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University of Connecticut Budget Proposals 1997-99 Biennium


Introduction

Connecticut's educational system is the foundation of Connecticut's future. Today, there are 22,316 students enrolled at the University of Connecticut, the state's only public research
UConn Budget Packet
President Austin's testimony to the General Assembly
Cost Savings Initiatives - March 5, 1997
Budget Proposal -- 1997-99 Biennium
UConn's response to the OMP budget summary
Selected charts
university. 90,000 UConn alumni live within Connecticut's borders. The University is proud of the role it plays in educating our citizenry. Connecticut's higher education system is our state's prime competitive advantage: our brainpower has been, and remains, our economic strength. It is not cheap labor, but a talented, diverse and motivated workforce that will move Connecticut successfully into the 21st century. The University of Connecticut produces these highly educated citizens, trains them for an ever-changing workplace, and uses its intellectual and physical resources to turn research into advanced technology which creates jobs, products and industrial growth.

The University of Connecticut, like the other institutions that together comprise Connecticut's public higher education system, has provided information in response to the request to plan for a 10% reduction in state appropriations. This comes on the heels of a history of dwindling support:

  • Connecticut ranks 47th among the states in its support for higher education.


  • In the past decade, the University's share of the state appropriated General Fund budget has gone from 2.5% to 1.47%.


  • From 1989 to 1996, in-state tuition at UConn has increased by 128%. Since 84% of our students are Connecticut residents, the impact of this increase is felt right here at home.


  • Since 1988-89, the impact of inflation, valued at $50 million, has been absorbed by the University, its students and their parents.


  • The state appropriation as a percentage of the University's operating budget has dropped steadily from 47% in 1987-88 to 35% in 1996-97.


  • Connecticut ranks 2nd in the nation in the percentage of high school graduates leaving their state of residence to pursue higher education--a phenomenon frequently referred to as the "brain drain." Almost 53% of our students enroll as college freshmen elsewhere. Only Alaska exceeds this rate of loss; the national average is 20%.




Recognizing that it is investment rather than reduction in higher education that will best serve Connecticut, the University of Connecticut proposes the following budgetary initiatives for the next biennium.

  1. PARTNERS IN ECONOMIC DEVELOPMENT


As Connecticut's partner in economic development, the University's mission is to respond to Connecticut's economic needs through the transformation of research and education into useful technology that creates jobs, products and industrial growth. Although research, economic development and technology transfer have traditionally been seen as the separate provinces of separate sectors of our state and nation, the demands of a global economy now dictate a rethinking of traditional roles. Bringing businesses and University scientists together to create new technologies and products is critical for ensuring Connecticut's economic vitality. To this end, the University is proposing the following initiative:

  • Maintaining and expanding technology based, market-driven applied research programs such as the Critical Technologies Program;


  • Establishing an aggressive Technology Transfer Office to assist in the commercialization of new University technologies through patenting, licensing and new business start-ups; and


  • Creating appropriate incubator space for the research and development phases of business start up, when proximity to University resources is critical; with the transition to the production phase, newly incubated companies would be spun off to industrial sites such as Windham Mills.


A. THE CRITICAL TECHNOLOGIES PROGRAM

Background:

In only two years of operation, the Critical Technologies Program has already proven itself a resounding success. The goal of the state-enacted program was to foster productive partnerships among the state's academic, industrial and government sectors in order to: increase the amount and rate of technological innovation in Connecticut, transfer this technological knowledge to the private sector, create new jobs and expand and diversify the state's tax base. Its focus is biotechnology (pharmaceutical, biomedical, aquaculture and agriculture), photonics, advanced material science, marine sciences, drug design and environmental research. Researchers from the University of Connecticut, including its Health Center, and from Yale University work with Connecticut companies toward that goal. In addition, the UConn program has generated approximately $6.5 million in federal funds. Over 40 small companies have attested to the important role the program plays in enabling them to grow and prosper.

