Regent and Trustee Training

David Buhler, Commissioner of Higher Education July 18, 2013

Higher Education Highlights

Student Enrollment (Fall 2012)

University of Utah Utah State University Weber State University Southern Utah University Utah Valley University Dixie State University Salt Lake Community College Snow College 0
3,306 4,599 6,287 8,863 15,361 30,112 6,193 8,297 19,117 31,556 14,233 26,680 19,296 28,786 26,966 32,398

5,000

10,000

15,000

20,000

25,000

30,000

35,000
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Budget Related FTE

Headcount

At-a-glance

Over 28,000 degrees awarded in 2012-13 academic year USHE institutions employ over 33,000 Utahns Lowest student debt in the nation 2nd Lowest cost per completion nationally Utah Educational Savings Plan (States 529) is consistently ranked among top 5 in the country

Utahs Eight Public Colleges & Universities

Research Universities
University of Utah (Flagship)
medical school, law school, pharmacy school, etc.

Utah State University (Land Grant)

includes regional campuses

Regional Universities
Weber State University Utah Valley University Southern Utah University (Liberal Arts & Sciences) Dixie State University

Community Colleges
Snow College Salt Lake Community College

Benefits of a Higher Education

8.2% 7.6% $59,843

5.5% $26,355 $19,316 $30,632

$41,273 4.1%

1.4%
Less than High School Diploma High School Diploma Some College, Bachelor's Degree Graduate Degree Certificates & Associate's Degrees
Unemployment Rate
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Median Wage
Sources: American Communities Survey 2011, Utah Department of Workforce Services

State investment benefits state revenues

Utah Population (25 & over) by education level & state tax contribution
48% 40% 34% 28% 38%

Taxes Paid Population

12% No Postsecondary Education Some College, Certificates & Associate's Degrees Bachelor's & Higher
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The Big Challenge

How do we maintain quality and access (including affordability)? Investment & Innovation
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State support is central to affordability

Funding per FTE
FY 2008 FY 2013

Tuition 37%

Tax Funds 63%

Tuition 51%

Tax Funds 49%

Since 2008: Annual tax funding per full-time students has decreased $1,754. With tuition, total annual funding per full-time student has decreased $642.

State support is central to affordability

Funding per FTE
FY 2008 FY 2013 FY 2023

Tuition 37%

Tax Funds 63%

Tuition 51%

Tax Funds Tuition 62% 49%

Tax Funds 38%

Since 2008: Annual tax funding per full-time students has decreased $1,754. With tuition, total annual funding per full-time student has decreased $642.

All States Have Cut Back Support

ANNUAL PERCENT CHANGE IN HIGHER EDUCATION APPROPRIATIONS, FY1960-2012 U.S.
30% 25% 20% 15% 10% 5% 0% -5% -10%
1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011
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Utah has cut back less than most

Tuition vs. State/Local Appropriation
Utah Tennessee Florida Massachusetts Vermont Virginia Arkansas Arizona Nevada Colorado 0% 20% 36% 71% 40% 60% Tuition per FTE 34% 53% 64% 29% 80% 65% 66% 47% 38% 51% 83% 35% 51% 47% 62% 49% 17% 49% 53%
2012-13 Tuition (4-yr institution)

$5,595 $7,676 $6,232 $10,619 $13,582 $9,907 $6,968 $9,729 $6,371 $8,416 100%

State/Local Appropriation per FTE

Sources: State Higher Education Executive Officers (http://sheeo.org/sites/default/files/publications/SHEF%20FY%2012-20130322rev.pdf) 13 College Board (http://trends.collegeboard.org/college-pricing/figures-tables/state-tuition-and-fees-state-and-sector-over-time)

Investment: the Big Goal of 66%

By 2020 66% of jobs in Utah will require a college education Only 43% of Utahns currently have some sort of college education If 66% of Utahns get a college degree or certificate by 2020, state GDP would increase 5-10% annually$600 billion over 30 years

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Were headed the wrong direction

Among US adults 65 & older, Utah ranks 6th in associates degree or higher Among US adults age 25-34, Utah ranks 23rd Between 1994 and 2009 Utahs youth (18-24) population grew by 40%, while first time freshmen enrollment grew by 20%

Source: Georgetown Center on Education and the Workforce

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With Growth, Capacity is an Issue

10-year projected student enrollment
250,000 200,000 150,000 100,000 50,000 0 2012-13 2022-23
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29% Increase

Limited Capacity
Academic Infrastructure
Sufficient personnel and faculty to maintain degree quality Higher Education competes nationally for quality talent

Physical Infrastructure
Enrollment increases further constrain space Significant utilities infrastructure Growing backlog of deferred maintenance

Virtual Infrastructure
Keeping pace with rapid pace of technological change
Online, flipped classrooms, open source, MOOCs

Helps with capacity, still carries a cost

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some examples
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Degrees/certificates available entirely online (12 Masters degrees)

4-fold
Increase in distance-delivered courses in past 10 yrs.

