Prepared Remarks
Jay Gogue
Chancellor, University of Houston System, and
President, University of Houston
Legislative Appropriations Request Hearing
Before Governor’s Office of the Budget and Legislative Budget Board
University of Houston System/University of Houston Presentations
Hilton University of Houston Hotel
September 14, 2004
UH System Presentation
Thank you, Chairman O’Connor. I am delighted to be with you this morning, and I look forward to sharing with you the story of the University of Houston System and our plans to meet the challenges faced by higher education as we work to improve the educational opportunities for the people of the Upper Gulf Coast and for all Texans.
I am beginning my second year as Chancellor of the University of Houston System and President of the University of Houston. As I went out into our communities during this past year, I had a chance to visit with many people in Texas and around the country, and I have to tell you that the history of the University of Houston System is solid.
When I meet our graduates in all walks of life, some of them tell me their experiences from the 1940s and 1950s relating the University of Houston. They talk about the quality of the education they received – the education that allowed them to go forward and to achieve their hopes and dreams.
The University of Houston System is the result of the population and economic growth of Houston and the Upper Gulf Coast. We started in 1927 as Houston Junior College with an enrollment of 212 students. Today, we are a multi-university System, and it makes me proud of those dedicated individuals who figured out how to provide the high-quality education our graduates have received over the years.
I would encourage all of us here today to think about the decisions we will make over the next several months and their long-term impact. The UH System will be here for centuries to come. It is important for us in these formative years to make the kind of decisions that will guide our System and each of our universities, not just in the coming biennium, but over the next 25 and 50 years and longer. This is important to keep in mind.
When Hugh Roy Cullen gave the young University of Houston its first major gift, it came with the understanding that the University would not be another rich-man’s university, but a university for Houston’s working men and women and their sons and daughters. We accepted the gift with a promise to keep his wish foremost in all we do.
As Houston grew, so did the University to accommodate the city’s growth and changes, until it evolved into the University of Houston System with four distinct universities—the University of Houston, the University of Houston-Clear Lake, the University of Houston-Downtown, and the University of Houston-Victoria.
In 1995, as Houston’s population growth continued its shift beyond Harris County, the UH System universities launched the UH System at Sugar Land in Fort Bend County, a multi-institution teaching center where all of our universities collaborate in offering baccalaureate and master’s degrees. In the fall of 2002, we opened an $11 million building with 57,000 square feet and more than 30 classrooms. By working together, we serve the needs of the growing western side of our area in a more efficient manner than any of our institutions could accomplish on its own.
The UH System at Sugar Land was our first multi-institution teaching center, and a model for other such initiatives around the country. Its success allowed us to open the UH System at Cinco Ranch in West Houston in 2001. That Center also offers more than 30 undergraduate and graduate degree programs.
Fort Bend County projects about a 54 percent growth in population by 2015 to more than 636,000 residents. Today, about 40 percent of the county’s population has at least a bachelor’s degree. These numbers are exciting to me because they tell me this area will continue to grow in an area where people place a high value on a college education. They also tell me that we did the right thing by establishing the two teaching centers in such a fast-growing area.
It is important that the University of Houston System continue to look at the issues of access and affordability if we expect to meet the projected demand in Fort Bend County. Today, we are working with the Ford Bend County community and Wharton County Junior College to construct a building that will house programs from both of our institutions.
From the University of Houston to the UH System to the multi-institution teaching centers, we have worked hard and with a lot of innovation to assure the future of the promise we made to Hugh Roy Cullen.
And we continue to do all we can to assure the future of that promise. Our System Strategic Plan, with its set of strategic principles, is the latest example. In line with the Texas Higher Education Coordinating Board’s “Closing the Gaps” initiative, we selected “student access” as one of our driving principles.
The already ethnically diverse population of the greater Houston area is expected to increase by about 2 million residents over the next 10 years. Hispanics will account for about 800,000 of the increase. As this population grows, so will our System enrollment. Steps to increase our student population to about 75,000 by the year 2015 are included in the Strategic Plan Chairman O’Connor mentioned. That’s about another 18,000 over the next eleven years.
Multi-institution teaching centers, such as those in Sugar Land and Cinco Ranch, must serve leading roles in the accomplishment of this goal. Today, we are planning new centers in Northwest Houston, Pearland, and the Texas Medical Center, where demonstrated need exists for our programs.
These centers cannot be developed, however, without a significant investment of resources for program development, infrastructure, operations, and administration. To assist us in this endeavor, we have included in the UH System Administration’s Legislative Appropriations Request an exceptional item to fund the development and operations of these new centers. And I would argue that even with these costs, delivering education through our teaching centers is an economical alternative to building full-fledged campuses.
