Almost every day, we hear horror stories of students who have dropped out of college because they could no longer afford the cost. In mid-February of this year, students at the University of Colorado dressed in black and held a mock funeral for higher education. Several held signs with how much they owed in bright red. One student interviewed on television owed $50,000.
It is not uncommon for private universities to cost $50,000 or more, most of it just for tuition. Many public universities cost $40,000 for out-of-state students and $30,000 or more for in-state, most of this too represents tuition and fees. Add in books and the cost of living on campus and public higher education is becoming unaffordable to a growing number of Americans.
Six-of-ten students who graduate from public four-year colleges in the U.S. leave college with a combined debt (loans and credit cards) of $20,000 or more. If they go to graduate school, it is common to leave with debts of $50,000-75,000 or more.
And, the recession has made it worse. As the budget crunch has forced states to cut funding to public universities, resulting in higher tuition rates. States can't afford to continue to fund higher education institutions at the rate they did a few years ago, let alone a few decades ago.
In the University of Houston system state support has gone from 60% of total revenues 20 years ago to barely 25% today. Monies from tuition and fees now account for 60% of those revenues!
While financial aid has grown in absolute numbers, most financial aid (approximately 70% nationally) is in the form of loans. So, student indebtedness has grown and is compounded by the growing use of credit cards, as college students increasingly rely on credit cards to pay for books, food, clothing, and other expenses.
A recent report by Public Agenda and the National Institute for Public Policy and Higher Education, Squeeze Play 2010, found a drop in public trust of higher education. In 2007, 43% of those interviewed felt that colleges care about education and providing a quality educational experience for students. In 2010, that number had dropped to only 32% of respondents. Equally bad, in 2007, 52% of respondents felt that colleges were more like businesses and mainly care about the bottom line, today that number has grown to 60% of those surveyed.
Perhaps even worse, the report discusses what they term a 'misery index.' In 2000, 45% of those surveyed felt that the vast majority of qualified and motivated students have the opportunity to attend college. Today, that number has dropped to 28% of those surveyed. In the same ten year period, the number of people who felt that a college education is necessary for success in today's work world rose from 31% to 55%.
So, more people believe college is essential, but a huge portion feel that college is no longer affordable and that many qualified student will be unable to attend college. There is good reason to be concerned. According to a 2009 report by the State Higher Education Executive Officers (SHEEO), from 1970 to 2005, CPI-adjusted tuition and fees at 4-year public universities rose 177% (although net revenue rose only 140%).
Between 2005 and 2010, tuition and fees at public universities grew by twice the rate of inflation. According to the National Center for Public Policy and Higher Education, between 1982 and 2007, family income only rose by 147%, the CPI rose by 106%, yet tuition shot-up by 439%. In the same period, the percentage of household income needed to send a child to college rose from 20% to 28%.
Meanwhile, the amount of total college costs covered by scholarships and grants declined. Pell Grants covered 52% of the cost of college (tuition, fees, book, and room and board) for qualifying freshmen in 1987-88, but only 32% in 2009. During the same period, the percentage represented by student loans doubled. State aid also declined relative to the rising cost of tuition. Between 2001-02 and 2006-07, average state financial aid grew by 28% from $480 to $613, but average state tuition rose from just over $3700 to nearly $6,000 (a rise of 54%).
Moreover, states are reducing need-based aid, while increasing the portion of merit-based aid or, as in Texas, pairing need with merit. In 1987-88 only 17% of state-aid was merit-based, today that percentage has increased to 28% of all state-based financial aid. Financial aid is diminishing relative to cost precisely at a time when more Americans need college degrees and more students are Hispanic, first-generation, and from poor and working class families.
There are no easy answers. State appropriations are being drastically cut. Most states survived the recession with deep cuts and by using stimulus dollars to fill big holes in the budget. The picture will get worse in 2012 when stimulus dollars disappear. So, universities raise tuition, and students are forced to work more hours and take more loans to obtain a college degree.
Even so, America must confront the reality that higher education is becoming unaffordable to a large portion of Americans. We cannot turn our backs on working class and middle class Americans. America grew strong after World War II because of the GI Bill. Many veterans, including my father, earned their high school diploma and many went to college, because of the GI Bill. To keep America strong, we must have more Americans obtain college degrees and we must make the path to college affordable.
