Universities of Wisconsin focused on building for the future (day 1 news summary)

Thursday, December 5, 2024

MADISON – The Universities of Wisconsin presented the Board of Regents on Thursday with a comprehensive update on the implementation of the 2023-2028 Strategic Plan to date.

UWs President Jay Rothman reminded Regents of the four guiding strategic objectives under the plan adopted by the Board in December 2022:

  • Enhance the student experience and social mobility
  • Foster civic engagement and serve the public good
  • Create and disseminate knowledge that contributes to innovation and a better understanding of the human condition
  • Advance economic prosperity

To advance these objectives, the plan identifies nine key strategies that, at the UWs Administration (UWSA) level, are being advanced through 47 tactical actions. The three UWs Vice Presidents – Johannes Britz (Academic & Student Affairs), Julie Gordon (Finance & Administration), and Chris Patton (University Relations) – and Associate Vice President Jack Jablonski (Public Affairs, Communications, and Branding) each presented high-level status updates for select tactics assigned to their respective units.

Regent President Amy Bogost noted the presentation offered a comprehensive overview of the UWs’ efforts on a wide-ranging array of goals and the progress that has been achieved. “What I’m concerned about is whether we’ll be able to hit our targets if we don’t get the state support,” she said.

President Rothman responded: “Without additional investment, will we be able to hit all the targets? The answer is no.”

Regent Haben Goitom raised the question of whether the plan reflects a vision to sustain the UWs or a vision for the future. “How can we as Regents support this ambitious program tactically while still looking down the field,” she asked.

Regent Timothy Nixon said he’s optimistic about the UWs’ budget prospects, “but hope is not a strategy in and of itself.” He urged President Rothman to consider developing contingency plans if the UWs don’t get the proposed funding. “People need to think about the ‘what if’,” he said.

“In my business, cutting muscle and bone is called amputation,” said Regent Ashok Rai.

Regent Vice President Kyle Weatherly pointed out the fine line between “green” and “yellow” in meeting the goals of the strategic plan, particularly if additional investment in the UWs is not forthcoming.

Role of UW Administration discussed

The Universities of Wisconsin also brought a financial assessment of the UW Administration before the Regents on Thursday.

It was the final review by a third-party reviewer in an overall financial assessment and operational review of each UW university (excepting UW-Madison) as well as the UW Administration (UWSA) designed to aid in financial planning, forecasting, benchmarking, and addressing revenue diversification opportunities.

“These reviews have helped us refine steps to eliminate structural deficits at a number of our universities and embark on a path of long-term financial stability,” said President Rothman. “We will continue to make necessary changes across our universities to ensure faithful stewardship of resources and to better serve students and parents, employers, and communities across Wisconsin.”

UW Administration engaged Deloitte Consulting to conduct the assessments and reviews in July 2023.

To set the stage for the Deloitte report to the Board, Julie Gordon, interim Vice President for Administration & Finance, presented an overview of UW Administration.

She noted that as of September 2024, UWSA had 523 FTE, or 1.5% of the total UW employment. A significant portion of these employees provide direct services – such as payroll, purchasing, HR benefits, IT, general counsel, etc. – that would otherwise need to be completed at the university level.

Other offices, she said, are hybrid, providing direct and management/oversight services. Examples include the Office of Compliance & Risk Management, Office of Finance, and Office of Enrollment & Student Success.

UWSA’s total FY25 expense budget is $171.9M, with just over one half coming from GPR.

In response to Deloitte’s latest review, Rothman has announced that UWSA will:

  • Take a more active role in supporting universities in enrollment management, including enrollment forecasting.
  • Charge a work group with representation from the universities to develop recommendations and metrics for low-enrollment program evaluation. The intent is to provide the Board of Regents with a process for review of low-enrolled programs that increases oversight and aligns with the rigor of the new program approval process.
  • Enhance financial accountability standards, including the implementation of university realignment plans focused on eliminating structural deficits and the commencement of formal mid-year financial reviews of the universities.
  • Provide more effective, customer-focused shared services and expand use of those services by the universities.
  • Continue to leverage technologies and improve administrative processes to facilitate increased data-informed decision-making.

Julie Gordon was joined by Johannes Britz, Interim Senior Vice President for Academic and Student Affairs, to present the Board with UWSA’s response to the reviewer’s findings.

