Good morning, Chairman Canestrari,
members of the Assembly and legislative staff. It is a privilege to
come before you today to comment on the impact of the 2006-2007 State Budget on the State University System.
Before I begin, let me congratulate Majority Leader Canestrari upon his appointment. This is
well-deserved recognition. My colleagues and I at the State University look forward
to working with you in your new and expanded role.
On behalf of the entire University, I would like to thank Speaker Silver,
Majority Leader Bruno and the members of both the Assembly and Senate and your
hard working staffs for this investment in the State University. Let me
salute Governor Spitzer for the positive words he said about the State University
throughout his campaign and most recently in his State of the State
address. SUNY is one of the state’s largest employers and will be a
leader in NYS’s innovation economy.
Your investment in direct state support and much-needed capital support
is helping to provide the University with the foundation to take a good public
University and make it great while maintaining our historic mission of access
With these goals in mind, I want to outline where the University stands
today, and where, with your continued support, we envision moving in the
Facts and Figures about SUNY
The State University’s
enrollment is at a record high of over 418,000 students making SUNY the
largest, comprehensive system of public higher education in the country.
Over 80,000 minority students are now enrolled, accounting for almost 20
percent of the student population. The academic preparation of our
students continues to improve each year. Our market share of college-bound
New York State high
school graduates continues to rise and is now over 45%. On average, each
student who earns a baccalaureate degree will earn nearly $1 million more over
his or her lifetime than a high school graduate.
We are also focusing on growing other revenue sources. SUNY has
made great strides in raising non-state revenues, an absolute necessity.
Sponsored research at the University exceeds $895 million supporting some
10,000 research projects and resulting in over 18,000 additional jobs statewide.
Revenue from royalties is over $13.5 million. Our share of federal
targeted funding has increased and in the aggregate totals over $102 million.
As a result, the State University is
responsible for creating real jobs in NY. According to the National
Science Foundation, for every $1M in research awards generated by SUNY, 29 jobs
are created in our state.
Philanthropy is another key component of SUNY external funding
sources. In the past five years, SUNY has raised
over $1.38 billion and will surpass our goal of $3 billion in giving to the
University by 2012. These funds help guarantee access and improved
quality for our students.
2006-07 State Budget
Last year I began a five-year budget planning process with SUNY’s 64 campus presidents. The effort coincides
with SUNY’s nationally recognized Mission Review II
process for institutional strategic planning, including the establishment of
quantifiable goals to be achieved during a five-year period. SUNY’s budget planning has enabled the University to
develop a strategy for achieving our academic goals and for identifying and
meeting our fiscal needs. As a result, SUNY has provided the Executive
and Legislature with a budget that is grounded in real needs targeted to the
achievement of coherent goals that are system-wide. Each goal involves
Last year, using the SUNY Plan, the State University requested
a budget that reflected realistic needs of its campuses. We requested an
additional $195 million in funding for the state operated campuses; more than
75 percent of those dollars were necessary to cover mandatory base-level costs,
unfunded enrollment growth, and improved retention. A key part of this
funding enabled campuses to hire more full time faculty. The remaining
amount was targeted to economic development and performance initiatives that
will have an extraordinary impact on New York’s
Our 2006-07 allocation is categorized as follows:
$59.7 M – State support to replace the proposed tuition $500 increase
$22.1M – Additional mandatory and base level costs
$17.5 M – Enrollment funding and full-time faculty at state-operated
$ 2.8 M – High needs programs at state operated and community colleges
$ 9.3 M – Community College Base Aid increase of $75 per FTE in addition
to the $100 included in the Executive Budget
$ 1.0 M – Community College Contract Course Training
Mandatory - Base Level Costs
The State University is
pleased to report that, as a result of the $59.7 million appropriation, no
tuition increase was necessary at the State University.
This amount, along with the $22.1 million, allowed SUNY to cover fully its
collective bargaining contractual agreements, fringe benefit costs, and general
inflation in non personal services.
As you know, the State University is
charged with providing “educational services of the highest quality, with the
broadest possible access, fully representative of all segments of population in
a complete range of academic, professional and vocational post-secondary
programs…” SUNY is not funded on a per capita basis, and therefore
enrollment funding is needed to accommodate this increase in the number of
students: additional students require increased expenditures for faculty and
In State FY 2006-07, the State University received
approximately $17.5 million for additional full-time faculty and academic
programming to support our current and prospective students. Our campuses
have begun the process of hiring new full-time faculty, and we are pleased that
over 200 new full-time faculty have joined the SUNY ranks this academic
year. Recruitment continues, and we anticipate this number will continue
to grow as the academic year unfolds. Our goal is to build our full-time
faculty proportion from its current 62% back to approximately 72 percent where
it was a decade ago. The recovery of appropriate levels of full-time
faculty strength will take several years and additional new investment .In
addition, SUNY’s enrollment in the current academic
year of over 418,000 is more than 4,000 students above last year’s
totals. To support expected further increases in enrollment, the
University will require additional funding this upcoming fiscal year.
