Overview of State of Wisconsin Biennial Budget and New Badger Partnership/Public Authority Status for UW-Madison
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1 Overview of State of Wisconsin Biennial Budget and New Badger Partnership/Public Authority Status for UW-Madison Vice Chancellor Darrell Bazzell & Chancellor Biddy Martin Breakfast for Chairs and Program Directors March 22, 2011
2 Budget Overview Darrell Bazzell Vice Chancellor for Administration
3 Auxiliary enterprises 12% UW-Madison FY Budget ($2.7B) Gifts, Grants and segregated fees 18% Other 5% State Appropriations 17% Tuition/Fees 15% Federal Funds 33%
4 Biennial Budget and Higher Education Positions UW-Madison as a public authority Requires UW-System to allocate $250,000 to develop a plan for UW-Milwaukee to convert to a public authority Reduces support for UW-System institutions and UW-Madison by $250 million Reduces UW-Madison by $125 million ($62.5M base cut) Protects state student financial aid
5 Millions $70 $60 $50 $40 $30 $20 $10 UW-Madison Budget Reduction Comparison $53M Cuts $38M Tuition $62.5M $ Biennium Biennium
6 Public Authority Model UW-Madison Chancellor Biddy Martin
7 UW-Madison Public Authority Public Authority has no single definition or form; an entity created by the legislature to support a public purpose UW-Madison will remain a public institution of higher education receiving state funding and maintaining strong ties to the state UW-Madison will be independent from the University of Wisconsin System Bill creates Chapter 37 of the Wisconsin Statutes specific to UW-Madison Assets and liabilities, including real property, contracts, and trust funds will transfer to the Authority A Board of Trustees consisting of 21 members will govern the Authority
8 UW-Madison Board of Trustees All members must have a demonstrated commitment to the welfare of the university and have management experience or possess expertise in aspects of the university s mission, such as: Undergraduate, graduate and professional education Research Intellectual property Support of existing industries New business startups Public service
9 UW-Madison Board of Trustees Composition Governor appoints 11 members (7 must be alumni) 1 member from Board of Regents for the UW System 1 member representing agriculture interests in state 9 additional members Other 10 members appointed as follows: 2 UW-Madison Faculty 1 UW-Madison non-faculty employee 1 UW-Madison student 2 members each (total of six) appointed by boards of Wisconsin Alumni Research Foundation, Wisconsin Alumni Association, and University of Wisconsin Foundation. All must be alumni. Chancellor serves as non-voting member
10 Employment Effective July 1, 2011, employees will be employed by UW-Madison, not the state of Wisconsin Employees will participate in the state health insurance, Wisconsin Retirement System and benefit programs Board of Trustees will develop and implement personnel system incorporating principles of shared governance Collective bargaining rights: UW-Madison will have rights equivalent to peers in other state agencies
11 Additional Bill Features Bill addresses specific areas including: Accountability and Oversight Policies and Procedures Sovereign Immunity/Risk Management/Liability Coverage Public Records and Open Meetings Procurement Facilities and Construction Cooperative Agreements
12 Tuition and Financial Aid Board of Trustees authorized to set and manage tuition rates Current tuition policies and procedures remain in effect until changed by BOT or July 1, 2013 Provisions ensure continued access to variety of financial aid programs
13 $30,000 Trends in Academic Year Tuition and Required Fees $25,000 $20,000 $15,000 $13,847 $14,972 $15,976 $16,747 $18,426 $18,427 $19,139 $19,763 $19,866 $20,966 $20,284 $22,197 $20,730 $23,507 $24,039 $21,438 $21,818 $25,288 $23,063 $26,637 $24,237 $10,000 $5,000 $14,189 $6,302 $5,012 $5,484 $3,791 $4,089 $4,426 $7,043 $5,139 $7,634 $5,866 $8,215 $6,284 $8,867 $6,730 $9,424 $10,009 $7,188 $7,569 $10,531 $8,314 $11,128 $8,987 $0 00-'01 01-'02 02-'03 03-'04 04-'05 05-'06 06-'07 07-'08 08-'09 09-'10 10-'11 Wisconsin Resident Big Ten Average* Resident Wisconsin Nonresident Big Ten Average* Nonresident Source: Academic Planning and Analysis
14 $40,000 $35,000 Tuition rates at top U.S. public universities $35,341 $34,747 $34,209 $36,163 $30,000 $25,000 $25,329 $24,237 $26,650 $20,000 $15,000 $12,462 $11,868 $11,330 $12,590 $13,508 $10,000 $8,701 $8,987 $5,000 $0 #2 UC Berkeley #13 UCLA #14 UC San Diego #16 Washington #17 Wisconsin #22 Michigan #25 Illinois Resident Nonresident Source: Shanghai Jiao Tong University Academic Ranking of World Universities 2010
15 Public Big Ten Academic Year Tuition & Required Fees $40,000 $35,000 $36,163 $30,000 $25,000 $25,946 $26,650 $27,781 $22,278 $25,118 $26,160 $23,063 $22,198 $20,000 Resident $15,000 $15,250 $13,508 $12,590 $12,203 $15,293 $11,670 Nonresident $10,000 $8,706 $9,420 $9,028 $8,987 $7,417 $5,000 $0 Penn State Illinois Michigan Michigan State Minnesota Ohio State Purdue Indiana Wisconsin Iowa Source: Academic Planning and Analysis
16 Institutional Need-Based Financial Aid For Undergrads For , 749 students received a need-based UW-Madison Grant ($4.6M) 6,036 students received a Hold Harmless Grant ($3.9M) $8.1M total MIU aid funds distributed so far this academic year (January 2011) $6.2 Total Institutional Need-Based Aid For Undergraduates (millions of dollars) 97% increase $6.9 $11.2 $ ( as of 1/2011)
17 Our Commitment to Wisconsin Continue our mission as a public, land-grant institution to discover, examine critically, preserve and transmit the knowledge, wisdom and values Foster our valued tradition of the Wisconsin Idea, forging close working relationships across the state
18 Collaborations with UW- Institutions UW-Madison offers three transfer agreement programs Guaranteed admission to students who meet certain requirements Provide guidance on courses appropriate for a UW-Madison degree UW-Madison & UW-Milwaukee Intercampus Research Grants Collaborative and duel degree programs include: BS in Physics, BS in Engineering Eau Claire, La Crosse, Oshkosh, River Falls, Whitewater BS in Nursing Eau Claire, Green Bay, Milwaukee, Oshkosh UW-Madison Consortium for Extension and Research in Agriculture and Natural Resources (CERANR) provides $125,000 for cooperative research led by faculty and staff at UW- Madison, -Platteville, -River Falls, & -Stevens Point.
19 UW System s WI Idea Partnership Proposal (date March 10, 2011) - UW System proposes amending the proposed biennial budget to provide all UW campuses and UW-Extension with new management flexibilities within the current Board of Regents of the UW System governance structure. - If this language is included in the budget, the Board of Regents will delegate these new management flexibilities to the UW campuses and UW-Extension to the fullest extent possible.
20 What you can do to help - Be informed ( forums, online chats weekly) - Encourage your colleagues to be informed - Serve as an informational resource to your faculty, staff, students, alumni and collaborators - Tell us what you are hearing - Tell us how these changes might impact your work as a chair -- we are always looking for examples. - Volunteer to attend meetings around the state being organized by University Relations/WAA/UWF
21 Questions and Answers
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