ࡱ> CE>?@AB@ Jbjbjצצ ,:bbbbbbbv^8^8^888d8LvnR99999:::cnenenenenenenpRrenboP::oPoPenbb99zn4WQWQWQoPb9b9cnWQoPcnWQWQebbog9F9 psZ>8P"/4n<n_fsPs(ogvvbbbbogsbg:"AWQG%KJ:::enenvvdAQvvMARYLAND HOUSE APPROPRIATIONS SUBCOMMITTEE ON EDUCATION AND ECONOMIC DEVELOPMENT UNIVERSITY SYSTEM OF MARYLAND TESTIMONY OF USM CHANCELLOR WILLIAM E. KIRWAN MONDAY, FEBRUARY 4, 2008 Chairman Bohanan, Vice-Chairman Clagett, and members of the Committee, thank you for the opportunity to testify on the Governors FY 2009 budget recommendations for the ĢƵ (USM). I want to begin by thanking Governor OMalley for his strong support for the USM as reflected in this years budget request. The budget request before you represents a true partnership, an alignment of our priorities with those of the Governor, the General Assembly, and the State of Maryland. I also want to sincerely thank youthe members of this committeefor your continuing support for the ĢƵ. The USM is proud of the productive relationship we have forged with the Legislature, especially with our key committees and subcommittees. I reaffirm our commitment to work with the General Assembly in the most forthright manner possible. As we have done in the past, we will try to address any and all of your questions and concerns, thoroughly respond to the issues raised by the legislative analyst, and support your efforts in any way we are able. As you know, one key outcome of last falls special legislative session was thatfor the first time in the history of Marylanda specific funding stream dedicated to higher education was established. We are very appreciative of this recognition of the vital importance of higher education in todays world. In many ways, the special sessionand the Governors budget proposalcontinue the march of progress that we began together a few years ago. In fact, the past two or three years provide a number of success stories that have emerged from our work together.  EMBED PowerPoint.Slide.8  As you can see, we have reached record levels of enrollment, degrees awarded, and external research funding, reinforcing the status of USM institutions as centers of learning, hubs of discovery, and engines of economic growth. In addition, campuses from throughout the System have been singled out for significant national recognition. Of course, as Cliff noted, the driver for much of our success has been our ground-breaking Effectiveness and Efficiency (E&E) initiative, which reflected many of the concerns this body shared with me when I first assumed the position of Chancellor.  EMBED PowerPoint.Slide.8  The administrative and academic initiatives that define E&E reflect both the USMs obligation to act as cost-conscious stewards of our funds, and our commitment to seek innovative approaches to make higher educational opportunities more affordable and accessible. Likewise, it reflects the expectations of you and your colleagues in the Legislatureand the taxpayers of Marylandthat the USM do all within our power to meet the needs of the students we serve in a cost-effective, creative manner. The Governors proposed budgetwith a total USM state funding increase of 9.4%builds upon this record of success and positions the USM and the State to continue our progress together. The budget is also built upon a projected internal cost savings within USM of more than $9 million, captured through our on-going commitment to E&E.  EMBED PowerPoint.Slide.8  A major highlight of the operating budgetas I mentioned earlieris the Higher Education Investment Fund (HEIF), the states first-ever dedicated funding source for higher education.  EMBED PowerPoint.Slide.8  First and foremost, funding from the HEIF will be used to enable our universities to once again hold tuition unchanged for in-state, undergraduate students. In fact, if the Governors proposal to provide extra funding to keep in-state, undergraduate tuition flat is approved for the next Fiscal Year, something truly remarkable will result: A student entering his or her senior year of college the following fallwho is set to graduate after four years in the Spring of 2009will have experienced flat tuition for his or her entire college career. Think about that . . . from incoming-freshman to graduating-senior with no tuition increase at all. In a decade that, until recently, was marked by a series of tuition increases, these four consecutive years of flat tuition represent a real triumph of our partnership. The USM did its part through cost containment and cost avoidance, targeting alternative revenue sources, and embracing innovative alternatives. The State did its part with increased funding targeted specifically to mitigate tuition. Our efforts together served to benefit the students we serve and their families.  EMBED PowerPoint.Slide.8  It must be noted, however, that Maryland remains a relatively high tuition state. So while it is too early to claim victory in our mutual efforts to keep tuition affordable, the progress we have made together cannot be ignored. For much of this new century, Maryland ranked steadily in the Top-10 nationally in tuition costs, ranking as high as 6th just a few short years ago. Over the past three years we have moved out of the Top-10 and are projected to rank 16th.  