To meet enrollment increases and the increasing demands and expectations on higher education also requires additional facilities, classrooms, faculty and staff, and all of the supporting infrastructure for our universities such as housing, libraries, and computer connectivity. These are just the basic requirements needed to provide our citizens the competitive edge they must have to succeed in this new century.
In addition to our exceptional item request, we ask that the Legislature consider several items of critical concern to the UH System. These are:
Increased base funding, which is essential to accommodate our current and projected enrollment growths, to meet the increasing costs of goods and services, to fund increases in our insurance premiums, and to remain competitive nationally and in Texas in terms of faculty and staff salaries.
Postponed adoption of the Texas Higher Education Coordinating Board’s recommended formula changes based on its recent cost study, until between four to six years of data are compiled and its methodology improved;
Increased HEAF funding, from $175 million to $225 million, to support enrollment growth, deferred maintenance, fire marshal compliance, and other life/safety issues;
Fully-funded debt service on tuition revenue bonds, which will allow us to fulfill our capital projects obligations without diverting vital resources from other critical priorities, such as instruction and research;
Increased financial aid, especially for the TEXAS Grant program, to enhance student enrollment, retention, and graduation; and
New tuition revenue bonds that our universities will use to address their essential capital construction and renovation needs.
Along with student access, academic and research excellence are critical in preparing students for the 21st century workforce and for generating the research essential for fueling the economic development of our economy. This is particularly important for the University of Houston as we seek to become the state’s third top-tier research university.
With this in mind, the UH System also asks the Texas Legislature to consider:
Expansion of the Research Development Fund to achieve the research and academic excellence goals Texas needs to improve the quality of life for its citizens and to assure economic prosperity; and
Continued funding for special items, and new funding for exceptional items, to support an array of essential research and public service programs, and to leverage external resources.
I also want to point out this morning two NASA-related special items for which the UH System Administrations receives funding for programs implemented by the Johnson Space Center, and for which we are the conduit through which NASA receives funding.
The Texas Aerospace Scholars program harnesses the excitement of human space exploration by providing Texas students and teachers valuable distance learning opportunities and onsite experiences at the Johnson Space Center, and by encouraging the students to pursue degrees and careers in math, science, and engineering. The Technology Outreach Program connects NASA’s technical and engineering expertise with the state’s small businesses to address technical challenges and to encourage economic expansion.
That concludes the University of Houston System Administration presentation. I will be happy to answer any questions you may have.
University of Houston Presentation
It is now my pleasure to continue the University of Houston System presentation in my role as president of the University of Houston.
The University of Houston is the flagship institution and the principal doctoral degree granting university of the UH System. It also is the largest baccalaureate degree granting university in Houston. Our enrollment exceeds 35,500 students—a record fall enrollment on the heels of a record spring enrollment—and we generate almost $90 million in external research funding a year.
In addition to our status as the major public academic and research university in the Upper Gulf Coast, we are the premier urban research university in Texas, and the most ethnically diverse urban research university in the country.
Thanks to state investments in the current biennium, we have greatly improved support for our students, enhanced our academic and research programs, and made significant contributions to the communities we serve and to the many industries of the Houston area.
While we have the traditional functions and obligations of a comprehensive research university—such such as a full range of academic programs from undergraduate to doctoral, international recognition of the quality of our programs and faculty, and diverse cultural and public service programs that benefit the community and state—we also serve a non-traditional student body.
As I mentioned, we are the nation’s most ethnically diverse urban research university, where no ethnic group constitutes a majority on our campus. Our enrollment is made up of 39.8 percent Anglo, 18.6 percent Asian-American, 17.8 percent Hispanic, 13.2 percent African-American, with the remainder being Native American, unreported, and international students.
Our students tend to be older with most living off campus and working at least part time. Many of our students are the first in their families to attend college.
Because of these factors, it is important that we stay ahead of the central issues of access and affordability for our students, with the thread of accountability running through everything we do, as Chairman O’Connor said earlier.
We recognize and appreciate the difficult task faced by Texas legislators as they try to balance limited revenues with the increasing needs of the state’s agencies and programs. Public colleges and universities must also balance our limited revenues with the rising expectations for access and affordability and a high-quality education.
I am excited about the support from our students and members of our communities regarding our approach to this issue, particularly in the difficult matter of tuition increases. During our tuition meetings, our students and their families told us they recognized their role in assuming a greater share in the cost of their education when it means adding to the value of their degrees.
