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LEGISLATIVE TESTIMONY
Freeman A. Hrabowski, III
President
The University of Maryland, Baltimore County
February 2003
Our Vision | The State of the University | Students | Faculty
Research | Education & Service | Technology Development
Continuing Education & Business Outreach | Private Giving
Impact of Budget Cuts | Summary of FY2004 Budget Request
OUR VISION
Academic Excellence, Economic Development & Social Vitality
I am delighted to be here to report to you on UMBC’s progress and to respond to questions you may have regarding our FY 2003 and FY 2004 budgets.
UMBC is greater Baltimore’s public research university, emphasizing graduate programs in the sciences, engineering, public policy, and human services, and building on a strong undergraduate liberal-arts-and-sciences core. First and foremost, UMBC focuses on the quality of the educational experience of our students, and we are distinctive among the nation’s research universities because of our emphasis on undergraduate education, reflecting our tradition of linking research and teaching. It was especially gratifying to be named by Newsweek as one of America’s 12 "Hot Schools" this year. We are an exciting campus with a bold vision and entrepreneurial spirit. We are determined to continue attracting and educating growing numbers of students who will enter Maryland’s workforce and reflect the diversity of our State.We also are recognized increasingly as a major resource for both building the State’s economy and addressing its social concerns. UMBC fosters economic development primarily through (1) research and training-related contracts and grants; (2) technology development, including the activities of our technology center and Research Park, bwtech@umbc; (3) partnerships involving continuing education and business outreach; and (4) workforce development.
UMBC also supports Maryland’s economic development in more general ways related to our rapid development as a major research university. We now enroll 11,700 students (including 9,550 undergraduates); employ approximately 1,900 full-time and 300 part-time faculty and staff; have an operating budget of roughly $280 million (not including mandated reductions in FY-03), including an annual payroll of $152 million and over $85 million annually in research-and-training contracts and grants; and we have more than 37,000 alumni, 85% of whom live and work in Maryland and contribute to its economic and social vitality.
UMBC offers scores of bachelor’s, master’s, and Ph.D. programs in the physical and life sciences, social and behavioral sciences, engineering, mathematics, information technology, and the humanities and visual and performing arts. New degree programs are being offered in environmental science, computer engineering, financial economics, and acting.
Brainpower and knowledge are fueling discoveries and innovation, and increasingly we are building on these strengths by collaborating with others. We are creating partnerships and using multi-level approaches to connect faculty and students with companies, agencies, and school systems.
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THE STATE OF THE UNIVERSITY: FACING CHALLENGES FROM A POSITION OF STRENGTH
UMBC’s rapid development as a major research university over just 36 years is reflected by its recognition and classification as a Carnegie Research Extensive University, which constitutes the top tier of American research universities. Only 152 (4%) of the nation’s 3,500 colleges and universities are included in this elite category. In a separate ranking by the National Science Foundation, reflecting federally funded research in science and engineering, UMBC ranks 153rd nationally (a rapid rise from 200th in 1996). (See Figure 1.)
Federally Funded Research
This leap is especially significant because most of the other nationally ranked institutions are substantially larger and older than UMBC.
UMBC also ranks 16th nationally in funding from NASA. All of these are important measures of our growing strength and recognition. UMBC also is among a relatively small number of colleges and universities with a Phi Beta Kappa chapter (we were one of the youngest campuses ever to earn this designation), reflecting our strength in the liberal arts, and UMBC remains the only public campus in Maryland with a Howard Hughes Medical Institute Investigator. The campus also is a two-time recipient of the U.S. Presidential Award for Excellence in Science, Mathematics and Engineering Mentoring. We consistently rank among the top five research universities nationally in the production of bachelor's degrees in Information Technology and have been designated a Center of Academic Excellence in Information Assurance by the National Security Agency.
To sustain this level of achievement, we must maintain our momentum – a formidable challenge in good times and a virtually impossible one if we experience further budget cuts. The Larson Commission’s funding-guideline goal for the University System of Maryland sought to achieve funding for System campuses at the 75th percentile of our peer institutions based on funding per student from State and tuition sources. In UMBC’s case, for example, this meant that if the University of Delaware received $100 per student, UMBC at a minimum should receive $75 per student. On examining funding levels per-student at our peer campuses, we find that the 75th percentile, on average, is about $15,600 per student. The latest round of budget reductions has placed UMBC at 64% of the goal.