Similarly, universities must commit to keeping down the costs of higher education and to increasing need-based scholarships. States and the federal government must find ways to increase Pell Grants, and other need-based financial aid.
Next year, tuition and fees at the University of Houston-Downtown will increase by $113 for students taking 12 hours. The tuition and fee increases will be used to promote student success, so that we can increase need-based scholarships, hire more faculty and staff (particularly those in student services), and maintain or expand programs that support students (such as supplemental instruction and mentoring programs).
No one wants to raise tuition, particularly at UHD, where we serve mainly working class and first-generation college students. Nearly 90% of our students are eligible for some form of financial aid. Our student body is 37% Hispanic and 28% African American and the vast majority come from households earning less than $40,000.
Like every public university in Texas, UHD also had to make state-mandated cuts of 5% for both FY2010 and FY2011. Still, we are committed to keeping UHD affordable and to promoting student success. UHD remains one of the most affordable four-year public universities in Texas. UHD is one of the best values in higher education. It provides a high-quality education at a low cost. And, we intend to keep it that way. But, even more importantly, we pledge to make it an institution known for both opportunity and student success.
Saturday, February 20, 2010
Tuesday, February 16, 2010
Our Faculty and Staff Do Great Things
In my last post I gave examples of some of the amazing accomplishments of the students at the University of Houston-Downtown. I’m also very impressed by our faculty and staff. There are too many to list here, so I will provide only a few examples.
I begin with a faculty member whose research may one day protect wine crops in Texas. Lisa Morano, an associate professor of Natural Sciences, along with her team of undergraduate students has been tracking the genetic footprint of Pierce disease as it makes its way from the Gulf of Mexico to central Texas. Pierce disease is caused by the xylella bacteria and is spread by the glassy-winged sharpshooter (homalodisca vitripennis).
Morano's students, most of whom are part of UHD’s Scholars Academy, perform DNA extractions to help create genetic fingerprints in the laboratory. The students present their research at national conferences and most plan to pursue graduate degrees. Says Dr. Morano, “We’re bringing science to life and giving undergraduate students the opportunity to do something they wouldn’t normally be able to do until graduate school.”
UHD faculty members are involved in research in many subjects and their research often provides research opportunities for our undergraduates. For example, associate professor Jeff Flosi’s expertise on mosquitoes and the diseases they carry has led a number of students to conduct research projects on the West Nile virus. Like Morano, Dr. Flosi’s work has stimulated many students to pursue graduate degrees and several have gone on to medical school or doctoral programs.
Dr. David Ryden, associate professor of history, learned that his book, “West Indian Slavery and British Abolition, 1783-1807,” has been selected as one of the Outstanding Academic Titles of 2009. This is a prestigious honor that virtually guarantees that his book, already out of print, will appear in libraries across the country. The book will go into a second printing and is a great success. Dr. Ryden credits the UHD Faculty Development Leave Program as instrumental in helping him complete his book, as it enabled him to step away from class and focus on his research and writing.
Dr. Ermelinda DeLaVina, associate professor of mathematical sciences, has been featured in a publication of Sally Ride Science aimed at middle school and high school students. Sally Ride, you will remember, was the first woman to successfully fly into space back in 1983. The publication gives students a first-hand look at women who have established successful careers in math and science, providing role models that provide guidance and inspiration. Dr. DeLaVina’s work and strong reputation for mentoring students interested in STEM fields has won her national recognition, which is why she was included in the project.
UHD has a renowned jazz musician and conductor, Robert Wilson. Wilson and one of the jazz group he leads, the Young Sounds of Houston, have been invited to perform at a New Orleans Jazz Festival. He has also been asked by the U.S. Park Service to assist their efforts to reclaim jazz heritage in New Orleans by helping to build interest in jazz among young people in New Orleans. For his work, UHD has created a new role and title. Wilson has been appointed as our university’s first Musician Artist-in-Residence. According to Wilson, “This is a great honor that will help me attract more students and build greater support for our jazz program.”
There’s also great staff at UHD. For example, Po-Chu “Anges” Leung, the director of testing services at UHD, won the “Cathy Erwin Humanitarian Award” from the Texas Education Agency for her outstanding work in administering GED exams to thousands of Houston and nearby residents. By her work, she has helped these students to pursue college work at UHD and community colleges. Ms. Leung began her career by first passing a GED herself. She told me, “I love opening the doors of opportunity for our students.”
