2008-09 Operating Budget Request The State University of New York “We must begin an effort to make our higher education system the best in America.” Governor Eliot Spitzer, Inaugural Address, January 2, 2007 The State University of New York (SUNY) is the nation’s largest comprehensive public higher education system. Its statutory mission is to provide the people of New York with the broadest possible access to the highest quality higher education. SUNY currently provides its students with an excellent education based upon a strong commitment to academic quality and efficiency. For 2008-09, the University seeks the complete and consistent financial support necessary for SUNY to move to the next level: to accept Governor Spitzer’s challenge and become the nation’s best public higher education system. I. SUNY Today – A commitment to excellence and efficiency SUNY currently plays a major role both in American higher education and in New York State. Faculty members at SUNY’s sixty-four diverse institutions have achieved well- deserved recognition in teaching, research and public service. The SUNY system also has a major impact on the vitality of New York State; in many regions, SUNY is the largest employer and a major economic and cultural force in the community. SUNY’s commitment to excellence is clear. System enrollment is at a record high of 426,891 students in 7,669 programs of study. More than 81,900 minority students are now enrolled at SUNY, accounting for almost 20 percent of the student population. The academic preparation of SUNY students continues to improve each year, along with graduation and retention rates that are above the national averages for comparable public institutions. Last year, SUNY awarded more than 80,000 degrees and certificates, the highest number of awards in system history. SUNY also upholds a strong commitment to efficiency. Over the past 15 years, State funding for SUNY declined as a percentage of its overall budget, which made it difficult for SUNY to uphold its statutory mission. In addition, State funding for the University often fluctuated from year to year, which made long term planning problematic. This directly contributed to the decline in SUNY full-time faculty members, as reliance on less-costly adjunct faculty became a budgetary necessity. The University, in response, also made a concerted effort to increase its share of non-State support, increasing research and other sponsored program activity, self-supported funds (campus-supported programs), and expenditures from campus foundations. The SUNY hospitals also increased their patient service revenue (Table I). Table I The Changing Composition of SUNY’s All Funds Budget, 1992-93 – 2007-08 (in millions) 1992-93 2007-08 % change All Funds Budget Total 4,455.5 10,080.5 126.2% Total State Support $ 1,785.1 3,484.0 95.2% State Operated Campuses 896.8 1,451.1 61.8% Fringe Benefits 305.6 980.3 220.8% Debt Service 212.2 397.0 87.1% Comm. Colleges State Share 280.9 473.7 68.6% Other 89.6 181.9 103.0% Total Non-State Support $ 2,670.4 6,596.5 147.0% Tuition 740.2 1,476.7 99.5% Self-Supporting Funds 319.0 821.3 157.5% Hospitals/LI Vet Home 547.9 1,691.4 208.7% Sponsored Activity 328.1 798.7 143.4% Comm. College Sponsor Share 268.2 448.4 67.2% Other Campus Activity 467.0 1,360.0 191.2% Source: SUNY Budget Office SUNY’s commitment to efficiency is further illustrated by Table II. Data presented in Table II shows that State funding per student FTE at the SUNY State-Operated campuses (adjusted for inflation) declined over the past decade, while over the same period SUNY provided access to an additional 20,000 students at these campuses – and maintained the high standards of excellence described above. Table II State Support per FTE Planned FTE Enrollment Source: SUNY Budget Office Increased State support over the last three years, combined with increases in non-State support, has allowed SUNY to begin to address the negative impact of the unpredictable and often inadequate State funding described above. Yet SUNY still faces challenges, such as an over-reliance on part-time faculty, as it seeks to improve the quality of teaching and research. Data presented in Table III shows that SUNY has a much greater reliance on part-time faculty, across all sectors, than its national peers. Table III SUNY Student FTE to Full-Time Faculty Ratios and Percentage of Full-Time Faculty by Sector Compared to National Peers Student FTE/Full-time Faculty % Full-time Faculty Sectors National Peers SUNY National Peers SUNY Doctoral 12.7:1 13.9:1 78.4% 67.9% Comprehensive 20.9:1 22.7:1 65.0% 49.8% Technology 21.5:1 22.5:1 59.5% 55.2% Community College 31.5:1 33.7:1 35.2% 33.1% Source: IPEDS and SUNY Office of Institutional Research Files using Fall 2005 and 2006 data. Note: Analysis excludes contract colleges at Alfred and Cornell. II. Funding the State-Operated Campuses Budget Request: The SUNY Compact The SUNY Compact – a new partnership between SUNY, the State, SUNY students, and major stakehold-ers – will provide the complete and predictable financial support necessary for SUNY to become the nation’s best public higher education system. Under The Compact, the State will provide full support for the University’s mandatory costs. The University, in turn, will finance its educational initiatives from savings drawn from more efficient operations, small and predictable tuition increases, increases in campus supported programs and philanthropy and additional State support for 30 percent of the cost of these initiatives (Table IV). As we have seen in Table I, SUNY has already fulfilled much of its responsibilities under the Compact by increasing its share of non- State support. In addition, SUNY has begun a major new innovation and efficiency program that will benchmark successes and identify new areas of opportunity such as academic excellence, risk management and health care. Once the State commits to fully funding SUNY’s base costs, SUNY can then devote additional revenues from efficiencies, tuition and philanthropy to improving the quality of a SUNY education. Students will experience modest, predictable tuition increases in exchange for greater access, smaller classes, better services, and enhanced research facilities. Most important, incoming students will avoid the large and unexpected tuition increases that they have experienced in previous years. Table IV Funding the 2008-09 SUNY State-Operated Campuses Budget Request (in thousands of dollars) III. SUNY Tomorrow – the nation’s best public higher education system The 2008-09 SUNY Budget Request Overview The State University of New York requests an overall State tax support increase of $287.7 million or 13.7 percent over the State support provided in 2007-08 (Table V). For the state operated campuses, this request includes $64.8 million to support mandatory costs increases and $35.0 million for priority initiatives. The remainder of the request is in support of the statutory colleges, community colleges, general state charges, and the SUNY hospitals. In the next few pages, the University presents its detailed budget requests for these areas. Table V Budget Request Summary (in thousands of dollars) 2007-08 2008-09 2008-09 Enacted Requested State Requested Total Budget State Tax Support State Tax Support Tax Support Increase State Operated Campuses* $1,172,254 $99,791 $1,272,045 Statutory Colleges 172,279 38,202 210,481 Community Colleges 444,284 93,042 537,326 SUNY Specific Fringe Benefits 158,300 16,807 175,107 Hospital Support 146,300 39,900 186,200 TOTAL $2,093,417 $287,742 $2,381,159 *Includes university-wide programs and System Administration IV. State Operated Campuses: Mandatory Costs and Initiatives Mandatory Costs $64.8M SUNY’s mandatory base costs include the Empire Innovation Program, collective bargaining, non-personal service inflation, and enrollment growth (Table VI). It is expected that additional state support will be provided to the University once ongoing contract negotiations have been concluded. Academic Quality Initiatives $116.7M To foster and expand the cultural, economic, and educational environment required for an innovation-driven future, New York must invest in access, research, scholarly diversity and infrastructure. SUNY requests funding for a specific set of initiatives, described below, which together will provide the citizens of New York access to a higher quality SUNY education (Table VI). More detailed descriptions for each of these initiatives are provided in the Appendix. Enhance Educational Excellence $63.0M As discussed above, the most critical issue in providing the intellectual infrastructure needed to advance SUNY is the addition of full-time faculty. Data presented in Table III shows that SUNY has a much greater reliance on part-time faculty, across all sectors, than its national peers. Faculty provide the basic framework on which all other initiatives of access and excellence are built. SUNY, therefore, requests funding for 1,000 additional full-time faculty lines over the next three years; this will replenish the ranks of full-time faculty and align SUNY’s student-faculty ratios with national peers. In addition to faculty, educating New York’s citizens to participate in an interrelated global society requires understanding the ever more complex educational environment, the new and expanding tools to deliver education, and the new ways in which knowledge is stored and delivered to students, faculty, business leaders, and others. Faculty expertise must become more global, and must reflect the rapid advances ongoing in the educational environment. Initiatives devoted to expanding and diversifying the faculty, strengthening teacher education, improving SUNY’s libraries and publications, and improving SUNY’s institutional research capabilities provides the means to enhance the quality of education and the efficiency with which it is delivered. Increase Access and Ensure Diversity $9.9M It is the mission of the University to provide New Yorkers with access to higher education of the highest quality. The initiatives that will allow SUNY to reach this goal include specific efforts to diversify the faculty and student population, and a focus on SUNY’s student recruitment in the STEM fields. Graduate education is also highlighted as critical to increasing innovation and excellence. These initiatives include funding for science and math scholarships, increased stipends and waivers for grad students, and increased funding for the Educational Opportunity Program (EOP) and SUNY’s newly created Office of Diversity and Educational Equity. Expand SUNY’s Leading-Edge Research and Innovation Environment to Drive Economic Development $31.7M Research from SUNY has triggered monumental advances in medical diagnostics and business utilization of technology, among many other areas. These advances draw technology industries into the state and its economic regions by nucleating centers of intellectual capital and infrastructure and by forming partnerships with business, local and state government, and other research entities. Competitiveness is expertise and infrastructure. With sufficient funding to provide both, growth in research capacity will evolve rapidly, allowing SUNY to increase its share of sponsored research funding and generate increased revenue for the University and economic development for the State. The highly successful Empire Innovation Program is to be expanded, as is the ability to invest in infrastructure where the critical mass of expertise, partnerships, and strategic need come together to provide unique opportunity for growth. Aligned with this strategy is a request for a modest increase in funding for the Educational Opportunity Centers (EOC) program to support workforce development. Keep Campuses Safe and Secure $9.6M There is nothing more critical to the State University than the safety of its students, faculty and staff. The