For UMBC, this development is particularly significant because we have never fully recovered from the mandated budget cuts of the early 1990s. We were not funded at the recommended guideline then, and we have never "replaced" the funds that were lost at that time. Nor have we been able to restore fully programs that were eliminated, nor reinstitute services that we eliminated. A 1997 legislative audit reminded us of our crucial unmet needs in such areas as academic advising, course access, and critical library and information-technology resources. During the past five years, we have been able to address many of those shortcomings.
Yet, while UMBC’s State-supported budget has grown over the past five years, so has UMBC. Since 1998, the number of full-time equivalent students increased from 7,400 to 9,200 (24%) (See Figure 2); sponsored contracts and grants grew from $44 million to $85 million (93%) (See Figure 3); total degrees conferred per year increased from 1,700 to 1,900 (12%); and the number of students living on campus has increased 55% -- from 2,200 to 3,400 – and from 33% to 44% of our full-time undergraduate population. These kinds of changes have contributed to UMBC’s continuing transformation and have generated new demands on our operations that far outstrip our ability to respond. Over the past two years, UMBC has cut approximately $7 million and 106 positions. Next year, we face having to open two major buildings, an additional residence hall, and having several hundred more students enrolled and living on campus.
Enrollments
Contracts and Grants
We recognize the need to reduce the General Fund appropriation to UMBC and other campuses in order to balance the State budget. Deep cuts to our budget, however, would result in substantial reductions in services and would hinder our ability to continue recruiting and retaining outstanding students and faculty and to compete for external contract-and-grant funding, among other adverse effects. The campuses should be able to generate additional revenue to offset losses in State support, including setting tuition at appropriate levels to meet our cost of education. It is important that campuses have the resources they need to maintain quality, and to give students the opportunity to make market decisions regarding the institutions they wish to attend (all the while ensuring access).
UMBC’s current strengths and solid foundation reflect the efforts of State leaders, our faculty, staff, and students as well as years of careful thinking, ambitious planning, and hard decisions. UMBC has managed for results, and the State’s investment and confidence in us have produced solid returns.
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THE UMBC COMMUNITY: QUALITY, ACHIEVEMENTS, CONTRIBUTIONS
Students
UMBC’s freshman class of approximately 1,400 students is one of our largest ever and among the most diverse nationally (34% minority, including 20% Asian, 11% African American, and 3% Hispanic and Native American). It includes hundreds of valedictorians and 4.0 students, and the top quartile mean SAT is 1374 (See Figure 4).
SATs
We also have admitted substantially more students with SAT scores above 1450, demonstrating UMBC’s increasing attractiveness to high-achieving students and the success of our special scholars programs—the Meyerhoff Scholars, Linehan Artist Scholars, Humanities Scholars, and Sondheim Public Affairs Scholars.
Our total headcount enrollment of 11,700 has produced an annual FTE enrollment of 9,116 which is 136 FTE above our budgeted enrollment for FY 2003 of 8,980. This year’s enrollment represents a 20% increase in just four years and 40% since 1996. These enrollments are consistent with our designation by the Board of Regents as a "growth" campus. The current year enrollment has increased workload in many areas and has taxed the campus’s facilities.
Producing well-prepared graduates who can respond to Maryland's workforce needs is one of UMBC's most important and lasting contributions to economic development. Graduates move easily into the workforce in areas related to their majors – from engineering and IT firms to public and social service agencies and public school systems throughout the State.
Undergraduate Research
Providing research opportunities, both on-campus and off-campus, for undergraduates is an important part of the UMBC’s culture. It is not surprising, therefore, that UMBC is one of only 13 universities to receive the 2003 Beckman Scholar Award that will fund a year (two summers and an academic year) of undergraduate research for five undergraduates in the biological sciences or chemistry/biochemistry. Other recipients this year include Carnegie Mellon, William and Mary, the University of California-San Diego, the University of Arizona, and Macalester College, among others.
Student Entrepreneurship
With generous support from the Alex. Brown Foundation, UMBC established the Alex. Brown Center for Science & Technology Entrepreneurship in 2000. The Center develops and delivers educational programs, internships, services, and research to support the creation of entrepreneurism in the region. Programs range from credit and non-credit classes for students to executive training programs for business-incubator CEOs and senior staff, to a 24-hour IdeaLab providing round-the-clock access to entrepreneurial resources (e.g., databases, business software).
