Author: Michelle Felber

Governor Walker Proposes Additional 2-Year Tuition Freeze

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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

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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.

 

Legislative Update

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capitol dome interiorThe 2013-14 regular legislative session ended last week and legislators and the governor will shift their focus to the fall elections.

PROFS was very active in the legislative process, meeting with more than a dozen legislators and staff on several issues.

AB 729, a bill that will allow classified research on UW System campuses, was passed by the legislature and awaits the governor’s signature. PROFS registered in favor of this bill.

The governor recently signed many bills into law:

  • SB 655, a bill that included many changes to campaign finance laws. Under the new law, lobbyists may make election-year contributions to legislative candidates after April 15. Current law limits such contributions to June 1 or later.
  • SB 324, a bill that limits in-person early voting to weekdays from 8 am to 7 pm. Early voting on weekends will not be allowed. The governor vetoed a provision in the bill that would have limited early voting to 45 hours per week.
  • AB 202, a bill that would allow election observers as close as three feet from the tables where voters announce their names and addresses before receiving a number to vote.
  • SB 300, a bill that would require insurers to cover oral chemotherapy in the same way that intravenous chemotherapy is covered.
  • AB 726, a bill that would allow marijuana oil to be used as a treatment for seizure disorders.

Board of Regents

Governor Scott Walker named four new members to the University of Wisconsin System Board of Regents last month. The governor appointed José Delgado and Eve Hall to replace outgoing Regents John Drew and Gary Roberts. Delgado and Hall will serve seven year terms beginning May 1.

Walker appointed UW-Madison student Nicolas Harsy to a two year term, serving as the non-traditional student regent and appointed UW-La Crosse student Anicka Purath to complete the two-year traditional student term being vacated by UW-Platteville student Chad Landes who is graduating in May and leaving the board early.

Fall Elections

Governor Scott Walker will face Democrat Mary Burke in November, and twenty legislators have announced they will retire at the end of their term or pursue higher office.

The following senators have announced they will retire at the end of their term:

  • Senator Tim Cullen (D-Janesville)
  • Senator Bob Jauch (R-Poplar)
  • Senator John Lehman (D-Racine)
  • Senator Dale Schultz (R-Richland Center)

The following assembly members will not run again:

  • Rep. Penny Bernard Schaber (D-Appleton)
  • Rep. Janet Bewley (D-Ashland)
  • Rep. Garey Bies (R-Sister Bay)
  • Rep. Fred Clark (D-Baraboo)
  • Rep. Mike Endsley (R-Sheboygan)
  • Rep. Dean Kaufert (R-Neenah)
  • Rep. Steve Kestell (R-Elkhart Lake)
  • Rep. John Klenke (R-Green Bay)
  • Rep. Bill Kramer (R-Waukesha)
  • Rep. Dan LeMahieu (R-Cascade)
  • Rep. Howard Marklein (R-Spring Green)
  • Rep. Sandy Pasch (D-Shorewood)
  • Rep. Jon Richards (D-Milwaukee)
  • Rep. Janis Ringhand (D-Evansville)
  • Rep. Pat Strachota (R-West Bend)
  • Rep. Erik Severson (R-Osceola)
  • Rep. Mary Williams (R-Medford)

UW-Milwaukee Chancellor’s Departure Forces Discussion on Importance of UW System to State

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Michael Lovell

University of Wisconsin-Milwaukee Chancellor Michael Lovell announced last week he would resign in July to become the first lay leader of Marquette University. Lovell’s departure after three-and-a-half years as chancellor came as a surprise to the greater Milwaukee community.

UW-Milwaukee has long enjoyed a good relationship with the Milwaukee business community, and Lovell maintained those close ties. Many of those business leaders recognize the importance to a strong public university system.

Sheldon Lubar, a former regent president and contributor to UW-Madison, UW-Milwaukee, and Marquette University noted the legislature’s recent treatment of UW System had an impact:

The UW System is the most important — without a rival second — the most important institution in the state, and the success of our community in Milwaukee and every community in our state is dependent on a highly educated citizenry. The university is not just a punching bag and a place you can take money from without any regard to what its impact is.

