University of Nevada, Las Vegas

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University of Nevada, Las Vegas University of
Nevada, Reno Nevada State College College of
Southern Nevada Great Basin College Truckee
Meadows Community College Western Nevada
College Desert Research Institute
NSHE BUDGET OVERVIEW January 27, 2009
Presentation to the Legislative Commissions
Budget Subcommittee
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Todays Presentation

• The Governors Budget Recommendation
• Why the Governors recommended budget is
  unacceptable and the devastating impacts it will
  have on NSHE and the State of Nevada
• Nevadas Future
• Where we are headed as a state and how higher
  education plays a critical role in the states
  future success
• NSHE Overview
• Who we are, what we do, and where we are heading
• Accountability how NSHE is performing

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The Governors Budget Recommendations
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2009-2011 Budget Recommendation
from the Governor
35.9 cut in General Fund appropriations from the
2007-09 legislative approved budget

• 5.2 from the salary reductions
• 2.1 Sage Commission recommendations
• (employee
  health insurance changes, retiree health
  insurance changes, etc.)
• 28.6 in operating cuts

35.9
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Other States
Is Nevada unique in its budget shortfall?
No, most states are experiencing financial
difficulties.

• Exact level and potential strategies are still
  under discussion in most state legislatures.
• Higher education is likely to see some
  reduction in state support in those states with
  severe difficulties, like Arizona and California.
• However, in no other state is higher education
  being used as the primary tool to balance the
  state budget NSHEs share of all budget cuts
  across the state is 75.
• In no other state are cuts to universities at
  50 percent and above being considered such a
  cut is understood to end an institutions
  standing as a university

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General Fund Appropriations
The Governor noted that with his recommendation
NSHE will receive 13.7 of the General Fund
compared to the national average of 11.2.
What does that really mean in terms of where
Nevada ranks nationally?
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Given the current fiscal crisis facing the state,
Nevada will surely move to 50th in the nation in
terms of per capita General Fund expenditures for
FY 2010 and beyond.
Sources 2007 State Expenditure Report, National
Association of State Budget Officers U.S.
Census, Annual Population Estimates
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Higher Education expenditures per Nevada citizen
were significantly below the national average in
2007.
Sources 2007 State Expenditure Report, National
Association of State Budget Officers U.S.
Census, Annual Population Estimates
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Governors Recommendation
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Actual Impact of Governors Recommendation
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How big is the cut?
Currently, the formula for NSHE is funded at 85.5
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Putting the Cuts in Perspective
No Easy Decisions . . . .

• Scenario 1
• Close UNLV
• (including Law and Dental)
• Close GBC
• Scenario 2
• Close UNR
• (including the Med School)
• Close NSC
• Scenario 3
• Close CSN
• Close NSC
• Close DRI
• Close the Law School
• Close the Dental School
• Close the Medical School

The magnitude of the Governors recommended cuts
will mean closing institutions and eliminating
programs. Class sections will be cut, students
will not graduate on time, and institutions will
have to layoff employees.

• Scenario 4
• Close all four
• community colleges
• Close NSC

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Putting the Cuts in Perspective
Layoffs Potentially 2,000 to 2,200 NSHE
employees will lose their job. Many of those
individuals are researchers and educators who
will be forced to leave the state for other
employment opportunities. FTE figures
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Putting the Cuts in Perspective

• Layoffs of continuing faculty are not possible
  without declaring financial exigency
• NSHE institutions will be forced to break
  employment contracts
• Litigation will follow
• NSHE institutions will end up on national watch
  lists for financial instability
• Bond ratings will be negatively impacted
• Institutional reputations will suffer
• Potential for greater unionization
• Ability to recruit faculty and students will be
  seriously impaired

