Author: Michelle Felber

States Still Funding Higher Education at Pre-Recession Levels

by  •  • Comments Off on States Still Funding Higher Education at Pre-Recession Levels

cbpp logoThe Center on Budget and Policy Priorities recently released a report on public higher education funding, finding that Wisconsin is one of just eight states that continued to cut higher education spending in 2013-14.

All but two states are spending less per student than before the recession, but funding is beginning to improve after several years of cuts:

higher education funding 2013-14

The recession has resulted in steep tuition increases (28 percent since 2007-08 on average) and cuts in staff and programs. Tuition in Wisconsin rose more than 21 percent over the past six years.

Like Demos reported earlier, states have shifted the cost of higher education to students and their families through increased tuition and funding cuts. The CBPP found that tuition revenue is greater than state tax funding in 23 states.

Legislative Update

by  •  • Comments Off on Legislative Update

The 2013-14 regular legislative session ended last month and attention has shifted to fall elections.

PROFS was very active in the legislative process, registering positions on bills and maintaining regular contact with key legislators and staff on important issues like compensation, faculty governance, and funding for the university.

Classified Research AB 729, a bill that will allow classified research on UW System campuses, was signed into law. PROFS registered in favor of this bill.

Financial Reserves The legislature’s Joint Committee on Finance approved a revised plan for managing and disclosing UW System cash balances and fund reserves on May 6. The legislature directed UW System to develop a plan as part of the 2013-15 biennial budget (Act 20), and the Joint Committee on Audit requested additional changes after a plan was presented to them on November 20, 2013. The Board of Regents and audit committee approved those revisions, but the finance committee voted for several changes.

The finance committee-approved plan requires individual campuses that hold more than 12 percent of their total fiscal year expenditures in reserve to provide justification to the regents and submit a spending plan for tuition, auxiliary operations, general operations, and unrestricted program revenue. Campuses are not required to hold a minimum fund balance, but campuses with a deficit must report a savings plan to the regents. The plan approved by the regents and audit committee required minimum reserves of 10 percent and the reporting threshold was triggered when funds exceeded 15 percent of expenditures.

HR Design The legislature’s Joint Committee on Employment Relations approved new personnel plans for UW-Madison and UW System. The legislature directed the university to develop plans to be implemented by July 1, 2015 as part of the 2011-13 biennial budget, but never approved them. Chancellor Rebecca Blank told the committee she plans to request the authority to award merit raises, which are not currently allowed under state statutes.

Tuition Freeze Governor Scott Walker proposed an additional two-year freeze on University of Wisconsin System tuition. The governor said his proposal was a direct result of the recent disclosure that UW System will finish the current fiscal year with about $1 billion in reserve. Last year, the governor called for a two-year tuition freeze after the university was found to have just over $1 billion in reserve.

Voter ID Wisconsin’s voter ID law (2011 Wisconsin Act 23) was struck down April 29. United States District Judge Lynn Adelman wrote in his decision the law places an undue burden on minorities and the poor and violates the Voting Rights Act. Adelman’s ruling bars enforcement of the law. Governor Scott Walker said last month he could call the legislature into special session if the law was overturned, and State Attorney General J.B. Van Hollen said he will appeal the decision. PROFS registered against AB 7, legislation that became the state’s voter ID law in 2011.

Fall Elections The legislature will experience its largest turnover since the 1970’s. Seven state senators and 22 members of the assembly have announced they will not run for reelection. Legislators must declare non-candidacy by May 23, and nomination papers must be filed by June 2.

The Legislative Reference Bureau has prepared a bulletin on tenure and turnover in the Wisconsin Legislature between 1940 and 2012.

Joint Committee on Finance to Discuss UW System Plan on Cash Balances

by  •  • Comments Off on Joint Committee on Finance to Discuss UW System Plan on Cash Balances

Joint Finance Committee Hearing RoomThe legislature’s Joint Committee on Finance will meet at noon tomorrow, Tuesday, May 6, to vote on more than a dozen requests for approval, including UW System’s plan for auxiliary reserves. The Joint Audit Committee approved a revised plan last month. The Legislative Fiscal Bureau analysis of the plan is here.