The UHD IT department has also been recognized for its Strategic Plan for Information Technology. Under the leadership of Hossein Shahrohki, associate vice president for IT, the department has made UHD one of the most modern and up-to-date campuses in the country. Their Strategic Plan was highlight as outstanding example for government agencies in the online publication, Texas Ahead, published by the Texas Controller of Public Accounts.
I wish I had room to list so many other UHD faculty and staff who give their time and expertise to our student and to the community. They serve on school boards, volunteer in homeless shelters, tutor children in middle schools, and gather coats for kids to keep them warm in the winter. They work without public accolades or recognition. But, they help make Houston a better place to live. Hearing their stories makes be proud and I will provide more examples of their work in future posts. Stay tuned, because our faculty and staff are doing new and exciting things every day.
I begin with a faculty member whose research may one day protect wine crops in Texas. Lisa Morano, an associate professor of Natural Sciences, along with her team of undergraduate students has been tracking the genetic footprint of Pierce disease as it makes its way from the Gulf of Mexico to central Texas. Pierce disease is caused by the xylella bacteria and is spread by the glassy-winged sharpshooter (homalodisca vitripennis).
Morano's students, most of whom are part of UHD’s Scholars Academy, perform DNA extractions to help create genetic fingerprints in the laboratory. The students present their research at national conferences and most plan to pursue graduate degrees. Says Dr. Morano, “We’re bringing science to life and giving undergraduate students the opportunity to do something they wouldn’t normally be able to do until graduate school.”
UHD faculty members are involved in research in many subjects and their research often provides research opportunities for our undergraduates. For example, associate professor Jeff Flosi’s expertise on mosquitoes and the diseases they carry has led a number of students to conduct research projects on the West Nile virus. Like Morano, Dr. Flosi’s work has stimulated many students to pursue graduate degrees and several have gone on to medical school or doctoral programs.
Dr. David Ryden, associate professor of history, learned that his book, “West Indian Slavery and British Abolition, 1783-1807,” has been selected as one of the Outstanding Academic Titles of 2009. This is a prestigious honor that virtually guarantees that his book, already out of print, will appear in libraries across the country. The book will go into a second printing and is a great success. Dr. Ryden credits the UHD Faculty Development Leave Program as instrumental in helping him complete his book, as it enabled him to step away from class and focus on his research and writing.
Dr. Ermelinda DeLaVina, associate professor of mathematical sciences, has been featured in a publication of Sally Ride Science aimed at middle school and high school students. Sally Ride, you will remember, was the first woman to successfully fly into space back in 1983. The publication gives students a first-hand look at women who have established successful careers in math and science, providing role models that provide guidance and inspiration. Dr. DeLaVina’s work and strong reputation for mentoring students interested in STEM fields has won her national recognition, which is why she was included in the project.
UHD has a renowned jazz musician and conductor, Robert Wilson. Wilson and one of the jazz group he leads, the Young Sounds of Houston, have been invited to perform at a New Orleans Jazz Festival. He has also been asked by the U.S. Park Service to assist their efforts to reclaim jazz heritage in New Orleans by helping to build interest in jazz among young people in New Orleans. For his work, UHD has created a new role and title. Wilson has been appointed as our university’s first Musician Artist-in-Residence. According to Wilson, “This is a great honor that will help me attract more students and build greater support for our jazz program.”
There’s also great staff at UHD. For example, Po-Chu “Anges” Leung, the director of testing services at UHD, won the “Cathy Erwin Humanitarian Award” from the Texas Education Agency for her outstanding work in administering GED exams to thousands of Houston and nearby residents. By her work, she has helped these students to pursue college work at UHD and community colleges. Ms. Leung began her career by first passing a GED herself. She told me, “I love opening the doors of opportunity for our students.”
The UHD IT department has also been recognized for its Strategic Plan for Information Technology. Under the leadership of Hossein Shahrohki, associate vice president for IT, the department has made UHD one of the most modern and up-to-date campuses in the country. Their Strategic Plan was highlight as outstanding example for government agencies in the online publication, Texas Ahead, published by the Texas Controller of Public Accounts.
I wish I had room to list so many other UHD faculty and staff who give their time and expertise to our student and to the community. They serve on school boards, volunteer in homeless shelters, tutor children in middle schools, and gather coats for kids to keep them warm in the winter. They work without public accolades or recognition. But, they help make Houston a better place to live. Hearing their stories makes be proud and I will provide more examples of their work in future posts. Stay tuned, because our faculty and staff are doing new and exciting things every day.
