House Ways and Means Higher Education, Technical, and Cultural

Budget Subcommittee

Wednesday, January 24, 2007

Dr. Andrew A. Sorensen, PresidentUniversity of South Carolina System

2

Mission

The primary mission of the University of South Carolina, a multi-campus public institution serving the entire state of South Carolina, is the education of the state's diverse citizens through teaching, research and creative activity, and service.

3

The University of South Carolina is a publicly-assisted coeducational institution dedicated to serving the entire state of South Carolina.

The University offers more than 350 degree programs, including baccalaureate degrees in 124 areas, 5 programs of study for associate degrees, master's degrees in 175 areas, doctoral degrees in 63 areas, and professional degrees in law, medicine, and pharmacy.

Enrollment on all campuses totals over 40,000. Of these, over 27,000 students are on the Columbia Campus, some 32 percent of whom are enrolled in graduate and professional programs.

USC Overview

4

USC Campuses

Flagship Institution: USC Columbia

Senior CampusesUSC AikenUSC BeaufortUSC Upstate

Regional CampusesUSC LancasterUSC SalkehatchieUSC SumterUSC Union

5

USC System EnrollmentFall 2006 Headcount

USC Columbia 27,390

USC Aiken 3,380

USC Beaufort 1,386

USC Upstate 4,608

USC Lancaster 1,195

USC Salkehatchie 883

USC Sumter 1,088

USC Union 363

University Total Headcount 40,293

6

USC System State Economic ImpactThe USC campuses have over 215,000 living alumni, more than half of whom remain in South Carolina

Alumni have a $2.3 billion annual impact on the state

By creating a vibrant, knowledge-based community, USC is a powerful engine for creating high paying jobs and raising per capita income throughout the state

Source: Moore School of Business Division of Research

7

Grant FundingUSC received $173.3 million in funding for research, public service, and training projects in fiscal year 2005-2006, a 32% jump over 2002-2003

ResearchThe Carnegie Foundation for the Advancement of Teaching has designated the University of South Carolina as an institution of “very high research activity” USC is one of 62 public and 32 private research institutions—and the only university in South Carolina—to earn the distinction

Fund RaisingPrivate gifts were $52.3 million in fiscal year 2005-2006, an increase of 29.44% over 2002-2003

Scholarships and FellowshipsUniversity students have won 322 national awards earning approximately $9 million for advanced academic study since 1994. Included are Marshall, Rhodes, Truman, NSF, Fulbright, Goldwater, Madison, Cooke, and Javits Scholars among others. During the 2005-06 academic year, our students received 43 awards and more than $1.3 million

USC Columbia Highlights

8

The University of South Carolina is the state flagship university with the highest percentage of African-American student enrollment in the nation. Research by the Journal of Blacks in Higher Education shows African-American students made up 15% of USC's enrollment in 2004, the latest year available. The JBHE also ranks USC eighth in the nation in percentage of African-American faculty at a state flagship university.

The Moore School of Business undergraduate international business program (fall 2006) is ranked No. 1 in the nation and No. 1 among public universities for its graduate international business program (spring 2006)

The Wall Street Journal and Harris Interactive's joint business school rankings list the Moore School at No. 49 nationally and No. 7 worldwide in international business in fall 2006

The Princeton Review's 2005 ranking of institutions of higher education, The 357 Best Colleges, ranked Carolina as the top public university for academics in the Southeast

USC's School of Law is ranked in the top 100 in U.S. News and World Report's rankings of American law schools (spring 2006)

The Arnold School of Public Health's Ph.D. program in health education is ranked in the top 10 nationally

The master's program in the College of Nursing is ranked No. 58 in the nation

USC's doctoral program in school psychology is ranked No. 3 in the nation

University 101 programs for freshmen ranked in the category “Programs to Look For”

School of Library and Information Studies program in school library media ranked No. 2 and health librarianship ranked No.8 (spring 2006)

USC's Pediatrics Residency Program graduates score 3rd in the nation on the Pediatrics Board Exam, according to the American Board of Pediatrics

USC Columbia Highlights

9

USC's key research initiatives - nanoscience and technology, health sciences, future fuels, and the environment—will be focused in a unique new intellectual Ecosystem known as Innovista. This environment will be designed to stimulate ground-breaking research, join public and private sector researchers and provide fertile ground for commercial businesses.

