FREDERICA FREYBERG:

THE UW SYSTEM BUDGET REQUEST GOES BEFORE THE BOARD OF REGENTS NEXT WEEK. IT CALLS FOR A $42.5 MILLION FUNDING INCREASE OVER THE TWO YEARS COVERING 2017-2019. IT ALSO SEEKS AN END TO THE TUITION FREEZE WHICH HAS BEEN IN PLACE SINCE 2013. GOVERNOR SCOTT WALKER WANTS TO CONTINUE THE FREEZE. TONIGHT WE HEAR FROM UW SYSTEM PRESIDENT RAY CROSS. BEFORE WE BEGIN WE SHOULD NOTE THAT WPT IS PART OF THE UW SYSTEM AND RAY CROSS, THANK YOU VERY MUCH FOR BEING HERE.

RAY CROSS:

THANKS. GLAD TO BE HERE.

FREDERICA FREYBERG:

YOUR BUDGET DOESN’T ASK FOR $88 MILLION IN COST TO CONTINUE FUNDING. IN THAT WAY A $42.5 MILLION ASK REALLY CONSTITUTES A BUDGET CUT, ISN’T THAT RIGHT?

RAY CROSS:

WELL, ACTUALLY IT DOESN’T. A $42.5 MILLION REQUEST CAME ABOUT THROUGH EFFORTS WORKING WITH AND LISTENING TO PEOPLE FROM ALL OVER THE STATE. WHAT DOES THE STATE NEED? WHAT DO THEY WANT FROM THE UNIVERSITY OF WISCONSIN? AND HOW DO WE BETTER SERVE THAT AND MEET THOSE NEEDS? THIS REQUEST IS TARGETED TO FOUR FOCAL POINTS THAT, IN FACT, HELP ADDRESS THE MOST IMPORTANT THINGS THAT THE PEOPLE OF WISCONSIN AND THE BUSINESSES OF WISCONSIN TOLD US THEY NEEDED. SO I THINK IT’S IN DIRECT RESPONSE TO THAT.

FREDERICA FREYBERG:

WHAT DO THEY NEED AND WHAT DO THEY WANT?

RAY CROSS:

SOME OF THE THINGS THEY NEED INCLUDE AFFORDABILITY. HOW DO WE MAKE TUITION AND THE COST OF HIGHER EDUCATION AFFORDABLE? AND THE ARGUMENT OVER TUITION IS ONLY ONE PART OF THAT. THERE ARE FIVE KEY CONTRIBUTORS TO THE COST OF HIGHER EDUCATION, TUITION BEING ONE OF THOSE. STATE GPR OR STATE SUPPORT BEING ANOTHER. AND BY THE WAY, STATE GPR SUPPORT COMING TO THE UNIVERSITY RIGHT NOW IS THE LOWEST IT’S EVER BEEN IN THE HISTORY OF THE SYSTEM WHEN ACCOUNTING FOR INFLATION. THE THIRD FACTOR IS FINANCIAL AID. WE HAVE REQUESTED AN INCREASE IN FINANCIAL AID WHICH WILL BE PART OF THE HIGHER EDUCATION BOARD BUDGET. ANOTHER IS IN FACT COST ACTUALLY TO DELIVER THAT. UNIVERSITY IS WORKING HARD TO MAKE SURE ITS COSTS ARE UNDER CONTROL AND WE’RE REALLOCATING THOSE RESOURCES TO THE CLASSROOM. FINALLY, IT’S TIME TO A DEGREE. THE MOST INFLUENTIAL FACTOR IN THE COST TO ATTEND A UNIVERSITY. IF YOU CHARGE AN EXTRA $200 A YEAR FOR TUITION. THAT’S $800 IN A FOUR-YEAR PERIOD. IF YOU STAY AN EXTRA SEMESTER, THAT COULD BE AN EXTRA $5,000.

FREDERICA FREYBERG:

SO HOW IS THAT MESSAGE BEING RECEIVED BY THE LEGISLATORS AND BUDGET WRITERS?

RAY CROSS:

ACTUALLY QUITE WELL. THAT MESSAGE IS BEING RECEIVED QUITE WELL. NO ONE WANTS TO GET A BILL FOR AN EXTRA $200 ON THEIR TUITION TICKET. NOBODY WANTS TO DO THAT. EVERYBODY UNDERSTANDS THIS IS MUCH MORE COMPLICATED THAN JUST TUITION. AND THE UNIVERSITY NEEDS TO EXERT ENERGY TO REDUCE THAT TIME TO GET A DEGREE

FREDERICA FREYBERG:

LAST WEEK YOU PUT OUT A STATEMENT SAYING CONTINUED BUDGET CUTS AND FROZEN TUITION CANNOT BE SUSTAINED. WHY NOT? WHAT HAVE BUDGET CUTS AND ZERO TUITION INCREASES MEANT FOR THE UNIVERSITY?

RAY CROSS:

THE UNIVERSITY HAS ABSORBED $362 MILLION IN STATE REDUCTIONS IN THE LAST FIVE YEARS. THAT’S A SIZEABLE REDUCTION. THOSE DIDN’T JUST BEGIN IN THE LAST FIVE YEARS. WE’VE HAD PREVIOUS CUTS. HOWEVER, WE’VE ALSO INCREASED TUITION PRIOR TO THAT. BUT IN THE LAST THREE, NOW FOUR YEARS, WE’VE NOT BEEN ABLE TO DO THAT. SO IT’S TIME TO INVEST IN THE UNIVERSITY. AND THAT’S BEEN MY MESSAGE. OF COURSE, THE CUTS HAVE RESULTED IN 1100 FEWER EMPLOYEES, THEREABOUTS. THINGS — FEWER CLASSES AND THAT ULTIMATELY IMPACTS TIME TO DEGREE

FREDERICA FREYBERG:

PEOPLE SAY YOU’VE GOT THE MONEY. YOU CAN JUST MOVE IT AROUND AND MAKE THIS WORK.