Chancellor’s Task Force on Critical Incident Management has provided key recommendations to improve the readiness of our campuses to respond to emergency incidents. The Chancellor’s task force recommended assessing and taking action in the following areas: • Risk assessment and mental health issues • Emergency response • Communications technology • Mental health capacity • University police tactical equipment • Mass and individual alert notification systems • Police/public safety staff and information technology staff training and support Enhance Accountability $2.5M SUNY requests funding for System Administration to provide enhanced services – including legal, accounting and human resources – to the individual SUNY campuses. Under the provisions of the self-funded Greening SUNY program, the University will assume a national leadership role in energy sustainability, education, technology, economics, and public policy through the integration of practice, teaching, and research. SUNY will procure energy and fuel at competitive prices while managing price risk in accordance with a prudent, clearly defined, and well-documented University Risk Management Policy. Table VI 2008-09 SUNY Budget Request: Mandatory Needs and Initiatives State Operated Campuses (in thousands of dollars) 2007-08 Enacted Budget State Tax Dollar Support (Base) $1,172,254 Mandatory Needs Salary Increments/OTPS Inflation 23,703 Enrollment 29,078 Empire Innovation 12,000 Total Mandatory Needs $64,781 Initiatives Enhance Educational Excellence 63,000 Increase Access and Ensure Diversity 9,900 Expand SUNY's Leading-Edge Research and Innovation Environment to Drive Economic Development 31,700 Keep Campuses Safe and Secure 9,600 Enhance Accountability 2,500 Total Initiatives $116,700 Total Requested Increase $181,481 V. 2008-09 Budget Request: Community Colleges Community colleges are the fastest-growing segment in the SUNY system, currently enrolling over 50 percent of the students (by headcount) in the system. These institutions have two important responsibilities. They train the highly skilled, technologically advanced workforce for the innovation economy; particularly in high needs areas such as health care. They also provide students with a convenient and affordable entry point to the higher education system. In 2008-09, the SUNY Community Colleges request increased oper-ating aid to allow the campuses to hire more full-time faculty, and better support high needs programs and remedial education. These resources will provide students with smaller classes, better advisement and more intensive teaching techniques in remediation programs – all essential steps for them to achieve success in the SUNY system. Full funding of this request would allow the shares for the community college funding partners – students, sponsors and the state – to be realigned in equal 33 percent shares. This 33 percent share is higher than the current state average (30%) but less than the up to 40 percent as defined in statute. Mandatory Costs $20.6M Recent Legislation requires community colleges to provide for certain fringe benefit expenses for an optional retirement program. This request includes an estimated $5.5 million dollars to cover the State’s share for 2007-08 and 2008-09 of $1.6 million and $3.9 million, respectively. An additional $15.1 million is requested for 2008-09 to cover the annualization of the 2007-08 funded FTE increase. This includes an increase in the funded enrollment for 2008-09 ($14.7 million) and a slight inflationary increased in the State’s share of rental costs ($.4 million). Community College Initiatives: Increase Community College Base Aid $200 per FTE $20.7M New York State education law requires State operating aid be up to two-fifths or 40 percent of operating costs for the SUNY community colleges, which all provide full- opportunity programs. This request is a first step toward seeking the full 40 percent (the additional $200/FTE will bring the State’s share to approximately one-third, or 33.5 percent, statewide). Minimum Floor Funding $36.9M In addition, there are several community colleges that would not have one-third of their funding for operating costs covered by the State even with the additional requested increase in base aid. When campuses do not receive the appropriate State share, the funding burden is unfairly passed to students and the local sponsors. To correct this disparity, SUNY proposes that campuses shall receive, as a minimum, the per capita (FTE) funding as proposed or one-third of net allowable operating costs, whichever is greater. Provide $200 additional aid per FTE enrolled in high-demand programs $1.3M Continued funding for high-demand, high-cost programs that prepare students for 21st century careers enable community colleges to better serve the workforce needs of the State. Employers in New York State are experiencing significant workforce shortages in occupations such as nursing and allied health, and the “workforce gap” is projected to increase in the near future. However, the high cost of preparing workers for high-demand jobs, such as nursing, has challenged the ability of New York’s community colleges to sustain these important academic programs, let alone expand them. Many of these programs face constraints because of their resource-intensive nature and accreditation requirements. Current funding parameters are not adequate to sustain and grow these programs. Provide $150 additional funding per FTE for students who receive resource-intensive remedial education programs offered by community colleges $2.6M New York’s community colleges are open-admissions institutions – which mean they enroll returning veterans, recent high school graduates, students whose primary language is not English; in short, all students with a demonstrated “ability to benefit,” especially adult students returning after long absences. Thus there is a critical need for remedial programs, including advising, counseling, tutoring, and individualized support services for students with special needs. Community colleges must remediate deficiencies in mathematics and communication skills for a significant number of entering students. This role, especially with respect to English language skills, is becoming increasingly important as community colleges respond to the needs of a more diverse student body. Addressing deficiencies in basic skills is crucial if students are to fully benefit from a wide range of educational opportunities that community colleges provide. However, remedial courses require a disproportion-ately large allocation of resources if these programs are to successfully prepare students for the standard college curriculum. Additional State aid per FTE student is therefore required to provide for these remedial programs and, ultimately, student success. Safety and Security $10.8M There is nothing more critical to the State University than the safety of its students, faculty and staff. The Chancellor’s Task Force on Critical Incident Management has provided key recommendations to improve the readiness of our campuses to respond to emergency incidents. The cost of implementing this important plan is requested. The SUNY Compact and the Community Colleges: The Community Colleges are also supported by local sponsors and student tuition. For their share of the Compact, the Community Colleges will generate $3 million in philanthropy and $1 million in efficiency and innovation savings. This will supplement the two-thirds of the community college budget that is funded at the local level by the local sponsor and student tuition. Table VII Community Colleges Mandatory Needs and Initiatives (in thousands of dollars) 2007-08 Enacted Budget State Tax Dollar Support (Base) $444,284 Mandatory Needs Fringe Benefits 5,488 FTE Aid and Rental Aid 15,103 Total Mandatory Needs $20,591 Initiatives Keep Campuses Safe and Secure 10,800 FTE Aid (per capita/formula aid) 20,732 Enhance Funding for Student Support 40,769 Community College Capital Program Office 150 Total Initiatives $72,451 Total Requested Increase $93,042 2008-09 Requested State Tax Support $537,326 VI. 2008-09 Budget Request: SUNY Hospitals The three SUNY teaching hospitals (SUNY Downstate Medical Center, Stony Brook University Hospital and Upstate Medical University) provide essential medical care and cutting edge health care research to their respective communities. SUNY requests a $39.9 million increase to the State support for the hospitals so they can continue to provide these services to the people of New York State. The State support to the SUNY hospitals recognizes the additional costs salaries and benefits that are a result of State collective bargaining agreements; the SUNY hospitals are also different from other State agencies in that they pay actual fringe benefit costs. Further, the State support acknowledges the costs of maintaining unique programs (burn unit, neonatal units, level I trauma centers) that are costly to operate, but serve New York’s most vulnerable citizens and support the academic mission of SUNY and the State. Table VIII SUNY Hospitals (in thousands of dollars) 2007-08 Enacted Budget State Tax Dollar Support $146,300 Hospital Support 39,900 2008-09 Requested State Tax Support $186,200 VII. 2008-09 Budget Request: Requests from the Contract and Statutory Colleges The statutory colleges at Cornell University and Alfred University, partially supported by State funds, are governed cooperatively by the SUNY Board of Trustees and the governing boards of the host institutions. The colleges at Cornell include Agriculture and Life Sciences, Human Ecology, Veterinary Medicine, and Industrial and Labor Relations. Alfred University hosts the New York State College of Ceramics. The Statutory Colleges at Cornell University The Cornell Statutory Colleges request $14.6M in base level increases for salary adjustments, OTPS inflation, and targeted enrollment growth; $2 million of this request will fund a 40 percent increase in the Veterinary Medicine class size beginning in 2012- 13. Funding prior to this date would be used to plan and hire new staff and build the increased class size. Cornell also seeks $22.5 million for the following initiatives: Land Grant Mission Support – In 2006-07 a positive step was made to identify $60 million as discrete State support for the land grant mission. This amount is not adequate to support the full direct and indirect support costs for land grant activities, and the shortfall is estimated to be $12 million. Sustainability – Cornell’s request of $5 million would support seed grants, strategic faculty research start-up funds, and other emerging program initiatives targeted to address State, national, and global sustainability issues. Cornell has unique capacity to apply cutting-edge research to address these critical issues. Further, a strategic $5 million investment should help enable the university to compete successfully for growing federal and private research funding targeted towards sustainability. Economic Development – Cornell requests $5 million to seed economic development initiatives applying the university’s research knowledge base (contract colleges with leveraged participation of endowed colleges) to foster economic development within New York State. Many academic and research efforts in applied statistics, nano-biotechnology, viticulture and enology, sustainable agriculture, resource economics and adaptation to climate change are positioned to enhance New York’s economic profile. Accessory Instruction – The private colleges provide a significant number of first and second year courses to contract college students. The shortfall in State funding support has grown substantially to approximately $13 million. The contract colleges have allocated resources to partially reduce the endowed university subsidy, but this has eroded the operating budget capacity of the contract colleges. Cornell requests