The initial economic impact of Innovista is estimated to be $430 million.

Carolina's future will be shaped by three separate blocks that will house the first phase of the University's research initiatives which will cover 5 million square feet and will cost $141.2 million. A second phase could include two new buildings in Columbia and one each on the campuses of the Greenville Hospital System and the Medical University of South Carolina, USC's research partners.

Innovista

10

Research Centers of Economic Excellence The goal of the centers program is to recruit world-class researchers through the establishment of endowed professorships at South Carolina’s three research universities: USC, the Medical University of South Carolina (MUSC), and Clemson University. These universities are working collaboratively to bring top talent to the state and drive the engine that will power the state’s economy.

This unique incentive program, which establishes partnerships with private sector and state funds, enables USC, MUSC and Clemson to hire top professors whose work can spark economic development and improve the quality of life of all South Carolinians.

Working closely with the General Assembly and the Governor, USC is securing nationally eminent scholars in order to sustain the strong legislative commitment to the Centers of Excellence programs.

11

The University of South Carolina was among several universities cited as an "up and comer" in the November 10, 2006 edition of The Wall Street Journal. Titled "Beyond Berkeley," the article about the increasing selectivity of state universities, cited the university for improving the caliber of students and academic offerings. "With a strong business school and designated by the Carnegie Foundation as an institution of very high research activity (its highest classification), the university has seen applications rise 57 percent over the past decade," the article stated.

According to the Wall Street Journal, more students are recognizing the value and outstanding education that they can get at a state university, and are passing up private schools, including Ivy League institutions, for state schools where they can get a great educational bargain.

“... At the University of South Carolina's Columbia campus, average combined SAT scores of incoming students were 61 points higher last year than five years earlier. Its acceptance rate fell to 63% from 76% in 1995, while the number of students admitted increased by nearly 2,000.” - The Wall Street Journal

Wall Street Journal Cites USC as ‘up and comer’

12

USC received nearly 14,000 applications for the Fall 2006 class SAT score is a record high with an average of 1171, an increase of 6 points over

Fall 2005 Of the South Carolina residents, 98.5% receive state scholarship aid Students are from 40 states, the District of Columbia and 14 foreign countries The 2006 freshman class includes:

32 National Merit, National Achievement, and National Hispanic Scholars 67 Valedictorians 336 Palmetto Fellows1,678 Life Scholars 312 Honors College students 552 Capstone Scholars 16 sets of twins

Fall 2006 Freshman Class

13

Fall 2006 Headcount Enrollment

Undergraduate 18,362

Graduate 7,302

Professional

Medicine – MD 731

Pharmacy 377

Law School 709

Total USC Columbia 27,065

Degrees Award FY 2006

Associate 5

Baccalaureate 3,082

Post-Baccalaureate 53

First Professional 392

Masters 1,263

Specialist 34

Doctorate 164Total USC Columbia Degrees Awarded 4,996

Student Profile

Minority Male Female

Undergraduate 19.89% 46% 54%

Graduate 27.48% 32% 68%

First Professional 14.79% 46% 54%

Faculty

Professor 452

Associate 338

Assistant 290

Librarian 62

Part-time 549

Other 311

Total USC Columbia Faculty 2002

USC Columbia Statistics

Top Five States(by enrollment)

South Carolina North Carolina Georgia Virginia Maryland

14

Faculty Excellence InitiativeThe Faculty Excellence Initiative (FEI) is targeting the recruitment of new tenure/tenure-track faculty members to the University of South Carolina for six years. Begun in 2003-2004, this program responds to strategic initiatives that will advance the national profile of USC. USC received new state appropriations of $4,000,000 for FY2007. Additional state funding requested for FY2008: $4,800,000 – Recurring

Freshwater Environmental Initiative This research will provide for K-12 research collaborations as well as undergraduate and graduate research opportunities. Funds are required to support project leaders, staff, graduate assistants, transportation, laboratory supplies, and field trips for K-12 students. USC received recurring funding of $500,000 and non-recurring funds of $1,500,000 for FY2007.Additional state funding requested for FY2008: $1,500,000 – Recurring

