1. Overview of Policy Priorities and the 2009 Legislative Agenda for Higher Education in West Virginia Presentation to the Faculty Senate of West Virginia University November 10, 2008

2. Charting the Future establishes a public agenda for how higher education can best serve the needs of West Virginia’s citizens. It is built upon civic, corporate and community partnerships and articulates opportunities to develop a workforce that is competitive in the knowledge economy. Areas of emphasis include:  Access: How can we make college accessible for all West Virginians?  Cost and Affordability: How can we protect and promote affordability for all West Virginians?  Learning and Accountability: How can we ensure that more students successfully navigate the educational pipeline?  Innovation: How can we harness the resources of our institutions to better serve the needs of the citizens of West Virginia?  Economic Growth: How can we prepare more West Virginians for the knowledge economy and create job opportunities for our citizens? Charting the Future: The 2007-12 Master Plan West Virginia Higher Education Policy Commission

3. For the 2010 fiscal year (FY10), the Commission requests $80,226,925 for strategic investments in system-wide higher education initiatives aimed at supporting and enhancing the public policy agenda outlined in WV Code §18B-1A-1a. Funding priorities for FY10 are as follows:  Institution Operating Budgets – $12,018,419  Faculty and Staff Salaries - $31,246,718  Capital Funding – $25,000,000  Student Financial Aid - $4,999,420  Academic Research – $4,000,000  Other issues – $2,962,368 FY 2009-10 Budget Priorities West Virginia Higher Education Policy Commission

4. Budget Request: Institutional Operating Budgets West Virginia Higher Education Policy Commission Request: $12,018,419 in new funds for institutional operating budgets to cover inflation and fixed costs increases. The proposal is equivalent to the change in the Higher Education Price Index (HEPI) from FY 2008 to FY 2009 (3.6%). Funding would be distributed in an across the board manner.

5. Headcount Enrollment by Institution West Virginia Higher Education Policy Commission

6. Total Tuition and Fees West Virginia Higher Education Policy Commission

7. Median Tuition & Fees Source: SREB Data Exchange and College Board 2007 West Virginia Higher Education Policy Commission

8. Peer Comparisons Source: The Chronicle of Higher Education West Virginia Higher Education Policy Commission

9. The Shifting Dependency on Tuition Revenues Source: SREB Factbook 2007 West Virginia Higher Education Policy Commission

10. Total Support per FTE (Public Four-Year) Source: SREB Factbook 2007 West Virginia Higher Education Policy Commission

11. Request: $31,246,718 to support a three part proposal aimed at enhancing salary competitiveness. Part One: To keep up with inflation, $22,800,000 in additional funding will be required in FY 2010 from all revenue sources. Part Two: $5,200,000 to close national and regional salary gaps by one percent. Part Three: $3,246,718 to address inequities in the classified staff salary schedule. Funding faculty and staff supported through all accounts will minimize anticipated tuition and fee increases. The salary enhancement calculation is based on spring 2008 data and includes employees funded from all accounts. Budget Request: Faculty and Staff Salaries West Virginia Higher Education Policy Commission

12. West Virginia public four-year college and faculty salaries rank 14th out of 16 among the SREB states (West Virginia average of $58,850 vs. SREB average of $68,583). It would take $55,487,833 to bring WV salaries to the SREB average. The College and University Professional Association for Human Resources (CUPA-HR) reported that average salaries for higher education faculty nationally increased by 3.8 percent, executive compensation increased by 4.0 percent, and mid-level administrative compensation increased by 3.8 percent in 2007-08. Faculty and Staff Salaries West Virginia Higher Education Policy Commission

13. Changes in Full-Time Faculty Salaries at Public Four-Year Institutions Source: SREB Factbook 2007 West Virginia Higher Education Policy Commission

14. Average Salaries of Full-Time Faculty Public Four-Year Institutions (2006-07) Source: SREB Data Exchange 2007 West Virginia Higher Education Policy Commission

