Senate FinanceHigher Education Subcommittee

Tuesday, March 21, 2006

Dr. Andrew A. Sorensen, PresidentUniversity of South Carolina System

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The University of South Carolina is a publicly-assisted coeducational institution dedicated to serving the entire state of South Carolina.

The three-fold mission of the University of South Carolina is teaching, research and creative activity, and outreach.

The University offers more than 350 degree programs, including baccalaureate degrees in 124 areas, 5 programs of study for associate degrees, master's degrees in 175 areas, doctoral degrees in 63 areas, and professional degrees in law, medicine, and pharmacy.

In addition to the main campus in Columbia, there are three senior campuses (Aiken, Upstate and Beaufort) and four regional campuses (Lancaster, Salkehatchie, Sumter, and Union).

Enrollment on all campuses totals over 39,000. Of these, over 27,000 students are on the Columbia Campus, some 32 percent of whom are enrolled in graduate and professional programs.

USC Overview

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Scholarships and FellowshipsSince the Office of Fellowships and Scholar Programs was established in 1994, USC students have won 275 national awards, earning more than $7.5 million for advanced academic study.

Grant FundingFaculty received $166.2 million in funding for research, outreach, and training programs in fiscal year 2004-2005, an 11.3 percent jump from the previous year's $149.3 million. Areas that attained significant research funding include USC health sciences, $60.1 million (the colleges of nursing, pharmacy and social work, the School of Medicine and the Arnold School of Public Health); the College of Arts and Sciences, $44.2 million; the College of Engineering and Information Technology, $25.3 million; and University Libraries, $14.2 million.

Fund RaisingPrivate gifts increased to $95.3 million in fiscal year 2004-2005, up from $64.7 million the previous year, a 47% increase.

USC Highlights

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By creating a vibrant, knowledge-based community, we become a powerful engine for creating high paying jobs and raising per capita income throughout our state.

The Economic Impact of the University of South Carolina System

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USC System State Economic Impact

USC SystemEconomic

Output Income JobsColumbia $1,400M $616.7M 20,339 Aiken $89.9M $36.3M 1,349 Beaufort $29.4M $12.9M 457 Upstate $132.9M $53.1M 1,850 Lancaster $21.9M $8.9M 362 Salkehatchie $14.9M $5.8M 263 Sumter $25.1M $10.7M 367 Union $7.2M $2.9M 108

TOTAL USC System Impact:Economic Output - $1.8 billion

Income - $765.7 million Employment impact – 25,460 jobs

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USC System State Economic Impact

The USC campuses have over 215,000 alumni, more than half of whom remain in South Carolina

Alumni have a $2.3 billion impact on the state

With the alumni, the total impact on South Carolina is $4 billion and support of nearly 50,000 jobs

Approximately 2-3% of the Overall State Economy

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USC's key research initiatives - nanoscience and technology, health sciences, future fuels, and the environment—will be focused in a unique new intellectual Ecosystem known as Innovista. This innovation district will foster science and creative research … Innovista will be a place to work, live, and learn.

The initial economic impact of Innovista is estimated to be $430 million.

Carolina's future will be shaped by three separate blocks that will house the first phase of the University's research initiatives which will cover 5 million square feet and will cost $141.2 million. A second phase could include two new buildings in Columbia and one each on the campuses of the Greenville Hospital System and the Medical University of South Carolina, USC's research partners.

Innovista

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Center for Fuel Cell ResearchUSC's Center for Fuel Cell Research is a national leader in fuel cell research selected by the National Science Foundation.  The benefits to the State of South Carolina include exposure to national and international companies whose investment capital may be used in South Carolina for start-up and relocation of businesses to leverage economic growth.

ResearchResearch Centers of Economic Excellence

This endowment program uses lottery funds that state research universities must match. Since the program's inception in 2002-2003, USC has received approximately $30 million in state money and matched an additional $30 million in private money for 11 chairs, representing nine centers of excellence that it will manage or co-manage with other institutions. Nanocenter McCausland Center for Brain Imaging Center for Regenerative Medicine Center for Polymer NanocompositesCenter for Hydrogen Fuel Cell Economy Center for Travel & Tourism TechnologyCenter for Drug Discovery in Cancer Center for Vision Science Center for Translational Cancer Therapeutics

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The University of South Carolina is the lead institution to share a $17.3 million grant from the National Institutes of Health for biomedical research—among the largest grants ever awarded in South Carolina. The other participating institutions are: Clemson University, the Medical University of South Carolina, the College of Charleston, and Claflin, Furman and Winthrop universities.