OneCarolinaOneCarolina is the University's multi-year initiative to replace its outdated administrative computing applications, including Student Information Systems, Finance, Sponsored Programs and Human Resources into one easily-accessible, Web-based system. Additional state funding requested for FY2008: $3,032,920 - Recurring

SC Lightrail (SCLR)The South Carolina Commission on Higher Education has submitted a request on behalf of the three research institutions for $4.5 million for funding of the SC LightRail. SCLR is envisioned as a broadband, high-speed optical network that will link research partners Clemson University, Medical University of South Carolina, and the University of South Carolina with their hospital partners: Greenville Hospital System, Spartanburg Regional Health System, Palmetto Health, and the MUSC Hospital Authority. SC LightRail is a critical component of an economic development plan focused on building the knowledge economy. Additional state funding requested for FY2008: $1,500,000 - Non-Recurring

USC Columbia – Funding Request for FY2008

15

The USC School of Law is the only fully accredited state supported legal education program in the State of South Carolina. It is essential for the University to have an adequate facility suited to the technological and instructional needs of current and future students of law. The existing law school facility was constructed in 1970 and contains asbestos as well as insufficient facilities to accommodate the changing educational needs. The proposed new facility will contain approximately 250,000 gross square feet of state-of-the art space with generous student study areas, an ample and computerized library, and enhanced classrooms with complete audio and video capabilities. The facilities will provide several moot courtrooms for realistic training of future attorneys, an auditorium and other areas for smaller meetings.

USC School of Law - Capital Project Request

Estimated total funding: $65 millionFunding received to date from State: $10 millionProjected funding requirements, CIB request: $20,000,000

16

Gibbes Green – Capital Project Request

The Gibbes Green area on the University campus houses a number of historic facilities at Carolina. Sloan College and Calcott College have been restored. With this current request, complete renovations of the Petigru and LeConte Colleges can be undertaken. This space, when renovated, will be the home of the College of Mass Communications and Information Studies’ School of Journalism.

Estimated total funding: $61 millionFunding received to date from CIB: $9.9 millionProjected funding requirements, CIB request: $20,000,000

17

The Darla Moore School of Business at the University of South Carolina is consistently ranked among the best in the nation. The University proposes to address a variety of program needs with the addition of a graduate studies building of 50,000 square foot addition on the north side of the building renovating the rest of the facility. The new facility will provide new graduate school space, with the undergraduate program filling in the space vacated by the graduate school.

Graduate building addition: $20.7 millionGift and Institutional funding: $10.7 millionProjected funding requirements, CIB request: $10,000,000

Moore School of Business–Capital Project Request

18

FTE PositionsThe University of South Carolina is requesting additional FTE slots in order to successfully complete the Faculty Excellence Initiative and respond to steadily increasing enrollment across the USC system. This year 151 new faculty were added in Columbia, along with 65 new faculty in the senior institutions at Aiken, Beaufort, and Upstate, and another 18 new faculty in our regional

campuses at Lancaster, Salkehatchie, Sumter, and Union.

Parity FundingA high priority goal is to annualize the FY2006-2007 non-recurring operating funds for parity to the senior and regional institutions.

Law School 4% Fee WaiverUSC requests that Proviso 72.102 which allows the USC Law School to award fee waivers to law students of no more than 4% be codified.

USC Funding Request for FY2008

19

Centers of Economic ExcellenceThe University of South Carolina supports retaining the full $30,000,000 in funding from the Education Lottery for the endowed chairs program.

One Voice, One PlanUSC supports the One Voice, One Plan request from the South Carolina Hospital Association to alleviate the nursing shortage in the state. This request will provide funding for faculty to increase the output of nurses, stimulate new teaching methods and will also provide scholarships, grants and loans for nursing students. The initial request is for $11,417,000 in recurring funds.

EPSCoRUSC supports an increase for the Experimental Program to Stimulate Competitive Research to fund the IDeA program – Institutional Development Awards. Currently EPSCoR is funded by state appropriations totalling $1,942,536. An increase to $3,000,000 is requested to enable EPSCoR to become more competitive in securing federal research funds. These research funds aid the growth of South Carolina’s knowledge-based industries.