The committee will be asked to consider how the university accounts for federal indirect cost reimbursement. UW-Madison maintains a significant balance of those funds, which are not subject to a reporting threshold under the proposed guidelines.

The committee will meet in Room 412 East of the State Capitol. Audio and video coverage will be available on WisconsinEye.

Edited to reflect change in meeting time from 11 am to noon.

Federal Judge Strikes Down Voter ID Law

by  •  • Comments Off on Federal Judge Strikes Down Voter ID Law

United States District Judge Lynn Adelman struck down Wisconsin’s voter ID law (2011 Wisconsin Act 23) today, saying the law places an undue burden on minorities and the poor and violates the Voting Rights Act.

Adelman’s ruling bars enforcement of the law, which was also found unconstitutional by a Dane County judge. That decision was overturned last year and ultimately appealed to the Wisconsin Supreme Court. Members of the court heard arguments on challenges to the law in February. A decision is not expected until later this summer.

Governor Scott Walker made passing voter ID legislation a legislative priority when elected and said last month he could call the legislature into special session if the law was overturned. State Attorney General J.B. Van Hollen also said in a statement today he will appeal the decision.

PROFS registered against AB 7, legislation that became the state’s voter ID law in 2011.

Joint Audit Committee Approves UW System Plan on Cash Balances

by  •  • Comments Off on Joint Audit Committee Approves UW System Plan on Cash Balances

UW_Day_at_Capitol13_1390The legislature’s Joint Committee on Audit met yesterday and unanimously approved UW System’s plan for managing and disclosing cash balances and fund reserves. Campus financial reserves have been the subject of intense legislative scrutiny since April 2013 when the Legislative Fiscal Bureau reported UW System holds more than $650 million in reserve.

The legislature directed UW System to develop a plan as part of the 2013-15 biennial budget (Act 20), and the Legislative Audit Committee requested additional changes after a plan was presented to them on November 20, 2013. The Board of Regents approved those revisions earlier this month.

The revised plan requires individual campuses to hold between 10 and 15 percent of their total fiscal year expenditures in reserve. Campuses with less than 10 percent fund balances must report a savings plan to the regents, while campuses holding more than 15 percent fund balances must provide justification to the regents and submit a spending plan for tuition, auxiliary operations, general operations, and unrestricted program revenue.

Archived audio of the meeting is available

here     
.

JCOER Approves UW-Madison Personnel Plan

by  •  • Comments Off on JCOER Approves UW-Madison Personnel Plan

The legislature’s Joint Committee on Employment Relations approved new personnel plans for UW-Madison and UW System today. The legislature directed the university to develop plans to be implemented by July 1, 2015 as part of the 2011-13 biennial budget, but never approved them.

Chancellor Rebecca Blank told the committee the new human resources system will allow UW-Madison to attract and retain the best faculty and staff through increased management flexibilities:

This new system will give us flexibility in some places where we need it, greater coherence in how we deal with staff across all positions, and should help us recruit more effectively. Making sure we have the best talent is crucial if UW-Madison is to remain a world-class university, provide an excellent education to our students and help drive the economy of the state.

Merit raises based on performance, currently not allowed under state statutes, will be requested, according to Chancellor Blank.

Joint Committee on Employment Relations to Discuss UW-Madison’s HR Plan

by  •  • Comments Off on Joint Committee on Employment Relations to Discuss UW-Madison’s HR Plan

The Legislature’s Joint Committee on Employment Relations (JCOER) will meet tomorrow, Wednesday, April 23, at 9:30 am to discuss UW-Madison’s new personnel system. UW System’s proposed personnel system is also on the agenda. The committee may take executive action on the plans after the public hearing, which will be held in Room 412 East, State Capitol.

The legislature directed UW-Madison and UW System to develop and implement their own personnel systems as part of the Act 32, the 2011-13 biennial budget, but the plans were never approved. JCOER held a public hearing last April, but did not vote on the plans, citing concern over UW System’s financial reserves. 

UW-Madison’s personnel plan is here.

