Moving Forward in Tough Times
Fall Plenary Address
University of Wisconsin–Milwaukee
Chancellor Carlos E. Santiago
Sept. 18, 2009
Download a PDF of the address
Good afternoon.
I am pleased to meet with you again, as we have done each September for six years now.
One of the things I do each summer is to take some time to reflect on what I think are the most pressing issues, both good and bad, that UW-Milwaukee will have to address in the coming year.
I believe the overriding issue we currently face is the effect of the national and international recession on the University, and I want to frame my remarks today in that context.
These are, as we well know, very “tough times.” This reality will be at or near the surface of all our plans and actions this year.
Our national economy has shrunk dramatically in the past two years; the national unemployment rate currently is 9.7%; the State of Wisconsin has a projected 2009-11 biennial budget deficit of more than $5 billion; and at UW-Milwaukee, the State deficit has resulted in a budget rescission for the 2009-2010 fiscal year of $20 million – a cut unprecedented in the history of our university.
This budget reduction has been especially painful because two-thirds of money we have returned to the State has come directly from the pockets our faculty, staff, and students in the form of a repealed 2% pay raise for faculty and staff; mandated unpaid furloughs for all employees except students that will total 16 days over two years – which amounts to a 3% annual pay cut; and a 5.5% tuition increase for resident students.
The UW System’s approach to the budget crisis, which I fully endorsed, was to minimize layoffs, albeit with a reduction in faculty and staff salary and benefits.
We need to be aware, however, that a mid-year budget correction, which could entail layoffs and program reductions, remains a possibility.
As the Milwaukee Journal-Sentinel reported this Monday, State of Wisconsin sales tax receipts this year are less than the previous year for the first time in history.
Although the country may be emerging from the worst of the recession, we are still vulnerable to future budget rescissions. The strong economic growth that would allow for increased State funding seems unlikely in the next few years. The 2009-2011 biennial budget for University of Wisconsin System campuses does not include new Growth Agenda funds for additional faculty and staff positions, and it does not include salary increases for faculty and staff.
The overriding question I have been asking myself as we’ve made these budget cuts, and as we look to a fiscally-lean near future, is this: “How can I, and how can this University, productively respond to this financial crisis?”
The emphasis in this question is on the words “productively respond.”
The temptation in a crisis can be to seek an easy emotional response:
- fixate on who is to blame or who is not suffering as much as oneself or one’s group;
- passionately adopt simplistic, one-dimensional ideas as solutions;
- ridicule or demonize those we deem to be responsible for the crisis or who don’t share our ideas.
Currently, those kinds of rancorous responses are all too evident as we follow highly partisan political debates on the daily news.
I believe, however, that citizens of a university have a special responsibility in our society to respond in a thoughtful, respectful, problem-solving way to this financial crisis. That approach is what we teach our students, and it is what we must embrace in our collective professional life.
Beyond engaging in civil, rational debate, a second essential response in this very challenging time is to hold fast to UWM’s core institutional principles and goals:
- To provide accessible, high-quality university education and to support student success.
- To develop our role as a major research and doctoral education institution.
Political winds always shift, and resources always ebb and flow. But our core principles and goals are constant.
Especially in tough times, we do well to remember why we are here, why we chose this profession, and where we want to go.
To do this, of course, we need to keep our doors open and to keep working. When an institution receives a hard blow, the first order of business in to keep standing; this means not becoming insolvent; it means staying in business.
In an online article in The Daily Beast last week, Rebecca Knight examined a number of colleges and universities that are in deep financial trouble, noting “mergers, takeovers, and, yes, forthcoming bankruptcies and closures.”
It is sobering to see the decline in the academic standing of higher education institutions in states such as California, Florida, and Arizona. It truly is a time to seriously reflect on the future of public higher education in this country.
As a large public institution, UW-Milwaukee has, albeit with considerable pain, absorbed our current financial blow and is still standing.
Still standing, but not standing still.
Against the somber backdrop I have just described, there is considerable good news to report and considerable hope as we move ahead.
Let’s spend a few moments to look at some of our current accomplishments and what we still need to accomplish.