Monday, February 8, 2010
Faces of the Future: Amazing Accomplishments of UHD Students
One of the true joys of being the president of the University of Houston-Downtown is having an opportunity to meet some of our outstanding students. They are the faces of America's future.
I have previously mentioned the work of our Powerlifting Team that has won two national championships and our Model UN team that has gone on to win recognition in New York, Madrid, Paris, Mexico City, and Milan. But, our students just keep winning. We even have one student who is an Olympic medalist and has written a book about her experiences!
On Saturday, February 6th, the UHD Powerlifting Team successfully defended its WABDL National Collegiate Team Championship--its third consecutive national championship! The team achieved its victory over a particularly difficult opponent, UT San Antonio. The team's coach, John Hudson, who is an assistant professor of English and who requires all team members to maintain a 2.5 GPA in order to compete, exclaimed, "UTSA is a great team and they bring out the best in our lifters."
The UHD team received a perfect score! The Team Co-captain, Ilian Rojas, scored 165 points and 1st Place in the Bench Press, 1st Place in the Deadlift, and 1st Place Total! He was one of four students who joined me a few days prior to the tournament, when I spoke to the Kiwanis Club of Houston.
Rojas wore two national championship medals to the luncheon. A sophomore majoring in applied mathematics, he serves as a UHD Ambassador and works as personal trainer in the UHD Sports and Fitness Department. Ilian graduated from the Yes College Prep academy in Houston in 2008. He had never tried powerlifting until he came to UHD. Now he is a national champion with three team medals!
Another amazing student who joined us for the luncheon is Melissa Chan, a UHD Chemistry major. She already has an undergraduate degree, having graduated from CUNY's Hunter College with a triple major in German, Russian and Political Science. Ms. Chan works as an animal behavioral specialist at the SPCA in Houston.
Melissa has earned recognition for her undergraduate research in electro-chemical analysis and will present her work at the National Conference of Undergraduate Research in Montana later this year. Next year, she will earn dual degrees from UHD and the Technical University of Lodz in Poland. She plans to pursue a PhD in neuropharmacology in Germany.
Also joining us at the Kiwanis luncheon was Gaspar Gonzales, a full-time student in the Bachelor of Arts in Fine Arts program with an emphasis in music. He serves as an intern to the administration of the River Oaks Chamber Orchestra, where he will learn the business and marketing side of running a chamber orchestra. Gonzales works part-time as a music teacher at Stevenson Elementary School in the Heights.
Finally, there was Claudio Saenz, a junior in international business, who is a Microsoft Student Partner. He teaches students and staff on UH System universities about software and technology. The job allows him to connect with other students who are passionate about technology, marketing, and learning. Saenz works full-time at DI Central a business-to-business software company. With all of this, Saenz is a full-time student.
But, these are only a few of our Stars at UHD. Let me mention a few other amazing UHD students:
Diana Lopez won the bronze medal in the Korean martial art of Tae Kwon Do at the 2008 Beijing Olympics. Lopez and her brothers made history that year by being the first set of four siblings to represent the U.S. on the same Olympic Team, and for having three siblings win medals in the same sport. Ms. Lopez is a junior majoring in interdisciplinary studies.
Her book, “Family Power,” was co-authored with her brothers. It was released in late 2009 by Penguin Press and chronicles the hard work of the Lopez trio as they became 'America’s First Family of Tae Kwon Do.' She explains, “We do everything together. It made sense to write a book together.”
UHD also has world class salsa dancer. A business major at UHD, Vanessa Pinon, and her partner danced nearly flawlessly in Japan at the international salsa championships in Japan. They finished 11th, but qualified to dance in the World Championships in Miami later this year. Ms. Pinon will be dancing at UHD on Tuesday March 9th as part of the festivities of Investiture Week.
Abdul Jangda is a junior majoring in industrial chemistry at the University of Houston-Downtown. A student in the UHD Scholars Academy, Jangda's chemistry research centered on detecting metal particles in liquid by using special plastics capable of conducting electricity. He developed a special plastic polymer while working with UHD assistant professor of Chemistry, Mian Jiang.