Regent President’s Report

Regent President Amy B. Bogost provided the Board with a status report on two current UW chancellor search processes.

At UW-Oshkosh, a 14-member search & screen committee was recently appointed to help identify a successor to Chancellor Andy Leavitt. Regent Ashok Rai will chair the committee, with Andrew Smock, an associate professor in the Department of Radio TV Film in the College of Letters & Sciences as vice chair. Five other Regents will also serve on the committee: Regents Desmond Adongo, Haben Goitom, Jim Kreuser, Timothy Nixon, and Karen Walsh.

Bogost also told Regents the UW-Milwaukee’s chancellor search officially opened on Nov. 11, following the naming of a 16-member search & screen committee. Regent Joan Prince will chair that committee along with Gillian Rodger, chair and professor of the Department of Music in the Peck School of the Arts, as vice chair.

Listening sessions for UWM’s chancellor search were held for students, faculty and instructional academic staff, local business and community members, and non-instructional academic staff and university staff two weeks ago. A survey collecting listening session feedback will remain open on the UWM chancellor search website until Dec. 15. Review of applications is expected to start in early January with semi-finalist interviews to be held later in February.

Turning to Regent Business Partnership Awards, Bogost reported that six sets of awards had been presented since the Board’s last meeting in late September. The awards recognize how UW universities are building strong relationships with businesses in support of students and communities. The most recent recipients include:

  • UW-Superior and Superior Choice Credit Union
  • UW-River Falls and Interfacial, a company that produces compounds for customers in the medical, consumer, transportation, and construction markets
  • UW-Platteville and A.Y. McDonald Manufacturing Company
  • UW-Whitewater and UW Credit Union
  • UW-Oshkosh and ThedaCare
  • UW-Green Bay and Camera Corner Connecting Point

UWs President’s Report

UWs President Rothman opened his regular report with an overview of recent meetings with the Wisconsin Congressional Delegation in Washington, D.C. “Throughout the conversations, I heard from our delegation about the value they see across our universities and the ways we can work together as the 119th Congress commences in January,” Rothman said.

He also offered a brief update on the current status of the Free Application for Federal Student Aid (FAFSA) upgrade, which is now open for all students following an extremely difficult rollout last year. He noted that the Education Department reports 80% of completers are giving a four- to five-star rating (on a scale of one to five) for their experience with the 2025-26 FAFSA form.

“There are still glitches to work out – and there is no doubt some lingering stress and anxiety in financial aid offices from last year’s experience – but officials are hopeful that the number of FAFSA completions will rebound going forward, with a corresponding bump in enrollments,” Rothman said.

Turning to a state legislative update, Rothman provided an overview of the legislative leadership and committee membership changes as a result of the Nov. 5 elections. “We have been, and will continue to be, engaged with the Legislature as the budget process advances,” he said. “I am ready to build on the positive conversations I have had with legislators about the value the Universities of Wisconsin bring to the state.”

Rothman also noted that the Legislative Study Committee on the “Future of the University of Wisconsin System” has recently wrapped with members voting on a wide range of proposals related to the future of the UWs.

The results of a secondary ballot were received earlier this week, and while there were many recommendations, there is one takeaway that the UWs have been watching closely, he said. The study committee voted to pass by an 11-3 vote, with four not voting, to support exploring the granting of some level of bonding authority to the UWs.

The Legislative Council will be preparing a final report on the committee’s recommendations later this winter.

Rothman also offered early congratulations to the approximately 10,000 students in the Class of 2024 who will earn their UW degrees in coming weeks. He noted that about a half dozen Regents will be participating in commencement events.

Finally, he congratulated Chancellor Jennifer Mnookin and the UW-Madison campus community on last week’s news that UW-Madison has moved up two places to sixth out of 920 public and private universities in the United States in university research expenditures, according to the National Science Foundation’s annual rankings.

For the first time, the university topped $1.7 billion in research expenditures, according to the NSF Higher Education Research and Development (known as HERD). NSF’s data show a 13.7% increase in research expenditures at UW-Madison over the previous fiscal year – an increase of more than $208 million.

“This is an extraordinary achievement, indeed,” Rothman said.

