text:
An Urgent Call For
The Report o f
The Governor's Task Force
on Higher Education
absol ute1.v v i t a l tl
era a
f u t u r e
and community col 1 eg
Governor's Task Force on Hiqher Education
Warren S. Rustand, Chairman
December 2000
The Honorable Jane Dee Hull
Governor, State of Arizona
1700 West Washington Street
Phoenix, Arizona 85007
Dear Governor Hull:
As members of the Governor's Task Force on Higher Education, we accepted your charge to identify
and address the higher education needs of Arizona through 2020. For more than a year, we have heard
presentations, studied reports, and debated a great many issues concerning the future of postsecondary
education in our state. The enclosed report represents the culmination of those efforts.
The report is based on the belief that Arizona faces a grave risk if it fails to become a leader in the new
global, knowledge-based economy. The citizens of the State of Arizona will surely be left behind if we
are not prepared to contribute to, and benefit from, the changes that lie ahead. The Task Force is
convinced that the public and private institutions of higher education in Arizona are the keys to
developing the workforce and to strengthening our economy. Because time is of the essence in
addressing these issues, our report is issued as an urgent call for action.
The Task Force recommends three strategies for achieving the outcomes we all desire for Arizona.
These are (1) to increase student participation in higher education, (2) to increase the research and
business development provided by higher education, and (3) to increase the capacity and productivity of
our institutions of higher education. These strategies are mutually interdependent, but none can be
implemented without an increased commitment to investment, outcomes, and accountability.
The report is focused upon the most important higher education issues in Arizona for the next twenty
years. It describes specific initiatives that represent the best thinking of our public and private sectors.
Additional concerns and suggestions will surely emerge over time, but the recommendations we propose
address crucial, fundamental issues that must be resolved as we move into the 21st century.
As members of the Governor's Task Force on Higher Education, we are proud to fulfill our charge by
submitting this report to you and to the citizens of Arizona.
Warren S. Rustand
Enclosure: Arizona at Risk: An Urgent Call for Action
Copy To: Citizens of Arizona
Governor's Task Force on Higher Education-http:llwww.gtfhe.state.az.usl
Governor's Task Force on Hiaher Education
Warren S. Rustand, Chairman
The urgent need for action
The State of Arizona should compete in the new, global, knowledge-based economy by adopting and
supporting a plan of action that recognizes the central role of higher education in the preparation of
the workforce and the development of innovation. The governor's task force recommends the
following strategies and initiatives:
Strategy I: Increase Participation
Universal Continuing Access
Increase programs of early awareness and outreach through state matching funds for federal grants.
Provide ACE (Arizona College Education) grants for high school graduates who are going to community colleges,
or completing 2-year programs, or unconditionally admissible and going to in-state public or private universities.
Provide full support services for Arizona students transferring from a community college to a university.
An Excellent System of Higher Education
Redirect some baccalaureate degree-seeking students within the university system.
Direct some baccalaureate degree-seeking students through the community colleges.
Maintain open admission to community colleges for h n ahi gh school graduam.
Workforce Development Through Learner-centered Academic Programs
Enhance adult education by transferring programs to the community colleges and increasing funding.
Provide New Economy Training for Gainful Employment ("NET-Gain!") through the community colleges.
Prepare a globally competent workforce by internationalizing learning at the community colleges.
Strengthen the math and science teacher pipeline through financial incentives, matching grants and e-learning
* Increase workforce development in engineering and science through financial incentives and public relations.
Strategy II: Increase Research and Business Development
Preparation for the New Economy
Strengthen tri-university initiatives on bioscience and biotechnology.
Strengthen tri-university initiatives on information science and information technology.
Strengthen ASU initiatives on materials science and manufadwing.
Strengthen NAU initiatives on environmental engineering and environmental sciences.
Strengthen UA initiatives on water sustainability and optics.
Enhance the Community College Small Business Development Center Network.
Expand state tax credits for employee-training costs incurred by small businesses.
Governor's Task Force on Higher Education-http://www.gtfhe.state.az.us/
Governor's Task Force on Higher Education/Recommendations/ page 2
Strategy IIk Increase Capacity and Productivity
Enhancement of Human Resources
Raise university faculty salaries to the 50& percentile of each university's Board-approved peer institutions.
Increase the number of full-time faculty at the community colleges and d ecom munity college faculty
salaries more competitive.
Management of Capital Assets
Eliminate the university backlog of deferred maintenance and increase capacity for education and research.
Increase support for community college state aid capital funds to repair and maintain state-owned buildings.
Enhancement and Utilization of Information Technology
Continue to expand the community college Arizona Learning Systems to increase access to distance learning.
Develop the university information technology infrastructure to enhance delivery of instruction.
Make critical information technology staff salaries more competitive at all institutions of higher education.
Establish the Arizona Regents University to enhance the workforce through technologydelivered education.
Strengthen cooperation throughout public higher education in offering e-learning to citizens of the state.
The Need for Investment, Accountability and Outcomes
Improved Funding Mechanisms
Revise funding formulas and incentive mechanisms to strengthen public higher education in Arizona.
Enhance support from multiple revenue streams for all public institutions of higher education.
Collaboration Between Education Sectors
Develop an articulated master plan for public education, as recommended by the Arizona Town Hall.
Review current governance structures and relationships to determine their adequacy for implementing the
articulated master plan for public education in h n a .
Accountability and Continued Contribution to the Productivity of the State
Refine, adopt and publish performance measures for each major initiative in this plan of action.
Governor's Task Force on Higher Education-http://www.gtfhe.state.az.us/
December 2000
Tagk Farce Members
Warpen Wwtanki, Task fo~ceC hairman
Manedtig Pamer d H@r!h$"osd
8 Capital Rarte~s
8Ni&~las5. Ba)ich
Member, 5tate B a d of LXre&a~s
for commumhy ComBges dhrraona
8 Chairman2 State lSoard ~f DMctors
sfor Cmmunltyr CaIIges of Ariama
Chris A. Hemtam
8SDmbav, Arkma klaad af Regenb
8 FrederldP D. cockhart
Ex@cwfive Director, Arizona Priwate Schlwd
' j a i r nM~ iolws
, Executkwe Assistat to the Cownor,
8 Ofice d tdre Covernor
Kathryn L. Munro
8 ChaimanKPO, 5pidgeWe:f
F, QppdaHI
Publisher md CEO, The A~izonaR epuuc
A r i zona a t Risk
An Urgent
Call For A c t i o n
The Report o.
The Governor's Task Force 01
H i gher Educat i 01
Table a f Contents
Governor's Letter to the Citizens of Arizona
Arizona at Risk
The Urgent Need for Action
The Plan for Higher Education
Strategy I: lncrease Participation
Universal Continuing Access
An Excellent System of Higher Education
Workforce Development through
Learner-Centered Academic Programs
Strategy II: lncrease Research and
Business Development 17
Preparation for the New Economy 17
University Research and Technology Transfer Initiatives 17
Community College Business Development Initiatives 24
Strategy 111: Increase Capacity and Productivity 26
Enhancement of Human Resources 26
Management of Capital Assets 28
Enhancement and Utilization of Information Technology 30
Need for Investment, Accountability and Outcomes
Improved Funding Mechanisms
Collaboration Between Education Sectors
Accountability and Continued Contribution
to the Productivity of the State
October 20,2000
To the Citizens of Arizona,
Education continues to be the number one priority of my administration. No other issue is as important to
the long-term success of Arizona. While a fmt-rate K-12 system IS Imperative to ach~eveth is goal, a high-quality,
post-secondary educational system is also critical to our future.
As Arizona continues to grow, it is important to understand how our system of higher education can be better
used to improve our quality of life. We cannot afford to sit back and presume everything will work out for
the best. The public demandk -- and should expect -- pohcymakers to comprehend the issues that will affect
our state for years to come. W eit 1s impossible to forecast every trend, it possible for learned indiv~du-als
to begin to thoroughly examine how best to position ourselves for the future. Failure to plan will waste
limited resources.
The Governor's Task Force on Higher Education was created because I feel long-term solutions can be
found. The task force offers higher-education, business, and community leaders a forum to come together
to address odgolng capital and operational issues in a comprehensive manner.
In order to plan efficiently, I instructed members of this task force to address, ata minimum, the followmg
long-term issues:
How will we serve the higher education needs of Arizona until 2025?
How will we structure higher education to maximize Arizona's economic development potential?
How will we determine what kinds of facilities are needed and where they should be located?
How will we better use technology?
How will we fund Arizona's higher education needs until 2020?
Over this past year I believe the task force succeeded in meeting my charge. I am delighted that policy-make=
for years to come will now have a comprehensive blueprint from which they can shape Arizona's
higher-education system.
The success of this task force is attributed to the strong leadership of its members and its chairman,
Warren S. Rustand. I am also grateful to the countless hours of work committed by the staffs of the Board
of Regents and the State Board of Community Colleges.
Arizona a t Risk
The future of Arizona is at risk. While the rapid
growth of a new, global, information-based economy The A c t i o n P l a n
provides tremendous opportunities for all of
Arizona's citizens, the state is at risk of missing out
on the potential benefits of this economic revolution.
G s kfa ctors for the state include:
Alarmingly high rates at which students
drop out of the educational pipeline.
I A growing economic gap between
"haves" and "have-nots." tgtgg.
An informat~on-basede conomy that
is narrowly concentrated in a few
technology sectors.
A dramatic "brain drain" of
research faculty, scientists a
In the face of these alarming trends and the oppor-tunity
costs they imply, the Governor's Task Force
on Higher Education recommends a plan of action
and seeks public support. This plan is based on
statements of principle and is consistent with other
recommendations, including those in Higher
Education in Arizona for the 2 1st Century, the report
of the Seventy-Sixth Arizona Town Hall and the
Education 2000 ballot referendum proposed by
Governor Jane Dee Hull, referred by the Arizona
Legislature and approved by the voters. Given the
speed with which the current window of opportunity
may close, this request for support, like those in the
other reports, is offered with a sense of great urgency.
crease the amount of ta
hance the human, physical, and
nological capac
igher education.
Commitment and investment are needed at all levels
and by all sectors in order for Arizona to succeed in
this new environment. The support that is needed to
implement this action plan for higher education
includes enhancement of capital formation and rev-enue
sources, along with the improvement of current
funding mechanisms. Increased collaboration
between education sectors, continued contribution
to the productivity of the state, and accountability
for results are also major recommendations.
The Urgent
There is a revolution at hand in the economy of this
state, the nation and the world-an information rev-olution.
At all levels the economy is becoming
more global, more competitive and more infused
with technology. The basis of wealth in this New
Economy is information, the new ideas and innova-tion
on which this economy thrives. People are the
raw material for the production of information. It is
their knowledge and their ability to access and
communicate information that fuel the economic
Education is a key to participation in this economic
revolution, offering the knowledge that is essential for
workers to succeed. It provides the well-trained and
highly skilled labor force that is essential for business
and industry to be competitive. It helps to produce
the research and develop the innovations and tech-niques
that fuel the new, knowledge-based economy.
