I am pleased to have this opportunity to talk with you about Frostburg State University. This opportunity is one that I particularly appreciate because it was not one afforded presidents in my previous system. In the seven months I have been at Frostburg, I’ve learned a great deal about Frostburg State – its excellence and its potential. I would like to begin, though, by sharing with you a lesson about the geography of Maryland that I recently received. Two weeks ago, at the Loews Hotel here in Annapolis, I overheard a conversation between two gentlemen. One of them said that he lived in Western Maryland and didn’t want to drive back home because of the distance. When asked exactly where he lived, he said that his home was between Frederick and Hagerstown.

I relate this story to you because I am beginning to understand why so many at FSU and other leaders in Allegany and Garrett counties feel the need to remind those who are “downstate” (another term I have learned) just how far west the state does actually extend. What we would consider the “real Western Maryland”, “the Western Panhandle”, “Mountain Maryland” plays an important role in the economic vitality of the state – in the “One Maryland” that has been envisioned by both legislators and Governor O’Malley. And it has become clear to me that Frostburg State University has enormous potential to contribute to the economic development of that region and the state.

Frostburg State University is unique among System institutions for its singular role as the main cultural, technological, and economic development hub of the region. Since my arrival, we have expanded the University’s activities in economic development. We have a new Vice President for Governmental Relations and Economic Development. With his help, we have just begun site work on the Allegany Business Center at Frostburg State University. ABC@FSU is a cooperative venture between the University, Allegany County, private developers and the State of Maryland. The County and the State are currently working together to secure funding for the site preparation work. We expect this facility, when completed, to help attract businesses to the area and provide a home for the companies currently located in the Tawes technology incubator on the FSU campus. Additionally, the county has a signed lease agreement with a developer for the construction of the first phase of the project which is a 50,000 square foot building. The developer is securing tenants who will provide financial resources to support student internships, student employment, and faculty and student research.

All of these activities, as well as new initiatives to address the critical shortages of nursing faculty and primary and secondary teachers, recognize the degree to which Frostburg State University is in and of the community of Western Maryland. Whether it is the Allegany Business Center, which is underway after an extended delay, or the Center for Communications and Information Technology, which has again been pushed down another two years in the capital budget, Frostburg State University leads the way in providing first class opportunities for business and educational development in the region. I urge this body to recognize that any reduction in Frostburg State University’s ability to engage in crucial community, work force efforts damages not only the institution but the region.

While FSU has a special relationship with the region in which it is located, the University serves the entire state of Maryland. As the following charts indicate, we have students and alumni throughout the state. Most of our students are from the greater Baltimore-Washington area. FSU is deservedly proud of the diversity of its student population. Enrollment of minority undergraduates has increased 74 percent over the past 10 years. This fall, minority students comprised more than 20 percent of the total undergraduate population, with African-Americans comprising the largest segment: 16.6 percent of the total of all undergraduate students. We are very proud that one of our outstanding (and actively engaged) students, Richard Scott of Calvert County, has been nominated by Governor O’Malley to serve as a student member of the Board of Regents.

 

Alumni by County for Fall 2006

As many of you are aware, Frostburg State University has in recent years experienced a decline in enrollment. My top priority is to work with the campus to reverse this trend. We have created an Enrollment Management Task Force, which has already implemented strategies to attract increasing numbers of the very best undergraduate and graduate students to FSU. Some of our initial steps have included increasing the number of scholarships, and reaching out to community colleges to increase our recruitment of transfer students (an area in which we have suffered the sharpest decline). The University has also recently completed a national search for a new Associate Vice President for Enrollment Management.

Efforts to increase enrollments at the University are linked to our need to tell Frostburg’s impressive story to a wider audience. We have established a new division at the University for Communications and Media Relations. Our goal is to develop and implement a definitive and broad-based marketing initiative for the University.

In order to generate capacity for scholarship and other initiatives, a renewed focus on fund raising for the University is another critical component in our efforts to move Frostburg State University forward. We are presently searching for a new Vice President for University Advancement who will work to launch a sustainable capital campaign with an initial goal of $15 million over five years.

For these initiatives to be successful, it is essential that you support the budget as recommended by the Governor. While I am prepared to address specific campus issues raised by DLS I first am compelled to comment on several recommendations which threaten the integrity and stability of the system as well as the institution I represent. Let me specifically address the three recommendations made by the Department of Legislative Services for the budget of the University System of Maryland.

DLS Recommendation 1

DLS recommends the reduction of $9,325,000 in general funds from the fiscal 2008 allowance for USM. This is approximately one-third of the funds available for enhancements after allowing for enrollment growth.

Frostburg State University urges you to support the Governor’s budget, which includes $200,000 in enhancement funding for FSU. While the funds proposed for Frostburg State University are not large in comparison to the sum under discussion, they are no less critical to our ability to move forward on necessary programs than at any institution. This funding is critical to our efforts to recruit and retain faculty in rural Western Maryland and to the development of expanded programs designed to serve the economic and workforce development needs of the region. Each of the programs is intended to strengthen the institution’s role in developing a more highly skilled and educated workforce. At risk are the development of new and expanded programs that will enable the University to address critical workforce shortages, such as teaching, nursing, science, technology, engineering, and math.