Milwaukee Journal Sentinel on Additional Two-Year Tuition Freeze

by  •  • Comments Off on Milwaukee Journal Sentinel on Additional Two-Year Tuition Freeze

The editorial board of the Milwaukee Journal Sentinel offered its opinion on Governor Walker’s proposal to extend the current tuition freeze for two additional years. University of Wisconsin System campuses are currently in the first year of a two-year tuition freeze implemented as part of the 2013-15 biennial budget.

The editorial notes that continuing the freeze will be popular with students and their families, but seems opportunistic in an election year. The freeze also raises important questions about how the state intends to fund UW System in the future:

Wisconsin students deserve affordability, but they also deserve a quality education — the kind of education the system has provided throughout its history. And a quality system requires quality faculty, staff and research facilities. Which, in turn, means paying competitive salaries and providing adequate funding for those facilities.

UW System President Ray Cross told the Journal Sentinel last week that he thought an additional one-year tuition freeze might be possible given current financial reserves, but a two-year freeze was unexpected. The editorial concludes that a one-year freeze with greater management flexibilities might have made more sense:

That strikes us as the more prudent option, unless the state is willing to come up with additional funding for the university to maintain affordability and quality for students. What the universities need is greater flexibility from state control — not more, mindless, politicized control. As we asked earlier: What sort of university system does the state want? Let your governor and legislators know.

Your opinion is important. Information on how to contact the governor or your legislators is here.

Governor Walker Proposes Additional 2-Year Tuition Freeze

by  •  • Comments Off on Governor Walker Proposes Additional 2-Year Tuition Freeze

Governor Scott Walker announced Friday morning that he would propose an additional two-year freeze on University of Wisconsin System tuition. The governor said his proposal was a direct result of the recent disclosure that UW System will finish the fiscal year with about $1 billion in reserve. Last year, the governor called for a two-year tuition freeze after the university was found to have just over $1 billion in reserve.

The governor’s plan came as a surprise as the UW System Board of Regents met for a second day in a regularly scheduled meeting. UW System President Ray Cross responded quickly, saying that he will continue his work with the governor and legislature while thoughtfully and judiciously managing and explaining UW System resources. Cross told the Milwaukee Journal Sentinel he had discussed the possibility of a one-year extension of the tuition freeze with the governor’s staff about a month ago, but the conversation had been casual.

The Regent Audit Committee and Budget and Finance Committee met Thursday morning and revealed cash balance projections for FY 2013-14. UW System will finish the year with almost $1.1 billion in reserve, about half coming from tuition.

UW System officials say that about 80 percent of the funds are committed on some level (see below). UW-Madison’s share of the reserve is about $600 million, and Cross told the Journal Sentinel that UW-Madison is among the handful of campuses that could survive three to four years on cash balances without implementing major budget cuts.

fy 2013-14 reserves

April Board of Regents Meeting

by  •  • Comments Off on April Board of Regents Meeting

uw system logoThe University of Wisconsin System Board of Regents will meet Thursday and Friday, April 10 and 11 at UW-River Falls. Audio and video webcasts of the meeting will be available here.

The regents will meet in committee Thursday morning and hear from UW-River Falls Chancellor Dean Van Goren Thursday afternoon. The full board will also discuss financial reporting and the annual budget process.

The Education Committee will discuss faculty workload and compensation as part of its discussion, but supporting materials were not included with the agenda. Other items on the committee’s agenda include approval of annual Vilas Trust requests, a report on program planning and review, and renewal of UW-Milwaukee charter school authorizations.

The Audit Committee will meet jointly with the Business and Finance Committee. They will discuss two Legislative Audit Bureau (LAB) reports:

The LAB found that UW System’s Human Resources System (HRS) continues to have problems with implementation, accuracy, and security.  Insurance billing errors totaled more than $10 million from April 2011 through May 2013.

The committees will also discuss revisions to UW System policies on financial reserves. Campus financial reserves have been the subject of intense legislative scrutiny since April 2013 when the Legislative Fiscal Bureau reported that UW System holds more than $650 million in financial reserves.

The committees recommend approval of a plan that requires individual campuses to hold between 10 and 15 percent of their total fiscal year expenditures in reserve. Campuses with less than 10 percent fund balances must report a savings plan to the regents, while campuses holding more than 15 percent fund balances must provide justification to the regents and submit a spending plan for tuition, auxiliary operations, general operations, and unrestricted program revenue.