In the face of this historic economic revolution,
Arizona stands at risk-at risk of marking time, at risk
of slipping backward, at risk of losing out. Key edu-cational
benchmarks and trends in the state are neg-ative,
and the competition from other states and
countries is formidable. Yet Arizona has a strong
foundation on which to build. Great strides are
being made to improve education at the K-12 level
while Arizona's institutions of higher education are
already strong. The people of Arizona are now faced
with a compelling choice-whether or not to utilize
these strengths and mount a vigorous effort to com-pete
in the New Economy. This choice should be
guided by the following principle:
-.-.*=-- ;L*@-= Need FaF ..-.- A e t i on
.: - -- .. .~- ..- - -.-=. -.*sL&&,+ .-.*--..- - ,
Arizona is 49th 1"n the -.s.5.1~ .. ,f= -
nation i n high school *F = -
compl e t i0 %--- ; "
High School Completion Rate by State 1997-1 999,
North Dnkota 2 i Mame 3
Kansas 4 1
M~ssour~ 5 1
Nebraska 6
South Dakota 7
Montana 8
Alaska 9
Hawall 10
Wtsconsln 11
M~nnesota 12
New jersey 13
Connect~cut 14
Matyland 15
Massachusetts 16
Mlchtgan 17
Utah 18
Tennessee 19
Ohlo 20
WestVlrglnle 21
Delaware 22
Indiana 23
Iowa 24
Wyorn~ng 25
Pennsylwanla 26
New Harnpsh~re 27
Vrglnle 28
Washington 29
South Carolma 30
Rhode Island 31
Kentucky 32
Illlnols 33
North Carolma 34
Idaho 35
Oklahoma 36
New Yo+k 37
Flortda 38
Georgta 39
Colorado 40
Alabama 41
Arkansas 42
New Mexico 43
Lours~ana 44
Nlss~sstppl 45
Texas 47
?regon 8 '" ma
dm&. -
of 18-24 Year-Olds Who
Complete High School
The percentage of 18-24 year-olds in the United States who
were high school graduates was 85.5%, averaged over the three
year period from 1997 to 1999. This high school completion
rate ranged from a low of 74.5% in Nevada to 95.3Oh in Vermont.
Source Dropout Rates In the Unlted States: 1999, U.S. Department of
Educat~on,N ational Center for Educat~onS tatistics, November 2000
Note: The horizontal scale for tha chart begins at 20% not at 0%.
Arizona at Risk An Urgent Call for Action
Arizona ranks 47th
among a l l s t a t e s
i n the percent o f
high school graduates
e n r o l l e d i n c o l l e g e
College Continuation Rate by State, 1998
New %&
MRh Ddkotd
Rbwle bburl
W h Cawlima
New MMice
h t h Dahm
L&&na 1
lllrnais i
hnspl4a I
lDelawsra 1
So& Cawtins 1
Mnsar 1
tntfrrw 1
memii 1
b%awin 2
Maine 3
' Puizana 4
Utah 48
Alaska 49
Nevada 50
Oh of High School Graduates
enrolled in College
In 1998, 57% of the 1997-98 public and private high school
graduates in the United States were enrolled in college in the
fall of 1998. The college continuation rates varied widely across
the states. The rate ranged from a low of 37.1 % in Nevada to a
high of 71.5% in Massachusetts. Arizona's college continuation
rate was 45% and ranked 47th among all states.
Source: Postsecondary Education Opportunity, July 2000.
The Governor's Task Force recommends that the
State of Arizona choose to compete in the new,
knowledge-based economy by adopting a plan of
action that recognizes the central role of higher
education in the preparation of the workforce and
the development of innovation. This plan should
outline ways in which Arizona's institutions of high-er
education can be utilized to lift the state to a
new, competitive level. It should describe both the
benefits of such a plan and the support that is
urgently needed for the effort to succeed.
The gap between the
"haves" and "have-nots"
i n Arizona i s widening
15 States Where the Poor Grew Poorer
and fhe Rich Grew Richer
Rhode Island
New Hampshirc
New Yo
I Arizona
Dollar and Percent Change in Average income of Bottom and
Top Fifth of Families, 1988-90 to 1996-98
Note: The horizontal scale for th~sc hart beg~nsa t 20% not at 0%
Source: Economic Pal~cyI nstitutdenter on Budget
and POIICYP rtorities, January 2000.
The Plan f o r
Higher Education
Increase Participation
Raise the level of participation in higher education
I I . Increase Research
and Business Development
Increase the amount of targeted research, technology transfer
and business development provided by higher education
-- I I I I . Increase Capaci t y
and Productivity
Enhance the human, physical, and technological capacity of
institutions of higher education
Arizona at Risk An Urgent Call for Action
STRATEGY I : Increase P a r t i c i p a t i o n
Raise the l e v e l o f p a r t i c i p a t i o n i n higher education 1
The plan is to promote universal, continuing access
to an excellent system of higher education through
the provision of learner-centered programs.
"T'he extent t o whii ch
Wr1z.ona t h r i v e s f n the.
New Ec~lrl~ornwy 61 1' rely
heavisly on wheth'er the
staltje i s able Ls ~ ) ~ r w i d e
a traTnled w ~ r k f u ~ r c e . ~ '
-from the Supplement to Arizona At Risk:
The Report of the Governor's Task Force on Higher Education
Wtni VP:O'%~CI ant in ullng fi~~ecss
The Task Force recommends that the community
colleges and universities strive to increase the rate
at which Arizona high school graduates, especially
from underrepresented groups, participate in higher
education. The goal should be a rate of participation
above the national average.
The State Board of Directors for Community Colleges
and the Board of Regents should work with the State
Board of Education and with local school and com-munity
college district governing boards to ensure
that all high school students have access to the
courses, teachers and curriculum necessary to achieve
the highest possible levels of academic preparation
for higher education and the workforce.
The Task Force endorses the plan of providing univer-sal
access to postsecondary education for all graduates
of Arizona high schools and all incumbent workers
in need of further education or training. Action to
implement this plan should be guided by the follow-ing
Arizona ranks 45th in the relative amount of
state financial aid awarded to undergraduates
hew York 1
Vermont 7
Pennsylvania 3
Ceorgid 4
Illino~$ 5
New Jersey 6
Vlrglnia 7
Mlnliesota 8
Indlan,) 9 I Ohlo 10
~ass~lchus~1n1 s
Color'lclo I2
Iowa 13
Wlscon?ln 14
Washiiiglon 15
Flor~da 16
Marvland 18
~allfornna 19
Rhode Island 20 1
New Mcx~co2 1
Kentucky 22
Uklahonia 23
Ma~ne2 4
Oregon 26
Mlssour~2 7
West Vlrsrn~,2~8 I South Cdrol~nd2 9
Arkdnsas 30
North Carolina 31
Louisiana 32
Tennessee 33
Nevada 34
Kansas 35
North Dakota 36
Trxas 37
Ala~ka3 8
Delaware 39
Alabama 40
New Hampsh~re4
Nebraska 4
State appropriations for state student grant and other financial
aid programs as a proportion of each state's higher education
appropriation-FY 1997.
Source: Postsecondary Educat~onO pportun~tyJ, uly 2000
While n a t i o n a l l y
the r a t e a t which
students continue i n t o
higher education i s
i n c r e a s i n g , i n
Arizona t h a t
r a t e dropped i n
t h e 1990s
Change in College Continuation Rates by State
between 1988-1 998
Rhode lsldnd 5
New Harnpshlre 6
NewYork 7
South Ddkota 8
Oklahoma 9
Utah 10
Idaho I I
Delaware 12
Pennsylvania 13
North Dakota 14
Loulsland IS
Ohlo 16
West Vlrglnla 17
lndlana 18
Connecticut 19
llllnols 20
New Mex~co2 1
Arkansas 22
Mlch~gan2 3
Alaska 25
Wyornlng 26
M,~ryldnd2 7
Vlrg~nla2 8
Colorado 29
Iowa 30
Norrh Carol~na3 1
South Carolma 32
Tennessee 33
Nebraska 34
Florlda 35
Kdnsas 37
Georgl.~ 38
Kentucky 39
W15ronsln 40
Haw,111 41
Alabama 42
W,ishlngton 43
Texas 44
Vermont 45
M~nnesota4 6
C.lllfornla 48
Oregon 49
Arizona 50
Oh Change
10 5 0 5 10 15 20 25
In Arizona, the chances of a 19 year-old enrolling in a college
or university declined between 1988-1998, to 27.7%. Arizona
was last and had the greatest decline in the percent change in
the chance for college by age 19 with a negative rate of -9.4%
The national average increased by 4.1 % for the same period.
Source Postsecondary Educat~onO pporTunrIy, August 2000
Recommendati on
The Task Force recommends that the state promote
early awareness of the benefits and implications of
higher education and increase financial assistance
for qualified students. This financial assistance
should be targeted at needy high school graduates
and structured to provide incentives for preparation
at high school and for completion of academic
programs at the community colleges and at the
universities, by both originating freshmen and
transfer students.
The state should promote more participation in higher
education by working adults through financial
incentives and training programs focused on
preparing the workforce for the new global,
knowledge-based economy. [See Preparation for the
New Economy, page 1 71.
Currently, all Arizona high school graduates have
unconditional admission to community colleges.
However, the Governor's Task Force recommends that
universal access be enhanced by the following specific
Improve the college-going rate of high school
graduates through increased programs of early
intervention and outreach to children of all grades.
Remove financial barriers currently limiting uni-versal
access through the creation and adoption
of Arizona College Education (ACE) grants of
$1,000 to supplement federal Pell Grants, with the
Basic Level awarded to full-time community college
students for each of two years immediately following
graduation from Arizona high schools.
Sustain and increase universal applicability of
academic transfer course credit between public
institutions in Arizona through existing transfer
articulation agreements and support systems,
and by inter-college and inter-university transfer
Extend access to ACE grants for Arizona high
school graduates eligible for direct and uncon-ditional
admission to Arizona's public or private
universities through Continuation Level awards
of $1,000 to supplement federal Pell Grants as
well as university and state grant programs,
where applicable, for each of two years after stu-dents
complete a transfer program at a commu-nity
college, or Achievement Level awards in the
same amount for four years immediately follow-ing
graduation from high school.
Arizona at Rids An Ukgent Call for Adon
To implement these recommendations, a fund
should be established to provide matching support
for the expansion of outreach efforts. The program
should be funded at $500,000 for the initial bienni-um,
with funding future levels determined by the
success of the program. Full state funding for trans-fer
support services would call for a budget of
$992,400 for the next biennium, an increase of
approximately $250,000 over the current bienni-um.