an inflationary increase to substantially eliminate this shortfall. Cooperative Extension – This funding flows through to local Cooperative Extension Associations throughout New York State. The local Associations are absolutely critical to the effectiveness of the cooperative extension system throughout the State. The requested increase provides full funding of the County Law section 224 funding formula matching increased county support. The College of Ceramics at Alfred University The College of Ceramics requests base level increases of $410,000 for salaries and wages, energy inflation, and the Unified Contract, and $640,000 for the following initiatives: • Engineering Enrollment, Research, and Technology Transfer at the Inamori School of Engineering – University faculty and students and Kyocera Corporation engineers will be linked in ongoing research and technical exchange programs as they develop and explore new applications in advanced materials. • Environmental Health and Safety – The more than 700 Art and Design and Engineering students work in laboratories and/or studios in which they can be in contact with hazardous materials. The requested funds would support safety and environmental needs at the College, including equipment and supplies for student/faculty health and safety, air handling systems for certain chemical rooms, supplies for hazardous waste storage and disposal, and air sampling. • Scholes Library – Additional funding is requested for essential electronic resources. Ceramics also requests funding for the purchase of essential specialized publications for material science, polymers, and glass resources. • Access and Diversity Coordinator – the College wants to build upon existing regional strategies and develop new ones to identify students from underserved populations for possible admissions. In addition, the College wishes to develop a roster of potential artists and engineers for special assignments within the College to lecture, provide workshops, exhibitions and other outreach activities. The SUNY Compact and the Statutory Colleges: The Statutory Colleges will also contribute their share of the Compact by generating increased philanthropy and efficiency and innovation savings. Table IX SUNY Contract and Statutory Colleges (in thousands of dollars) 2007-08 Enacted Budget State Tax Dollar Support (Base) $172,279 Alfred Ceramics Salary Increments/OTPS Inflation 410 Research/Enrollment/Technology Transfer 460 Environmental Health and Safety 95 Library 25 Access & Diversity Coordinator 60 Total 1,050 Cornell Statutory Colleges Salary Increments/OTPS Inflation 12,642 Enrollment (Veterinary Medicine) 2,000 Land Grant, Sustainability and Econ. Development 22,300 County Cooperative Extension 210 Total 37,152 Total Requested Increase $38,202 2008-09 Requested State Tax Support $210,481 VIII. 2008-09 Budget Request: General State Charges New York State covers the cost of fringe benefits for the State-operated and statutory college employees funded through the core operations budget. The State University pays for part of these fringe benefits, primarily the matching portion for participants in the Optional Retirement Program, through a direct appropriation. The remaining fringe benefit payments are made directly by the State on behalf of the University. Table X General State Charges (in thousands of dollars) 2007-08 Enacted Budget State Tax Dollar Support $158,300 Optional Retirement Program (ORP) legislative changes 6,200 Employer contributions 10,607 2008-09 Requested State Tax Support $175,107 APPENDIX: ACADEMIC QUALITY INITIATIVES State Operated Campuses Initiatives The State University of New York 2008-09 Budget Request (thousands of dollars) Enhance Educational Excellence Increase Faculty (Diversity & Strengthen the Faculty; Expand High Needs Programs) 25,200 Diversify the Faculty 4,700 Provide Faculty for High Needs Programs 11,200 Strengthen the Faculty 9,300 Ensure a Quality Student Teaching Experience 900 Strengthen the Educational Experience 14,400 Digital Library 3,000 Student Performance Tracking 5,000 Strengthened Academic Analysis and Decision-Making 1,400 Campus-based Assessment 300 Instructional and Research Equipment – Technology Upgrades 4,500 Academic Leadership Development Program 200 Graduate Student Stipends & Waivers 16,500 Geographic Differential 6,000 Total $63,000 Increase Access and Ensure Diversity Office of Diversity and Educational Equity 400 Integrate Diversity and Excellence 1,800 Student Scholarships and Support Targeting Access and Diversity 7,700 Empire State STEM Scholarships 1,500 Student Access and Success Program 1,000 Graduate Fellowships for Educational Equity and Diversity 2,500 EOP 2,500 College Work-Study (state match) 200 Total $9,900 Expand SUNY’s Leading-Edge Research and Innovation Environment to Drive Economic Development Strengthen SUNY’s Competitiveness 20,000 Sponsored Activity Match at 20 Percent 10,300 SUNY Press 200 EOC 700 China Initiatives 500 Total $31,700 Keep Campuses Safe and Secure Security and Safety 9,600 Total $9,600 Enhancing Accountability Greening SUNY self-funded Campus Services Support 2,500 Total $2,500 Total State Operated Initiatives $116,700 APPENDIX: ACADEMIC QUALITY INITIATIVES Enhance Educational Excellence Increase Faculty The core building block of the university is its faculty. This budget request specifically asks for faculty in several key areas: faculty increases driven by enrollment; faculty to increase research, economic development and global competitiveness; and faculty to enhance the diversity found on SUNY campuses. Full-time faculty provide mentorship, create new research ideas, and teach our students from their introductory courses through the most advanced graduate and professional programs. SUNY requests funding to reduce the student-to-faculty ratio so that students can have more personal interaction with faculty, learn in smaller class settings, and benefit from innovative learning settings that faculty provide. Simply put, the research and scholarly work conducted by full-time faculty at SUNY must stay apace with other states. SUNY must attract still more economic, cultural and intellectual power to New York. SUNY needs to increase the proportion of full-time faculty so that students can have more consistent advising, departments can build long-term programs of study and research, and the entire system can deliver a higher quality education for its students. The State-Operated campuses alone need more than 1,000 ADDITIONAL faculty simply to attain the mean student-to-faculty ratios currently found in other states. To achieve excellence, New York needs to invest in faculty. • Diversify the Faculty To better align the diversity profiles of SUNY faculty and students, this funding request will support 60 percent of the salaries for three years and one-time start up costs for diversity faculty, as well as full funding for postdoctoral fellows. The hiring campus will be expected to provide 40 percent of the faculty salary for the first three years, and assume the complete costs of the appointments after year three. The full salary for one-year postdoctoral fellowships will be supported through this program annually. SUNY places a high priority on improving access and diversity so that the University becomes more representative of the population and needs of the State of New York. Beginning with the establishment of an Office of Diversity and Educational Equity at the System level, SUNY requests funding for a number of initiatives that will proactively recruit a diverse group of faculty, staff, and students who will integrate into New York’s cultural, economic, and leadership fabric. The office and the initiatives are described further below in this document. • Provide Faculty for High Needs Programs The High Needs Program, currently funded at $4M, establishes and/or expands campus programs for which there is a demonstrated economic development or public health need, including programs such as engineering, information science, nursing and other allied health areas. Additional investment over two years will enable SUNY to hire new faculty required to expand access and educational opportunities in these high need areas. • Strengthen the Faculty Faculty additions in areas that create scholarly, cultural, and international excellence will be added in conjunction with the reduction in student-faculty ratios. These faculty are critical to the core missions of SUNY institutions. The need for them will increase as more of SUNY's faculty, whose average age is 49, retire, exacerbating the high student/faculty ratios found across all sectors of the University. Ensure a Quality Student Teaching Experience K-12 teachers who supervise teacher education students from SUNY during their student teaching experience receive either a SUNY tuition voucher valued at $250 or payment of $200 for each supervising assignment. This amount has not been increased in over a decade and is affecting our ability to place our student teachers. SUNY’s New Vision for Teacher Education, established in 2002, recommended an increase from the current value to $300. Funding requested in 2008-09 will support the implementation of this increase. Strengthen the Educational Experience In addition to increasing the number of faculty, the initiatives described below provide support for the work of the faculty in delivering modern curricula, research innovation, and well educated students. SUNY simply must keep pace with technological advances. Among these are the digital library, technological upgrades to instructional and research equipment, and data systems required to track and improve articulation, graduation, retention and transfer of students. The University must also provide funding for faculty development, including leadership training. Each of these initiatives is described below. • Digital Library The revolution of electronic content, relatively stagnant budgets, and the impact that SUNYConnect has had on increasing access to SUNY libraries all contribute to the need for the University to increase its commitment to digital learning resources. The requested funding will be combined with matching funds from campuses to expand the collection of electronic content so that it better reflects and supports current curriculum and research pursuits across the system. A university-wide investment supports SUNY in leveraging financial resources as cost effectively as possible in both vendor negotiations and through partnerships with the New York State Higher Education Initiative (NYSHEI) and Nylink. • Student Performance Tracking In an effort to increase retention and graduation rates, the State University seeks to purchase a degree audit system that will enhance academic advisement, allow students to plan and track their academic progress, enable faculty advisors to actively engage advisees, and allow administrators to effectively plan course sections needed to meet student demand. In addition, the State University seeks to enhance seamless transfer between institutions by developing electronic credit assessment software that would enable community college students to submit their transcripts electronically to multiple institutions. Funds are requested to purchase software, complete appropriate modifications, and implement workforce development programs. • Strengthened Academic Analysis and Decision-Making The University must make the most effective use of its resources and have timely, accurate and complete data available as it strives to become the best public university in the nation. SUNY needs information resources that support stronger analysis and outcomes reporting, particularly in areas related to academic programs, faculty productivity, and student outcomes. Such information resources currently do not exist at System Administration due to the complex nature and diversity of SUNY’s sixty-four campuses, i.e., state-operated