May 21,2003
Dear Colleagues:
Here are some initial reports on the budget released by the Senate Ways & Means Committee. The first part is from the Senate W&M press release; the second part was done by DJ O'Donnell (many thanks to him for this work). You may forward this information to your membership if you wish, or you may want for a more complete report from Arline Isaacson.
On Thursday, I will be at the day bargaining committee in the morning and then at Mass Maritime in the afternoon. I plan to stay overnight in Bourne and will go directly to our special Board meeting in Framingham on Friday. I will not have access to email after 7:00 am on Thursday.
Pat Markunas MSCA President
Higher Education: Maintaining Local Control of Campuses (from the press release)
The Senate Ways and Means Committee believes that the heart of a strong public higher education system relies on local control of institutions. To this end, this budget preserves line item funding for campuses and rejectsthe suggestion that control over campus funding should be centralized in the Board of Higher Education.
The budget proposes $103 million in cuts to higher education campuses in proportional 12% cuts. Another $130 million in line item reductions offsets tuition revenue, presently remitted to the state, which becomes general revenue of campuses. The State will continue to fund fringe benefit costs of employees whose salaries are paid from retained tuition.
The Committee recommends level funding for scholarships to preserve access and affordability at higher education campuses.
While the Committee believes that the structure of the State's higher education system is essentially sound, there are several areas where reform is needed. Gaps in perception and communication have hindered the ability of the Board of Higher Education and the public higher education campuses to work together effectively to improve education and training in the Commonwealth. The Board lacks leverage over the campuses, and the campuses do not always see the Board as acting in their interests.
Changes proposed in this budget aim to strengthen the relationship between the Board and the campuses, and to increase accountability in the system. The proposed budget reconfigures the Board of Higher Education. The total size of the board is kept at eleven, but of the nine voting members, three will represent the university, state college, and community college sectors.
To respect separation of executive and legislative power, the joint Chairs of the House and Senate Committees on Education will be added to the Board as non-voting members. The Committee hopes their presence will aid in the planning and oversight function of the Board.
Several measures to improve performance measurement systems aim to make data more useful, and planning more data-driven.
Under current law, tuition paid by college students is remitted to the State's General Fund while fees become campus revenue. This practice often results in campuses feeling pressured to raise fees while seeing no cost benefit to raising enrollment.
Retaining tuition at campuses, even though offset by lowered appropriations, will make campus revenue more enrollment-sensitive and will in the longer term help bring more revenue to campuses that are most effective at drawing in students.
The Committee recommends that the Board of Higher Education develop guidelines to restructure student charges. Low tuitions and high fees presently combine to form a structure under which fees represent the majority of student charges. With tuition retention in place, barriers to rationalizing the definition of fees should disappear.
This budget supports Massachusetts College of Art's innovative proposal for greater institutional flexibility. While keeping the college within the umbrella of the state system, language in the budget lays out a process for Mass Art to adjust tuition rates, expand out-of-state enrollment, and develop specific performance goals unique to the college's unusual position as a publicly-funded art institution. This pilot program is one way in which the necessity of a reduction in state-appropriated funds is being turned into an opportunity for new independence and growth, and the Committee applauds the college's vision.
1) Senate Health Insurance Premiums paid by state employees:
salary below $50,000 - employee pays 15% salary $50,000 to $74,999 - employee pays 20% salary $75,000 to $99,999 - employee pays 25% salary over $100,000 - employee pays 30%
2) The Senate version of early retirement:
Total of 4 years of service and/or years or age Application between June 15, 2003 and August 1, 2003 Retirement date September 1, 2003 Sick leave buy-back paid over three years (one-third paid October 1 of 2003, 2004, and 2005) 20% backfill; no replacing employees taking ERIP until June 30, 2005
3) The composition of the BHE would change dramatically.
The Board would be composed of the Commissioner of Education; 5 members appointed by the Governor including at least one student rep, at least one labor rep, and at least one business rep.; one member would be appointed by the UMass Chancellors, one member would be appointed by the State College Presidents, and one member would be appointed by the Community College Presidents. There would also be two non-voting members, one each appointed by the Chair of the House education (etc.) committee and one by the Chair of the Senate education (etc.) committee.
4) No campus, branch or institution of higher education could be closed without the approval of the legislature.
5) There would be established a "State College Blue Ribbon Commission" which would "research, assess, and make recommendations regarding the health, vitality, and future direction of the state college system."
6) The current cap that provides that no more than 25% of student cost can be charged through fees would be removed.
7) Transfer students would be tracked differently showing better graduation rates.
8) There would be a higher education tuition and fees study.
Sincerely,
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