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Taxing the Students
Fees Necessary to Fill the Budget Gap UNIVERSITIES
Students would have to pay as much as 2½ times
what they are currently paying in registration
fees.
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Taxing the Students
Fees Necessary to Fill the Budget Gap STATE
COLLEGE
Again, students would have to pay as much as 2½
times what they are currently paying in
registration fees.
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Taxing the Students
Fees Necessary to Fill the Budget Gap COMMUNITY
COLLEGES (lower division only)
Some students would have to pay as much as 3½
times what they are currently paying in
registration fees.
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Taxing the Students
Where that puts our institutions with respect to
the WICHE median of state averages . . . .
NOTE Amounts for all fee categories above are
based on 30 credit hours for undergraduate
students and 24 credit hours for graduate
students, and also include all currently approved
mandatory fees - as defined by WICHE.
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Taxing the Students
Where that puts our institutions with respect to
the WICHE median of state averages . . . .
NOTE All fee categories notes above are based
on 30 credit hours and include all currently
approved mandatory fees .
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Taxing the Students
Another perspective, undergraduate fees currently
paid at selected universities in the West . . . .
average paid, includes mandatory fees
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Taxing the Students
Another perspective, undergraduate fees currently
paid at selected community colleges in the West .
. . .
average paid, includes mandatory fees
22
State Supported Operating Budget
2007-09 Legislature Approved
2009-11 Gov Rec with Fee Increases to Address Cuts
Where we are headed if these fee increases are
required . . . The students will support a
greater portion of the state-supported
operating budget than will the state itself.
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The Consequences of
Dramatic Tuition and Fee Increases
Increasing fees to this level will have serious
consequences for our institutions and for Nevada
. . . .

• Enrollments will certainly decline as many
  students cannot afford to pay more and Nevadas
  future workforce will suffer
• Financial Aid will become more critical than
  ever, but there is no additional funding for
  financial aid
• Nevada already ranks 49th in the nation in
  terms of the college participation rate for
  students from low income families (Postsecondary
  Education Opportunity, February 2007)

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Other Consequences

• NSHE will lose federal research and program
  dollars as required matching funds will disappear
• Required accreditation status will be in
  jeopardy
• With loss of accreditation, NSHE students will
  no longer be eligible for federal loans or
  veterans support
• Students graduating from a non-accredited
  institution cannot be admitted to graduate and
  professional schools
• Economic Diversification without the educated
  workforce that higher education provides,
  economic diversification and attracting new
  hi-tech companies to Nevada will become more and
  more difficult

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The Consequences of Budget Cuts
Cuts to higher education will have real and
devastating impacts . . . .

• Nevada will not have enough doctors to serve
  our citizens in years to come.
• Nevada will not have enough nurses to serve our
  citizens in years to come.
• Our schools will be over crowded as we will not
  have enough teachers to educate our children in
  years to come.

What kind of Nevada do you want for your children?
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Some External Perspectives on Higher
Education
This State has so much to offer from an outdoors
standpoint, but education is truly the key to
Nevada continuing to attract and retain good
companies and people. Francis X. Huppman,
Regional Director of Operations, Sherwin-Williams
Company In the emerging global economy, our
countrys greatest contributions are ideas and
innovation. This is fueled by our
entrepreneurial spirit and by our colleges and
universities which explore new boundaries,
stretch our thinking, and prepare a versatile
workforce through teaching and research. Edward
Estipona, President, Estipona Group Education
is one of the most important investments we can
make because strong schools produce tomorrows
voters, business owners, civic leaders,
educators, artists and parents. They train the
knowledge workers of tomorrow. Companies large
and smallincluding Wells Fargoneed employees
who can read and prepare reports, speak languages
to increasingly diverse customers, and perform
complex math and science functions needed in a
high-tech economy. Kirk Clausen, Nevada Regional
President, Wells-Fargo Bank Jay Kornmayer,
Executive Vice President, Wells-Fargo Bank
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Some External Perspectives on Higher
Education

• We have state of the art facilities, with
  brilliant professors and a myriad of subjects
  available for future leaders to master. What a
  shame it would be to become stagnant because of
  the extra efforts needed to fight for more
  funding. Our quality of life and our
  communities economic development depend on
  this!
• Rick Reviglio, Vice-President/General Manager,
  Western Nevada Supply
• We need people who have critical thinking
  skills, understand technology, marketing,
  business models, finance and business principles
  Our factories and offices in Reno and Las Vegas
  depend on the Legislature and the Nevada System
  of Higher Education to fund quality colleges and
  universities to meet the needs of todays
  students and tomorrows workforce.
• T.J. Matthews, Chief Executive Officer, IGT

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Nevadas Future
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Planning for Nevadas Future
What we anticipate happening in Nevada in the
years to come . . .

