Conducting Research Amid Fiscal Constraints

Kelvin K. DroegemeierVice President for Research

University of Oklahoma

APLU Council on Research Programs and Graduate Education12 November 2012

Today’s Complex Environment

Job AvailabilityState Funding

Publ

ic A

ttitu

de

and

Expe

ctati

ons

STEM

Perform

ance

Regu

latio

nsMOOCS

High Enrollments

Costs

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

Trends in Federal R&Dpercent of GDP

Total R&D

Development

Research

Facilities

Source: Up to 1994 - National Science Foundation / National Center for Scienceand Engineering Statistics, Survey of Federal Funds for Research and Development;1995 to Present - AAAS Report: Research and Development series;GDP figures are from Budget of the U.S. Government FY 2013.

FY 2012 and FY 2013 figures are latest estimates.© 2012 AAAS

The Federal R&D Budget

1.2%-7.4%

-1.5%-1.5%

0.0%0.2%

1.4%2.2%2.4%

4.6%7.6%

9.3%9.6%

12.1%16.2%17.0%

31.7%18.1%

-10% 0% 10% 20% 30% 40%

TOTALDOD S&T

DOD OtherUSDA

NIHVA

EPANASA

DOE ScienceNSF

USGSOther HHS

DOE DefenseNOAA

DOE EnergyDOTDHSNIST

R&D in the FY 2013 Budgetpercent change from FY 2012

Source: OMB R&D data, agency budget justifications, and other agency documents.© 2012 AAAS

DOD "S&T" = DOD R&D in "6.1" through "6.3" categories

The Federal R&D Budget

Sequestration (or Some Form of Cuts)

Source: AAAS

-7.8%-17.4%

-11.5%-9.5%

-8.0%0.2%

-6.6%-5.8%-5.6%

-3.4%-0.4%

1.3%-0.4%

4.1%8.2%9.0%

23.7%10.1%

-20% -10% 0% 10% 20% 30%

TOTALDOD S&T

DOD OtherUSDA

NIHVA

EPANASA

DOE ScienceNSF

USGSOther HHS

DOE DefenseNOAA

DOE EnergyDOTDHSNIST

R&D in the FY 2013 Budget + Sequester?percent change from FY 2012

Source: AAAS estimates based on OMB R&D data, agency budget justifications, and the Budget Control Act.© 2012 AAAS

DOD "S&T" = DOD R&D in "6.1" through "6.3" categories

Sequestration (or Some Form of Cuts)

Regulations Since 1991 + No New Funds

The Funding Burden on Universities

Source: AAAS

What’s Driving the Increase?Unfunded Compliance MandatesUnrecovered Indirect Costs ($4.7B in FY 2010)Mandated Cost Sharing (even if IDC is reduced or not paid at all)Institutional Investments (buildings, equipment, facilities)

http://www.nsf.gov/nsb

Average Revenues for Major Public Universities AY08-09

Source: NSB Companion to 2012 S&E Indicators

State Appropriations as a Function of Total Operating Revenue

Source: NSB Companion to 2012 S&E Indicators

State Appropriations Per Enrolled Student at Public Universities

Source: NSB Companion to 2012 S&E Indicators

Enrollment at Major Public Universities

Source: NSB Companion to 2012 S&E Indicators

Average Expenditures for Major Public Universities AY08-09

Source: NSB Companion to 2012 S&E Indicators

Connecting the Two…

Revenues Costs

16

• The cost “story” is complex and not easily explained or understood

• Key question is the value proposition of research in higher education – and possible impacts of research on UG tuition

• Late-career researchers delaying retirement• Strong competition (for research faculty and graduate

students) from international players• Continued strong emphasis on universities as engines

of economic development – rising to the challenge

Key Challenges

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• Debt and deficit control• STEM education reform• Regulatory environment• Cost containment in higher education• International collaboration• Global competitiveness with US superiority• Short-term view/practical outcomes• Performing only research that “really

matters”

The DC Conversation

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• By planning for and not being caught unaware when the highly-likely change occurs!

How Do We Remain at the Cutting Edge in Research?

19

• Via collaboration and leveraging• Should be but often isn’t in the academic culture• NSF is a wonderful example (e.g., Global Research Council,

I-CORPS, OneNSF, INSPIRE, CREATIV), including considerable new emphasis on international activities

• Regional initiatives, university consortia • Intra-state collaboration (OneOklahoma concept) – reduce

redundancy and contain costs• Engagement of the social/behavioral/economic sciences

• Faculty must see themselves as more than individual entrepreneurs

How Do We Remain at the Cutting Edge in Research?

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• By adding to the undergraduate experience an opportunity for authentic, original scholarship• Modern STEM pedagogy (engaged learning)• Undergraduate scholarship in many forms – all disciplines• Will take significant changes by faculty + rewards/incentives• Will see significant Federal funding for STEM and work

related to it (i.e., authentic research)

• By De-investing in or shutting down facilities and partnering with other institutions to reduce duplication• This isn’t something we do well at the national level

How Do We Remain at the Cutting Edge in Research?

21

• By building more (and more effective) linkages with private industry and applied R&D agencies• Key to innovation and wealth creation• Key to economic diversification in states• Important for workforce development• Pesky IP issues and historical views of universities as

difficult to work with must be addressed

• Universities weren’t structured to do this (philosophically or administratively) but are improving!

How Do We Remain at the Cutting Edge in Research?

22

• By providing resources to help faculty think long term about and develop their research programs and competitive grant proposals – so called “Research Program Development”• Not an inherent skill among all faculty• Universities have lots of resources for students – need to not forget

faculty!• Alignments with national initiatives and priorities (more applied R&D,

industry partnerships vis-à-vis I-CORPS and other programs)

• Becoming involved in fixing key national policies (e.g., F&A recovery, cost sharing)

• Showing that we understand and are willing to help with big-picture issues (debt and deficit), as APLU and AAU are doing

How Do We Remain at the Cutting Edge in Research?

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• Remember “The Mind is a Terrible Thing to Waste?• Wonderful TV spots now being produced by NCAA, athletic

conferences – but seen by a limited audience• We take our message to the Hill but not to those who employ

our public servants – the public• The concerns are not coming from the Hill but to it • Could AAU, APLU, AAAS, ACS, etc. partner with DoEd, Bureau

of Labor Statistics, Ad Council, and others on a TV messaging campaign that tells the real story?• Consistent messaging of value, importance of reform (e.g., cost

containment), impacts on daily lives, key to nation’s future• Feature well respected people (e.g., Bob Gates)• Supplement with individual institution inserts + personal activities

(talks by faculty, open houses, etc)

A Possible Messaging Strategy

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• History upholds the basis of our argument for the value of research in higher education

• But the world of today is not the world of yesterday – our approach and arguments must be made differently in order to restore public trust in higher education as a public good

In Summary