USC's Arnold School of Public Health has teamed up with the state's Historically Black Colleges and Universities (Allen University, Benedict College, Claflin University, Morris College, South Carolina State University, Voorhees College) to establish a research and education collaboration—The Institute for Partnerships to Eliminate Health Disparities.

CollaborationThe South Carolina College of Pharmacy was formed in 2004 by the merger of the Colleges of Pharmacy at the University of South Carolina and the Medical University of South Carolina to create a state-wide approach to pharmacy education. The merged program combines the nationally-recognized faculties, staff, and resources of both institutions to advance pharmacy education, research, and outreach throughout the state.

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From U.S. News & World Report: USC is ranked No. 52 in the nation among public universities.

The Moore School of Business graduate program in international business is ranked No. 1 in the nation among public universities, continuing a streak of 16 consecutive years.

USC's School of Journalism and Mass Communications' public relations and advertising programs are ranked 12th and 13th, respectively, at the undergraduate level.

USC's doctoral program in school psychology is ranked the third best in the nation in U.S. News & World Report.

In its 2006 college guide, U.S. News & World Report ranked USC's University 101 programs for freshmen in the category “Programs to Look For.”

Other Rankings: The Moore School of Business is ranked among the top 50 collegiate entrepreneurship programs in the United States in the April 2005 issue of Entrepreneur magazine. USC is ahead of Harvard, Duke, Notre Dame, Stanford, and Michigan. Latin Trade magazine ranks the Moore School among the top five business schools in the world for MBA programs for Latin Americans.

The National Science Foundation reports that USC's Department of Chemistry and Biochemistry is rated 38th in the nation in federally funded research.

The College of Nursing is one of seven national research centers designated by the National Institutes of Health. As part of that designation, the college has received a $1.4 million grant from NIH to conduct research that will improve the lives of South Carolinians.

USC's Department of Political Science is No. 10 in the nation for publication rates of faculty research.

USC's Pediatrics Residency Program is one of the top two in the nation, according to the American Board of Pediatrics.

USC Rankings – Academic Programs

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USC's Fall 2005 freshman class is the largest and most academically accomplished in school history. Of the more than 3,700 students, there were 25 Carolina scholars, 22 McNair scholars and 500 Capstone scholars, a first-time program.

Freshman Class – Fall 2005

Average SAT scores were: 1164: Total freshman class 1310: Capstone scholars 1404: South Carolina Honors College freshmen 1454: McNair scholars 1471: Carolina scholars

LIFE Scholars

1818 freshman students

Total dollars awarded - $9,076,944

Average Award - $4,993

Palmetto Fellows

325 freshman students

Total dollars awarded - $2,081,504

Average Award - $6,405

HOPE Scholars

257 freshman students

Total dollars awarded - $676,764

Average Award - $2,633

Need-Based Grants

388 freshman students

Total dollars awarded - $472,338

Average Award - $1,217

State Scholarship Recipients as a % of all SC Freshman: 96%

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USC Columbia Campus Enrollment Headcount History

Enrollment Headcount

20000

21000

22000

23000

24000

25000

26000

27000

28000

1998 1999 2000 2001 2002 2003 2004 2005

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The University of South Carolina has been cited by Kiplinger's Personal Finance as one of the Top 100 values in public colleges. USC was ranked No. 31 among schools "where students can receive a stellar education without graduating with a mountain of debt."

Schools included in the Kiplinger’s study are noteworthy for their combination of quality academics and affordable costs. The rankings are based on data from more than 500 public four-year colleges and universities.

USC Rankings - Tuition Affordability

Despite the impact of state budget reductions and increases in tuition, USC moved up in this ranking from #62 in 2003 to #31 in 2006

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Columbia Campus State Appropriations and Tuition & Fees

Tuition & Appropriation

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

$220,000,000

2001 2002 2003 2004 2005Tuition

Appropriation

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Change in State Appropriations - Columbia Campus

USC Columbia FY 1996 FY 2006

State Appropriations $132,913,554 $138,481,591

% of Total Current Fund Revenue 37.2% 22.1%

New state funding is for designated purposes, not for general operationsThese new funds do not offset the over $45M reduction in state funding since 2001

*Does not include School of Medicine

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USC System Summary of Executive Budget Proposal

USC SystemTotal Estimated

Impact

USC Columbia (includes School of Medicine) ($18,345,890)USC Aiken (958,357)USC Beaufort (541,304)USC Upstate (1,408,854)USC Lancaster (313,787)USC Salkehatchie (301,625)USC Sumter (307,113)USC Union (132,718)

Total: ($22,309,648)

Fiscal Year 2006-2007

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Proposed Commission on Higher Education Funding Changeswith Impact on USC