campuses, statutory colleges, and community colleges. The initiative consists of three components. The first provides resources to build information systems in areas where information is lacking: student financial aid, student tuition and fee payment, and undergraduate and graduate admissions. Among other things, this investment would enable the calculation of the net cost of college for students and their parents, including the debt incurred. The second component provides resources to acquire databases that are created and maintained by entities outside SUNY. This information is crucial for SUNY to benchmark its performance in areas such as faculty research productivity, retention and graduation success of students who transfer to a non-SUNY college, and the preparation of high school students for college. The last component provides resources to conduct a national survey of alumni. It has been ten years since System Administration last surveyed graduates. The information learned from alumni is essential in understanding what SUNY does well in preparing students to enter the workforce, and where it needs to improve. This investment will assist the University in making academic decisions based on sound data in the areas mentioned, resulting even more efficient use of State resources, and an enhanced ability to report performance outcomes in many important areas, such as transfer student success. • Campus-Based Assessment In June 2004 the SUNY Board of Trustees passed a resolution on “Strengthening Campus-Based Assessment” (SCBA) that required campuses to implement far more rigorous assessment of student learning in selected general education programs (Mathematics, Critical Thinking and Writing). This resolution also required campuses to evaluate their academic environment, in particular student engagement (e.g., using the National Survey of Student Engagement [NSSE] or the Community College Survey of Student Engagement [CCSSE]). The Trustees also stipulated that System Administration would assume responsibility for funding SCBA, on both the State- operated and community college campuses. The funds requested for SCBA in 2008-09 will support campuses’ ongoing implementation of SCBA as required by the Trustees. In particular, these funds will support administration by campuses of nationally-normed test for Critical Mathematics; administration and scoring of rubrics for the three student learning outcomes areas (Mathematics, Critical Thinking and Writing); and administration of the CCSSE. • Instructional and Research Equipment – Technology Upgrades Academic equipment that is current and in good working order is crucial for both delivering high quality instruction and conducting innovative research. Keeping pace with rapid advances, especially in the scientific and technology arenas, requires equipment upgrades and replacement on a regular basis. The funding requested will be distributed to state-operated campuses according to method that considers: the impact on student and faculty workloads within discipline categories, the advances necessary to stay current, and amount and age of equipment. • Academic Leadership Development Program The Academic Leadership Development Programs has two components. One is the Academic Affairs Fellowship Program, which is designed as an avenue for professional development for SUNY campus faculty and administrators, familiarizing them with the academic work and initiatives in the Provost's office and the System Administration. This program has also been effective in promoting System Administration’s understanding of campus perspectives on a range of areas by providing System staff with insights and experiences of key people on SUNY campuses. The second is the SUNY Leadership Series, which provides orientation for new individuals in campus leadership positions, summer leadership workshops for selected participants and regional workshops on topics that will assist campus leaders in meeting new challenges, e.g., Emergency Management, Security and Safety. Graduate Student Stipends & Waivers SUNY requests funding of $14M in 2008-09 to enhance support for graduate tuition distributed as part of the University’s Tuition Reimbursement program and to help increase the stipend amounts offered by campuses to more closely align with national averages. An additional $2.5M in funding will be used to expand the number of graduate fellowships provided. Geographic Differential The geographic differential in the budget allocation process recognizes the higher costs faced by downstate campuses and those in the Hudson Valley. The index has not be updated in ten years although the differential has slowly moved north through the Hudson Valley. The requested funds, which total $30M over five years, would allow a phase-in of an updated index. Increase Access and Ensure Diversity At SUNY, one of the highest priorities is to improve access and diversity so the University becomes more representative of the population and the needs of the State of New York. Beginning with the establishment of the Office of Diversity and Educational Equity at the System level, SUNY requests funding for a set of initiatives that will allow SUNY to proactively recruit a diverse group of faculty, staff, and students. The Office of Diversity is described below along with related initiatives. Office of Diversity and Educational Equity The Office of Diversity and Educational Equity will focus university-wide efforts on identifying, recruiting and retaining outstanding faculty and graduate students from historically under-represented populations in U.S. higher education. The Office will provide access and opportunity to the underserved students of all ethnic origins, and develop, implement strategies and programs to enhance graduation rates and academic preparation of these students. Moreover, in collaboration with campuses, the Office of Diversity will devise academic programs designed to infuse diversity into academic excellence: African American, Hispanic, Latino/a, Asian, Native American and Pacific Islander. The initial funding supports two staff (Vice Provost and Secretary) and baseline operating expenses. Additional funding will support four additional staff members, graduate assistants and associated operating expenses. Integrate Diversity and Excellence This initiative will improve the integration of diversity and excellence across the University through: Seed money for operating and staff expenses for two experimental offices dedicated to diversity recruitment and outreach in upstate urban areas; grants, awards and workshops (Diversity Recruitment and Retention Best Practice Workshops, Diversity Curriculum Development Grants, Diversity and Equity Faculty Research Grants, Campus Diversity and Equity Awards and Faculty Diversity Teaching and Research Awards); and a Diversity Research Initiatives Program. Student Scholarships and Support to Ensure Access and Diversity • Empire State STEM Scholarship The Empire State Undergraduate STEM Scholarships will provide awards ranging from $5,000 to $18,000 annually for up to four years of study. This Scholarship program will be modeled after the successful Meyerhoff Program at the University of Maryland, Baltimore County, which is designed to promote academic success among students from traditionally underrepresented populations who plan to pursue doctoral studies in the sciences and engineering. The program will be administered by the Office of Diversity and Educational Equity. • Student Access and Success Program The Student Access and Success Program of the Office of Diversity and Educational Equity will serve students who are underprivileged and/or underrepresented but have attained a record of academic achievement that disqualify them for admission into the Educational Opportunity Programs (EOP). The funds will provide students with partial scholarships of up to $3,000 annually for up to four years of study. Campuses will be provided with funds to administer a special program extending counseling, advising, mentoring, funded research experience, and preparation for GRE, LSAT and other post baccalaureate entrance examinations to these scholarship recipients. • Graduate Fellowships for Educational Equity and Diversity SUNY requests funding totaling $1.7M in 2008-09 to cover increases in graduate tuition for the existing university-wide allocation that provides partial support for Graduate Diversity Fellowships. SUNY also requests additional funding of $800,000 to support new Graduate Fellowships targeting educational equity. • Educational Opportunity Program The Educational Opportunity Program proposes three initiatives. A Funding Enrichment initiative for both State Operated and Community College programs is designed to reduce unmet need in students' financial aid packages. It will reduce loan indebtedness and the student's need to work extensive hours thereby leading to better student and program success. An Enrollment Increase Initiative for State Operated Campuses is designed to reduce the overwhelming student demand for program services. A Community College Enrichment initiative will permit increased enrollment in existing programs and will provide funding for additional services, including recruitment of underserved populations, advisement/transfer counseling, and preparatory services during the summer preceding matriculation and other retention-related initiatives. • College Work-Study (state match) The US Department of Education (DOE) mandates that to participate in the Title IV and Title III Student Financial Aid programs each campus must contribute a portion of their own funds to these programs. There is a university-wide allocation currently in place to assist campuses in meeting the required institutional capital contribution state match required for Federal Work Study (FWS). In order for the University to receive maximum federal funds available for Federal Work-Study, additional state funding is needed to meet the required institutional capital contribution state match. The FWS program provides job opportunities for students by combining Federal and campus funds and making awards based on financial need. Generally, students are paid minimum wage per hour, however many campus jobs pay higher than the minimum wage. The FWS award depends on financial need, other aid received, the availability of jobs, and the number of hours a student can work. Expand SUNY’s Leading-Edge Research and Innovation Environment to Drive Economic Development • Strengthen SUNY’s Competitiveness The merits of investment in clusters of research excellence, particularly interdisciplinary centers, can be clearly seen in the development of the College of Nanoscience and Engineering (CNSE) at Albany, the Wireless Center at Stony Brook, and the Packaging Center at Binghamton. In each case, SUNY has advanced the economic environment of a region, developed strong industrial partnerships, or competed successfully for large Federal initiatives. This funding will be awarded competitively to establish new clusters of excellence, or to provide critical investment in the infrastructure of current research strength. Interdisciplinary expertise and infrastructure provide the innovation environment that is the drawing card for technology-based concerns, the highest quality faculty, and the intellectual partnerships necessary for economic development of a region. The goal is to provide critical infrastructure (people, equipment, and specialized space) that can leverage research and scholarship into economic development opportunities that will increase the competitiveness and prestige of SUNY, the economic development in our State, and further enhance the innovation environment of New York. As such, the program parallels the addition of Empire Innovation faculty to strengthen expertise. It ties that and other expertise together with pockets of infrastructure in areas that