Finally, the initial baseline costs for the ACE
grants include $4.9 million per year for the Basic
Level, $600,000 for the Continuation Level, and
$1.5 million for the Achievement Level. In the
fourth year of implementation, when all three pro-grams
would be fully enrolled, the total cost would
be approximately $12.5 million. Future costs would
depend on enrollment growth.
The Task Force endorses the plan to promote excel-lence
in the performance of students enrolled in the
state's colleges and universities. At the same time,
the state's system of higher education should pro-vide
universal, lifelong access for all high school
graduates. Efforts to implement this plan should be
guided by the following principle:
"Education beyond
high school i s the
key t o a t r a i n e d
workforce. 99
-firam Supphent t~ Arizona At Rkk:
The Repapt d the Governor's Task8Forceo n %her Pd~catim
The Governor's Task Force recommends that the
Board of Regents and the State Board of Directors
for Community Colleges craft policies for admis-sion
that help improve student success.
The Governor's Task Force recommends that aca-demic
excellence be enhanced by the following
specific proposals:
Redirect Some Baccalaureate-Seeking Students
within the University System
Some university campuses are nearing the practical
limit of their capacity to accommodate students. In
order to optimize the utilization of campus and faculty
resources, the Board of Regents should permit the
universities to redirect students, within and beyond the
university system, in a manner that maintains as much
flexibility as possible both for individual campuses
and prospective students.
Direct Some Baccalaureate-Seeking Students
through the Community Colleges
About half of the students who enter one of the pub-lic
universities as freshmen leave before completing
a degree program at that university. If some of the
students who are most likely not to complete bac-calaureate
degrees were redirected instead to the
community colleges, they would be given the
opportunity to earn certificate or associate's degrees
before entering the workforce. Some might be
"As the New Economy
surges forward,
vul nerabl e adults with
tnterrupted and minimal
education will be
among the most likely
t o be passed by."
-from the Supplement to Arizona At Risk:
The Report of the Governor's Task Force on Hlgher Education
encouraged by a successful lower-division experience
and transfer to complete baccalaureate degrees. The
Board of Regents should consider the use of more
rigorous admission standards for university freshmen
in order to increase the percentage of students who
continue on to complete academic programs at either
a community college or a university.
The recommendation should be targeted toward
those students who seek a university degree and
would benefit from a community college foundation.
Implementation of this recommendation is contin-gent
upon changes in funding mechanisms to
ensure that the loss of potential students does not
adversely impact the universities' funding base.
Maintain Open Admission to the Community
Colleges for High School Graduates
The community colleges are encouraged to retain
their traditional policy of open admissions for ail
high school graduates. Information about changes
to university admission standards under considera-tion
by the Board of Regents should be shared with
the State Board of Directors, so that the community
colleges can make necessary adjustments to accom-modate
the impact of such changes on student
enrollments and curricular requirements.
These recommendations underscore the need
described above to ensure ease of transfer by fully
funding transfer student support systems.
Arizona at Risk An Urgent Call for Action
The Task Force supports current plans for academic
programs in higher education to be more thorough-ly
and systematically learner-centered. Efforts to
prepare students for success in work and in life
through learner-centered education should be guid-ed
by the following principle:
earner-centered Programs
Focus existing and new academic programs or
the learning needs of students and the know1
dge, abilities and skills they require for succes:
I the New Economy and in their family and civic
lives. As a result af this effort, learning will be more
outcomes-based, self-paced, team-centered
active, and experiential.
. -
In keeping with their historic and continuing focus
on learner-centered education, the community col-leges
offer three initiatives targeted to increase
opportunities for learners who need additional edu-cation
and training to obtain, retain, and enhance
their contributions to the Arizona workforce.
Faculty at the public universities have been incor-porating
learner-centered education into individual
courses for a number of years. Together with the
Board of Regents, the universities are now promot-ing
learner-centered education in a more systemat-ic
and deliberative fashion throughout all academic
programs. For example, the university missions and
strategic plans have been revised to support these
changes, and faculty representatives have devel-oped
a Web site to promote the communication of
best practices in learner-centered education.
Further, the two state higher education boards have
met jointly to share information and plans for pro-moting
learner-centered programs.
In addition, as described in the section on
Enhancement and Utilization of Information
Technology, both community colleges and universi-ties
utilize information technology to address the
needs of life-long learners for education any time
and any place.
Recommendati on
The Governor's Task Force supports current plans
for the community colleges and universities to
focus academic programs more thoroughly and
systematically on the needs of learners and their
prospective employers. The Task Force also recom-mends
that the institutions of higher education
develop specific programs to better meet the work-force
needs of the state as it transitions into the
New Economy.
The Governar's Task Force recommends that work-force
development through learner-centered programs
be enhanced by the following specific proposals:
Arizona has long recognized the dynamic relation-ship
between adult education and workforce
development. Adult education has always been a
keystone of the Arizona community college mission
and, as Arizona prepares to compete in the New
Economy, the traditional community college role of
supplying a much-needed, expanded pool of
trained employees takes on new urgency. Arizona is
home to nearly 800,000 adults who are marginally
literate and in pressing need of basic education to
improve their socioeconomic status. Less than 8%
of these adults (a total of around 60,000 individu-als)
are being served by current education pro-grams.
The need for adult education has clearly out-paced
Arizona's ability to respond and is one of
Arizona's most pressing issues.
Arizona must bridge the gap between its educated
and literate citizens and those who are struggling
with the most basic skills required to survive and to
flourish in the New Economy. Two immediate steps
will assist in this effort:
1. Align adult education with the community col-lege
by transferring administration of the state's
adult basic education programs from the
Arizona Department of Education, Division of
Adult Education, to the State Board of Directors
for Community Colleges of Arizona.
2. Dramatically increase the state share of funding
for adult basic education.
It is proposed that deliberations begin at once to
allow Arizona cammunity colleges to assume pri-mary
responsibility for adult basic education and
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--Robert lensen, Chancellor,
Pima County Community College District
literacy services. Discussion should be conducted by
a study committee composed of representatives from:
Arizona Department of Education
State Board of EducationNocational Education
State Board of Directors for Community
Colleges of Arizona
Local county Community College District
Governing Boards
Local K-12 District Governing Boards
Governing Boards from Community-Based
Ultimately, a statutory change would be required to
support the proposed movement of adult education
programs and services. The Governor and the
Arizona Legislature should work together to dra-matically
and steadily increase state funding for
adult education.
The community college-centered adult education
effort proposed by this initiative would operate in
partnership with other agencies. The intent would
be to complement, supplement, enhance, and
expand access on the part of adults in need of fur-ther
education, not to supplant or disrupt successful
existing programs.
State funding for adult basic education should be
nearly doubled in the first year of the new budget
biennium: an increase from $4.6 million to $8.2
million for FY 2002. To comply with mandates of
federal legislation for adult education services,
Arizona has developed "The Five Year State Plan for
Adult Education," approved by the State Board of
Education and the Governor. To fully implement
this plan, and to expand system capacity to serve an
ever-growing need, funding should be incrementally
increased until the total state appropriation for adult
education reaches $25 million over four years. Such
funding would allow Arizona to focus essential
efforts on increasing the basic skills and New
Economy employability of a significant portion of
the state's adult population.
Arizona at Risk An Urgent Call for Action
New Economy T r a i n i n g f o r
Gainful Employment (NET-Gain!)
Arizona must ensure access to training and educa-tion
so that all citizens will obtain marketable skills
and gainful employment. Preparing workers to meet
real world challenges and changes in the workplace
is, by definition, a vibrant form of learner-centered
Community colleges throughout Arizona face
increasing demands to remain current in technolo-gy
and curriculum while delivering programs that
are relevant for evolving and emerging industries.
Alliances among educators, business, and govern-ment
represent a key approach to addressing these
issues and to leveraging intellectual and capital
resources. Additional incentives are needed to
ensure that colleges and businesses expand and
enhance their collaborative efforts to meet increas-ing
demand for well-trained workers.
Initiative: Incentives for Workforce
Arizona should enact a program to provide incen-tive
funding in support of collaborative partnerships
leading to New Economy workforce development
programs. For purposes of discussion, this program
will be called New Economy Training for Gainful
Employment (NET-Gain!).
The basic objectives of NET-Gain! are to facilitate
collaborative training partnerships among Arizona
public community colleges, Arizona businesses,
and other agencies that:
Leverage intellectual, capital, and human
Promote shared responsibilities for student
competency attainment.
Target job-critical positions.
Address continuing education requirements for
the existing and emerging workforce.
To advance the NET-Gain! concept, sufficient state
funding is needed to promote partnership activities
throughout the state. One vital need for funding will
be to promote workforce partnerships in rural areas
with less dense employer concentrations and small-er
percentages of high-tech, high-wage industries. It
is vital that these rural areas, which are closely
served by Arizona community colleges, be encour-aged
through funding and other incentives to estab-lish
partnerships to provide access to workforce
training skills in order to avoid large populations of
"have-not" employees. It is estimated that an annu-al
expenditure of $3.5 million would be required to
fully fund NET-Gain! activities. With a generous
state allocation and/or if the state provided other
incentives to businesses and colleges, a portion of
this necessary funding could be leveraged from
other funding sources.
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Global l y Competent Workforce
The growth and development of Arizona businesses
are increasingly reliant on doing business and trade
with other nations. Arizona's role as a player in the
realm of global business requires the state to have
on hand a strong cadre of employees with transna-tional
skills and competencies. The state is in a par-ticularly
advantageous position to benefit from the
potential positive effects of the North American Free
Trade Agreement (NAFTA).
Initiative: International Partnerships and
Exchange Programs
Perhaps no aspect of education and training
requires such a learner-centered approach as does
instruction for global and multicultural competence.
It is important that community colleges as well as
universities develop a global curricula that requires
learners to embrace technology, business, and com-munications
across borders, and also leads them to
understand the implications of environmental
issues, space exploration, poverty, resource alloca-tion.
and international conflicts.
Accomplishing these goals with a community col-lege
student body that is not affluent and not free to
travel the world due to work, family and home obli-gations
is truly a challenge. While it is possible to
develop opportunities for very short-term study
abroad, it is necessary to create other approaches to
accomplish the ambitious learner-centered goal of
global competence.
Resources are needed to support the following
efforts to internationalize learning in Arizona's com-munity
colleges and address the need of Arizona
companies for workers who are competent to func-tion
in the global workplace:
Faculty exchange programs between Arizona
community college faculty/staff and facultylstaff
at colleges and universities in other countries.
Partnerships with Arizona companies that con-duct
business internationally.
Community college collaboration with organi-zations
such as the Border Trade Alliance, which
promotes international trade and understanding
of the North American Free Trade Agreement
(NAFTA) between the United States and Mexico.
It is recommended that an lnstitute for International
Leadership in Arizona's Community Colleges be
established in conjunction with Arizona businesses.