Lubar was referring to the controversy last year surrounding budget reserves. Lovell strongly defended the reserves and maintained that reserves are necessary to protect the institution from unexpected budget shortfalls.

Karen Herzog and Bill Glauber of the Milwaukee Journal Sentinel wrote Sunday that Lovell’s announcement comes as UW-Milwaukee is at a significant crossroads:

Several major construction projects are well underway, but others are still in the design phase and haven’t been funded. The university’s strategic plan is not settled — although Lovell vowed it will be finished by August, when he moves to Marquette. A massive campaign to raise hundreds of millions of dollars is just a year away. Enrollment has declined in the last three freshman classes, leading to work on a new enrollment strategy. Faculty turnover is distressing.

Geography professor Mark Schwartz, chair of UW-Milwaukee’s University Committee, told the Journal Sentinel that the university is underfunded and the legislature must decide what kind of  university it is willing to fund:

The one good thing that comes from this at some level is putting it in the hands of the state and (UW) System to really define what they want us to be. We want candidates to come in with a question mark about our status and our role in the future.

 

Tuesday, April 1 is Election Day

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election daySpring 2014 elections will be held tomorrow, Tuesday, April 1, 2014. While most races on the ballot are local and non-partisan, voters in Dane County will be asked their preferences on two legislative issues, including one on redistricting legislation:

DANE COUNTY REFERENDUM #1
“Should the Wisconsin Constitution be amended to require a nonpartisan system for redistricting legislative and congressional districts in the state?”

PROFS is registered in support of AB 185/SB 163, bills that would change the way the state draws legislative and congressional districts every ten years. The bills would shift the work of redistricting from the Legislature to the non-partisan Legislative Reference Bureau (LRB).

A second referendum asks voters if the state should legalize marijuana.

Voters can check their registration status, learn more about local races, and find where to vote on the MyVoteWisconsin website.

Legislature to Conclude Work Tuesday

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The Wisconsin Legislature will conclude its work this session on Tuesday, April 1 when the Senate meets to take up several proposals. The senate is scheduled to vote on AB 729, a bill allowing classified research on UW System campuses.

The senate is also expected to approve SB 300, a bill that would require insurers to cover oral chemotherapy in the same way that intravenous chemotherapy is covered. Newer forms of chemotherapy come in a pill form, allowing insurers to treat it as a prescription drug rather than a medical treatment. Senate leaders had originally refused to bring the bill to the floor of the senate, but relented after much public pressure. The senate must pass an amended version of the bill before it can go to Governor Scott Walker for his consideration.

Bills Signed Into Law  Governor Scott Walker signed several bills into law recently:

SB 655, a bill that included many changes to campaign finance laws. Under the new law, lobbyists may make election-year contributions to legislative candidates after April 15. Current law limits such contributions to June 1 or later.

Senate Bill 324, a bill that limits in-person early voting. Under the new law, municipalities may offer early voting weekdays from 8 am to 7 pm. Early voting on weekends will not be allowed. The governor vetoed a provision in the bill that would have limited early voting to 45 hours per week.

Assembly Bill 19, a bill that requires plaintiffs to disclose which businesses they plan sue when filing asbestos-related lawsuits. Plaintiffs must also file claims with an asbestos trust before suing individual businesses.

Senate Committee on Universities and Technical Colleges to Vote on Classified Research Bill

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Inside CapitolThe Senate Committee on Universities and Technical Colleges will hold an executive session today to vote on Senate Bill 578, a proposal that would allow classified research on University of Wisconsin System campuses. A System administrative policy currently prohibits such research.

The bill will go to the Senate on April 1 if approved today. An amended version of companion bill (AB 729) passed the Assembly February 20. The original bill included language that would allow exemptions to the state’s open records law, but that language was removed after Assembly Colleges and Universities Committee Chair Representative Stephen Nass (R-Whitewater) said he would not schedule a vote on proposal if it included the exemption.

PROFS worked with the authors of the legislation and is registered in favor of the bill. This statement was given to the senate committee at a public hearing on March 5.

