The Processes of Governance and Coordination

Planning
Budgeting
Program Review
Information

 

Higher education maintains and advances New York's policy priorities of access, quality and equity through planning, budgeting and program review. All of these processes rely on information, and all are interdependent.

Planning

For many years, the Regents have overseen a formal, statewide master planning process for higher education that called for SUNY, CUNY and the independent colleges and universities to prepare master plans every four years and progress reports every two years. The Department of Education took these plans into consideration in developing a statewide master plan for higher education. During his administration, Governor Cuomo disregarded a requirement of gubernatorial approval. Governor Pataki proposed to eliminate the Regents' planning role, but accepted a compromise that changed their role in three major respects:
  1. The planning cycle was lengthened to eight years with amendments every four years.
  2. The Regents will review only major changes, such as a campus' desire to go from a two-year to a four-year institution or to begin to offer either master's or doctoral degrees.
  3. The Regents will review mission changes only for their quality, and no longer for their appropriateness to the campus. A Department of Education officer said that SUNY "will have to look much more closely at issues of system need and at duplication than they have in the past."
Statewide planning in New York is weak because it is almost completely isolated from the budgetary process. A CUNY officer characterized the Regents as having a "nominal planning role." A SUNY officer stated that the Regents' "planning process and the document produced has long been considered as an ineffectual chore." The Regents, however, are the only agency with responsibility, even without budgetary authority, for all higher education in New York. Their long-range plans-essentially, their commentary and actions on SUNY and CUNY plans-provide, as a Regents' officer stated, "an opportunity to lay out goals and aspirations and ways to measure progress for higher education in New York." As a practical matter, however, the statewide planning process is useful only as a context for the Regents' program review responsibilities.

Planning at SUNY and CUNY

The formal requirements of the Regents' planning process have largely determined planning at SUNY and CUNY in the past. The impact of the changes made in the statewide process in 1995 will undoubtedly be reflected at SUNY and CUNY, but it is too early to determine the shape of these changes.

Except as a setting for changes in programs or institutional missions which ultimately required the Regents' approval, past SUNY and CUNY four-year master plans have had little impact on system operations. Aside from the formal planning required by the Regents, the SUNY central office developed plans (SUNY 2000 and SUNY 2000, Phase II) focusing on the availability, demand and centrality of academic programs at the campuses. According to a senior SUNY officer, however, opposition by some campus presidents and interested legislators prevented adoption of a comprehensive plan that might have led to campus closures or mergers. On the other hand, a SUNY campus executive stated that "there is no common plan and never has been." The December 1995 plan, Rethinking SUNY, which was required by the Legislature, may be the beginning of more substantive academic planning at SUNY, although a SUNY officer predicted that the Trustees' emphasis on decentralization and market forces would work against systemwide planning.

In contrast, in the early 1990s the CUNY board, according to a CUNY officer, was "unhappy with increasing tuition as a major device for responding to state fiscal problems" and "took a strong position on academic program planning." He noted that CUNY had advantages that SUNY lacked: geographic proximity of campuses and the availability of public transportation. Others suggested that CUNY's acceptance of specific priorities (regarding access and service to an immigrant population) are additional advantages. A year or so prior to system adoption of academic program planning, a similar procedure had been initiated at Baruch College by a new president who strongly believed that fiscal pressures required setting academic priorities. This example of planning at Baruch College was transferred within CUNY's compact structure. An additional factor that helped in implementing systemwide planning was the universitywide graduate program and Graduate Center, which brought together faculty from all campuses. A CUNY officer said that program planning is now an ongoing academic process. The chancellor identified the primary issues to be addressed, but said that "the exact nature of the process and the format of the reports" vary with the "culture" of each college.

Back to top

Budgeting

Typically, SUNY and CUNY submit preliminary budgets to the State Division of the Budget in September for the state fiscal year that begins April 1 of the following year. These preliminary requests are based on Division of the Budget guidelines, including allowed inflation adjustments and estimates of institutional revenues. Enrollment is treated as a programmatic issue, not as a workload adjustment. The fiscal year for each university system begins on July 1. Formal submissions are made after the respective boards act on the budgets. Historically, the Division of the Budget held public hearings on these requests, but these hearings are now held in closed sessions. The Governor submits the executive budget request in January, and has 30 days thereafter to amend it. Under the state constitution, the Legislature is required to pass the budget by March 31, but it often does not do so until May or later. In the public legislative hearings that follow submission of the Governor's budget, legislators focus on the total proposed expenditures rather than on special items or special treatment of campuses. The exception, a legislative staff member noted, is in funding capital projects.

A senior CUNY officer said the budgets for CUNY and SUNY are essentially "non-competing," noting CUNY's political support in the Democratic Assembly and SUNY's support from the Governor and in the Senate.

In the budget process the Legislature maintains the "facade" that CUNY is the city's university, according to a legislative staff member. CUNY's four-year institutions are budgeted as a city institution, then reimbursed by the state for 100 percent of the city's costs. This separation in the budget is for appearance only, said this staff member, to acknowledge that in terms of its governance, CUNY is a city institution.

Table 7 shows the changes in state and local resources for SUNY, CUNY, the independent institutions, and the TAP program over the last five years. While state support for SUNY has declined in real terms and state support for CUNY has declined significantly over the five-year period, funding for the TAP program, which is structured as an entitlement, has outpaced inflation. State funding for independent institutions decreased significantly during this period.