• A growing population
• A growing number of high school graduates
• An increased demand for an educated workforce

THE PROBLEM We continue to lose students at
every point in the states education pipeline
(K-12 to college graduation)
THE CHALLENGE Fixing our leaky education
pipeline
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A Growing Population
Source State of Nevada Demographer
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Growing Number of High School Graduates
52 increase in the number of high school
graduates in Nevada by 2022
Source Western Interstate Commission for Higher
Education (WICHE)
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Change in Nevadas Workforce and
Population Ages 19-64 (2006-2016)
Fields that require a college degree
Source NV DETR, NV State Demographer
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Challenge Educational Attainment
Source U.S. Census Bureau, 2006 American
Community Survey (higheredinfo.org)
NCHEMS predicts that Nevada will lose ground in
the percentage of its workforce that is
college-educated. The most substantial growth
will occur in the less than high school and
high school only populations of the state.
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Nevadas Leaky Education Pipeline
Transition and Completion Rates from 9th Grade to
College, 2006
For every 100 Nevada 9th Graders
Only one in ten 9th graders in Nevada will
achieve a college education.
of these, 51 graduate high school
of these, 26 will enter college
Nevada graduates only half the students compared
to the national average.
of these, 18 will still be enrolled in their
sophomore year
of these, only 10 will graduate within 150 time.
Source higheredinfor.org
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Challenge Fixing a Leaky Pipeline
Percent of Total Population Enrolled in College
(18-24 Years Old) 2007
29.7
49th
Source higheredinfo.org
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We are getting further and further behind . . .

• Enrollment as percent of Nevadas Population
  (ages 19-64)
• 2007 6.28
• 2008 6.01
• 2009 5.91
• 2010 5.81
• 2011 5.75
• 2012 5.69
• 2013 5.65
• 2014 5.63
• 2015 5.61
• 2016
  5.62
• 2017
  5.62

Source NSHE Enrollment Reports, NV State
Demographer
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Challenge Fixing a Leaky Pipeline
NSHE Capture Rate of Recent High School Graduates
by County, Fall 2007
Source NSHE Remedial Report
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We know that the problem is,
so whats the solution?

• Recruit, retain, and graduate more students
• Concerted statewide efforts to develop policies
  that will plug the holes in our leaky education
  pipeline
• Create a college-going culture

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NSHE Overview
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NSHE Governing Board
Eight institutions serving over 110,000 students,
governed by a 13-member elected Board of
Regents
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NSHE Overview

• Two Research Universities (UNLV UNR)
• Offer education from the baccalaureate through
  the masters and doctoral levels
• Provide comprehensive research opportunities
• Strive to make significant contributions to new
  knowledge, economic development and the culture
  of the state
• Combined preliminary student headcount of 45,000
  in Fall 2008

• One State College (NSC)
• Established to provide four-year degrees that
  meet critical shortage areas in Nevadas
  workforce (nursing teaching)
• 2,100 students enrolled in Fall 2008 (preliminary
  headcount)

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NSHE Overview

• Four Community Colleges (CSN, GBC, TMCC, WNC)
• Comprehensive community colleges offering
  two-year associate degrees including transfer and
  occupational programs
• Opportunity to offer select baccalaureate degrees
  (GBC) dental hygiene (CSN) construction
  technology (WNC)
• Offer remedial/developmental education
• Provide occupational training and certification
• Encourage continued education and personal
  enrichment
• Combined preliminary student headcount of 63,000
  in Fall 2008

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NSHE Overview

• One Research Institute (DRI)
• Focuses on environmental sciences and application
  of technologies
• Engages in fundamental and problem-oriented
  research within an entrepreneurial and academic
  culture
• Conducts more than 50 million in environmental
  research each year
• Employs more than 500 research faculty and
  support staff

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Population Trends in Nevada NSHE
1997 thru 2007

• One of the fastest growing states in the nation
  for the last 19 out of 21 years (US Census)
• Fastest growing number of high school graduates
  (NCES)
• 3rd fastest growing public system of higher
  education in the nation (NCES)