Well Prepared Graduates
- Thousands of local physicians, attorneys, engineers, teachers, computer science/information-technology staff, and other professionals are among UMBC alumni. The National Security Agency, for example, employs over 500 UMBC math, computer science, and language graduates.
- UMBC is one of the largest producers each year of undergraduate IT degrees in the nation and contributes significantly to the numbers of computer science and information systems graduates in Maryland. The campus will continue producing large numbers of graduates in areas responsive to Maryland’s current and future workforce needs. Indeed, one of the most critical factors in relocation decisions by companies is the quality and supply of the workforce.
- The American Society for Biochemistry and Molecular Biology ranked UMBC 1st nationally in the total number of undergraduate chemistry and biochemistry degrees awarded to African Americans, 2nd in the total number of undergraduate degrees in chemistry and biochemistry awarded to minorities, and 3rd in chemistry and biochemistry master’s degrees awarded to minority students
- UMBC graduates also contribute to the local economy through business start-ups and by working in local entrepreneurial ventures.
UMBC’s ability to attract and retain high-achieving students is especially significant because we have the highest tuition in the System among the traditional campuses. Our students and their parents are discerning consumers and expect a high level of quality for their educational investment. They know that UMBC was named a "Hot School" by the 2003 Kaplan/Newsweek "How to Get Into College" guide and was the only Maryland university rated a "Best Value" by Kaplan/Newsweek 2001 College Catalog.
We are now attracting Maryland students who, arguably, five years ago might have matriculated out of state, and our enrollments have increased substantially, seriously taxing campus resources. UMBC has achieved the level of excellence parents and students expect despite having a substantially lower level of General Fund support per student (approximately $11,000) than other campuses in the System. We are seriously concerned that if State support is further reduced and our percentile of guideline funding continues to decline, we will be under even greater pressure to increase tuition. We also are concerned that many more of Maryland’s best and brightest students will once again consider studying out-of-state to avoid higher costs and the possibility of diminished services.
Already, our hiring freeze on staff has precluded us from hiring needed staff in a number of areas ranging from public safety, enrollment management, and advising to the library, postal services, accounting, and information technology.
FacultyUMBC has approximately 470 State-supported full-time faculty who teach and conduct research, 200 full-time research faculty funded from contracts and grants, and 350 part-time faculty. They are dedicated to their students and their work and are accountable through a rigorous process of review for promotion and tenure. Because of UMBC’s heavy emphasis on hands-on experiences for students, our faculty work to connect their own research and teaching with students’ interests, leading to substantive faculty-student interaction in labs or to student internships.
Another measure of the quality of our faculty is their impressive per capita ranking for such major awards as Fulbright and Guggenheim Fellowships, comparing favorably with the University of Virginia and the University of North Carolina-Chapel Hill (See Figure 5).
Faculty Awards
As State support for higher education has fluctuated over the years, due chiefly to changes in the economy, faculty hiring has fluctuated and has not always been responsive to enrollment increases, new programs, and institutional plans and aspirations. The size and quality of UMBC’s faculty will largely determine for many years to come our level of success as a research university. UMBC must continue to hire high-quality faculty to meet our growing enrollment, replace retiring faculty, and to replace faculty we lose to other universities and corporations with whom we compete intensely.It is important not only to build our faculty complement, but also to provide the necessary support structure for research and teaching that help to retain faculty. Our faculty drive the campus’s research enterprise, attracting grants and contracts and generating technology transfer. Replacing a research faculty member in higher education’s highly competitive environment typically involves providing start-up resources (e.g., laboratory renovations), which for scientists and engineers can cost $350,000 to $500,000 per faculty member.
It’s also important to point out that the size of our instructional faculty has direct implications for building the size and quality of our student body. UMBC’s enrollments have steadily increased and will continue to do so despite the current hiring freeze. We have reported to MHEC a student-to-faculty ratio goal of 23:1 ratio by fall 2003, in the hopes of assuring solid pedagogy, performance accountability, and a strong national ranking relative to other public research universities. We are concerned, however, about being able to achieve this goal if our budget is cut further.
