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Robert
Bruininks, President, University of Minnesota
Civic Caucus, 8301
Creekside Circle #920, Bloomington, MN 55437
February 26, 2010
Present:
Verne Johnson (Chair); Janise Clay, Paul Gilje, Jim Hetland (phone), Jan
Hively, Ted Kolderie, Dan Loritz, Tim McDonald, Jim Olson (phone), Wayne
Popham (phone), Clarence Shallbetter, Jim Thorp, Bob White
A.
Context of the meeting—
Taken together, in descending order from the largest, health and human
services, K-12, transportation, and higher education comprise over 80
percent of Minnesota’s budget. The costs of running education have been,
are and are projected to continue outpacing the rate of inflation
manifold. The costs of health care are rising even faster.
Higher education is
feeling the squeeze. Cost pressures are driving it from the inside and
affecting its share of revenues from the state. Yet Bruininks believes the
University of Minnesota can become one of the top three public research
universities in the world. That goal is “aspirational, audacious, and, I
believe, achievable,” he has said.
Higher education an
industry ripe for disruption. Enrollment in online degree programs in the
state now surpasses total enrollment at the University of Minnesota. The
capacity and appeal of new technologies continues to advance and is
following the prescriptive "disruptive" path that researchers have
attributed to the upset of many industries previously.
Change is afoot, and
public colleges and universities have a strong incentive to redesign with
pressure coming from their consumers and sponsors, both public and
private. President Bruininks will visit with us on this, today.
B.
Welcome and introductions—
President Bruininks is the 15th president of the University of
Minnesota. He has been in the post for nearly eight years. Bruininks began
his career at the University in 1968 as an assistant professor of
psychology before moving into the position of professor. He then rose
through a series of administrative and leadership positions both on the
academic and management sides of the University. He retires at the end of
the 2010-2011 academic year.
C.
Comments and discussion—During
President Bruininks’ visit with the Civic Caucus, the following points
were raised:
1. The state’s higher education system is
not sustainable--“I
do not think we are on a sustainable path,” Bruininks said. Costs are
rising and government support is decreasing. Demographic changes are
altering the capabilities and needs of students coming to the University
of Minnesota. These changes are weighting what he considers a
disproportionate share of state funds toward the MnSCU system. Meanwhile,
higher education is being squeezed out of the state budget in general.
2. Proposals for changes in structure need
to come from the outside--Options for response? “The main
pressure for change and reform needs to come from the outside on this one.
We’re in a long-term structural ditch, but we are not getting out of it on
our own—we need to look at the entire collection of state services. We
need something like the Greenspan Social Security Commission,” which
provided cover to politicians on a sensitive topic. “We’ll need broad
public authority and awareness,” in order to change.
3. Elements of the problem facing
higher education--There
is a “new normal” for public universities, Bruininks argued, with new
trends. Times have changed for public universities. The concept of a
new normal “is usually discussed in terms of economics.
The new normal describes more than just money; there are
trends that are difficult to confront, as well--and there are also some
positives.
a. Changing state
support for higher education. “Higher education used to account
for 9 percent of the state’s biannual budget; now it is around 4 percent
and falling.” Meanwhile costs are rising. “Believe me,” Bruininks said,
“the cost pressures in a global labor market are different than those in a
local market” for top faculty and for top researchers.
b. Support
shifting from the institution to the individual--Not only is
funding decreasing, but it is shifting from the institution to the
individual. “The federal approach to funding is turning from an
innovation-approach”—say, a partnership between universities and
government for R&D—“to student need.” This is taking the form of increased
allocation to Pell grants and subsidized loans.
The shift to the
individual reflects rising concern over the accessibility of higher
education. “Tuition is becoming a major factor,” a member observed.
Bruininks responded: “Don’t just keep your eye on the sticker price; keep
your eye on the net price. The sticker has gone up 100 percent over the
last 10 years, but the net has risen 27 percent (roughly 3 percent
annually)”—and some years the net price has actually gone down for many
students. The University is working hard to provide tuition aid.
He recalled a visit
with Father Dennis Dease of St. Thomas, where he asked how much tuition
was at that school. “$26,000,” Dease said. Who’s paying it? “Nobody.” The
point, President Bruininks said, is that “the economy is complex,” and
there are entrepreneurial ways to deal with the problems it presents.
c. Concern over
low graduation rates--A member asked whether President
Bruininks believes concerns about graduation rates are affecting the
process of awarding individual aid, i.e., is there concern that aid does
not result in a completed degree? Yes, the concern is more basically about
getting people to graduation. “We are in the back of the Big 10 in our
graduation rate,” he admitted, “partly because urban universities have
more people coming in and out”—but the University of Minnesota Twin Cities
has doubled its four-year graduation in recent years. The best thing a
person can do to cut down on cost, he said, is to graduate in four years.
d. Changing, less
favorable demographics--Now, it is well documented that the
growth of college-aged students will slow, affecting the supply of high
school graduates, he said. Increasingly the demographics of the younger
generations in Minnesota are trending toward racial, ethnic and
socio-economic groups that have not done well--and are not doing well--in
school. These groups have been least likely to go to college. The state is
growing older, with more retirees contributing less in taxes.
e. Increased
competition from for-profit online education--“The fastest
growth in higher education is in proprietary, for-profit online education.
