Texas Southern University Budget Projections

1. Texas Southern University Budget Projections Dr. John M. Rudley Faculty Assembly February 25, 2011

2. UT chief wants flexibility on pay cuts, furloughs (By Melissa Ludwigmludwig@express-news.netPublished: 11:44p.m., February 9, 2011) • Francisco Cigarroa, chancellor of the University of Texas System, asked state senators Wednesday for flexibility to cut pay for faculty and staff and mandate furloughs to cope with budget cuts topping 20 percent. • “These are large reductions that would have consequences,” Cigarroa told the Senate Finance Committee. “The method of operating our campuses is going to have to change.” • If the cuts stand, they will make higher education less accessible and affordable for students, and chip away at the overall quality of institutions, Cigarroa said. • In a weak position to recruit and hang on to great faculty, the state's seven emerging research universities — including the University of Texas at San Antonio and the University of Houston — will lose steam in their quest for Tier One research status, he said. • Faced with a budget gap of $15 billion to $27 billion, GOP leaders have proposed deep cuts for education, including a 41 percent cut to financial aid.

3. UT chief wants flexibility on pay cuts, furloughs (continued) • Kicking off several days of testimony by Texas public universities, Cigarroa asked for the ability to reduce pay and use furloughs, which are prohibited by state law, and for lawmakers to jettison data reporting requirements that are duplicative and unnecessary. • “I ask that you give us the flexibility to decide ... rather than imposing on us an across-the-board, one-size-fits-all requirement,” Cigarroa said. • James Bower, a professor of neurocomputation at UTSA and the UT Health Science Center, said faculty understands the budget situation is dire. • “If the chancellor does uniformly cut salaries or furlough people, that would be fairer and better-accepted than selected cuts,” Bower said. “I hope it does not come to that.” • Diana Natalicio, UTEP's president, said it would be a big mistake “to put constraints on a group of institutions that have a lot of momentum and are doing terrific work.”

4. UT chief wants flexibility on pay cuts, furloughs(continued) • Many presidents said the cuts to state appropriations would force them to lay off faculty, increase class sizes, raise tuition and reduce course offerings. Given the choice between restoring financial aid or state appropriations, presidents gave different answers. • Robert Nelsen, president of UT-Pan American in Edinburg, said financial aid is most critical at his campus; he could lose 2,000 students next year if lawmakers don't provide aid for incoming freshmen. • State Sen. Steve Ogden, a Bryan Republican who chairs the committee, brought up the idea of faculty taking on heavier teaching loads. • In the UT System, faculty members teach an average of about four courses per semester and spend 32 to 26 hours per week on instruction-related tasks. Other time is spent serving on committees and doing research and other scholarly work.

5. UT chief wants flexibility on pay cuts, furloughs(continued) • Cigarroa said there are ways to demote and fire tenured faculty who are not productive. And while there is a widespread perception that graduate assistants do most of the teaching at universities, it only accounts for 5 percent to 7 percent systemwide. • “You cannot get tenure if you are not a teacher,” Cigarroa said. “Tenure does not guarantee a salary for life.”

6. 2012-13 General Revenue Appropriations (Excluding Tuition Revenue Bond GR)

7. 2012-13 General Revenue Appropriations (Excluding Tuition Revenue Bond GR)

8. ***1,428 to the state wide average of 284. So we begin with the six year graduation rate of 10.4% for the 2003 entering freshman class. Under the open admission system the results of the 2003 freshman class of 2,358, after six years is as follows: In Fall of 2003, TSU served 5 times the number of students requiring developmental education as the state average for all other universities,

9. Corrective Action: In fall 2008, the first year of the new 2.0 grade point average after open admission was eliminated, entering freshman possessed an average high school grade point average of 2.7 with a mean SAT score of 800 and a mean ACT score of 15.8. Fall 2009, the mean grade point average was 2.65, a mean ACT score of 16.4 and a mean SAT score of 805. Fall 2009, TSU admitted 103 new students into its newly created honors college with an average grade point average of 3.64. Fall 2010, the mean grade point average was 2.77, a mean ACT score of 16.35 and a mean SAT score of 811 out of 1600. TSU followed up with another 100 students who were added to the honors college with grade point averages of 3.65 and above.