EMBED PowerPoint.Slide.8  In addition to its impact on tuition, the HEIF will fund an increase of 1,529 students (full-time-equivalent) through the Enrollment Funding Initiative; allow for growth at our 2 regional education centers; support workforce development in critical areas and research initiatives aimed at increasing Marylands economic competitiveness; and advance the USMs commitment to address the achievement gap in college participation, retention and graduation rates between under-represented minorities on the one hand and the general student population on the other hand The last two elements of the HEIF I mentionedcompetitiveness and closing the achievement gapare of special importance to me. They, along with the commitment to address critical environmental concerns, make up the three key initiatives I hope to focus on during the remainder of my time as Chancellor.  EMBED PowerPoint.Slide.8  In terms of competitiveness, we approach this discussion from a position of genuine strength. Thanks in large measure to a strong system of higher educationtwo-year, four-year, public and private colleges and universities in Marylandour state is a leader in the knowledge economy. Our challenge is to make the right decisions and investments that enable our state to realize the full potential of this winning hand. The achievement gap is a thornier challenge. Unless the gap in college participation, retention and graduation rates between low income and under-represented minorities on the one hand and the general student population on the other hand is closed, we will create a permanent underclass that belies our heritage as a land of opportunity and an upwardly mobile society. Moreover, it will mean we will not have the highly skilled workforce necessary to sustain our leadership in the intensely competitive global economy. If we focus our talent and attention on this issue, we can make a difference. The third issue is one that has gained increasing attention and relevance in recent years. It is environmental sustainability. The USM can be an especially important resource in helping our state come to terms with the impact of climate change. Through our education and research programs, we can develop and promulgate new strategies for addressing environmental challenges. And, through our commitment to best practices in the use of energy, we can become a model for others to emulate. In the past when I have testified, I have spoken to the incredibly broad impact higher education has on the State of Maryland. I have highlighted our role as an agent of economic, cultural, social, and environmental progress. I have underscored our significant contribution to homeland security and related issues. And I have emphasized the remarkable level of innovation and discovery taking place at our research institutions. ALL these achievementsand otherswere empowered by your support for higher education and the ĢƵ. Our shared commitment to accessibility, affordability, and excellence set the stage for this progress. As I close out my testimony today, however, I would like to take a somewhat more narrow focus - - on the issue of Economic Security. As Governor OMalley eloquently noted in his State of the State address, Marylandlike the rest of the nationis bracing for the effects of an economic downturn. The historic housing slump, the decline in consumer spending, and increase in the unemployment rate combine to create a sense of anxiety and apprehension within us all. But as the Governor correctly noted, the way that we get through these tough times is not by abandoning our priorities, but by protecting our priorities. Thanks largely to the support you have provided us, as well as the institutional autonomy and organizational flexibility you have afforded us, the ĢƵ possesses the building blocks of Marylands economic security: an educated and skilled workforce research and development / innovation and economic dynamism  EMBED PowerPoint.Slide.8  Through our investments in higher education, Maryland is poised to take full advantage of these strengths to position itself as not just A leading new economy state . . . but as THE leading new economy state. We certainly have the highly-skilled, well-educated workforce necessary to stake this claim. Maryland ranks 4th in the overall category of knowledge jobs; has a high percentage of jobs in IT occupations; and consistently ranks among the leading states in the percent of its workforce who have at least a college degree. This intellectual infrastructure is the foundation of our economic security. Ensuring affordable access to high quality educational opportunities to a growing and diverse student population is essential for our continued progress. This highly-educated, well-skilled workforce focuses a tremendous amount of its talent in the areas of research and innovation. Johns Hopkins is, as Im sure you all know, number one among the nations universities in federally sponsored research. If one combines the research portfolio of the University of Maryland, College Park with the medical school at the University of Maryland, Baltimore, it would rank number ten among public and private universities. Combining all USM institutions, extramural research funding within the USM totaled nearly $1 billion last year. To advance the impact of