The state, UW System

Board of Regents Meeting at UW-Madison Today and Tomorrow

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uw system logoThe University of Wisconsin Board of Regents is meeting at UW-Madison’s Union South today and tomorrow, February 6 and 7. Livestream coverage of the meeting is here.

Regent committees will meet Thursday morning, and UW-Madison Chancellor Rebecca Blank will address the full board at 1:15 pm today. The board will also hear a presentation on the 2015-17 biennial budget process.

Topics to be discussed in the Research, Economic Development and Innovation Committee include UW System’s technology transfer program, UW-Madison’s Discovery to Product (D2P), and UW System’s federal relations efforts.

The Business and Finance Committee will hear a report on adjustments to faculty and staff salaries in 2012-13 and receive an update on the audit of the Human Resources System.

The state’s Legislative Audit Bureau found that HRS continues to have security weaknesses after more than $33 million in overpayments of health insurance premiums and pension contributions were discovered three years ago. Their report is here.

The full board continues its meeting on Friday. Items on the agenda include recognition of UW-Madison’s PEOPLE program and a presentation of UW-Madison’s NCAA Division I Athletics 2012-13 Annual Report.

Regent committee membership and the 2014 meeting schedule is here.

PROFS, The state, UW System

Legislative Update

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Tax Cuts
Governor Scott Walker announced a tax cut proposal at his State of the State address last month. He plans to utilize part of a $912 million budget surplus to lower state income and property taxes. The plan includes:

  • A property tax cut of about $131 on a $150,000 home, Wisconsin’s median home value
  • An income tax cut of $44 to $58 for each tax filer
  • A change in tax policy that would result in the state no longer withholding more income taxes than actually owed, resulting in about $58 more per month per family

The governor’s plan adds $100 million to the state’s rainy day fund, but raises the structural deficit by about $100 million to $725 million at the end of the biennium. Assembly Republicans have indicated strong support for the plan, while Democrats and Senate Republicans have expressed concern.

The legislature is in special session to consider the proposal.

Shared Governance
PROFS continues to lobby to preserve shared governance as described in Chapter 36 of state statutes and UW System Regent policies. Key legislators said they would like to see changes in university governance at a Regent meeting last fall.

Fall Elections
State Senator Dale Schultz (R-Richland Center) announced he will not seek re-election in November. Schultz has been at odds with his Republican Senate colleagues and faced a Republican primary opponent in August.

State Senator Kathleen Vinehout announced last month she will not challenge former Trek executive and Commerce Secretary Mary Burke for the Democratic gubernatorial nomination.

Wisconsin Retirement System
The State of Wisconsin Investment Board (SWIB) announced last month the two funds it manages for the Wisconsin Retirement System (WRS) posted strong gains in 2013, allowing for the first pay increase in five years for annuitants.

PROFS is currently monitoring two bills affecting WRS:

  • Assembly Bill 470 would increase the minimum retirement age by two years. If passed, it would apply to workers 40 and younger.
  • Assembly Bill 471 would calculate benefits based on the five highest earnings periods, a change from the current three-year formula.

Both bills are in committee awaiting a public hearing.

UW System
The University of Wisconsin Board of Regents appointed UW Colleges and UW Extension Chancellor Raymond Cross next president of the University of Wisconsin System. Cross succeeds Kevin Reilly who stepped down in December to take a position with the American Council on Education. UW-Extension Interim Provost and Vice Chancellor Aaron Brower was named Interim Chancellor of UW Colleges and Extension.

Several campuses are in the process of searching for new chancellors – UW-Green Bay, UW-Stout, UW-Oshkosh, and UW-Colleges and Extension.

The state, UW System

State’s Higher Education Leaders Express Concern Over College Ratings System

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Leaders of the University of Wisconsin System, the Wisconsin Association of Independent Colleges and Universities, and the Wisconsin Technical College System released an open letter to President Barack Obama and members of the United States Congress expressing support of the president’s overall vision to improve access and affordability in higher education.

