Budget Items and Key Topics

REAL. AMAZING.University Advancement | John Mielke, Director of Strategic Communications | 262 595 3226 | [email protected] | www.uwp.edu

2015-2017 BIENNIAL BUDGET

BUDGET ITEMS

1

The University of Wisconsin-Parkside’s position on 2015-17 biennial budget items is consistent with the University of Wisconsin System’s position. We recommend three key changes to the budget currently under legislative consideration:

1. Reduce the amount of the proposed funding cut to the UW System;

2. Create a dedicated funding source for the UW System; and

3. Introduce operational flexibilities that give UW System and campus leaders the tools they need to operate sustainably and efficiently.

The following “Budget Items” documents serve as a tool for stakeholders to understand the need for each of the three recommended budget changes, with specific reference to the potential impact on UW-Parkside.

OVERVIEW

Updated 04/10/15



BUDGET ITEMS

2

REDUCTION TO PROPOSED CUT

Q: What does the proposed $300 million cut mean to UW-Parkside?

A: The proposed $300 million cut — the largest proposed biennial budget cut to the UW System in its history — could result in a $3.5M reduction in state support to UW-Parkside. This cut amounts to approximately 67% of the reductions in state support (totaling $5.3M) that UW-Parkside has endured over the past five years.

Q: The proposed cut is what percentage of the UW-Parkside budget?

A: $3.5M is a 17% reduction in what the state contributes to the operational budget of UW-Parkside. The percentage changes to 13% when factoring in state-funded debt service on UW-Parkside buildings. Adding student tuition and fees changes the percentage to 7%. Including all funding sources changes the percentages to approximately 3%.

Q: What does $3.5M fund at UW-Parkside?

A: The proposed reduction of $3.5M in operational funding equates to:

• Enrollment of 700 additional full-time students

• The total budget for one college

• 50% of the budget for all administrative services

• Supplies and expense budgets for software, licenses, library resources, maintenance contracts and more



BUDGET ITEMS

3

DEDICATED FUNDING SOURCE

Q: Why is a dedicated funding source needed?

A: A dedicated funding source would help end the counterproductive price swings and spikes that students have endured over the last two decades. A reliable, dedicated revenue source for a more autonomous UW System will allow us to develop and hone long-term pricing and financial models.

UW-Parkside has a responsibility to students and families to provide the highest level of transparency and predictability of what a UW-Parkside education will cost as they plan for students’ future opportunities. A dedicating funding source for the UW System would make investments in higher education more predictable and stable for students and families.

Q: How will UW System benefit?

A: A dedicated funding source tied to the Consumer Price Index will help create a more predictable funding structure. UW System and the universities will be able to conduct long-range planning with greater certainty, and will be able to work proactively to respond to financial projections.



BUDGET ITEMS

4

OPERATIONAL FLEXIBILITIES

Q: What operational flexibilities will be the most beneficial?

A: There are six key flexibilities that the UW System believes would be the most beneficial to campus operations and effectiveness:

• Budgeting: Block-grant funding supported by the dedicated funding stream, giving Chancellors the tools to effectively manage all of their resources.

• Human Resources: Flexibility to allow the Board of Regents to establish competitive pay plans and give Chancellors more freedom to effectively recruit and retain high-quality, diverse faculty and staff.

• Capital Planning: Flexibility to streamline the planning and design of buildings.

• Construction: Greater opportunity to complete projects under cost and ahead of schedule by managing more of our own projects.

• Financial Management: Flexibility to better manage funds earned on our campuses.

• Purchasing and Procurement: Flexibility to pursue specialized materials, supplies and equipment unique to higher education through appropriate procurement processes and, when possible, through national alliances or coalitions or less-costly local options.

These flexibilities would increase the UW System’s agility and responsiveness to ever-changing financial and operational demands. Legislators need to be willing to explore alternatives to create a sustainable, efficient UW System business model.



KEY TOPICS

5

Over the past two biennial budget cycles, legislative discussions related to University of Wisconsin System funding and policy have included conversation on key topics related to:

1. Fiscal stewardship and use of UW System resources;

2. Potential tuition increases; and

3. The role of faculty in teaching, research and service to the university.

The following “Key Topics” documents are provided as a reference to stakeholders engaged in advocacy conversations, responding to the most frequently asked questions and providing information specific to the University of Wisconsin-Parkside.

OVERVIEW

Updated 04/10/15



KEY TOPICS

6

Q: If the state grants the UW System increased operational flexibilities, including the ability to set tuition, will the UW System immediately raise tuition, reducing the affordability of public higher education in Wisconsin?

A: The UW System understands the market pressures to keep tuition affordable. With a predictable, dedicated funding source, the UW System would be able to project tuition costs over a period of time and ensure that tuition remains both affordable for students and competitive with other educational institutions.

TUITION

FISCAL STEWARDSHIP

Q: The UW System has close to $1B in reserves. Why can’t they use these to cover the proposed cut?

A: The majority of the reserves are encumbered for specific purposes. In 2013, the Joint Committee on Finance required the UW System to establish a reserve balance policy, including reserve limits, along with a new reporting structure. UW System is in alignment with the reserve limits and has adopted the reporting structure approved by the Joint Committee on Finance.

UW-Parkside, with a total budget of approximately $100M, has reserves of less than 3%.



KEY TOPICS

7

ROLE OF FACULTY

Faculty are central to providing high quality education across the UW System. We are proud of UW-Parkside faculty in their combined role of teaching, research and service.

UW-Parkside students benefit from more than 120 full-time faculty members who hold a Ph.D. or equivalent and teach all levels of classes.

UW-Parkside faculty members teach approximately 24 credits each academic year, as do faculty members at all UW System comprehensive universities.

UW-Parkside faculty engage in research that is vital to the teaching and learning of undergraduate students. Recognized as a “high-impact practice,” undergraduate research increases student engagement in learning, supports persistence to graduation and contributes to students’ success in securing jobs or graduate school positions.

UW-Parkside faculty members engage students in research and scholarly work that benefits both the region and their academic fields, such as: • Creation of a mobile app for Kenosha Area Transit bus schedules• Genetic analysis of algae and impact on algae growth and development• Research on sediment and glacial processes in moraines of the Lake

Michigan region

UW-Parkside faculty members are committed to serving students, the campus and the broader community. Whether serving as advisors to students, participating in academic and curriculum development or lending expertise to community or civic organizations, UW-Parkside faculty take their role of service seriously. Current service activities include:

• Development of UW-Parkside’s curriculum in the innovative Flex Option degree program

• Development of new academic courses and degree transfer (articulation) agreements with educational partners

• Leadership in community environmental programming at the Root River Environmental Education Community Center (REC) in Racine

• Supporting student engagement in academic areas and campus life through advising UW-Parkside student organizations

Documents

Budget Items and Key Topics