Montana’s state seal proclaims “oro y plata,” gold and silver. This reflects our past. The Treasure State historically exported these commodities. Sadly, in the new economy our most valuable exports are well-educated people with strong character and high IQs. While it made sense to export precious metals and minerals, wood and wool, it’s definitely a hardship to lose our human capital, our children. How can we stop this exodus?

The state is confronting a budget shortfall. Yet, if we are to keep our kids here, we need to invest in education. Our goal is to foster an economy that attracts viable businesses.

MSU has an endowed chair honoring the great western writer Wallace Stegner. Stegner condemned the West’s exploiters. He awaited the time when we would have a society and economy to match our scenery. For Montana, this means developing and attracting companies based on knowledge and creative activities, not on extracting natural resources.

America’s competitive advantage lies in its well-educated workforce. As Alan Greenspan recently told Congress, “We will be successful only to the extent that we cultivate, develop, and wisely deploy our intellectual capital. Education is everything.” Information-age companies can locate anywhere. The deciding factor is the education and character of workers. Cisco President John Chambers and Micron CEO Steven Appleton recently told the National Governors Association that companies will locate where they find the most educated workforce. They must have a highly educated workforce to succeed.

If Montana doesn’t provide a quality education for its youth, not only does it cheat them of a prosperous future, but it dooms itself to stagnation. Without a well-educated populace, Montana will depend on agriculture, tourism, and the declining extractive industries. Despite wishful thinking, these are not likely sources of economic progress. Our brightest students will continue to leave the state for better opportunities. Enrollments may even decline, further eroding our universities by reducing tuition income. The average cost of educating a student would actually increase as fixed expenses are divided among fewer students.

Given the state’s sparse and scattered population, the more flexible the university system, the better it will serve students. Our online courses bring educational opportunities to those disadvantaged by distance. Indeed, Montana may be an ideal place to develop distance learning.

State funding of education has declined. Funds from nongovernmental sources become ever more important. Partnerships with business are one option. Nonprofit organizations also present opportunities.

Ray Rasker is an economist with the Sonoran Institute, a nonprofit group that helps communities develop their economies while preserving their landscapes. He also taught in MSU’s Earth Sciences department. This was a natural link, for the two organizations had complementary interests. Professor David Sands of the Plant Sciences and Plant Pathology department runs a privately funded program which brings exceptional high school biology students to MSU for a summer course in biotechnology. There are other such nonprofits whose work complements and advances our universities’ missions and stature.

Here’s a possible way to help Montana’s best high school students stay here. I propose that 4 percent of grants to nonprofits partnering with universities on projects go toward merit-based scholarships for Montana students. Encouraging our best and brightest to stay here for college increases the chance they’ll work here or return later.

A 1995 article in Montana Business Quarterly reported that over half of the people migrating to Montana were returning or had family ties to the state. Many are young and well educated. They return for family, memories, and our quality of life.

Likewise, top scholars love to visit Montana. I’ve had several Nobel laureates lecture in my programs and some of America’s most respected scholars regularly join us. We have the natural amenities to attract mobile corporations and workers. Providing a well-educated population will encourage them.

My daughter was born in the old Bozeman Deaconess Hospital. My son graduated from the two-room Cottonwood School near our ranch. Although both earned graduate degrees from top universities, neither could find appropriate work here. My goal is to help develop an economy in which my grandchildren will have opportunities to return.