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Higher Education Program Evaluation Legislative Finance Committee University of New Mexico UNM Digital Repository President Schmidly's Administration Office of the President 8-11-2010 Higher Education Program Evaluation Legislative Finance Committee Follow this and additional works at: https://digitalrepository.unm.edu/schmidly_papers Recommended Citation Legislative Finance Committee. "Higher Education Program Evaluation." (2010). https://digitalrepository.unm.edu/ schmidly_papers/144 This Technical Report is brought to you for free and open access by the Office of the President at UNM Digital Repository. It has been accepted for inclusion in President Schmidly's Administration by an authorized administrator of UNM Digital Repository. For more information, please contact [email protected]. Report to The LEGISLATIVE FINANCE COMMITTEE Higher Education New Mexico State University & University of New Mexico August 11, 2010 Report #10-10 LEGISLATIVE FINANCE COMMITTEE Representative Luciano “Lucky” Varela, Chairman Senator Sue Wilson Beffort Representative Donald E. Bratton Senator Pete Campos Senator Carlos R. Cisneros Senator Stuart Ingle Representative Rhonda S. King Senator Carroll H. Leavell Senator Mary Kay Papen Representative Henry “Kiki” Saavedra Representative Nick L. Salazar Representative Edward C. Sandoval Senator John Sapien Senator John Arthur Smith Representative Don L. Tripp Representative Jeannette O. Wallace DIRECTOR David Abbey DEPUTY DIRECTOR FOR PROGRAM EVALUATION Manu Patel, CPA PROGRAM EVALUATION TEAM Jacob Candelaria David Craig Lawrence Davis Brenda Fresquez, CICA Pamela Galbraith Craig Johnson Charles Sallee Aurora B. Sánchez, CISA Michael Weinberg Representative Luciano "Lucky" Varela Senator John Arthur Smith Chairman State ofNew Mexico Vice-Chairman Representative Donald E. Bratton LEGISLATIVE FINANCE COMMITTEE Senator Sue Wilson Beffort Representative Rhonda S. King Senator Pete Campos Representative Henry "Kiki" Saavedra 325 Don Gaspar, Suite 101 • Santa Fe, NM 87501 Senator Carlos R. Cisneros Representative Nick L. Salazar Phone: (505) 986-4550 • Fax: (505) 986-4545 Senator Stuart Ingle Representative Edward C. Sandoval Senator Carroll H. Leavell Representative Don L. Tripp David Abbey Senator Mary Kay Papen Representative Jeannette 0. Wallace Director Senator John M. Sapien August 6, 2010 Mr. Blake Curtis, President Board of Regents New Mexico State University P.O. Box 30001 Las Cruces, NM 88003 Raymond G. Sanchez, President Board of Regents University ofNew Mexico 1 University of New Mexico Albuquerque, NM 87131-0001 Dear President Curtis/President Sanchez: On behalf of the Legislative Finance Committee (Committee), I am pleased to transmit the Higher Education Program Evaluation. The evaluation review team assessed governance, spending, and student outcomes at New Mexico State University and the University of New Mexico. The report will be presented to the Committee on 11 August 2010. Exit conferences were conducted with HED, UNM, and NMSU staff to discuss the contents of the report. The Committee would like a plan to address the recommendations within this report within 30 days from the date of the hearing. I believe this report addresses issues the Committee asked us to review and hope New Mexico's institutions of higher education benefit from our efforts. We very much appreciate the cooperation and assistance we received from NMSU, UNM, and HED staff. David Abbey, Director Cc: Representative Luciano Lucky" Varela, Chairman, LFC Senator John Arthur Smi h,Vice-Chairman, LFC Dr. Viola Florez, Secretary, HED Dr. Barbara Couture, President, NMSU Dr. David Schmidly, President, UNM Table of Contents Page No. EXECUTIVE SUMMARY ....................................................................................................... 1 BACKGROUND INFORMATION ......................................................................................... 9 FINDINGS AND RECOMMENDATIONS .......................................................................... 15 New Mexico Needs Improvements In The Cost-Effectiveness Of Higher Education .......... 15 Many Students Take Too Long To Graduate Or Do Not Graduate At All Increasing The Cost Of Higher Education For Students And Taxpayers ................................................ 27 Justifying Large Tuition Increases Will Require Greater Efforts To Contain Spending And Cut Overhead Costs ....................................................................................................... 41 Faculty Productivity Must Be Monitored And Contributions Effectively Communicated ... 56 The Legislative Lottery Success Scholarship, As Currently Structured, Is Successful But Unsustainable .................................................................................................................. 