R&D, the three USM research parks, affiliated with University of Maryland, College Park; University of Maryland, Baltimore; and University of Maryland, Baltimore County, have combined with Johns Hopkins and Montgomery Collegethe first community colleges in the country to house a research parkto form RPM: Research Parks Maryland. RPM, a cooperative association representing our entire state, recognizes these facilities as an unalloyed good, combining cutting-edge education, significant economic development, and ground-breaking research. The leaders of the parks have come to understand that individual success is enhanced by the collective success. And so ideas, potential tenants, and strategic plans are shared and mutually supported. And while Maryland is certainly fortunate to be strategically located close to many top flight government research labs, facilities, and research centers, we have also taken steps to make our universities even more attractive locations for the federal government to build and expand operations dedicated to the national interest, from nano-technology to homeland security to the health sciences. The fact of the matter is, even in the midst of a slowing economy, investment will continue in the ground-breaking areas. In fact, just last month it was announced that the new Intelligence Advanced Research Projects Activity (IARPA) will be located at M-Square, UMCPs research park. The partnerships we have establishedinvolving the federal and state governments, the public and private sectors, and public and private colleges and universitiescan only serve to enhance Marylands economic security in challenging times. The support you have provided to higher education in years past set the stage, and the support proposed going forward will firmly established Marylands position of dominance. Turning now to the issues raised by the legislative analyst, I want to re-emphasize how proud the USM is of the partnership we have formed with the elected leadership in Annapolis. Together we have worked cooperatively to identify challenges, establish priorities, and set a course to strengthen higher education in Maryland. We look forward to continuing this partnership. LEGISLATIVE ANALYSTS ISSUES & RECOMMENDATIONS To ensure that we respond directly and expeditiously to the actions recommended by the analyst, as well as the request for comments, we have divided the following testimony into two sections. The first addresses the specific recommendations by DLS in the order they are listed in the analysis, beginning on page 38. The second section contains the Chancellors response on the issues DLS raises in the analysis and requests comment. Section 1. The Chancellors Response to Recommended Actions DLS Recommendation 1. DLS recommends $10,555,683 of current unrestricted funds allocated to the enrollment funding initiative (EFI) may not be expended until the USM has prepared and submitted reports on the EFI attainment level for each institution. USM Response: The USMs preference is that the funds associated with the EFI be released at the beginning of the fiscal year. This provides the institutions with the greatest flexibility in hiring faculty, opening classes and otherwise meeting the diverse expenses associated with enrollment growth. If the recommendation is accepted, the USM would like to confirm that the December 2008 report would allow the release of the total funds allocated to any institution that is estimated to have reached its enrollment target, per a method agreed on with DBM and DLS. A follow-up report in May 2009 would allow the release of funds to institutions which had not clearly reached their targets in the December report. We concur that funds previously allocated to under-target institutions would, at that time, be re-allocated by the USM to institutions which had exceeded their enrollment targets. DLS Recommendation 2. DLS recommends that USM current unrestricted general funds be reduced by $6,798,929 and that this reduction not impact the number of students projected to be enrolled. USM Response: It is important to look at this reduction in the overall context of the FY 2009 operating budget. To be sure, this budget is tightly balanced, and in the course of budget development, cost items were constantly reviewed, certain of these costs could not be built into the budget entirely and other areas required cuts. For example, on a policy level, DBM suggested and the USM accepted the fact that funding for the over attainment of enrollment in FY2008 was not available. (Some funding for this matter was provided in FY2008.) Regardless, the students are in attendance and the cost pressures exist and cost containment is necessary. Also, because of overall fiscal constraints, it was necessary to cut the USMs general fund support, largely for mandatory expenses, by $8.1 million as the Governors recommendations were being finalized. In addition, the USMs overall cost containment program, or Effectiveness and Efficiency Initiative (E&E), requires institutions to identify and implement productivity actions to reduce spending by $9.0 million over and above the above mentioned $8.1 million reduction - in order to balance the current budget. The recommendation to reduce the general funds by an additional $6.8 million can not be addressed without making programmatic-related cuts. Certain mandatory cost increases can not be avoided, and access and affordability in a time of unprecedented demand make enrollment growth a necessity. Thus, quality will be eroded. In the short term, actions like fewer adjunct faculty, decreases in financial aid, and reductions in student services, such as counseling will be necessary. Funding guideline attainment, the proxy for academic quality will remain significantly below our peer institutions. There is a policy issue connected to the recommendation. The General Assemblys special session resulted in a dedicated stream of revenue to enhance higher education. This was due to the importance of higher education to the economy and society as a whole. The rationale behind the recommendation appears to be inconsistent with the Higher Education Investment Fund (HEIF). The HEIF was meant to supplement general funds and not replace general funds in the context of maintenance of effort within the General Fund appropriation. DLS Recommendation 3. DLS recommends adding language that the USM permanently incorporate the one percent efficiency savings into its current services budget starting in FY 2010. USM Response: During the development of the USM FY 2009 operating budget, the USM set its E&E estimated savings at one-half of one percent of the general fund plus tuition and fee revenue total. In prior years the USM did set a 1% savings target and these savings have been incorporated into the budget for the past four years. This change to a half percent target or $9.0 million was due to the full maturation of various initiatives and the related on-going savings. Administrative savings related to energy and procurement contracts have maximized, as well as academic and student initiatives. Our productivity measures such as faculty workload, time to degree and retention rates, have reached the upper borders of policies and productivity goals, and there is diminished potential for savings for the immediate future. During the next decade the USM will focus on developing the means to restructure energy consumption in order to address climate change requirements including reducing carbon emissions. It will take some time and investment to realize a new generation of energy savings. The USM Board of Regents (BOR) pioneered efficiency strategies for public higher education. As stated above we have incorporated these savings in the operating budget process for four years and will continue to pursue cost saving initiatives in the future. The Board of Regents has a workgroup that reviews the savings and initiatives on an on-going basis. We feel that this language is unnecessary. The BORs oversight on this issue is constant and the results speak for themselves. DLS Recommendation 4. DLS recommends that the USM continue to provide annual instructional workload reports for tenured and tenure-track faculty. USM Response: The USM concurs and will continue to submit the report as requested. Section 2: The Chancellors Comments on Issues Raised by DLS in the Analysis. 1. Request for Chancellors comment on efforts at USM institutions to increase new enrollment as well as retention of students already enrolled in teacher education programs (page 8 of the analysis). USM Response: The teacher shortages in Maryland have been a systemic problem for many years. This year, the P-20 Council charged a statewide task force to study the issue and develop recommendations in three categories: (1) Higher Education Curriculum; (2) Certification; (3) Incentives. The charge also made explicit that communication and marketing is a cross cutting theme to be addressed in all three categories. Regent Pat Florestano co-chairs the Task Force with Ed Root, former president of the Maryland State Board of Education. The Teacher Shortage Task Force has been examining the sources of the problem, issues related to tracking new teacher hires, teacher retention, and incentives for recruiting and retaining teachers in Maryland. The final report will be delivered to the P-20 Council in June 2008. Teacher recruitment: In addition to the statewide attention to this challenge, USM and its institutions are focusing their efforts on expanding the pipeline to increase the flow of new students into their teacher preparation programs. Programs created by the USM institutions address four different target groups: high school students, addressed through teacher academies; community college students, addressed through the Associate of Arts in Teaching (AAT) programs; STEM (science, technology, engineering, and mathematics) majors, addressed through a new initiative that has been proposed by the USM; and career changers, addressed through new and continuing programs. Further information on each of these programs and the population of potential teachers they target is presented below: Teacher Academies: With the support of a $6 million dollar five-year federal grant from the U.S. Department of Education (2003-2008), the USM has worked in partnership with Baltimore City Public Schools, Towson University, Coppin State University, Baltimore City Community College and the Maryland State Department of Education (MSDE) to develop new programs in middle schools