Rep. Michael Dembrow

Changes to Oregon’s Higher Education Governance

August 2, 2013 CSG-West

2010

• Oregon University System seeks to change its status o From a state agency

o To a public university system with its own budget and rule-making

o Still governed by the State Board of Higher Education

• University of Oregon seeks to leave the state system o Become a public corporation as Oregon Health Sciences University had

done in 1995

o Governed by its own board

o With its long-term funding secured through bonding and philanthropy.

o This proposal generates great controversy and concern about effects on the remaining universities.

2010 Legislative Task Force on Higher Education Governance

• Worked with WICHE and NCHEMS.

• Question: Which governance structure will have best chance of getting us to 40/40/20?

• Advised that Oregon’s real problem was lack of capacity to do true statewide strategic planning and accountability for higher education.

• And a lack of ongoing attention from the Legislature.

Governance in 2010

• 7 Universities governed and coordinated by State Board of Higher Education

• 17 CCs governed by their locally-elected boards, with state funding and program approval through the State Board of Education (K-14).

• Oregon Student Access Commission (OSAC) responsible for student Aid.

• Degree-Granting For-Profits regulated by OSAC. • Certificate-Granting Career Colleges regulated by State

Board of Education. • No vehicle for coordination with Independent colleges

and universities.

Pre-2011

Legislature/Governor

SBHE OSAC SBE

EOU OIT SOU

UO OSU PSU

WOU

STUDENTS

CCC

LBCC OCCC

CCC KCC

COCC UCC

RCC

CGCC

TVCC

BMCC

TBCC

LCC

CCC

SOCC PCC MHCC

Governance E.g. hire/fire executive

Advice + coordination

State funding allocation, program approval, state rules, etc.

Institution

Board/Council

Agency

ODA

CAREER COLLEGES

2010 Task Force Recommendations

• Legislation (SB 242) that would

o Make OUS an independent public university system AND

o Create a new Higher Education Coordinating Commission (HECC)

• No change for University of Oregon at this time.

2011 Session

• The Political landscape had changed: o Governor Kitzhaber returned to office with an aggressive P-20

education agenda, including the creation of the Oregon Education Investment Board (OEIB); a new Chief Education Officer; himself as Superintendant of Public Instruction.

o The Oregon House of Representatives, tied at 30-30, decide to follow a shared-governance model.

o House Subcommittee (then Committee) on Higher Education created.

• SB 272 passes, but the ongoing budget crisis (and the creation of the OEIB) means no dedicated funding for the HECC.

• Office of Degree Authorization moved to the HECC, eventually subsuming authority over the for-profit career colleges as well.

Current Law

Legislature/Governor

SBHE OSAC SBE

EOU OIT SOU

UO OSU PSU

WOU

STUDENTS

CCC

LBCC OCCC

CCC KCC

COCC UCC

RCC

CGCC

TVCC

BMCC

TBCC

LCC

CCC

SOCC PCC MHCC

HECC

Governance E.g. hire/fire executive

Advice + coordination

State funding allocation, program approval, state rules, etc.

Institution

Board/Council

Agency

ODA

2012 Session

• The University of Oregon increases its effort to separate, fueled by the State Board of Higher Education decision to fire the UO President in late 2011.

• Portland State University also seeks its own governing board. Oregon State University opposed.

• Legislature creates Joint Special Committee on Higher Education Governance with 2 goals: o Recommend governance model that would include institutional

boards while maintaining advantages of a coordinated system. o Reduce the number of statewide boards.

• Legislature expands HECC mission (calling out coordination with Independent colleges and universities and Workforce Development), and clarifies relationship with the new P-20 board and Chief Education Officer, but still not able to add funding.