UWM’s enrollment this fall is at 30,275, a 3.5 percent increase from last year and an all-time record. Aided by the weak economy, we had an increased “yield” of students who enrolled from a smaller applicant pool.
That total breaks down into about
- 25,100 undergraduates, an increase of 3 percent, and
- 5,200 graduate students, a 5.5 percent increase.
Among our undergraduate students are 1,500 who have transferred to UWM this semester. That’s an increase in new transfers of 6 percent.
One other fact about those transfer students: 17 percent are underrepresented students of color, compared to 14 percent last year.
Our total student body will include at least 1,000 veterans who are enrolled and receiving military educational benefits.
The UW System’s budget allocation model to the campuses rewards enrollment growth and penalizes enrollment decline. But we must continue to balance the financial needs of the campus with our ability to sustain a quality undergraduate and graduate student experience.
One of our goals has been to increase the proportion of graduate students to reflect our growth as a doctoral, research university. That is happening, with one in six UWM students being graduate students. At first-tier research universities, however, that proportion can approach one in three.
Another goal has been to stabilize the freshman class. That, too, is happening. This fall, the new freshman class is about 4,100 – only a 1 percent increase from last year and similar to recent years. Underrepresented students of color comprise 17% of incoming freshmen, compared to 16.5% last fall.
We are continuing to rapidly develop online capacity and pedagogy. With assistance from the Sloan Foundation grant, all UWM General Education Requirements except foreign language now can be met online:
- 1,200 students are taking courses exclusively online, an increase of 30 percent from last year;
- 4,000 students are taking at least one course online; and
- Another 1,700 students are enrolled in at least one hybrid course that combine in-person and online education.
Continued growth of online instruction also is key to providing access to nontraditional student populations and to help relieve overcrowding on the East Side campus.
While we are on this subject, I want to emphasize that online courses absolutely are not a cheapened form of instruction. Online courses are expensive to offer, but the student outcomes often exceed those of traditional face-to-face instruction.
Student interaction is high, interaction with the instructor is frequent and ongoing, and students often can progress at an individualized pace.
One final note about online education at UWM: This summer we offered our farewell and best wishes for a long and happy retirement to Robert Kaleta.
Bob is an acknowledged national expert in blended learning and has been director of our Learning Technology Center since it was created more than a decade ago. We are sure to miss him, but we will continue to benefit from his leadership in the form of the outstanding team that he assembled.
With the infusion of new State base budget funds in 2007-09 through the UW System Growth Agenda, UWM was able to hire 42 new faculty members this fall. Twenty-eight faculty members are funded through the 2007-09 Growth Initiative and eight are funded through the Wisconsin Institute for Biomedical and Health Technologies.
Hiring was conducted by a number of Schools and Colleges, with a focus on undergraduate research, biomedical research and engineering, environmental health, ergonomics, and green manufacturing.
As I noted earlier, the State did not approve Growth Agenda funds for the 2009-2011. We are grateful for the new funds in the last biennium to hire additional faculty and staff, but we cannot continue to grow without additional faculty. This will be a major challenge in the next few years.
A major accomplishment at UWM is the establishment of two new academic schools, the first new schools here since 1975.
The School of Public Health, led by Acting Dean Stephen Percy, is launching its first PhD program (Environmental and Occupational Health) this fall and has exceeded enrollment goals for this program.
The School of Freshwater Science, led by Acting Dean Mark Harris, plans to initiate new Masters and PhD programs in Freshwater Sciences in 2010.
The lack of new Growth Agenda funds for 2009-2011 will present a special challenge to these new schools as they seek to hire additional faculty and staff to fully realize their missions. Their rate of growth will be determined by the availability of new funding either from the State or from extramural sources.
Let me emphasize that these schools will not be financially supported via a campus reallocation, and thus, they will grow only at rates we can sustain with new resources.
I noted the new doctoral program in Public Health. We can take great pride that with this new PhD program, UWM has now added nine new doctoral programs in the past five years for a total of 29. We have not established that many new PhD programs since the period of 1966 to 1971. This is a testament to the quality and critical mass of faculty across many disciplines and is in keeping with our goal to be a major research and graduate education institution.