and high schools to encourage students to consider teaching as a career. The middle school program has established 17 Future Educators of America Clubs in middle schools in Baltimore City, with approximately 200 students participating. Over the last three summers, the Teacher Academy program at Towson University has trained 132 teachers from Baltimore City and around the state to teach a sequence of three high school courses and a course in field experience that are part of MSDEs Division of Career Technology and Adult Learning (DCTL) Career Pathways program. There are approximately 1,000 students enrolled in Teacher Academies this year, the second year of the program. Towson University will be offering credit from this Teacher Academy Program as early college under their general education requirements, substituting for their on-campus course, School and American Society. AAT Programs: AAT agreements have been negotiated over the past four years between all the two-year and four-year colleges and universities having teacher preparation programs in Maryland. These statewide agreements created new degrees at community colleges that provide seamless transfer for students who are interested in becoming teachers in the following fields: elementary education, mathematics, chemistry, physics, and Spanish. English and special education were approved this year (2007) and are currently under development by the community colleges. All AAT programs are expected to be offered in fall 2008. USM has facilitated the regular meetings of the AAT Oversight Council, which was charged with developing the new degree programs designed to recruit teachers in shortage areas from community colleges. Students who complete the AAT can transfer to any four-year college, public or private, directly into the teacher certification programs as juniors. The first AAT programs came online in 2003, and a preliminary analysis of the impact of the AAT programs indicates that graduates who transfer from the programs into four-year colleges have increased each year and have a success rate in teacher preparation programs equal to native students. This year, the AAT Oversight Council is developing a study of the effectiveness of the AAT programs, and USM is working on facilitating electronic transcripts to streamline the data collection and transfer process. STEM-Teach Initiative: Last year the Board of Regents initiated a program to recruit more Science, Technology, Engineering and Mathematics majors into the teaching profession. Funding provided in last years budgets was targeted for UMCP, TU, and UMBC to develop and enhance STEM teacher programs. USM is offering technical assistance to all USM institutions to apply for external funding to support STEM Teacher programs on campuses, including funding for UTeach models, funding for summer institutes, and funding for the development of new programs. The USM will coordinate a program combining scholarship incentives, new coursework, and summer internships to recruit science and mathematics majors into programs where they will earn teacher certification and majors in their fields Career Changers: Post-baccalaureate programs and Masters of Arts in teaching degrees are offered by USM institutions for those who major in various fields and would like to earn teacher certification after receiving their bachelors degrees. Among the Teacher Shortage Task Force recommendations under consideration by the task force is a recommendation that UMUC work with MSDE to provide flexibility in revitalizing their MAT program. In addition the Teacher Shortage Task Force is considering additional recommendations that would allow career changers to have expanded and more flexible opportunities for alternative certification. In addition to the above activities and programs, USM is adding capacity with expansion of new programs at home campuses (UMCP, UMBC, FSU, etc.) as well as at the regional centers. For the first time this past fall (2007), students attending the Hagerstown Center are eligible to complete a B.S. in Early Childhood/Elementary Education through Frostburg. While at the same time, to address specific content need areas, FSU, in partnership with Frederick and Washington Counties, is offering an alternative Certification program in the areas of Secondary Science and Mathematics teacher preparation. This program will help conditional certification teachers obtain professional certification. The new Teacher Education Technology Complex at Salisbury, scheduled to open in 2008, will also add capacity for teacher preparation. These creative partnerships have been supported and encouraged in USM meetings Deans and Directors of Teacher Education. Teacher Retention Many policy experts around the country and in our own state believe that the teacher shortages are a function of teachers dropping out of the system, even more than a problem of recruitment. Efforts that support teacher retention are potentially the most cost-effective and efficient work to be done in the current environment. Our strongest vehicle for promoting the retention of students in our teacher training programs (as well as promoting the retention in the profession of those young teachers who have graduated from our programs and are now teaching