Florida State University President Eric Barron's presentation to Florida Governor Rick Scott on the State Universities of Academic & Research Excellence and National Preeminence Act.

1. State Universities of Academic
and Research Excellence and
National Preeminence Act
Presentation to
Governor Rick Scott
April 12, 2012
THE FLORIDA STATE UNIVERSITY

2. I. Our Commitment to Florida’s Economic
Development
 Corporations are keenly interested in a skilled
workforce and cutting-edge research
 Highly ranked universities attract top faculty and
students
The top 100 research universities attract more than
$40B in corporate and federal research, the remaining
550 universities garner only about $10B
Top tier research universities are major economic
engines; students are more competitive in the market
for high-paying jobs

3. I. Our Commitment to Florida’s Economic
Development
 Six years of declining state support have made
Florida universities much more efficient, but we are
losing ground in our ability to drive research,
promote economic development, serve students
 FSU:
Faculty #’s have dropped by 50 each of the last 4
years; more than 300 total; 1/3 of Assistant Profs
Nearly 80 STEM faculty have left; only 20 re-hired
because of budget constraints
13 Business faculty have left since 2010
including eminent scholars (for higher salaries)

4. I. Our Commitment to Florida’s Economic
Development
 Our highest priorities are focused on Florida’s
economic development objectives and jobs for
students
We are ready, if we have the opportunity to invest
FSU:
Entrepreneurial University
STEM excellence in energy and materials
Comprehensive focus on successful longevity
Critical needs for timely graduation
National Academy members
Educational partnership to recruit corporations

5. II. Florida’s Universities do not reflect
market forces

6. II. Florida’s Universities do not reflect
market forces
It is good business to be priced below the market, but not to the
point of being at such a distinct competitive disadvantage that
you can’t deliver quality
Key factor: STEM degrees are considerably more expensive
than other degrees
Tuition and Fees:
FL Research Universities: $5,583 – 5,825 (the lowest)
Highest Public Research: $16,132
Average Public Research: $9,500
Average of all publics: $8,244

7. II. Florida’s Universities do not reflect
market forces
Tuition and Fees are the same regardless of mission or rank
19 97 100 NR

8. II. Florida’s Universities do not reflect
market forces
• Florida provides many choices for higher education, including
community colleges, colleges, and universities
• The price difference ranges from about $3000 to $5900 –
remarkably inexpensive and a narrow range
• But, consider the student loan default rate:
• National average: 8.8%
• Florida average: 10.5%
• FSU: 3.4%
• Top-ranked programs have higher graduation rates, a positive
impact on job potential; lower default rates – all of these factors
are significant market forces

9. III. The Preeminence Bill Introduces a
New Standard of Accountability
• Many statistics, but accountable only on enrollment
target
• Bill based on 14 national standards of excellence
• Serve state needs – STEM, efficiency, quality
• Metrics incentivize universities to reach preeminent
status rather than act as an entitlement
• For the first time, Universities that meet the standard
must describe how the proposed tuition increases will be
utilized to benefit students and the State
• Proposals for growth, economic development, and
student advancement will be a public discussion for the
first time
• Framework for additional metrics

10. IV. Tuition is Controlled and Accessibility
is not Threatened
• Increases must be approved by Trustees and Governors
• If increase occurs too quickly, market will respond
• Strong commitment to financial aid – for every economic
class, expected family contribution + scholarships
exceeds tuition and fees by more than $2000
• Dedicate a portion of every tuition increase to financial
aid

12. Summary
• We are committed to economic development and jobs,
and eager to invest in Florida
• Market forces are being suppressed; expect negative
consequences
• A new level of accountability is being introduced
• We remain committed to being highly accessible

13. FSU FUNDING: MAJOR IMPACT

14. FSU’s National US News Ranking Among Public
Universities Greatly Outstrips Its Financial Ranking