State Plan Update

Significant Activities Since 2000

Update of Each Goal

Goal 1: Achieve and sustain a Preeminent Statewide Array of Postsecondary Educational Institutions That Are Recognized for Their Distinctiveness and Their Excellence Nationally and Internationall

Goal 2: Provide Affordable and Equitable Access for Every Qualified Maryland Citizen

Goal 3: Contribute to the Further Development of Maryland’s Economic Health and Vitality

Goal 4: Support and Encourage Basic and Applied Research

Goal 5: Strengthen Teacher Preparation and Improve the Readiness of Students for Postsecondary Education

Goal 6: Provide High-Quality Academic Programs for a Population of Increasingly Diverse Students

Goal 7: Establish Maryland as one of the Most Advanced States in the Use of Information Technology to Improve Learning and Access

Goal 8: Achieve a Cost-Effective and Accountable System of Delivering High-Quality Postsecondary Education

Introduction

Pursuant to §11-105 of the Education Article, the Maryland Higher Education Commission is required to update the State Plan for Postsecondary Education every two years. This is the first update of the State Plan, which was approved in June 2000. This update is not a new plan but rather a reflective report on the progress made and new issues that have arisen since the State Plan was written. The update reflects upon the progress made by Maryland’s postsecondary education community in achieving the goals of the State Plan. The update reflects the work of many people, in particular, broad representation provided by the Commission’s Segmental Advisory Council and its staff. The Segmental Advisory Council includes the Chancellor of the University System of Maryland, the President of Morgan State University, the President of St. Mary’s College of Maryland, the President of the Maryland Independent College and University Association, the Executive Director of the Maryland Association of Community Colleges, and the Executive Director of the Maryland Association for Private Career Schools. Through these segmental representatives, students, faculty, and campus administrators throughout the State’s postsecondary education system contributed to the update of the State Plan.

Since the adoption of the State Plan for Postsecondary Education in 2000, a number of significant activities have occurred. The State entered into a Partnership Agreement with the U.S. Department of Education, Office for Civil Rights, to improve the educational opportunities for African Americans in Maryland’s higher education system. The postsecondary education community has been involved in continuous dialogue concerning each one of the eight goals of the State Plan over a twelve-month study period. Performance accountability consisting of individualized goals, objectives, and measures used for assessing progress was adopted. Since 2000, a comprehensive review and reassessment of mission statements occurred; funding guidelines were adopted; and the Task Force to Study College Readiness for Disadvantaged and Capable Students issued its final report and recommendations on academic preparation, teacher preparation, and financial aid. A comprehensive study of the State’s financial aid programs was conducted, which included recommendations consistent with the Task Force on College Readiness.

Present and Future Needs

This section highlights the major external forces—Maryland’s shifting demographics, economic development, information technology, pre-K-12 education, and civic and social responsibility—that the State of Maryland will continue to encounter in responding to the postsecondary education needs of its citizens.

Maryland’s Shifting Demographics

As identified in the State Plan, a series of sociological trends have altered the visage of postsecondary education: increased participation by older Americans, the impact of the “baby boom echo,” and the rising ethnic diversity of student populations. Older students continue to be a large presence at Maryland colleges and universities. These students often require more flexibility in location, classes, availability of faculty, and type of facilities than younger undergraduates. Over the next six years, substantial growth will continue in the number of new full-time freshmen entering Maryland campuses fueled by an influx of recent high school graduates. The increase will squeeze the physical and instructional capacities of Maryland campuses through that period.

The number of minority students at Maryland campuses has soared 50 percent in the past 10 years and represents all of the enrollment growth in the State during this period. Currently, minorities constitute 35 percent of Maryland college students, compared to 25 percent nationally. These trends have important implications for student preparation and success. While African Americans have made progress in retention, graduation, and transfer in recent years, their rates have consistently lagged behind those of all students. Research has found that having a mix of students from ethnically and culturally diverse backgrounds on campus enhances learning and critical thinking. The impact is particularly great when students from different racial and ethnic groups engage in frequent interaction.