USC Funding Request for FY2008

20

USC Senior CampusesThe Senior Campuses at Aiken, Beaufort and Upstate have a combined enrollment of over 9,300 students and have an economic impact of over $252 million and provide 3,656 jobs. These three campuses receive local funding from their counties of over $3.8 million annually. In 2005-2006, the Senior Campuses received approximately $4.7 million in grant funding.

In August 2005 the USC Beaufort South Campus opened the first building of its on-campus student apartment complex and welcomed residential students for the first time, including students from as far away as Ohio and Pennsylvania and as nearby as Hilton Head Island and Estill. This housing is the result of a public-private partnership. With the addition of the South Campus buildings, new faculty, and approval of eight degree programs, USC Beaufort has experienced the third consecutive year of double-digit enrollment growth.

Dr. Thomas Hallman, Chancellor

Dr. Jane T. Upshaw, Chancellor

USC Aiken offers more than 30 degree programs and majors to 3,380 students and is ranked number one among public, comprehensive colleges in the South for 2007 by U.S. News & World Report.

Beyond academic offerings, USC Aiken has established partnerships with its community. The Ruth Patrick Science Education Center supports math and science programs in eighteen school districts and since its opening, over 350,000 persons have participated in its programs. USC Aiken has just hired Global Spectrum to manage its Convocation Center, set to open in April 2007. This multi-purpose facility was built with a combination of state, local county, private and university resources and will be a major source of programs for the community.

Dr. John C. Stockwell, Chancellor

USC Upstate was one of thirteen winners among 168 applicants for a Federal HUD grant from the Community Outreach Partnership Program to lead a team of community agencies in Spartanburg community initiatives. In addition to its community outreach initiatives, the University has developed several new academic programs that compliment its metropolitan mission, including the Engineering Technology Management Program.

USC Upstate leads all ten of the State's teaching sector universities in transfer activity among the technical system and regional campus institutions, a consequence of the institution's model work indeveloping articulation agreements with lower division campuses.

21

USC Aiken - HighlightsRanked the Top Public Comprehensive College in the South in 2007 by U.S.News & World Report. Marks the ninth consecutive time USC Aiken has been ranked in the top three.

Undergraduate Headcount of 3,241 StudentsGraduate Headcount of 139 StudentsTotal FTE Enrollment of 2,749

29.1% Minority Enrollment

8.4% Out-of-State Students

14.7 Student Faculty Ratio

USC Aiken students come from:46 counties in South Carolina29 states 20 foreign countries

More than 500 degrees awarded annually

Offering bachelor’s and master’s degrees with the largest number of graduates in business, education, and nursing

Hold highest accreditation for 3 professional schools and graduate program in psychology

Economic impact exceeds $100 million

Emphasis on Community Partnerships including: Ruth Patrick Science Education Center Art, Music and Theatre Outreach to K-12 Students Cardiac Rehab Program through Wellness Center Lifelong Learning programs for Senior Citizens

22

Operating Funding Requests - $1,247,255Annualization of FY2006-2007 non-recurring operating funds - $599,237

CHE Investment in Quality Outcomes - $648,018

Capital Project Request - $12,200,000

New Academic Center - $12,200,000 Will address critical classroom and office needs for academic programs

in the humanities, social sciences and mathematics and house Academic Success Center. 50,000 sq ft, 2.5 story academic building

Based on SCCHE CHEMIS data for Fall 2003 and Fall 2004, USC Aiken has the highest classroom utilization rate among public 4-year institutions.

USC Aiken - Funding Request

23

USC Beaufort - Highlights

Lottery Funding (05/06) Scholarships - $ 771,952 Technology - $ 294,054

Local Funding (05/06) Beaufort County Millage - $ 2,240,437 Jasper County Millage - $ 241,000

Grant Funding (05/06) $ 743,9210

100

200

300

400

500

600

700

800

900

1000

2002 2003 2004 2005 2006

Fall Terms

SACS accredited baccalaureate degreesBusiness Management Early Childhood EducationEnglish Hospitality ManagementHuman Services Liberal StudiesBiology PsychologySpanish HistoryNursing (to begin Fall 2007)

FTE enrollment has increased over 47% since Fall 2002.FTE

Tuition at USC Beaufort is the lowest of all public four-year institutions in South Carolina.