are key to the development of competitiveness, innovation, and economic development. In addition, to these seminal programs we are asking for support that is specifically targeted at aspects of research, culture and scholarship, and will drive the reputation of the State and SUNY into the future. These initiatives are listed below. • Sponsored Research Activity Match The budget allocation process implemented in 1998-99 included a match of 20 percent on sponsored funds to provide campuses with an incentive to grow their research activity. The current BAP funding level is at a 12 percent match. This request returns the match to 20 percent, phased in over five years. SUNY Press University presses publish the most up-to-date scholarship resulting from research not only from their own faculty, but also from experts around the world. These presses bring considerable prestige to Universities, nationally and internationally. The same can be true of SUNY Press, which needs funding for establishment of a journal publishing program; publication of regionally important scholarship, particularly scholarship dealing with the historical, ecological, and anthropological books specifically dealing with New York and the surrounding region; the establishment of successful electronic publishing paradigms; and development of a strong external advisory board to both promote the press and to establish philanthropic support. The performance of the SUNY Press will continue greatly to the visible presence of the University’s scholarship. Educational Opportunity Centers Located in urban areas and operated under the guidance of a sponsoring college, each of the ten Educational Opportunity Centers (EOCs) is much like a campus, having its own facility and faculty as well as a complement of student services personnel and administrators. EOCs provide innovative academic programs leading to gainful employment and economic self-sufficiency for an adult population that is economically disadvantaged, educationally under-prepared and primarily minority. The EOCs program requests funding for liability insurance, textbooks for expanded programs, and computer replacement and distance learning. China Initiatives SUNY has recently embarked on educational ventures in one of the world’s biggest developing economies: China. A partnership established with Nanjing University (NJU) includes a dual degree/diploma programs between SUNY and NJU, a SUNY presence on Nanjing's international campus, and a SUNY/NJU Center for Global Studies at Levin Institute. A SUNY office in Beijing has been established to facilitate liaisons between SUNY campuses and Chinese universities and higher education institutes. Having this office also allows SUNY to stay abreast of developments in Chinese rules and regulations related to higher education. Funding requested will support the hiring of a Program Officer for China, costs of running the China office (including personnel in China), and expenses for SUNY faculty and administrators to travel to China to advance the initiatives. Keep Campuses Safe and Secure The Chancellor’s Task Force on Critical Incident Management released a report in May 2007 outlining a number of specific recommendations and actions the University must undertake to protect the health and safety of students, faculty and staff. The funding request would provide support for the NY Alert System; increased mental health and security staffing; appropriate technologies to enhance campus safety; augmented campus emergency response plans; campus behavior assessment committees; a system-wide review of campus training procedures; and better critical incident reporting procedures. Enhance Accountability Greening SUNY SUNY will assume a national leadership role, through the self-funded Greening SUNY program, in energy sustainability, education, technology, economics, and public policy through the integration of practice, teaching, and research. The conservation goals within this initiative include reducing energy use to the lowest level possible; investing in energy conservation through the use of performance contracts; capping green house gas emissions to current levels and reducing emissions of carbon dioxide by 20 percent by 2014; increasing the use of renewable energy; developing five new combined heat and power projects by 2010; designing new buildings and rehabbing existing ones in accordance with Leadership in Energy and Environmental Design (LEED) silver rating; increase the use of bio diesel to 10 percent of total usage by 2008; and increase the use of bio heating oil to 10 percent of number 2 oil use by 2010. The pedagogical goals of Greening SUNY include developing and expanding energy related curriculum and cross-disciplinary programs; developing curriculum within campus general education programs related to energy and the environment; supporting Teacher Education Programs to strengthen their offerings in the energy-environment area; develop academic programs at the technical level through Continuing Education Programs to meet the needs of SUNY, energy service companies, regulators, and Local Delivery Companies; raising awareness about the nexus between energy and the environment among students, faculty and the community; expanding energy related research to achieve national leadership in the development and use of renewable energy; and building strategic alliances with public and private sector partners by providing research and analysis to regulators, elected officials, private industry, and New York’s citizens. Under Greening SUNY, the University will also procure energy and fuel at competitive prices while managing price risk in accordance with a prudent, clearly defined, and documented University Risk Management Policy that utilizes financially sound market based products and take a proactive role in rate cases before the New York State Public Service Commission and the Federal Energy Regulatory Commission to protect the University’s interests. Campus Support Services SUNY requests $2.5M for System Administration to provide enhanced services to the campuses. System Administration provides a variety of services, including legal, accounting, and human resources, as well as providing leadership and guidance in policy development. As the University strives to improve, it is more important than ever to have a strong system in place to coordinate activities, set standards in consultation with the campuses, and develop benchmarks and provide feedback on performance. The State University of New York www.suny.edu The SUNY Compact: 2008-09 Budget Request Table of Contents 2 Mission 3 Message from the Interim Chancellor 5 The SUNY Compact 9 2008-09 Operating Budget Request 21 Appendix: Academic Quality Initiatives Summary 29 2008-09 Capital Facilities Budget Request Mission – The State University of New York The mission of the State university system shall be to provide to the people of New York educational services of the highest quality, with the broadest possible access, fully representative of all segments of the population in a complete range of academic, professional and vocational post-secondary programs including such additional activities in pursuit of those objectives as are necessary or customary.” (New York State Education Law, Section 351) A Message from the Interim Chancellor As the State University of New York approaches its 60th anniversary, the university is poised to take its place as a national leader in public higher education. We have made great strides in educating millions of New Yorkers, in attracting leading-edge researchers to our campuses and in contributing to the communities and to the regions that our campuses call home. Our challenge in these early years of the 21st century is to renew and recommit ourselves to our mission of offering access to New Yorkers to a high- quality, affordable education and to creating an educated workforce that will in turn enrich New York’s economy. The New York Commission on Higher Education recognizes this challenge and has sent a clear message that the state must invest strongly and strategically in public higher education for the good of the state and for its people. The Commission report outlines an educational plan for the reinvigoration of the state through increased investment in faculty, research, operations and facilities. The Commission's work builds on the foundations of past state higher education commissions to ensure that the University has the statutory autonomy to adapt to today’s societal and business needs and to ensure that access to a top-quality public college education remains an affordable option for generations to come. If we are to make SUNY among the best of all public university systems in the country, then we must rise to meet our challenges. An important challenge for all of our campuses is that enrollment growth combined with government underfunding has resulted in a shortage of full-time faculty. In addition, decades of underinvestment in the capital plant and equipment have left the system with billions of dollars in deferred maintenance. Our most urgent need is increasing the number of talented and high-quality full-time faculty. They are the foundation of excellence in a college and university. We have depended too much on adjunct and part-time faculty, which further blunts our competitive edge. While SUNY has added 460 full-time faculty in the last two years, those numbers are not sufficient, and we are at risk of losing many other faculty currently on our campuses to other institutions and to retirement. The ratio of students to faculty is also too high, and classes are too large. We need more full-time faculty to provide the kind of advisement and co-curricular activities that enhance higher education. SUNY estimates that an additional 1,000 faculty members are needed just to attain parity with comparable public universities. Indeed, the “SUNY Compact,” the cornerstone of the University’s budget request, is aimed at identifying and providing the necessary resources to educate, advance, protect and sustain New York’s public university system. The SUNY Compact will enable us to invest in the University and keep our 64 campuses affordable and accessible while delivering a high-quality education experience, which will create a stronger New York. SUNY is a vital partner with New York to increase the state’s competitiveness and leadership in science, technology, education, business and industry. SUNY research and innovation programs bolsters many industries throughout New York and nationally, positioning the University to help drive New York’s 21st century innovation economy. With the support of the governor and the state legislature, and their renewed interest in SUNY’s role in New York’s development, we have the momentum to garner the support necessary to take our first steps on the path to greatness. As we mark 60 years of SUNY in 2008, let us make the celebration about the future—a better future for New York because of SUNY. Dr. John B. Clark, Interim Chancellor The State University of New York “We are going to build the SUNY system into the best public university system in the nation. That is our future, that is our economy, and that is how we build New York.” – Governor Eliot Spitzer “SUNY is the center of our upstate renewal...Public higher education will be at the center of ensuring New Yorkers’ ability to be at the heart of America’s future. SUNY will be key to guaranteeing that we will always produce the best and the brightest.” – Deborah J. Glick, Chair, Assembly Higher Education Committee “As Chairman of the Senate Higher Education Committee, I remain committed to expanding and enhancing educational opportunities at New York State universities. SUNY schools are a respected component of New York’s higher education system and have become vital to the economic stability of our state in a world of emerging technologies. Any vision