DOCUMENT RESUME HE 031 956 ED 428 622 Task Force to Study the Governance, Coordination, and TITLE Funding of the University System of Maryland. 1998 Interim Report. Maryland State Dept. of Legislative Services, Annapolis. INSTITUTION 1999-01-00 PUB DATE NOTE 253p. Library and Information Services, Office of Policy Analysis, AVAILABLE FROM Department of Legislative Services, 90 State Circle, Annapolis, MD 21401; Tel: 800-735-2258 (Toll Free); e-mail: [email protected] Legal/Legislative/Regulatory Materials (090) -- Reports - PUB TYPE General (140) MF01/PC11 Plus Postage. EDRS PRICE *Administrative Organization; *College Governing Councils; DESCRIPTORS *Educational Finance; *Governance; Governing Boards; Government School Relationship; Higher Education; Institutional Administration; Policy Formation; State Aid; State Departments of Education; State Legislation; State Regulation; *State Universities; Trend Analysis *University of Maryland System IDENTIFIERS ABSTRACT The report was prepared by a task force appointed to examine issues related to the University System of Maryland (USM) ten years after its creation in 1988. The task force focused on key issues raised by stakeholders and higher education experts, including statewide goals and priorities for the USM; duplication and overlap of authority between the Maryland Higher Education Commission and USM; flexibility in management and reporting functions, and funding issues. The report found that institutions in the USM have made significant progress toward goals set in 1988 despite lower than anticipated funding and believes that the legislation remain valid; however, it recommends some modifications and additions. The report is comprised of the following sections: letter of transmittal; a membership roster; executive the summary; creation and charge of the task force; summary of activities of task force; historical perspective of the USM governance structure; funding and enrollment trends at USM; description of USM institutions; status of implementation of 1988 legislation; state financial commitment to higher education; independent consultant reports; findings and recommendations; minority reports; and 10 appendixes, including an organization chart, a time line of Maryland's four-year public institutions, and an organizational chart of postsecondary education in the state. 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Sherry M. Little has been designated to coordinate compliance with the non-discrimination requirements contained in Section 35.107 of the Department ofJustice regulations. Requests for assistance should be directed to Ms. Little at the telephone numbers shown above. ii 4 Task Force to Study the Governance, Coordination, and Funding of the University System of Maryland Admiral Charles R. Larson, USN (Ret), Chairman January 1999 The Honorable Parris N. Glendening Governor of Maryland The Honorable Thomas V. Mike Miller, Jr. President of the Maryland Senate The Honorable Casper R. Taylor, Jr. Speaker of the House of Delegates Gentlemen: On behalf of the Task Force on the Governance, Coordination, and Funding of the University System of Maryland, I respectfully submit our final report. In August of this year, the 23 members of the Task Force were appointed to examine issues The Task Force related to the University System of Maryland ten years after its creation. maintained an ambitious schedule throughout the fall of 1998 to complete the Task Force's work by the January 1999 deadline, as established in Joint Resolutions 4 and 5 of 1998. In an effort to fully understand the complexity of its charge, the Task Force held eight meetings, conducted four regional public hearings, and visited the campuses of the 13 constituent institutions of the University System of Maryland (USM). During the course of its activities, the Task Force heard testimony from the major stakeholders and several experts in higher education. In addition, as required, the Task Force hired the Association of Governing Boards of Colleges and Universities and the Education Commission of the States to complete studies on governance structure and funding, respectively. The Task Force focused on key issues raised by stakeholders and experts in higher education in a number of areas including: statewide goals and priorities for higher education; the governance structure of the University System of Maryland (USM); duplication and overlap of authority between the Maryland Higher Education Commission (MHEC) and USM; flexibility in management and reporting functions; and funding issues. The Task Force has made numerous recommendations in these areas which are summarized in the Executive Summary and discussed in detail in the "Findings and Recommendations" section of the report. Many of the recommendations can be implemented without legislative action. The recommendations which require legislative changes to implement are attached. Ill 90 State Circle Legislative Services Building Annapolis, Maryland 21401-1991 Room 226 (410) 946-5510 FAX (410) 946-5529 TDD (410) 946-5401 FAX (301) 970-5529 (301) 970-5510 TDD (3.01) 970-5401 (..) The Honorable Parris N. Glendening The Honorable Thomas V. Mike Miller, Jr. The Honorable Casper R. Taylor, Jr. January 1999 Page 2 Kopp, and to the I wish to express my appreciation to my vice chair, Delegate Nancy K. visits, and regional public members of the Task Force. Their participation in meetings, campus of public higher hearings was instrumental in making this a meaningful assessment of the future staff of the Department education in Maryland. I also appreciate the hard work and dedication of the of our effort, I believe this of Legislative Services. Although the report is the most obvious product intensive four month process of review will yield benefits now and in the future. for the opportunity. It was a pleasure for me to participate and