Economic Development

Rapid changes in job requirements and the needs of employers have placed a premium on workers with greater educational attainment and advanced skills. Nearly one-third of all job openings in Maryland in 2005 will require a community college degree or higher, and an additional 27 percent of new jobs will require a person with some education or training beyond high school. In addition, more than half of those expected to join the workforce nationally in the next 10 years will be minorities.

Surveys by the Maryland Higher Education Commission (Commission) and the Maryland Business Roundtable for Education have found that employers in the State have strong demand for, but difficulty attracting, college-educated applicants with backgrounds in business, health, secondary and special education, engineering, and computer and information technology. The educational attainment and job training of these groups have traditionally lagged behind that of others. To keep pace with technology, continuous education will become a regular component of the work experience.

Another source of economic development continues to be Maryland’s science-oriented research universities, which are powerful tools for economic growth. Through their combined efforts, Maryland is among the nation’s top five states in terms of university-based research and development expenditures. However, more can be achieved. Maryland ranks below the national average in commercializing technology, and has lagged other top states in patents, commercial applications and new company spin-offs, though technology transfer activity by Maryland universities has increased in recent years.

Maryland’s community colleges and private career schools also are powerful tools for economic growth. These institutions produce the technicians and health care workers who are the backbone of many employers. They also provide considerable opportunities for employees to upgrade their skills to meet the changing needs of their jobs or to prepare for new ones.

Information Technology

The use of advanced technologies continues to transform the higher education enterprise. Paper-intensive activities such as registration and the management of student records can now be on-line. Students can gain financial aid and academic counseling from the home or the workplace. Through the vast bandwidth made possible by Internet II, faculty can talk face-to-face to other faculty or to students worldwide through live, real time video; researchers a continent apart can share the same experiment in real time; and medical doctors can provide medical treatment remotely. Students should be technologically accomplished and able to apply the tools of appropriate technology to their respective fields upon graduation.

Necessary to these advances is the existence of adequate infrastructure and equipment on each campus to permit the campus to participate in advanced telecommunications. Collaboration in research and instruction among campuses and the sharing of on-line courses is not possible without a robust high-speed network linking all campuses. The further sharing of resources with the public schools requires inclusion of those schools in such a network.

The most visible impact of information technology has been seen in distance learning, which has grown drastically in Maryland in the past few years. Between 1997 and 2000, the number of credit courses offered by distance learning at Maryland campuses grew by 72 percent – from 1,245 to 2,135. The number of students served by these courses soared by 83 percent -- from 29,145 to 53,194. The number of degree programs offered primarily or entirely by distance learning jumped from 17 to 50. Despite these impressive figures, there is still no statewide high-speed digital educational network to facilitate the sharing of electronic courses among Maryland’s campuses and schools. Substantial differences have developed among Maryland colleges and universities in terms of their possession of the baseline of technology and equipment needed to provide the most utilized forms of distance learning and multi-media instruction.

Pre-K-12

Cooperation between the State’s postsecondary sector and its public schools is critical to the improvement of education at all levels. Maryland, like other states, faces a critical shortage of teachers. The Maryland State Department of Education has estimated that Maryland will need to hire nearly 9,000 new teachers in the 2002-2003 academic year. All jurisdictions in the State are expected to experience shortages. Large numbers of teachers have reached, or will soon attain, retirement eligibility. Although incentives such as scholarships, loan forgiveness, hiring bonuses, increased salaries, low-interest mortgages, and alternative certification routes can be used to attract additional teachers; colleges and universities have not enrolled as many students as they can serve into teacher education programs. A study by the Commission found that teacher preparation programs could absorb an additional 4,600 students within their current resources.

In terms of student performance, research has shown that students who take a college preparatory course of study in high school perform better in their first year in college than those who do not and are more likely to earn their degree. The Maryland Partnership for Teaching and Learning has identified core learning goals and academic content standards designed to help students make the transition from high school to college and the workplace. The Task Force to Study College Readiness for Disadvantaged and Capable Students developed a series of recommendations to ensure that minority and low-income students participate in college preparatory curricula and have adequate opportunity to enter and graduate from institutions of higher education.