for SUNY’s future must serve to protect and improve the standards we enjoy today, while keeping SUNY competi-tive with institutions across the nation. – Senator Kenneth P. LaValle, Chair Senate Higher Education Committee The SUNY Compact The SUNY Compact – a new partnership between SUNY, the State, SUNY students and their parents, alumni and other major stakeholders – will provide targeted and predictable financial support necessary for SUNY to become the nation’s best public higher education system. The SUNY Compact will provide the necessary funding for SUNY's academic quality initiatives. One of SUNY's most important initiatives is to add 1,000 full-time faculty over a three-year period. “SUNY must aspire to be the very best system of public higher education in the nation, if not the world. Sustained investment in the SUNY system will dramatically strengthen the state economy, and greatly enrich the cultural and social fabric of our state. I support the SUNY Compact as a way for usto achieve our goals.” – SUNY Board Chairman, Carl T. Hayden THE SUNY COMPACT The SUNY Compact is a partnership between the State University, the state, students and their parents, alumni and major stakeholders to provide targeted and predictable financial support necessary for SUNY to become the nation’s best public university system. SUNY’s 2008-2009 budget request represents an opportunity for the state to lay the foundation for investment in academic enhancement in the State University through an innovative funding strategy – The SUNY Compact. Under The SUNY Compact, the state will provide full support for SUNY’s mandatory costs and partial support for SUNY’s academic quality initiatives. The University will fund the balance of its initiatives through internal efficiencies, increased philanthropy and modest, predictable tuition increases. With the Compact, SUNY makes the following commitments: • No student needing financial assistance to meet the tuition costs will be put in harm’s way. • The University will enhance academic quality by hiring 1,000 new full-time faculty over the next three years to increase course offerings, decrease class sizes, and bolster student counseling and financial aid services. A PARTNERSHIP FOR FUNDING SUNY’S FUTURE Under The SUNY Compact, the state would commit to fund 100 percent of the University's "mandatory" costs, (e.g., labor contracts, current and planned enrollment growth, and state funding commited to enhancing academic research and 30 percent of the costs of the "New Initiatives" to enhance academic quality. The State University would increase efficiencies, find innovative methods of self-funding programs and increase philanthropy. The students would also contribute by modest, predictable tuition increases that would exclusively fund additional full-time faculty and student aid. THE SUNY COMPACT FOR The 2008-09 Fiscal Year The 2008-2009 Budget Request for the State-Operated Campuses calls for an increase of $181.5 million to fully fund mandatory costs and new initiatives. The University requests $99.8 million in state support; SUNY will fund the balance through efficiencies, increased philanthropy and predictable tuition. “Support to fund 1,000 more full-time faculty members on SUNY campuses is the most important focus of the Compact. The Compact will put more full-time faculty in SUNY classrooms and labs, which will prepare our students to be leaders and will allow our research enterprise to spark economic development.” – SUNY Interim Chancellor Dr. John B. Clark THE STATE’S COMMITMENT Mandatory – Operating Costs: The University’s mandatory costs include labor agreements and general inflation, which total $23.7 million; additional funding will be required for recently settled contractual agreements. Mandatory – Empire Innovation: In 2006, the state established the Empire Innovation Program to enhance State University research. This program calls for five years of investment, with the upcoming year totaling $12 million. Mandatory – Current & Planned Enrollment: Enrollment at the State University is a planned function of the five-year academic plans set for each SUNY campus under the Mission Review II process. With this planned and targeted growth, SUNY continues to set enrollment records every year and in the 2007-08 academic has 426,891 students enrolled. However, the tuition revenue alone from these new students is not sufficient to cover the full cost of their education. SUNY views this planned growth as a mandatory expense to be funded by the state as it strives to meet the education needs of the state’s citizenry. SUNY’s 2008-09 Budget Request calls for $29.1 million in state funding for current and planned enrollment at its four-year institutions. This funding will be directed towards the hiring of new full-time faculty to provide more course sections and smaller class sizes. Academic Quality Initiatives: Enhanced academic quality, increasing access and ensuring diversity, and providing a safe academic setting are at the core of the State University’s plan to be the leading public university system in the country. New Initiatives totaling $116.7 million are planned and the University asks the state to fund 30%,or $35.0 million, of this cost. THE UNIVERSITY’S COMMITMENT Philanthropy: Since 2000, SUNY has raised more than $1.8 billion in philanthropic support throughout the University’s 64 campuses as part of our $3 Billion Promise. Philanthropy will be a permanent feature of revenue in support of programmatic initiatives under The SUNY Compact. For 2008-09, philanthropy will comprise $18 million of the funding of The SUNY Compact. Innovation & Efficiencies: The State University further commits to enhance its budget by achieving greater efficiencies and redeploying existing resources to meet funding targets for new initiatives. For 2008-09, SUNY campuses commit to $9 million from innovation and efficiency savings to help fund The SUNY Compact. THE STUDENT’S COMMITMENT Tuition Revenue Policy: The final piece of the financing program is a predictable tuition policy with an annual review for modest tuition increases within the parameters of an inflationary index. During the development of each year’s budget the University would take into consideration the two other funding streams – SUNY and the state – and determine if additional revenues are necessary to fund the planned academic enhancements. For 2008-09, a tuition increase of 5 percent is proposed, the first tuition increase in five years. For resident undergraduate students, this equates to $110 per semester at SUNY’s four-year institutions. This increase will result in no additional tuition expense for the approximately 49,000 four-year students who receive more than the minimum TAP (state Tuition Assistance Program) awards. Virtually all TAP recipients with family incomes under $59,000 (adjusted gross income for a family of 4 with 2 children) will see no increase in tuition costs. In addition, the Federal Government is increasing the maximum federal PELL Grant by $421, to $4,731, effective fall 2008, with future increases scheduled. This tuition increase and any future increases will go exclusively toward funding SUNY’s investment in 1,000 new full-time faculty to increase course offerings, decrease class sizes and bolster student counseling, and student financial aid. 2008-09 Capital Facilities Budget Request The State University of New York BUILDING SUNY’S FUTURE: CAPITAL PROGRAMS SUPPORTING THE UNIVERSITY’S MISSION GOALS The network of SUNY facilities across the State represents a substantial asset. The total capacity of all University facilities – including both State-operated and Community College campuses – exceeds 95 million gross square feet of space, a physical plant and supporting utility infrastructure which, in aggregate, approaches that of a small city. Of the nearly 2,800 separate buildings involved, about 70 percent are more than 30 years old, and the average building age is in excess of 40 years old, as illustrated in the chart. Despite State funding increases for the University’s capital programs in recent years, maintaining these assets in a state of good repair has become increasingly challenging due to the sheer size and age of facilities. As the average 40+ year old University building continues to deteriorate or fall farther behind in terms of upgrades needed to support current academic and learning technologies, there is every indication that the coming decade will be a crucial one for investments required to accomplish a renewal of SUNY’s extensive facility network. Thus, it is fitting that for this year’s capital budget request, the University is hereby submitting comprehensive new multi-year capital financing plan proposals for all its capital programs – including educational facilities, hospitals, residence halls and community colleges – covering the five-year period 2008/09 through 2012/13. The overarching goal of these plans is to promote stability, predictability and greater discipline in the capital planning and funding process, thus ensuring that campus priorities are balanced within available resources. The following sections provide highlights of the new multi-year funding authorizations requested in each program area. EDUCATIONAL FACILITIES MULTI-YEAR CAPITAL PLAN Educational Facilities is the largest of the four main capital financing programs operating in support of SUNY’s facility preservation, construction and rehabilitation needs. It supports capital improvements for nearly 75 percent of all facilities on SUNY’s State- Operated campuses, most of which were constructed in a relatively brief time span during the 1960s and 1970s. These facilities contain some 55 million gross square feet of academic space and supporting infrastructure, such as underground utilities and power distribution systems. Because most of SUNY’s academic facilities are more than 40 years old, today there is an accelerating need for capital renovation and renewal; many of the basic structural components of these facilities – including heating and cooling systems, electrical and plumbing, water and power distribution – are reaching the end of their useful lives at essentially the same time. Accordingly, the University’s new Educational Facility Multi- Year Capital Financing Plan reflects the needs for substantial and sustained levels of capital re-investment over the next five years. Targeted Investments to Renew SUNY The proposed new Educational Facilities Multi-Year Capital Plan for the State-Operated campuses requests a total of $8.29 billion in new multi-year appropriations: • A total of $6.25 billion for SUNY’s core program of Educational Facility capital improvements to be financed from bond proceeds, including: - $3.75 billion for critical maintenance capital improvements to existing academic facilities to ensure that they achieve a state of good repair. This amount is needed to reduce an estimated deferred maintenance backlog of $3.2 billion and to address additional annual capital renewal needs coming due during the same period, thus preventing additional backlogs from accruing; - $2.5 billion for strategic capital project initiatives to selectively expand the capacity of SUNY academic facilities or to enhance and/or adapt existing facilities to support programmatic changes consistent with approved mission goals; • A $1 billion undistributed amount, also to be financed from bond proceeds, to act as a reserve to enable the State and SUNY to address evolving capital investment needs that may arise over the course of the next five years—for example, additional investments in newly emerging technologies to improve research or instructional capabilities, or the provision of targeted state incentives to spur the growth of public/private collaborations for new or improved facilities; • Authorization for up to $541.9 million in capital initiatives at the State- Operated campuses under a