Jangda presented his work at a recent Sigma Xi science research conference and received a superior rating. The judges commented that his work has many potential medical uses and appears to be relatively affordable. They believe a polymer with the right qualities could lower the cost of testing blood for sodium, potassium, glucose and other elements that doctors use to diagnose and treat patients.
That would be great wouldn't it? Reducing the price of medical tests could reduce the costs of medical care. Who knows, maybe one of these days a UHD student will tackle lowering the cost of health care insurance!
Each of these students are helping UHD to Make a Name for Itself. That's been our mantra this past year. We want everyone to know just how wonderful the University of Houston-Downtown really is. We want every to know the great things our students achieve.
I am truly impressed by the accomplishments of our UHD Gators. And, I am proud to be the president of their university.
I have previously mentioned the work of our Powerlifting Team that has won two national championships and our Model UN team that has gone on to win recognition in New York, Madrid, Paris, Mexico City, and Milan. But, our students just keep winning. We even have one student who is an Olympic medalist and has written a book about her experiences!
On Saturday, February 6th, the UHD Powerlifting Team successfully defended its WABDL National Collegiate Team Championship--its third consecutive national championship! The team achieved its victory over a particularly difficult opponent, UT San Antonio. The team's coach, John Hudson, who is an assistant professor of English and who requires all team members to maintain a 2.5 GPA in order to compete, exclaimed, "UTSA is a great team and they bring out the best in our lifters."
The UHD team received a perfect score! The Team Co-captain, Ilian Rojas, scored 165 points and 1st Place in the Bench Press, 1st Place in the Deadlift, and 1st Place Total! He was one of four students who joined me a few days prior to the tournament, when I spoke to the Kiwanis Club of Houston.
Rojas wore two national championship medals to the luncheon. A sophomore majoring in applied mathematics, he serves as a UHD Ambassador and works as personal trainer in the UHD Sports and Fitness Department. Ilian graduated from the Yes College Prep academy in Houston in 2008. He had never tried powerlifting until he came to UHD. Now he is a national champion with three team medals!
Another amazing student who joined us for the luncheon is Melissa Chan, a UHD Chemistry major. She already has an undergraduate degree, having graduated from CUNY's Hunter College with a triple major in German, Russian and Political Science. Ms. Chan works as an animal behavioral specialist at the SPCA in Houston.
Melissa has earned recognition for her undergraduate research in electro-chemical analysis and will present her work at the National Conference of Undergraduate Research in Montana later this year. Next year, she will earn dual degrees from UHD and the Technical University of Lodz in Poland. She plans to pursue a PhD in neuropharmacology in Germany.
Also joining us at the Kiwanis luncheon was Gaspar Gonzales, a full-time student in the Bachelor of Arts in Fine Arts program with an emphasis in music. He serves as an intern to the administration of the River Oaks Chamber Orchestra, where he will learn the business and marketing side of running a chamber orchestra. Gonzales works part-time as a music teacher at Stevenson Elementary School in the Heights.
Finally, there was Claudio Saenz, a junior in international business, who is a Microsoft Student Partner. He teaches students and staff on UH System universities about software and technology. The job allows him to connect with other students who are passionate about technology, marketing, and learning. Saenz works full-time at DI Central a business-to-business software company. With all of this, Saenz is a full-time student.
But, these are only a few of our Stars at UHD. Let me mention a few other amazing UHD students:
Diana Lopez won the bronze medal in the Korean martial art of Tae Kwon Do at the 2008 Beijing Olympics. Lopez and her brothers made history that year by being the first set of four siblings to represent the U.S. on the same Olympic Team, and for having three siblings win medals in the same sport. Ms. Lopez is a junior majoring in interdisciplinary studies.
Her book, “Family Power,” was co-authored with her brothers. It was released in late 2009 by Penguin Press and chronicles the hard work of the Lopez trio as they became 'America’s First Family of Tae Kwon Do.' She explains, “We do everything together. It made sense to write a book together.”
UHD also has world class salsa dancer. A business major at UHD, Vanessa Pinon, and her partner danced nearly flawlessly in Japan at the international salsa championships in Japan. They finished 11th, but qualified to dance in the World Championships in Miami later this year. Ms. Pinon will be dancing at UHD on Tuesday March 9th as part of the festivities of Investiture Week.
