Effectiveness and Efficiency Efforts Realize $37.8 Million in Savings for USM During FY 2007
ADELPHI, Md. (January 28, 2008) - The University System of Maryland's (USM) Effectiveness
and Efficiency (E&E) Initiative brought $37.8 million in direct cost savings to
the system in FY 2007 and an additional $40 million through cost avoidance,
increased revenue, and the strategic reallocation of resources, according to
the system's recently released annual Efficiency Efforts Report. Adopted in
2004, the E&E Initiative has been a signature program of USM to reduce costs
while improving overall operations across the system. E&E cost savings
alone have totaled more than $94 million for the system since FY 2005.
"As Maryland's public university system, we are answerable to the
citizens for the wise use of the state support that we receive," said USM
Chancellor William E. Kirwan. "Our commitment to E&E ensures that accountability
and cost-containment are core principles for the management of the university
system."
In FY 2007, USM saved or
avoided costs totaling $77.9 million through E&E activities such as
restructuring business processes; partnering with external organizations on the
use of facilities and other resources; competitive contracting; energy
conservation measures; technology improvements; entrepreneurial activities; and
rebalancing in-sourcing and out-sourcing of staff for improved
cost-effectiveness.
The system's E&E
Initiative also includes a focus on academic operations, not just
administrative and business operations, noted Irwin Goldstein, USM Senior Vice
Chancellor for Academic Affairs.
"An important aspect of
E&E is to maximize capacity and reduce cost on the academic side so the
system can admit and graduate more students year to year," Goldstein said. "At
a time when we have received unprecedented budgetary support, we can
demonstrate that we are using these funds to provide higher education for an
ever increasing number of students while controlling the financial impact on
the state."
In accordance with the
board's goals, USM's E&E efforts in FY 2007 realized greater efficiencies and
productivity in academic operations, such as:
- Instructional workload, as a measure of faculty
productivity, rose to an average of 7.5 course units taught per full-time faculty
member (CU/FTEF) at the system's seven comprehensive universities, an
increase from 7.0 CU/FTEF in FY 2003.
- At the system's two undergraduate research
universities-University of Maryland, College Park, and University of
Maryland, Baltimore County-instructional workload rose even more
dramatically to 5.9 CU/FTEF in FY 2007, a 20 percent increase since FY
2003.
- Average time-to-degree, as a measure of
"throughput" and the USM's ability to serve an increasing number of
students, was shorter (8.9 semesters) and four-year graduation rates were
higher (39 percent) than at any time since these measures were first
systematically tracked in the early 1980s. (The national average four-year
graduation rate for public universities is 27.9 percent according to the National Center for Education Statistics.)
- USM's transfer success initiative with Maryland's community colleges is streamlining the
community college-to-USM transfer process, resulting in fewer lost
credits, better integration into four-year programs, and faster
time-to-degree for community college transfer students.
- The use of spring freshmen admission programs is
allowing institutions to eliminate waiting lists, guarantee admission to a
greater number of qualified students, counter the loss of students through
fall attrition and December graduations, and ensure the optimal use of academic
facilities and resources.
As a result of these and
other academic initiatives, USM was able to take on an additional 1,103
students-an increase of 399 students above the FY 2006 total-with no
commensurate rise in state funding to the system.
"This
year's report demonstrates once again the results that USM is achieving by
making effectiveness and efficiency a cornerstone of our administrative and
academic operations," said Chancellor Kirwan. "I am proud that these efforts
are giving Maryland a top-flight public university system whose
accountability measures have become a model for higher education nationwide."
For more information on the USM effectiveness
and efficiency initiative, visit: http://www.usmd.edu/usm/workgroups/EEWorkGroup/eeproject/index.
Contact: John Buettner
Phone: 301.445.2719
Email: jbuettner@usmd.edu