new “Renewable Energy and Sustainability Program,” to be financed primarily through energy savings; and • $500 million in spending authority to encourage the development of capital project financing from non-State or non-traditional revenue sources. Taken together, these components result in a sizeable increase in the rate of annual capital investment for University academic facilities. However, the multi-year request is structured to avoid the need for mid-plan adjustments or re-openers, while simultaneously recognizing and addressing SUNY’s extraordinary capital needs. The approach to the Capital Request is driven by a simple, but factual premise: the longer it takes to make essential improvements, the more costly those improvements become. Forecasting Future Needs This year, in preparing for development of the new Educational Facilities Capital Plan, the University, in conjunction with its Construction Fund, launched several intensive planning efforts simultaneously. A major goal of these efforts was to improve the University’s ability to forecast future capital investment needs to more proactively manage its facilities. These efforts included: 1) Updating statewide academic facility condition assessments to ascertain current backlogs and, as much as possible, to attempt to quantify future capital renewal needs to avoid additional backlogs; 2) Commissioning an independent study to help quantify appropriate action on backlogs and improve methods for projecting future cyclical capital renewal needs; and 3) Based on updated condition assessments, developing prioritized critical maintenance project plans for each campus. Importantly, all of these efforts were grounded in a minimum 5-10 year need assessment timeframe. This longer view is not only prudent planning, but also reflects all prior indications that the next 10 years will be a pivotal period for resolving the cumulative deterioration of our aging system of facilities. Survey of Current Building Conditions This year State University Construction Fund staff designed a survey for assessing the condition of buildings and their supporting infrastructure, and developed a comprehensive set of procedures for conducting the reviews. Armed with these tools, teams of SUCF staff and campus facility management professionals surveyed the condition of all major academic buildings on State-Operated campuses, assigning a “poor”, “fair”, “good” or “excellent” rating to more than 55 discrete building, site and infrastructure components. These efforts captured up-to-date information on the state of repair of nearly 98 percent of the total educational facility space. Figure 1 on the following page shows the summary results of the statewide condition surveys. Facility Renewal As SUNY looks to the future for its facilities, an important step is to quantify the size, nature and timing of annual capital investments needed to keep aging structures in good repair. To meet this challenge, SUNY and the Construction Fund commissioned the Nelson A. Rockefeller Institute of Government to undertake an independent analysis of the ongoing capital renewal needs of its State-Operated campus educational facilities and to provide additional benchmarking information to compare SUNY’s experience and capital needs estimates with those of other major public higher education systems. The Institute secured the services of Dr. Frederick Biedenweg of the Pacific Partners Consulting Group, Inc. (PPCG), and originally from Stanford University, to perform this study and prepare a report and recommendations in time to inform development of the new five-year Capital Financing Plan. Key findings from this study include: • Capital needs factors. Two prominent factors drove higher renewal costs and created backlogs: the percentage of buildings with complex systems (such as science or lab facilities) and the overall age of facilities. Compared with other public higher education systems, SUNY is currently at the lower end of the complexity scale, but at the higher end with regard to facility age. With 73 percent of its facilities more than 30 years old, and an average building age in excess of 40 years, the SUNY system rivals only the University of California (75 percent of facilities are 30+ years) for age of facilities. • Backlog and annual “renewal” or re-investment needs assessment. SUNY facilities are currently faced with a deferred capital maintenance backlog of $3.2 billion and an additional annual capital renewal need of $2 billion over the next five-year period to avoid the accumulation of additional backlogs. • Infrastructure concerns. Of the total backlog, some $695 million is specifically related to poor conditions in the infrastructure subsystems supporting facility operations. This area of need was the most serious concern identified by the study – especially that of aging underground distribution systems – because persistent problems in this area could lead to the even more extensive and expensive emergency repairs occasioned by major system failures. • SUNY asset value /achieving a state of good repair. SUNY State-Operated educational facilities, including buildings and supporting infrastructure, carry a current replacement value of $25.8 billion – by far the most extensive system of five other peer systems evaluated by PPCG. Based on experiences with other public higher education systems, the study recommends that, to consider a system to be in reasonably good condition, its total deferred maintenance backlog should be less than 5 percent of its current replacement value. Because SUNY’s current backlog of $3.2 billion represents 11 percent of its CRV, the study recommends that the University and the state develop a long-range capital investment strategy with the dual (and highly inter-related) goals of reducing current backlogs within a reasonable timeframe and preventing the accumulation of additional backlogs by re-investing in facility renewal on a timely basis. Campus Critical Maintenance Project Priorities Construction Fund and campus facility staff also developed specific project inventories that would form the basis for the next five-year program of capital critical maintenance activities. A primary objective was to address the facilities or facility components in greatest need of attention. This could include nearly all building and infrastructure elements deemed to be in poor condition, and/or those building fixtures or systems that, because of their relative importance to keeping buildings open and functioning, should not be allowed to fall below a “fair” condition rating. A total of $6.5 billion in critical maintenance projects was identified, addressing both backlog and annual renewal requirements that could be reasonably estimated for the next five to 10 years. After accounting for about $500 million in capital funding authorizations currently available to improve conditions rated as poor, SUNY is requesting a net total of $3.75 billion in new critical maintenance funding under the next five-year Capital Plan. This amount is intended to address the highest priority need areas assigned by campuses and identified in recent condition surveys and the CRV study. Figure 2 provides an overview of the major area of improvements proposed: Campus Initiatives Inform Strategic Capital Plan SUNY campuses were requested to submit for consideration proposals identifying their highest priority “strategic” academic facility capital project initiatives. Strategic initiatives are capital projects for new facilities, plant adaptation or critical maintenance efforts that enhance the academic mission of campuses. The initiatives had to be consistent with the mission goals and academic program directions approved under existing Mission Review II planning agreements with SUNY System Administration. Nearly $5 billion in campus proposals for strategic academic facility initiatives were received. Of this total, in the interests of affordability the University is requesting $2.5 billion in strategic project initiatives to address a broad range of program-related facility improvement needs, including both new construction and renovations needed to adapt existing facilities in support of academic offerings. A variety of academic programs will benefit, including the general sciences, business, performing arts, public health and research. Many of the proposed initiatives will provide vital support for the expansion of complex science, technology and research facilities. Figure 3 provides an overview of the types of strategic project initiatives to be proposed for the next 5-Year Financing Plan. Going Green: Renewable Energy and Sustainability Program The SUNY Energy Task Force report issued in 2007 made clear that as one of New York’s biggest energy-users SUNY has a special responsibility to be a leader in renewable energy and sustainability initiatives. Therefore, the University is also requesting $541.9 million for a series of additional capital improvement initiatives supporting the task force’s recommendations for a University-wide Renewable Energy and Sustainability Program. These include energy conservation and environmental improvement initiatives, such as increasing the use of renewable energy, some of which may also assist the development of green industries within the state. Many of these projects can generate cost-savings, currently estimated to be a combined total of as much as $32.8 million per year, by the end of a projected 17-year payback period. These green initiatives projects fall into 5 major categories of effort, as outlined: • Reduced Energy Consumption of 37%, through heat recovery, electric metering, energy performance contracting, etc. ($334.5 million); • Increased Renewable Energy Use, via the application of photovoltaics, fuel cells, wind turbines, and geothermal heat pumps ($35.3 million); • Increased Use of Biofuels, to be dispensed at 28 different fueling station sites serving the University ($3.1 million); • Development of Combined Heat/Power Plants at various campuses on sites currently using Central Power Plants ($149 million); and. • Promotion of Carbon-Sequestering Projects, which could potentially include aquaculture or biofuel development demonstration projects ($20 million). UNIVERSITY HOSPITALS MULTI-YEAR CAPITAL PLAN Introduction The State University of New York operates four health science centers that include schools of medicine, nursing and allied health, located in Buffalo, Brooklyn, Stony Brook, and Syracuse, and operates three academic medical centers or teaching hospitals at Brooklyn, Stony Brook, and Syracuse. One of 4 major SUNY capital programs provides exclusively for the physical plant needs of the University’s hospitals. This program is self-supporting. Projects are financed in the first instance through state bonding, and each hospital pays the resulting annual debt service costs from operating funds generated by patient service revenues. Under the multi-year financing plans enacted since 1998, the hospitals receive multi-year State capital funding authorizations. Prior to initiating each new project, the hospitals conduct a cost benefit analysis and review current operating revenue streams to assess project affordability. The new multi-year capital plan will continue to allow the University Hospitals to plan more efficiently, to improve operational performance and to enhance financial returns. The ultimate goal is to deliver the highest level of patient care and provide a world-class teaching environment, while maintaining financial self sufficiency. Downstate Medical Center – Total 5-Year Plan Request: $258 million Downstate Medical Center is the only teaching hospital in the Borough of Brooklyn, and its facilities serve as the hub for medical education provided by the Health Science Center. The hospital is located in an inner city environment with all of the associated socio-economic issues found in large cities, and is thus