RAY CROSS:

I WISH IT WERE THAT EASY. IT ISN’T. I WOULD ARGUE THAT WE DON’T HAVE THE MONEY. WHAT WE’RE DOING, WHERE WE CAN MOVE IT AROUND, WE ARE. AND THAT EFFORT IS PART OF WHAT WE CALL OUR CORE AGENDA, OUR REFORM AGENDA.

FREDERICA FREYBERG:

WHAT TUITION INCREASE IS THE UW REQUESTING OR WOULD YOU LIKE TO SEE THE BOARD OF REGENTS REQUEST?

RAY CROSS:

WELL, RATHER THAN SAYING A TUITION INCREASE, I THINK THERE NEEDS TO BE AN INVESTMENT IN THE UNIVERSITY OF WISCONSIN. IT’S TIME TO DO THAT NOW. WE’VE ABSORBED THESE CUTS. IT’S TIME TO CHANGE COURSE AND INVEST IN THE FUTURE OF THE STATE. AS IT RELATES TO TUITION, OR STATE GPR, STATE CONTRIBUTION, IT IS TIME TO INVEST. THE SOURCE OF THAT MAY NOT BE AS BIG A QUESTION AS THE UNDERSTANDING THAT IT’S TIME TO INVEST. SECONDLY, I WOULD ARGUE THAT THE DECISION TO SET TUITION NEEDS TO BE IN THE HANDS OF THE BOARD OF REGENTS.

FREDERICA FREYBERG:

SO IF THE UNIVERSITY DOESN’T GET A TUITION INCREASE, WILL YOU REQUEST MORE STATE FUNDS TO OFFSET THAT?

RAY CROSS:

WELL, THAT CONVERSATION IS ONGOING. THIS BUDGET REQUEST OF 42.5 IS A REASONABLE REQUEST. IT IS AN EFFORT TO RESPOND TO THE NEEDS. IT DOES NOT INCLUDE, OR PLAN FOR, AN OFFSET IN TUITION. IT IS DIRECT RESPONSE TO THE NEEDS WE THINK WE NEED. THE ITEMS WE THINK WE NEED TO FUND. IT DOES HANDCUFF THE UNIVERSITY IN TERMS OF ITS CAPABILITY TO DO THINGS. WE NEED AN INVESTMENT. THIS IS A MINIMAL INVESTMENT. IT IS NOT OUR FINAL ASK. EXCUSE ME, IT IS NOT OUR INITIAL ASK AND WE’RE GOING TO NEGOTIATE DOWN. THIS IS OUR FINAL ASK. THIS IS IMPORTANT TO US.

FREDERICA FREYBERG:

NOW WE ASKED THE GOVERNOR’S OFFICE IF THE TUITION FREEZE WOULD BE FOR THE FIRST YEAR ONLY AND THEY RESPONDED HE HAS CALLED FOR EXTENDING THE HISTORIC TUITION FREEZE. WHAT DO YOU KNOW ABOUT A ONE YEAR ONLY FREEZE?

RAY CROSS:

THE PRESS HAS REPORTED THAT IT’S FOR TWO YEARS. HE HAS TOLD US THAT HE HAS MADE UP HIS MIND — I SHOULDN’T SAY HE’S MADE UP HIS MIND — HE IS COMMITTED TO FREEZING TUITION AT LEAST FOR THE FIRST YEAR, FREDERICA. AND THAT HE IS INTERESTED IN OPTIONS AND HE’S FLEXIBLE ABOUT THE SECOND YEAR. HE WANTS TO UNDERSTAND WHAT WE WOULD LIKE TO DO AND WHAT PROPOSALS WE HAVE. OUR RESPONSE IS LET’S HAVE THE BOARD MAKE THAT DECISION, GOVERNOR, AND THAT WOULD BE OUR RECOMMENDATION.

FREDERICA FREYBERG:

THE GOVERNOR WANTS TO MAKE INCREASED FUNDING CONTINGENT ON PERFORMANCE INCLUDING APPARENTLY TRACKING A NUMBER OF STUDENTS, GRADUATION RATES, STUDENT LOANS AND GRADUATE EMPLOYERS. HOW MUCH OF THAT ARE YOU ALREADY DOING?

RAY CROSS:

A WHOLE LOT OF IT. WE HAVE OVER 57 ACCOUNTABILITY METRICS. WE POST THEM ON OUR WEB PAGE. YOU CAN GO TO OUR WEB PAGE AND SCROLL DOWN AND FIND OUR ACCOUNTABILITY METRICS. WE DO THAT VERY WELL. IN FACT, WE’RE RECOGNIZED AS ONE OF THE MOST AGGRESSIVE REPORTERS OF ACCOUNTABILITY METRICS IN THE UNITED STATES. SO WE WELCOME THAT. WE’RE NOT AFRAID OF THAT. WE AREN’T CONCERNED ABOUT IT. WE WANT TO BE ABLE TO DEVELOP ANY PERFORMANCE-BASED MODEL METRICS IN COLLABORATION WITH THE LEGISLATURE IN A FASHION THAT WOULD BE SIMILAR TO WHAT SOME OF THE OTHER STATES WHO HAVE BEEN SUCCESSFUL AT THIS ALREADY DO.

FREDERICA FREYBERG:

PRESIDENT RAY CROSS, THANK YOU FOR JOINING US.

RAY CROSS:

THANKS FREDERICA.