THE STATE UNIVERSITY OF NEW YORK SUNY�s 2006 Legislative Agenda Promoting Efficiency � Improving Management � Enhancing Campus-Based Initiatives Public higher education ensures that all New Yorkers have access to an affordable and high quality college opportunity. Today�s society also warrants that such an education helps strengthen the state�s economy as higher education is the key to the New Economy. The State University of New York (SUNY) is the largest comprehensive system of higher education in the country. It consists of 64 colleges and universities committed to providing a broad range of outstanding academic programs for students within New York and around the world. SUNY enrolls 414,171 students, employs more than 81,105 faculty, administrators and staff, and has a projected all-funds budget for 2006-07 of over $9.5 billion. Just five years ago, the State University began an aggressive program to help supplement its state support with private philanthropic dollars. The University has raised over $1.2 billion throughout our 64 campuses towards its target of $3 billion in fundraising by 2012. The State University also receives approximately $1 billion annually in sponsored research through the federal government and private sources. The Research Foundation of The State University of New York, a private nonprofit corporation created to support research, education and public service at the campuses of the University, manages these dollars and currently has over $895 million in contract and grant funding under administration, and employs over 18,000 additional employees at many of SUNY�s campuses. Since its founding in 1948, the State University has offered intellectual and cultural growth to millions of citizens who otherwise would not have received it. This farsighted investment has been repaid many times in a better-educated, more productive citizenry. For over fifty-seven years, the State University has remained committed to its mission of public access to high- quality education. To continue on this path, the University needs to become more self-sufficient and entrepreneurial, more focused, and more creative. To do so, we need greater management autonomy. Our 2006 Legislative Agenda is structured to improve management and promote efficiencies throughout the University system, as well as to promote economic development in New York State. Enactment of these initiatives will provide System Administration, and local campus presidents, with the tools necessary to ensure that New York�s investment in SUNY is effectively managed. In addition, several campus-based initiatives are advanced that will enable locally administered programs the opportunity to improve entrepreneurship activities, thus relying less on state tax dollar support. Chancellor John R. Ryan THE 2006 LEGISLATIVE AGENDA PROMOTING EFFICIENCY OGS Centralized Contracts The auxiliary services corporations serve essential interests of the State University by providing both commodities and services to the campus communities. Campus food services and book stores are provided by or through auxiliary services corporations on most campuses. In many instances the auxiliary services corporations purchase goods or services from private vendors. On occasion these may already be available through an existing State Office of General Services (OGS) centralized contract, at more favorable terms. However, the auxiliary services corporations are not among those authorized to purchase goods or services under these centralized contracts. As a result, they must go through a time-consuming bidding process to purchase goods or services already available at competitive pricing and terms through OGS. Likewise, campus-related foundations and other SUNY-related non-profit corporations could benefit by participating in centralized contracts of the Office of General Services. Justification: Authority to purchase services through OGS centralized contracts has been extended to public authorities and public benefit corporations. SUNY�s auxiliary service corporations serve the State University campuses as an agent of the state. Extending the OGS centralized contracts will greatly assist the campuses. Fiscal Impact: There is no direct fiscal impact to the state; however, SUNY�s related not-for- profit organizations may generate fiscal efficiencies due to their ability to purchase goods and commodities from state contract. It could result in lower costs for students at the retail outlets run by these organizations, as well as additional financial support back to campuses from these not- for-profit organizations. Legislative History: 2005 � S.685-A (LaValle) Passed; A.6663-A (DiNapoli) Governmental Operations Administrative and Procurement Flexibility The State University consists of 64 campuses, over 900 million square feet of space, and an overall budget eclipsing $9 billion, making it one of the largest procurement agencies in the state. By changing the requirements for the Notice of Procurement for Contract Opportunities, aligning the monetary and non-monetary contract amounts, and allowing for preferred-source purchasing based on market prices, the state would assist the University in realizing greater administrative efficiencies. Justification: This proposal creates greater flexibility in areas of procurement and revenue contracting for the University. Enactment of this proposal