Abdul Jangda is a junior majoring in industrial chemistry at the University of Houston-Downtown. A student in the UHD Scholars Academy, Jangda's chemistry research centered on detecting metal particles in liquid by using special plastics capable of conducting electricity. He developed a special plastic polymer while working with UHD assistant professor of Chemistry, Mian Jiang.
Jangda presented his work at a recent Sigma Xi science research conference and received a superior rating. The judges commented that his work has many potential medical uses and appears to be relatively affordable. They believe a polymer with the right qualities could lower the cost of testing blood for sodium, potassium, glucose and other elements that doctors use to diagnose and treat patients.
That would be great wouldn't it? Reducing the price of medical tests could reduce the costs of medical care. Who knows, maybe one of these days a UHD student will tackle lowering the cost of health care insurance!
Each of these students are helping UHD to Make a Name for Itself. That's been our mantra this past year. We want everyone to know just how wonderful the University of Houston-Downtown really is. We want every to know the great things our students achieve.
I am truly impressed by the accomplishments of our UHD Gators. And, I am proud to be the president of their university.
Tuesday, February 2, 2010
Our Approach to Cutbacks: Tough Choices, Hopefully to Make Us Stronger
Making cuts are difficult for anyone, especially for a new president. They are particularly hard when you had hoped to recommend pay raises. In fact, that's just what we were prepared to do here at the University of Houston-Downtown. We had planned on giving a mid-year raise conditional on increased enrollments and growth in the economy. And, enrollments have gone up.
So, we were in the process of preparing our budget submissions for the UH System and to the UH System Board of Regents with a 2% merit increase, when we received notice from the Governor, Lt. Governor, and the Speaker of the House requiring all Texas public universities to prepare for a 5% rescission for each of the two years of the budget cycle. The budget reductions are necessary because of declining state revenues from sales tax and declining revenues from oil and natural gas (prices dropped dramatically, but are heading upwards again).
UHD must now prepare for budgets cuts of nearly $1.4 million for each of the two years in the biennium (a total of roughly $2.8 million). Add in the amount of money that came from stimulus funds, about $1.2 million (which will disappear in 2012), and we must prepare for various cuts which total about $4 million. That may not sound like a lot, but we depend on state appropriations to fund our basic operations.
Nor do we have much turnaround time. As a system, we have to submit our plans by February 15th. Campuses have to submit their plans to the UH System office even earlier. So, we are already putting together plans for the first round of cuts.
At this past Friday's Convocation with faculty and staff, I assured everyone that we will pursue and an open and inclusive process in making these decisions. While we will not be able to give pay raises this year, it is important that we undertake the reductions in a careful, reflective, and planned way, securing jobs as much as possible, and expanding services to our students so that we can continue our growth. UHD currently has just under 13,000 students and we are growing every year.
The new base period begins this summer. Enrollments achieved during the base period will drive funding for the upcoming FY 2012/2013 biennium. So, UHD will continue to grow its enrollments and we will qualify for more funding through state appropriations. We will hire new faculty and we will hire the staff we require to support student success. UHD is known for its small classes, for the attention students receive from faculty and staff, and for our focus on helping students succeed. That won't change. If anything, we intend to do an even better job of retaining and graduating students.
Also, we will do everything we can to provide pay raises next year. Going two years without pay increases damages faculty and staff morale. It would undercut our efforts to recruit top talent and hurt our ability to retain our highly committed and high-performing faculty and staff, who are the heart of UHD and who are critical to our success.
Our situation reminds me of comments by John F. Kennedy made in a speech in Indianapolis on April 12, 1959. JFK pointed out, that the Chinese character for the word 'crisis' (wei ji) contains two concepts. One represents 'danger,' while the other represents 'opportunity.' In times of great difficulty, whether severe crisis or simply difficult challenges, some recoil from fear of danger, while others prosper by pursuing opportunity.
At UHD, we will grow stronger, for we have a strong foundation to build upon. We have already begun a planning process to decide on areas of strength we want to expand. These discussions will guide us as we begin to make the tough decisions ahead.
We are not going to take across-the-board cuts. Rather, we will pin-point reductions. While cuts for the current year (FY2010) won't be easy, they should be relatively straight forward. We will use savings from lapsed or vacant positions, unallocated funds that would have been distributed later this year, along with the monies that would have gone to pay increases. That just about gets us to $1.4 million.
