The University of Maine System, like the state of Maine, is facing enormous challenges, which, if not addressed, represent a threat to our long-term ability to deliver quality, affordable education to Maine residents. Since the recession of the early 1990s, tuition and related charges for public higher education have risen considerably — largely to offset the steady decline in the percentage of state General Fund revenues invested in public universities and colleges. Also, changes in state funding priorities have hampered UMS’ ability to financially sustain high-quality, accessible and affordable public university programs and services. Twenty years ago, the state appropriated $3 for every $1 of undergraduate tuition. Today, the ratio is roughly one-to-one, with students paying a slightly larger share of the cost than the state.
UMS leadership has worked hard to tackle this challenge. Many factors have confounded our efforts: escalating health care expenses, dramatic increases in energy costs and a decline in the number of high school students graduating in Maine — this latter issue being part of a cyclical demographic trend. Technological changes have required expensive upgrades to support teaching, learning and operational responsibilities.
No one in Maine or elsewhere expects a return to the funding percentages and practices of the 1980s. The responsible thing for all higher education leaders to do is to develop new and better ways to financially sustain their institutions while protecting academic quality, access and affordability.
That is exactly what the university system is doing. The UMS board of trustees recently approved a planning document titled “New Challenges, New Directions.” The document sets up a process to identify and implement $42.8 million in cost savings and revenue increases between July 1, 2009, and June 30, 2012. The dollar amount represents the gap between projected revenues and expenses that would occur if no significant changes occur.
It should be noted that the $42.8 million target for the next four fiscal years is in addition to the $34.2 million in reductions made in the current fiscal year budget alone. Many of those actions were short-term measures designed to achieve savings wherever possible. Balancing the FY09 budget required cuts in programs, services and personnel expenses, some of which remains in discussion with collective bargaining units. However, those kinds of incremental cost cutting — both by our seven universities and within the shared service functions provided by UMS’ central office — are not effective ways to attain financial sustainability. The trustees, chancellor and university presidents agree that deeper, broader change is necessary to ensure academic quality, affordable undergraduate and graduate education, essential research, sound public service and outreach, and operating efficiencies. Simply put, we have no choice.
It’s not an easy process. UMS is one of Maine’s biggest and most complex entities — a university system of 45,000 students, seven universities, an extensive distance-education structure, 10 academic outreach centers and 5,300 employees. More than 500,000 individuals annually visit UMS campuses, research and arts centers. UMS annually awards more than 5,500 academic degrees, making it by far Maine’s largest “producer” of an educated work force. Furthermore, UMS generates $8.10 in economic impact for every $1 of state appropriation it receives. That economic impact ratio does not include the consumer spending influence of 114,000 alumni of Maine’s public universities currently living in Maine and their contributions to the civic, community and economic life of our state.
Respecting those facts, we have instituted an inclusive financial sustainability planning process. We have many stakeholders whose input is needed, including students, faculty, staff, policymakers and the general public. Certain principles are guiding this process: a dedication to academic quality, affordability and access; an emphasis on effective and efficient administrative and operational practices; and a commitment to addressing the educational, research and economic needs and opportunities of Maine and its people. Based on that framework, UMS’ chancellor and university presidents, with advice from a 12-person task force chaired by David T. Flanagan of Manchester, will present long-term financial sustainability options to the UMS board of trustees at its July 13 meeting.
UMS and the task force welcome public input. Along with a series of campus-based listening sessions, the task force invites the public to visit its Web site, www.maine.edu/UMSTaskForce, and to share comments and ideas. Call 973-3230 or e-mail taskforce@maine.edu.
The world’s financial landscape has changed. For UMS, stopgap measures and large tuition increases are not the answer. Only transformational change of the system’s administrative, academic and structural operation will produce the financial sustainability necessary to protect the academic quality, accessibility and affordability of Maine’s seven public universities. Since the trustees’ recent approval, the process for accomplishing those objectives is under way.
Lyndel J. Wishcamper of Freeport
is chairman of the University of Maine System board of trustees. Richard L.
Pattenaude of Bangor is chancellor of the University of Maine System.