Association of Governing Boards of Universities and Colleges. All Rights Reserved. 1 Greater Autonomy: 2010 State Actions Higher Education Government Relations Conference Austin, Texas December 2, 2010 Cristin Toutsi Assistant for Policy Analysis Ingram Center for Public Trusteeship and Governance

Association of Governing Boards of Universities and Colleges. All Rights Reserved. Shrinking state appropriations Deteriorating budget conditions = efforts to grant more freedoms to public institutions and university systems. Higher education sees deregulation and autonomy as the means to achieve efficiency, and many state leaders see stronger state oversight, cost control, and centralization as the means. We might categorize this as a tension between market forces and central planning. Are states and public higher education “striking a new bargain?” (Breneman, 2004). 2

Association of Governing Boards of Universities and Colleges. All Rights Reserved. What are these “new bargains?” Foremost are proposals to grant greater flexibility for tuition setting. Separate from, or in combination with tuition flexibility, some states are granting greater freedom regarding operational controls: budget carry-over authority from year to year, employee requirements, collective bargaining agreements, procurement, purchasing, and public-private partnerships. System initiatives on autonomy and flexibility are percolating in some states. 3

Association of Governing Boards of Universities and Colleges. All Rights Reserved. Some examples (excluding NY, NJ, and KS) Louisiana: HB 1171, Louisiana Granting Resources and Autonomy for Diplomas Act (LA GRAD ACT). South Carolina: HB 2265, The Higher Education Efficiency and Administrative Policies Act of Idaho: HB 688, Relates to procuring and purchasing property by certain state institutions of higher education. Nevada: Gubernatorial proposals on system autonomy. Governor Jim Gibbons and Governor-elect Brian Sandoval Oregon: “Considerations for Change.” Governance proposal unanimously approved by the Oregon State Board of Higher Education 4

Association of Governing Boards of Universities and Colleges. All Rights Reserved. What are the terms of these new relationships? “Accountability for results” Performance measures. Including but not limited to: Increases in enrollment, student scholarships for need-based aid, and degree completion. Efficiency reports: cost-saving evaluations Pilot-programs (select group of institutions) Need effective boards and governance structures in place to assure accountability and sound financial management. As the nation strives to increase degree attainment, state investments in higher education are critical. 5

Association of Governing Boards of Universities and Colleges. All Rights Reserved. References and Resources Breneman, David. Are the States and Public Higher Education Striking a New Bargain? Association of Governing Boards of Universities and Colleges. Public Policy Brief. June Hurley, Daniel, Doreen Murner, and Alene Russell. Public College and University Procurement. American Association of State Colleges and Universities, National Association of Educational Procurement McBain, Lesley. Tuition-Setting Authority and Deregulation at State Colleges and Universities. American Association of State Colleges and Universities. May Novak, Richard, and Cristin Toutsi. State Governance Action Reports. Association of Governing Boards of Universities and Colleges. March 2010 and November Toutsi, Cristin Public Institution and University System Financial Conditions Survey. Association of Governing Boards of Universities and Colleges. October