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Senate Releases Revised Budget Proposal

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On Saturday, the Senate released a revised budget proposal, which closely resembles the budget they passed in April. For the UW, the two budgets differ in just a few ways:

  • Unlike the original Senate budget, the revised budget does not include a $12.5M transfer away from the UW Hospital Account;
  • The revised budget does not cut the UW by $3.2M for “administrative efficiencies” that were assumed in the original budget; but
  • Compared to the original proposal, the revised budget provides the UW with $3.2M less in new funding.

The latter two changes essentially nullify each other. A few additional changes occurred with regards to state employee health benefits; we are working to interpret the effects and will provide more information as soon as possible.

As mentioned, the revised Senate budget doesn’t stray far from the original. Just like the Senate’s original proposal, its revised budget:

  • Provides the UW with $479.6M (General Fund and Education Legacy Trust funds) for the 2013-15 biennium—$10.2M of which is one-time performance-based funding;
  • Assumes 0% tuition increases for resident undergraduates;
  • Preserves tuition setting authority, but nullifies that authority if either SB 5883 or SB 5941 pass (the bills would require the UW to decrease resident undergraduate tuition rates by 3 percent for the 2013-15 biennium and limit future resident undergrad tuition growth to the rate of inflation); and
  • Generates “new” funding for higher education by imposing a 20 percent tuition surcharge on international students at the state’s public colleges and universities.

For more information about the original Senate proposal, please see the full OPB brief.

Closed Presidential Searches Meet Opposition from Students, Press

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A student journalist and two newspapers are filing lawsuits challenging Louisiana State University (LSU) for choosing a new president in a closed search process. LSU’s presidential search committee released just one finalist, F. King Alexander (the current president of California State University at Long Beach) for consideration. The suits claim that the closed search denied the public the right to participate in the search and violated the state’s public-records laws, which guarantee open access to public documents. The plaintiffs claim the list of candidates for a university president position should be open to the public under Louisiana’s Public Records Act.

Concern over closed searches has been mounting elsewhere, as well. While many states have laws that guarantee access to public records, others allow universities to withhold information on candidates until a certain point in the process. Universities argue that closed searches are necessary because many prestigious applicants are currently presidents of other institutions and would be uncomfortable with publically acknowledging their candidacy, for fear of retribution or embarrassment if they do not land the job. Advocates of open searches say that students and faculty have a right to be informed about the process and will be more confident in the eventual choice if they see all of the options upfront.

Washington is currently considering amending its own public records law with HB 1298. The bill would require the “applications of finalists applying for the highest management position in an agency”, such as a university president, to be released to the public. The information would need to be provided before the agency could make its hiring decision. Until now, applications for public employment were exempt from public disclosure under Washington law. The bill passed unanimously out of the House and is currently being considered in the Senate.

To read more about the Louisiana case, check out the Chronicle’s article. To read HB 1298, please follow this link.

House Chair Releases Revised Budget Proposal

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House Ways & Means Chair Ross Hunter released a revised House budget proposal today. The proposal represents Democrats’ updated negotiating position as budget discussions intensify in the last few weeks of the current biennium. We expect the revised House chair budget to pass the floor later this week, after which leaders of both parties and chambers will continue their budget negotiations. It is likely that the UW will not have a clear sense of its actual anticipated state funding level until the end of June.

The revised House budget provides approximately $5 million less for the UW than the previous House budget.  In addition, the revised House budget assumes tuition increases of only 3 percent per year for resident undergraduates, compared to 5 percent per year in the House engrossed budget. Thus, even less revenue is available.

Additional differences between the revised House budget and the House engrossed budget:

  • Clean Energy Institute Proviso – Unlike the previous House budget, which allocated $12 million of the UW’s general fund for the creation and staffing of a Clean Energy Institute, the revised budget only directs $9 million to that purpose.
  • Center on Ocean Acidification – Identical to the budgets of Governor Inslee and the Senate, the House now provides $1.82 million for a new Center on Ocean Acidification.
  • Forestry Program – The revised House budget states that the UW shall establish a Forestry Program “within existing resources.”  In the accompanying budget spreadsheet, $450,000 in “tuition resources” is set aside for this purpose.

