The university system has issued a white paper calling for changes that would give campuses and the regents more control over their funding, programs and spending.
In the eight-page letter, Chancellor Dan Klaich said the system, like many businesses, will have to make dramatic changes in how it operates to meet the state's needs for a trained workforce. But he said that means changes at the state level as well, including "substantial changes right now in the way it funds higher education in order to allow the institutions the freedom and flexibility, accompanied by accountability to do their jobs."
The paper says that means all fees paid by students including out-of-state tuition should remain at the institution where the students attend class, and an agreement that caps the percentage of out-of-state students at any one institution.
Current law uses fees to offset and reduce state funding for the system.
University officials also want state help in creating a system rainy day fund - in part by allowing the system to keep unspent state appropriations rather than reverting them back to the general fund. The system, however, has traditionally reverted very little money each biennium.
The goal of the proposed changes, the letter states, is to produce at least 1,064 more graduates each year through 2020. Admitting that will require significant changes to recruit, keep and graduate students, the system says the state will be critical in providing the resources to enable students to get the classes and support they need.
The letter calls for creation of programs to find and get more grants for research and other projects.
Another change to help speed graduation rates of students is the plan to limit total credit hours needed for a bachelor's degree to 120 credits - 60 credits for an associate degree - "without a compelling reason." Numerous majors now require more than 120 credit hours, which the white paper says slows and deters some students from graduating.
As part of the proposal, university officials would toughen the process of justifying academic programs that have few graduates and advanced degrees that are high cost. Some could be eliminated if they don't have "realistic parameters for a program's continuation."
Students would get incentives to complete college sooner, "such as guaranteed fee levels up to a certain number of credits or penalties for students who drop or repeat classes."
Efforts would be stepped up to increase need-based financial aid to low income students.
"Currently, too many low income students, particularly at our community colleges, do not apply for federal financial assistance, thus leaving on the table needed support for their college aspirations," the letter says.
It suggests the possibility of holding low income students harmless to cost increases for up to four years at the universities to encourage full time enrollment and quicker progress toward a degree.
The paper was distributed to the press as well as community leaders on boards advising the various campuses as an overview of what university officials will seek during the 2011 Legislature.