would streamline University operations, expedite routine transitions, and generate increased entrepreneurial freedom to produce additional non-tuition and non-state tax revenue. Fiscal Impact: This proposal is expected to reduce State University operational expenditures related to procurement, thus increasing management efficiencies within the University. Legislative History: New Bill Construction Fund Flexibility As the State University embarks upon its new Capital Plan for construction and critical maintenance at its campuses, this legislation would provide the State University Construction Fund with the tools to best serve the students, faculty and staff who rely on the infrastructure of the University system. This proposal provides administrative flexibility for the Construction Fund to expand university-related economic development facilities, use pre-qualified bidders, and employ the design/build method of capital project delivery. Justification: Changes in the construction industry and in state law require modifications in the enabling legislation of the Construction Fund if the Fund is to continue to meet the needs of the University efficiently, both in terms of time and expense. Except for authorization for university- related economic development projects enacted in 1999, the legislation under which the State University Construction Fund is administered (Article 8-A of the Education Law), has seen little changed since its adoption in 1962. Fiscal Impact: This proposal has no direct fiscal impact on the state. However, the Fund will have the authority to develop university-related economic development facilities, which will allow the University to rely less on state appropriations for capital facilities. The ability to engage in design/ build will generate savings in time-to-completion of projects which could have a positive fiscal impact on the overall budgets associated with SUNY capital construction projects. Legislative History: 2005 � S.2453 (Winner) Passed; A.8666 (Canestrari) Higher Education; S.5604 (LaValle) Passed Hospital Flexibility The State University operates three health science centers/hospitals. Enhancing the operational and procurement flexibility of the State University�s health science centers is necessary to allow them to compete in a highly competitive field. Justification: The legislation augments and clarifies legislation enacted in 1998 to give State University hospitals more management flexibility and the ability to enter into management care and other joint and cooperative health care ventures. It also builds upon the recommendations of the Price Waterhouse Study commissioned by the State University and the Division of the Budget in November 2000 to enhance State University hospitals. The legislation increases the thresholds for the purchase of goods and services without the procedural requirements of Attorney General and State Comptroller approvals, so long as contracts comply with State University procurement, comparative review and conflict-of-interest guidelines, and collective bargaining agreements where applicable. This legislation also strengthens strategic and operational initiatives of the State University hospitals which will enable the hospitals to better compete in the health care marketplace. Fiscal Impact: The savings and revenue expansions, while not quantifiable currently, will allow SUNY�s hospitals to take advantage of contracts for services and volume purchases for medical supplies, solutions, and equipment. In addition, this proposal will enable the hospitals to participate, up to specified limits, in consortiums and other arrangements which will enable them to optimize their supply chain activities. Legislative History: 2005 � S.1225 (LaValle) Higher Education; No Assembly Companion IMPROVING MANAGEMENT Police Retirement and Transfer The University is proud of the men and women who provide for the safety of our campus community. This legislation makes State University Police Officers eligible for the NYS and Local Police and Fire Retirement System, giving them benefits equal to that of their fellow state police units. Specifically, it provides for twenty-five (25) year half-pay retirement and the ability to transfer to and within other police forces or departments in New York State. Justification: The State University Police Officers receive the same training and work assignments as their counterparts in the state. However, the benefits afforded to the State University Police lag behind that of their state counterparts. This legislation levels the field by permitting State University Police Officers to transfer from the New York State Employees� Retirement System to the New York State and Local Police and Fire Retirement System and to be covered by the provisions of a new twenty-five (25) year half-pay retirement plan. In addition the proposal will permit existing non-SUNY police officers too seamlessly transfer to SUNY and permit SUNY officers to transfer to other police forces or departments within New York State. Fiscal Impact: The retirement provisions will create an increase of approximately $780,000 in the annual contributions of the State of New York to the Local Police and Fire Retirement System for the fiscal year ending March 31, 2007. In addition there will be an immediate past service cost of approximately $10.0 million which would be borne by