Source NSHE enrollment growth of 37.9 percent
based on Official NSHE Enrollment Report, Nevada
Population growth of 45.4 percent from the U.S.
Census, and Nevada Public High School Graduate
growth of 53.4 percent from WICHE.
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Population Trends in Nevada NSHE
Source NSHE enrollment growth of 18.8 percent
based on NSHE Enrollment Plans 2007-08, Nevada
Population growth of 19.7 percent from the Nevada
State Demographer, and Nevada Public High School
Graduate growth of 29.0 percent from WICHE.
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NSHE Enrollment
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NSHE Enrollment
Headcount Enrollment Students enrolled in at
least one credit course. Community colleges
comprised 57 percent of preliminary total
headcount enrollment in Fall 2008. Community
colleges comprised 59 percent of total headcount
enrollment in 1998.
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NSHE Enrollment
Full-time Equivalent (FTE) Measure of student
workload One FTE is equal to student enrollment
in 15 undergraduate, 12 masters, or 9 doctoral
academic credit hours per semester. The
universities comprise 50 percent of system FTE in
2007-08. The universities comprised 56 percent
of systemwide FTE in 1997-98.
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NSHE Enrollment
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NSHE Projected Enrollments
FTE is expected to meet 77,000 by 2017, an annual
average increase of 2.
Source NSHE Enrollment Plans 2007-08
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NSHE Projected Enrollments
Source NSHE Enrollment Plans 2007-08
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College Participation Losing Ground
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University Graduation Rates
Graduation rates for students attending an NSHE
university are declining since a peak in 2004-05.
In 2005-06, the graduation rates for
degree-seeking students at NSHE universities was
significantly lower than the national graduation
rate of 57.5 percent for 4-year institutions
(NCES).
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Graduation rates for students attending an NSHE
community college are rising, hitting all-time
high in 2006-07. However, in 2005-06, the
graduation rates for degree-seeking students at
NSHE community colleges was significantly lower
than the national graduation rate of 32.3 percent
for 2-year institutions (NCES).
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Accountability Highlighting NSHE Performance
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We Know Education Matters
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NSHE Master Plan Goals
Quality Education Nevadas system of higher
education will provide consistently excellent
learning experiences for its students through
instruction, research, and service. A Prosperous
Economy Through instruction, research, and
service, higher education in Nevada will be an
essential element in developing and sustaining a
strong, dynamic, knowledge-based economy for
Nevada. P-16 Education Higher education will
increase partnerships with the K-12 system to
ensure the cooperative delivery of education from
pre-kindergarten through college degrees.
Building Quality of Life Higher education in
Nevada will be instrumental in advancing
societys objectives and enriching the lives of
Nevadas citizens. Opportunity and Accessible
Education for All Nevadas system of higher
education will increase the overall participation
and success of Nevadans enrolling at all levels
of higher education and in all ethnic groups, and
will address the unique educational needs of a
highly diverse and non-traditional population.
Student-Focused System The higher education
system in Nevada will create a welcoming,
respectful and friendly environment where all
students have the opportunity to participate and
succeed at every level of higher education.
Reputation for Excellence Nevadas institutions
of higher education will increase their national,
regional, and statewide reputation based on
targeted, outstanding, innovative programs and
other accomplishments.
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Holding NSHE Accountable 2007-08
Accountability Report
An annual report on NSHEs progress towards
specific goals
Posted on our Web site www.nevada.edu and
included in your book (2nd tab)
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The Impact of Budget Cuts on
Performance Indicators
Progress toward the goals established in the NSHE
Master Plan are measured using specific
performance indicators that are updated on an
annual basis in the NSHE Accountability Report.
Regardless of budget reductions, we will continue
to use our performance indicators to measure
progress towards NSHE goals. While we anticipate
that budget reductions will have real and
significant impacts on the Systems ability to
continue to make progress toward certain goals,
the actual impact will be reflected in future
accountability reports as the outcomes related to
budget reductions are realized and show up in the
data for each performance indicator. Therefore,
the 2007-08 NSHE Accountability Report does not
reflect the impact of the 2007-09 budget
reductions, as there is a lag in that impact that
will be realized in the future.
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Economic Development
The NSHE had a 53.5 percent growth in research
and development expenditures from 2001-02
to 2005-06. This is a noticeable increase
compared to the nation, whose growth in
expenditures was only 31.5 percent from 2001-02
to 2005-06 (National Science Foundation).
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Workforce Development - Nurses
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