DLS Recommendation 2

DLS recommends that USM transfer an additional $9,325,000 to fund balance. This would fulfill the USM policy that 1% of the current unrestricted funds be transferred to the fund balance. This additional transfer would bring the total transfer to fund balance to $29,058,850. DLS considers this to be prudent given the State’s structural budget deficit and potential down-turn in spending affordability in future years.

Frostburg State University has consistently exceeded the University System of Maryland guidelines regarding the amount transferred to fund balance. Any additional mandated transfer would represent a real cut to the University’s operating budget and would further limit our flexibility to respond to the challenges that the enrollment shortfall has created.

DLS Recommendation 3

DLS recommends reducing the general fund support for enrollment growth by $4,134,000. This reduced funding level more accurately reflects the cost to educate an additional student at a USM institution.

Although Frostburg State University is not slated to receive funding through the USM Enrollment Funding Initiative for FY2008, I encourage you to reject this recommendation and support the Governor’s budget item for enrollment funding. I ask this not only on behalf of those institutions within the system that have experienced significant growth and need additional resources to meet the needs of these students, but I also ask this as the president of an institution that intends to grow in the future. It is essential that enrollment growth be fully funded in order to preserve the quality of the System.

Let me now respond to the specific questions for FSU included in the legislative analyst’s report.

First, let me note that we appreciate the recommendation made by the Department of Legislative Services that you concur with the Governor’s allowance identified for Frostburg State University

1. The President should comment on the cause of the declining retention rates and steps taken to improve this measure. In addition the President should comment on the improvement in graduation rates among African American students and why this trend has not resulted in an overall improvement in graduation rates.

We continue to recognize the uneven nature of our retention rates and the importance of raising them to improve our overall enrollment. Since one of the highest attrition rates exists among our undeclared students, we have established an Advising Center specifically to assist them. In addition, we have expanded our successful learning community program so that all of our incoming students will have an opportunity to take classes together in an atmosphere designed to build support networks with their peers, faculty, and University staff. Finally, we have identified funds for “retention scholarships” to assist those students with financial hardships that may make it difficult for them to return. We will be evaluating the impact that these initiatives have on our retention rates.

We are proud of the increase in the graduation rate for African-American students. Although we need further study to fully explain this trend, we believe it may be related to the high level of engagement of these students in campus life – in student government, and our volunteerism and leadership development programs.

We do not yet have enough historical data on the impact of our Learning Communities program which will be mandatory for all incoming freshman in the fall. We also are evaluating our new Advising Center for students who have not yet declared a major. Both of these initiatives were developed to improve retention and graduation rates for all students

2. The President should comment on the declining enrollment at Frostburg and what steps are being taken to reverse this trend.

As indicated earlier, a number of steps have been initiated to reverse this trend. I have already addressed this issue in my earlier remarks.

3. The President should comment on future plans to award aid to students with greater financial need as well as whether a student’s EFC is a factor in what type of and how much institutional aid is awarded.

We appreciate the recognition in the analyst’s report that Frostburg State allocates 43% of its institutional financial aid to scholarships based on financial need. This exceeds the USM average of 35%. As noted in the report, the majority of need-based aid has been awarded to students with an expected family contribution (EFC) below $5,000. Although we will continue to focus our efforts on those with the greatest need, we also want to be attentive to students from middle-class families who do not qualify for the need-based aid available from various federal and state programs. Often, the need of students with the lowest EFC is satisfied by a combination of federal, state, and need-based institutional aid. This has enabled the University to direct a substantial portion of other institutional aid to those students from middle-class families.

4. The President should comment on the significant growth in academic support positions since fiscal 2002.

The legislative analyst’s report correctly indicates that there has been an increase of 16 positions in this category since 2002. Frostburg State University has the responsibility for management of the University System of Maryland Center in Hagerstown. Nine of the added positions are for the support of the Hagerstown Center; although they appear in FSU’s budget, they are positions for the System Center. The other growth in academic support personnel is the result of our having converted eight positions from the contingent staff category to fully-benefited positions. These actions are consistent with the policy adopted by the Board of Regents.

Finally, I want to emphasize how debilitating it would be for University System of Maryland in general and to Frostburg State University in particular if the legislature were to cut the Governor’s proposed allocation to the System. The University System and its component institutions are still recovering from the devastating cuts of a few years ago. While cuts to the University’s budget would compromise our ability to facilitate workforce and economic development in Western Maryland, I am most concerned about the impact that these cuts would have on the University. It would impact not only the number of students we can admit to Frostburg State, but also how well we serve them.

A year ago I was attracted to Frostburg State University, in great part, because of the excellent reputation that the University System of Maryland has throughout the country. I now feel a responsibility to urge you to pass a budget that will not erode the quality within this system, and will not threaten the quality of our students’ experience at Frostburg State. I urge you to pass a budget that will not compromise our ability to be responsive to the workforce needs of the state.

Maryland is committed to a significant investment in K-12 education. This investment should yield far more students being prepared for higher education. If we are to be successful in our efforts to encourage our high school graduates to remain in Maryland for their higher education, it is essential that we offer them access to excellent institutions of higher education so that they can achieve their educational goals and secure employment and which allows them to stay and grow within their home state.