the State of New York along with an increase in annual contributions for future State University Police Officers, who would be Tier 2 members of the New York State and Local Police and Fire Retirement System. With respect to the transfer portion of this bill, there is no direct fiscal impact; however, with the enactment of this legislation, the University anticipates that there will be fewer State University trained police officers who will leave SUNY�s employment for alternative police agencies due to the equalization of benefits across the state. In actuality, SUNY may see an influx of trained police officers transferring into the SUNY police force for the same reasons. Legislative History: 2005 � Retirement Options S.3065-B (Robach) Civil Service; A.3358 (McEneny) Passed -Transfer Opportunity S.4477 (Maziarz) Rules; A.7672 (Canestrari) Passed Retirement Programs for Medical, Dental and Optometric Interns and Residents The State University, in the operation of its medical, dental, optometric schools, must provide experiential internships and residencies for these students. This legislation clarifies the law in relation to retirement options for medical, dental and optometric residents and interns who provide services at health-related SUNY facilities, specifying that they are not eligible to participate in the Optional Retirement Program (ORP) but may opt to participate in the New York State and Local Employees� Retirement System. Justification: In October 2002, the Office of the State Comptroller rendered an opinion that residents and interns are required to join the Optional Retirement Program (ORP), the Teachers� Retirement System (TRS) or the State and Local Employees� Retirement System (ERS). Since then, the TRS informed the University that only employees in faculty or select academic titles are eligible to participate in their system. The State University has made a similar policy decision relative to the ORP. Teaching Assistants and Graduate Assistants within the State University are solely eligible for enrollment in ERS and enrollment for them is optional. The educational employment of residents and interns is very similar to that of Teaching Assistants and Graduate Assistants, and therefore the residents and interns should be offered the same option. Enrollment in ERS requires a contribution from the resident or intern of 3% of his or her salary, thus providing them an option to contribute to a retirement plan at this time in his or her educational employment. Fiscal Impact: Approximately one thousand (1,000) students participate annually in residency and internship programs of the health-related facilities of the State University. The estimated cost to the State University health-related facilities resulting from the participation by these residents and interns in the Optional Retirement Program is approximately $3.5 million dollars annually. Allowing solely for optional participation by the students in the ERS would result in significantly less annual cost, generating a significant savings to SUNY and the state. Legislative History: New Bill Indemnity Protection for Students In the course of students completing their degree requirements, many participate in clinical and other field placements at sites of college affiliates. The University currently obtains liability insurance for these students separate from the state�s general liability. This proposal extends defense and indemnity under the Public Officers Law to students of the State University who are required, as part of course work, to participate in clinical or other field placement programs at sites of affiliates. Justification: There are approximately 10,000 students currently enrolled in clinical or other experiential programs throughout the State. While this is part of their state higher education experience, the University believes that liability coverage for these students should be covered by the state, as these students are working as part of their �public� higher education coursework. Fiscal Impact: The cost of liability insurance for the 10,000 students has escalated from $180,000 in 1994 to over $753,000 in 2004. During this time, there have been only thirteen (13) claims filed against such students for injuries sustained to patients or others during a clinical or experiential program. To date approximately $150,000 has been expended and only two claims remain open, for which a reserve of $135,000 has been established. Based on the foregoing, it is estimated that this proposal will reduce costs to the State University in excess of $750,000. Legislative History: New Bill State University as Lobbyist The State University, an agency of the state government, upholds the utmost integrity and transparency in its operations in promoting itself with the State Legislature, the executive branch and sister state agencies. The definition of the term �lobbyist� for purposes of the State�s Lobbying Act excludes officers, trustees, employees, and other agents of the state and municipalities when such persons are discharging their official duties; however, it does not exclude representatives of public colleges and universities, namely the State (SUNY) and City (CUNY) universities. This proposal would extend the exemption for SUNY and CUNY as it does for other state agencies. Justification: It is anomalous for the state Lobbying Act to exclude state and