10. Corrective Action:(continued) We expect the 2008 class to graduate in 2014 at a percentage that approaches 23% initially and for subsequent classes, the rate is expected to rise in a range between 31% and 41% which is reflective of the profile of a commuter campus, serving an urban population where the average age of undergraduates is 24 years old and the average age of graduate students is 32 years old and 60% try and work their way through college as they are not your typical residential based population. We will target our efforts to result in an initial 23% six year graduation rate given the fact that in the 2003 class, as depressing as the numbers were, one hidden statistic is that students who did not require developmental education graduated at a rate of 24.9%. Since the new admissions standards of 2008, We also point to the fact that the percent of freshman required to enroll in developmental education decreased by 30.9% from 657 students in fiscal year 2007 the year before implementation of new admission standards to 454 students in fiscal 2009. This is a low way from the 2003 total which was 1,428 or 5 times the state wide average of 284.

11. Texas Southern has still provided students with the opportunity to become professionals in the workplace. Since 2004, we have graduated an average of 1,224 students per year. Outcomes: Number of Graduates:

12. Ideas to improve the effectiveness / efficiency of the agency / cost-saving ideas • Eliminate Low Producing Programs: Programs that have not met productivity thresholds during the five-year period (FY06-10). • Increase tuition rate for the following that do not qualify for state funding: • Credit hours of undergraduate students who have attempted the same course three or more times • Credit hour of undergraduate student who have exceeded the degree program by 45 SCH (fall1999- summer 2006) or 30SCH ( fall 2006 or later) • Credit hours of developmental education that exceeded the 18SCH limit for 4 year universities • Employee furloughs • Employee pay reductions • Close the print shop and outsource the copy center in the Student Center - sell specialized equipment - data to support.

13. Ideas to improve the effectiveness / efficiency of the agency / cost-saving ideas • Reorganize and consolidate facilities, maintenance and grounds - redundant functions/better management. • Consolidate student services call center to maximize efficiency and improve customer service • Consolidate facilities, housing and maintenance call centers to maximize efficiency and improve customer service. • Academic affairs considerations: • Reduce the sections of lower division courses to increase the class size • reduce the number of adjuncts and visiting professors • increase the number of courses taught, Master's and Doctoral levels by tenure track and tenured professors • Outsource TSU main call center operations or absorb in another call center function

14. Ideas to improve the effectiveness / efficiency of the agency / cost-saving ideas • Move all IT resources that are distributed throughout the colleges to management by OIT to increase control of software and hardware and eliminate redundancies. • Review all administrative personnel in each college, establish threshold of student population served to justify. • Reduce the use of temporary personnel • Institute a comprehensive energy management program to save university funds and take advantage of ERCOT subsidies

15. Texas Southern UniversityCIP Programs

16. Accomplishments • Enrollment growth • Strategy for improving graduation rates: • Increasing the current admission requirements (GPA, test scores) in order to improve the college readiness of students • Establishment of a new Student Academic Enhancement Services Center to effectively coordinate activities that support the retention and progression of students (tutoring, mentoring, advising, etc) • Establishment of the new Thomas F. Freeman Honors College to aid the recruitment and retention of high achieving freshmen and transfer students • Establishment of a new learning community, the Urban Academic Village to focus on retention and progression of students housed on campus by providing academic support services on 24/7 basis • Establishment of a summer academy to improve the academic preparedness of the freshman class who are close to meeting our standards for admission

17. Accomplishments • SAC's accreditation • Four years of Audited Financial Statements • Financial Stability • Bond Rating increased by 3 levels • Moody's - Baa3 with positive outlook • Fitch - BBB with positive outlook • New Executive leadership - administrative and academic • Fund Raising • Student Support services • Deferred Maintenance

18. Accomplishments • Low tuition increases in the last two years • 2010-5% • 2011-2.9% • Balanced budget - $ 6 million deficit in 2009 • Budget Reductions • Positions eliminated • 14 Faculty • 25 Administrative

19. Budget Reductions: The campus is scheduled to lose the following:

20. Analysis of Potential Funding Changes Between 2008/2009, 2010/2011 and 2012/2013 Biennium