24

Operating Funding Requests - $706,666Annualization of FY2006-2007 non-recurring operating funds - $502,175

CHE Investment in Quality Outcomes - $204,491

FY 2007-2008 Below the Line Funding RequestsPenn Center Early Childhood At-Risk Family Initiative - $210,240

Provide comprehensive child development and family support services to low income families (increase of $30,000)

Pritchards Island - $270,000

Establish a learning laboratory on coastal ecology, beach re-nourishment, and the building of protective groins

Capital Project RequestSouth Campus Academic Building - $6,327,728

USC Beaufort – Funding Request

25

USC Upstate - Highlights

Changes from 1995 to 2006 Total Headcount Increase 37% FTE Enrollment Increase 62% Full-time Students Increase 83% Minority Enrollment Increase 143%

Student Population in 2006South Carolinians 94%Undergraduates 99%Minority Group Members 33%Males 34%Females 66%Full-timers 83%LIFE scholarship Holders 988

First-time Freshmen for 2006Average High School GPA 3.58Average SAT 1,015

Transfers for 2006Technical Colleges Transfer 242

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1995 2000 2006

Headcount and FTE Enrollment

Total FTE Total Headcount

26

Operating Funding Requests - $2,811,354 Annualization of FY2006-2007 non-recurring operating funds - $1,877,675CHE Investment in Quality Outcomes - $933,679

“Teaching Excellence” initiative -$933,679 Investing in additional facultyAdvancing student persistence and graduationUpgrading learning environments

Capital Project Requests - $21,800,000Information Resources Complex/Library - $16.8 million SACS “recommendation” … provide expanded library

$1 million in CIB previously receivedPreliminary design and program study complete

Classroom and Student Support Renovation - $5.0 millionConverts vacated spaces in old Library and other areas for classrooms, faculty offices and support servicesAlso includes upgrades to the related building systems

USC Upstate - Funding Request

27

USC Regional Campuses

The Regional Campuses are primary University entry points for students who represent the first generation in their family to attendcollege as well as for adult learners who have decided that it is timefor their own formal education.

USC SumterDr. Les Carpenter

USC UnionDr. Hugh Rowland

USC LancasterDr. John Catalano

USC SalkehatchieDr. Ann Carmichael

28

USC Regional Campuses - Enrollment

The four Regional Campuses serve over 3,500 students - 36% of these students are minority, 65% are women and 99% of students are from South Carolina. More than 50% of Regional Campus students attend school part-time as many hold jobs, serve in the military and/or have children.

Five Year Headcount Enrollment for Regional Campuses

0

200

400

600

800

1,000

1,200

1,400

Fall 2002 Fall 2003 Fall 2004 Fall 2005 Fall 2006

Lancaster Salkehatchie Sumter Union

29

USC Regional Campuses - HighlightsUSC LancasterFall 2006, enrolled largest freshman class in the history of USCL, a 10% increase over Fall 20052006 graduates of the newly expanded nursing program had 100% passing rate on the SC State Board of Nursing examRecruited a stellar group of new faculty in Fall 2006 to include PhDs from universities such as Duke, Georgia Tech, Pittsburgh, DePaul, USC and North TexasInitiated a new program of Native American Studies and established ties to the Catawba Indians of South Carolina. A $10,000 Duke Power grant enabled the campus to sponsor a Native American Studies Week.USCL Educational Foundation exceeded $4,000,000 in total scholarship endowmentsGregory Health and Wellness Center continues to maintain a membership of over 2,000 community membersBundy Auditorium was remodeled and the new Performing Arts Series started its first seasonOver $350,000 was gifted to the campus for the Richards Tennis Complex renovationsReinstatement of the men’s golf program

USC SalkehatchieAwarded over one million dollars in grant funding and/or private supportDeveloped an innovative approach in conjunction with the USC College of Nursing to address the nursing shortage in the rural Lowcountry that has the potential to be a model for the state and beyond. Received grant funding from The Duke Endowment through local hospitals to support local start-up costs.Celebrated 40th anniversary with a slate of activities which included an art and lecture series, exhibits, concerts, musical presentations, and an alumni danceDr. Roberto Refinetti was a recipient of the Carolina Trustee Professorship Award for 2006Dr. Arthur Mitchell was named one of the eight finalists in the Governor’s Professor of the Year competitionThe TRIO program staff hosted the first annual International Festival on campus, featuring several faculty as well as guest lecturersReinstatement of the intercollegiate baseball program as well as the addition women’s softball, women’s soccer, and women’s volleyballImplemented the creation of a new science lab in newly-acquired facilities on the Walterboro campus