local entities from the registration and reporting requirements applicable to lobbyists and to include the State University, City University and community colleges. Like state agencies and local governments, the objective of the advocacy efforts of SUNY, CUNY, and the community colleges is to promote development and enactment of our agency budgets and legislation related to our public functions and programs. The proposal does not affect the status of the SUNY, CUNY, and the community colleges with respect to requirements of the Lobbying Act relating to clients and gifts to public officials. For example, if SUNY, CUNY, or a community college retains a private lobbyist to lobby on its behalf, it would be subject to the client reporting requirements set forth in Legislative Law �1- j(a)(2). Likewise, if SUNY, CUNY, or a community college is required to file a semi-annual report as client, the gift prohibition set forth in Legislative Law �1-m would apply. Fiscal Impact: Nominal savings associated with various filing fees. Efficiencies in terms of staff time allocated to record keeping and the preparation and filing of reports. Legislative History: New Bill ENSURING CAMPUS BASED INITIATIVES DASNY Financing of Housing by State University Not-For-Profit Corporations and Associations The State University provides campus housing for approximately 70,000 students. In many cases, campuses are not able to accommodate all their student housing requests. As campuses look to provide more adequate housing opportunities, it is important for them to have options for construction and financing. This proposal authorizes the Dormitory Authority of the State of New York (DASNY) to construct and finance student, faculty and staff housing through campus- related foundations, auxiliary services corporations, alumni associations, and other not-for-profit corporations and associations. Justification: When a campus examines options for the construction and financing of dormitory facilities, the option of using campus-related corporations is excluded from construction and financing through DASNY. If a campus chooses the campus-related corporation option, local Industrial Development Agencies are usually consulted. The University would like to make the services and financing of DASNY available to its campuses as a full service option. Fiscal Impact: No direct fiscal impact to the University System Administration; however, this will permit campus-based projects the opportunity to seek DASNY expertise and participation which could generate a campus-based savings due to lower interest rate bond financing. Legislative History: 2005 � S.5188 (Leibell) Rules; No Assembly Companion Purchase Land Lease State University campuses are continually looking at ways to maximize their revenues through philanthropic and non-state sources. This legislation acknowledges that entrepreneurship and authorizes the lease of portions of the State University campus of Purchase College to provide a continuing care retirement community and faculty-staff housing. Justification: The Purchase College Advancement Corporation, a not-for-profit corporation, is looking to use approximately 55 acres of the Purchase College campus to make improvements for the construction and operation of a retirement community, and faculty and staff housing. There is great local community interest in this project. It is contemplated that in addition to providing affordable retirement housing in this affluent community, the retirement community residents will interact with the College by becoming continuing education students, members of the Neuberger Museum of Art and members of The Performing Arts Center of the College. In addition, they will add an intergenerational component to the life experience of the students at Purchase College. The faculty/staff housing will overcome, in part, the inability of faculty and staff to reside near the College because of the high local real estate costs. This will help greatly in the recruitment and retention of faculty and staff. Fiscal Impact: The University and the State will receive the benefit of new facilities financed wholly through private resources. In addition, SUNY Purchase will provide housing opportunities for faculty and staff which will lead to better efficiencies in recruitment and retention. The surrounding community will be served through the retirement housing, which will provide an opportunity for intergenerational interaction and participation by these residents in campus programs and philanthropy. Legislative History: 2005 � S.5305 (Oppenheimer) Local Government; A.8066 (Bradley) Higher Education Stony Brook Commercial Center As the State University continues to lessen its dependence on state support for the construction of new facilities to serve the needs of students, this proposal would allow the University to enter into a ground lease or contract for the development and operation of student service facilities, in an area generally known as the academic mall, at the State University�s Stony Brook University. Justification: Stony Brook University (SBU) has recognized the need to improve student services in order to capitalize on campus initiatives to create a sense of community and culture for both residential and commuter students enrolled in a diverse array of undergraduate, graduate and professional programs. This need can be met