Business & Finance Committee

The Business & Finance Committee reviewed the draft UW Annual Financial Report for Fiscal Year 2024 prepared by the Office of Finance. The report notes that UWs’ Total Net Position as of June 30 stood at $6.7 billion, an increase of $343 million (or 5.4%) from the prior year. The main factors contributing to this change include investment earnings due to favorable market conditions, an increase in the total value of capital assets, and an increase in the value of pension plan investments managed by the Department of Employee Trust Funds.

Revenues within the UWs increased by 9.7%, while expenses increased by 3.7%, reflecting the ongoing work being done by the universities to align revenues with expenses.

In other business, the Business & Finance Committee:

  • Approved the UW Program Revenue Balances Report for fiscal year 2024. The report notes that total unrestricted program revenue balances decreased by $18.6 million. Tuition balances increased slightly by 0.3% to $247.4 million, which represents a 55% reduction since the inception of balance reporting in FY 2013. Over 87% of the total unrestricted balance meets the Legislative Audit Bureau’s definition of being obligated, planned, or designated for a specific project or purpose. The report also noted that universities with balances exceeding 12% of expenditures in any category have provided details on the projects and initiatives for which those funds are obligated or planned. For the six universities projecting structural deficits in the current year, a total of $28.5 million in reserves will be used to mitigate budgetary shortfalls, a 55.7% reduction from the prior year.
  • Heard a first-of-its-kind report on updated mid-year budget forecasts at nine universities whose forecasts have changed by more than 3% of the amounts projected in the annual operating budget. The changes are driven by various factors including enrollment growth or reduction, capital projects, and the timing of gift and grant-funded activity. As a result of the updated forecasts, total FY25 revenues are projected to increase by 3.9%, and expenses by 4.4%;
  • Received a summary report on Financial Realignment Plans for the six universities identified in the FY25 annual budget as projecting deficits in their GPR/tuition funds. The report outlines revised projections and expense reduction plans for eliminating these deficits, with three of the universities projecting to fully resolve their deficits within the current fiscal year;
  • Approved UW-Madison’s proposal to adjust tuition rates for each of the next two academic years for certain graduate and professional degree programs including law, doctor of medicine, health professional programs, and doctor of veterinary medicine. These increases maintain price competitiveness with peer institutions. The use of the resulting revenue varies by program, but will include enhanced student services and scholarships, technology upgrades in laboratories and classrooms, and recruitment and retention of top faculty.

Education Committee

Building on a September presentation, the Education Committee held a discussion on developmental education from campus-level perspectives. Following a review of quantitative data on the student need, profile, and impact of developmental education across the UWs, the discussion provided a qualitative look at developmental education from the campus perspective and how current practices have evolved.

Provost Wes Chapin (UW-River Falls) facilitated a panel with UW faculty and campus leadership from UW-Eau Claire, UW-Superior, and UW-Stevens Point to share experience in providing both English and math developmental courses. They explored how students are identified for these courses, the benefits and impact of student participation in developmental education, and the challenges in student support and the lessons learned in preparing students for college-level coursework.

In other business, the Education Committee:

