Regent and Trustee TrainingDavid Buhler, Commissioner of Higher Education

July 18, 2013

Higher Education Highlights

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Student Enrollment (Fall 2012)

3

26,966

19,296

14,233

6,193

19,117

6,287

15,361

3,306

32,398

28,786

26,680

8,297

31,556

8,863

30,112

4,599

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

University of Utah

Utah State University

Weber State University

Southern Utah University

Utah Valley University

Dixie State University

Salt Lake Community College

Snow College

Budget Related FTE Headcount

At-a-glance

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• 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 (State’s 529) is consistently ranked

among top 5 in the country

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

Utah’s Eight Public Colleges & Universities

$19,316 $26,355

$30,632

$41,273

$59,843

Less than HighSchool Diploma

High SchoolDiploma

Some College,Certificates &

Associate's Degrees

Bachelor's Degree Graduate Degree

8.2%7.6%

5.5%

4.1%

1.4%

Benefits of a Higher Education

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Median Wage Unemployment Rate

Sources: American Communities Survey 2011, Utah Department of Workforce Services

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12%

40%

48%

34%38%

28%

No Postsecondary Education Some College, Certificates &Associate's Degrees

Bachelor's & Higher

Taxes PaidPopulation

Utah Population (25 & over)by education level & state tax contribution

State investment benefits state revenues

The Big Challenge

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How do we maintain quality and access (including affordability)?

Investment&

Innovation

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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

FY 2008

Tax Funds 63%

Tuition37%

FY 2013

Tax Funds 49%

Tuition51%

Funding per FTE

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

FY 2008

Tax Funds 63%

Tuition37%

FY 2013

Tax Funds 49%

Tuition51%

FY 2023

Tax Funds 38%

Tuition62%

Funding per FTE

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All States Have Cut Back Support

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011

ANNUAL PERCENT CHANGE IN HIGHER EDUCATION APPROPRIATIONS, FY1960-2012 – U.S.

Utah has cut back less than most

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

71%

36%

53%

34%

65%

83%

51%

38%

47%

51%

29%

64%

47%

66%

35%

17%

49%

62%

53%

49%

0% 20% 40% 60% 80% 100%

Colorado

Nevada

Arizona

Arkansas

Virginia

Vermont

Massachusetts

Florida

Tennessee

Utah

Tuition per FTE State/Local Appropriation per FTE

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

Tuition vs. State/Local Appropriation

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• 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

Investment: the Big Goal of 66%

We’re headed the wrong direction

Source: Georgetown Center on Education and the Workforce15

• Among US adults 65 & older, Utah ranks 6th

in associate’s degree or higher• Among US adults age 25-34, Utah ranks 23rd

• Between 1994 and 2009 Utah’s youth (18-24) population grew by 40%, while first time freshmen enrollment grew by 20%

0

50,000

100,000

150,000

200,000

250,000

2012-13 2022-23

10-year projected student enrollment

29% Increase

With Growth, Capacity is an Issue

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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 cost17

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…some examples

4-foldIncrease in distance-delivered courses in past 10 yrs.

1 in 5Students take an online course

2/3Of all students participate in some form of

technology-based instruction

49Degrees/certificates available entirely online

(12 Master’s degrees)

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

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• 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

Board of Regents

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Selection & Retention

of Presidents

Selection & Retention

of Presidents

Policy Leadership

Policy Leadership

Program ApprovalProgram Approval

Budget & Facilities Oversight

Budget & Facilities Oversight

Boards of Trustees(Governor appointed)

Commissioner of Higher Education

InstitutionPresidents

• 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

Board of Regents - Highlights

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• Act with President to ensureeffective operations of theinstitutions

• Statutory responsibility for– Community Communications– Fundraising– Planning– Alumni Relations– Honorary Degrees

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

Board of Trustees

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8 appointed by Governor

StudentBody

President

Alumni Association President

• 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.

Board of Trustees - Highlights

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• 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

Board of Trustees – Presidential Searches

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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

Board of Trustees – Working with R&R Team

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• CEO of the institution responsible for academic quality and financial management

• “Face” of the institution—communication 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

Presidents

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Unified Budget Process

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Board of Regents – Unified Budget Process

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June-August

Commissioner seeks input from Presidents on Priorities

September Commissioner makes recommendations to Board of Regents for discussion, review and approval

October Submit to Governor/Legislature

November-December Governor forms statewide budget request

December Legislature’s Executive Appropriations Committee establishes budget parameters

Board of Regents – Unified Budget Process

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January-February

Legislature’s Higher Education Appropriations Subcommittee holds hearings, prioritizes recommendations to Executive

Appropriations

March Executive Appropriations Develops budget; Legislature approves

March Governor signs/vetoes

April/May Commissioner’s Office works with State Division of Finance to execute budget changes

Statutory Components of Unified Budget

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Employee Compen-

sation

Cost of Living Increases

Insurance Increases

Mandatory Costs

Operation and

Maintenance

Utilities

Statewide and

Institutional Priorities

2013 Examples:

-University of Utah Medical

School

-Dixie State University

Status

-Regents’ Scholarship

Unfunded Historic Growth

Has not been funded since

2002

Mission Based

Funding

New Enrollment

Growth

3 Strategic Priorities

Equity

Mission Based Funding

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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

Capital Development (Buildings)

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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-state-funds

• Including revenue bonds issued by USHE

Both types of projects require Board of Regents and Legislative approval

Both types of projects require Board of Regents and Legislative approval

Capital Development (Buildings)

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May Building guidelines/scoring analysis established/refined by Board of Regents

June-July Institutions submit project proposals, projects scored

September Regents task force makes recommendations to Board of Regents for prioritization

September-October

Prioritized projects sent to State Building Board for prioritization with other state funded projects

October Governor prioritizes building proposals in Governor’s Budget Recommendations

January Legislative Infrastructure and General Government Committee recommends priorities to Legislature

February-March Considered by full legislature for final approval

A Special Thank You

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

Questions/Discussion

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