It is significant that the greatest beneficiaries have been small businesses, a critical component of the state's economic future. These small companies, however, do not have in-house research capabilities or the needed technical expertise. They must have access to the breadth of expertise available at a research university as well as assistance in bridging the development gap from conception to production. Examples of UConn activities in the Critical Technologies Program are:

1. Developing fast growing talapia fish strains as the basis for a promising aquaculture in the state (and attracting a company to the state that is pursuing the commercial potential);

2. Assisting in bringing to market a new, cost-efficient lead paint encapsulation product;

3. Perfecting a new pollution prevention device that is expected to create a $50,000,000 business segment; and

4. Participating in the development of new optoelectronics materials which has led to filing for several patents and the licensing of a technology.

Proposal:

The University requests that the Critical Technologies Program be restored to its original funding level of $6 million in each year of the coming biennium. (Funding for 1995-96, the most recent allocation, has been reduced to $2.95 million.)

B. UNIVERSITY-WIDE TECHNOLOGY TRANSFER PROGRAM

Background:

University faculty research generates approximately fifty (50) invention disclosures a year, a number that can be increased substantially with some front-end investment. Each of these disclosures receives a rigorous in-house evaluation as to its patentability and commercial potential. For FY1996, fifteen patents were issued and $501,874 in related income was generated. In addition, eight new commercial development agreements were completed. The flow of activity is expected to increase as a result of the Critical Technologies Program. Currently, the Technology Transfer Office is staffed by only one professional who is expected to provide services covering all aspects of the technology transfer process, illustrated as follows:

Research -> Invention -> Disclosure -> Evaluation -> Patent ->

Assignment to University -> Marketing -> License/Spinoff -> Royalty/Other Income

Proposal:

The proposed plan calls for a major expansion and reorganization of this office, including hiring a new director, two new technology transfer agents and a licensing officer, all of whom will serve both the Storrs and Health Center Campuses. These individuals will have the technical and marketing expertise in high yield technology fields to accelerate the process of moving technologies out of the University and into the marketplace. Further, this expansion will enable the office to handle a greater volume of work as well as make possible more effective interaction with relevant state agencies, private companies and industrial parks. It is projected that the proposed reorganization of the Technology Transfer Office will lead to self-sufficiency in three years. The cost for this reorganization is projected to be $1 million in 1997-98, with these funds to be built into the base budget for 1998-99. No additional funds are requested for 1998-99.

C. CREATING INCUBATOR SPACE FOR UNIVERSITY-BUSINESS COLLABORATION

Background:

New start-up companies in their early stages need inexpensive laboratory space to facilitate their research and development phases. The closer this space is to University research and expertise, the better their chances for success. Within the severe limitations of currently available space, the University is attempting to offer incubation opportunities to small companies in the Marine Sciences and Technology Institute, the Photonics Center and the Precision Manufacturing Enterprise Building.

Proposal:

Federal funding for the previously planned Advanced Technologies Institute Building could still be available to construct approximately 80,000 square feet of space in which University resources could support the incubation needs of the business world. The $10 million from the U.S. Department of Energy, with the required $10 million match in already authorized bond funds, could fund a facility designed to meet the needs of Connecticut's targeted industry clusters. The University would meet with Critical Technology Program business affiliates, among others, to determine the type of space needed and plan accordingly. Generally, the space would be very flexible: some basic office space, generic space (conference, copying, etc.) to be shared by all, good HVAC systems, wet and dry lab space - all to be designed in a modular fashion to accommodate changing tenants and needs. As newly incubated companies move towards the production phase, they will be encouraged to relocate to industrial space at sites such as Windham Mills. Since the release of federal dollars is contingent upon the release of state matching funds, the state's commitment is a necessary precondition to moving forward on incubator space.

D. CONNECTICUT INFORMATION TECHNOLOGY INSTITUTE (CITI)

Background:

The Connecticut Information Technology Institute (CITI) is a University - industry partnership newly created to address the needs of information technology businesses in Fairfield County (1) by offering bachelor's and master's degrees in information technology fields at the Stamford campus and enhancing the capacity of the baccalaureate programs to produce more information technology graduates, (2) by developing a market driven, high quality set of professional development courses based at the Stamford campus to provide state-of-the-art training for information technology professionals, and (3) to create a forum for the sharing of information and issues among the information technology companies in Fairfield County.