RESEARCHUMBC anticipates and helps to shape the future by producing new knowledge through faculty research -- either individually or through partnerships with corporations or public agencies. As previously noted, UMBC is ranked by the Carnegie Foundation in the top tier of American universities and is one of the leading recipients of federal funding in science and engineering. In fact, UMBC’s ranking in such federal funding jumped dramatically, from 200th to 153rd, in just the past five years.
Selected Key Research Centers & LaboratoriesThe GEST (Goddard Earth Sciences & Technology) Center
was created in 2000 when the NASA Goddard Space Flight Center (GSFC) awarded a Cooperative Agreement to UMBC to create a center of excellence in earth sciences. UMBC and its partners -- Hampton University, Howard University, Caelum Research Corporation, and Northrop Grumman Corporation – are engaged in collaborative research programs, and the Center exists under a five-year, renewable award with GSFC. This government-university-industry consortium is expected not only to provide a "home" for earth scientists, but synergistically to foster new directions in research and technology.The Joint Center for Earth Systems Technology (JCET) operates under a 1995 cooperative agreement between UMBC and GSFC and works to develop new technology for environmental remote sensing. JCET now includes 25 research professors, 12 research scientists, and three research associates. Its research foci include atmospheric radiation, observations, clouds and precipitation, and interdisciplinary studies. JCET faculty are fully integrated into the academic life of the university, teaching courses and advising students in Physics, Geography, Mathematics/Statistics, and Computer Science/Electrical Engineering.
The Joint Center for Astrophysics is a cooperative venture between UMBC and GSFC’s Laboratory for High Energy Astrophysics. Center activities of the Astrophysics Center include research in high-energy astrophysics, developing educational opportunities in astronomy for UMBC students, and participation in outreach educational activities to the university and the surrounding community.
The Center for Advanced Studies in Photonics Research (CASPR) fosters advanced photonics research and technology development in the areas of optical communications, optical sensing and devices, and quantum optics. Initial resources for CASPR were provided by NASA, which enlisted UMBC faculty and graduate photonics students. We expect the Center to evolve into a long-term focus for photonics research in the Baltimore-Washington area.
The Center for Urban Environmental Research and Education (CUERE) conducts research on the environmental, economic, and social consequences of the urban landscape’s transformation. It convenes conferences and symposia, supports university teaching programs, and assists in K-12 education. The Center was created with initial support from the U.S. Environmental Protection Agency and the U.S. Department of Housing and Urban Development.
EDUCATION & SERVICE
UMBC’s Center for Health Program Development & Management (CHPDM), under contract with Maryland’s Department of Health and Mental Hygiene, is nationally recognized for helping Maryland control the costs and improve the quality of healthcare in the State. The Center provides programmatic and financial analyses and decision-support.
UMBC’s nationally recognized Shriver Center continues to provide applied experiences each year for approximately 1,000 students through internships, coops, and community service positions at 500 organizations in the U.S. and abroad. The Center attracted over $8 million in grants and contracts from National and State agencies and foundations.
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TECHNOLOGY & DEVELOPMENT
UMBC is a model university for developing partnerships focusing on technology development. Our faculty and students work actively with business, industry, and government, in combining our public responsibility with our technical expertise.
UMBC’s Technology Center complex (South Campus) includes five buildings located on 30 acres and houses approximately 170,000 square feet of research, office, and conference facilities. Located on I-95 just minutes from BWI Airport and within view of thousands of north- and southbound travelers daily, the facility is fully leased and houses emerging biotech and IT companies employing over 200 workers. The General Assembly, State Department of Business & Economic Development, and Baltimore County all strongly supported UMBC’s efforts to acquire these facilities, which are an excellent example of UMBC’s collaboration with business and government in the interest of economic development and enhancing the region’s quality of life.
The UMBC Business Incubator for small, brand-new biotech and IT companies also is housed in the Tech Center. While working to become mature businesses, these incubator companies benefit from a variety of university resources (e.g., low-cost office/lab space, shared administrative services, access to UMBC’s library and computing resources, access to faculty expertise, and availability of business, legal, marketing, and technical advice). Some of our incubating companies and graduates are described in Attachment 1.