Civic and Social Responsibility

The promotion of citizenship has traditionally been one of the central concerns of postsecondary education. Campus activities designed to advance public service and community outreach, to encourage cooperative ventures with other organizations, and to instill the benefits of cultural diversity all contribute to the “betterment of the whole.” Maryland higher education institutions are involved in numerous joint projects with elementary and secondary schools in the State to ensure the uninterrupted promotion of civic and social responsibility of Maryland’s students. Maryland collegiate institutions and private career schools also have initiated an array of activities designed to serve business, industry, and other employers in the State.

Higher Education Funding

State General Fund Outlook

The rapid growth in revenue that the State enjoyed in the late 1990s and early 2000 has leveled off and declined. Like many other states, Maryland has experienced a drop in economic activity and slow revenue growth. According to the Board of Revenue Estimates, fiscal year (FY) 2002 and FY 2003 revenue growth is well below FY 2001. It is anticipated that this sluggish growth in revenue will result in a cumulative revenue shortfall. To close this gap, the State has initiated cost containment actions and spending of reserves to balance the FY 2002 and FY 2003 budgets. Some analysts predict that measures taken to balance the FY 2002 and FY 2003 budgets may still leave the State with a deficit for FY 2004.

Although economic forecasters predict that a recovery is imminent, the next few years will be lean for higher education. The demand for public funds is increasing as a result of escalating costs for health care, elementary and secondary education, and public safety. As a result, higher education will face a competitive funding environment.

State Operating Support for Postsecondary Institutions

Education has been a high priority for the State and one of the few areas within Maryland that has experienced substantial increases in State funding. Over the past two years, Maryland's public colleges and universities enjoyed a considerable increase in State support. On average, general fund support for Maryland higher education rose 12 percent annually, between FY 2000 and FY 2002, well above the national average of 6 percent. Maryland ranked seventh nationally in the percentage increase in state tax revenues for operating expenses between FY 2000 and FY 2002. The State’s commitment to higher education is also evident by the proportion of total general fund revenues dedicated to operating and capital support. In FY 2002, 16 percent of the total general fund revenues were dedicated to operating and capital support for Maryland’s colleges and universities. This is up from 13 percent in FY 2000. Between FY 2000 and FY 2002, the State experienced moderate tuition increases. The four-year public institutions maintained annual tuition increases at four percent and tuition increases at community colleges were held to moderate levels, averaging three percent.

The current economic downturn threatens to leave higher education institutions with only small budget increases in their budgets for the coming year. The FY 2003 budget includes a 2 percent overall increase in State operating support for postsecondary education--with some segments receiving less than that amount--well below the average annual increase of 12 percent enjoyed just two years ago. In addition, the current fiscal constraints will push postsecondary education toward higher tuition levels.

State Capital Support for Postsecondary Institutions

Since FY 2000, the State has made substantial capital investments to correct a backlog of facility renewal projects and to build capacity to accommodate an anticipated growth in student enrollments. Between FY 2000 and FY 2003, the State invested $1 billion in capital projects to meet the needs of higher education. This includes $75 million in academic projects financed through revenue bonds, which are secured by auxiliary fees (income, fees, rents, charges, and other revenues from the use of auxiliary facilities) and academic fees (tuition, student, and activity fees). Repayment of debt service is available from these sources as well as from specifically authorized State appropriations and contracts, grants, and gifts.

The FY 2003 budget includes $112 million for new higher education capital projects. This includes funds to enhance the campus infrastructure and improve the quality and adequacy of facilities at Maryland’s Historically Black Colleges and Universities (HBCUs), a commitment embodied in the State’s Office for Civil Rights Partnership Agreement.

Meeting the capital needs of higher education will remain a challenge. The State has responded to this challenge by planning to invest $1.1 billion in capital funding over the next five years.

Student Financial Aid

Over the last three years, the State increased efforts to minimize financial barriers to higher education for Maryland citizens by offering a wide range of student financial aid programs. The Educational Excellence Awards Program, the State’s largest need-based financial aid program, grew 15 percent and accounts for nearly half of all financial aid program funding in the State. State support for the HOPE scholarship programs and programs designed to award academic performance in high school and college increased from $3.8 million in FY 2000 to $21.4 million in FY 2003, as these programs were phased in over the last several years. In general, State financial aid increased 48 percent between FY 2000 and FY 2003.