Higher tuition is not always the solution, however. Let me give you two examples of solutions we now have in place. One solution directly addresses Houston’s need for about ten thousand additional public school teachers each year. Our education students suggested an exemption to the tuition increases for courses in their major to encourage more students to pursue teaching careers, especially in the critical areas of math and science. The Weekend University is another solution that recognizes the desires of our working students to take classes at times more convenient to their work and home schedules, while also providing efficient utilization of our classroom space. By instituting these differential tuition plans, we believe we are moving forward to address the differing needs of our students.
Formation of effective partnerships is another solution that addresses many issues, including access, affordability, diversity, alumni and corporate participation, and community service. It is important that the University of Houston develop successful, working partnerships with the other UH System universities and the Houston area universities and community college systems to improve the delivery of educational resources to our students and potential students.
Of fundamental importance to this university is our ability to capitalize on Houston’s wide-ranging resources to improve our academic programs, the research experiences of our faculty and students, and the cultural and economic development of the communities and constituents we serve. Over the past several years, we have built multi-disciplinary research programs in such areas as materials science, the biosciences, and the computational sciences. These areas align with the major industries of this region and the state, and in doing so, we have created programs that are highly regarded internationally.
Becoming the state’s third top-tier research university remains our highest institutional priority for the coming biennium. We continue to make progress toward this goal. For example, more students are making our university their institution of choice. Our enrollment is at record levels, as is our graduation numbers—more than 6,200 last year, which is nearly 900 more than we graduated just five years ago.
Growth in our research funding has been tremendous. Research awards for FY03 totaled more than $89 million, which is a 60 percent increase from FY00. Federal awards, the most sought after nationally, were $46 million, which is up 125 percent from FY99.
We can thank the strong support of the Texas Legislature in large part for our phenomenal growth in enrollment, graduation, and research awards. And, we are counting on the Legislature to continue its support in these areas in the form of investments that will allow us to build on our momentum.
The University of Houston has identified five principal legislative priorities:
The first is the expansion of the Research Development Fund. When appropriation of these funds was vetoed, our university lost approximately $6 million per year, which was more than any other institution in Texas. Investment of these funds has been critical to our research accomplishments, and the re-appropriation of the funds in the next biennium will position us for continued growth.
Our second legislative priority is the Return of the Five-Percent Reduction in our budgets as part of the Legislative Appropriations Request process. For the last three years, we have been faced with reduced state funding. We had to make the difficult decision about how to implement these reductions to essential resources in the areas of institutional enhancement and programs funding through special items and still maintain our ability to fulfill our academic, research, and public service missions.
The third is Special Item Funding for our Research, Public Service, and Institutional Support Programs. We thank the Legislature for funding many of our programs that fall outside the scope of formula funding. These programs have a great, positive effect on our research and on the communities we serve.
Under the categories of Research are the Texas Learning and Computation Center, the Center for Commercial Development of Space, and the Texas Center for Superconductivity at the University of Houston.
It is fair to say that the economic future of Texas is tied to the Houston metropolitan area, which accounts for about 22 percent of the state’s workforce and 28 percent of the state’s economy. The University’s Texas Learning and Computation Center, or TLC2, is critical to the economic future of the state, because of its cutting-edge research and development in the computational sciences, which are areas of vital importance for the future knowledge workers of Texas.
TLC2 works with Houston-area universities, community colleges, and public school districts to address the needs of their students. Through centers such as the Louis Stokes Alliance for Minority Participation, TLC2 engages members of diverse communities to help nurture and graduate first generation college students. Use of TLC2 facilities has enhanced existing partnerships with the Texas Medical Center and encouraged new partnerships with the TMC.
The Center for Commercial Development of Space, the Space Vacuum Epitaxy Center—or SVEC—is a NASA Commercial Space Center that creates advanced thin-film materials and devices for commercial applications through vacuum growth technologies, using earth and space environments. SVEC has formed a consortium of 32 industry, government, and academia affiliates for the development of these technologies. Over the past decade, SVEC has generated more than $350 million in economic benefit for Texas.
The Legislature established the Texas Center for Superconductivity at the University of Houston—TCSUH—seventeen years ago this past June. Since then, TCSUH has become the leading international center for research into superconductivity and advanced materials research. The Center is working on research to discover new superconductors and improve and develop current High-Temperature Superconductivity materials for use in advanced devices for medical, energy, transportation, and communication industries.
For the coming biennium, the University of Houston is requesting funds for the expansion of three special item programs: the Partnership to Support Public Schools, the Health Law and Policy Institute, and the Small Business Development Center.
Among the programs in the Partnership to Support Public Schools is the Texas Institute for Measurement, Evaluation, and Statistics—or TIMES. TIMES researchers direct and collaborate on research projects in more than 700 Texas public schools serving low-income and ethnic minority children, particularly those students with limited proficiency in English. TIMES research and assessment activities are critical to state and national efforts to improve the reading skills of children, especially those whose primary language is not English.