lead this effort. Thank you Sincerely, 4 *AM.tA.slr-i Charles R. Larson Chairman CRL/RHH/jab Enclosute Members of the Maryland General Assembly cc: 6 iv Legislation Necessary to Implement the Recommendations of the Task Force Amend § 11-105 (h) of the Education Article to clarify that the role of the Maryland Higher 1. Education Commission in the review of the System's operating budget request and capital budget request is in the broad context of the State Plan for higher education. Clarify in that subsection that MHEC does not have the authority to disagree with a budget item approved by the Board of Regents unless that item is clearly inconsistent with the State Plan for higher education. Revise MHEC's authority over mission statements. MHEC approval is no longer required, 2. however, MHEC must review mission statements for consistency with the State Plan and Article). Delete the may reject a statement if it is inconsistent (§ 11-302 of the Education current detailed requirements for mission statements set forth in § 11-303 of the Education Substitute language requiring MHEC, with the assistance of the institutional Article. presidents, periodically to develop a format for mission statements. Revise current program review and approval procedures for USM by: amending § 12-109 3. to grant authority to presidents to establish new programs and abolish existing programs within their institutional mission and existing budget; altering § 11-206 of the Education Article to revise the role of MHEC in the review and approval of new programs for USM; revising § 12-106 of the Education Article to reflect the changes in the role of the USM Board of Regents in the program review and approval process. All of these revisions sunset after 3 years. The Task Force endorsed the concept of establishing USM as a public corporation with 4. greater flexibility than its current status but did not recommend specific powers of the corporation. The Task Force requested that staff develop a draft proposal of policy options in the areas of procurement, personnel, and information management (attached as an appendix to the report). The Task Force recommended several funding initiatives which could be implemented by 5. the Governor through the budget without legislation. However, if the initiatives are to be mandated then legislation would be needed to require minimum funding levels on a per full- time equivalent student (FTES) basis for USM degree granting institutions (except University of Maryland University College), the University of Maryland, College Park, the University of Maryland, Baltimore, and the University of Maryland Baltimore County. The Task Force also recommended that MHEC receive strategic incentive funding to distribute USM to higher education institutions in support of statewide goals and priorities and that the Board of Regents receive incentive funding to encourage mission accomplishment by institutions. Reestablish Private Donation Incentive Program 6. Reestablish College Preparation Intervention Program 7. 7 V Task Force to Study the Governance, Coordination, and Funding of the University System of Maryland 1998 Interim Membership Roster Admiral Charles R. Larson, USN (Ret), Chairman Delegate Nancy K. Kopp, Vice Chairman Mr. Lance W. Billingsley Senator Clarence W. Blount Dr. Alan Cheung Delegate Norman H. Conway Mr. George C. Creel Delegate George Edwards Dr. Patricia S. Florestano Dr. Catherine R. Gira Senator Barbara A. Hoffman Mr. Clifford M. Kendall Senator Gloria Lawlah Senator Thomas Middleton Dr. C. D. Mote, Jr. Senator Robert Neall Lt. General Emmett Paige, Jr., U.S. Army (Ret) Delegate Howard P. Rawlings Delegate Mark K. Shriver Dr. Dolores R. Spikes Mr. Jeffrey R. Springer Dr. Hoke L. Smith Senator Joseph D. Tydings Task Force Staff Rachel Hise Tina Bjarekull Carol Swan Benjamin Birge Claire Rooney Gary Thomas Support Staff Jo Ann Bryan David Warner, Library Resources vii 8 _JkJk Contents Page Letter of Transmittal iii Membership Roster vii Contents ix xiii Executive Summary Creation and Charge of the Task Force 1 Task Force Membership 1 Studies 2 Summary of Activities of the Task Force 3 Summary of Task Force Meetings 3 Summary of Regional Hearings 9 Summary of Site Visits 9 Historical Perspective on the Governance Structure of USM 11 Statewide Commission on Higher Education in Maryland 11 Activities Leading to the 1988 Restructuring of Higher Education 15 Highlights of the 1988 Legislation 17 Changes to the Governance Structure of Higher Education Since 1988 20 Historical Perspective on Funding and Enrollment Trends at USM 23 State General Fund Support for the University System of Maryland 23 Enrollment Trends 24 State General Fund Support Per FTES 25 Tuition and Fee Revenue 25 Education and General Expenditures 26 Capital Funding 27 ix Page Description of USM Constituent Institutions 29 Bowie State University 29 Coppin State College 29 Frostburg State University 30 Salisbury State University 30 Towson University 31 University of Baltimore 31 University of Maryland, Baltimore 32 University of Maryland Baltimore County 33 University of Maryland, College Park 33 University of Maryland Eastern Shore 34 University of Maryland University College 35 University of Maryland Bioteclmology Institute 36 University of Maryland Center for Environmental Science 37 Status of Implementation of 1988 Legislation 39 State's Financial Commitment to Higher Education 69 Summary of Independent Consultant Reports 75 Report of Association of Governing Boards of Universities and Colleges 75 Report of the Education Commission of the States 81 Findings and Recommendations 89 Higher Education Goals 89 University System of Maryland Governance Structure 93 Budget Review, Approval, and Submission 96 Intitutional Mission Statements 97 Academic Program Approval and Elimination 99 Flexibility in Management Functions 102 1 0