30

USC Regional Campuses - HighlightsUSC SumterThe 2006 Governor’s Professor of the Year, Dr. James PrivettThe establishment and first awarding of USC Sumter’s Outstanding Scholarship Award, an annual award to the outstanding faculty scholar/researcherYear long observances of the Sumter Campus’ 40th anniversary which included the second formal homecoming ceremonies in the history of the campus, a community-wide open house and the construction and dedication of Founders GroveReinstatement of intercollegiate athletics after an absence of 27 yearsRe-introduction of dual enrollment and PACE courses at many area high schools including Sumter High School, Thomas Sumter Academy, Cardinal Newman, and Camden Military AcademyImplementation of the USC Sumter Junior Scholars Program, a reward and motivational program for middle school students in the top 12% of their classImplementation of the USC Sumter Scholars Program, a reward and motivational program for high school seniors who are in the top 12% of their class

USC UnionHired new DeanYear long observances of the campus’ 40th year anniversary that included celebrations such as Founders’ Day, Junior Scholars, Awards Day and Black History CelebrationBegan a dialogue with officials from the City of Union and Union County to address the needs of new industry moving into the Union County area. Based on these discussions, federal grant funds have been obtained to create an off-campus teaching site at a robotics center wherein USC Union will partner with Spartanburg Community College to deliver coursework and training to corporate employees.

31

Palmetto Programs are a new collaboration of campuses of the University of South Carolina system inspired by the Commonwealth College of Pennsylvania State University. It is comprised of faculties from the University’s four Regional Campuses and the Aiken, Beaufort, Columbia and Upstate campuses. In a cost-effective manner, it provides upper-division courses and select bachelor degrees at the regional campuses incorporating the collective faculties among the campuses which have been serving South Carolina for nearly half a century.

The Bachelor of Arts Degree in Liberal Studies, offered via a combination of live and distance formats, will give students statewide access to a baccalaureate degree specific in its requirements while flexible enough to allow them a level of individual choice in curriculum design.

This program has potential to enhance inter-institutional cooperation- especially with South Carolina’s Technical Colleges.

Relationships that will result from this proposed program will make maximum use of existing institutional resources as personnel from the four Regional Campuses (in addition to Continuing Education in Columbia) will be combined to create a delivery mechanism far superior to its components individually.The BLS (120 hours) is comprised of general education (41-50 hours), a major option (36 hours), a cognate (12 hours), and electives (22-31 hours) and a choice of three major options.

USC Regional Campuses

32

Operating Funding Requests - $1,525,172

Annualization of FY2006-2007 non-recurring operating funds - TOTAL $817,475

USC Lancaster $650,000USC Salkehatchie $100,000 USC Sumter $51,269USC Union $16,206

CHE Investment in Quality Outcomes – TOTAL $557,697

USC Lancaster $211,309USC Salkehatchie $122,696 USC Sumter $161,688USC Union $62,004

USC Regional Campuses – Funding Requests

Below the Line Funding Request - $150,000

USC Salkehatchie Leadership Institute - $ 250,460 (Increase of $150,000)

33

USC Regional CampusesSummary of Capital Projects - Priority One Requests

USC LancasterCampus Renovations

USC SalkehatchieWalterboro Classroom Building & Science Building Renovation USC SumterInstructional Laboratories Building

USC UnionFacility Upgrades TOTAL USC Regional Campuses

$ 4,110,000

$ 2,442,960

$ 11,825,000

$ 700,000

$ 19,077,960

34

USC System Summary – FY2008 Executive Budget Proposal

USC SystemTotal Estimated

Impact

USC Columbia (includes School of Medicine) ($8,678,337)USC Aiken (734,956)USC Beaufort (685,381)USC Upstate (2,153,006)USC Lancaster (1,004,747)USC Salkehatchie (201,630)USC Sumter (88,082)USC Union (16,806)

Total: ($13,562,945)

Base funding reduction and elimination of FY2007 supplemental appropriations

35