Effectiveness and Efficiency Project

1
Effectiveness and Efficiency Project

• Report to the House Appropriations
• Sub-Committee on Education and Economic
  Development
• January 25, 2005

2
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

3
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

4
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

5
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 USMs 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

6
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 EE Value 26.6 million

7
USM Financial Aid Task Force
8
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

9
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

10
Financial Aid Task ForceRecommendations (contd)

• 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

11
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