The Health Law and Policy Institute is one of the nations top interdisciplinary centers for the study of health law and policy, and is consistently ranked among the top health law program in the nation by U.S. News & World Report. The Institute’s Health Legislation Research Center provides legislators and staff with detailed reports and analyses from a variety of areas, as well as expertise on a range of health law and policy issues that are critical to the Legislature. The Institute completed more than a dozen research projects for legislators during the 78th Legislature. Exceptional funding will allow us to increase the number of interns in the Texas legislative offices who work on crucial health policy issues.
The Small Business Development Center is a revenue-positive investment by the Legislature. Without this special funding, Texas would lose more than $1.77 million in federal funds and about $2.71 million in other local community funds and program income a year, in addition to the economic impact to local communities from the loss of the Center’s services, particularly in the inner city. Exceptional funding will allow the creation of a technology commercialization program.
The Center for Public Policy provides a wide-array of services to the public, including community and business leaders and local governments. Among its services are policy research, economic symposia, the Mickey Leland and the Texas Legislative Internship programs, the Lanier Public Policy Conference, and education seminars for foreign government officials. We are not asking for additional funding for this Center, only a return to the FY04 funding level.
Special Item funding for Institutional Enhancement will be invested to improve the academic success of our diverse student body through the Mexican-American and African-American Studies programs, which emphasize teaching, research, recruitment, and retention of students from those communities. We also use this funding to enhance administrative efficiency through improvements to the student records system, and information technology infrastructure and services.
In addition to these Special Items, we are asking the Legislature for Exceptional Item funding for four new initiatives.
Foremost among them is funding to enhance our ability to expand our more than 200 health-related programs and initiatives and to build partnerships with the Texas Medical Center, which are critical to the future economy and quality of life of the Houston area. This also is part of our System Strategic Plan.
Today, the University of Houston produces about 200 graduates and health professionals yearly from the Colleges of Optometry and Pharmacy. Current funding for our health-related research and development exceeds $77 million in more than 230 projects, many of which involved partnerships with Texas Medical Center Institutions.
We are also requesting Exceptional Item funding for the University Eye Institute, which provides vital non-reimbursed vision care to medically indigent patients in the Houston and Dallas areas; the Center for Energy Materials Transmission Technology, which will address critical issues in the development of the proposed energy SuperGrid for the country; and the Houston Infrastructure Technology Assistance Center, which will support the development and maintenance of Houston’s information technology infrastructure, especially as it relates to emergency management and security.
The fourth legislative priority is Increased Capital Funds for Facilities Expansion and Improvements. Our ability to meet the demands and expectations of our students, faculty, and stakeholders for academic and research excellence depends on the quality and availability of classrooms, laboratories, libraries, and equipment. As we increase the number of our students and faculty, so must we also expand and improve our infrastructure. To accomplish our goals in these areas requires appropriate levels of HEAF funding and Tuition Revenue Bonds. As part of our FY06-07 Legislative Appropriations Request, we have requested Tuition Revenue Bonds to renovate core science facilities, including undergraduate science labs, and to expand our facilities at the Texas Medical Center, the College of Optometry, and the C. T. Bauer College of Business.
Our fifth legislative priority is Increased Formula Funding and Postponed Adoption of the Texas Higher Education Coordinating Board’s Recommended Formula Changes. I cannot overemphasize the importance of Formula Funding. It is essential to accommodate our current and projected enrollment growths, it allows us to meet the increasing costs of goods and services, to fund increases in our insurance premiums, and to remain competitive in terms of faculty and staff salaries.
As I mentioned earlier, we believe it is important to postpone the adoption of the Coordinating Board’s recommended formula changes based on its recent cost study until between four to six years of data are gathered and its methodology improved.
That concludes my presentation on behalf of the University of Houston. I am more than happy to answer any questions you may have…
I want to thank the members of our Board of Regents who joined us today, along with Presidents Staples, Castillo, and Hudson.
I also want to thank the members of this committee for your questions and for listening to our presentations.
We appreciate that public universities must be good stewards of the public funds they receive. The University of Houston System and each of our component universities are committed to this principle. And, we are extremely thankful to the members of the Texas Legislature who share in our vision of a well-educated and highly skilled citizenry, and who provide the leadership and investments that allow our public universities to offer an opportunity for an accessible and affordable college education.
In summary, let me reiterate the areas of critical concern to the University of Houston System:
Increased formula funding and delayed adoption of the Coordinating Board’s recommended formula changes based on its current cost study;
Increased HEAF funding;
Fully funded debt service on tuition revenue bonds;
Increased financial aid;
New tuition revenue bonds; and
Expansion of the Research Development Fund.