The lnstitute will provide experiences and programs
to develop transnational skills in current and future
employees. A steering committee composed of
equal representation from Arizona businesdindus-try
and Arizona public community colleges will
direct the lnstitute by establishing guidelines and
procedures for developing collaborative college1
business/industry programs. Committee members
should largely be individuals with international
experience. Arizona businesses would be asked to
contribute a minimum of 20% cash and in-kind
services annually in support of the Institute. The
state would be asked to contribute 80% to match
the 20% businesslindustry contribution. Costs are
estimated at $2 million annually.
Math and Science Teacher
P i pel i ne
Arizona has a great need for qualified teachers in
the areas of math and science. These teachers are in
demand because of the workforce needs of the New
Economy for employees with competencies in
math, science, technology and engineering. This
need is underscored by the relatively high percent-age
of students currently admitted to the public uni-versities
with deficiencies in these subject areas.
Arizona's public and private universities have been
increasing their efforts to recruit and to graduate
more teachers through traditional teacher prepara-tion
programs. In addition, many institutions have
developed alternative, accelerated programs to
attract and prepare prospective teachers who
already have baccalaureate degrees in math or sci-ence.
However, there are still not enough new
teachers coming through the pipeline and too many
of those who begin a career in teaching are leaving
the state or the field in the first few years. The grow-ing
numbers of teaching positions unfilled at the
start of the school year forces greater use of emer-gency
certifications, long-term substitutes and
teachers assigned to classes outside their area of
The teacher shortage experienced in Arizona is also
occurring on a national level. To address this shortage,
there is clearly a need to enhance the status of
teaching as a profession, and some states are mov-ing
to increase teacher salaries to competitive lev-els.
In Arizona the salaries offered to teachers are
still relatively low, having slipped to 33rd out of the
50 states over the last decade. Even with the recent
passage of Proposition 301, it will continue to be
difficult to recruit teachers from other states. This sit-uation
raises the question of how the state can stim-ulate
enrollment, graduation, and continued
employment of teachers, especially in the areas of
mathematics and science.
Initiative to Increase the Supply of Teachers
through Traditional Teacher Preparation
The universities, community colleges and high
schools should work together to create programs
that encourage students to explore teaching as a
profession and ensure that teacher preparation is
provided at all levels of instruction. To stimulate
enrollment by individuals who have already
Arizona at Risk An Urgent Call for Action
demonstrated an interest in teaching, the state
should provide tuition assistance for teacher aides
or teachers with emergency certifications who are
working toward full certification.
lnitiative to lncrease the Supply of
Teachers through Alternative Teacher
Preparation Programs and Alternative
Teacher Certification
The university, community college, and K-12 systems
should work together to expand the offering of
alternative certification programs and to explore the
need for alrernative certification options. Students
who have a bachelor's degree in an academic subject
other than education may want to earn a teaching
certificate through accelerated certification pro-grams.
The state should provide funding for two
semesters of paid service as mentored teachers and
for teachers to serve as mentors to these post-bac-calaureate
degree student teachers.
lnitiative to Stimulate and Support Teacher
Preparation through both Traditional and
Alternative Preparation Programs
To address the issue of distributional shortages, the
state should provide funding for college scholar-ships
(or loan forgiveness programs) for aspiring
teachers who prepare to teach in a high-need sub-ject
area, such as math and science, who agree to
teach in a geographic area with shortages or in a
low-performing school after obtaining certification.
The state should also support a centralized data col-lection
function to enable projection and tracking
of teacher supply, demand and shortages through-out
the state.
To increase the overall supply of qualified teachers
in Arizona, the state should identify the funding
necessary to offer competitive salaries for teachers
in Arizona. State funding should be sought to lever-age
existing and new federal teacher preparation
grants. Tax credits should be made available to cor-porations
that partner with school districts to offer
math and science teachers summer jobs that relate
to their expertise. The state should also provide tax
credits for public and private school teachers with
at least four years of service, as an incentive to
reduce turnover.
Finally, to provide increased access to education,
development and support for aspiring, new and
continuing teachers, teacher preparation programs
should consider greater utilization of information
technology. At the same time, these programs can
serve to demonstrate to teachers and others the use
and benefits of e-learning.
)ssible Performance Measure
lncrease in the number of math and science
teaching degrees awarded at the universities
lncrease in the number of alternative
certification options and availability of
electronic delivery of courses and program
Workforce Development In
Engi neeri ng And Sci ence
To thrive in the New Economy, the state must stim-ulate
enrollment, graduation, and Arizona employ-ment
of people in key fields in engineering and sci-ence.
Aside from the Center for Low Power
Electronics, the State of Arizona has not been a
major player in these partnerships outside of the
standard university budgets. Arizona ranks in the
bottom 20% of all states in per-capita spending on
cooperative technology programs. The relocation to
Arizona of new high-tech industries and the expan-sion
of existing Arizona high-tech industries hinge
to a great extent on the ability of its colleges and
universities to supply a well-educated workforce,
primarily in engineering, science and business. All
major high-tech industries in the State of Arizona
(Motorola, Intel, IBM, Allied Signal/Honeywell,
Raytheon, etc.) depend on the availability of engi-neering
and science (including IT) talent.
The state should provide a $1,000-$5,000 contribu-tion
per student to a Professional Workforce
Development Program at each university. Each new
engineering and science graduate in approved
majors, including math and science education,
would be eligible. Graduates must be employed in
Arizona or enrolled in an advanced degree program
in Arizona in one of these same fields within one
year of graduation.
The state should provide partial support for intern-ships
in high-tech fields for college and university
students in selected majors.
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-, the know1 edge economy
- are not as strong
as i n o t h e r l e a d i n g
techno1 ogy s t a t e s
Knowledge Industry Employment Concentrations
Communications Computer1 Healthcare
Services Electronics Technology
The state should match corporate contributions to
scholarship support for students successfully pursuing
degrees in engineering and science.
The state should provide financial incentives to col-leges
offering engineering and science degrees who
participate in pre-college outreach programs.
The state should develop a public relations campaign,
statewide and preferably nationwide, highlighting
Arizona's commitment to and development of engi-neering
and science talent.
2.1 5 1.50 0.93
ihfgradb 1.90 1.22 0.99
NfW $me! 0.64 2.25 1.39
Minne$@a 1.82 1.39 1.33
Texas 1.12 1.28 0.71 0.85
New Yo& 0.99 0.76 1.12 1.02 1.85 2
Pennsylvania 0.80 0.65 1.07 1.24 1.30 2
Florida 0.93 0.75 0.96 0.91 0.96 0
Michigan 0.24 0.7 0
North Carolina
An employment concentration above 1.1 means that the area's share of the state's jobs is at least 1.1 times higher than the national
average. Arizona has just one area of strength: computer/electronics.
Source. Index of the Massachusetts lnnovat~onE conomy, 1998.
Arizona at Risk An Urgent Call for Action
STRATEGY 11 : Increase Research and
Busd n~ess Devel opment
Increase the amount o f t a r g e t e d research, technology
&&$% t r a n s f e r and business and workforce development provided by higher education
small business in the state should also be imple-mented
through community college programs and
legislative support.
Arizona is faced with a crucial decision regarding
the role it is to play in the New Economy. Arizona's
higher education system is a vital resource in meet-ing
the state's urgent need to prepare for success.
The old Industrial Age is giving way to a new digi-tal
age, and a narrow window of opportunity has
opened for a few states to emerge as world leaders.
To become such a leader, Arizona must act with
great urgency to position the state and its citizens
for economic success.
Recornrnendati on
The Governor's Task Force recommends the develop-ment
of partnerships and the targeting of invest-ments
in a series of university research initiatives that
directly support the state's existing industry clusters.
A parallel effort to enhance the development of
These recommendations should be implemented
through the following specific initiatives:
U Rv~ar 'slty Research -a.nid
liiec k~m1a1 ogy 7r ? BWSf e r
Inn t f a t 9 yes
To provide support for the industry clusters identified
by the Governor's Strategic Plan for Economic
Development (GSPED), the university research and
technology transfer initiatives cover a broad range
of fields:
Bio-Science and Technology (human health, plant
sciences, molecular engineering, anti-cancer research,
combating infectious diseases, aging, brain research)
Information Science and Technology (software and
hardware development, telecommunications, artifi-cial
intelligence, e-learning, Internet applications)
Environmental Engineering (water reclamation, sus-tainable
energy, advanced materials)
Environmental Sciences (research, education, out-reach,
alternative energy sources, new construction
techniques, new waste treatment approaches)
Manufacturing (semiconductors, aerospace tech-nologies,
environmental quality)
Materials (ultra small and ultra light, high temperature,
high pressure)
Optics (lasers, optical fibers, telescope lenses and
mirrors, new glass and polymers)
Water Sustainability (semi-arid issues, water quality,
and climate impact on resources)
Plasucs &
Corn onents
Arizona University System (AUS) Research Support for Arizona Industry
The connections illustrated above show the many ways in which the universities' research initiatives (displayed in the middle tier) support
Arizona's existing CSPED industry clusters (displayed in the upper and lower tiers).
B i osci ence and B i otechnol ogy
Biomedically related biotechnology is rapidly
becoming a major economic driver not only in the
U.S. but throughout the world. There is broad agree-ment
that we are moving rapidly into the "age of
biology" powered by exciting advancements in
molecular technologies. These technologies will
empower unprecedented advances in our funda-mental
understanding of biology, especially medi-cine
and agriculture. They can lead to major break-throughs
in the treatment of disease, development
of new drugs and medical devices, and improving
the quality of life. This emerging age of biology will
continue to spawn new industries at an unprece-dented
Arizona State University Initiatives
To enhance ongoing programs and facilitate inter-actions
with the medical community and biomed-ical/
biotechnology industrial base in the Phoenix
area, Arizona State University is creating the
Arizona Biomedical, Behavioral and Health
Institute. The Institute will initially be comprised of
three major research elements: Bioengineering,
Stress and Lifespan Development, and Basic Bio-logical
Processes including Functional Genomics
and Structural Biology. The proposed initiative
focuses on Bioengineering and Basic Biological
Processes, the areas of research most closely related
to the New Economy.
Northern Arizona University Initiatives
There is not only an unmet need for highly techno-logically
trained individuals in Northern Arizona,
but there is also a need for the small firms that can
become the nucleus to draw biotech firms to the
area. The proposed Northern Arizona Center for
Biotechnology and Human Welfare would act as a
catalyst to satisfy this need. The proposed center
would include four major interdisciplinary foci that
are supported by a broad array of bioscience
research by NAU faculty: 1) biotechnology, plants
and human health; 2) emerging infectious diseases;
3) heavy metals and cancer; and 4) biotechnology,
genetic medicine and society.