Some similarities between the two budgets (this list is not exhaustive):

  • Computer Science & Engineering Proviso – Both House budgets stipulate that $14.5 million of the $20.8 million in Education Legacy Trust funding appropriated to the UW for the biennium must be reserved for the expansion of computer science and engineering enrollments.
  • College of Engineering Proviso – Like the prior House budget, the revised budget appropriates $2 million in new state funds to expand College of Engineering enrollments.
  • O&M Funding – Both House budgets provide funding to cover operation and maintenance (O&M) costs for the UW’s new Molecular Engineering building and Balmer Hall.
  • Compensation – Both budgets restore the 3 percent salary cut imposed on state agencies in the last biennium.  And, as neither budget explicitly extends the current salary freeze for state employees, which is set to expire on June 30 of this year, we assume the freeze will be lifted under both.

Please see the full OPB brief for more information.

Georgetown Sheds Light on Unemployment and Earnings Trends for Recent Grads

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To understand how graduates of different majors are faring in the current job market, a new Georgetown Center on Education and the Workforce report examines unemployment rates and median earnings by degree for “recent college graduates” (ages 22-26 with bachelor’s degrees), “experienced college graduates” (ages 30-54), and “graduate degree holders” (ages 30-54 with at least a master’s degree).

 The report, entitled Hard Times 2013, finds that the overall unemployment rate for recent graduates is 7.9 percent, with a range of about 7 to 9 percent depending on degree, excepting some notable outliers. Experienced graduates’ unemployment percentage hovered around 4 to 6 percent, while those with graduate degrees had unemployment rates of just 2 to 4 percent. 

 The report finds that undergraduate majors do matter—but not in the way we might expect. Some unemployment rates were surprising: a recent graduate majoring in music (8.6 percent) is slightly more likely to find a job than a recent computer science grad (8.7 percent). Recently graduated journalism and general engineering majors have the same unemployment rate, at 7 percent. The highest unemployment rates were among recent grads in information systems (14.7 percent) and architecture (12.8 percent), while the lowest were nursing (4.8 percent), elementary education (5 percent), physical fitness/parks and recreation (5.2 percent), chemistry (5.8 percent), and mathematics (5.9 percent).

 Furthermore, earnings differentials between recent graduates’ majors are smaller than we might think: the median salary for most is between 30K and 40K per year. Recent grads in computer science and math make slightly more (45K), while recent engineering grads have the highest earnings (54K).

 In many cases, what matters most is not degree field, but degree level and experience.  For an experienced college graduate, median earnings typically increase by 20K to 30K, depending on degree.  And, in most fields, getting a graduate degree pushes median earnings up an additional 10K to 20K.   

 Of course, it is important to take these findings with a grain of salt: while field of study and level of experience can certainly influence the likelihood of finding a job and the amount of money a graduate will make, they are not the only factors. The institution attended, year of graduation, location, and much more can significantly impact earnings and unemployment. 

 To read the full report and see a complete breakdown of earnings and unemployment rates by major and experience level, click here.

 

Bipartisan Bills Seeks to Provide Transparency in Higher Ed

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The Student Right to Know Before You Go Act of 2013, a bipartisan federal bill championed by Senators Wyden (D-OR), Rubio (R-FL) and Warner (D-VA) and Representatives Andres (D-NJ) and Hunter (R-CA), was introduced in both chambers of Congress last week. The bill seeks to give students and their families more information about graduation rates, student debt, transfer rates, expected earnings and other important considerations. The goal is to centralize the data so that families can make an informed decision about college.