The Technology Center and Incubator programs are self-supporting enterprises, fostering economic development in our community. They are by-products of the investments we have made to attract productive research faculty and build a strong research infrastructure.
RWD Technologies became the anchor tenant in bwtech@umbc, UMBC’s research park, locating its new Applied Technology Laboratory (ATL) in a two-story, 40,000 square-foot facility in the park. ATL is building toward a staff of 200 employees and approximately 50 visiting senior engineers and scientists from universities and industry. The research park, working with ATL and future tenants, will encourage technology development and transfer, collaborative research-and-development and training, and new employment opportunities for students and graduates.
UMBC continues to rank as one of the top institutions in the nation in terms of the number of inventions produced per dollar of research expenditure. Strategies for commercializing faculty inventions and technology transfer are designed to contribute to economic development and garner new resources for the campus. Increased emphasis on identifying the applied uses of faculty research has resulted in steady increases in invention disclosures. To capitalize on the licensing potential of our existing and emerging patent portfolio, patent applications have expanded to the international marketplace. A stronger emphasis on maximizing the licensing potential of the existing and emerging patent portfolio has doubled UMBC’s license portfolio over the past two years.
CONTINUING EDUCATION & BUSINESS OUTREACHComputer Certification Training Center
UMBC is aggressive in responding to the training needs of area corporations and agencies, contributing to employee development and corporate flexibility. To ensure a quick and responsive approach to emerging training needs, UMBC created the Computer Certification Training Center, LLC (CCTC) in 1999. CCTC was among the first for-profit, corporate-model training services opened by a public university. In addition, UMBC formed a 501(c) (3) in January 2002, UMBC Training Enterprises, Inc. (TEI). It focuses on a broad base of professional development, including the regionally renowned Biotechnology Regulatory Series, which trains approximately 250 professional engineers per year on issues ranging from quality control/assurance and good manufacturing practices to design/validation of biotech facilities.CCTC and TEI have trained employees and clients of virtually every Fortune 500 company operating in the Baltimore Washington metropolitan area. Regular clients include Comcast, Verizon, Computer Sciences Corporation, BGE, Social Security Administration, State of Maryland, Baltimore County and City Governments.
Corporate training partnerships have been established to serve employees of Northrop Grumman, Social Security Administration, and Computer Sciences Corporation, to name a few. Recently, employees of the Maryland State Highway Administration completed a Professional Engineer Civil Examination review course at CCTC. And a full class of staff members from Baltimore County’s Office of Information and Technology attended CCTC for Oracle Training.
The bio-regulatory program serves a critical niche market – workers in biotechnology who must be intimately familiar with the FDA and OSHA regulations governing their work. Employees from local bio-tech companies along with full-time graduate students are enrolled in the program. Delivered in person on the UMBC campus, the program is simulcast to students in Frederick and Shady Grove. As Maryland seeks to become a center for bio-tech and life-sciences research, this type of educational support is essential.
UMBC's model for effective workforce development, in support of the University's larger commitment to regional economic development, has often been cited and featured in the local and national media.
PRIVATE GIVING
Campaign for UMBC
I am delighted to report that we raised more than $66 million during our first-ever capital campaign, exceeding our five-year $50-million goal by nearly a third. Major gifts by corporations, foundations, alumni, faculty, and staff build endowment support (See Figure 6) for student scholarships, faculty research, endowed professorships, faculty and staff development, and other programmatic initiatives ranging from the sciences and engineering to teacher preparation, the arts, and community service.
Endowments
Because Maryland, unlike other states (e.g., Virginia, North Carolina, California), has not enjoyed a long tradition of private giving to public institutions, we have worked hard to surpass our goals. Our efforts have been strengthened through increasing public knowledge and pride in our achievements and those of our sister USM institutions. The public readily sees the difference that private giving and endowment make, and it takes pride in our privately supported achievements. Top-flight programmatic initiatives led by renowned faculty and superb staff attract donors. It is important that we not discourage these and other donors through additional budget cuts.
IMPACT OF BUDGET CUTSUMBC’s original General Fund support in the FY 2003 budget was virtually the same as that in FY 2002. As a result, UMBC had to absorb a COLA, increased health care costs, servicing additional enrollment, and other mandatory operating expenses totaling $4.5 million to begin FY 2003. A 1.5 percent tuition increase and $2.6 million in permanent cost reallocations were necessary to cover these costs. During FY 2003, the budget has been reduced by $5.9 million. The FY 2003 cost containment measures and reallocations are assumed in the Governor’s FY 2004 budget. In addition, UMBC’s fund balance was reduced by another $2.7 million.