Arizona at Risk An Urgent Call for Action
Arizona University System
The University of Arizona Initiatives
The University of Arizona has significant research
capabilities in basic life sciences, the physical sci-ences,
mathematics, biomedical engineering, and
clinical activities across the campus. There are also
important developing capabilities in the techniques
of Genomics, Proteomics and Bioinformatics in
several parts of the campus. The proposed Institute
for Biomedical Science and Biotechnology will
bring these technologies to the College of
Medicine, facilitating specific areas of research and
technology, and developing graduate training pro-grams
that stress the interdisciplinary nature of life
science research of the future. This proposal also
includes the establishment of a MRI Center for
Cognition and Neuroimaging that would house a
high field-strength research-dedicated magnet.
. .
ossible Perforr..-.. Measur~
'.V. : ... . i ;.+ ..,,. . . . . * .., 2.m ~:. *
Optics Cluster
Informati on Science and
Techno1 ogy
Information technologies are an integral part of
people's lives, businesses, and society. Transforming
the way we deal with information requires significant
improvements in data access methods, including high
performance information systems and tools to help
individuals locate information and present, inte-grate,
and use the information in meaningful ways.
Plastics &
vanced Composi
High-speed computers and networks are enabling
scientific discovery across a broad spectrum -
from mapping the human brain to modeling climat-ic
change. Research problems are becoming more
complex and interdisciplinary in nature. As a result,
researchers are finding innovative ways to collabo-rate
with their colleagues across the globe. Key
research technologies include high-end computing
to allow higher fidelity models of complex physical
phenomena, advances in collaborative environ-ments,
visualization of complex data sets, data min-ing
techniques and management of very large data
sets and databases.
Arizona State University Initiatives
ASU, in partnership with industry, intends to devel-op
a Center for Embedded Systems. Embedded sys-tems
are the lifeblood of semi-conductor manufac-turers
such as Motorola and Intel, in addition to
other manufacturers in the state. Embedded systems
software is required by almost every product imag-ined
from cell phones to automobiles to refrigera-tors.
For these industries to grow and prosper, it is
essential that ASU 1) advances this technology
through research, and 2) trains a sufficient cadre of
engineers in Arizona capable of meeting the needs
of employers. ASU will also work collaboratively
with industry to 1) build a college-wide emphasis
on software that will provide an intellectual focus
for software research, 2) provide an investment
focus in software research and development for
Arizona industry and commerce, 3) provide leader-ship
in the development of undergraduate and grad-uate
educational programs in software engineering
and closely related disciplines, and 4) provide lead-ership
in the development of continuing education-al
programs for industry and commerce in the areas
of software engineering and software-intensive
applications. ASU will also enhance its efforts in
telecommunications research.
Northern Arizona University Initiatives
NAUts e-Learning Initiative will use information
technology to transform the teaching and learning
process for students and professionals alike. By
partnering with industry leaders, the Colleges of
Business Administration and Engineering and
Technology will create learning environments that
allow students to experience and function in a net-worked
world. Business and engineering students
will practice their professions in a rich virtual envi-ronment
where they will team up with other stu-dents,
faculty and practicing professionals from all
over the world to tackle real-world problems using
leading-edge applications and technologies. Another
vital component of this initiative is the e-Learning
Park, a facility that will foster a rich intellectual and
educational exchange among its participants while
being mindful of issues of private enterprise.
University of Arizona Initiatives
The UA's initiative focuses on education, research and
technology transfer related to foundations and
applications of software and information science and
technology. The core functions of this initiative are:
1 ) Education
Offer degree, certificate and continuing education
programs presenting students with the knowl-edge
and skills to develop and manage a) soft-ware
for a variety of applications, including engi-neering,
business, earth and life sciences and arts
and entertainment, and b) information technolo-gy
for distributed work. Information technology
will be used to create, coordinate and deliver
education across the virtual community of the
universities and industry.
2) Research and Development
Investigate foundational elements of software and
information technology resources for the virtual
workplace through industry and university part-nerships.
3 ) Facilities
Provide resources including high performance
computing and scientific visualization capabili-ties,
digitized learning content, high-speed com-munication
and multimedia facilities and know-how
for partners from the private and public sec-tors
for their own research, development and oper-ational
4) Human Resource Development
Provide opportunities for multi-disciplinary team-work,
internships and fellowships, particularly to
software-educated engineers and managers.
5) Outreach and Technology Transfer
Foster interactions between multi-disciplinary
UA teams and industry, distance-based continu-ing
education, short courses, applications train-ing,
intellectual property and law.
M a t e r i a l s
Arizona State University Initiative on Materials
Science: Ultra Small and Ultra Fast
Faculty at Arizona State University have made sig-nificant
contributions in the emerging field of
nanostructure science and technology and already
have strong connections with major industrial compa-nies
and national laboratories. Additional support,
especially for new faculty, could place ASU among
the upper echelons of U.S. universities in the field.
Arizona State University proposes to contribute sig-nificantly
to the state's high-technology industrial
base by expanding its research and education capa-bilities
in Ultra Small (less than 1 billionth of a
meter) materials synthesis and Ultra Fast (I trillionth
of a second) analysis of chemical reactions. This
will require a major upgrading of instrumentation
for high-resolution electron microscopy and laser
spectroscopy, as well as nanofabrication, nanolith-ography
and materials preparation.
Plastics &
rdvanced Compositt
L- Cluster
Arizona at Risk An Urgent Call for Action
crease tn the number of patents register, 1
Manuf acturi ng
Arizona State University Initiative on
Manufacturing: The Manufacturing Institute
Since 1979, ASU has maintained a strong partner-ship
with Arizona's high-technology manufacturing
industry. The collaboration has elevated the quality
of engineering and business education at ASU and
fostered multi-disciplinary research that supports
economic development. Building on this founda-tion,
Motorola supported Arizona State University
in the creation of the Manufacturing lnstitute (MI) as
a collaborative partnership between industry and
the College of Business and the College of
Engineering and Applied Sciences. Since its incep-tion
the metropolitan industrial community has
thrown its support behind the concept by investing
in MI scholarships as well as research. It is through
the MI that Arizona State University seeks to create
a new form of partnership with Arizona's manufac-turing
industry, one that advances mutual goals of
creating new knowledge, innovative education, life-long
learning, and advancing global partnerships.
?ossible Performance Measu
I [astics &
( sonware &
Information lndustrl
High Technology
Cluster ,
Envi ronmental Engineering
Northern Arizona University Initiative on
Environmental Engineering: Arizona Center for
Environmental Technology
The proposed Arizona Center for Environmental
Technology would include and be an expansion of
existing research laboratories, including the Water
Resources and Reclamation Laboratory, Sustainable
Energy Laboratory, and the Advanced Composite
Materials Laboratory which all integrate with the
existing Center for Data Insight (data mining). The
Arizona Center for Environmental Technology will
serve as an incubator for small technology develop-ment
projects for firms of various sizes, partner with
small businesses to apply for federally funded Small
Business Innovation Research awards, and serve as
a resource and training center for rural Arizona.
Envi ranmental Sciences
Northern Arizona University Initiative on
Environmental Sciences: Center for Sustainable
The Center for Sustainable Environments (CSE) will
serve as a catalyst to facilitate a broad range of activ-ities
related to environmental research, education
and outreach. NAU researchers are seeking and
devising alternative paths to economic development
including the development of alternative energy
sources, new construction techniques and new waste
treatment approaches. The CSE has established a set
of goals to attain the highest level of multidisciplinary
and environmentally relevant research, education
and stewardship including the following:
Develop collaborative relationships with Indian
tribes and other local communities in conducting
research on environmental issues;
Support studies that seek to have a direct effect on
environmental policy, from the local to the glob-al;
Produce prototypes of new materials; i.e., con-struction
materials, that are energy efficient and
Assist studies that make connections between
international and local/regional environmental
Work with partner agencies and organizations to
apply knowledge to the development of effective
strategies to restore, sustain, and preserve the
Water I ,.....onmental
Water S u s t a i n a b i l i ty
The University of Arizona Initiative on Water
The goal of this initiative is to maintain and increase
the reliability and quality of the state's water supplies.
It will allow expansion of two critical areas of research
and the area of knowledge transfer: 1) multi-disci-plinary
research on the basin-scale level, and 2)
pathogen detection in potable water. This initiative
will include:
14 water information center with a library of
water-related materials and information staffed by
an information specialist;
Courses and research opportunities that will train the
state's next generation of water resource managers;
A Web-based course in basic hydrology, offered
through Extended University and available to any-one,
including high school science departments;
Arizona at Risk An Urgent Call for Action
A satellite office in Maricopa County to facilitate
interactions with key stakeholder groups; and
A presence in rural Arizona through the existing
network of extension offices.
Plastics & \
Advanced Composites
Cluster .
F i scal Imp1 i c a t i o n s f o r
U n i v e r s i t y Research and
Techno1 ogy Transfer I n i t i a t i v e s
It is estimated that an investment of $50 million
annually by the State of Arizona into the research
infrastructure of its public universities would repay
taxpayers many times over. The investment will
leverage external funds from foundations, the federal
government and industry as well as position the state
to attract and enhance New Economy enterprises.
"If I were to $fve one
' b i t (of; a8dvice to, the
Regents or t.0 the c i t i -
zems o1f Arilzona f o r the
O p t i c s
The University of Arizona Initiative on Optics
The UA's Optics lnitiative will support the develop-ment
of the New Economy in the state through pro-viding
highly educated graduates far Arizona optics
companies to hire, engaging in world-class research
and development in areas of relevance to local
optics companies, and implementing an effective
outreach program to provide technology transfer
and technology support for Arizona optics compa-nies.
This initiative will allow the expansion of three
critical areas of research and of the university's
technology transfer infrastructure: 1) The Arizona
Center for Photonic lnformatian Technology, 2) The
Steward Observatory, 3) a coordinated optical
materials research effort, and 4) technology transfer
and industry support capabilities.
future o f t'he ecorrromic
gso!wth o f t,his state, it
would be t o h.ave qu8allf t;g
research w f ~ v e r s i tefs .. .I t
- Craig Barrett, Chief Executive Officer, Intel Corparation
The Task Force recognizes that a large part of the
New Economy will be driven by Arizona business-es,
many of which will be retooling in a competitive
environment. Given the speed with which New
Economy businesses must adapt, it is appropriate
that much of the responsibility for assisting with this
task fall to the community colleges.
G*o:ni .g t~ t k~ Small 1,
= ~&~s"ill~sBse. ve7 opscnt -
gf&%ter1 s the bes.t t.hl~.g .-
-Z- 5th<at I've ever done Far
my burlilness, P thought
I rea1Jy knew my
usi1ness, but I iSjearnm$
go much more . . . X would
lr~ecomrmendi It t o a:nyb+~dy
who wasnts to oge~n QYP
expand a small Bus1n.e~~.
-Bettie Ritter, co-owner, Pueblo Southwest, Inc.