In addition to developing graduate education, we have devoted a great deal of time and resources in the past few years to improving undergraduate education. The Task Force on General Education especially has been active in evaluating student learning and success, essential learning outcomes, and general education requirements.
The Task Force will be intensifying its consultation with campus constituencies this year with the goal of proposing changes to the campus undergraduate general education requirements by the end of 2009-2010.
UWM has seen a significant increase in research expenditures in the past five years. UWM logged $53.6 million in research expenditures for the 2008-2009 fiscal year, compared to $28.3 million for 2003-2004 fiscal year – an increase of almost 90 percent in five years.
Our thanks for this go to all the faculty and staff who have increased their applications and success rate in obtaining grants and contracts. Thanks also are due to the UWM Research Foundation and the Office of Technology Transfer, which have effected several important research partnerships.
The idea of public-private partnerships, which was encouraged through the Milwaukee Idea, and which my administration also has embraced, continue to yield results.
We have two important new partnerships this fall:
- The first is UWM in partnership with Marquette University, MSOE, and several companies and foundations. We have established the Southeastern Wisconsin Energy Technology Research Center. The Center pools regional resources to develop high-potential research in the energy field.
- The second is the Peck School of the Arts has established a partnership with the Milwaukee Chamber Theater to mount collaborative theater productions. This October, 14 UWM faculty, staff, alumni, and students will be actors, designers, and production staff in the play “Picnic” in the Cabot Theater at the Broadway Theater Center.
Shifting from our academic successes to UWM’s space and facilities, I’m very pleased that construction of the Cambridge Commons residence hall began this May and is scheduled for completion in August 2010. The new facility, across the Milwaukee River from Riverview residence hall, will house more than 700 students. With the completion of Cambridge Commons, UWM will have 3,900 residence spaces, which brings us closer to our goal of guaranteeing University housing to all freshman students who apply.
Several notable remodeling and renovation projects will be completed this year:
- The Daniel M. Soref Learning Commons in the Golda Meir Library has opened this fall;
- Space in the University Services building is being refurbished to accommodate research by the College of Engineering and Applied Science;
- WUWM Radio is moving to the seventh floor of the Chase Bank building at Wisconsin Avenue and Water Street; and
- A new stream to divert rainwater from storm sewers is being completed next to the Norris Health Center.
Although our State funded operating budget was reduced this biennium, UWM successfully made our case to the State for $240 million in capital bonding authority over the next six years. One-hundred and twenty million will be authorized by the State, to be matched by UWM with $60 million in fund raising and $60 million from program revenue. Significantly, the State has authorized flexibility in spending for these future projects.
The UWM Master Plan, a draft of which will be made available to campus community for comment at the end of September, will help guide our decisions for long-term space and building growth for the next 20 years.
In the near-term, the University must make decisions that will commit capital funds for several projects:
- An integrated research building on the East Side campus;
- New or renovated facility for the School of Freshwater Sciences;
- The Columbia-St. Mary’s property on Maryland Avenue; and
- Expansion projects such as creation of the Innovation Park on the County Grounds in Wauwatosa and the School of Public Health, potentially in downtown Milwaukee.
These are projects that will not be at odds with the long term Master Plan and must be pursued expeditiously while the funding authority is in hand.
I would like to make an additional comment about the land for a new or renovated facility for the School of Freshwater Sciences. I greatly appreciate the input I received from many faculty and staff members at our Great Lakes WATER Institute and across campus on the subject of whether to go forward on the former Pieces of Eight site. We decided not to pursue that opportunity, but we will find the right place for this new facility because our city, region and state need this initiative to go forward.
And a word or two about our Innovation Park in Wauwatosa:
The planned purchase of the county land is moving forward. We will complete the transaction in the Spring of 2010, as scheduled. Creating a world-class research park and academic facility at the Wauwatosa location is another development that is critical to the future of both our university and the region.