In managing these reductions and reallocations of greater than $10.4 million, UMBC’s guiding principle has been to take actions that would have the least impact on students, protect the quality of academic and research programs, and minimize hardship on our faculty and staff. The hiring freeze and elimination of unfilled full-time positions have helped us to avoid layoffs and excessive furloughs, however, vacancies occur randomly and often in critical areas increasing the risk of reduced services and inefficiency.
Our FY 2004 unrestricted education and general expense allowance of $156,727,913 is not sufficient to keep pace with inflationary and mandatory cost increases in FY 2003 and FY 2004. In fact, our FY 2004 allowance is almost the same as our FY 2002 budget despite the fact that we have added 550 students since then. Moreover, our percent of guideline funding (64%) is at its lowest point since the guidelines were enacted.
In the event that more reductions become necessary, but additional tuition rate increases are not permitted, UMBC would face having to make radical reductions in workforce and critical services. Examples follow:
- Additional furlough days for faculty and staff which would seriously affect service levels, compliance efforts, and morale of faculty and staff.
- Laying off State-supported Contingent and Student Employees. Such a measure would eliminate approximately 120 contingent I and II employees and 900 student employees (excluding graduate assistants) on campus for the last quarter of the fiscal year. These measures would severely impact service levels in all State-supported departments, especially the library and student service areas during critical times, including final exams, graduation, and registration and financial aid processes for next year. These reductions would adversely affect students needing employment to continue their education, thus possibly affecting future-year retention.
- Laying off approximately 80 full-time regular employees during the 3rd and 4th quarters of FY 2003 in order to exact a full-year salary savings in FY 2004. This represents approximately 10% of our non-teaching staff positions. This personnel action would severely handicap UMBC’s abilities to:
- Provide adequate services to existing students and faculty
- Recruit new students and faculty
- Comply with Federal and State regulations
- Compete for additional funding from outside sources
- Provide adequate internal controls and safeguard assets
- Sustain adequate maintenance and safety of facilities
SUMMARY OF FY 2004 BUDGET REQUESTOperating Budget
UMBC’s FY 2004 budget request of $285.2 million reflects an increase of $4.8 million, which includes an increase of $3.2 million in unrestricted funds and $1.6 million in restricted funds (grants and contracts with 28.09 FTE positions). The change in unrestricted funds represents both the campus’s contribution to meeting the State’s fiscal shortfall by reducing its State appropriation by $5.9 million (7.7%), and increasing tuition, auxiliary, and other revenue by $9.1 million (7.4%). The tuition revenue change of $7.1 million reflects an enrollment increase of 220 FTE students and a 9% tuition rate increase (4% increase approved in the fall, 2002 and a 5% FY 2003 mid-year change). The auxiliary revenue change of $1.9million is needed to address workload increases (12 FTE positions) and improve services to students. The General Fund decrease and tuition increase will result in a net revenue change of $1.2 million to the Education and General (E&G) portion of the budget (0.8%) over FY 2003. This E&G revenue increase, along with a reallocation of over $2.0M in non-teaching unit reductions, will fund the following necessary budget increases: new facilities operating costs (Public Policy & Information Technology/Engineering Buildings), including personnel (4.0 FTE positions), utilities, housekeeping services, and less than 15 year life equipment; new faculty and advising staff (6.0 FTE) to respond to the enrollment increase; the 20% increase in health insurance premiums; utilities inflation; academic revenue bonds debt service; and financial aid to offset tuition rate increases for need-based and merit students.
The $5.9-million reduction in our State appropriation follows reductions made from FY 2002 to FY 2003 of 47.5 E&G FTE positions and a net change of only $241,000 in our State appropriation. This change was not sufficient to cover mandatory cost increases to academic revenue bonds debt service, a 4.0% COLA annualization, health insurance increases of 12%, and an enrollment increase of 260 FTE students.
There are other financial challenges for UMBC, which are still unresolved for this fiscal year. These expense items include PeopleSoft Student Administration System implementation, replacement of MAITI funding, academic program accreditation costs, and replacement of lost facilities renewal funding.
