A report issued Tuesday by a subsidiary of the Charlottesville Regional Chamber of Commerce concluded that a shocking 29.1 percent of the City's families either are living below the poverty line or are not earning enough money to be self-sufficient. Since these families' economic prospects are unlikely to improve without a coordinated effort from a variety of local institutions, the University bears a responsibility as one of the area's largest employers to do what it can to address this situation.
In recognition of this fact, the report includes a specific recommendation aimed at facilitating future University efforts to support the local economy. Namely, the report proposes the creation of "a community-centered hub to harness regional economic power" from so-called "anchor institutions" such as the University. The goal of the hub would be to connect local businesses to large employers whose particular missions make them unlikely to outsource major operational components or relocate them to areas with better economic climates.
As a publicly chartered institution that has provided higher education services in Charlottesville since 1819, the University clearly fits into this category. To fully leverage its resources for the purpose of supporting broad-based economic growth and financial stability among Charlottesville families, however, the University needs a holistic strategy that extends beyond the report's recommendation. This plan should recognize that although it is important for the University to support local businesses in situations where it is cost-effective, it also must operate with maximal efficiency so that it is able to combat poverty in other ways such as by providing adequate pay and benefits to all of its employees.
In recent years, the University has engaged in a number of successful collaborations with local businesses from which it can draw lessons. Notably, the Greenberry's Coffee and Tea Co. locations in Alderman Library and Clark Hall have become among the most popular destinations for students to spend their Plus Dollars. More recently, University Dining has brought several Charlottesville-based food trucks to Grounds as part of this year's meal plan upgrades. Although these are among the most highly visible examples of University partnerships with local businesses, there are countless low-profile jobs related to construction projects, Grounds maintenance and technology services that either do or could make use of local companies.
The desire to support local business should not be the only factor that influences University policy, however. If the choice exists between contracting with a local company or one from outside the area, the University must consider carefully which will carry out the given operation in the most cost-effective manner. This is partially because the University has an obligation to students and taxpayers to spend money in the most efficient way possible. Yet it is also in keeping with the anti-poverty strategy that the report endorses.
If the University were to hire local companies to carry out operations regardless of cost, it would leave fewer resources available to devote to other purposes. This would undermine the University's ability to uphold its commitment to provide all employees with livable wages and benefits. At present, the University is working hard to meet this goal - in July it raised wages for its lowest-paid employees from $10.14 to $10.65 an hour, and it also increased the monetary subsidy provided to employees earning less than $42,000 annually. Wasting money by contracting with inefficient companies, however, would jeopardize this progress since the University already is severely constrained in the funds available to it for employee compensation.
This does not mean the University should stop striving to support local businesses, especially when it can do so in ways that are creative and enhance the University's quality of life. What it does require, though, is that the University not lose sight of the fact that poverty alleviation is as much about increasing wages as it is about job creation.
Read More
CARTER: U.Va. Health owes clarity to transplant patients
By Nathaniel Carter | 3 days agoUnfortunately, this negative press is fully the fault of U.Va. Health — it failed to address significant stakeholder concerns when crafting its justification.
EDITORIAL: Upholding medical amnesty is a collective effort
By Editorial Board | 3 days agoUniversity leadership, Greek life organizations and students themselves must recommit to the safety provided by an effective and knowledgeable use of medical amnesty.
KURTZWEIL: Dockworkers’ unions cannot avoid the threat of automation
By Paul Kurtzweil | 5 days agoInstead of continuing to demand decreased automation, the union should work with the legislature in the hopes of driving investment into the reorganization of the current workforce.