Table 7
Changes in Support for Higher Education, 1990 and 1995
(Dollars in Millions)
1990-91
1995-96
% Change
SUNY
State Support
$1,849.6
$1,888.3
2%
Local Support
$251.9
$296.0
18%
CUNY
State Support
$739.4
$622.7
-16%
Local Support
$165.1
$107.5
-35%
Independents
Bundy Aid
$197.4
$39.0
-66%
TAP
$434.5
$615.9
42%
U.S. CPI
130.7
156.3
20%
Sources: State University of New York, Budget Development Office, 1996; City University of New York, The Chancellor's Budget Request, 1991-92 through 1996-97 editions (New York: 1991 through 1996); Commission on Independent Colleges and Universities, 1997; University of the State of New York, State Education Department, Annual Report on Student Financial Aid Programs (1991 to 1996).

Budget Formulation

Neither SUNY or CUNY uses explicitly enrollment-driven formulas in developing their budget requests to the state. At SUNY, however, the level of tuition income is an incentive for meeting the enrollment levels stated in the request. If a campus is over-enrolled, it does not receive additional funds. If it is under-enrolled, then it could face trouble in the next budget. There is strong belief at the campuses that they should be able to retain tuition income, and a device was developed through system negotiation with the state Division of the Budget to permit this to a limited extent. At CUNY, on the other hand, four-year campuses are allowed to keep tuition dollars in excess of projections, but must also carry forward responsibility for deficits.

Until recently the budget requests of both SUNY and CUNY have been aggregations of campus requests after internal review. At present, however, both systems appear to be maintaining this aggregation for a core budget request for items such as salary increases and inflation, but consolidating special campus requests and tying them to systemwide initiatives. In SUNY, campus heads sometimes lobby their legislators for a specific project that may show up in the state budget as "higher education miscellaneous," which is not part of the regular SUNY budget.

Budget Allocation

SUNY and CUNY are given greater flexibility than other state agencies in how appropriations can be spent and distributed. Although there is a schedule of payments to each campus, money can be shifted from one campus to another, but in most cases this would have to be justified to the Legislature. When midyear reductions in the state budget are made, then both systems are free from the usual control limits on shifting funds across budget lines. In SUNY, allocations are seen as "essentially across the board," according to one campus head, a perception that may be based on the inability of the allocation process to deal with precipitous enrollment losses at several campuses. In CUNY, although the allocation process seems to be in flux, the central office is seen as allocating funds to reflect the chancellor's priorities-for example, to fund a central institute for English as a Second Language with funds requested for campus programs.

SUNY places an upper limit on the tuition that community colleges can charge, but few are at that limit. A community college president stated that neither "SUNY central nor the SUNY Board of Trustees take a critical look at our budgets . . . . This is all done locally" by the local board of trustees. The CUNY Board of Trustees is the "local board" for the community colleges in that system.

Both SUNY and CUNY build incentives into the allocation process. SUNY has attempted to improve articulation by giving additional funds to four-year colleges based on their enrollment of graduates of two-year campuses. CUNY uses its control over new faculty positions to encourage compliance with systemwide objectives.

Back to top

Program Review

Academic program review can serve several purposes: it can assure the quality of both proposed and existing programs, including the readiness of a campus to mount a new program; it can assess appropriateness of a particular program to a particular campus; and it can determine if there is a need for a new program or a continuing need for an existing one. In New York, program review takes place at three levels: at the state level, by the Regents; at the multicampus system level, by the CUNY and SUNY central offices; and at the campus level, by campus personnel. In all three instances, outside specialists often assist in the reviews.

At the state level, the Regents' major point of contact with institutions is in the quality-review area. Programs offered by institutions that are from outside New York are subject to Regents' approval, and the Regents' insistence on quality is said to have avoided having "degree mills" in the state. Program review is periodic and usually takes place at an institution once every ten years. In the 1970s, the Regents terminated several doctoral programs in SUNY, and, when challenged by the state university, the Regents' authority to do so was upheld in court. Regarding new program approval, a former SUNY chancellor said that Regents' reviews "duplicate what the system already does, and that program approval would be better handled by the SUNY central administration." A SUNY campus president agreed, noting that "the issues are too political," and that the Regents back down under pressure of the private sector when competing programs are an issue.

A senior administrator at CUNY said the Regents' periodic reviews of doctoral programs are valuable, noting that outside experts are brought in to review all doctoral programs in a given area for the entire state. Such reviews provide leverage for accomplishing goals that might otherwise be difficult to achieve. CUNY's own academic program planning depends on review of existing programs, as well as approval of new ones. This planning process was initiated to guide reallocation of support and has not been perceived as simply a way to give money back to the state. In the three years following its initiation in 1992, 128 programs at CUNY colleges were suspended, consolidated, or phased out. During the same period, 38 new programs were approved by the board. CUNY requires periodic program reviews at its campuses and is drafting guidelines for ad hoc reviews of particularly weak programs that fail to sustain adequate levels of activity and resources.

Back to top

 

Information

The Regents monitor graduation rates and require institutions to publish time-to-degree information, including successful completion of licensing examinations by graduates of various programs. A Regents' officer noted that there "is a lot of lip service and report cards going on around the country, but . . . the basic information that people should know is still lacking." He added that the Regents are now working on performance indicators, ones that would allow the institutions to set their own directions. He noted also that the independent sector "really relies on the data that we collect," and use it to make their cases to the Legislature.

SUNY central staff believe that good information about performance and relative levels of quality and activity at different institutions is available, but that neither the central office nor the Trustees have used it to the extent that they should.

The CUNY central office is upgrading its management information system, which, according to a campus head, does not at currently allow campus collection of needed information.

Back to top

[ DOWNLOAD | CONTENTS | PREVIOUS | NEXT ]


[ HOME | REPORTS | CROSSTALK | RESOURCES | ORDER ]