I would like to say a few words about campus health and safety issues. You probably have noted on your UWM e-mail, the UWM Web site, or postings around campus extensive information about H1N1 flu preparations and student safety in neighborhoods. In recent weeks, this information has been combined on one new web site, campussafety.uwm.edu, to make the information easier to find. These are matters that affect all of us, and I urge you to inform yourselves about them.
I am thankful to you - our faculty, staff, and students - for being the prime movers of all these aforementioned issues where we are moving forward, all these current accomplishments on which we must continue to build.
But as I noted at the outset of this address, the financial crisis has left us with important issues where we have not made progress, where we currently are standing still.
Most pressing among these is the need for fair and competitive faculty and staff compensation and for predictable student tuition rates. There is severe salary compression for many faculty and staff, while at the same time we must continue to offer highly competitive entry compensation packages.
Students are being asked to shoulder an increasing portion of their university costs as State funding continues to shrink. We must continue to advocate for tuition rates that are consistent with comparable public universities; we must maintain as a high priority garnering financial support to increase scholarships and other forms of student financial aid; and we must offer students high educational value for their tuition dollar.
So, in response to my initial question -- “How can the University productively respond to the current financial crisis?” -- I believe that we must do at least the following:
We must steadfastly adhere to our core institutional goals:
- Serve students and enable their success
- Increase scholarship and research, especially funded research, and grow graduate education
- Stimulate regional economic and cultural life
- Promote free inquiry and respectful dialogue
Our institution’s position in the broader statewide milieu has been helped by our consistent message about the role, the potential, and the direction of the University of Wisconsin-Milwaukee. We have not deviated from our institutional message over the last five years, and this strategy has served us well. I assure you that we will continue to promote our mission despite the many unpredictable circumstances that arise beyond our control.
We must deliver results.
Because resources are scarce, the margin for error in our decisions is small. We must make well-thought-out plans and investments with the resources we do have because we will be evaluated by our achievements. When new investment dollars are available, we need to demonstrate that we have been worthy stewards and forward-looking investors of limited funds. Thomas Friedman refers to this as “legitimacy by achievement.” As we seek improved processes and solutions, we must keep our objectives firmly in mind and have a clear understanding of how to measure our progress.
We must not fear to innovate.
Critical times call us to think about policies and practices that in normal times would be thought “radical,” policies and practices such as:
- Differential tuition to fund faculty positions;
- Changing our budget incentive system by funding for outcomes (e.g., for graduates, not just for students in the front door); and
- Using new communication technology to shorten the time to degree.
While we need to act reasonably, we should not fear to think radically.
We must maintain transparency in campus communication.
In the course of last academic year’s State budget discussions with the UW System Administration, in the Board of Regents, in the Joint Finance Committee, in the Higher Education Committee, and ultimately the State Legislature, I sought to keep our campus abreast of latest developments through regular informational bulletins and e-mails.
We will continue this year to keep the campus community informed of Statewide and national developments.
My administration also will continue to work with the established governance bodies of this institution to seek solutions, garner advice, and develop positive approaches to confront our challenges. I appreciate the dedication of all of you who have provided input through your governance organizations.
We must continue to invest.
If we are to do more than stand still, we must find funding to support faculty and staff recruitment, retention, and compensation; to obtain new space and facilities; and to develop pedagogy and academic programs that meet our students’ needs for their future.
Our emphasis on growing funded research not only is part of our institutional mission but also will serve as an alternate revenue stream to support our faculty, staff, and students.
In conclusion, as I look at peer institutions across this country, it is heart wrenching to see double-digit rates of increase in tuition and fees, outright reductions in the numbers of students served, closure of academic programs and student support offices, dramatic cutbacks at university presses, and layoffs of tenured faculty and academic staff.
While University of Wisconsin institutions have not been spared the consequences of this economic recession, we have fared better than counterparts in many other states.
And despite this environment, we at UWM have accomplished much. I attribute this largely to the perseverance, professionalism, and resilience of you - our faculty and staff- and to your commitment to our students in their academic careers and beyond. Because of you, we will move forward no matter the adversity we face. Again, thank you.
For myself, I pledge that as we work through these tough times, I will listen to you, will be well informed, and will stay focused on our missions.
Then, I will breathe deeply and step forward.