The committee will also vote on several appointments to the UW System Board of Regents and Wisconsin Technical System Board. Governor Scott Walker announced three regent appointments last week and named UW-Madison student Nicolas Harsy to a two-year term as the non-traditional student regent yesterday.

Walker Appoints Three New Regents

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Governor Scott Walker named three new members to the University of Wisconsin System Board of Regents last week. The governor appointed José Delgado and Eve Hall to replace outgoing Regents John Drew and Gary Roberts. Delgado and Hall will serve seven year terms beginning May 1.

Walker also appointed UW-La Crosse student Anicka Purath to complete the two-year traditional student term. Regent Chad Landes is graduating from UW-Platteville in May and will leave the board early.

José Delgado retired as president and CEO of the American Transmission Company, a Wisconsin-based utility company, in 2010. He earned bachelor’s and master’s degrees in electrical engineering from Marquette University and an MBA from UW-Milwaukee. Delgado is vice chairman of Hispanics for School Choice advisory board.

Eve Hall is president of the African American Chamber of Commerce of Greater Milwaukee. Previously she served as chief innovation officer for the Thurgood Marshall College Fund and was national director of the Gates/Marshall School Redesign Initiative. She holds a bachelor’s degree from Florida A&M University, a master’s degree in educational leadership from UW-Milwaukee, and a doctorate in education from Cardinal Stritch University.

Anicka Purath is a sophomore from Mount Pleasant. She is a sophomore majoring in political science.

Regent appointments are subject to state senate confirmation. The governor appoints 16 citizens, including two students, to the 18 member board. The State Superintendent of Public Instruction and president of the Wisconsin Technical College System Board serve as ex officio members.

Sifting and Winnowing: Reframing the Conversation About Tuition

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Sifting and Winnowing, an independent blog for the University of Wisconsin-Madison, offers a new view on tuition today. The  anonymous writer of the blog post argues that resident tuition could be viewed as nothing more than state-subsidized non-resident tuition. When viewed this way, changes in state support will directly and more transparently affect the cost of tuition:

1. Let the overall budgetary needs of the University, constrained by market considerations (e.g., comparisons to peer universities) and/or a voluntary growth cap, objectively determine out-of-state tuition.

2. Let the state subsidy to the University, divided among the number of in-state students, objectively determine the reduction in in-state tuition relative to the out-of-state cost.

With tuition decisions framed in this way, reductions in state GPR will no longer destabilize overall university finances as they have for the past decade, but they will be much more visibly linked to reductions in affordability and/or access for in-state students.

The Great Cost Shift Continues

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Demos, a non-partisan research and policy organization, has updated its 2012 report, The Great Cost Shift. The initial report found that disinvestment in public higher education undermined the stability of the middle class by shifting costs to students and their families.

In its new report, The Great Cost Shift Continues, Demos has found that the trend of disinvestment continues unabated:

“In less than a generation, our nation’s higher education system has become a debt-for-diploma system — more than seven out of ten college seniors now borrow to pay for college and graduate with an average debt of $29,400.”

The report found all but one state, North Dakota, is spending less per student than they did before the recession, and more than half the states cut higher education funding by more than 25 percent.

Most universities responded to funding cuts with tuition increases. The average tuition at a four-year institution costs more than 15 percent of the median household income in 26 states, including Wisconsin.

Wisconsin ranks in the bottom half of states in several measures:

  • 39th, state funding for higher education per FTE State funding dropped 20.2% from 2007-08 to 2011-12 ($6,432 vs. $5,295).
  • 30th, average 4-year state tuition costs Tuition rose more than 17% from 2007-08 to 2011-12 ($6,677 vs. $7,851). Only 20 states have higher average 4-year tuition rates.
  • 29th, state higher education affordability Tuition at a 4-year state institution now takes 15.7% of the state’s median family income, compared to 12.3% five years ago.

Demos was founded in 2000 and focuses its work on three areas — achieving democracy through a guaranteed right to vote and reducing the amount of money in elections, the creation of a strong, diverse middle class through a sustainable economy, and the transformation of the public narrative to elevate the values of community and racial equity.