Recipient of SBDC 2000 Success Award
Lakeside, Arizona
u n i t y Coll ege I n i t i a t i v e
on Small Business Devel opment
Established in 1988, the Community College Small
Business Development Center Network is now the
single largest provider of small business assistance
in Arizona. These centers, located in each of the 10
community college districts, help people who
either currently own a business or who are planning
to open a business learn the fundamentals of oper-ating
a small business. In 1999 community colleges
invested $1.3 million matched by $1.1 million in
Federal funds, to operate these centers. Arizona is
one of only two states that do not provide state
funding for this type of center.
During 1999, as a result of these centers, 1,466 jobs
were created and 282 jobs retained; 208 clients
received more than $35 million in financing; 3,390
clients were counseled; and 3,749 received train-ing.
Sales by these clients increased by $72.3 mil-lion.
A total of $5.2 million in state and federal tax
revenue resulted from the enhanced activities of
these businesses for a $2.14 return on each dollar
Initiative: Expand Small Business Development
It is proposed that the state become a partner in
funding the Arizona Small Business Development
Center Network by providing $975,000 annually in
increased funding. Over a three year period, the
funding will allow the network to assist more than
2,500 small businesses to create an estimated 5,580
new jobs and contribute more than $1 0 million
new do1 lars in state tax revenue.
Increase in &a11 bwsinesses and m
jobs created
Ratw;n on i m ~ n t
Arizona at Risk An Urgent Call for Action
Tax C r e d i t s f o r T r a i n i n g Costs
i n Small Business
In large measure, the economic health of the state
depends on the ability of small businesses to grow
and prosper. In turn, the vitality of small businesses
relies on obtaining and retaining capable employees.
The lack of capable staff and frequent staff turnover
can cause a business owner to curtail services, or to
limit production of goods. Workforce training, tar-geted
to the needs of small business, would
enhance the competence and retention of small
business staff and improve the overall health of
Arizona small businesses.
Initiative: Expand Tax Credits for Employee Training
Arizona's community colleges are accessible and
affordable avenues for workforce training and
employee development. The colleges have the flex-ibility
to tailor courses and programs to the needs of
small business owners and employees.
Recently approved legislation allows a business a
state tax credit of 50% of the cost for training
employees in information technology. The public
community colleges are an approved site to offer
such training, as are private postsecondary institu-tions.
Through their Small Business Development
Centers, public community colleges can encourage
small business employers to make employee train-ing
an integral part of their business plans. If this
legislation were amended to increase the training
topics that qualify for tax credits, the community
colleges could serve an expanded number of small
businesses and employees. Expanding training will
not only improve the profitability of small business-es,
but also provide increased services and goods
for Arizona consumers.
The current tax credit incentive for employee train-ing
should be amended in the 2001 Legislature to
cover a wider variety of training in addition to infor-mation
technology knowledge and skills.
lncraase in &,.ation of tax credits by srnalt
Increase in ampletion of workforce
development training programs offixed I@
thr i m r ommutlity collqe I
An additional $2.5 million annually will be needed
to support this initiative.
"Getting and keep1 n:g
empl~yees i s THE busf nless
p,roblalm today for our
]member srnal' 1 bw $9 nes-ses ,
and training for employees
can ?help meet t.hl s
chal llenge. The tax .credJ ts
f o r techn~llegy tra"iirrg
-e;nlact.ed v i a Hi3 2442 by
the 44th LegTsTzat~r~we as
a great ]step i n the rigtit
dii rcctti on, But smialll
b.us1 nesse.5 meed hejlp wi;th
other areas of "&ir-i ni ng,
such as cust~mer serv-ice,
uorking iill teams, .and
communi sati np cf8cct-I vel ye
I see this propo~s~'a!s
ul tally important to8 t;he
co'nt i rtu.ia3d heall tR and
growth o f Arizona's s~lall
busi nesse~,*
Thomas A. Gunn, Jr.
Executive Director
Arizona Small Business Association
STRAT .. ,ase Capacity
r Enhance the hurnar , p h y s i c a l , and t e c h n o l o g i c a l caoaci t v 1
)f i n s t i t u t i ons o f h i aher ed11cat.i nn
Arizona must have strong universities and commu-nity
colleges and private institutions to develop the
targeted research and partnerships that are essential
for the state's industry clusters to be competitive in
the New Economy, as described under Strategy I.
Arizona's community colleges and universities also
must have the human resources required to develop
a highly educated and well-trained labor force and
to meet the anticipated increase in demand for
higher education over the next 20 years, as described
under Strategy It. To fulfill their role in strengthening
the economy of the state, Arizona's institutions of
higher education must each have the resources neces-sary
to be competitive in the marketplace for top
faculty and staff. Planning to implement this strategy
should be guided by the following principle:
Recommendati on
The Governor's Task Force recommends that facul-ty
and staff salaries at the universities and commu-nity
colleges be competitive in each of their
respective markets, thereby enabling the institu-tions
of higher education to hire and retain faculty
and staff of the highest caliber. The Task Force rec-ommends
that initiatives be undertaken and sup-ported
in order to provide the resources necessary
to achieve competitive salaries.
University Faculty S a l ary
I n i t i a t i v e
Arizona's universities operate in a highly competi-tive
national and international marketplace for the
recruitment and retention of faculty. Competition
for the best faculty is fierce, and the universities'
ability to offer competitive salaries to new faculty
and to retain the best faculty is being severely com-promised.
The gap between the average salaries of
faculty in Arizona's universities and those of peer
institutions is already significant, and despite the
reallocation by the universities to faculty and staff
salaries of more than $20 million dollars in the past
four years, this gap continues to increase. As a
result, Arizona's universities are losing increasing
numbers of talented faculty to other institutions
offering substantially higher salaries as well as
greater resources for research and teaching.
Initiative: Raise University Faculty Salaries
A continuation of small annual salary adjustments
by the Arizona Legislature will only contribute to
the widening deficit in faculty salaries. Therefore,
university salaries should be raised to the 50th per-centile
of peer institutions over the fiscal years 2002
and 2003. This is the first step toward the ultimate
goal of making Arizona salaries truly competitive
with those at peer institutions. It is imperative that
the money necessary to implement this initiative be
awarded on a merit basis, in order to reward and
encourage quality teaching and research. These
funds should be allocated with enough flexibility to
allow the universities to develop attractive hiring
and retention packages for key faculty members. To
obtain a salary level that is competitive with peer
institutions and to establish a fund to avert a "brain
drain" from the State of Arizona will require an
investment of approximately $68.4 million in con-tinuing
funds over fiscal years 2002 and 2003.
Arizona at Risk An Urgent 6 1 1 for Action
ossibfe Performance Measures
Movement d a v m g faculty salaries toward
the 50th percentile of,peer institutions
Increase in externally-funded researdr dollars
braught to the state by university faculf
.- -
*$ate$ t h a t rank als
the mast inefiFec.t.lf we for
enswing that their upper
tie^ lpubilrtc sector
- unf w~rsitfles remain: - -
mtdanal fsy cLompet-%vQti~
in. €be academiie labor
m~lsket t h e l'ast
two8 decades 5 rtcT~dzdc
- h~izsns, New 8MkatBlca, Utah, d B &@ =- ~O'rtp~,on U ta sAi @I$ ton, an@ -
.==- - -,a
MI scowsim. a
--- - I~ac-idenjli11a l ly t h ~ s e
#ire natiom's llowost in1
p per sI~defl19 state
xpeodl ture support for
higher eduoa~tfon.~
-Alexander King, National Trends in the
Relative Fiscal Capacity of Public Universities to
Compete in the Academic Labor Market, 2000.
Community Coll ege Faculty
S a l a r y I n i t i a t i v e s
As the main contact with students, faculty members
are the community collegesf most important assets.
If community colleges are to continue to provide
exceptional services to their communities, it is
imperative that they have a faculty pool that is high-ly
competent and sufficiently large to meet the
needs of all students. The challenges of competen-cy
and capacity are met through a combination of
full-time and adjunct faculty.
Initiative: Increase the Number of Full-Time
Faculty and Make Faculty Salaries More
Arizona community colleges operate in a highly
competitive nationaktate marketplace in the recruit-ment
and retention of faculty. Competition for the
best faculty is fierce, and the community colleges'
ability to offer competitive salaries to new faculty
and to retain the best faculty is severely strained
and at times compromised.
The initiative addresses two main focus areas:
1) Resources should be allocated to reduce the
ratio of adjunct to full-time instructors in the
community college system.
2) Arizona should enact a program to assure that
there are available resources to be competitive
and maintain a faculty pool in the community
college system that adequately serves the grow-ing
student demand.
The community colleges are striving for a 50/50
split of classes taught by full-time and part-time fac-ulty.
This should give students access to faculty
without hampering the ability of the colleges to
respond to rapidly changing economic situations
that demand immediate action. Based on a full-time
student-to-faculty ratio of 20:1, there is a need to
increase the number of full-time faculty in the com-munity
college system by 329. The incremental cost
to hire a full-time residential faculty member, rather
than adjunct instructors for the same number of
class sections, is approximately $40,000. The first-year
cost of increasing the ratio of full-time to part-time
faculty is $13.1 million. In future years, this
number may fluctuate with the economy and
Maricopa Initiative
In order to maintain or improve its current faculty
salary standing among peer institutions, the Maricopa
Community College District may have to sacrifice
development of programs and technology andlor
maintenance of plant. It is recommended that
$7,748,000 in annual funding be made available to
keep the district competitive within its peer group.
Pima Initiative
An average increase of $1 0,000 in annual salary per
full-time faculty member would bring the Pima
County Community College District close to the
highest mean salary in its peer group. This would
cost approximately $3,360,000 annually for its
present full-time faculty.
Rural Initiative
In order to maintain their competitiveness, it is rec-ommended
that rural community colleges receive
$4,000,000 annually to retain and improve their
ability to compete through the maintenance of a
quality faculty pool.
As part of New Economy initiatives supporting
workforce development and research and technolo-gy
transfer, numerous states across the country have
made substantial investments in capital budgets for
their colleges and universities. A similar program for
Arizona colleges and universities is needed.
Continued inadequate support for maintenance of
community college and university campuses has
resulted in a substantial backlog of deferred main-tenance
and badly needed infrastructure and facili-ty
renovation upgrades. For example, during the last
decade, the Legislature has funded the universities'
Building Renewal at an average of 43 percent of the
formula adopted by the Legislature's Joint
Committee on Capital Review. In the current bien-nium,
funding is at 23 percent of the formula.
Enrollment Growth/Workforce
Devel opment
The Governor's Task Force anticipates significant
enrollment growth over the next 20 years for
Arizona's institutions of higher education. This
growth in enrollment will push the universities and
community colleges beyond the current capacities
of their campuses and create additional capital
asset needs for both systems for at least the next
decade. Capital needs for the second decade of the
21 st Century should be evaluated later to integrate
technological advancements in the design of learn-ing
Research and Techno1 ogy
New andlor improved research facilities are a criti-cal
component of positioning Arizona to be suc-cessful
in the competition to attract and retain the
knowledge-based industries of the New Economy.
