FOR IMMEDIATE RELEASE

November 18, 2004

(TOPEKA) — Yesterday the nine-member Board of Regents received an independent report entitled "Kansas: A New Horizon 2: Kansas Postsecondary Education Higher Education Funding." The 118-page report, produced by the Northwest Education Research Center (NORED) of Olympia, Washington, and commissioned by the Board of Regents, focuses on the challenges facing higher education institutions in Kansas after the passage of the Higher Coordination Act (SB 345) in 1999.

The Act transformed the Board of Regents by bringing all 37 higher education institutions from all four sectors — state universities, community colleges, technical institutions and Washburn University — under its guidance. The Board of Regents had historically governed only the six state universities.

The report concludes that expectations in 1999, when the Act passed, about the state’s ability to adequately fund higher education may have been too optimistic. The report mentions that funding for higher education in Kansas between 1990 and 2000 lagged overall state budget growth by more than seven percent. In Missouri, Kansas’ economically competitive neighbor to the east, higher education funding per student is 26 percent greater than in Kansas. Higher education appropriations in Kansas, as a share of state general fund appropriations, dropped from 16.3 percent in 1990 to 11.8 percent in 2003, and the 2003 share was well below the national average. And, for those who may worry that the problem is an ability to afford a comprehensive higher education system, Kansas’ per capita tax revenues place it at 91.7 percent of the national index — establishing Kansas as one of the states with both taxable resources and an effective tax rate below the national average.

"This independent report confirms many of our long-standing fears — that the state has not kept pace with its statutory responsibility to adequately fund higher education," said Dick Bond, Chairman of the Board of Regents. "Some of this shortfall can be attributed to the tough budgetary circumstances the state has faced recently, however, with the economy showing signs of recovery, now is the time for the state to re-commit itself to properly funding its higher education infrastructure."

The report goes on to say that the financial position of Kansas’ colleges and universities was not good five years ago and it has worsened since. While the public interest in higher education in Kansas is high, a number of things including competing demands for public services have made it difficult to pay the price. In recent years, Kansas also has not provided the resources to fund and expand the capital facilities to house its higher education programs or to stay in front of the curve on deferred maintenance needs.

The report also states that the economic and financial problems presently affecting the state foster what appears to have become a pattern of decline in state support for higher education. The fiscal problems confronting the state are not expected to dissipate soon, and funding for higher education is and is likely to remain insufficient. Without significant policy changes the long-term funding outlook for higher education in Kansas is discouraging. The report concludes by offering that all of Kansas’ higher education’s problems could be mitigated with substantially increased state appropriations. The promises of SB 345 could be kept, and Kansas’ comparative position with other states could be improved.

"The analysis and recommendations contained in this report will provide a good foundation for discussion as we develop a roadmap for rationalizing and enhancing state support for higher education," said Reginald Robinson, President and CEO of the Board of Regents. "Adequate funding and additional revenue to address our rapidly decaying buildings will be priorities in the upcoming legislative session. I look forward to working with the Governor and members of the Legislature as we continue to address higher education in the state. We all share an ultimate goal — a fully effective higher education system worthy of the people in our great state."

The entire report can be viewed online at: http://www.nored.us.

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Visit the Kansas Board of Regents on the Web at www.kansasregents.org.