While there is support for some of the major provisions in the bill, especially for more information on student debt, others are more controversial. The bill would create a federal unit-record database, which some privacy advocates fear could cause confidential data to leak and could enable the government to use data for non-educational purposes. Currently, such databases are banned, which is a major hurdle to the passage of the bill.

Furthermore, while everyone agrees that students should have as much information as possible in making their decisions, colleges are concerned about increasing already onerous reporting requirements. Universities attempting to manage scarce resources are wary of diverting money from the academic mission towards reporting. The Government Accountability Office recently released a report indicating that college experts find existing reporting requirements, such as providing data on enrollment rates, campus safety, and cost of attendance, exceedingly burdensome.

It remains to be seen which, if any, pieces of the Student Right to Know Before You Go Act will move forward in the coming weeks. The Office of Federal Relations is tracking this measure. Please follow their blog to receive updates as this and other similar legislation continues through the House and Senate.

UW and WSU collaborate to offer “Academic Redshirt” program

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The University of Washington (UW) and Washington State University (WSU) (along with eight other top universities) have been selected by the National Science Foundation to participate in the Graduate 10K+ program, a $10 million initiative to increase graduation rates in STEM fields, particularly engineering and computer science. The UW will receive $970,000 and WSU will receive $700,000 over five years to fund their projects. The initiative is funded by the Intel Corporation, the GE Foundation and prominent hedge-fund manager and White House adviser Mark Gallogly. While the funding for this program is limited, experts hope it will encourage innovative pilot projects at the selected universities and prompt other companies and individuals to donate.

The UW, in collaboration with WSU, will use its funds to implement an “academic redshirt” program for engineering. The program will enroll low-income high school graduates in a five-year engineering degree program. The first year will focus on solidifying students’ math and science skills. Students will receive individualized advising as well as assistance with acclimating to university workloads. This will help them to be better prepared for the rigors of engineering study at the UW and will remedy learning gaps they might have from high school, hopefully increasing freshman retention and degree completion. After successful completion of the first year, the students will be accepted into one of the UW’s engineering departments. UW and WSU each hope to enroll 32 freshmen in the program, reaching a total of 320 students in five years.

More about the Graduate10K+ program is available in the Higher Ed Chronicle’s article and the UW News article.

Accenture Report Recommends Hiring Graduates Based on Potential

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Accenture, a management consulting firm, recently conducted a survey of 2011/2012 college graduates and 2013 pending graduates. The survey focuses on the 2011/2012 graduates’ job search experience, and asks them about their current jobs, salaries, and future education plans. Accenture then contrasts their responses with the employment expectations of pending 2013 graduates. Some interesting findings include:

  • While more than 77 percent of 2013 grads expect to receive employer-provided training at their future job, only 48 percent of 2011/2012 grads actually received such training from their employer.
  • 50 percent of 2011/2012 grads who are currently unemployed claim that they cannot find a job because companies believe they do not have enough experience, even though 72 percent of 2011/2012 grads participated in an internship during school.
  • 41 percent of 2011/2012 graduates believe they are underemployed, meaning their job does not require a college degree.
  • Yet despite the still-sluggish economy, 81 percent of 2011/2012 graduates report they found a secure job within 6 months of graduation.
  • Of 2011/2012 graduates, 42 percent expect to pursue a graduate degree, but only 18 percent of 2013 grads expect to do so.

Accenture’s report points to the disconnect between employers’ and graduates’ expectations of employment, particularly when it comes to experience and training. The report encourages employers to hire based on potential and a broad skill base, not on specific expertise or perfect qualifications. Furthermore, it recommends that employers provide increased on-the-job training for recent graduates so they can gain necessary experience and job skills to supplement their educational qualifications. Finally, Accenture advises that employers work more closely with educational institutions to help better align their needs with university curriculums, and to provide more internship opportunities for students.

To read the full report, click here, or check out this summary from the Chronicle of Higher Education.