Recornmendati on
The Governor's Task Force on Higher Education
recommends that the public capital assets of the
institutions of higher education be managed over
the next ten years in such a manner as to catch up
with past needs, maintain existing facilities, and
keep up with projected growth. Resources should
be identified and secured in order to address these
needs in a systematic and on-going manner.
Arizona at Risk An Urgent Call for Action
The Legislature should be encouraged to
appropriate general fund revenues to cover
the cost of debt service for university and
community college capital projects.
The Legislature should fully fund the universities'
existing Building Renewal Formula and/or any
future revisions to that formula.
The Legislature should provide greater state
support for community college state aid capital
funds to improve the repair and maintenance
of state-owned community college real property.
The universities and community colleges should
more aggressively seek private and federal
partnerships to support the construction of
facilities and infrastructure.
[Note: The Report and Conclusions of the Subcom-mittee
on Funding from which these recommendations
were derived can be found in the Appendix of the
Supplement to Arizona at Risk: The Report of the
Governor's Task Force on Higher Education. The
Subcommittee's report provides an in-depth evalua-tion
of the various funding sources and mechanisms
supporting public higher education in Arizona and
presents a series of conclusions regarding ways to
strengthen the financial foundations of public higher
U n i v e r s i t y C a p i t a l Asset Needs
To address the demands of expanding enrollments
and increased research and technology transfer for
New Economy industries, two categories of capital
needs were proposed for consideration by the
Governor's Task Force on Higher Education:
1) Building Renewal; and
2) Special Needs Not Addressed by Building
The proposal on building renewal has components
for Catch-Up and Keep-Up. The proposed Catch-Up
element of building renewal would eliminate the
unfunded backlog of deferred maintenance by pro-viding
20 percent of the unfunded formula amount
(from the last decade) each year over a five-year
period. This would require appropriations of $24.4
million per year. The proposed Keep-Up element of
building renewal calls for full funding annually of
the formula.
The proposal for special needs not addressed by
building renewal includes elements to support
enrollment growth/workforce development, research
and development, and other special needs, all subject
to Board of Regents authorization. To support enroll-ment
growthlworkforce development, approximately
1 million square feet of new facilities will be needed
in the next ten years. For research and development,
the universities plan to maximize the requested
state support by matching it in innovative ways with
a variety of other fund sources from federal agencies
and private partnerships. To cover the debt service1
lease purchase payments for the enrollment growth1
workforce development and research and develop-ment
projects would require a 20-year repayment
schedule of $47.9 million annually.
Community C o l l ege C a p i t a l
Asset Needs
To meet the challenges of developing a workforce
for the New Economy, Arizona's public community
colleges must have state assistance for capital
development of buildings and infrastructure:
1 ) Enrollment growth will require additional academic
facilities on the main and branch campuses; and
2) Access needs of Arizona citizens will require sup-port
for infrastructure improvements including
new facilities and retrofitting of existing facilities.
Funding for community college capital asset needs
would have to begin with a state commitment to
increase support for community college buildings
which are state-owned real property. This commit-ment
should be matched by state participation in
helping local distr~ct taxpayers and students in
meeting the costs of debt service for capital projects
at a 33 percent share. Also, increased capital state
aid formula amounts, with annual inflationary
adjustments, should be provided by the Legislature
to address deferred maintenance and infrastructure
Eliminating the 1991 -2000 backlog of unfunded
capital state aid for community college students
and inflationary growth would require additional
appropriations of approximately $1.96 million per
year over the next five years.
To cover the 33 percent state share for debt service
payments for capital facilities for community colleges,
approximately $22.6 million is needed in FY 2002.
State share amounts of 33 percent beyond FY 2002
would be dependent upon the debt service required
for capital projects that are approved for construc-tion
at that time.
The Task Force supports the plan to increase the
technological capacity of the system of higher edu-cation
in Arizona. Efforts to implement this plan
should be guided by the following principle:
information Technology -
Increase the use of new technological delivery
channels for academic degree. and certiricate
programs as well as nwcredit coursework and
workshops. The aim is to achieve htegratb of
electronic education with trad;tionat deliwry jiys-terns,
to enhance administration and support
services, and to prevent unnecessary duplkation
of resources through collaboration between and
among educational institutions and sectors.
The Task Force recommends that the potential for
e-learning through information technology be real-ized
through specific initiatives that provide for
electronic course sharing among community colleges,
electronic delivery of collaborative programs among
the public universities, and useful collaboration
between the two sectors.
The Arizona higher education institutions are dedi-cating
significant resources to expanding distance
learning and articulating electronical ly-delivered
education. This has been for a number of years the
fastest growing area of education. States across the
nation are developing virtual universities and colleges,
integrative web sites, and telecommunications
infrastructures. Most of the commitment in Arizona
has been through internal reallocation of resources
and when there have been appropriations, they
have been in the millions of dollars, not the tens of
millions that many other states have provided.
The Governor's Task Force recommends that the use
of information technology be enhanced through the
following specific proposals:
Arizona Learning Systems
Arizona Learning Systems (ALS) was established in
1996 as a consortium of the ten Arizona community
colleges. ALS is designed to help meet the statewide
demand of Arizona workers and companies for
increased access to higher education content and
training to compete in the New Economy. ALS also
serves students in rural areas who do not have
access to needed higher education classes. These
needs are addressed by sharing the resources of ALS
member colleges to provide distance learning
through the development of a statewide, telecom-munications
network that has the capability of tying
together all educational institutions of the state into
a single, cost-effective system.
Initiative: Continue Expansion of ALS
Currently, ALS is implementing Phase I of this network,
which will connect an initial site in each of Arizona's
ten community college districts. In Phase 11, the ALS
Network will be expanded to connect remaining
community college sites. In Phase Ill, consistent
with statute creating the system, ALS intends to
extend its current network to all of Arizona public
It is proposed that Arizona enable the ALS Network
to reach its full potential by funding its expansion
for Phase I1 and ultimately for Phase Ill if initial pro-jections
are sustained by experience. This will
ensure that Arizona students, no matter where they
are geographically, will enjoy the same access to
distance learning. Such a statewide network will
enhance and grow existing public education coop-erative
Arizona at Risk An Urgent Call for Action
The start-up cost to implement Phase II and the
postsecondary portion of Phase Ill is $6.3 million.
Under current conditions, the cost to add the K-I 2
districts and charter schools for Phase Ill is $40 mil-lion.
These costs reflect a complete turnkey opera-tian
involving all equipment, installation, and engi-neering
costs. The Governor's Task Force on Higher
Education recommends that, by the end of Phase II
and prior to the implementation of Phase Ill, ALS be
evaluated to determine the implications of further
cost $14.5 million for ASU, $13.7 million at NAU
and $1 7.0 million for the UA. It is proposed that the
Legislature provide an annual appropriation of $3.6
million to cover lease/purchase payments for this
I n f o r m a t i o n Techno1 ogy I C r i t i c a l S a l a r i e s
Information Technology (IT) is a critical component
to advancing learner-centered programs on today's
community college and university campuses.
Properly preparing our students for the e-business
world requires robust IT infrastructures, state-of-the- I art equipment, and quality IT staff to install, operate
and maintain these integrated components. Arizona
public higher education must meet the challenge of
keeping quality IT staff employed to supply the
essential IT environment for students to learn in an
U n i v e r s i t y I n f o r m a t i o n efficient and effective manner.
Technology I n i t i a t i v e s Although attempts to reallocate funds have been
The availability of classroom technology to enhance made in the past, current budget alloca-instruction
and to extend education to the commu- tions for overall IT needs are not allowing for
nity via telecommunicafions and the Internet has salaries to keep pace with industry trends.
become a defining characteristic of higher educa- Additionally, the current benefits offered to univer-tion
today. While existing classrooms meet a variety sity IT staff 1% far behind the industry. A small 2%
of needs, the lack of equal access to needed instruc- merit pay pool (capped at 4% per individual) pro-tional
technologies results in serious limitations for vided by the Legislature in FY 2000, plus a few
most faculty and their students. other benefits, do not compare favorably with what
many IT employees are being offered by commer-
The New Economy will demand a better match cial businesses.
between workplace requirements and the knowl-edge
and skills of higher education graduates. A The cOmmuniv colleges are parallel
program must be developed to advance the breadth challenges in offering sufficient salaries and benefits
and depth of technology literacy that employersto compete for IT professionals with private indus-expect
and need. In order to enhance N~~ try. The fact that many colleges are located in rural
Economy workforce development programs, the areas serves to exacerbate this challenge-state's
public universities have a strong need to Initiative:
develop their information technology infrastructure, The state should take steps to overcome the current
wiring and equipment. lack of sufficient funding to address IT salary and
Initiative: retention issues in higher education:
A basic infrastructure platform is needed at each of the funding necessary to raise salaries
the universities in order to enhance instruction via to the market average for all IT employees. These
electronic technology. Basic needs are estimated to salary adjustments could be phased over two years.
2) Institute an annual salary adjustment for IT staff,
which will help universities and community col-leges
maintain pace with salaries in the market.
The overall sum needed to support a phased salary
increase for university IT employees is $7,872,000
plus a yearly 5% increase in each university's IT
salary budget to pay for annual market adjustments.
The latter will help the universities keep pace with
annual increases in the IT job market. The commu-nity
colleges would require $3,195,000 for a
phased salary increase plus a 5% increase in each
college district's IT salary budget to fund annual
market adjustments to keep pace with annual
increases in the IT job market.
A r i zona Regents U n i v e r s i t y
This initiative will make the Arizona university sys-tem
more responsive to statewide educational
needs, especially those connected with economic
development priorities. It will provide access to cit-izens
who are time- and place-bound, life-long
learners, or disabled. It will utilize technology-delivered
and distance courses and other improve-ments
in access to higher education. It will draw
together existing resources from the three public uni-versities
and initiate development of new resources,
giving preference to new programs that support
Arizona's competitive position in the New
The initiative is proceeding in three overlapping
phases. A web site, AZDistanceEducation.org, has
already been developed to describe current course
and program offerings. In Phase Two new degree
programs will be developed, as needed. In Phase
Three, an appropriate continuing organization, cur-rently
called the Arizona Regents University, will be
established. In September 2000, the Board of
Regents retained Dr. Sally Johnstone, of the Western
Cooperative for Educational Telecommunications,
to facilitate the design and development of this
organization. To implement Phases Two and Three
of the Arizona Regents University will require an
annual operating budget of at least $2 million.
W& site *
& i n t h e - ; l i ' w d ~ g r e e ~
a*ed and offw *p$*;2:;s*jy; $ 5 5 , ; A $>"*^.\ g::&%:<i'pJxx *%&,
Cooperati on Between the Two
Arizona's public universities and community col-leges
are committed to offering technology:deliv-ered
education to the state in close inter-institution-al
collaboration and through cooperation between
boards. The eventual form of Arizona Learning
Systems and of the Arizona Regents University will
be shaped by strong existing transfer and articula-tion
agreements and by thoughtfully negotiated
division of effort between the university and com-munity
college systems.