The CITI organizational structure will be tailored to meet its unique mission. CITI will be based at the Stamford campus and the CITI Director will report jointly to the University's Deans of the Schools of Business Administration and Engineering. A steering committee consisting of the designees of the Deans of the School of Business Administration, School of Engineering, and the Division of Extended and Continuing Education, the Director of the Stamford campus or designee, and a representative of the Chancellor's Office will oversee the day to day operation. An external advisory board consisting of one representative from each of the corporate members of CITI will provide input on the Institute's general direction and be called upon to form subcommittees to address specific topics.

The CITI offerings will include the following degree programs designed to increase the quantity and quality of the information technology labor pool in Fairfield County.

1. Master of Science in Computer Science and Engineering with a software engineering concentration

2. Executive MBA in Business Administration with an information technology track

3. A Bachelor's in General Business with a strong information technology emphasis

4. A Bachelor's of General Studies in Technical Writing and Communications

5. A Bachelor's of Science in Computer Science and Engineering

6. A Bachelor's of Science in Management Information Systems

Proposal:

The annual operating costs of CITI are estimated at roughly $3.5 million. These costs would be covered by $1 million in new state support, $2.2 million in membership dues, course fees, and student tuition, and $0.3 million in endowment income. A $6 million target has been established for the CITI Endowment; at the present time, $1 million has been definitely committed to the CITI Endowment. The University therefore requests $1 million for 1997-98, with these funds to be built into the base budget for 1998-99. No additional funds are requested for 1998-99.

E. PROFESSIONAL SCHOOL ENHANCEMENT

Background:

The University's Strategic Plan calls for additional investment in University programs that hold great promise in achieving national prominence. For the coming biennium, the priority areas are the Schools of Business Administration, Law and Pharmacy. In Business Administration, the University proposes to expand business offerings and outreach to the business community through the regional campuses and Storrs targeting programs in insurance, health systems and entrepreneurship. The School of Law, already well-respected, needs additional investment to increase access and to move into the forefront nationally. The School of Pharmacy requires an infusion of dollars to convert its program to a Doctor of Pharmacy structure in order to keep pace with national trends--and to respond to the ever-growing needs of the pharmaceutical industry in Connecticut.

Proposal:

The University requests $2 million for 1997-98 to support these program enhancements, with these funds to be built into the base budget for 1998-99. No additional funds are requested for 1998-99.

F. REGIONAL CAMPUSES

Background:

The Stamford and Avery Point campuses of the University are the sites of two significant capital programs under UCONN 2000.

Proposal:

The University requests new funds to support the costs of operations and modest program expansion as the campuses are enhanced. The request for Stamford is $1.2 million in 1997-98 and an additional $1.4 million in 1998-99. The request for Avery Point is $1 million in 1997-98, with these funds built into the base budget for 1998-99. No additional funds are requested for 1998-99, although the timing of the Avery Point capital project is such that increased operating funds may be necessary in the subsequent biennium.

2. ENHANCING THE UNDERGRADUATE EXPERIENCE

Background:

The Strategic Plan calls for a renewed emphasis on the undergraduate experience. This emphasis is essential for two reasons. First, our students deserve the best possible undergraduate education. Second, the University must compete effectively with other institutions, public and private, in-state and out-of-state, for qualified students. The University's focus on undergraduate education includes several components, all designed to achieve the following goals:

  • actively engaging students in the learning process


  • ensuring personal support networks for all students


  • emphasizing membership in the University community.