in our states classrooms) has been our investment in Professional Development Schools (PDS). These programs are a nationally recognized model, and have transformed the way we train teachers in Maryland. In 2007 USM commissioned the Jacob France Center to do a study of teacher retention among USM institutions. The careful study attempted to distinguish not only the gross retention rate for new hires, but also addressed movement within-state and out-of-state. Because Maryland state policy currently requires participation in PDSs, the Jacob France Center made comparisons of years 2004 (before PDS was a fully implemented requirement) and 2005. Their conclusions indicate that for both undergraduate degree recipients and graduate degree recipients, retention rates were higher for 2005 students than the 2004 students. Their study is an important first step in understanding issues around teacher retention. They pose additional questions for further study: What annual movement of PDS certified teachers occurs among Maryland Public school districts? What movement of PDS certified teachers occurs from Maryland to out-of-state employment in DC, NJ, PA, OH, VA and WVA? What observed annual earnings change (gain or loss) is observed for PDS certified teachers that leave employment in a Maryland School District? What percentage of PDS certified teachers accepts federal civilian employment? These questions among others merit further research. The best way to address the problems related to retention is to collect reliable information to guide policy decisions. We recognize that it is critically important to sustain the PDS programs as we move to expand enrollment and develop new programs, and for that reason we strongly support the continuation of the PDS funding currently being provided through MHEC. Sustainable PDS funding has been a key priority of the P-20 Leadership Council. In order to maintain these programs it is essential to have state money available as the federally funded grants expire. Towson University, which has developed one of the most impressive and successful PDS networks in the nation, has determined that it will need more than one million dollars to support its network of 40 Professional Development Schools involving more that 110 actual school settings. Professional Development Schools provide invaluable internship experiences for teachers coming through initial teacher preparation programs, and make the greatest contribution to teacher retention. USM supports PDSs through grants that average $30,000-$35,000 a year; however, unless PDSs receive support as a sustainable level, the costs will continue to be covered by student fees, providing another financial disincentive to prospective teacher candidates. Finally, as a note of caution, we stress that both recruitment into the profession and retention in the profession are affected by many external factors. Teachers report that working conditions, salaries, opportunities for advancement and professional development all factor into their decisions to stay in teaching, and college students consider these factors seriously when they weigh the decision to become teachers. 2. Request for Chancellors comment on USM institutions efforts to increase the capacity of their nursing programs (page 10 of the analysis). USM Response: As the Department of Legislative Services analysis shows, after making significant strides in increasing the number of nursing graduates for several years (the number of baccalaureate level nursing graduates produced went up by 50% in the period between FY01 and FY 06) the production of nurses at the baccalaureate level by USM institutions has been essentially flat over the past two years. Although this leveling off of growth was anticipated by the USM as some of its institutions, after rapid expansion earlier in this decade, bumped up against limitations to further growth created by a shortage of nursing faculty, appropriate laboratory and classroom space, or both, the USM and its institutions have continued to seek out creative and cost effective ways increase capacity within their nursing programs. These efforts have included the following: Creation of new nursing program options at the USMs regional center at Hagerstown. In FY 07, Towson University brought its undergraduate nursing education program to the Hagerstown Center. The impact of this effort was to not only provide an opportunity for baccalaureate-level nurse training in the previously underserved western area of the state but also to boost enrollment in Towsons undergraduate nursing program overall (Towsons undergraduate nursing enrollment grew by 58% between FY 06 and FY 07). For FY 08, Towson is planning to further expand nursing education options at Hagerstown by bringing out a graduate level nurse training program. The redesign of Bowies nursing program to boost enrollment and meet training needs. In FY 07, Bowie State University completed a restructuring of its undergraduate nursing program in order to enhance its attractiveness to students wishing to enter nursing. The result was a 39% increase in enrollments in Bowies undergraduate nursing program between FY 06 and FY 07. Bowie is working to continue its success under this new program by developing more partnership