  • Approved UW-La Crosse’s request for a Bachelor of Science in Data Science. This program will build on the success of the UW-La Crosse Statistics and Applied Mathematics majors, creating a suite of programs within the Department of Mathematics and Statistics that prepares students to enter professional employment in a wide variety of positions, such as data analysts, data engineers, database administrators, data visualization specialists, or business analysts, among many others.
  • Approved UW-La Crosse’s request for a Bachelor of Science in Engineering Physics. The program will focus on the physical and mathematical fundamentals of mechanical, electrical, civil, optical, and materials engineering and will include a solid foundation in physics, mathematics, chemistry, and electronics. The new Engineering Physics program will provide a 4-year engineering track at UW-La Crosse while making use of the engineering courses, expertise, and resources already in place locally to support the dual-degree programs.
  • Approved UW-Madison’s request for a Master of Science in Animal and Dairy Sciences. In 2020, the Department of Animal Sciences and the Department of Dairy Science merged into the Department of Animal and Dairy Sciences. This proposal represents a merger of the existing M.S. in Animal Sciences and M.S. in Dairy Science programs into a single M.S. in Animal and Dairy Sciences. A single M.S. program in the department will streamline administrative processes and provide greater clarity for students. The current separate M.S. in Animal Sciences and M.S. in Dairy Science will be subsequently discontinued.
  • Approved UW-Madison’s request for a Doctor of Philosophy (Ph.D.) in Animal and Dairy Sciences. This is a concurrent and corresponding program merger to the M.S. programs.
  • Approved UW-Madison’s request for a Doctor of Philosophy (Ph.D.) in Science Communication. This program represents an elevation of one of two versions of the Ph.D. in Mass Communications that is jointly offered with the School of Journalism and Mass Communication in the College of Letters & Science. The creation of the Ph.D. in Science Communication will provide a distinct doctoral program experience for students who intend to serve as researchers and leaders in scientific disciplines.
  • Approved UW-Milwaukee’s request for a Bachelor of Science in Engineering. The proposed Engineering, B.S. will provide a flexible engineering degree option that includes a wider range of engineering disciplines and specialized interdisciplinary tracks that students may choose based on their educational interests and career goals. These specializations may be driven by emerging cross-disciplinary technical fields (e.g., advanced manufacturing, connected systems, emerging technologies such as assistive artificial intelligence (AI), or the use of AI in manufacturing) or by the desire to have an immersive interdisciplinary experience (e.g., engineering & pre-medicine, engineering & entrepreneurship).
  • Approved UW-Oshkosh’s request for a Bachelor of Business Administration (B.B.A.) in Business Analytics. This program is an elevation of the existing Business Analytics Certificate and Analytics Minor. All courses are currently taught at UW-Oshkosh, and existing faculty will be utilized for the B.B.A. in Business Analytics. The intended major will prepare students for careers in Data and Business Analytics, Quantitative Analysis, Financial Analysis, Market Research, and Operations Research.
  • Approved UW-Stout’s request for a Master of Science in Applied Computer Science. The program’s goal will be to provide additional technical and software development skills to students who have some programming background (which must include prerequisite proficiency in object-oriented programming and data structures) but who do not necessarily have an undergraduate degree in computer science.
  • Heard a report from the University of Wisconsin School of Medicine and Public Health, “The Wisconsin Partnership Program Fiscal Year 2024 Annual Report.” The Wisconsin Partnership Program is a grantmaking program within the University of Wisconsin School of Medicine and Public Health (SMPH) committed to improving health and advancing health equity in Wisconsin through investments in community partnerships, education and research. Since 2004, it has awarded 636 grants totaling $301 million. These awards have resulted in a remarkable return on investment, with grantees leveraging more than $876.8 million in additional funding from other sources to sustain the projects. In addition to a discussion of the WPP annual report, the presentation highlighted the impact of a strategic opportunity grant for the Native American Center for Health Professions

Capital Planning & Budget Committee

The Capital Planning & Budget Committee approved UW System’s request for authority to make budget adjustments for the UW-Eau Claire Science/Health Science Building, UW-Whitewater Winther Hall/Heide Hall, UW-Madison New Engineering, UW-Stout Heritage Hall, and UW-System All Agency Small Projects, and authority to construct UW-Madison New Engineering and UW-Whitewater Winther Hall/Heide Hall.

In consultation with DOA, UW System had requested an adjustment to the project budget for the UW-Eau Claire Science/Health Science Building and Lower Campus Chiller and Cooling Tower Replacement by $70,064,000 Seg-Rev. Bids for these projects were received in March 2024 and construction is well underway for the new Science Building and Chiller Plant project. Unexpectedly, bids came in lower than the enumerated estimate due in part to a drop in uncertain inflationary pricing. The $70,064,000 Seg-Rev will be reallocated for the following:

  • Increase the UW-Whitewater Winther Hall/Heide Hall Entry Additions & Renovations project by $10,576,000 to address the need to replace underground utilities work not included in the original project budget;
  • Increase the UW-Madison New Engineering Building and demolition of the Computer Aided Engineering Facility project by $29,064,000. The capital budget estimate was established prior to an A/E of Record and Construction Manager being on board to develop a full program and cost estimate based on an actual design. This budget increase is requested to accommodate several changes since the design team have completed the preliminary design;
  • Increase the UW-Stout Heritage Hall Addition and Renovation project by $5,424,000 to strengthen the allocated project contingency due to unforeseen circumstances discovered after this project was approved for construction in December of 2023;
  • Increase the 2023-25 UW All Agency Small Project allocation by $25,000,000. The UW System has exceeded its All Agency SEG-REV allocation for the Small Project Program less than a year into the biennium. Additional funding is required to allow the UW System to continue approving critical infrastructure demand requests at its 13 universities.

