July 21, 2015
DREAMERS, BUDGETS AND GUNS:
MESSAGING ON CHALLENGING
STATE LEGISLATIVE ISSUES
Teri Lucie Thompson
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6.7 Million
people are estimated to be living in Arizona
$9.1 Billion
annual operating budget to fund the
entire state
Ranked 48th
in the United States for per-pupil
spending
Background State of Arizona
The Grand Canyon State
• Consistently been more Republican on state and national levels since 1952
• Douglas A. Ducey (R) recently sworn in as 23rd Governor of Arizona
• One of the least formally educated Legislatures; almost 1/3 of its 90 members do not hold college degrees
• #1 Alternative Energy Industry Leader
• Home to 1,200+ aerospace and defense companies; ranking 5th in the U.S. for A&D employment
• Home to one of the fastest growing bioscience industries in the nation
• 65% of U.S. copper production is from Arizona
State of Arizona Impact
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State Budget Crisis
• State appropriations for public universities have declined by $505 million since 2008
• University net tuition and fee revenues have increased significantly over the last 8 years
• Revenue growth has slowed considerably due to decrease in state tax collections
• Nearly 2/3 of state budget is protected
• $1.6 billion K-12 lawsuit facing the state
$8.3 Billion
estimated annual economic impact on the State of Arizona
$580 Million
estimated research investment brought
in by the UA
$2.1 Billion
operating budget of the University of Arizona in 2015
Situation Declining State Appropriations
University of Arizona Impact
State General Fund
Net Tuition & Fees 34,752
43,358
29,000
31,000
33,000
35,000
37,000
39,000
41,000
43,000
45,000
-
200
400
600
800
1,000
1,200
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Est. FY16 Proj.
Stu
den
t FT
E
Mill
ion
s
Financial Aid Paid from Tuition
Situation Declining State Appropriations and Increased Tuition
Tuition and State General Fund Allocation
4
Student FTE
K-12 Education
Medicaid
Corrections
14%
11%
8%
41% 6%
5%
4%
11%
Universities
Health Services
Economic Security
Child Services
Other
$9.3 BILLION BUDGET
Voter-Protected
Politically-Protected (Recent State Investment)
Situation Small Part of Budget with Many Fixed Obligations
5
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Governor’s Recommendation
Final Approved Budget
Legislature’s Recommendation
Arizona Governor Doug Ducey recommended a state budget that reduced university funding coupled with reduced administrative burdens and statutory changes:
• Total reductions: $75 million
• Funding reductions based on a per-pupil basis
• Introduce legislation that would improve university operations
The State Legislature recommended a state budget dramatically reducing university funding:
• Total reductions: $105 million
• Funding reductions based on a per-pupil basis
• No reductions in administrative burdens or outdated statutory language
The Governor ultimately signed a budget reducing university funding based on a per-pupil basis and additional cuts:
• Total reductions: $99 million
• Funding reductions based on a per-pupil basis
• No reductions in administrative burdens or outdated statutory language
Situation Milestones–Higher Education Budget
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Situation Backstory
Ducey Signs $9.1B Arizona Budget Plan That Cuts Spending “We’re going to index the income tax to inflation,” Ducey said ahead
of signing a new $9.1 billion spending plan which includes close to $500 million in cuts to existing programs. While the overall amount of the budget
remains level, it adds funding for more prison beds even as it takes $99 million from the universities.
—Arizona Capitol Times
March 13, 2015
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Communications What Worked Well—Press Statements
MEDIA STATEMENT–Post Governor’s Budget Announcement
Jan. 16, 2015
University of Arizona Statement on Governor’s Budget Proposal The following statement was issued today by University of Arizona President Ann Weaver Hart in response to the budget proposal released by Gov. Doug Ducey.
Governor Ducey has a difficult job before him. Given the slow pace of the economic recovery in Arizona and increased needs, Arizona faces more years of financial constraints. The University of Arizona is part of the solution. We are educating our students for the next generation of jobs, some of which do not exist today, and our research is helping to build a varied and vital economy for Arizona.
We will be taking the next several days to determine what we would have to do to meet the governor’s budget and what we would recommend. Whatever we do we will focus on decisions that advance the University of Arizona’s core mission and qualities to maximize the benefit to the state of Arizona. We will reduce peripheral activities and protect our core, paying particular attention to academic quality and student services. We will move with even greater energy to develop partnerships like the pending Banner Health relationship, more activities under the auspices of Tech Launch Arizona, more business and industry partnerships, and increased philanthropy.
These tough decisions will not be easy, but it is not easy for anyone. We all understand and appreciate that these tough decisions cannot be without consequences. ALL Arizonans will need to have serious discussions about what the long-term structural solutions look like. This will alter our course and reduce the field of liberty in which we make decisions about the future structure and operations of the University of Arizona. In short, we will be reshaping the future for outcomes — not just expenditures — as we will not conduct business as usual.
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March 7, 2015
President’s Response to Final Budget
"I am deeply disappointed with the size of the cuts to higher education in the budget just passed by the Arizona Legislature. All of us at the UA believe universities are a major economic driver for our state and are critical to our future. The innovations and human talent generated by our great universities have shaped and will continue to shape the solutions to grand challenges faced by all of us. These cuts will have devastating effects on the University of Arizona, but we will continue to strive for excellence and serve the students who are at the heart of that future.
"While the reductions in state support will require tremendous sacrifice and change, we appreciate the hard work of our elected officials as well as the tremendous support from our alumni and the business community and hope that we can work together on a long-term plan for stable funding that includes a strong role for higher education in Arizona."
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RECOGNITION OF STATE
SITUATION
SPIRIT OF PARTNERSHIP
SPIRIT OF PARTNERSHIP
HOW WE SPEAK TO MULTIPLE AUDIENCES
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• Red and Blue Day
• Delivered a letter to the Governor’s Office urging the Governor to stand against additional budget cuts
• Wildcat Wednesday, a series of weekly alumni-legislator meetings at the Capitol (led by Government Relations staff)
• Over 30 individual Alumni meetings were held with members in the Legislature and Governor’s Office
• 8 advocacy days at the State Capitol
Communications What Worked Well—Alumni Advocacy
RECOGNITION OF CHALLENGES
DISPPROPORTIONATE CUT TO THE UA
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Communications What Worked Well—Alumni Briefing Cards
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Communications What Worked Well—Alumni Briefing Cards: Protocol Tips
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Communications What Worked Well— The UA Spotlight E-Newsletter
13
Communications What Worked Well— Internal Communications: Legislative Update
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www.arizona.edu/impact-map
Communications What Worked Well— The UA Impact Map
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Communications What Worked Well— UA Impact Cards
Legislative District Impact Card County Impact Card
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Outcome FY15 Legislative Session
University of Arizona Total Reductions
FY16 Enacted Budget
$28.4 MILLION
SCARY REALITY: A $28.4 MILLION LOSS IS CONSIDERED A WIN!