Arizona at Risk An Urgent Call for Action
The Need for Investment,
Accountabi 1 i t v and Outcomes
Improved Funidi ng
Mechani srns
Nationwide, the strongest public universities and
community colleges have been built on sustained
financial support from multiple revenue streams. In
an era in which the competition to attract and
develop industries of the New Economy has led to
substantial investments by states in the operating
and capital resources supporting their institutions of
higher education, Arizona must act to put in place
a competitive funding framework of its own for higher
education. The report and conclusions of the
Subcommittee on Funding, from which these rec-ommendations
were derived, can be found in the
Appendix to the Supplement to Arizona At Risk: The
Report of the Governor's Task Force on Higher
Education. [See also the discussion and recommen-dations
regarding capital needs in the section
labeled, Management of Capital Assets, page 28.1
Uni versi t y Funding Mechani sms
Over the last ten years, the major source for new
state revenue for the universities has been enrollment
growth funding. The enrollment growth formula,
allowing faculty and staff funding for every student
and referred to as "22:IN provides revenue only for
marginal costs and does not fund the full cost of
growth. Mareover, because the formula does not
provide the full cost of education for additional stu-dents,
it erodes the campetitiveness of the universities
with their peers by diluting the resource base that
supports university programs. The Task Force has
projected significant new growth in university
enrollments which cannot be sustained with a mar-ginal
cost formula. Further, the main campuses of
Arizona's universities are approaching an optimal size
and a funding mechanism that is not based on growth
is required to enhance the competitive position of
these campuses.
Co~mmunity Golill'ege Fu'nd'tng
R e.c h an illsm .s
Operational funding for community colleges, as
originally defined by statute, has evolved over a
period of forty years. The current formula is based
exclusively on the number of full time student
equivalency generated, and allows the Legislature
to annually fund inflationary increases. Unfortunately,
the Legislature has not kept pace with the statutory
provisions and has underfunded the formula. The
effect of this underfunding has led to an erosion of
state support for educational programs and services.
The Governor's Task Force on Higher Education has
identified three major strategies for the state to pursue:
lncrease participation;
lncrease research and business development;
Increase capacity and productivity.
Each of these strategies is dependent on availability
of sufficient resources for successful implementa-tion.
Moreover, the existing funding formulas and
incentives must be revised to support accomplish-ment
of the Task Force's major strategies.
Capital Formation
Propel higher education in Arizona to the next
level by enhancing the formation of investment
through new funding approaches, including public/
private partnerships, private contributions, mutual
leveraging of funds from multiple sources and
levels, and new approaches to public fundint
Funding Mechanisms
frarlsform the incentives innerwll rrJ funding LU
include qualify, productivity, efficiency, and col-laboration
Do so by such means as jmpfoving or
replacing the current funding formuias, reviewing
university and community coltege capital all~ca-tion
practices, keeping the net price of instruction
for Arizona students as low as possible, and pricing
to market for non-residential students.
The Governor's Task Force on Higher Education
recommends that Arizona reaffirm and strengthen
its current strategy for financing its public univer-sities
and community colleges employing multiple
revenue streams. The recommendations are, there-fore,
divided into four categories: state appropria-tions;
other operating revenue sources; tuition; and
capital support.
State Appropriations
The Legislature should be encouraged to appropriate
a higher level of general fund support, and provide
matching funds for grants and contracts, private
funds for public/private partnerships, and salaries and
faculty start-up costs. In addition, university and
community college funding mechanisms should be
revised as described below.
Public University Funding Mechanisms
The Board of Regents should examine and revise
the 22:l formula, as needed, to more fully recog-nize
the real costs of enrollment growth.
The 22:l formula, and any subsequent revisions,
should be fully funded.
The Legislature in consultation with the Board of
Regents should adopt a funding approach for uni-versities-
beyond enrollment growth-that is tied
to a market-based analysis utilizing benchmark
data from peer institutions. The goal of the fund-ing
model should be the average of funding on a
per-student basis of each institution's Board of
Regents-approved peers. Attainment of this goal
should be accomplished through a combination of
increases in tuition and state general fund revenues.
Public Community College Funding Mechanisms
The Legislature should reinstate the statute estab-lishing
the 33 percent share goal and fund it.
Funding from the state should occur according to
statute from year to year to allow for strategic
planning for enrollment growth to meet and com-ply
with the general objectives specified in the
community college philosophy and mission.
The state's general fund support for operations
should include growth as well as inflation in the
base as called for in statute.
The Legislature should consider changes in the
law to allow Arizona's community college dis-tricts
to increase their expenditure capacity for
New Economy and local initiatives. Currently,
five of the ten community college districts are at
or near their expenditure limitation.
Other Operating Revenue Sources
Additional revenue sources identified should not be
used to supplant current funding. Arizona's public
universities and community colleges should be
encouraged to pursue a wide variety of other oper-ating
revenue sources, including: private funding,
gaming revenues, tobacco settlement funds,
enhanced revenue from state trust lands, and tax
credits for contributions to higher education.
Public Universities
The public universities should maximize revenues
from federal funding, research parks, and commer-cialization
of faculty research; maximize the value
of university assets; and fully implement the recom-mendations
of the External Review Committee for
Public Private Partnerships.
Public Community Colleges
The public community colleges should pursue:
public and private grants; private contributions
matched with public funds; private funding; partner-ships
with corporations, public agencies, and busi-nesses
for funding and training; partnerships with
public and private entities for joint facility use and
expansion; and incentives to attract increased
financial support from the private sector.
T u i t i o n
The Legislature should:
appropriate additional general funds to improve the
match for the Arizona Financial Aid Trust program;
provide enhancements and tax incentives to pro-grams
encouraging family savings for college
tuition; and
match universities' and community colleges' private
fund raising.
Public Universities
The Board should:
consider raising resident tuition to the top of the
bottom one-third of the 50 senior public institu-tions
in the U.S. and maintain that relative posi-tion
over time; and
Arizona at Risk An Urgent Call for Action
consider raising nonresident tuition to the median
of the 50 senior public institutions in the U.S.
and maintain that relative position over time.
Public Community Colleges
Tuition should remain affordable to students
through a combination of increased state appro-priations
and private funding.
The legislature should establish an Arizona
Financial Aid Trust for community colleges.
Capital Support
[The recommendations for Capital Support are pre-sented
on p. 28-29 of the report under Management
of Capital Assets.]
itate Board of Directors
for Community Colleges
of Arizona
coordinate policy on higher education issues.
Recently the two boards have also scheduled joint
meetings to discuss topics of mutual concern.
In May 2000, the 76th Arizona Town Hall made the
following recommendation:
The three-part public governance system (the
Arizona State Board of Education, the State
Board of Directors for Community Colleges and
the Arizona Board of Regents) is adequate, but
should be improved. Town Hall strongly recom-mends
that these existing governing bodies, in
collaboration with local governing boards, identi-fy
a process by which a well articulated master
plan integrates the delivery and funding for edu-cation
in Arizona. With one voice, this plan
should be presented to the public and the
Legislature for debate.
Arizona's public community colleges and universities
are governed by separate entities. The three public
universities are governed by the Arizona Board of
Regents. The ten public community college districts
are each governed by local county district governing
boards with certain key functions coordinated by
the State Board of Directors for Community Colleges
of Arizona. Members of the Board of Regents and
the State Board are appointed by the Governor.
Members of local county district governing boards
are elected by county voters.
A member of the Board of Regents serves as a voting
member of the State Board to ensure communication
between the two groups. In addition representatives
of both boards meet two to three times a year as the
Joint Conference Committee, a group which was
established in 1981 to allow the two boards to
The Governor's Task Force on Higher Education
agrees with the recommendation of the Arizona
Town Hall and believes that implementation of a
process for articulated master planning should be
guided by the following principle:
Recommendati on
The Task Force agrees with the Arizona Town Hall
that an articulated master plan should be devel-oped
for all of publicly funded education. The Task
Force recommends further that once a master plan
is developed, current governance structures should
be evaluated to determine if they are adequate to
support and guide the future of Arizona postsec-ondary
education as envisioned in that plan. This
recommendation should be implemented through
a process that includes participation by business and
other community representatives in addition to the
three state education boards and the local education
governing boards. This process should begin with a
dialog between the Board of Regents and the State
Board of Directors for Community Colleges.
Acc~untablJSty and
Cdaat4 mued Grodnrt ih uti on
t.0 the P8p180ductivQtoy'f i
the State
Concl usi on
Many of the Task Force recommendations require Over the course of the last year, the Governor's Task
additional financial support. Implementation of Force has heard presentations, studied reports, and
these initiatives should be guided by the principle discussed and debated at length a great many issues
of accountability. concerning the future of postsecondary education
in this state. From those deliberations, two major
conclusions have emerged:
1) Arizona is at risk if it does not become a leader
in the new, global, knowledge-based economy;
") Arizona's institutions of higher education are the
keys to developing the state's workforce and
strengthening its economy.
This report provides a strategic framework to position
Arizona's institutions of higher education provide Arizona and its citizens such that they can contribute
education and training to thousands of certificate to, and benefit from, the changes that lie ahead.
and degree program completers each year. These The Governor's Task Force recommends that the
graduates benefit from and contribute to the economy State of Arizona act now to:
of the state. The more effective and efficient the
higher education system isa t preparinstgud ents for increase student participation in higher education;
successful completion of academic programs, the increase the research and business development
more that system contributes through these graduates provided by higher education;
to the productivity of the state. Several Task Force increase the capacity and productivity of institu-recommendations
seek to improve the effectiveness tions of higher education through improvements
and efficiency of Arizona's system of higher educa- in faculty salaries, capital assets and information
tion by means of changes in policies, programs and technology; and
plans. Implementation of these recommendations enhance funding suppoll from multiple revenue
should be guided by the principle of productivity. streams for higher education institutions.
Recommendati on
The Governor's Task Force recommends that the
State Board of Directors for Community Colleges
of Arizona and the Arizona Board of Regents pro-vide
additional documentation of the accountability
of higher education to the public and the contri-bution
of higher education to the productivity of
the state through specific performance measures,
such as those described in this document.
Finally, the release of this report signals the beginning
of a crucial stage in creating a prosperous future for
Arizona-success hinges on sufficient funding and
support to implement these strategies. The passage of
Proposition 301 in Fall 2000 provided ample evidence
of taxpayers' support for New Economy initiatives.
Likewise, the State of Arizona must act promptly to
strengthen the financial foundation of higher edu-cation,
increase access and provide the enhanced
capacity it requires. The challenge facing Arizona's
leaders and citizens alike is to sustain the momentum
provided by the passage of Proposition 301 in building
the support required to carry Arizona forward into a
successful and prosperous 21 st century.
Arizona at Risk An Urgent Call for Action
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