Good for New York / Good for SUNY GOOD FOR NEW YORK The Public Higher Education Empowerment and Innovation Act harnesses high-impact, zero-cost solutions that will create jobs, build the foundation for tomorrow's economy and strengthen public higher education - while saving millions of taxpayer dollars. The Act builds on the unprecedented cooperation and energetic partnership of SUNY and CUNY in working with Governor Paterson and the Division of the Budget so as to design a landmark higher education plan to reach each and every community throughout New York State with broad access, high quality and affordability. This is a major step in unleashing the public university sector to achieve the promise of economic growth through top quality public higher education from Community College to Research Center first envisioned for New York decades ago. With the implementation of the Empowerment and Innovation Act, the State University of New York estimates that over the next ten years, its campuses will be able to help create over 10,000 new jobs and invest over $8.5 billion in capital construction which will support over 43,700 direct and 21,800 indirect construction jobs. GOOD FOR SUNY As the State University becomes more responsible for its own finances, its spending on academic pursuits will not only benefit the students that it serves, but also create a larger union workforce (faculty, staff and graduate students) and a better work environment. With fullest integration of academic programs from first year at community college to last year of a professional degree, students will be able to maximize opportunities throughout New York's public higher education systems. This creates a more cost-effective educational environment for both the student as well as for New York taxpayers who support both the State and City Universities and local community colleges. With greater financial independence and streamlined operations, SUNY and CUNY will be poised to develop strong public-private partnerships, new sources of revenue and enhanced research funds. Most important, the Act will provide the financial stability (through multi-year budget plans) and increased opportunities that our students, employees and taxpayers need. At a time when the nation is focused on the cost of health care, increased autonomy will also enhance our Academic Health Centers' abilities to adapt to ever-changing health care delivery methods which are critical to continue their public health care missions. Research and workforce development initiatives will take advantage of the synergies of multi-campus collaborations and partnerships. The number of successful partnerships in place which have focused on nanotechnology, biotechnology and energy will be certain to increase and expand into other key areas of research and job creation. Implementation of a tuition policy under the auspices of the Board of Trustees will provide the financial stability necessary to establish multi-year plans to address campus goals and invest in new faculty hires and academic quality initiatives. Good For Students and Their Families New York State has a history of tuition increases occurring whenever the state suffers a fiscal crisis. The amount of tax dollar support provided to SUNY is reduced and in its place goes student tuition revenue. In 2008, the SUNY Board of Trustees adopted a "Rational Tuition Policy" - as endorsed by the SUNY Student Assembly - that implements a method of modest, annual and predictable tuition increases based on the Higher Education Price Index (HEPI). This concept is expanded upon further in the SUNY/CUNY Empowerment Act with the provision that annual tuition increases never exceed 2.5 times the five year rolling average of HEPI. Perhaps even more significant however is that the Act removes tuition from the political process and places it in the hands of the University where it belongs. Tuition revenue will no longer go through the state's general fund, meaning students won't have to contend with the kind of irregularities they faced last year, when the state took 90% of their tuition increase and used it for purposes other than their education. Now, SUNY will collect tuition dollars, and SUNY's Board of Trustees will be responsible for ensuring a tuition policy that is fair, equitable and responsible. Family budgeting represents a challenge in these tough economic times, and college costs are a significant expense for any student and their family. With modest, predictable tuition increases families can engage in a reasonable planning process without the worry that college costs will spike in huge, random increments. Beyond that, SUNY will provide for enhanced financial aid and scholarship assistance to protect traditional TAP eligible students who would be impacted by a differential or rational tuition increase, preserving access and fundamental affordability. College costs differ greatly from region to region, campus to campus, and degree program to degree program. Having the ability to charge varying tuition rates will provide additional resources to the campuses to build upon existing academic programs with new faculty, develop new programs meeting student demand, and enhance the overall quality of life on the campus. Just as with general tuition increases, SUNY will provide for enhanced financial aid and scholarship assistance to protect traditional TAP eligible students who would be impacted by such an increase, and the SUNY Board of Trustees would be responsible for ensuring fair, equitable and responsible results. The SUNY/CUNY Empowerment act provides campuses with the ability to give students the high quality education they deserve as citizens of the State of New York. We are one of only a handful of states across the nation that do not already have comparable measures in place, and it is clear that our students will be left behind if change does not come. Good For SUNY's Workforce The SUNY/CUNY Empowerment Act is all about growth and opportunity - for our students, our workforce and New York's communities. By allowing SUNY to grow by at least 20,000 students over the next ten years, and unleashing our ability to create new revenue streams and more efficient operations, it is estimated that we can create an additional 2,200 faculty and 7,800 staff in the next decade. This adds up to a total of 10,000 new union workers. Importantly, this job growth will be at all levels. Additional faculty continues to grow direct and indirect employment with new faculty often requiring new lab space, lab assistants, research assistants, clerical support etc. Increased public private partnerships will result