1 in 5
Students take an online course

2/3
Of all students participate in some form of technology-based instruction
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State investment is critical for our future

Encourages college preparation Helps keep college affordable/accessible for Utahns

A well-educated workforce is critical for future generations

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Higher Education Boards

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Individual Characteristics
Influential citizens Appointed by the Governor Each have a responsibility to support and promote higher education as a whole and USHE. Trustees also have specific responsibilities for their own institution

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Helpful Hints
Recognize and respect the difference between policy and administration Example: Appropriate: What are the strategies to encourage more students to successful transition from developmental math to math 1050? Inappropriate: Who is teaching remedial math, or how are they teaching it, or where or when is it taught? Presidents are responsible for the management and leadership of their institutions including personnel

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Helpful Hints
Only the Board Chair or CEO (President or Commissioner) speak for the Board, not individual board members Chair or President/Commissioner are responsible for making sure their comments on behalf of the board reflect the full or majority of the board Any issues with other board members or the President/Commissioner should be raised with the Chair Publicly show support for the decisions of the Board, the President/Commissioner Privately advise, publicly support

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Board Member Expectations

Be informed generally on higher education and other high profile policy & community issues Come to meetings prepared Read materials Be ready to offer feedback and make decisions Keep confidences

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Board of Regents

Boards of Trustees (Governor appointed)

Commissioner of Higher Education

Institution Presidents

Selection & Retention of Presidents

Policy Leadership

Program Approval

Budget & Facilities Oversight

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Board of Regents - Highlights

Approve:
Program approval for new degrees and certificates (by vote) and other curriculum/program items (by General Consent after staff review) All tuition and fees Appointment and evaluation of Presidents
Trustees have major role

Budget and Capital Facility recommendations Property transactions over a certain amount Statewide policies
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Board of Trustees
Act with President to ensure effective operations of the institutions Statutory responsibility for
Community Communications Fundraising Planning Alumni Relations Honorary Degrees

8 appointed by Governor Alumni Student Body Association President President

Provides preliminary approval and oversight on issues going to the Board of Regents (second tier tuition, academic programs, property transactions, etc.)

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Board of Trustees - Highlights

Presidential Searches with Board of Regents Assist Regents with Performance Evaluation of Presidents Approve Institutional policies Implement statewide policies Master Planning Review and Approval Before Board of Regents
2nd tier tuition New programs/degrees & certificates and other items Capital facility requests Property transactions

Internal Audit Consults and provides advice to presidents on auxiliaries and athletics, investments, property, etc.
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Board of Trustees Presidential Searches

Trustee Chair is Vice Chair of the Search Committee Equal number of Regents and Trustees on Search Committee Final candidates to meet with Trustees along with other constituent groups Trustee Executive Committee to participate in finalist interviews and Board deliberations

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Board of Trustees Working with R&R Team

As part of Resource & Review Team
4 members (Trustee Chair and Vice-chair, 2 Regents) Become familiar and assist Presidents
Regents get deeper understanding of specific institutions 2 Meetings per year (Spring & Fall)

Assists Regents with Performance Evaluation of Presidents

Informal evaluation (Spring of each year)
Compensation increase requires positive evaluation

Formal evaluations are on a schedule every few years

Trustees are consulted

Presidents share institutional highlights in the Fall R&R

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Presidents
CEO of the institution responsible for academic quality and financial management Face of the institutioncommunication with public, students, faculty, legislature, etc. Works with the Council of Presidents and Commissioner as recommendations are developed for the Board of Regents, Legislature and Governor

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Unified Budget Process

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Board of Regents Unified Budget Process

JuneAugust

Commissioner seeks input from Presidents on Priorities Commissioner makes recommendations to Board of Regents for discussion, review and approval Submit to Governor/Legislature

September

October

NovemberDecember

Governor forms statewide budget request Legislatures Executive Appropriations Committee establishes budget parameters

December

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Board of Regents Unified Budget Process

JanuaryFebruary March
Legislatures Higher Education Appropriations Subcommittee holds hearings, prioritizes recommendations to Executive Appropriations Executive Appropriations Develops budget; Legislature approves

March

Governor signs/vetoes

April/May

Commissioners Office works with State Division of Finance to execute budget changes

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Statutory Components of Unified Budget

Employee Compensation Mandatory Costs Statewide and Institutional Priorities
2013 Examples: -University of Utah Medical School -Dixie State University Status Utilities -Regents Scholarship

Unfunded Historic Growth

Mission Based Funding

New Enrollment Growth

Cost of Living Increases

Operation and Maintenance

Has not been funded since 2002

3 Strategic Priorities

Insurance Increases

Equity

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Mission Based Funding

Distinctive Mission
Completion Participation Economic Development

Equity
Addresses funding inequities for institutions with similar missions

New Enrollment Growth

Not requested in 2013

Institutions submit initiatives with defined outcomes, assessment criteria and budget plan that fit into these categories
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Capital Development (Buildings)

State-funded projects All or part are to be funded from state-appropriated and/or state general obligation (GO) bonds Non-state-funded projects Entirely funded from non-statefunds Including revenue bonds issued by USHE

Both types of projects require Board of Regents and Legislative approval

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Capital Development (Buildings)

May

Building guidelines/scoring analysis established/refined by Board of Regents Institutions submit project proposals, projects scored Regents task force makes recommendations to Board of Regents for prioritization Prioritized projects sent to State Building Board for prioritization with other state funded projects Governor prioritizes building proposals in Governors Budget Recommendations Legislative Infrastructure and General Government Committee recommends priorities to Legislature Considered by full legislature for final approval
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June-July

September

SeptemberOctober

October

January

FebruaryMarch

A Special Thank You

Your public service is critical to the success of higher education in Utah

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Questions/Discussion

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