The reach and advances of technology are changing the accountability” for
the University and increasing demands for technology-rich curriculum. Even
so, the University continues to see a rise in applicants and better
qualified applicants, making admission much more competitive. While
enrollment has grown in recent years, demand has grown much more quickly.
“I get calls at all hours of the day, and night, from people I never used
to, asking why their child or grandchild didn’t get in.”
4.
Elements of the strategy to deal with the problems facing higher
education--“How
does the state move,” a member asked, “on the response side?” Through
“macro design,” Bruininks replied. It is the state’s job to do the design
of public systems—not to run them.
There are clearly two
dimensions to this problem, a member observed. One exists within the
higher ed. system, involving its design, function and outlook. The other
is at the level of the state and involves how it legislates and funds
public services.
The member continued,
“You have been listing elements of the strategic problem. If you go over
to the other side, what are the strategic actions to deal with them? How
does the University of Minnesota internally move to address the things it
needs to do, to respond?”
“We need to do a good
job delivering on our mission,” Bruininks began. “Be entrepreneurial.
Manage the economy internally. Revisit our organizational character and
ask, what is our primary role and what are our responsibilities?” He
outlined some ideas:
a. Improve
college readiness, so students come to college without needing
remedial courses. “I believe the top priority in K-12 needs to be college
readiness” he said, citing his experience serving with a group called the
Minnesota P-20 Education Partnership. They brought in experts to work on
content for elementary and secondary schooling (they issued a 2007 report
that may be found here:
http://tinyurl.com/ybj5apm). “Students must come to college knowing
how to do college work and able to succeed.”
b.
Better
align early childhood, K-12, and higher education—“We
need to have greater cooperation between K-12 and higher education
institutions,” Bruininks asserted. This will streamline the transition and
find efficiencies (see next). The College Readiness Consortium with Kent
Pekel works on the question of how to better bridge K-12 and the
University. Further, as a society, “We have got to redesign K-12 schools
to get higher results.”
c. Invest more in
early childhood--He believes firmly that more money should be
spent on early childhood, and that there needs to be more attention paid
to it. “If I had to choose a dollar over there (in early-childhood) or a
dollar for higher ed, I’d choose early childhood.” But the way money would
be spent is different than the institutional subsidy for colleges and
universities. “It is not a system—it is a collection of independent
people. It is consumer-driven.”
d. Design systems
that are highly responsive and sensitive to cost. “Deal with
internal design of schools and system design” of both MnSCU and the
University of Minnesota. “We cannot keep taking out $200 million, year
after year and sustain a model of so many institutions.” He didn’t know
how to change this, but said that groups outside of the system need to
provide the vision and pressure to scale down.
e. Get at the cost for families by enabling
students to earn a degree more quickly--“We
should get very real about alignment of K-12 and higher ed,” Bruininks
said, including more use of Post Secondary Enrollment Options (PSEO),
college in the schools, and Advance Placement courses. “The average
student is already coming to the U with 15 credits,” he said. Even so,
families are not now using this as a way to save money. “They’re not
saving the tuition, instead they’re maxing out their credits and double
majoring or taking on multiple minors.”
f. End high
school at grade 10?--“You said many years ago,” a member
observed, “that students should be able to end high school at grade 10. Do
you still feel that way?” “If we are going to cope with the new normal,”
Bruininks replied, “we are going to need to create more interconnections
between these systems.” But simply shortening high school isn’t the
answer, since students graduating from high school today are often
underprepared Again, he emphasized the need for college readiness and the
opportunity for students to take courses in those latter years of high
school that would prepare them for the rigors of postsecondary education,
earn them college credit, and apply to their liberal education
requirements or directly to their degree.
g. Pare down the number of
institutions--“We need to revisit the charter we have
for higher education in the state,” Bruininks said. “We have many cost
centers with marginal results.” Over 300 school districts and public
post-secondary institutions based on geography; not need.
“In 1972 the
legislature decided to place an institution within 35 miles of
every homestead in the state. This is not sustainable.”
“The University of
Minnesota is the research/land-grant institution of the state. We need to
protect this to thrive as a state. This is indispensable in the global
economy—its centrality and interdependence with the state. I’m concerned
we won’t stay in this position” nationally/internationally the way
resources are eroding now.
Bruininks points to
the state’s capital projects to make his point. “Historically the
university would receive 15 percent of funding in the state’s bill for
capital projects. The investments are supposed to be for projects of
‘significant public importance.’ The House bill just drafted gives us 7.5
percent.” He mentioned projects that, while legitimate, seemed of less
pressing importance compared to the University. “You put a dollar in the
University, we’ll give you four. We leverage it.”
5. Minnesota’s edge will be brainpower and a culture of innovation--There
are two driving forces in the global economy, Bruininks said, that the
state and the university need to keep their eyes on: brainpower and a
culture of innovation. “A culture of innovation is necessary breed
homegrown successes. The best businesses in Minnesota are started here.