At the same time, the chancellors and presidents expressed deep concern over changes to the Postsecondary Institution Ratings System (PIRS). They are worried that the system could limit student choices and financial aid, ultimately harming affordability and access for the state’s students.

Their letter listed three items of concern:

  • The proposal to tie federal financial aid to college rankings which could unfairly harm institutions that serve disadvantaged students who might take longer to complete a degree.
  • Data about admission, cost, students and faculty are public and widely available. The creation of  a new system could be redundant.
  • Ratings systems can lead to standardization, resulting in less innovation. The leaders support regulatory waivers that would allow campuses to pursue new educational delivery models.
The national context

Rubenstein to World Economic Forum: Humanities Important for Future Job Success

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David Rubenstein, co-founder of the Carlyle private equity firm, recently told world economic leaders gathering in Davos, Switzerland that students today need the critical thinking skills that are developed by the study of arts and humanities.

Rubenstein believes the emphasis on STEM (science, technology, engineering and math), has come at the expense of the study of literature and philosophy and that a well-rounded education based in the humanities will lead to greater success in one’s career. He noted that many top executives received degrees in the humanities and that technical job skills can be learned later on the job.

Rubenstein had these words for students choosing their course of study: “You shouldn’t enter college worried about what you will do when you exit,” noting that “H=MC — Humanities equals more cash.”

 

The national context

Liberal Arts Graduates and Employment

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Liberal Arts Graduates coverThe National Center for Higher Education Management Systems and the Association of American Colleges and Universities released a report yesterday that provides data on employment outcomes of liberal arts graduates.

The report, Liberal Arts Graduates and Employment: Setting the Record Straight, compared salary and employment data of liberal arts majors with that of science, math, and engineering graduates and professional and pre-professional graduates.

The findings come at a time when a traditional liberal arts education is seen by some as a luxury and perhaps not the best path to a well-paying job:

“Recent attacks on the liberal arts by ill-informed commentators and policy makers have painted a misleading picture of the value of the liberal arts to individuals and our communities. As the findings in this report demonstrate, majoring in a liberal arts field can and does lead to successful and remunerative careers in a wide array of professions.” — Carol Geary Schneider, president AACU.

The study found that employers want workers with both broad knowledge and specific skills — four out of five employers agree that all students should have broad knowledge in liberal arts and sciences. 

The report also found salary outcomes should be measured over an entire career. Earnings of liberal arts graduates, especially those who attain advanced degrees, can outpace professional and pre-professional graduates over several decades.

The state

State of the State: Governor Walker to Propose Tax Cuts

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Governor Scott Walker

Governor Scott Walker

Governor Scott Walker will offer more details about his proposed $504 million tax cut in his State of the State address at 7 pm this evening. The speech will be broadcast live on public radio and television, with audio stream and video stream available online.

The governor plans to utilize part of the $912 million budget surplus to lower state income and property taxes. The Legislative Fiscal Bureau announced last week that tax collections are expected to exceed initial projections, allowing for a surplus at the end of the 2013-15 biennium.

Some details have already become public:

  • A property tax cut of about $101 on a $150,000 home, Wisconsin’s median home value
  • An income tax cut of $44 to $58 for each tax filer
  • A change in tax policy that would result in the state no longer withholding more income taxes than actually owed, resulting in about $58 more per month per family

The governor’s plan adds $100 million to the state’s rainy day fund, but raises the structural deficit by about $100 million to $725 million at the end of the biennium.

Assembly Speaker Robin Vos (R-Rochester) indicated broad support of the plan among Assembly Republicans: “Our caucus is united behind the idea of having it go to property tax relief and income tax relief.”

Democrats and Senate Republicans, however, have expressed concern. Senate President Mike Ellis (R-Neenah) and Senator Dale Schultz (R-Richland Center) both have said the would like to pay down structural deficit while Senate Minority Leader Chris Larson (D-Milwaukee) and Assembly Minority Leader Peter Barca (D-Kenosha) told reporters they would like to fund gaps in Medicaid and W-2 before implementing tax cuts.