arrangements with Maryland community college nursing programs. Construction of a new nursing education facility at Coppin. At 160,000 square feet, the new Health and Human Services Building, scheduled to open in 2008, at will be the largest academic facility on Coppins campus. Housing nursing and other related health programs, the new facility will serve as the centerpiece of efforts to increase enrollments in Coppins nursing program. Expansion of undergraduate and graduate nurse training options through UMBs main campus in Baltimore and the USMs regional higher education center at Shady Grove. As the states largest public school of nursing and the center for graduate study in nursing, UMB is responding to the states nursing needs by expanding capacity in its undergraduate nursing programs at both its home campus and the USM center at Shady Grove. These actions are designed to respond to workforce needs that, by their nature, UMB is most able to solve, particularly the need for nurse educators. Over the past two years, for instance, UMB has launched programs at both the masters and doctoral level that are specifically designed to instill in graduates a high level of clinical competence and knowledge of patient care, ability to serve as leaders for nursing teams; and, perhaps most importantly, ability to serve as clinical instructors for schools of nursing. UMB also has entered into partnerships designed to respond to specific health care needs, such as that for nurse anesthetists in the state, or to help full its faculty needs (in FY 07, UMB announced an innovative partnership with the U.S. Army Nurse Corps that is designed to help address UMBs own nursing faculty shortage need by allowing ANC officers to serve as faculty at the school, at no cost to UMB, for up to two years.) Graduates of these programs are prepared to serve and lead at the highest educational, clinical, and executive ranks. To build upon these efforts, UMB, working in conjunction with MHEC, Maryland community colleges, and the states other four-year nursing schools, has developed a five-year enhancement plan that would double enrollment in the Universitys nursing program at Shady Grove, and continue enrollment expansion in its graduate nursing programs in Baltimore. This will greatly increase the supply of 1) new bedside nursing including clinical nurse leaders, 2) nurse practitioners, anesthetists, and other advanced specialty nurses, and 4) nurse faculty. Fiscal 2009 funding for this effort at UMB would be supported through Higher Education Investment Fund. Clearly, the USM continues to be keenly aware of the shortage of nurses Maryland faces, as well the responsibility it, as the states public higher education system, has to help address this critical workforce need. The examples above represent just a few of the ways in which the USM and its institutions are seeking to address this need, and increase the capacity of USM nursing programs, through new, expanded, or improved programs and facilities. Continued support for these activities through the FY 09 budget is critical. 3. Request for Chancellors comment on efforts to increase the retention and graduation rates of low-income and minority students (page 13 of the analysis) USM Response: Based on an initiative of a Board of Regents Workgroup, on November 14, 2007, the ĢƵ held a symposium on student success. The theme was The Compelling Reasons for Closing the Achievement Gap: State and Institutional Considerations. Its overarching goal was to examine systematically the achievement gap within the USM between low-income, first generation students and students of color as compared with the general student body and to develop an action plan for closing the gap. Numerous national and local studies have concluded the growing gap has damaging consequences for the nation if not successfully address. Maryland, like many other states and the nation as a whole, is at considerable risk if it does not successfully eliminate this gap. The symposium was a critical component and major step in the development of a meaningful agenda for systematically addressing this most challenging issue. The one-day symposium included ten-member teams led by the presidents of each institution in the USM, invited members of the legislature, representatives of community colleges, and the media. Participants listened to a presentation of the U.S. Under Secretary of Education, Sarah Martinez Tucker and a panel comprised of Regents, a legislator, school superintendent, USM campus president, and a former community college president. Dr. Clifford Adelman of the Institute for Higher Education Policy, an international authority on student achievement and success, responded to the panel offering Maryland, national, and international comparative information and data. The ten-member teams offered their perspectives on the issues during afternoon breakout sessions. The day closed with perspectives on a future course of action provided by a Regent and three USM presidents. The days proceedings, which were recorded, were placed on DVDs for each campus. Subsequently, the Board of Regents and I have set a USM goal of cutting in half by the year 2015 academic success rate gaps that exist within the USM based on income and race. Therefore, I