While State financial aid increased significantly since FY 2000, the proportion of aid awarded strictly on the basis of financial need declined. For FY 2003, 49 percent of the State financial aid is in the form of need-based student aid, which is comprised of the Educational Excellence Awards, Part-Time Grants, and Professional School Scholarships. This is down from 63 percent just three years ago. This shift is the result of significant funding increases in the HOPE scholarship programs.

Funding for the Jack F. Tolbert Memorial Student Grant Program, a need-based grant program for students attending private career schools, increased from $200,000 in FY 2001 to $300,000 in FY 2002. The Commission has recommended that each year thereafter, the allocation for the Tolbert Grant program increase by $100,000 until the annual funding reached a maximum of $700,000 in FY 2006. Due to budget constraints, funding for Tolbert remains at $300,000 in FY 2003.

The largest provider of student financial assistance continues to be the federal government. In FY 2000, the federal government provided 60 percent of student financial aid in Maryland, while 30 percent of student financial assistance was provided in the form of institutional aid and 5 percent came from private sources. The State provides 5 percent of financial aid assistance to students attending Maryland’s public and private institutions.

Significant Activities Since 2000

OCR Partnership Agreement

The State of Maryland and the United States Department of Education, Office for Civil Rights (OCR), entered into a Partnership Agreement for the purposes of improving the educational opportunities for African Americans in Maryland's public institutions of higher education and ensuring compliance with the State’s obligations under federal law. As part of the Partnership Agreement, the State and OCR agreed to examine and address the status of African Americans regarding access to, enrollment in, retention in, and graduation from the State’s public four-year institutions of higher education. Central to this commitment is the continuing contributions of the HBCUs and the necessity of ensuring that these institutions are comparable to and competitive with the State’s Traditionally White Institutions (TWIs) in all facets of their operations and programs. The State is committed to remedying and removing vestiges of past discrimination, if any, as required under federal law, and expanding educational opportunities for African American students without placing unfair burdens on them in the desegregation process, particularly as related to the unique role of HBCUs and their students, faculty, and staff.

Since the implementation of the Partnership Agreement, the Maryland General Assembly has approved several OCR-related initiatives. The multi-year Access and Success Grant program received initial funding of $3 million in FY 2001. Increases in this program were provided in FY 2002 and FY 2003, bringing the total funding to $6 million and fulfilling the State’s commitment to double the funding for this program. Each HBCU will receive $1.5 million in FY 2003 to better prepare students entering these institutions in their freshman year and push them towards graduation in four years.

The State committed to raise the match for the Private Donation Incentive Grant program to a $2 match for every $1 raised by a historically black institution up to a certain level over a five-year period. The State was also successful in establishing the HBCU Enhancement Fund. This initiative includes a cumulative authorization of $75 million in Academic Revenue Bonds (ARBs) over a five-year period (between FY 2003 and FY 2007) to fund capital facility projects and improvements at the HBCUs. Over the next 20 years, the State has committed to pay the debt service on these bonds until the debt is retired. The amount of funds dedicated to pay the debt service will increase gradually over the next five years. When there is no debt service or when only a portion of funds is needed to pay the debt service, funds will be available for one-time only enhancements such as improving information technology or purchasing computers for eligible students.

Since there was no debt service for FY 2003, the Governor’s proposed operating budget included $6 million in the enhancement fund. Due to fiscal constraints, $3 million was deferred to FY 2004. Budget bill language was adopted expressing the intent of the budget committees that the Governor increase the OCR enhancement appropriation in FY 2004 to reflect the partial deferral of enhancement funds in FY 2003. Overall, the FY 2003 operating budget includes $3.4 million in enhancement funding for the HBCUs, $3 million as part of the enhancement fund for one-time only operating enhancements and $400,000 to support the purchase of personal computers for low-income students at Morgan State University. Furthermore, in FY 2003, $1.2 million in information technology funding was provided to support the purchase of personal computers for low-income students for three HBCUs within the University System of Maryland.

