Prepared Remarks
Arthur K. Smith
Chancellor, University of Houston System, and
House Appropriations Higher Education Subcommittee
University of Houston System Presentation
January 30, 2001


Thank you, Chairman Hochberg, members of the Subcommittee. It is my pleasure to come to you today as Chancellor of the University of Houston System.

You may recall the State Auditor's Profile of Four Texas Public University Systems - the University of Houston, the University of Texas System, the A&M System, and the Texas State Universities System - and a review by the Legislative Budget Board in the late 1980s that found all system administrations in the state appropriately perform many different functions and have many different funding levels.

Each system administration, including mine, is unique in its organizational structure and operations.

The Need for Continued UHSA Funding

In 1996, the UH System Board of Regents decided to combine the positions of Chancellor of the UH System and President of the University of Houston. When I came to the System in April 1997, I continued to streamline the administration by assembling a senior executive team that possesses both System and University responsibilities. This allows for maximum coordination and efficiency.

This consolidation has been a success. Even though the universities have more autonomy, the System Administration still plays a vital role in coordinating initiatives that require a system-wide approach, and we provide some centralized services that are best administered at the system level.

State support for the UH System Administration is critical if our universities are to serve effectively our constituencies.

System-Wide Initiatives
UH System universities try to take advantage of the unique, joint financial and academic opportunities provided by their geographic proximity. Let me cite a few examples for you.

PeopleSoft
In FY99, the UH System purchased the student, financial, and human resources information systems from PeopleSoft. Once implemented, these systems will enable the universities to achieve a higher level of reporting accuracy and timeliness of information critical to the efficiency of the UH System. All four universities will begin implementation of the human resources system during this fiscal year. Implementation of the core financial system at all four institutions and the student financial system, initially at UH Clear Lake, is scheduled for completion in FY02.

Joint Contracts
Over the past two years, the System Administration has negotiated joint contracts on behalf of the universities for services that will benefit students and be cost-efficient for the universities. Among these are contracts for bookstore services, food services, and pouring rights for soft drinks.

Academic Initiatives: UHS at Sugar Land and Cinco Ranch
One of our finest achievements has been the UH System at Sugar Land in Fort Bend County where our four universities collaborate in the delivery of 32 bachelors and masters degree programs.

A Classroom/Office Building at Sugar Land is the System's TRB request. This request for $18 million anticipates the need for continued expansion brought on by increasing enrollments forecast in Fort Bend County.

On the heels of our success at Sugar Land, the Texas Higher Education Coordinating Board approved our proposal to convert the University of Houston West Houston Institute at Cinco Ranch into a university system Multi-Institution Teaching Center-the UH System at Cinco Ranch.

Realizing the importance of reaching our non-traditional students at times and in ways that accommodate the conflicting obligations of work and family, we have developed Campus Net, an electronic campus through which all four system universities deliver programs electronically to the metropolitan area.

UH System Administration Special Items

UH System Center Support
Implementing off-campus operations such as Sugar Land, Cinco Ranch, and Campus Net enables the UH System to serve our constituencies in cost-efficient ways. The expansion of operations into high-demand and under-served communities, however, requires an investment of significant resources for program development, infrastructure development and operations, and administration.

Texas Aerospace Scholars' Program and the Technology Outreach Program
The UH System Administration also receives special item funding for two programs for the benefit of NASA, and which are implemented by the Johnson Space Center. These are the Texas Aerospace Scholars' Program and the Technology Outreach Program.

While the UH System is happy to support and facilitate these initiatives-because they align with our own teaching and research goals-they are not our programs. We are simply the conduit through which NASA receives funding.

Mr. Chairman, the University of Houston System, particularly the University of Houston, has been a major factor in the phenomenal growth and success of the Upper Gulf Coast, and we expect to play an even greater role in the years to come.

The educational needs of our ethnically diverse population must be accommodated if our workforce is to receive the top-quality education and professional skills demanded by the economy of the new century. Our intellectual and instructional needs, at the current rate of funding, will not keep pace with the changing needs of Texas.

We are ready to meet our challenges, asking only that we be given the resources we need to do so with the excellence that our citizens deserve.

That concludes my presentation on the University of Houston System Administration, Mr. Chairman. I will be happy to answer your questions.