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A New Normal?

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In A New Funding Paradigm for Higher Education, the National Association of State Budget Officers (NASBO) puts the Great Recession into context and discusses the cyclical nature of state funding for higher education, which has historically followed a pattern of major cuts in poor economic periods followed by generous reinvestment in good times.

Considering the generally bleak assessment of the speed of economic recovery for state budgets, NASBO asserts that this boom and bust funding pattern may finally be broken. Many do not expect state funding for public higher education to return to previous levels, and this has states, institutions, and other stakeholders wondering what a ‘new normal’ may look like.

Many institutions think that at least part of the answer lies in seeking greater autonomy from state processes and requirements, and more flexibility in managing institutional resources. Whatever the outcomes, many are hoping that achieving a more stable and predictable funding model might keep public higher education on solid ground as we move toward an uncertain future.

How Other Campuses Plan: Sustainability as Part of Campus Planning

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Welcome to two new topics on OPBlog: Campus Planning and Capital Resources as they relate to a unified approach to capital planning. We will begin posting on topics related to capital resources, capital budgets, campus planning, and national trends in those areas.  This first post looks at planning efforts in Portland and the role Universities play in urban planning.

A 2009 report by the Lincoln Institute of Land Policy titled “Town-Gown Collaboration in Land Use and Development”   reinforces ongoing research that suggests over the past 20 years universities play a much broader role in the economic, social, and physical development in their neighborhoods.  As universities continue to lead the urban planning process with their surrounding communities, the concept of EcoDistricts – planning for sustainability at a district level – may play an important role in the overall discussion of how a community develops.  In fact, in Portland, one of the pilot EcoDistricts is in partnership with Portland State University (PSU). 

What are EcoDistricts? EcoDistricts are a comprehensive strategy developed by the Portland Sustainability Institute to accelerate sustainable neighborhood development. Through partnerships with the region, institutions, and businesses, Portland created the Portland Sustainability Institute (PoSI).  The institute “…brings together business, higher education, nonprofit and municipal leaders to drive a set of next generation urban sustainability initiatives for the Portland metro region.”  In essence, it is a not-for-profit that supports the coordination of multiple sustainability efforts to maximize outcomes.  It supports the planning of community initiatives at a district level rather than individual initiatives in hope that the district level planning will have a more significant impact.   According to Making EcoDistricts, a publication published by PoSI, sustainability is achieved over time.  “It’s not the product of a program, project, or initiative, though all these things are important and help.” Portland, Oregon, has embarked on a path of sustainability through district-level planning not unlike campus planning. Although urban sustainability is not new, the approach Portland is taking is being explored as a model for other cities and universities.

Supreme Court Decision on Medical Residents Upholds Status Quo

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As reported by Inside Higher Ed and many others, the Supreme Court decided this week that medical residents do not qualify for student payroll tax exemptions and must pay into social security and medicare as other employees do.

This ruling upholds U.S. Department of Treasury regulations issued in 2004, which the UW has been in compliance with since. Had the ruling gone the other way, medical residents across the country would have been reimbursed for taxes collected since 2005, and their institutions would have been able to cease collection in the future.

Another Budget Blow to Public Higher Ed in CA

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Today, newly elected California Governor Jerry Brown released his first proposed state budget. The 2011-12 budget proposes over $12.5 billion in spending cuts and over $12 billion in new revenue generation to close an existing deficit of over $25 billion.

Cuts include 10 percent pay reductions for state workers, cuts to Medi-Cal and Welfare, and, notably, deep cuts to higher education only months after the Legislature approved a 2010-11 budget that restored some previously cut funding for public institutions.

Specifically, the budget proposes cutting the UC system by $500 million (17%), the CSU system by $500 million (18%), and community colleges by $400 million (6.5%).

UC President Mark Yudof notes that, if enacted, this budget would mean the state’s annual contribution per student would be less than the portion paid by students and their families for the first time in California’s history. We crossed this same threshold in Washington State for the first time in 2009.

Gearing up for the 2011 Legislative Session

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Today, the Office of State Relations and the Office of Planning and Budgeting held a legislative session overview for folks across campus who are frequently called upon to respond to requests for information during session, including providing feedback on proposed bills, completing fiscal note responses, or working with state relations to testify or answer questions in Olympia.

Please visit our State Budget Process webpage to view or print all four presentations that were made this afternoon, to access the UW BillTracker, and other documents and presentations relating to the State budget process.

Also make sure to subscribe to OPBlog and to the State Relations Blog for regular updates throughout Session and beyond.

WA Higher Education Task Force Report Released

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Last summer, Governor Gregoire created a Higher Education Task force, comprising both public and private leaders, and charged them with proposing a new funding strategy for public higher education, as well as new ideas for increasing institutional accountability. The Task Force released its report yesterday, January 3rd, recommending three major reforms to higher education policy in Washington State.

First, the group suggested that tuition setting authority be given to the universities to help make up for budget cuts from the legislature. Based on their proposal, the institutions would use a formula to determine appropriate tuition rates, taking into account state appropriations, tuition at peer institutions, and enrollment levels.

Second, the Task Force proposed the creation of a Washington Pledge Scholarship Program, which would be funded by private donors. They hope the fund would reach $ 1 billion by the end of the decade. Corporations would receive a tax credit for donating, although that benefit would not kick in until overall tax revenue returned to 2008 levels.

Third, they recommended that the state give cash incentives to universities that meet certain degree production targets. In addition, they encourage universities to make plans to reach retention goals set forth by the state.

Finally, the Task Force listed other money-saving strategies, such as including more online introductory-level classes, developing three-year degrees, giving more credit for college-level work done in high school and at other institutions, and eliminating underused degree programs.

Make sure to check the State Relations blog for a round-up of some of the local press coverage relating to this report.

Recent Grads Affirm Value of College Education

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Mirroring previous findings, the American Council on Education (ACE) released results from a survey of recent college graduates that confirms a high level of satisfaction with the quality and utility of American higher education, but also reflects a growing sense that students and families should take more responsibility for paying for higher education.

Among the findings:

  • 89 percent believed their education was worth it—even after considering the time and money required to attend.
  • 28 percent said that preparing a student for a career was the primary goal of a higher education, while 31 percent said that learning to think critically was the most important role.
  • 40 percent stated that the student and family should be primarily responsible for funding a higher education, followed by the federal and state governments.

Governor’s 2011-13 Capital Budget Would Fund Odegaard Undergraduate Learning Center Renovation

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The Governor’s 2011-13 proposed Capital Budget includes $19.5 million in state building construction funds for a renovation to the Odegaard Undergraduate Learning Center. In addition, the Governor appropriates UW student-generated building fee funds for a variety of projects, including a $4.8 million High Voltage Infrastructure Improvement Project and $25.8 million for preventive maintenance and building repairs.

This Governor’s Capital Budget is the first of many we will see out of Olympia during the upcoming legislative session. Session starts on Monday, January 10, 2011.

A full briefing on the Governor’s proposed 2011-13 Capital Budget is available on our website.

Happy Holidays from the editors of OPBlog! We will be taking a few days off, but will return in full force next week.