A. FRESHMAN EXPERIENCE

In thinking through a comprehensive strategy for improving the undergraduate experience, the logical place to start was the earliest point in the college experience. A host of new options were offered on a pilot basis to freshmen this year, starting with an expanded Week of Welcome, extending the summer orientation program. To help freshmen make a comfortable and meaningful transition to college life, the University offered three new options: freshmen interest groups, freshmen seminars, and seminars on undergraduate learning skills. Each option offered freshmen the opportunity to interact with faculty, staff and other students in a small group. All of these activities were made possible by private giving and by faculty and professional staff increasing the time they commit to undergraduate students. However, while the University managed to fund the pilot, extending these opportunities to every freshmen, and extending parts of the program to include sophomores, will require additional resources.

B. THE CENTER FOR UNDERGRADUATE EDUCATION

The University has identified three concerns as we strive to enhance the undergraduate experience:

  • the quality of teaching and the learning environment


  • the quality of available advising


  • the quality of activities outside of the formal teaching environment which contribute to intellectual and personal growth.


As part of UCONN 2000, the Wilbur Cross building will be renovated during the next two years to house the Center; this is an accelerated timetable as compared to original plans in recognition of the high priority of this undertaking. As envisioned by the Plan, the Center will house under one roof many student services currently scattered throughout the campus. Again, however, funds are lacking for the programmatic components of the proposal.

C. THE HONORS SCHOLAR PROGRAM

The Honors Scholar Program is designed to provide a competitive academic program for highly motivated students. The two-to-four year program (five in Pharmacy) enriches the academic experience of students in all majors by offering the challenges of more in-depth study and considerable opportunity for independent projects or research. This is a program for students who are both scholastically capable and educationally ambitious, and a critical offering for the University as it seeks to attract such students in a competitive environment. It is UConn's goal to expand this program.

Proposal:

The University requests support for the three undergraduate program initiatives as follows: in 1997-98, $2 million for the Freshman Experience, $1 million for the Center for Undergraduate Education and $0.5 million for the Honors Scholar Program expansion, with these funds to be built into the base budget for 1998-99. No additional funds are requested for 1998-99.

3. MATCHING GRANT PROGRAM

Background:

Partnership bespeaks mutual obligation and commitment in pursuit of shared benefit. Our partnership with Connecticut is not just what UConn expects from the state--it is also what Connecticut can expect from the University. The University has made great strides in its commitment to the aggressive quest for private funds. While it is important to recognize that donor funds are restricted and, hence, not available for use to replace General Fund dollars, it is equally important to recognize the University's obligation to bring in private revenue to support the kind of program enhancements that will provide the margin of excellence Connecticut's students deserve.

UCONN 2000 includes a provision for a state matching grant program to help build the University's endowment. In July of 1996, the Board of Trustees approved guidelines governing the eligibility of private donations for the $20 million state matching funds made available under UCONN 2000. Generally, state matching funds are applied on a dollar-for-dollar basis to all private gifts and pledges of $25,000 to $2,000,000 which either create new endowments or add to existing endowments and are received in calendar years 1996, 1997 and 1998. (The state matching grant will be paid in Fiscal Years 1998, 1999 and 2000; the law sets a maximum of $10 million in any single year.) By targeting investment to endowments, the matching program encourages new and existing donors to support the University's long-term needs and assist the University in funding its highest institutional priorities.

Alumni and other friends have shown great interest and enthusiasm for the endowment matching program made available under UCONN 2000. As of November 30, 1996, 135 documented, match-eligible pledges from private sources had been recorded. In total, these pledges amounted to $14.4 million and, once received and matched by the state, will permanently increase UConn's endowment by $28.8 million. Actual cash receipts from donors against these pledges totaled $4.8 million through February 1996.

Recent commitments to UConn illustrate what an incentive this unique public-private partnership is and how important private support is to the University. Among the many significant gifts to the University are a $1.5 million pledge by Ray Neag to enhance UConn's nationally recognized program for the education of gifted and talented children, a $1 million pledge by the Heilig family to endow a Chair in Molecular Medicine at the UConn Health Center and a pledge of $500,000 by Robert Cizik to establish a Chair in Excellence in Manufacturing and Technology Management, the first endowed Chair in the School of Business Administration.

