FY 2017 ANNUAL REPORT presented to the board of regents june 16, 2017Chancellor Robert L. Caret’s2016–17 University System of Maryland Board of RegentsJames T. Brady, chairBarry P. Gossett, vice chairGary L. Attman, treasurerLinda R. Gooden, assistant treasurerMichelle A. Gourdine M.D., secretary Thomas G. Slater, assistant secretary Norman R. Augustine Joseph Bartenfelder, ex officio Ellen Fish James Holzapfel D’Ana E. Johnson Robert Neall Robert L. Pevenstein Louis Pope Robert D. Rauch Frank M. Reid III Brandon Enriquez, student regentContentschancellor robert l. caret’s fy 2017 annual reportintroduction ...................................................................................................................2 progress on strategic priorities increasing maryland’s college completion rate .................................................4 growing maryland’s workforce and driving maryland’s economy ................8 transforming the academic model ......................................................................12 continuing exemplary stewardship practices ....................................................14 advancing institutional quality ...........................................................................16 conclusion ...............................................................................................................19honor roll regents’ faculty awards .........................................................................................20 regents’ staff awards .............................................................................................21 elkins professors ....................................................................................................21Chairman Brady and members of the Board: I am pleased to submit my second annual report to the University System of Maryland (USM) Board of Regents. I am grateful for your selfless commitment and remarkable capabilities as we work together on behalf of our institutions and the students we serve. Thank you for your support and for all you do on behalf of USM.Fiscal year 2017 has been a time of challenge and accomplishment. We inaugurated two presidents, who joined USM in FY 2016. I had the pleasure of taking part in the inaugural ceremonies for Kim Schatzel at Towson University last fall and Ron Nowaczyk at Frostburg State University this spring. Both Kim and Ron have already established themselves as committed, visionary leaders.After 11 years of service, Bowie State University President Mickey Burnim is retiring at the end of this fiscal year. President Burnim’s leadership, vision, and boundless energy have helped Bowie State grow physically, academically, intellectually, and in its service to the community. The impact of that leadership will continue well into the future. Assuming the presidency at Bowie on July 1 will be Aminta Breaux, who brings 25 years of higher education leadership and experience to this position.In addition, Don Boesch, who has led the University of Maryland Center for Environmental Science (UMCES) since 1990, will be stepping down as president in August. Fortunately, Don will remain part of the USM community as a UMCES researcher. A presidential search is underway for this position. I will keep you up-to-date as the search committee makes progress.This board is undergoing change as well. At the beginning of FY 2016, we welcomed Regents Ellen Fish, Louis Pope, and James Holzapfel. With the arrival of the new fiscal year on July 1, 2017, we will bid farewell to our Student Regent Brandon Enriquez, who took his role as the “voice of the students” very seriously, serving on both the Advancement and the Education Policy and Student Life Committees.There will be changes at the USM Office as well. After more than 20 years of service with USM, Joseph Vivona, vice chancellor for administration and chief operating officer, will retire in fiscal year 2018. Joe’s impact on USM has been extraordinary. His efforts have been critical in establishing USM as a system recognized nationally for excellence and innovation. We owe him an enormous debt of gratitude. I also have the sad duty to report that Anne Moultrie, USM’s vice chancellor for communications, will retire at the end of FY 2017 after 36 years of exceptional service, the past 14 leading the USM communications office. USM has benefitted greatly from Anne’s professionalism, commitment, and expertise. She will be missed.Introductionfy 2017 annual report • 3Beyond personnel changes, the past year ushered in signifiant new developments.On October 1, 2016, the University of Maryland Strategic Partnership Act went into effect, codifying, enhancing, and expanding the MPowering the State collaboration between the University of Maryland, Baltimore and the University of Maryland, College Park. While these two institutions maintain their separate identities and independent standing, this stronger relationship is bringing improved academic programs, more impactful research activity, increased tech transfer and commercialization, and greater public and community service.In addition, as part of the University of Maryland Strategic Partnership Act, the USM Office has relocated its headquarters to Baltimore. This move underscores our growing commitment to the city.Also, we unveiled USM’s new logo in fall 2016. This new graphic identity captures USM’s momentum and culture of innovation, while staying true to our alignment with the state’s priorities.Finally, action taken during the 2017 session of the Maryland General Assembly will shape our efforts going forward.The General Assembly approved $1.35 billion in state support for USM as part of our $5.3 billion FY 2018 operating budget. This is an increase of $30.6 million—or approximately 2.3 percent—in state funds over the adjusted FY 2017 level. Key elements of this state budget include: $16.4 million in “tuition replacement” funding, enabling USM to keep the increase in in-state, undergraduate tuition to a modest 2 percent. $8.2 million to offset the cost of new facilities coming on line. $10 million in funding to support the implementation of the University of Maryland Strategic Partnership Act of 2016. There was also a statewide, across-the-board reduction to fringe benefits and state-controlled costs. USM’s share of this