While the efforts made to date do provide additional enhancement funds for HBCUs, significant funding is still required to fulfill the goals of the OCR Partnership Agreement to ensure that Maryland’s HBCUs are comparable and competitive to the State’s TWIs.

Measuring Up 2000: The State-By-State Report Card for Higher Education

In November 2000, the National Center for Public Policy and Higher Education produced its first state-by-state comprehensive assessment of performance in higher education. The report graded each state on their respective performances in the following categories: preparation, participation, affordability, completion, benefits, and learning. While Maryland’s rate of participation in higher education is one of the highest in the nation, the report gave Maryland a grade of D in affordability. The tuition charged by Maryland’s public four-year colleges and universities is one of the highest in the nation (7^th), yet the amount of state grant aid to full-time undergraduates ranks the State much lower (18^th). Recent efforts to moderate the rate of growth in tuition along with increases in student financial aid have not substantially changed this ranking. While there were questions raised regarding the methodology used in this report, Maryland’s low grade in affordability suggests that access to higher education for citizens of Maryland, particularly among the State’s lowest income families, is an issue of great concern.

Task Force to Study College Readiness for Disadvantaged and Capable Students

The Task Force to Study College Readiness for Disadvantaged and Capable Students issued a final report in December 2001 that provides a comprehensive strategy to ensure that disadvantaged and capable students have adequate opportunities to matriculate in and successfully graduate from institutions of higher education. The Task Force made a number of recommendations that are aligned with the goals included in the State Plan. These recommendations include:

Study on State Financial Aid

The American Institutes for Research (AIR) conducted a review of Maryland’s State financial aid programs and issued a report in September 2001. The report made a number of recommendations that are consistent with those of the Task Force on College Readiness, including increases in need-based financial aid, decentralization of programs, an early intervention component for the Guaranteed Access Grant Program, expansion of outreach efforts, and the need for data to analyze and monitor the effectiveness of programs. In addition, AIR recommended that:

Financial Aid Legislation

Legislation was introduced in the 2002 session to make changes recommended in both the Task Force on College Readiness and the AIR reports. Enacted legislation included:

The Commission has also established a workgroup to address concerns raised by the Task Force and the AIR study regarding the lack of comprehensive data to analyze need-based and other financial aid programs effectively, guide allocations, and to determine effectiveness of programs. A Joint Chairmen’s Report will be completed by October 2002, which will provide a framework and timeline for data collection and research to evaluate the effectiveness of the State’s financial aid programs. Future research will determine if the amount of financial need for low- and moderate-income students is being met by State, federal, and institutional financial aid.

Regional Higher Education Centers

Maryland collegiate institutions have initiated an array of activities designed to serve business and industry, and other employers in the State. These include partnerships aimed at establishing regional higher education centers which provide access to higher education programs to citizens in unserved or underserved areas of the State. Currently four regional higher education centers operate in Maryland; two new centers are being developed. The centers respond to the business and industry needs of the geographic regions they serve.

The State recognizes the importance of regional higher education centers and has demonstrated this commitment by granting the Commission statewide coordinating responsibility for the centers. The Commission recommends State funding for the centers to the Governor and General Assembly and administers all State operating funding for centers not governed by the University System of Maryland (USM).

According to statute, the State may provide grants to the centers for ongoing operating expenses and lease payments and may also provide incentive funds to promote collaboration among colleges and universities with the centers providing programs. Since their inception, the centers have not received consistent financial support, with only a few receiving State funds for operating expenses. This lack of consistent funding presents a challenge especially for newly established centers that must struggle to cover their initial start-up costs.

Update of Each Goal

Goal 1: Achieve and Sustain a Preeminent Statewide Array of Postsecondary Educational Institutions That Are Recognized for Their Distinctiveness and Their Excellence Nationally and Internationally.

Distinctiveness and excellence among Maryland’s higher education institutions hinges upon focused, distinct, and complementary institutional mission statements; the efficient and effective delivery of the highest quality academic programs, research, and educational services that are reflected in these mission statements; solid curricula; and the teaching, research, and public service capabilities of the faculty.

