DRAFT TALKING POINTS TO GUIDE OCTOBER 17 TELECONFERENCE DISCUSSION

Submitted by Frank Fuller for distribution.

COMMON GOALS

In my opinion, we are in agreement on foundational points; The path seems to be the issue….

ECONOMIC LANDCAPE

For our discussion Wednesday, my concerns that frame the proposed path I am suggesting are:”Alarmingly high” risk of new global recession (WSJ,10\9\2012), record high student debt and defaults,50% under\unemployed Bachelor graduates since 2008,Florida lagging other states in economic recovery(DEO,9\7\2012) and Peter Thiel ‘s “University collapse” theory.

Also, I agree with Rep Proctors assessment of Florida’s budget priorities.

For these reasons, I suggest our path to a common goal be linked to Florida economic landscape in terms of tuition.

DIFFERENTIATED TUITION

Using the basic language reported under the “Accountability “segment of our Friday draft, the following are points of clarity knowing much more detail will need to be engrossed once we agree on concept:

The differentiated tuition model will be built on eminent(pick another name,6 digits) degrees (bachelors, masters)as outlined in Fridays draft-50% BOG\50% of indicator-70 % employment HSHWHD.

Step 1.-Until a university reaches a 25% of their degrees qualifying as eminent degrees threshold, all annual tuition increases for any degree program will be limited to annual CPI-U. The eminent degree STATE funding formula during this time frame would be (15%-CPI\U x 2) applied as bonus funding to the university.

Step 2.-At the 25% threshold, a university can assign an annual differentiated tuition by degree up to 2.5 x the CPI-U with eminent degrees remaining 1 full CPI-U below maximum differentiated tuition assigned up to 2.5 x CPI-U maximum. Eminent degrees have to be maintained as 25% of total though degrees may vary each year.

Step 3.-Once a university is designated an eminent Florida university by BOG ( number of eminent degrees) based on BOG established criteria, the university can charge differentiated tuition up to 6 X the CPI-U annually with eminent degree programs remaining 2 full CPI-U below highest tuition rate assigned.

We did not capitalize the word eminent in this text in the hope that another name would surface (different name later?)…..Once the 25% threshold is reached by a university, the state contribution moves to the Performance Funding Plan addressed in the “Accountability” segment draft with no eminent degree bonus funding.

If a university opts out or does not participate in the eminent degree program; maximum tuition increases are limited to CPI-U annually on any (6 digit) degree program.

The program would be revisited and or revised in 4 years based on Florida’s economic landscape, labor market demands, university construction and maintenance and other indicators . As another thought, I agree universities may not price themselves out of existence; but, price points may drive some universities operating under an expansion\multiple site model to lower admission standards to “ “ feed the beast” as cost reduces enrollment from the targeted population or other non Florida options compete for Florida talent.

If the quality of an incoming class or graduation rate during the next 4 years drops two years in a row or 2 out of 3 years, the university would hold tuition increases to CPI-U for all degrees regardless of the schools eminent degree status until the quality of the incoming class and or graduation rate improves as determined by BOG through annual university reviews.