reduction is $4.7 million.Turning now to the FY 2018 capital budget, the General Assembly allocated approximately $304 million for capital construction projects across USM. Many of the critical projects that have been funded or advanced will help strengthen Maryland’s leadership position in the sciences, both in research and education.I thank USM Vice Chancellor for Government Relations Patrick Hogan, his team in Annapolis, and his colleagues systemwide for their hard work on behalf of USM throughout the legislative session.The funding levels of both the operating and capital budgets are yet another indication of Governor Larry Hogan’s and the General Assembly’s support for public higher education and USM. This support underscores the university system’s role as the engine of innovation, discovery, and knowledge that is propelling our economy and quality of life forward.Once again, I have put the achievements and accomplishments of FY 2017 within the context of our strategic plan: Powering Maryland Forward—USM’s 2020 Plan for More Degrees, a Stronger Innovation Economy, and a Higher Quality of Life.The funding levels of both the operating and capital budgets are yet another indication of Governor Larry Hogan’s and the General Assembly’s support for public higher education and USM. This support underscores the university system’s role as the engine of innovation, discovery, and knowledge that is propelling our economy and quality of life forward.Increasing Maryland’s College Completion RateLast year (FY 2016), USM awarded more than 25,700 baccalaureate degrees. That represents an annual increase of more than 6,540 degrees since 2009 and puts USM more than 70 percent of the way toward our ultimate goal.When the USM strategic plan was developed, it was determined that for USM to achieve its “share” of the statewide increase in degree production, we would need to produce 28,000 baccalaureate degrees per year by 2020. That represents a signifiant increase—almost 50 percent—over our 2009 “baseline” of just over 19,000 baccalaureate degrees.The ability of our state and nation to compete in a global, knowledge-based economy is directly linked to the educational attainment of our citizens. USM has a vital role to play in this effort, both on a systemwide level and on our individual campuses.progresskey goalrationalefy 2017 annual report • 5As we pursue this critical goal, we are working on multiple fronts. While affordability and access stand as the primary focus, our efforts also include supporting community college partnerships, expanding the impact of our higher education centers, increasing outreach efforts, using more directed enrollment management, and other initiatives.affordability & accessUSM has been aggressive in its efforts to make tuition and fees more affordable. Once again—thanks in large part to the support of Governor Hogan and the legislature—USM will hold the tuition increase for in-state, undergraduate students to a modest 2 percent for the 2017-18 academic year. This commitment to affordability has had a signifiant impact: Over the past dozen years, USM has moved from having the 6th highest tuition and fees in the nation all the way down to 23rd—from one of the most expensive systems to the middle of the pack.During these same dozen years, undergraduate institutional financial aid has more than doubled, with an emphasis on expanding need-based aid, further enhancing affordability. In fact, while total USM aid to students—both merit-based and need-based—has increased more than 100 percent, the need-based portion is up about 200 percent.This commitment to affordability comes along with—not at the expense of—a commitment to quality. In recent years, major college rankings have shifted somewhat to incorporate a broader combination of factors, including educational quality, affordability, and alumni success. USM institutions have done exceptionally well in these total value rankings issued by Forbes magazine, MONEY magazine, Kiplinger’s Personal Finance, The Princeton Review, and others. Towson University (TU); Salisbury University (SU); University of Maryland, Baltimore County (UMBC); University of Maryland, College Park (UMCP); and Frostburg State University (FSU) have all made these lists, most represented multiple times.Turning to access, we must get more students, especially under-represented minority and low-income students, into the higher education pipeline. Last fall, USM’s first-time, full-time freshmen cohort was more diverse than ever before and included a growing proportion of low-income students. And key indicators point to success for current and future USM students: Retention levels are at near-record highs. Six-year graduation rates for first-time, full-time freshmen are at an all-time high of close to 70 percent. The graduation rate for African-American students completing their degree anywhere within USM is on par with an all-time high of 50 percent. Our overall time-to-degree is at a near-record low of 4.5 years, which is one year better than the national average.community collegesWe must also keep building upon our strong partnerships with community colleges. First-time transfers make up two-thirds of newly enrolled undergraduate students at USM institutions, with almost half coming from a Maryland community college. In last year’s annual report, I highlighted the four-year, $3 million First in the World (FITW) grant USM received from the U.S. Department of Education to test and develop innovative strategies to create new math pathways designed to reduce remedial education and increase college retention and completion. FITW united five USM institutions—Coppin State University (CSU), TU, University of Baltimore (UB), UMBC, and University of Maryland University College (UMUC)—with seven community colleges—Anne Arundel, Cecil, Southern Maryland, Garrett, Harford, Howard, and Montgomery.Currently in its second year, this initiative is having a meaningful impact. Every community college in the state has signed on as an affiliate member, giving them access to workshops, partnership events, presentations, and other activities. And this fall, more two-year colleges will offer alternative math pathways to fulfill general education math requirements, with courses in statistics and qualitative literacy joining introduction to