Recommendations of 2012 Special Joint Committee

• Committee found that Oregon COULD benefit from universities having institutional boards that

(a) Provide transparency, public accountability and support for the university. (b) Are close to and closely focused on the individual university. (c) Do not negatively impact public universities that do not have governing

boards. (d) Lead to greater access and affordability for Oregon residents and do not

disadvantage Oregon students relative to out-of-state students. (e) Act in the best interests of both the university and the State of Oregon as a

whole. (f) Promote the academic success of students in support of the mission of all

education beyond high school as described in ORS 351.009.

.

• The Committee also found that o Having an institutional board may or may not lead to greater levels of

philanthropy. o Even with universities with governing boards, there are economy-of-

scale benefits to having a coordinated university system, and shared services may continue to be shared among universities.

o Legal title to all real property, whether acquired before or after the creation of a governing board, through state funding, revenue bonds or philanthropy, shall be taken and held in the name of the State of Oregon, acting by and through the governing board.

o The Legislative Assembly has a responsibility to monitor the success of governing boards at fulfilling their missions, their compacts and the above principles.

• Based on these principles, the Committee created the framework of a bill that

would become SB 270 (2013). • Drafting of the larger governance bill, HB 3120 (2013) would be led by

Governor and House Committee on Higher Education and Workforce Development.

Institutional Boards (SB 270)

• Hitting the “sweet spot” between local control and a coordinated, articulated system.

• 11-15 member Boards of Trustees o Governor appointed, Senate confirmed

o For UO, OSU, and PSU

o Fully operational July 1, 2014

o Each includes one student, one faculty, one staff (voting rights determined by Governor at selection)

o A path to institutional boards for technical/regional universities if they so choose

• Board Authority: o Hire/Fire President o Approval of university policies o May increase undergraduate tuition up to 5% (further

increases must be approved by HECC) o May issue revenue bonds with participation of Treasury o Approve budget requests to the HECC

• Limitations on Board Authority o All legislative budget requests must go through the HECC. o New program and program location approved by HECC. o Annual review by HECC with results reported to

Legislature. o Limit on changes to administrative shared services prior to

July 1, 2015.

“Governance Committee 2.0”

• Will recommend new shared services enterprise. o Based on consensus model developed by 7 presidents o A range of opt-ins and opt-outs o Goal of minimizing negative effects if an institution opts out of a

particular shared service o Some services may be opened up to include community colleges and

independents.

• Will recommend new structure for academic and student service coordination. o New “Office of University Services” to replace current Chancellor’s

Office? o Under the HECC

• Will consider future of “consortium board” for technical/regionals. • Final recommendations due to the Legislature end of 2014.

Statewide Vision for Higher Education (HB 3120)

• HECC is now the state board for universities and CCs with the following authorities: o State budget requests o Distribution strategies and formulae o University undergraduate tuition increases above 5% o Adjudicate disputes between universities and student associations over student incidental

fees. o Approval of new programs, including program location, and significant changes in institutional

mission. o Report to Legislature annually on effectiveness of institutional boards at meeting stated goals. o Advises OEIB on higher ed strategic planning and accountability (achievement compacts). o Statewide data collection. o Student success initiatives, including dual credit, transfer, and other articulation. o Oregon opportunity grant and other student aid. o Rule-setting for OSAC and CCWD.

• Other Authorities: • Oversight of the Office of Degree Authorization

• Including degree authorization of all independent post-secondary institutions

• Licensing of private career schools

• Provides advice, goal-setting, and coordination for all of post-secondary education.

• Governance remains at local level

• Legislature funded the budget request for HECC executive director and other staff.

Legislature/Governor

STUDENTS

CCC

LBCC OCCC

CCC KCC

COCC UCC

RCC

CGCC

TVCC

BMCC

TBCC

LCC

CCC

SOCC PCC MHCC

HECC

Governance E.g. hire/fire executive

Advice + coordination

State funding allocation, program approval, state rules, etc.

Institution

Board/Council

Agency

New Higher Ed Structure

OSAC CCWD

WOU EOU OIT SOU

SBHE

UO OSU PSU

ODA

For more information, please email me at rep.michaeldembrow@state.or.us.