The goal for private financial support for Fiscal Year 1995-96 was $12 million in receipts (pledges are no longer counted toward the goal). Actual gift receipts for the University totaled $13.34 million. This amount represents a 62% increase over Fiscal Year 1994-95. The goal for private financial support for Fiscal Year 1996-97 is $18 million.

Proposal:

The University proposes that the matching grant program be extended and restructured to provide for a $15 million annual maximum, but with a 2:1 ratio of private to state dollars beginning with the state match in Fiscal Year 2000. The proposal will leverage a private fundraising campaign of approximately $300 million over six years. There is no additional cost beyond "current services" in the coming biennium, as Fiscal Years 1997-98 and 1998-99 are covered by existing provisions of the law.

4. STUDENT FINANCIAL AID

Background:

Concerned about dramatic tuition increases, totaling 128% from 1989 to 1996, the Board of Trustees imposed a University cap on tuition increases that equals the value of inflation. Even with the University's concerted attempts to control costs, the improvement of one significant variable affecting student recruitment and access--financial aid--has moved beyond the capacity of the University to address alone. The University spends 21% of tuition revenue in student aid--an impressive showing, perhaps the highest contribution in the country among public institutions. On a per student basis, UConn's commitment per student has almost doubled since 1990.

But there is a financial aid story that goes beyond issues of cost. In 1990-91, student financial aid was comprised of an almost equal balance of scholarships/grants and loans. In 1994-95, loans exceeded scholarship grants at a 2:1 ratio. There has also been a marked increase in student employment. The most significant reduction has come in the area of state scholarship and loan support.

The University has attempted to make up for the shortfall with an estimated 1996-97 commitment of $15.1 million to student finanical aid and an additional $13 million in tuition waivers (for graduate assistants and--by law--for veterans, seniors and National Guard members, up from $7 million only six years ago). The demand on University funds to support financial aid and waiver costs will only continue to grow. Given declining state support and the limits of reasonable tuition levels, the University cannot alone meet the financial needs of our students. Furthermore, issues of access are a key component of the University's diversity efforts. The state needs to ensure that every qualified Connecticut student, regardless of financial resources, is able to attend the Connecticut public higher education institution of his or her choice--or we as a state will continue to lose more than half of our freshmen to out-of-state colleges.

Proposal:

The University supports the full funding of the CAPCS (Connecticut Aid for Public College Students) and CICSG (Connecticut Independent College Student Grant) grant programs, a proposal which has been discussed and endorsed by the Board of Governors for Higher Education. The University further recommends that the public institutions be provided the latitude to allocate financial aid dollars for need, merit or work, as determined by each constituent unit.

5. TECHNOLOGY

Background:

As the University strives to make its services available to all of Connecticut, this goal must be accomplished in as efficient and focused a manner as possible. UConn cannot reasonably provide every citizen with all it has to offer through present delivery systems; neither should the University pursue or continue offerings that are unnecessarily duplicative of the investment the state has made in other parts of the educational system. A focal point of activity in 1996-97 will be coordinating efforts related to technology, both within the University and with partners statewide.

Enhancing the capacity for communication among the campuses is a high priority. Storrs and the regional campuses have compressed video systems which permit two-way interactive video throughout the University. Each regional campus has a two-year implementation plan for voice/data/video networking funded by UCONN 2000.

Equally important is the University's commitment to work together with the Connecticut State University system, the Community-Technical College system, the Department of Higher Education, the Department of Education and the State Library to build a statewide system that fosters a seamless transition from secondary schools to the world of higher education and that permits cost effective enhancement of existing articulation agreements.

Proposal:

The University supports the Statewide Higher Education Information Technology Network proposed by the Department of Higher Education.

The University requests funding to enable it to connect with the network developed by the Department of Higher Education--specifically, funds will be necessary for training, software and some equipment acquisition. Funding requested for 1997-98 is $1 million, with these funds to be built into the base budget for 1998-99. No additional funds are requested for 1998-99.