algebra as credit-bearing courses meeting math requirements.This commitment to affordability comes along with—not at the expense of—a commitment to quality.fy 2017 annual report • 6The goal is to build multiple pathways into all two- and four-year public colleges and universities. These classes will not be easier, just different, and potentially of greater use for humanities and social science majors. Ultimately, these new pathways will make community college transfers easier, further improve retention at USM institutions, and signifiantly advance our overall completion goals.regional higher education centersAs we expand community college partnerships, our two regional higher education centers—Universities at Shady Grove (USG) and University System of Maryland at Hagerstown (USMH)—grow in importance, both in terms of their capacity and their capabilities. Between the two of them, all 11 USM universities are represented, and more than 100 high-demand degree programs are offered. The UMB School of Nursing is expanding its nursing practice doctorate’s family practitioner program to USG this fall. The program—ranked fifth in the nation by U.S. News & World Report—consists of both classroom and field work with health care professionals. The hospitality and tourism management program at the University of Maryland Eastern Shore (UMES) has received a $300,000 grant from the Marriott Foundation to install customized teaching technology at USG. The center also received a $50,000 grant from the Meyer Foundation to help build a diverse, highly skilled workforce and support the local business community. And the new biomedical sciences and engineering education facility slated to open in 2019 at USG will intensify the center’s profound impact on higher education and industry collaboration. Also in FY 2017, USMH announced plans to add three new academic programs during the next three years: the UMES undergraduate program in hospitality management and tourism, the FSU/UMB graduate physician assistant’s program, and the FSU graduate nurse practitioner program. In addition, USMH—in partnership with the city of Hagerstown—is expanding to accommodate this growth, with renovation projects underway.I’ll also note that USM is committed to building and operating an 83,000 square-foot academic and research center at the Southern Maryland Higher Education Center (which is not a USM center). Set to open in FY 2020, this new facility will expand educational opportunities in high-demand fields and will have a major regional economic development impact. It will double classroom and conference space and add nearly 20,000 square feet of advanced research space, with a focus on multi-domain (air, land, sea) unmanned autonomous systems.outreachAlong with systemwide approaches, campus-based efforts are also advancing degree access, affordability, and completion. In late 2016, UMCP became a founding member of the American Talent Initiative, which aims to substantially expand the number of talented low- and moderate-income students at our nation’s top-performing undergraduate institutions. UMB’s CURE Scholars—the university’s National Cancer Institute-funded health care pipeline program—admitted its second cohort of sixth-graders from three West Baltimore middle schools. Each scholar benefits from weekly tutoring, science lessons, and interpersonal skills development, making them more informed and excited about the many STEM-related career paths and opportunities. UMBC launched the Hill-Lopes Scholars Program to support high-potential women in specifiSTEM majors where women remain underrepresented. The six UMBC students selected as the first class of Hill-Lopes Scholars are focused on advanced degrees and careers in highly competitive STEM fields.USM’s new Baltimore Power initiative—or B-Power—continues to move forward efforts to expand the college and career pipeline for Baltimore City students, with both UB and Coppin leading by example. UB is expanding dual-enrollment efforts, has initiated the “Bee Line” transfer program to assist Baltimore City Community College students who wish to transfer to UB, and has received Abell Foundation funding to do even more.Coppin, which has hired a new P-20 (pre-K through graduate school) director, is also pursuing dual-enrollment opportunities, and is expanding the Coppin Bridge program, which helps students transition more successfully from high school to college.We have also reached an agreement with Junior Achievement of Maryland to help funnel more city students toward college. And with UMB, Towson, UMBC, UMCP, and other USM institutions boasting strong and long-standing relationships with the city’s schools and the city itself, we are building a productive alliance with nonprofits, businesses, schools, and education advocacy organizations. I look forward to unveiling our business plan to scale and leverage our efforts soon. Taken together, all these efforts—improving affordability, focusing on access, expanding partnerships, and others—are increasing opportunities. Enrollment is up, time-to-degree is down, and the achievement gap impacting underrepresented minority and low-income students in comparison to white students is narrowing.fy 2017 annual report • 7USM has signifiantly exceeded expectations on these goals. Undergraduate STEM enrollment is up 61 percent since the strategic plan was created in FY 2009. Undergraduate STEM degrees issued are up 67 percent since FY 2010. And in just five years, 502 companies have been launched from the intellectual and entrepreneurial assets of USM institutions. By 2020, increase by 40 percent the number of STEM graduates produced by USM institutions. Create 325 new companies by 2020. USM stands as an impactful and adaptable economic force. In our classrooms, we educate the next generation of highly skilled professionals, ready to go to work—and to lead—in Maryland. In our labs, we generate groundbreaking innovation and discovery, advancing our quality of life. And in our partnerships with business and industry, we trigger entrepreneurial activity, job creation, and economic growth. Maryland is asserting itself as a national and international leader in the innovation economy. USM is advancing that vision.Growing Maryland’s Workforce and Driving Maryland’s Economyprogresskey goalrationaleNext >