Reductions for FY2011 will be more challenging. This year enrollments are projected to grow over last year by about 4%, so we need to provide sufficient class sections, advisers, transcript evaluators, and support staff. Also, we are initiating classes in a new educational facility at the HP campus near Hwy. 249 northwest of Houston. The University Park, owned by Lone Star College System will house several universities, including UHD. We will begin classes there this summer and expand classes in the fall and spring.
Moreover, it is very important that we begin some of the initiatives identified through the planning process, particularly those that will help retain and graduate more students, ensuring that they receive the high-quality education for which UHD is known.
So, we actually need more money and more positions at the same time we will have less. This is a conundrum confronting many higher education institutions throughout the country. How you do provide more with less?
Clearly, we can't do it the same way we've done it in the past. We have to change our processes, find efficiencies, reduce low-enrolled courses, expand enrollments for some classes without affecting quality, provide more classes in the evenings and weekends, offer more online and hybrid courses, institute cost savings, etc. And, we will accomplish these reductions while also improving the quality of student learning.
We have decided to institute two approaches to help us decide on the budget reductions. First, I will appoint an Efficiencies and Budget Reductions Task Force composed of representatives from faculty, staff, and some students. I have already asked constituent groups to submit nominees. The Task Force won't have enough time to draft the Feb. 15th response to the Governor and the LLB. That will be developed by the vice presidents with me and shared broadly throughout the campus. Rather, the Task Force will review the budget, examine data on space and staff utilization, cost centers, expenditures per area relative to peers, etc. The Task Force will recommend short and long-term solutions that we can take as a university to reduce costs while also expanding services and pursuing new initiatives and priorities.
Secondly, we will ask employees to submit their suggestions for cost savings. We hope to receive many helpful recommendations. We will implement all those that reduce costs and strengthen the institution. The faculty or staff member who submits the idea which results in the most savings will be honored next year.
The U.S. economy will pick up and the state budget will improve. On Friday (Jan. 29), we learned that nationally the economy grew by 5.7% in the fourth quarter. This is the second quarter in a row that we have had some growth. The previous quarter the economy grew by 2.2%. So, we are seeing good signs.
The Dallas Fed predicts that by the end of 2010 Texas will have a net increase of 100,000 new jobs (over and above those lost during the recession). According to projections by the Greater Houston Partnership, Houston should complete the year with a net increase of 10,000 new jobs.
Houston is doing well and so is UHD. We may be making reductions, but we will use them to grow stronger. As we embark on the cuts, I suggested to our faculty and staff that we consider a basic principle from Jim Collin's book, Good to Great, which is that you must focus your resources for success. As anyone who has ever grown roses knows, you can't just let them grow unattended. To produce strong, healthy roses, you must prune the bushes from time-to-time.
That's what we will do. We will trim the bushes. And, I assure you, we will produce beautiful roses here at UHD. It is an opportunity to examine the institution and make improvements. And, we will grow stronger and better in the process.
So, we were in the process of preparing our budget submissions for the UH System and to the UH System Board of Regents with a 2% merit increase, when we received notice from the Governor, Lt. Governor, and the Speaker of the House requiring all Texas public universities to prepare for a 5% rescission for each of the two years of the budget cycle. The budget reductions are necessary because of declining state revenues from sales tax and declining revenues from oil and natural gas (prices dropped dramatically, but are heading upwards again).
UHD must now prepare for budgets cuts of nearly $1.4 million for each of the two years in the biennium (a total of roughly $2.8 million). Add in the amount of money that came from stimulus funds, about $1.2 million (which will disappear in 2012), and we must prepare for various cuts which total about $4 million. That may not sound like a lot, but we depend on state appropriations to fund our basic operations.
Nor do we have much turnaround time. As a system, we have to submit our plans by February 15th. Campuses have to submit their plans to the UH System office even earlier. So, we are already putting together plans for the first round of cuts.
At this past Friday's Convocation with faculty and staff, I assured everyone that we will pursue and an open and inclusive process in making these decisions. While we will not be able to give pay raises this year, it is important that we undertake the reductions in a careful, reflective, and planned way, securing jobs as much as possible, and expanding services to our students so that we can continue our growth. UHD currently has just under 13,000 students and we are growing every year.