challenged to provide a high level of care for patients who often present with advanced stages of diseases that complicate the delivery of care. Capital project priorities identified by the hospital for the next 5-Year Financing Plan include the expansion of facilities to accommodate expanded ambulatory care services. This expansion will include enhancements to ambulatory surgery, emergency department, patient rooms, outpatient suites, and the creation of an advanced imaging center. In future phases of this project, Downstate plans to move the information service department, expand pre-admission testing services and add a medical office wing. Additional project priorities include funding to acquire and improve a satellite facility that will include an ambulatory surgery center, and for ongoing capital maintenance, upgrades and essential rehabilitation of the hospital’s main hospital facility and supporting infrastructure. This latter category of activity is crucial to address basic health and safety issues resulting from normal wear and tear, and exacerbated by high utilization levels, and to maintain a high standard of care given the age of the Downstate’ physical plant, which opened in 1966. Stony Brook University Hospital – Total 5-Year Plan Request: $142 million Stony Brook University Hospital is the only tertiary care hospital in Suffolk County. In addition, the hospital serves a large medically indigent population for whom services are often not available in the community. The hospital serves as the only Level I Trauma Center and Peri-natal Center on eastern Long Island, a geographic area that – in contrast to other regions of the State – continues to grow both in terms of the economy and population. Utilization of inpatient and outpatient services has grown dramatically since the phased opening of the hospital in the mid-1980s and, based on current regional demographics, is anticipated to increase in future years. To meet the demands of utilization increases and changes in medical technologies, Stony Brook’s capital priorities for the new 5-year capital plan include infrastructure improvements and facility expansion needed to both increase service capacity and maintain the high level of quality care critical to the communities that they serve. A key priority is expansion of the hospital’s medical surgical bed capacity, since many of the existing units are operating at or above capacity. This project will include the renovation of two hospital floors to create 60 single-bed patient rooms. This configuration is designed to improve patient satisfaction and will include upgrades needed to improve the overall quality of care. An additional priority is to create a new neuro-interventional suite adjacent to the emergency department to keep up with the growing patient demand for emergency stroke treatment. Stony Brook hospital is the only hospital in Suffolk County to offer a neuro- interventional program, and this program provides the life-saving treatment of brain clot removal for aneurysm and stroke victims. Stony Brook Hospital also seeks additional capital funding for critical maintenance and infrastructure renewal. These projects are imperative in order to address facility deterioration issues that could jeopardize patient and staff safety if left unaddressed. One major critical maintenance project is to repair and replace sections of the main hospital building’s exterior “curtain wall”, which is presently 30-years old and has experienced no major renovations since its inception. This effort is necessary to prevent the infiltration of water into the building through deteriorated structural components that could lead to unhealthy patient care environment. Upstate Medical University – Total 5-Year Plan Request: $326.5 million Upstate Medical University in Syracuse is the only tertiary care hospital serving a 15- county area in Upstate New York. Its catchment area includes many outlying rural communities as well as the city of Syracuse and surrounding suburbs. The hospital serves as a regional center for trauma, and provides one of the highest levels of care in the State, as measured by its case-mix factor. Upstate Medical also provides a significant level of indigent care and continues to provide a significant amount of outpatient emergency room services to the community. One of Upstate’s top priorities for the new five-year Capital Plan is construction of a new 400,000 square foot ambulatory care and teaching facility. This project will allow Upstate to consolidate most of its outpatient clinic functions into an efficient and patient friendly environment that will also enhance the teaching functions of the campus. The new facility will also house an ambulatory surgery center and an outpatient diagnostic radiology suite to support key diagnostic and treatment services. Additional project priorities at Upstate Medical include funding for facility improvements at its heart and cancer treatment centers, and major renovations to the north and west wings of the main hospital building. This renovation project will allow conversion of two- and four-bed patient rooms to single bed rooms, reflecting current trends and standards for quality hospital care. Upstate’s capital plan also includes upgrades to ancillary services units to improve the operations of the radiology and laboratory departments, and the hospital’s operating and emergency rooms. These improvements are essential to ensure that hospital’s infrastructure can support the current technologies employed in these programs, including state-of-the-art medical and diagnostic equipment. In addition, the hospital is requesting funding for ongoing critical maintenance to ensure that its physical plant continues to meet current life-safety codes, ADA requirements and other regulatory guidelines. RESIDENCE HALL MULTI-YEAR CAPITAL PLAN Overview The SUNY Residence Hall program provides affordable student housing to 26 of the 34 SUNY State-Operated and Statutory Campuses. The remaining eight campuses, Empire State College, the College of Optometry, the College of Environmental Science and Forestry, the College of Ceramics at Alfred and the Statutory Colleges at Cornell, do not have State-Operated residence halls. The Residence Hall Capital Program is administered by the Dormitory Authority of the State of New York (DASNY) under a fee for service agreement. DASNY services include the sale of residence hall bonds on behalf of SUNY to finance new residence halls and major renovations to existing facilities, and the provision of construction management services. Minor renovations are financed directly from residence hall revenues and are generally administered by the campuses. The Residence Hall Program is self-sustaining and does not receive a State subsidy. Student room rents and other associated revenues pay all operating and capital costs associated with overall residence hall operations. Room rents are limited by the local housing market and the desire to keep student housing affordable. Multi-Year Capital Plan The proposed Residence Hall Multi-Year Capital Plan requests $995 million in multi- year appropriation authority to allow the campuses to go forward with high priority projects directed to the preservation and rehabilitation of existing facilities and, where needed, construction of new state of the art, energy efficient residence halls. Of the $995 million needed for capital projects, $853 million requires bonding and $142 million will be self funded. Critical maintenance remains an ongoing concern for SUNY’s residence halls. More specifically, $853 million of the capital request would authorize: $249.4 million for the construction of new state of the art residence halls at Stony Brook, Buffalo State, Geneseo, Oswego, Potsdam and Purchase and $603.5 million for major rehabilitations and critical maintenance for all campuses including $308.0 million for Binghamton, $66.2 million for Albany and $49.6 million for Oneonta. As in past multi-year plans, the highest priority projects are those directed to the preservation and upgrade of existing facilities. Such projects are prioritized based on annual and/or ongoing residence hall condition surveys and information provided by DASNY. In addition, $142 million in self funded spending authority is requested for a variety of smaller rehabilitation projects needed for minor rehabilitations and repair of residence halls throughout the SUNY system. Due to of the nature of the projects, they are not considered suitable for bond financing. Financing for these projects comes directly from campus residence hall revenues or from the residence hall revolving loan fund, which provides loans to campuses that do not have sufficient cash to fully fund all minor projects. COMMUNITY COLLEGE MULTI-YEAR CAPITAL PLAN Overview The SUNY Community Colleges are the fastest growing sector in the State University system, with campuses that serve approximately 50 percent of the University’s students. All told, the 30 Community Colleges have 485 academic buildings (totaling 17.7 million square feet), of which 325 are more than 30 years old and are increasingly in need of critical maintenance, renovation or outright replacement. Each of SUNY’s Community Colleges is locally governed by a board of trustees, whose members are appointed by the local sponsor (the county or counties that support the college) and the Governor. As specified in statute, the local sponsor is required to provide 50 percent of the funding for capital projects and the State provides the remaining 50 percent. Under the current capital program, State financial participation is limited to academic facilities. Community Colleges initiate projects based on programmatic or facility renewal or replacement needs and use facility master plans to determine a project’s priority, scope and timing. While State appropriations may be available for capital projects, they cannot be accessed until the local sponsor commitment for funding the 50 percent non-State share has been provided. Community Colleges Capital Plan In developing the Multi-year Capital Plan, colleges were asked to provide a comprehensive listing of priority projects that were needed over the next five years. Recognizing that access to State capital is ultimately contingent upon the local sponsor fulfilling its funding commitment, the colleges were asked to categorize projects by the probability of the local sponsor’s willingness and ability to provide funding. To this end, projects submitted for consideration for state funding have been classified as follows (State share amount): • Projects which have local sponsor funding approval ($55.6M) • Projects which have a high probability of the local sponsor committing funds ($606.2M) • Projects which have a good probability of the local sponsor resolution committing funds ($381.6M) • Projects which have a fair probability of the local sponsor resolution commiting funds ($116.0M). The Capital Request, which totals $1,284.4 million in State funding, authorizes $1,159.3 million for the State bonding of individually identified projects (classified above) and $25 million in State bonding for critical maintenance, health and safety, and emergency projects. Supplementing this, the Capital Plan includes $50 million for the State share of hard dollar funding, which consists of a $30 million lump sum for critical maintenance projects and a $20 million lump sum for technology projects. The Capital Plan further requests $50 million in statewide appropriation authority for “greening” the community colleges through energy conservation and efficiency projects. These lump sum appropriations will be distributed pursuant to plans developed by the State University and subject to approval by the New York State Division of Budget. Combined State and local sponsor funding in support of the 2008/2009 Community College Multi-year Capital Plan totals nearly $2.6 billion.