Rarely do they locate here from somewhere else.
“We can’t cut our way
to a more creative future. Reform and redesign of systems must be our top
priority. That is a hard thing for public systems—it’s hard enough for the
private sector, which must do it every day.”
The political
environment is a challenge, he argued. “If we could turn back to the age
of Elmer Andersen, when it was less polarized, with groups that came up
with ideas,” it would aid the process.
6. Higher education is resistant to change--He
acknowledged that higher education is one of those systems that does not
want to change. He paraphrased James O’Toole: “‘Academia is the one place
on Earth where change is resisted as a matter of great principle.’”
7. Federal earmarking makes for unwise
spending--“Look
at the capital expenditure bill that was passed recently only to be pulled
back—there was one project (for higher ed. institutions) in every
congressional district. That is not a strategic way to go about funding
higher ed. Each one of these projects has a 25-year debt tail. The
demographics driving these projects today will be decreasing during these
years.”
8. Public systems should assess themselves
against what they value with great discipline--
The University pegs
itself to the top schools in the country and pursues goals. “We benchmark
with discipline to top public research universities,” Bruininks said, “and
private universities, too. Great institutions measure what they value.”
9. Advantages of contracting services?--The
university can contract with service providers, a member suggested, for
remedial work or online work. It already contracts at the faculty level
with adjuncts. They have done it with their partnership with Fairview
hospitals.
“The Fairview
contracting model has worked well, and is becoming a national model. But
the issue of how you deal with cost isn’t to do-it-yourself or outsource,”
it is in what is done and how it is done. Contracting creates competition,
which is itself a redesign in strategy—and results in redesigns of how
things are done. Bruininks leveraged that to make the case for stronger
state support. “Large amounts of revenue go out through competitive grants
and processes, creating private jobs. We need to protect that (funding).”
10. The University of Minnesota has
decisions to make about how it will incorporate online learning--“Talk
a bit about the new business model of online learning,” a member asked,
“and for-profit hybrids, and what that means for the university.”
Bruininks expressed
skepticism that online learning alone will lower the cost-curve of higher
education. “Technology is not a panacea,” he said. “Beware of the people
who try to sell it as that.” But “it will change the way people teach and
learn, including more differentiated staffing.”
The university’s focus
is on what Bruininks called “blended learning,,” working to enrich the
classroom experience through interactive technologies. Faculty, developing
online components independently for their own courses, drives the online
side of the university.
Asked about their
uptake of new electronics and information technologies, Bruininks said,
“We spend a lot of money on technology,” and while they could be doing
more, they have “really leveraged technology in niches—in dentistry and
through a research partnership with IBM,” For example.
11. Is the “U” competing with online
institutions?--A member asked if they are trying to compete
with Capella, an online university with its physical headquarters downtown
Minneapolis, that enrolls 28,000 students worldwide.
Bruininks responded
that they are not competing directly, and again emphasized the
University’s blended approach. “People don’t come to the University of
Minnesota for online courses.” The university provides student services
with a technological component, and their primary pedagogy is still
lecture. “We have a new science building that has highly interactive
learning in and out of the classroom.” They are looking to add-on more:
“We are bringing in national consultants to strategically grow the
technology of the school.”
12. The university could set up the
e-component of its operations, independently--
Continuing the
discussion of the evolving and growing realm of e-learning, a member asked
Bruininks if he could envision setting up a separate component to the
University. This separate component would be for new models of
teaching/learning, as Dayton Hudson did with the development of Target
stores. If the board of regents wanted to, could they set up a separate
operation?
“Yes,” they could, he
replied, and, “it would most likely report to the executive office.” A
member cut in that in the case of Dayton Hudson/Target, the board did it
differently. They had two executives—one for the department store side of
the corporation, and the other for the upstart retail. “Well, it could.”
Bruininks said to this. “We did it with a the UMore Park project,” the
effort near Rosemount. That effort involved setting up a separate
corporation for the new project (see: http://tinyurl.com/yzu5pkx).
What is different
about the Dayton-Hudson example, a member noted, was that they had two
different executives each accountable for one side of the corporation’s
strategy. One did department stores, the other discount retail; two
different business models. Both reported to the board, which understood
both may not make it, but one probably would. What they did was set up a
new structure, with quasi-independence (see a model of this here: http://tinyurl.com/yjj6gas).
A member asked
Bruininks if he could see the university contracting with existing online
providers should they decide to enter that market aggressively—instead of
building out their own program. Would the University of Minnesota ever set
up an e-education component of its operations by following this strategy?
“It might,” he replied.
D.
Closing
“Getting back to
‘big-system’ redesign issues in the state” is important, he concluded. “We
need to do it again. We need to be a state that works.” When asked what he
proposes to be done, he said, “I would focus strategy on college readiness
and early childhood, via redesign of the systems.”
When Mr. Bruininks
retires in June 2011 year he plans to do “what we’re doing here,” at the
Civic Caucus session, and “work on issues of big public concern.”
Particularly, “institutions of governance.”
The chair thanked the
speaker for taking time to visit with the Civic Caucus, and for his candid
thoughts today.
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