Legislature Adjourns, Special Session Starts May 13

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The 105-day state legislative session officially ended this Sunday, April 28th. Unfortunately, the state legislature was unable to reach a compromise on the budget by the end of the session. A significant cause of the impasse is the Washington State Supreme Court ruling that requires the legislature to fully fund K-12 education.  The House budget proposal repeals eleven tax exemptions and extends several other taxes, diverting $1.17 billion into education, while the Senate version cuts several social programs to fund education with $1 billion. Governor Inslee has called a special session, to begin May 13th, in order to pass a compromise budget and to pass legislation on other issues such as universal background checks for gun purchases, the state DREAM act, tougher DUI laws, and the Reproductive Parity Act. When special session begins, all bills that have passed out of the house of origin will be reintroduced in that house and placed on third reading.  Budget writers will stay in Olympia to try to work on a compromise in the next two weeks. As always, we will post any updates on their progress to this blog. Be sure to monitor the UW State Relations blog for updates as well.

UW Ranks 1st among Public Schools and 2nd Overall for Federal R&D Funding

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Of the nearly 900 schools that received federal money for research and development (R&D) in FY 2011, the UW ranks first among public institutions and second overall in terms of federal research funding. According to a study by the National Science Foundation (NSF), approximately 20 percent of all federal R&D support went to just 10 universities. 24/7 Wall St. reviewed those universities, Table 1 summarizes their findings.

Johns Hopkins University, a private institution, topped the list with nearly $1.9 billion—more than doubling what any other university received that year. The majority of Johns Hopkins’ federal funding came from the Dept. of Defense and NASA. The university also brought in billions via fundraising efforts.

The UW came in second with almost $950 million in federal R&D funding—the most of any public school. The majority of the UW’s money came from the Dept. of Health and Human Services; however, the University was the top beneficiary of NSF funding, receiving more than $145 million in 2011.

Year after year, the same schools consistently receive the most money, said Ronda Britt, a survey statistician with the NSF. 24/7 Wall St. quotes her as saying, these universities “have big research programs that receive a lot of support year after year, and have a lot of infrastructure that helps them keep the money stable.” This holds true for the UW, which has ranked first among public schools since 1974. Having large endowments was another commonality of the top 10 schools, yet federal funding covered the bulk of R&D expenditures in all cases.

As these universities rely heavily on the federal government to support their research, many are concerned about the sweeping cuts of sequestration. The UW and other universities are preparing for a range of possible impacts. As described in our joint brief, the sequester could reduce the UW’s federal grant and contract support by an estimated $75M to $100M during FY13. The UW community is encouraged to remain cautious and conservative in spending federal awards and in planning for future federal funding.

Florida to provide extra funding for faculty salaries, research

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On Monday, Governor Rick Scott of Florida signed a bill that gives special status and increased funding to Florida’s top two universities. The bill designates the University of Florida and Florida State University as “pre-eminent” universities and provides them with an extra $15 million per year, for five years, to help them become two of the top ten research universities in the nation. The money  pays for increased faculty salaries and more research funding. In addition, legislators are considering restoring $300 million in funding that was cut in the 2012 legislative session. The bill also relieves the two universities of certain onerous reporting requirements. Eric Barron, president of Florida State, claims the increased funding will not only improve the quality of education at his university but also improve the return on investment of state money, because prominent faculty members will not be “raided” by other institutions were they would be paid much more.

The bill also provides $10 million more in funding for online degree programs this year, with $5 million appropriated in subsequent years. Tuition for online programs is capped to 75 percent of tuition for on-campus programs. The legislature would like to see increased out-of-state enrollment in these online courses, as online degree programs have already provided an additional $70 million in revenue a year for the University of Florida.

More about the Florida legislation is available in the Chronicle article. To read about current proposals for higher education funding in Washington state, please see our recent briefs on Governor Inslee’s budget priorities or the Senate and House budgets.