in more projects being built (hotels, conference centers, recreational facilities, athletic facilities, business incubators, spin off facilities, testing facilities, labs etc) that not only employ construction workers (indirect employment), but also permanent employees to run and work in the facility. Under this legislation, increased entrepreneurial opportunities will also generate 40,000 new construction jobs - and permanent jobs on campus associated with new programs and facilities. Of course, the SUNY/CUNY Empowerment Act maintains the same strong protections that prevent outsourcing of any position currently held by state employees. Project labor agreements (PLAs) will be evaluated for local campus-initiated construction projects. The current fiscal crisis makes it unrealistic to expect significant new public investments in higher education. In fact, SUNY has endured nearly half a billion dollars in state funding reduction over the past two years. This legislation helps protect SUNY and its workforce from the winds of economic change that have put our finances at risk year after year. Currently, SUNY's student tuition, fees and other campus revenues are subject to approval by the Legislature, with no assurance that those funds will stay with SUNY. SUNY/CUNY Empowerment Act will shift these revenues off-budget to ensure that those funds will be used by the campus that generated them. Good For Community Colleges Community Colleges play a vital role in the State University system and the communities they serve across the state. During the economic slowdown, New Yorkers are turning to community colleges in greater numbers than ever before to obtain a higher education, upgrade their skills or learn new skills. The Public Higher Education Innovation and Empowerment Act will enable SUNY's community colleges to better serve their students and the communities they serve. With community college FTE enrollment at an all time high (increasing an estimated 37% over the last ten years), there is an urgent and continuing need for greater transfer capacity across the SUNY system. Over half of community college graduates look to transfer to a four year school. When the SUNY/CUNY Empowerment Act is implemented, it is estimated that SUNY's university centers will be able to accept over 20,000 new students above current planned growth. This will have an immediate, positive impact on community college students who seek to continue with their higher education studies. Community Colleges should receive greater support for their great work in creating academic initiatives that impact New York's workforce and education pipeline. The SUNY/CUNY Empowerment Act allows SUNY to become more responsible for its own finances and with this greater control SUNY, as a system, can better support these important ventures. While community colleges have the ability to set their own tuition, four year schools do not. The legislation provides the University with the ability to implement a rational, predictable tuition policy for four year schools. This in turn will assist with the development of a tuition policy at all of SUNY's 64 campuses. In addition, the SUNY/CUNY Empowerment Act expands the options available to finance and construct capital facilities. When enacted, not-for-profit affiliates of a community college may finance and construct capital facilities through DASNY, and each community college may finance and construct dormitories, for students, faculty and staff, directly through DASNY. By taking advantage of this lower rate of financing, many community colleges will have the opportunity to pursue residence halls and other entrepreneurial ventures when before it may not have been feasible financially. WHAT'S IN THE ACT... Tuition Policy and Financing * Allows for special tuition rates by campus and program; * SUNY Board must adopt a comprehensive tuition policy that is fair, equitable and responsible and that includes guidelines for across the board tuition adjustments, special tuition and enrollment planning; * SUNY Board must adopt out of state enrollment maximum percentage limitations; * Invests all tuition, fees and other self-generated revenues in SUNY campuses, students and faculty; and * Repeals Education Law Sec 355(8-b), enacted in 2009. Land Use, Public-Private Partnerships and Construction Fund * Authorizes the SUNY Board to accept gifts of real property; * Authorizes SUNY to undertake land leases without special legislation for projects not in conflict with campus missions, subject to approval by a newly chartered State University Asset Maximization Review Board; * Authorizes SUNY to enter joint ventures and public private partnerships, subject to approval by the State University Asset Maximization Review Board; * Requires land leases include: MWBE, prevailing wage, union worker rights protection, reverter clauses, and project labor agreements; * Allows the State University Construction Fund to use expanded delivery methods, including design/build and construction manager at risk; * Eliminates burdensome and duplicative State Comptroller/Attorney General pre-approval of Construction Fund contracts; * Waives Construction Fund performance bonds for contracts less than $250,000; * Authorizes DASNY (Dormitory Authority) to finance/construct facilities on behalf of State-operated and community college affiliates; and * Authorizes DASNY to finance/construct community college dormitories directly on behalf of community colleges. Procurement & Operational Efficiencies * Eliminates burdensome and duplicative State Comptroller/Attorney General pre-approval of SUNY,CUNY and their Construction Funds contracts; * Broadens SUNY access to the Office of General Services centralized contracts for goods and services; and * Streamlines approval for residential halls built by SUNY alumni associations. * Provides protection from liability for students participating in clinical internships related to their field of study; * Provides an Employee Retirement System (ERS) option for medical, dental and optometric interns; and * Aligns SUNY and CUNY to the eight year master planning process applicable to the independent colleges and universities in NYS. Hospital Reforms * Provisions relating to nurse wage rates and pay differentials; * Facilitates hospitals participating in joint ventures and managed care to provide health care related services; * Eliminates burdensome and duplicative State Comptroller/Attorney General pre-approval of SUNY hospital contracts, including those involving real property transactions; and * Opens access to Optometric clinical services for Medicaid recipients at SUNY Optometry.