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Effectiveness and Efficiency Project

Report to the House Appropriations Sub-Committee on Education and Economic Development

January 25, 2005

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Why an E & E Initiative?

Maintain Affordability, Access and Quality

Address fiscal pressures related to:

• Tuition affordability

• Projected enrollment increase of 30% over the next decade– “Baby boom echo” & “Thornton effect”

• Escalating costs (including healthcare, energy, and technology)

• Sustaining academic quality

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E & E Legislative Report

Report contains 16 Action Items:

• Implementation under way

• To be completed or substantially implemented over the next two years

• Ensure accountability through internal and external reports

• Savings directed at mitigating tuition increases and maintaining quality

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E & E “Academic Action Items”Action items to mitigate tuition increases and build

institutional capacity:

• Faculty Workload- Increase teaching loads 10% across the USM

• Time to Degree- Limit most baccalaureate programs to 120 credits

• On-line and out-of-classroom learning- Students to complete 12 credits outside traditional classroom

experience

• Enrollment management- Maximize utilization of institutional capacity

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E & E “Administrative Action Items”Action items to reduce costs, mitigate tuition increases and fund

quality:

• Review organizational structure of “special-purpose institutions” (UMUC, UB, UMBI, UMCES)

• Procurement– Leverage USM’s buying power, e.g., PeopleSoft, IT, Electricity RFP

• Enrollment Management Services– Streamline student services functions to eliminate unnecessary duplication

• Support and Administration:– Collaborate on “shared services” such as Finance and Human Resource

Management

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Anticipated Impact

• Building Capacity:- Academic initiatives will enable USM to serve an additional 2,100 students over the next three years (FY 2006 – 2361 FTES)

-- 20% - 25% of enrollment growth-- no additional cost to the State

• Reducing cost and funding quality:

- Administrative initiatives will enable USM to free up money for investment in quality and to mitigate tuition increases

• FY 2006 fiscal impact:- Academic Action Items: $9.5 million- Administrative Action Items: $17.1 million- Total Estimated E&E Value $26.6 million

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USM Financial Aid Task Force

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Financial Aid Task ForcePrinciples

• Hold students with greatest financial need harmless

• Emphasize grants over loans

• Emphasize need-based aid

• Work collaboratively (federal, state and institutional levels)

• Redirect savings from efficiency efforts to financial aid

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Financial Aid Task ForceRecommendations

• Improve balance of need-based versus non-need- based aid– Increase financial aid funding at all levels

– Target the 75th percentile of peers in average percent of need met

– Allocate tuition increase revenue to need-based aid

– Target fund-raising activities for need-sensitive scholarships

– Increase community college transfer student access to financial aid

– Modify graduate/professional financial aid to address faculty in workforce shortage areas

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Financial Aid Task ForceRecommendations (cont’d)

• Decrease student debt burden by increasing grants – Educate students about debt management and alternative

funding

– Monitor student debt burden

– Ensure that students with greatest need graduate with least amount of debt

• Streamline administrative processes through E & E Initiative

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Summary

USM undergoing a system-wide reengineering – Effectiveness and Efficiency Program continuing– Financial Aid Task Force completed– Tuition Task Force completed– Enrollment Study under way– Strategic Plan Update completed

USM is addressing

affordability, capacity and quality