Wisconsin Trends Impacting Public Higher Education Forum Questions

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1 The Future of Public Higher Education in Wisconsin: A Public Discussion of the Purpose, Relationship and Structure of the UW System April 15, 2015 (Kimberly) and April 16, 2015 (Wausau) Wisconsin Trends Impacting Public Higher Education 1. Decreasing or stabilizing state tax revenues due to the Great Recession and an uneven economic recovery 2. Growing disinterest in raising taxes and decreasing exemptions and credits 3. Students and families picking up a larger share of their University of Wisconsin education due to declining state investments 4. Several years of state-imposed local property tax levy limits and decreased state aids which have led to reductions to K-12 and technical college district budgets and an increased reliance on public referendums for operating and capital improvements 5. State government increasing its share of the Wisconsin Technical College System budget due to the state s decision to offer local property tax reductions 6. Public higher education systems are competing with other public priorities, such as K-12 education, BadgerCare, transportation, and other health and social services 7. Reductions in Wisconsin s median family income 8. Shifting public attitudes against funding public services, in favor of greater efficiencies, and support for outsourcing or privatizing public agencies 9. Substantial growth in Wisconsin s senior citizen population and subsequent increases in the state s contribution to Medicaid 10. Larger transportation debt payments to pay interest payments and the principal, which will continue to crowd out funding to other state agencies 11. State leaders tendency to adopt a balanced state budget using accounting practices which frequently contribute to larger state budget structural deficits 12. Increasing annual student loan debt and default rates, especially in the UW System comprehensive and doctoral institutions 13. Decreasing student enrollment in public higher education due to a decrease in this generation s birthrate and a reaction to increasing college costs and student debt Forum Questions 1. From your perspective, how are the above trends impacting students ability to attend and successfully complete a degree in Wisconsin s public higher education institutions? 2. From your perspective, how are the above trends impacting the competing purposes of higher education (e.g., workforce training, remedial education, liberal arts education, graduate and professional education, basic research, applied research, etc.)? 3. To what extent is the current structure of higher education in Wisconsin complimentary, duplicative, or a combination? (Consider the array of Wisconsin technical colleges, UW System campuses, and private colleges and universities.) 4. How might Wisconsin pursue a shared vision, goals, and strategies to address the future of public higher education in Wisconsin? Page 1 of 5

2 University of Wisconsin System (UWS) see figures 1 and 3 In 2014, the University of Wisconsin System institutions enrolled 152,755 full-time equivalent students (a student who takes 12 credits or more is full time ). The UWS consists of 15 institutions: Two doctoral campuses (Madison, Milwaukee) 11 comprehensive campuses (Eau Claire, Green Bay, La Crosse, Oshkosh, Parkside, Platteville, River Falls, Stevens Point, Stout, Superior, and Whitewater) The UW Colleges, a single institution with 13 freshman-sophomore campuses, (Baraboo, Barron, Fond du Lac, Fox Valley, Manitowoc, Marathon, Marinette, Marshfield, Richland, Rock, Sheboygan, Washington and Waukesha), and combined administratively with UW Extension, with offices in every county, and the home of Wisconsin Public Radio and Wisconsin Public Television Degree programs The two doctoral campuses grant baccalaureate, master s, doctoral, and advanced professional degrees, such as law and medicine. The 11 comprehensive campuses grant associate, baccalaureate, and selected graduate and professional doctorate degrees. The 13 UW Colleges campuses serve primarily as freshman-sophomore liberal arts transfer institutions and offer general education associate degrees and selected baccalaureate degrees through partnerships with the comprehensive institutions. Governance The 18-member UWS Board of Regents is a consolidated governing board that is charged with overseeing the affairs of all UWS campuses, allocating state funding to them, and approving academic programs. State statute Chapter 36 defines the role and powers of the UWS, and section enumerates the governance powers of the president, regents, chancellors, campus deans, faculty, academic staff, and students. Wisconsin Technical College System (WTCS) In 2014, the Wisconsin technical colleges enrolled 75,642 full-time equivalent students. The WTCS consists of 16 districts and technical colleges, and 33 regional campuses and outreach facilities. The 16 technical colleges are Blackhawk, Chippewa Valley, Fox Valley, Gateway, Lakeshore, Madison, Milwaukee, Moraine Park, Mid-State, Nicolet, Northcentral, Northeast, Southwest, Waukesha, Western, and Indianhead. Degree programs Postsecondary education programs include collegiate transfer to UW System campuses in five districts (Chippewa Valley, Madison, Milwaukee, Nicolet, and Western), associate degree, technical diploma, registered apprenticeships, and continuing education (vocational-adult, basic skills education, and district/community services, which include avocational or hobby courses and activities offered with community groups). Governance The 13-member WTCS Board is a statewide coordinating board that is charged with regulating campus educational programs, authorizing budgets, overseeing state and federal grants, and Page 2 of 5

3 developing statewide plans for the state s technical college districts. Separate from the WTCS Board, each nine-member local District Board maintains executive control of the district schools and property it holds for their use. State statute Chapter 38 defines the role and powers of the WTCS and all parties involved in its governance. Overview of the Governor s Executive Budget The governor s executive budget proposal includes an approximately $380 million cut in state funding to the UW System, a resident undergraduate tuition freeze, and conversion of the UW System from a state agency to a public authority (PA). The proposal follows the state budget which included state revenue reductions, resident undergraduate tuition freeze, and reduction or elimination of unallocated campus and UW System reserves. Continues the UW Colleges tuition freeze, which was previously frozen from State funding for the Wisconsin Technical Colleges is shifting to 100 percent performancebased funding over a five year period. Eliminates the Wisconsin Educational Approval Board (which oversees for-profit colleges and universities such as University of Phoenix, Rasmussen College, etc.). Reduces funding for K-12 education, continues property tax levy limit, and increases state support for private schools. Context for the Approximately $380 Million State Reduction The proposal reduces the state s contributions to the UW System budget by 13 percent. A yet-to-be determined UW System formula will allocate the cuts across the 26 campuses and UW-Extension, and another UW System formula will determine how state revenue and student tuition is reallocated across campuses. The Public Authority The conversion of the UW System from a state agency to a public authority would shift some oversight and authority from state government to the UW System. UW System President Cross and several UW chancellors have argued in favor of the proposed public authority because it would provide managerial flexibilities in the areas of procurement, capital planning and construction, human resources, financial management, governance and tenure, and tuition and enrollment. UW President Cross estimates that the public authority flexibilities could lead to approximately $15-20 million in savings. The UW System Authority would receive GPR support from sales tax revenue. Each year, beginning in FY2019 the GPR appropriation would be adjusted for the annual change in the Consumer Price Index. The question about what is the base budget has yet to be resolved. Several campus governance groups, regents, legislators, and others have expressed reservations about the proposed public authority, arguing that the UW System and UW System Board of Regents are not prepared to implement a public authority. Others believe the public authority has no oversight and decisions would be made by unelected representation and that flexibilities could be legislated independent of creation of a public authority. Page 3 of 5

4 Figure 1. UW System Campuses (UW Extension not represented.) Figure 2. Wisconsin Technical College Districts Page 4 of 5

5 Figure 3. Geographic Locations of UW System and WTCS Main Campuses (WTCS regional campuses not represented.) Page 5 of 5

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