Capital Budget
The Governor’s proposed FY 2004 capital budget for UMBC includes one item: greater-than-15-year-life equipment for the Public Policy Building. Public Policy is one of the major programmatic components of our mission, along with the sciences and engineering. Funds are requested to equip this new facility that will house the Departments of Policy Sciences, Political Science, Economics, Sociology and Anthropology, the Maryland Institute for Policy Analysis and Research, and the Shriver Center. Construction is scheduled to be complete in August, 2003.
RESPONSE TO ANALYST’S COMMENTS ON UMBC1. Performance Analysis: Managing for Results: Teacher Preparation
" Related to its goal of creating and maintaining a well-educated workforce, UMBC reports the number of students that complete its teacher preparation program, as well as those who meet all teacher education requirements and are employed in the Maryland public schools. Exhibit 1 illustrates that the number of students completing the teacher preparation program increased sharply in fiscal 2002. The increase is due to the first cohort of post-baccalaureate students completing the Urban Teachers Education program. Fiscal 2003 will be the first year of data that reflects the institution’s new requirement that students pass the PRAXIS exams before they are considered a program completer. Although the effect of the Urban Teacher Education program is not a one-time event, its effect will be mitigated by the new higher standard for completion. As a result, the institution did not revise its 2003 and 2004 estimates for completers. The measure of students who meet all teacher education requirements and are employed in Maryland public schools is based on a survey of graduates the previous year. Consequently fiscal 2002 data reflects outcomes of the fiscal 2001 graduating cohort. The President should comment on whether the institution expects to exceed the current fiscal 2003 estimate for this measure, given the increase in completers in fiscal 2002.
Campus Response:While we know that UMBC will continue to provide well-prepared teachers for Maryland’s students and schools, we do not expect to exceed significantly our 2003 estimates. Enrollment and retention in teacher education programs are affected when teacher candidates take positions as provisional teachers and choose to complete their certification in non-traditional ways. The No Child Left Behind legislation stipulates that now all teachers in low-performing schools must be "highly qualified." As a result, many provisional teachers may return to complete certification programs. A challenge facing them will be the requirement that all candidates demonstrate their "high qualification" by passing all required PRAXIS exams.
RESPONSES TO LEGISLATIVE ANALYST’S RECOMMENDED ACTIONS CONTAINED in the USM BUDGET OVERVIEWAs noted already by some of my colleagues, the University System accounts for approximately 7% of the State budget, yet the System is absorbing approximately one-third of the proposed reductions. If UMBC is to sustain the momentum we have achieved in recent years, we must avoid further cuts. Moreover, it is essential that we have flexibility to adjust tuition appropriately and that we avoid tuition caps. We should also continue to make the tuition remission benefit available to employees (and their spouses and dependents). It is an important recruitment-and-retention benefit, and to eliminate it at this time would demoralize employees who are already facing no merit increases for the second consecutive year, no COLAs, and the strong likelihood of furloughs and possibly even layoffs.
Attachment 1UMBC Technology Enterprise Center and Incubator Program
UMBC has sponsored a technology incubator since 1989. In 1996, the incubator program was expanded with the purchase of the 30-acre, five building Lockheed Martin Research Lab facility site which was renamed techcenter@UMBC. In addition to eight incubator companies, techcenter@UMBC houses seven emerging technology or post-incubator companies, five affiliates or pre-incubator companies, five research groups, and two training entities. techcenter@UMBC also operates an Idea Lab to help UMBC students and faculty develop businesses. Currently four faculty and student teams are working in the Idea Lab.
In addition to our current incubator companies, 19 companies have graduated from the incubator program with 79% still in business. Four companies were nominated for TEDCO’s Incubator Company of the Year Awards this past year and In Vitro Technologies (IVT), a graduate of the incubator and the sixth largest biotech company in the Greater Baltimore region, won as Best Incubator Graduate. UMBC’s incubator program has developed an extensive business advisory staff including two Entrepreneurs-in-Residence funded by Venable law firm.