In other business, the Capital Planning & Budget Committee:

  • Approved UW-Oshkosh’s request for authority to sell a .675-acre parcel of land with improvements located at 717 West Irving Avenue, Oshkosh. The parcel of improved land includes a 28,700 gross square foot, three-story building currently used as a student activity center. The building’s purpose no longer fits within the university framework plans and it does not lend itself easily to other uses;
  • Approved UW System’s request for authority to construct three 2023-25 Classroom Renovation/ Instructional Technology Improvement Program Projects:
    • At UW-Green Bay, the Studio Arts Fourth Floor Visual Arts Laboratory Renovations project involves a complete renovation of six visual art studios to enhance health and safety provisions, eliminate deferred maintenance, and improve the learning environment;
    • At UW-Madison, the Steenbock Library Active Learning Space Renovation project creates a new active learning classroom on the first level of the Steenbock Memorial Library. Project work includes creating multiple active learning classrooms for 160-200 students;
    • At UW-Oshkosh, the Arts & Communication Center Music Hall Renovation project renovates the Music Hall facility to comply with current accessibility guidelines and provide acoustical performance features that meet auditory health and safety requirements for performance venues;
  • Approved UW System’s request for authority to construct 15 All Agency maintenance and repair projects at an estimated total cost of $30,575,900:
    • At UW-Madison, there are eight All Agency projects. (1) At Camp Randall Stadium, the winterization project provides heat for the concession stands and completes various upgrades to the restrooms. (2) The Parking Ramp 75 HVAC Equipment Renovation project replaces heating units that will provide both heating and cooling to the west elevator and stairwell vestibules to improve user comfort and elevator longevity. The elevator and stairwell vestibules serve thousands of UW Hospital customers and patients each week. (3) Parking Ramps 6 and 46 Structural Repairs project includes critical structural repairs to the rectangular, two-level, below ground parking structure, constructed in 1968, which provides approximately 45,000 SF of parking per level; (4) The Social Science Building Curtain Wall Replacement project replaces the anodized aluminum glazed curtain wall system with a new energy efficient and corrosion resistant system. (5) The Vilas Communication Hall Accessibility Renovation project improves the accessibility and reliability of the passenger elevators. (6) The Dayton and Mills Street Chilled Water Values Replacement project constructs and installs a new valve vault with new chilled water isolation valves directly outside the Charter St. Heating Plant. This will replace one set of failed, underground chilled water isolation valves on Dayton St. which is north of the Charter St. Heating Plant. (7) The University Ridge Irrigation System Replacement project will replace the irrigation system serving nine holes. The irrigation system is more than 30 years old, beyond its useful life. (8) The Multi-Building ROTC Life Safety Renovations project renovates the campus Air Force (Monroe Street) and Army ROTC (Linden Drive) buildings.
    • At UW-Eau Claire, the Hibbard Hall/McIntyre Library Emergency Generator Replacement project replaces aged interior emergency generators with exterior generators for Hibbard Hall and McIntyre Library. The engines on these units have not been manufactured in more than 20 years and are obsolete, inefficient, and border on unrepairable.
    • At UW-Milwaukee, there are two All Agency projects. (1) The Curtain Hall Exterior Envelope Maintenance & Repair project repairs deficiencies to preserve the structural integrity of the building’s exterior window and wall system and remove the associated risks and nuisances associated to excessive water and air infiltration. (2) The Northwest Quadrant (NWQ) Stormwater Management project resolves stormwater management and water infiltration issues on the NWQ building complex site.
    • At UW-Stout, there are two All Agency projects. (1) The Fryklund Hall, Micheels Hall/Swanson Library Roof Replacements will completely replace the last two remaining roofs with problematic foam at UW-Stout. (2) The Sorensen Hall Fire Protection & Fire Alarm Systems Replacements project replaces the fire alarm and smoke detection system and will also install a new sprinkler system and waterless fire suppression system for electrical and telecommunication rooms that house the main campus servers, switches, and uninterruptible power supply units. Sorensen Hall is the hub for campus telecommunications and network equipment.
    • At UW-La Crosse, the Steam & Condensate Utility Replacement project replaces selected sections of underground site mechanical utilities (steam and pumped condensate return). The steam and condensate lines included in the proposed scope of work were installed in 1965 making them more than 50 years old and past their useful life.
    • At UW-River Falls, the Heating Plant Electrical Distribution Replacement project replaces the electrical infrastructure in the Central Heating Plant. The backup generator will be replaced with a natural gas unit and emergency power branches will be separated per the National Electrical Code (NEC) requirements.
  • Approved UW System’s request for authority to construct a minor facilities renewal project, the Williams Fieldhouse Exterior Envelope Maintenance & Repairs at UW-Platteville. This project replaces three individual exterior storefront door systems and the integrated interior vestibule door systems with new aluminum storefront systems.
  • Approved UW-Madison’s request for authority to complete design and construct the Lakeshore Nature Preserve Frautschi Center project for an estimated total project cost of $16,800,000 Gift/Grant funds. The Center will provide space for experiential, hands-on learning and expand the research, teaching, and outreach capacity of the Preserve on campus. The project will provide a consolidated location for the preserve staff and equipment, currently located in six places across campus.
  • Approved UW-Madison’s request for authority to complete design and construct the Campuswide Access Controls project for an estimated total project cost of $8,900,000 Gift/Grant Funds. The project implements infrastructure upgrades across multiple campus facilities to enable the UW-Madison Police Department to secure buildings more effectively. It involves installing electronic access control system, with centralized monitoring and control, at all exterior entry points for 42 designated buildings that currently lack electronically controlled access. This project completes Phase 2(b) that was approved by the Business and Finance Committee in June of 2023.
  • Heard UW System’s semi-annual status report on Real Estate Transactions from June 1, 2024 to November 30, 2024;
  • Heard UW System’s semi-annual status report on UW Solely Managed Capital Projects from June 1, 2024 to December 1, 2024. Since its inception in July 2015, the program has included a total of 179 projects. The total value of the projects that are or have been part of the program has increased from $646,847,552 in June 2024 to $868,946,273.
  • Heard UW-Stout’s presentation, “University Long-Range Plan.” Chancellor Katherine Frank, Provost Glendalí Rodríguez and Vice Chancellor Erik Guenard led a presentation that showcased UW-Stout’s new 10-year Long-Range Plan. The plan charts the university’s strategic vision for UW-Stout’s campus that both honors and amplifies the unmatched value of their polytechnic mission.
  • Heard a report from Senior Associate Vice President Alex Roe.