have asked each campus to develop systematic plans with specific targets and timelines. Particular focus will be given to the USM achievement gaps between low-income and high-income students; under-represented minorities and majority students; and African-American males and white males. We have provided institution specific performance data regarding low income students, under-represented minorities, and African-American males. Each institution has been asked to use the proceedings from the symposium and analyze the data to determine the institutional specific factors that lead to the gaps in academic success rates and develop strategies that will place each institution on a path to cutting the gaps in half by 2015. In the spirit of shared governance, USM institutions have been asked to work with the institutional teams created for the November 14, 2007 symposium, along with other key constituents, including faculty, staff, and students to identify strategies and approaches to be utilized to reduce the achievement gaps. Institutional plans with implementation steps and time lines are to be submitted by April 4, 2008. Out goal is to begin these implementation steps by fall of 2008. 4. Chancellor should comment on budgetary priorities and how the $19 million transfer to fund balance will be accommodated in addition to programmatic enhancements (page 18 of the analysis) USM Response: Chancellor addressed budgetary priorities in the testimony. The growth in fund balance is addressed below. Fiscal year 2009 will represent the sixth year of the USMs fund balance improvement plan, an important initiative that protects the University Systems bond rating. The USM has a goal of transferring 1% of current unrestricted fund spending to the fund balance as a starting point for determining each presidents financial performance objective. This starting point, then, may be adjusted for unique institutional circumstances. The USMs institutions have, on the whole, been extremely effective in meeting annual targets for transfers to fund balance. Each year so far, the aggregate of the System institutions transfers to fund balance has exceeded the targeted growth in fund balance. The fund balance also protects the USMs capital investments through our ability to incur debt for both academic and auxiliary projects. 5. Chancellor should comment on the impact of the tuition freeze on accessibility, affordability and enrollment (page 30 of the analysis) USM Response: Chancellor addressed in testimony 6. Chancellor should comment on efforts being taken at the system and institutional levels to reduce each institutions GHG emissions and carbon footprint (pg.37) USM Response: In anticipation of the Maryland Green Building Council recommendation that the USM played a role in drafting, we adopted a LEED Silver certification standard for all new construction and major renovation. We opened the first LEED Gold building of its kind in Maryland at the Shady Grove Center, a facility that has quickly become a critical learning tool for our students, System planners, and other State agencies pursuing similar programs. In addition, all Facilities Master Plan (FMP) updates are required to address how each institution will incorporate environmental stewardship into its overall facilities. Most USM institutions have signed the American College & University Presidents Climate Commitment (ACUPCC) which pledges these institutions to neutralize their contributions to global warming over time. The rest are expected to join this year. Upon signing the commitment, a schedule of expected actions begins. Within the first two months, an institutional structure is established and at least two actions must be undertaken. One of these is the adoption of a LEED Silver standard for construction. Within one year, a complete inventory on greenhouse gas emissions is required to be reported. Within two years, a climate action plan with milestones and target dates must be adopted. Along the way, signatory institutions are required to report publicly on their progress. Four institutions report having established organizational structures on sustainability issues. More recent signatories are in the process of organizing such committees. Tangible actions undertaken include: adoption of energy-efficient appliance purchasing policies; campus transportation services; energy purchases from renewal sources; and systems for reducing waste. Institutions signing the commitment more recently either have already or are in the process of taking similar actions. While these actions will help reduce greenhouse gas (GHG) emissions, the long-term benefits of reduced energy use, decreased vehicle trips, lower water use, and the production of less refuse will help lower the cost of operating our facilities and reduce our impact on the community environment. Most USM institutions offer courses or programs focusing on environmental issues. UMCP is a national leader through its Center for Integrative Environmental Research (CIER) and UMCES leads in environmental studies of the Chesapeake Bay. External funding sources are constantly being sought to support research in environmental issues dealing with mitigation and adaptation.  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