most expeditiously through the development of service, commercial, and retail facilities utilizing private capital investment. The development of the academic mall will result in a new anchor facility (approximately 20,000 square feet) to house a bookstore and other related student services in a central area of the campus. The academic mall on the west campus of SBU is bordered by the Main Library, the Staller Center for the Performing Arts, the Administration Building and the new Student Activities Center. Renovation of this space will combine with the anchor facility to create an optimal site for a campus �village�. The objective is to create a facility to provide a sense of campus community for students on this vast campus. This facility will address recent student survey results and consultant recommendations noting a substantial unmet need for a centralized bookstore, retail, food and related services, including a computer store and lab. It is anticipated that with greater access and a consolidation of services, the combined operation will generate enhanced gross revenues. Fiscal Impact: As no state appropriations or public bond financing will be utilized, the University and the State will receive the benefit of new facilities financed wholly through private resources. SBU may also realize an increase in revenues by the services provided to the campus community. Legislative History: 2005 � S.2152 (Flanagan) Passed; A.5180 (Englebright) Higher Education Clinical Services by the College of Optometry The State University College of Optometry is one of 17 such colleges in the United States. Located in the heart of Manhattan, the facility used to provide patient care for medical assistance recipients, but changes in state rules pertaining to their care have disallowed those services to continue. This legislation would allow Medicaid patients, who are now required to participate in managed care programs, to obtain optometric services at clinics of SUNY Optometry. Justification: Prior to the requirement that Medicaid patients use managed care facilities, SUNY Optometry served over 7,000 Medicaid patients, generating revenue of approximately $1 million annually. These patients also provided a great resource for intern and residency programs. Allowing these patients to again obtain optometric services from SUNY Optometry will provide an outlet for necessary public health services. At the same time, the college will have the experiential services for its students and the subsequent revenue from the providing of the services. Fiscal Impact: SUNY Optometry estimates that more than 7,000 patient visits per year and revenue of approximately $1 million has been lost as a result of Medicaid managed care rules. Advancement of this proposal will ensure that the students have access to a strong patient base for their clinic training, thus increasing the overall clinic revenues and potentially re-generating the lost revenue. Furthermore, since Optometry does not receive funding for graduate medical education or bad debt charity care, access to Medicaid managed care patients is critical to meeting the financial needs of the institution. Legislative History: 2005 � S.4568 Hannon) Social Services; A.3267 (Gottfried) Passed Distance Learning Tuition Differential Online distance learning has become a primary method of access to higher educational pursuits for many traditional and non-traditional students, such as stay-at-home moms, individuals furthering their careers after normal work hours, military personnel, and others. This proposal permits the State University Board of Trustees to authorize presidents of State-operated institutions to set differing tuition rates for non-resident students who are enrolled in State University distance learning courses. Justification: Current state law provides for statutory restrictions at the State University for what is known as differential tuition, charging different tuition rates for various programs or classes. As online distance learning becomes more popular, so does the competition for these students who can be anywhere in the world. There are many institutions that specialize in online distance learning, and while the State University offers online distance learning at most of its colleges, SUNY�s Empire State College (ESC) specializes in that category. ESC enrolls 20% of the State University�s SUNY Learning Network online learning population. The State University non- resident tuition rates are not competitive with other distance learning colleges. This proposal will allow the SUNY Board of Trustees to establish policies to help SUNY campuses compete in the online distance learning national and international arena. Fiscal Impact: This legislation allows the State University to remain competitive in this global market. The University�s main distance learning college, Empire State College, proposes to charge a rate that is approximately 1.3 times the resident rate, or $235. This would provide an immediate revenue increase of approximately $300,000 as the College believes that this competitive tuition rate would enable them to significantly increase enrollment, thus generating even greater revenue. Legislative History: 2005, S.4101 (LaValle) Higher Education; A.8254 (Canestrari) Higher Education similar intent. THE STATE UNIVERSITY OF NEW YORK State University Plaza, Albany, New York 12246