The companies at techcenter@UMBC won the 2002 Baltimore County Economic Development Technology Award. They employ 32 UMBC students and work with 40 UMBC faculty or staff and 4 USM faculty or staff. techcenter@UMBC staff have successfully assisted eight companies acquire SBIR, TEDCO or MIPS funding in the past twelve months. The techcenter@UMBC houses eleven bioscience companies, including IVT (30,000 SF) and Cognate Therapeutics (14,000 SF), a start-up company funded by Toucan Capital (State of Maryland is a limited partner in Toucan).
UMBC also operates bwtech@UMBC, a 41-acre research and technology park located on the main campus. UMBC works with a private developer, Grosvenor International, leveraging the public investment in the park’s infrastructure. Currently bwtech@UMBC houses RWD Technologies in a 63,000-SF building; construction of a 60,000-SF multi-tenant building will start in late summer 2003.
Currently there are 500 jobs at techcenter@UMBC and bwtech@UMBC, combined; the two projects pay annual real estate taxes of $150,000 per year. With full development of both sites, there is the potential for a total of 1,800 jobs and total annual real estate taxes of $575,000 per year.
Several examples of successful companies that have contributed to the Maryland economy or promoted technology transfer follow:
- In Vitro Technologies (IVT)
In Vitro entered the UMBC Incubator Program in 1991 as a two-person start-up. Today, IVT is the leading U.S. contract-testing laboratory dedicated to providing in vitro testing services and products for studying the effects of chemicals on humans. IVT leases 30,000 SF at techcenter@UMBC, employs 80 people and has over $10 million in revenues annually. IVT has spun off another company, Stelsys, which employs six people and is developing and commercializing real-world applications of the NASA bioreactor technology. Paul Silber, IVT’s President, regularly mentors other entrepreneurs at techcenter@UMBC, hires UMBC students and graduates, sits on the President’s Advisory Council, and participates in UMBC’s Alex. Brown Entrepreneurship Center programs. UMBC has a 3% equity interest in IVT.- Cognate Therapeutics
Cognate recently entered techcenter@UMBC’s affiliate program and leases 14,000 SF. Cognate was formed by Toucan Capital, a venture capital fund partially funded by the State of Maryland. Cognate is focused on the discovery and development of integrated products for regenerative medicine and provides various services to Toucan Capital’s other portfolio companies. Cognate employs 20 people and is collaborating with several other techcenter@UMBC companies including IVT. Cognate plans to build a 60,000 SF permanent lab facility and is a prospect for bwtech@UMBC.- Receptor Biology
Receptor entered UMBC’s incubator in 1994 as a one-person firm developing and licensing receptors to sell to pharmaceutical companies. The business grew quickly to $4 million in annual revenues and was sold to another life sciences company, yielding a substantial return ($365,000) to UMBC for its 3% equity interest in the company. Receptor’s President, Jesse Baumgold, provides peer mentoring and strategic advice to techcenter@UMBC biotech companies as a Venable Entrepreneur-in-Residence. Dr. Baumgold is also an investor and has made investments in techcenter@UMBC companies.- Boston Life Sciences (BLSI)
BLSI Entered the techcenter@UMBC’s emerging technology program in 2001. BLSI is a publicly traded development stage biotechnology company which has raised over $50 million to fund research programs. BLSI established a research group at techcenter@UMBC to take advantage of Maryland biotech resources and university resources and has invested over $600,000 in constructing a lab and class 1000 clean room.- Scientific Products and Systems, Inc. (SP&S)
SP&S entered the affiliate program in 2002 and the incubator program in 2003. SP&S provides proprietary precision fluid handling products to the bioscience, pharmaceutical, and cosmetic industries. SP&S has a Collaborative Research Agreement with UMBC through faculty member Appa Anjanappa’s lab (Mechanical Engineering). SP&S has hired Dr. Anjanappa’s students, and the professor serves as a consultant to the company. techcenter@UMBC assisted SP&S in acquiring MIPS and TEDCO funding. UMBC has a 1% equity interest in SP&S.- RWD Technologies (RWD)
RWD leases a 63,000-SF building at bwtech@UMBC. RWD’s long history with UMBC includes a $1-million gift to fund IT projects at UMBC, providing employment and internships for our students. Dr Robert Deutsch, President of RWD, serves on UMBC’s Board of Visitors. RWD also has a facilities-use agreement with UMBC ($12,500 per year) which enables RWD’s employees to use dining, athletic, library, and other campus facilities.
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