America faces many challenges...but the enemy I fear most is complacency. We are about to be hit by the full force of global competition. If we continue to ignore the obvious task at hand while others beat us at our own game, our children and grandchildren will pay the price. We must now establish a sense of urgency.

Agency by agency, we frequently have lost a bit of ground, at least to inflation-but had it not been for the efforts we've made to educate people about the importance of science, technology and advanced education, those predictions very well might have come true.

We are trying to make up these other elements by gaining cost efficiencies through our reengineering process and through overt fund-raising activities to better support graduate education.

We have been restraining the growth of the cost of education-that is, tuition, room and board-to be within approximately one and a half percentage points of the consumer price index.

The term 'cost shifting,' as I use it, refers to those items in a university's budget that used to be reimbursed by the federal government but are no longer paid for by them.

Over-reliance on strictly economic justifications has already begun to hurt the quality and range of education at every level of American life.

Given the best of all possible worlds, I would make a few changes. I would place emphasis on increasing the amount of funding that goes into programs like Pell Grants, that purely and simply award funds to students who really cannot afford full tuition.