Empire Innovation Program
The State University used $6
million to establish a new initiative called the Empire Innovation
Program. This program is a results-oriented plan for boosting economic
development across New York State while also
significantly enhancing the University’s doctoral sector, the flagships of the
SUNY system. With this funding, SUNY campuses have hired or are
recruiting some 33 new faculty researchers.
When fully implemented over the next two years, this program will add 200
new research faculty who are extraordinarily promising researchers. Many
will be hired in clusters focused on areas in which the University is already
demonstrating national and international strength, including our Centers of
Excellence in nanotechnology, bioinformatics and life sciences, wireless
technology and small systems packaging. By 2011, it is expected these
additional faculty will win nearly $300 million in new, additional federal and
private research and development grants annually, resulting in over $1 billion
of growth in New York State’s
economy. We look forward to continuing this crucially important program
with an additional $19 million appropriation in the 2007-08 budget.
Examples of such faculty include:
- Dr. Hao Wang at Binghamton University’s
Small Scale Systems Integration and Packaging Center of Excellence.
Dr. Wang was recruited from the Michigan Technological University; is
a graduate of the University of Pennsylvania and
holds a Career Award from the National Science Foundation and over $4
million in NSF grants. He already has a company established at the
Binghamton University Incubator.
Dr. Lorna Role has been recruited from the Ivy League to head the Stony
Brook program in neurosciences and behavior. Dr. Role received her Ph.D.
from Harvard University, and
holds numerous grants and awards. Her research focuses on central
cholinergic systems that have been implicated in disorders of memory, mood and
motivation, and her work has implications for studies of schizophrenia,
depression and Alzheimer’s dementia.
This type of recruitment is occurring across the University system’s
doctoral campuses. Funding was distributed according to the legislatively
prescribed formula based on federal sponsored research. We respectfully
suggest that, as Empire Innovation Program funding is continued, we look at
changing that distribution formula to allow the University some discretion to
invest in projects that are the most competitive and promise the largest return
on investment across the state.
Our researchers, instead of averaging the anticipated $300,000 in
external grant funding, are averaging over $452,000…so if this trend continues,
the out-year economic impact of the Empire Innovation Program could be even greater
High Needs Programs
The University received $4.8 million to increase the course sections and
faculty in high need areas, such as engineering, information technology,
nursing and allied health. This funding was allocated to both
state-operated campuses and community colleges. SUNY is implementing the
State-operated campuses - $3M
Engineering and information technology: 200 new FTEs and 14 faculty;
Nursing and Allied Health: 450 – 550 FTE and 29 faculty.
Community Colleges - $1.8M
Supporting 24,000 FTE in Nursing, Allied
Health, Engineering, and Information Technology.
It should be noted that New York State continues
to experience significant shortages in nursing and allied health related
professions. Continued support and expansion of these programs will
enable SUNY to prepare students in these areas but also generate the much
needed faculty to ensure the viability of these programs.
Community College Funding
The University’s Community Colleges were also the recipient of much
needed funding in the 2006-07 state budget. The
budget added $18.5 million for base aid per full time equivalent student. This
was done in two component parts: (1) the Executive Budget proposed a $100
increase; and (2) the Legislature added an additional $75 bringing the base aid
increase to $175 per FTE. While we are grateful for this support, the
University was seeking a $250 total increase to bring the state’s community
college funding share of 1/3 to a reality.
Community colleges also received an additional $1 million for meeting
today’s workforce needs in the areas of economic development and public health
was also addressed in the Executive Budget.
Capital Facilities Funding
As you may know, the State University has over
94 million square feet of space, a physical infrastructure equivalent to a
small city. This space supports our 418,000 students and 81,000 faculty
and staff in nearly 2,700 buildings across the state on our 64 campuses.
Since 2003, the state has provided the University with over $4.2 billion
in support for improving the academic, hospital and residential facilities
throughout the SUNY system. We currently have 237 projects in the design phase,
and 421 projects under construction for a total of $1.77 billion in active
educational facility and hospital capital projects.
The 2006-07 state budget specifically provided
$1.2 billion in capital facilities projects.
· $486.2 million
for state-operated campuses to renovate and construct educational facilities,
million for community college projects,
million for residence hall projects,
million in campus related economic development projects such as the University
at Albany nanotech ventures, Buffalo State College Technology Building, and
Cornell University’s Veterinary Diagnostic Lab.
These capital projects are helping update our critical academic
facilities while also providing productive construction employment in every
part of the Empire State.
We look forward to a continued investment in the University’s capital
In conclusion, higher education is the key to the state’s future economic
development and betterment of its citizenry. The state’s investment in
higher education is returned multiple times through a better educated
citizenry, direct and indirect contributions to the local and state economy,
and a fully employed workforce. You will hear additional specific inputs
from several of our outstanding Presidents later in this hearing. All of
SUNY looks forward to working with our new Governor and the Legislature to
ensure a bright future of higher education in New York State.
Thank you for this opportunity. I would be pleased to answer any
questions you may have.