best public systems in the nation is a central question of his administration. Optimism may be premature, judging by the preliminary report issued by the governor’s Commission on Higher Education. The panel’s recommendations seemed to over-emphasize the importance of increasing spending, while underplaying what it expects from the State University of New York and other public schools once it recruits thousands of more faculty members and repairs its facilities. Academic standards are not simply a measure of resources. As the City University of New York proved in the late 1990s, standards improve when excellence is demanded.

That said, New Yorkers applaud one recommendation in the report: the establishment of a “compact” between the universities and Albany. Under the compact, the state agrees to cover 100% of mandatory costs such as labor contracts and energy and assume 20% of costs of new programmatic initiatives. It’s up to the schools to spot the rest of the money. They can increase private giving, raise tuition, increase enrollment, or cut back on spending.

The chancellor of CUNY, Matthew Goldstein, introduced the concept of a “compact” three years ago. By their measures, it’s been a success. Given the confidence to make long-term investments and with a greater incentive to increase philanthropic support, CUNY has been able to hire more faculty members, bankroll a new journalism school, and expand student services. It’s unclear whether Albany can afford the new spending called for in the report. Lawmakers, especially given the uncertainty in the economy, may be wise to trim many of the spending recommendations. Still, the concept of the compact doesn’t have to be thrown out. If it worked for CUNY, it should work for the SUNY system.