In response to this goal, Maryland colleges and universities have been successful in their efforts to achieve national recognition in certain disciplines, but understand that there remains room for improvement. Many Maryland institutions are nationally recognized for their undergraduate and graduate programs, which are often ranked in the top tiers of national institutional rankings or have top ten rankings in several disciplines. For example:

· The Johns Hopkins University is ranked 15th among top national universities and has achieved an international reputation for excellence in many specialties

Having faculty consistently remaining current in their fields is key to providing a first-rate educational experience. Maryland institutions support and have built faculty development into their reward structures. In fall 2001, 67.8 percent of all full-time faculty at Maryland public four-year campuses and 67.6 percent of those at the USM institutions held a terminal degree (doctorate or first professional degree). It is the goal of these institutions to bring their average faculty salaries up to at least the 85th percentile, compared to faculty salaries at institutions in similar Carnegie classifications. In addition, more than 90 percent of the full-time faculty hold terminal degrees at Maryland’s state-aided independent institutions.

In addition to ensuring excellence in faculty, Maryland’s higher education community understands the importance of a liberal education and the positive impact this education has on individuals and society; this understanding is evident in the academic curricula offered by Maryland institutions. The State of Maryland’s general education policies strongly support the breadth of a core curriculum, requiring that all the State’s postsecondary students benefit from course work in the arts and humanities, behavioral and social sciences, biological and physical sciences, and mathematics and English.

The expansion of evening and weekend programs, on-line programs, certificate programs, and new degree programs provide Maryland citizens with the postsecondary educational experiences they need and want at times that are convenient. The Maryland postsecondary community is committed to offering educational experiences that broaden the capabilities and intellect of all citizens across their life spans.

Maryland’s postsecondary education students are increasingly involved in internships, field experiences, and community service. These activities serve to educate students about the needs and responsibilities of society in general.

Since the adoption of the State Plan in 2000, mission statement review was implemented consistent with the spirit and intent of Senate Bill 682. Mission statements submitted by the State’s public colleges and universities were found to be highly compatible with and supportive of the State Plan, were found to be clear, precise, and succinct, and describe institutional distinctiveness and commitment to providing the highest quality academic experiences to all students. They also describe institutional strengths that are unique and that contribute to the State's diversity of programs.

The link between an institution's approved mission and its aspirations for high-quality new program development is critically important to the program review process, which is the key means of avoiding unnecessary and unreasonable academic program duplication and to ensuring that State and Federal equal educational opportunity obligations are fully met.

Barriers and Constraints

Maryland has been described nationally by its peers as a State with an extraordinary system of higher education as evidenced by student mobility across institutions and among the various segments of higher education. Despite the gains Maryland has made in easing transfer among and between all institutions of postsecondary education through policy changes and developing articulation agreements and new academic programs designed for transfer ease, four-year colleges and universities regularly challenge the applicability and quality of the transfer curricula from the community colleges. More must be done to focus the missions of our higher education institutions and to ensure that these missions complement one another as two-year and four-year institutions work together to meet student needs.

Priorities and Areas of Emphasis

· The Commission needs to continue to be vigilant and aggressive in its efforts to make certain that students are provided with a smooth transition from two- to four-year institutions and that students’ transfer needs are met seamlessly.

· The Commission needs to continue to support the institutions in achieving the State's funding guidelines so that the foundation of quality faculty can be continued and expanded to support excellence in teaching, research, and service.

· The Commission must expand its work with all higher education institutions and established higher education centers to further develop and provide educational experiences and programs that are convenient in both time and location for Maryland citizens.

· The importance of institutional mission statement review must not be lost or lessened as institutions try to achieve their individual goals. The Commission must ensure that missions are consistent with the State Plan update and that individual distinctiveness of mission and programmatic emphasis is not lost.

· Maryland has a long and valued history of supporting a strong liberal education and the Commission must continue to assist this effort in light of current market forces to develop programs narrowly focused towards specific markets. Support of the liberally educated citizenry is over the long-term the most effective path towards meeting the educational needs of Maryland's and the nation's work force and leaders.