15. Budget Request: Capital Request: $25,000,000 in funds to support deferred maintenance needs, as well as renewed request for system-wide bond funding. Deferred maintenance/code compliance projects ($10,000,000): One-time funding request that builds upon the investment made by the Governor’s office and the Legislature during the 2008 session.  Funding for deferred maintenance and code compliance issues would be used to match institution funding on a 50/50 basis. Funding would allow institutions to repair and maintain facilities that have longstanding capital needs such as sprinkler systems, fire alarms, smoke detectors, ADA access to buildings, re-roofing, and HVAC upgrades.  Funding would support projects across both two and four-year institutions, with the funding split in the range of 80 percent for Commission institutions and 20 percent for Council institutions.  Commission staff is developing a list of high priority capital projects addressing E&G deferred maintenance and code compliance issues and should have this process completed later this fall. West Virginia Higher Education Policy Commission

16. Budget Request: Capital Capital Bond Issue ($15,000,000) for new capital construction  In most states, public higher education periodically receives bond revenue funded by state appropriations for institutional capital projects.  Prior to 2004, the State of West Virginia had never funded a bond issue specifically for public higher education. Instead, institutions funded capital projects through student generated capital fees. Currently, many students pay significant capital fees to cover old bond indebtedness.  The Commission seeks support to redirect the $10 million in regular lottery revenue that is currently dedicated to the EAST bonds, which will expire in FY 2010, plus an additional $5 million appropriation to support a new higher education bond issue.  Annual revenue of $15 million should support a bond issue of approximately $230 to $240 million for thirty-year bonds.  Commission staff is developing a proposed list of capital projects for funding and will bring that list to the Commission for its approval during the November meeting of the board. West Virginia Higher Education Policy Commission

17. Request: $4,999,420 in new funds for the state’s complement of financial aid programs. Higher Education Grant Program ($1,693,200): Consistent with House Bill No. 4049 (2006), the Commission proposes a two percent increase in funding for FY 2010 ($693,200). Additionally, we propose the continuation of $1,000,000 that was provided via legislative special session. PROMISE Scholarship Program ($2,306,220): Consistent with House Bill No. 4049, (2006), the Commission proposes a two percent increase in funding for the PROMISE Scholarship Program for FY 2010 ($861,220). Additionally, we request the continuation of the $1,445,000 that was provided during the recent special session. This funding will maintain program solvency through FY 2010 and allow the PROMISE Scholarship Ad-Hoc Advisory Committee to complete their gubernatorial charge. HEAPS Grant Program ($1,000,000): The Commission proposes the continuation of funding provided during a recent special legislative session. The funds will be used to support growing demand for the program and to assist in bringing more adults into post-secondary education. Budget Request: Financial Aid West Virginia Higher Education Policy Commission

18. Budget Request: Research Request: $4,000,000 funding to enhance and expand capacity at West Virginia’s colleges and universities. This request builds upon the establishment of the “Bucks for Brains” West Virginia Research Trust Fund and demonstrates growing support for the state’s science and technology strategic plan, Vision 2015, which calls for an overall 20 percent increase in science, technology, engineering and mathematics (STEM) faculty positions. The Commission proposes continued investment to support eminent research faculty through the expansion of racetrack video lottery funds targeted for the Research Challenge Fund (RCF). Presently, this fund receives.5 percent of all moneys generated from racetrack video lottery proceeds. The Commission proposes the expansion of this percentage to one percent which will generate approximately $4 million in additional revenues to support research efforts across the system. West Virginia Higher Education Policy Commission

19. Budget Request: Research Research in the STEM fields, coupled with improved graduate education opportunities, are the source of increased economic diversification, new business formation, and an increasingly skilled workforce. The largest awards sponsored through the RCF are the Research Challenge Grants. The return on the first $8.4 million investment in these awards includes: –More than $20 million in external funding –5 startup companies with five-year projected revenues of $124 million –5 patents and 10 patent applications –2 university research centers with industry partners The RCF also supports grants for scientific equipment, curriculum and classroom instruction, and the Governor’s Schools for Math and Science; and serves as the match for the National Science Foundation’s $9 million research infrastructure improvement award to the state. West Virginia Higher Education Policy Commission

