1. Higher Education and Public-Private Partnerships
Dr. Ken Kitts
University of North Alabama

2. Some Questions to Consider
What exactly is a public-private partnership (P3)?
Why the emerging interest in P3s in public higher education?
What are the implications of P3s for public universities and the communities they serve?

3. Public-Private Partnerships (P3s)
“…. a contractual arrangement between a public and private sector partner in which resources, risks, responsibilities, and rewards are shared for the operations and maintenance of facilities, and development of infrastructure.” “…. the web of business and financial relationships that link public higher education to key private sector partners.”

4. The University of North Alabama
History back to 1830 and proud alumni legacy
70+ academic programs that include specialized offerings with a regional flair
Entertainment Industry, Hospitality and Design, Kilby Lab School, recent addition of Engineering Technology
Located in culturally rich Shoals region
Attractive and historic campus
Current enrollment of 7,500 and full-time workforce of 750

11. State Funding for Higher Education
Alabama with fourth steepest decline in state funding for higher education since Great Recession of 2008
Higher education funding down 36.2% in Alabama since 2008
Sources: Chronicle of Higher Education, Center on Budget and Policy Priorities

12. UNA’s Total State Appropriation
Fiscal Year
UNA’s Total State Appropriation
FY 07
$30,133,495
FY 08
$33,707,514
FY 09
$27,359,888
FY 10
$25,105,160
FY 11
FY 12
$25,796,342
FY 13
$24,764,488
FY 14
$25,917,319
FY 15
$26,351,275
FY 16
$27,179,033
FY 17
$28,186,242
FY 18
With dollars adjusted for inflation, UNA is receiving approximately $9 million less per year as compared to the pre-recession level of FY 08.

13. Less state funding = higher tuition
Alabama seventh in tuition increases (56.9%) since 2008
Sources: College Board, Center on Budget and Policy Priorities

14. Funding Dilemma in Higher Education
Loss Of State
Funding and
Dependence on
Enrollment
Intense Competition for Students
“Arms Race” of Amenities in Higher Education
Little State Funding for Capital Development
Search for New Funding Sources

15. Range of Higher Ed Engagement of Private Sector Resources
Construction of New Buildings with Private Capital and Revenue Sharing
UNA >>>
Little to No Use of Private Capital or Expertise
Privatization of University Functions
World of the P3s

18. P3s: Finding the Right Balance
Advantages
Access to much-needed capital and expertise
Reduce borrowing and protect credit ratings
Project efficiency and speed
Maintain competitive advantage
Challenges
Some loss of institutional control
Some loss of revenue
Devil in the details – contract negotiation and oversight

19. Message to ACCA Members from Alabama’s Public Universities
Very challenging time for public higher education.
We care. Your local university is deeply invested in your community and interested in its development.
Use us! We have expertise and services that we are eager to share.
We need your help. No better return on investment than higher education.
Thank you for your time and attention!