Rufus Glasper, Chancellor Maricopa County Community College District Tempe, AZ Stephen M. Curtis, President Community College of Philadelphia Philadelphia, PA 92 nd AACC Annual Convention Orlando, FL April 20-24, 2012

 Delta Project: Students at private universities pay, on average, 56% of educational costs  At universities in CO, MT, NH, OR, VT, students pay more than 70% of educational costs The Chronicle of Higher Education May 1, 2009

 Letter to the Editor: “If the typical state university were founded de novo next week, would it have its present shape?” The Chronicle of Higher Education August 28, 2011

 2011: Penn State recommended for 50% cut  2011: Penn State received 20% cut  2012: Penn State recommended for 30% cut  2012: Penn State will receive a ??% cut The Philadelphia Inquirer February 8, 2012

 May 2010: University of Oregon proposed, in lieu of annual appropriations, contributions toward a $1.6 billion endowment; the university would live off the interest The Chronicle of Higher Education March 15, 2012

 Elements of privatization ◦ Greater autonomy from government ◦ Raising tuition ◦ Serving the student as client ◦ Embracing marketing and enrollment management ◦ Expanded private fundraising (to reduce tuition dependency) ◦ Contracting out auxiliary enterprises D. Bruce Johnstone

Privatization in and of Higher Education in the U.S. Table 1 - Privatization in Higher Education as Direction or Tendency on Multiple Dimensions Dimensions High "Publicness" High “Privateness” Continua of Privatization [Greater Privatization-->] 1. Mission or Purpose Serves a clear "public" mission as determined by the faculty or the state. Mission is avowedly both public and private, but as defined by faculty. Mission is mainly to respond to student's private interests, mainly vocational. Mission serves private interests of students, clients, and owners. 2. Ownership Publicly owned: can be altered or even closed by state. Public corporation or constitutional entity. Private non-profit: clear public accountability. Private for-profit. 3. Source of Revenue All taxpayer, or public, revenue. Mainly public, but some tuition, or "cost sharing." Mainly private, but public assistance to needy students. All private revenue: mainly tuition dependent. 4. Control by Government High state control, as in agency or ministry. Subject to controls, but less than other state agencies. High degree of autonomy; control limited to oversight. Controls limited to those over any other businesses. 5. Norms of Management Academic norms; shared governance, anti-authoritarianism. Academic norms, but acceptance of need for effective management. Limited homage to academic norms; high management control. Operated like a business; norms from management.

 Dependency on Tuition and Fees

Total Operating Budget Expense (in thousands) Percent Received from State Percent Received from City Percent Received from Students $18, %34.7%29.7% $39, %31.1%30.4% $65, %25.0%36.5% $102, %19.2%52.5% $120, %15.1%57.6%

 No state approval of new degrees/curriculum is required  No city or state approval of tuition increases is required  No city or state approval of annual budget is required  Creation of increased scholarship opportunities to offset impact or rising tuition and fees  Undertaking capital projects without state support Characteristics (continued)

 Expansion of private fundraising  Outsourcing: ◦ Bookstore ◦ Campus Dining ◦ Child Development Center ◦ Overnight Cleaning ◦ Weekend Cleaning ◦ Landscaping Maintenance ◦ Snow Removal ◦ Majority of Security Personnel Characteristics (continued)

 Operate Entrepreneurial Innovation Incubation Center  Operate Corporate College  Secure contracts internationally  Rent office space, lease land  Create separate 501(c)3 organization  Develop public/private partnerships

 “To be sure, state education bureaucrats and legislators call it not ‘privatizing’ but ‘restructuring.’” Washington Post December 22, 2011