The new base period begins this summer. Enrollments achieved during the base period will drive funding for the upcoming FY 2012/2013 biennium. So, UHD will continue to grow its enrollments and we will qualify for more funding through state appropriations. We will hire new faculty and we will hire the staff we require to support student success. UHD is known for its small classes, for the attention students receive from faculty and staff, and for our focus on helping students succeed. That won't change. If anything, we intend to do an even better job of retaining and graduating students.
Also, we will do everything we can to provide pay raises next year. Going two years without pay increases damages faculty and staff morale. It would undercut our efforts to recruit top talent and hurt our ability to retain our highly committed and high-performing faculty and staff, who are the heart of UHD and who are critical to our success.
Our situation reminds me of comments by John F. Kennedy made in a speech in Indianapolis on April 12, 1959. JFK pointed out, that the Chinese character for the word 'crisis' (wei ji) contains two concepts. One represents 'danger,' while the other represents 'opportunity.' In times of great difficulty, whether severe crisis or simply difficult challenges, some recoil from fear of danger, while others prosper by pursuing opportunity.
At UHD, we will grow stronger, for we have a strong foundation to build upon. We have already begun a planning process to decide on areas of strength we want to expand. These discussions will guide us as we begin to make the tough decisions ahead.
We are not going to take across-the-board cuts. Rather, we will pin-point reductions. While cuts for the current year (FY2010) won't be easy, they should be relatively straight forward. We will use savings from lapsed or vacant positions, unallocated funds that would have been distributed later this year, along with the monies that would have gone to pay increases. That just about gets us to $1.4 million.
Reductions for FY2011 will be more challenging. This year enrollments are projected to grow over last year by about 4%, so we need to provide sufficient class sections, advisers, transcript evaluators, and support staff. Also, we are initiating classes in a new educational facility at the HP campus near Hwy. 249 northwest of Houston. The University Park, owned by Lone Star College System will house several universities, including UHD. We will begin classes there this summer and expand classes in the fall and spring.
Moreover, it is very important that we begin some of the initiatives identified through the planning process, particularly those that will help retain and graduate more students, ensuring that they receive the high-quality education for which UHD is known.
So, we actually need more money and more positions at the same time we will have less. This is a conundrum confronting many higher education institutions throughout the country. How you do provide more with less?
Clearly, we can't do it the same way we've done it in the past. We have to change our processes, find efficiencies, reduce low-enrolled courses, expand enrollments for some classes without affecting quality, provide more classes in the evenings and weekends, offer more online and hybrid courses, institute cost savings, etc. And, we will accomplish these reductions while also improving the quality of student learning.
We have decided to institute two approaches to help us decide on the budget reductions. First, I will appoint an Efficiencies and Budget Reductions Task Force composed of representatives from faculty, staff, and some students. I have already asked constituent groups to submit nominees. The Task Force won't have enough time to draft the Feb. 15th response to the Governor and the LLB. That will be developed by the vice presidents with me and shared broadly throughout the campus. Rather, the Task Force will review the budget, examine data on space and staff utilization, cost centers, expenditures per area relative to peers, etc. The Task Force will recommend short and long-term solutions that we can take as a university to reduce costs while also expanding services and pursuing new initiatives and priorities.
Secondly, we will ask employees to submit their suggestions for cost savings. We hope to receive many helpful recommendations. We will implement all those that reduce costs and strengthen the institution. The faculty or staff member who submits the idea which results in the most savings will be honored next year.
The U.S. economy will pick up and the state budget will improve. On Friday (Jan. 29), we learned that nationally the economy grew by 5.7% in the fourth quarter. This is the second quarter in a row that we have had some growth. The previous quarter the economy grew by 2.2%. So, we are seeing good signs.
The Dallas Fed predicts that by the end of 2010 Texas will have a net increase of 100,000 new jobs (over and above those lost during the recession). According to projections by the Greater Houston Partnership, Houston should complete the year with a net increase of 10,000 new jobs.
Houston is doing well and so is UHD. We may be making reductions, but we will use them to grow stronger. As we embark on the cuts, I suggested to our faculty and staff that we consider a basic principle from Jim Collin's book, Good to Great, which is that you must focus your resources for success. As anyone who has ever grown roses knows, you can't just let them grow unattended. To produce strong, healthy roses, you must prune the bushes from time-to-time.
That's what we will do. We will trim the bushes. And, I assure you, we will produce beautiful roses here at UHD. It is an opportunity to examine the institution and make improvements. And, we will grow stronger and better in the process.
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