20. Budget Request: Others Beckley Center ($350,000): Funds will support on-going operations for the Center, a one-stop educational mall for community and technical college programs through graduate level courses. College Awareness/Outreach/Recruitment Campaign ($2,000,000): One-time joint Commission and Council request to support efforts to enhance college access and completion. The effort will be multi-faceted and includes: –General marketing modeled after the successful “Learn to Earn” and “College Pays” campaigns targeted at making people aware of college opportunities. –Targeted marketing of former students who have completed 30 or more credit hours, but have not earned a degree, by community and technical colleges, with a special emphasis placed on the Board of Governors’ Associate of Applied Science degree; and of former students who have completed 90 or more credit hours, but no degree, with emphasis placed on the Board of Regents Bachelor’s degree. –Targeted marketing of students for programs that are strongly aligned with state economic development goals, but for which enrollment have not met expectations (e.g., Pierpont Community and Technical College’s aviation program). –Targeted support for dual enrollment, advanced placement and financial aid education for high school juniors and seniors in GEAR UP counties. West Virginia Higher Education Policy Commission

21. Undergraduate Headcount Age 25 or Older Adult learners comprise @ 43.7% of the two-year and 14.2% of the four- year undergraduate enrollment. Enrollment has increased 9.7% over fall 2002, and 12.6% over fall 1997 West Virginia Higher Education Policy Commission

22. A Focus on Non-Traditional Students More than 173,000 West Virginians have some college but no degree More than 127,000 West Virginians have some high school but no degree A post- secondary institution can be found in 9 of the top 20 counties West Virginia Higher Education Policy Commission

23. High School Graduate Projections: 2000-2014 According to SREB, the number of graduates produced by public and private high schools in WV will decrease by 2,836 students from 2000 to 2014. Assuming factors remain constant, this will yield @ 1,500 fewer freshman, which is comparable to the combined in-state freshman classes at Marshall University and Shepherd University. Source: SREB Factbook 2005-06 West Virginia Higher Education Policy Commission

24. Cracks in the Pipeline Source: National Center for Higher Education Management Systems (2004) West Virginia Higher Education Policy Commission

25. Budget Request: Others Graduation Initiative ($500,000): One-time request to support the development of grants to support institutional efforts to improve student persistence and completion rates and increases the overall number of graduates.. SREB Tuition Contract Program ($112,368): The SREB Tuition Contract Program allows West Virginia students who want to pursue degrees in veterinary medicine, optometry and podiatry, which are not offered at any West Virginia higher education institution, to pay discounted tuition at certain schools in other states that offer these courses.  As a result of program cost increases, West Virginia may have a shortfall of as much as $112,368 in FY 2010 if increased funding is not provided and would subsequently have to restrict student participation below current levels. West Virginia Higher Education Policy Commission

26. Policy Propositions Changing expectations of college preparation and associated tensions across systems related to preparation Mounting accountability pressures, 21 st century skills, and the challenge of general education Shifting sands of access Potential need to restructure state financial aid programs in lieu of ever increasing college costs and student debt Appreciation of the complexity of the modern university and associated governance issues Critical significance of a college degree in the global economy West Virginia Higher Education Policy Commission

27. Members David R. Tyson Chairman David K. Hendrickson, Vice Chairman John Estep, Secretary Kathy Eddy Kay H. Goodwin Cindy Largent-Hill J. Thomas Jones Dr. Steven L. Paine Nelson B. Robinson, Jr. West Virginia Higher Education Policy Commission 1018 Kanawha Blvd E Ste 700 Charleston WV 25301-2800 voice 304.558.2101 fax 304.558.5719