63 AGENCY RESPONSES .......................................................................................................... 70 APPENDIX A: FEEDER HIGH SCHOOL GRADUATION RATES ............................... 91 APPENDIX B: POST-GRADUATION EMPLOYMENT ................................................... 93 APPENDIX C: FUNDING FORMULA FLOW CHART .................................................... 98 APPENDIX D: DEGREE COMPARISONS ....................................................................... 100 APPENDIX E: HIGHER ED IN ARIZONA AND NEW MEXICO ................................ 102 APPENDIX F: UNM GRADUATION RATES .................................................................. 103 EXECUTIVE SUMMARY Higher education provides significant benefits to the state and society No other state dedicates overall and is a key component to the state’s economic future. The more of its citizen’s personal State of New Mexico is a national leader in committing its tax effort and income to higher education spending towards higher education and dedicates about 15 percent of than New Mexico. the State’s general fund appropriations for this purpose. No other state dedicates more of its citizen’s personal income to higher education than New Mexico. Despite New Mexico’s limited wealth, state-supported New Mexico funds 25 appropriations resulted in the third highest per student funding in the institutions of higher nation for FY08. The State has sustained its commitment to higher education and numerous education; only four other states had a greater percentage increase in centers including the two appropriations between FY98 and FY08. largest, New Mexico State University and the The State of New Mexico funds 25 institutions of higher education and University of New Mexico. numerous centers, including the two largest, New Mexico State University (NMSU) and the University of New Mexico (UNM). These two universities, their branch campuses, and their health and agricultural Of 100 9th Graders in New Mexico, functions are important assets to New Mexico and total appropriations How Many... represent about nine percent of state appropriations from the general 60 fund. The Legislative Finance Committee (LFC) program evaluation staff assessed governance, resource allocation and performance outcome 44 issues for both universities’ main-campuses. This report also covers 26 issues that may have a statewide impact because both universities 13 operate in a larger policy and finance context that impacts not only their operations and success, but the State of New Mexico as well. Both universities have committed faculty, staff and administrators that serve students well, perform excellent research and contribute intellectually and culturally to communities across the state. However, both need improved outcomes for students, attention to structural changes to administrative and academic functions and better monitoring of teaching capacity to contain costs for students and taxpayers, while Program Time Enroll in Enroll year Second Directly Enter Enter College Directly ensuring academic excellence. Efforts to cut administration, curb Graduate within within Graduate 150% of subsidies to functions that should be more self-sufficient, such as Graduate from High School High from Graduate Source: NCMEMS athletics, and streamline business processes should continue. A more in-depth examination of the physical and instructional capacity of the universities is needed to ensure better alignment of resources with need Arizona serves more than and productivity, particularly for faculty positions. four times as many post- secondary students with Finally, most spending for the Legislative Lottery Scholarship (LLS) is fewer state-supported for students to attend these two universities. The combination of institutions. stagnant revenues, increased numbers of students earning the scholarship and increased tuition has already required spending from the fund’s cash reserves. If trends continue, an automatic across-the-board Higher Education, Report #10-10 New Mexico State University & University of New Mexico 1 August 11, 2010 reduction will be required according to state law. Time remains to more thoroughly consider other LLS solvency options that strengthen an already strong program. The strategic plan serves as the basis to inform policy KEY FINDINGS and funding decisions. New Mexico needs improvements in the cost-effectiveness of higher education. New Mexico faces a combination of strategic challenges that may require a substantially new policy approach for public and higher education should the existing framework not make progress improving the educational attainment of its citizens at the pace needed and cost that is affordable. Higher education cannot solve these issues alone. They require
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