On October 23rd, 2014, we updated our
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DRAFT TALKING POINTS TO GUIDE OCTOBER 17 TELECONFERENCE DISCUSSIONSubmitted by Frank Fuller for distribution.COMMON GOALSIn my opinion, we are in agreement on foundational points; The path seems to be the issue….ECONOMIC LANDCAPEFor our discussion Wednesday, my concerns that frame the proposed path I am suggestingare:”Alarmingly high” risk of new global recession (WSJ,1092012), record high student debtand defaults,50% underunemployed Bachelor graduates since 2008,Florida lagging other statesin economic recovery(DEO,972012) and Peter Thiel „s “University collapse” theory.Also, I agree with Rep Proctors assessment of Florida‟s budget priorities.For these reasons, I suggest our path to a common goal be linked to Florida economic landscapein terms of tuition.DIFFERENTIATED TUITIONUsing the basic language reported under the “Accountability “segment of our Friday draft, thefollowing are points of clarity knowing much more detail will need to be engrossed once weagree on concept:The differentiated tuition model will be built on eminent(pick another name,6 digits) degrees(bachelors, masters)as outlined in Fridays draft-50% BOG50% of indicator-70 % employmentHSHWHD.Step 1.-Until a university reaches a 25% of their degrees qualifying as eminent degreesthreshold, all annual tuition increases for any degree program will be limited to annual CPI-U.The eminent degree STATE funding formula during this time frame would be (15%-CPIU x 2)applied as bonus funding to the university.Step 2.-At the 25% threshold, a university can assign an annual differentiated tuition by degreeup to 2.5 x the CPI-U with eminent degrees remaining 1 full CPI-U below maximumdifferentiated tuition assigned up to 2.5 x CPI-U maximum. Eminent degrees have to bemaintained as 25% of total though degrees may vary each year.Step 3.-Once a university is designated an eminent Florida university by BOG ( number ofeminent degrees) based on BOG established criteria, the university can charge differentiatedtuition up to 6 X the CPI-U annually with eminent degree programs remaining 2 full CPI-Ubelow highest tuition rate assigned.
We did not capitalize the word eminent in this text in the hope that another name would surface(different name later?)…..Once the 25% threshold is reached by a university, the statecontribution moves to the Performance Funding Plan addressed in the “Accountability” segmentdraft with no eminent degree bonus funding.If a university opts out or does not participate in the eminent degree program; maximum tuitionincreases are limited to CPI-U annually on any (6 digit) degree program.The program would be revisited and or revised in 4 years based on Florida‟s economiclandscape, labor market demands, university construction and maintenance and other indicators .As another thought, I agree universities may not price themselves out of existence; but, pricepoints may drive some universities operating under an expansionmultiple site model to loweradmission standards to “ “ feed the beast” as cost reduces enrollment from the targetedpopulation or other non Florida options compete for Florida talent.If the quality of an incoming class or graduation rate during the next 4 years drops two years in arow or 2 out of 3 years, the university would hold tuition increases to CPI-U for all degreesregardless of the schools eminent degree status until the quality of the incoming class and orgraduation rate improves as determined by BOG through annual university reviews.