Mississippi Institutions of Higher Learning

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Mississippi Institutions of Higher
Learning Textbook Task Force Report to the Board
of Trustees Summer 2007
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Commissioners Charge

• The overarching goal of the Board of Trustees is
  to increase graduation rates of our Mississippi
  residents.  Research shows family income and
  graduation rates have a direct relationship.  A
  national problem affecting our students is the
  increasing costs of textbooks at our
  institutions.  The prices have risen to the point
  that some students are opting not to purchase
  textbooks at all, a decision which will
  ultimately affect the quality of education they
  receive. As a result, Commissioner Meredith
  charged the Task Force Committee
  members to explore ways to make textbooks more
  affordable for Mississippi's students.

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Action Plan

• The Textbook Task Force was formed by the
  Commissioner to address a nationwide concern on
  the rising costs of text books for our students
• Mississippi is not the only state looking into
  this issue, several states have either pursued
  and/or are pursuing legislative action
• The Task Force identified a number of key issues
  on matters such as textbook selection/availabilit
  y, pricing transparency, and edition churn
• The challenge in this matter is that there are
  several players each with its own perspective on
  the issues and how it should be addressed this
  group of players includes faculty, students,
  campus administration, bookstore operators and
  publishers.
• Even with the complexity of the matter, some
  Mississippi campuses public private, 2
  4-year have begun taking local action to
  address some of these issues
• A comprehensive solution will require
  recommendations encompassing actions for all
  players

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Why Pursue The Matter

• Textbooks equal 26 of cost of education
• Average costs of textbooks range from 809 to
  904 (05-06)
• Textbook prices have increased at twice the rate
  of inflation

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Other States and Organizations Pursuing Actions

• Other states are pursuing actions
• California
• Connecticut
• Georgia
• Illinois
• Maryland
• Missouri
• New York
• Oregon
• Washington
• Government Accountability Office (GAO), an
  independent investigative arm of Congress,
  conducted a study to determine changes in
  textbook prices factors contributing to textbook
  changes and factors impacting price
  differentials between retail within and outside
  the United States.

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Summary of Findings from the 2005 GAO Study

• College textbook prices have risen at twice the
  rate of inflation during the past two decades.
• Textbook prices have risen at an average of 6
  percent each year since academic year 1987-88,
  compared with overall average consumer price
  increases of 3 percent each year.
• The impact of the cost increases of textbooks and
  supplies on students can vary greatly depending
  on the type of institution they attend. The cost
  of textbooks and supplies as a percentage of
  tuition and fees ranges from 72 percent at 2-
  year public institutions to 26 percent at 4-year
  public institutions and 8 percent at 4-year
  private institutions.
• The increasing costs publishers incur to develop
  supplements (e.g. CD-ROMs, websites, and other
  instructional materials) best explain price
  increases in recent years. Publishers report
  these materials are developed in response to
  instructors demand for them.
• Publisher-developed supplements for textbooks are
  reflective of changes in the nature of
  postsecondary education.

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Summary of GAO Study

• The GAO concluded
• given the current market environment, textbook
  prices will continue to rise, although they
  appear to be slowing relative to other higher
  education costs.

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Various Constituents

• Students
• Perceive things happening too slowly
• Thinks administration has no clear rules
• Faculty
• Plays key role in selection, but not price
  sensitive
• Concerned about content and usability
• Administration
• Must balance student needs, academic freedom,
  and profitability
• Bookstores
• Textbook is profit center
• Publishers
• Market Share

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Key Issues

• Timing of textbook selection
• Role of faculty
• Time-line for facultys adoption of textbooks
• Process for communication and coordination of
  facultys selection
• of textbooks with campus bookstore
• Choices/availability of textbook (bundling, new
  vs. used)
• Publicize options for students to save
• Concept of bundling and increase in cost
• Pricing transparency/overseas pricing
• Lack of competition
• Publishers disclosure of pricing
• Pricing to local market
• Edition churn
• Minor changes to text resulting in issuance of
  new editions
• Shelf life of books
• Customization
• Technology integration
• Need for supplementary products such as CD-ROMs,
  websites, etc. used in conjunction with
  advancements in technology.

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Key Issues

• Textbook Centers on Campus
• 7 out of 9 are outsourced
• Entry Level Textbooks
• No consistency among institutions
• 18 out of 39 textbooks are customized
• Textbooks Prices risen twice the rate of
  inflation
• Gross Margin on Textbooks
• New 22.4 (4.4 net)
• Used 35.8 (priced at 75 of new)

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Joint Actions

• Looking to fund ways to maintain academic freedom
  for campuses and professors while leveraging
  purchasing power of ALL colleges and universities
  in MS
• Looking at what textbooks across introductory
  biology, chemistry, math and psychology can be
  used at multiple campuses
• book_inquiries_master.xls

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Recommendations
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Campus Recommendations Administration

• Develop and distribute Tips for Saving Money on
  Textbooks to freshman and transfer students
  during orientation
• Conduct educational sessions with faculty on
  low-cost book selections
• Unified letter to book publishers from IEOs
• Place copies of new editions in libraries

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Campus Recommendations AdministrationContinued

• Conduct open forums on campus to raise awareness
• Improve buyback processes
• Post public record notices of textbook policy
  changes
• Establish and enforce timelines for adoption
• Provide access to textbook selection via web

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For Future Discussion For Administration

• Putting ISBN of Professors textbooks on line
• Encourage universities to develop book award
  programs
• Encourage outsourced bookstores to provide
  textbook scholarships

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Recommendations for Student Body

• Support a bill to the Legislature acknowledging
  problem
• Work to increase textbook buyback from students
• Encourage student body associations to offer
  textbook awards
• Encourage standardizations of remotes on campus
• Share findings of taskforce with other student
  body associations

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Recommendations for Bookstore

• Widely publicize price-matching policies for
  textbooks

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Recommendations for Faculty Senates

• Encourage Faculty Senate to support a bill
  publicly acknowledging the textbook problem
• Encourage faculty to commit to changing textbooks
  less frequently
• Encourage faculty to select the least expensive
  textbook that maintain academic integrity
• Encourage faculty senate to adopt a resolution
  supporting administrations adoption of a hard
  deadline for decisions on textbooks
• Encourage the release of ISBNs to information
  technology departments by deadline date
• Encourage faculty to distinguish between required
  books and recommended books

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Recommendations for System

• Board of Trustees should encourage IEOs to pursue
  a common set of textbooks among the universities
  for certain introductory courses
• Board of Trustees should encourage a resolution
  acknowledging the seriousness of the textbook
  dilemma for Mississippi students

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Recommendations for System for Legislature

• Encourage passage of bill by state publicly
  acknowledging textbook problem
• Encourage Legislature to pass a bill requiring
  publishers to disclose the changes being made in
  new editions of textbooks and the price of the
  editions
• Encourage Legislature to pass a bill requiring
  publishing companies and retailers selling
  textbooks in Mississippi to sell bundled items
  separately as well.

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Textbook Task Force

• Questions?

Questions?