Audit Committee

The Audit Committee heard UW-Green Bay’s regular NCAA Division I Athletics annual report for 2022-23.

UW-Green Bay sponsors 14 sports with approximately 231 student-athletes. The university is a member of the Horizon League, which includes 11 public and private institutions that participate in Division I athletics in the Midwest.

Joshua Moon, UW-Green Bay’s Director of Athletics, reported that the most recent public Graduation Success Rate (GSR) showed UWGB’s student-athlete six-year graduation rate at 93%, which exceeded the average GSR of Horizon League members (91.5%). The overall GPA for the department in 2022-23 was 3.47. The overall GPA for 2023-24 was 3.65, the highest GPA in UWGB history.

In other business, the Audit Committee:

  • Heard the Fiscal Year 2025 Audit Plan Progress Report by Chief Audit Executive Lori Stortz, as well as Summarized Results of Audits Recently Issued;
  • Approved an update to the Office of Internal Audit Charter. Updates to the Office Charter were proposed to conform to the requirements of the Institute of Internal Auditors’ Global Internal Audit Standards, which are effective Jan. 9, 2025. The update also ensures the Office Charter is consistent with the current practices of the Office of Internal Audit;
  • Heard an update on the Office of Compliance and Risk Management’s FY25 Annual Plan progress, including an update on the UWSA RCA Risk Treatment Plan;
  • Discussed a draft update to the Audit Committee Charter, which was last approved in July 2021. Updates are proposed to accomplish the following: (1) Ensure the Charter includes reference to the new Global Internal Audit Standards which are effective Jan. 9, 2025; and (2) Ensure the Charter accurately reflects the Regents’ responsibilities and oversight role as to the Chief Audit Executive and Chief Compliance Officer.

The Board of Regents meeting will resume at 8:00 a.m., December 6, 2024, in Madison.