Greenville Higher Education Center ($980,287)Access & Equity (142,322)African American Loan Program (100,000)Research Centers of Excellence (10,000,000)SC Electronic Library (2,000,000)

LIFE 9,800,814$ Palmetto Fellows 6,723,580 Need Based Grants 3,000,000

Proposed Executive Budget Reduction

Proposed Scholarship Increase

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Current Funded Projects:Recurring Small Business Development

Center School of Law Library Institute for Public Service and

Policy Research African American Professors

Program USC NanoCenter Hydrogen Fuel Cell Research

Non-Recurring Palmetto Poison Control Center

New Requests Faculty Excellence

Initiative Congaree Environmental

Initiative

USC Columbia FY 2006-2007 Special Funding Requests

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Faculty Excellence Initiative - $4,000,000

The Faculty Excellence Initiative (FEI) targets recruitment of new tenure and tenure-track faculty in disciplines and programs that represent strategic initiatives designed to advance the national profile of the University of South Carolina.

Examples:

Environmental Sciences: Biological Oceanography, Chemical Oceanography, Marine Science

Medical Diagnosis: MRI Physics, Cognitive Neuro-imaging

Languages: Arabic Language, Islamic Culture

Biological Sciences: Gene Expression, Bioinformatics, Biomedical Engineering

History: African American History, Biomedical History, Medieval History

New Faculty Salaries - $3,200,000, New Faculty Fringe - $ 800,000

USC Columbia Request for FY 2006-2007

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Congaree River Environmental Initiative - $2,000,000

In cooperation with private donations and with the City of Columbia, USC seeks to develop research projects involving the Congaree River, a natural setting for research and education in environmental biology/microbiology, health and toxicology, hydrology, chemical ecology and environmental engineering.

The projects envision research and education initiatives related to:

(1) effects of human activity such as construction of dikes, levees, and revetments on aquatic life systems

(2) effects of flood control systems on aquatic life and the biological environment in the surrounding terrain

(3) the functional composition of invertebrate and vertebrate communities at various points in the river

(4) investigation of seasonal fluctuations of phosphorous and nitrogen levels

This research will provide for K-12 research collaborations as well as undergraduate and graduate research opportunities.

USC Columbia Request for FY 2006-2007

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USC School of Law – Capital Project Request

The USC School of Law is the only fully accredited legal education program in the State of South Carolina. It is therefore essential for the University to have an adequate facility suited to the technological and instructional needs of current and future students of law. The existing law school facility was constructed in 1970 and contains asbestos as well as insufficient facilities to accommodate the changing educational needs. The proposed new facility will contain approximately 250,000 gross square feet of state-of-the art space with generous student study areas, an ample and computerized library, and enhanced classrooms with complete audio and video capabilities. The facilities will provide several courtrooms for realistic training of future attorneys, an auditorium and other areas for smaller meetings.

Request for $20,000,000

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USC Senior Campuses Points of PrideThe Senior Campuses at Aiken, Beaufort and Upstate have a combined enrollment of over 9,000 students and have an economic impact of over $252 million and provide 3,656 jobs. These three campuses receive local funding from their counties of over $3.8 million annually. In 2004-2005, the Senior Campuses received approximately $3.5 million in grant funding.

USC Aiken offers more than 30 degree programs and majors to over 3,300 students and is ranked number one among public, comprehensive colleges in the South for 2006 by U.S. News & World Report.

Beyond academic offerings, USC Aiken has established several significant partnerships with its community. The Ruth Patrick Science Education Center located on the University's campus allows visitors to experience math and science programs through hands-on learning experiences. Eighteen local school districts visit the Center and since its opening, over 350,000 students and teachers have participated in its programs.

In August 2005 the USC Beaufort South Campus opened the first building of its on-campus student apartment complex and welcomed residential students for the first time, including students from as far away as Ohio and Pennsylvania and as nearby as Hilton Head Island and Estill. This housing is the result of a public-private partnership. With the addition of the South Campus buildings, new faculty, and approval of eight degree programs, USC Beaufort has experienced the third consecutive year of double-digit enrollment growth.

USC Upstate was one of thirteen winners among 168 applicants for a Federal HUD grant from the Community Outreach Partnership Program to lead a team of community agencies in Southside Spartanburg community initiatives, ranging from economic development to health education.Involving more than 20 faculty members, hundreds of students, and multiple civic funding partners, this grant demonstrates the power of Upstate's metropolitan mission.

USC Upstate leads all ten of the State's teaching sector universities in transfer activity among the technical system and regional campus institutions, a consequence of the institution's model work indeveloping articulation agreements with lower division campuses.

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USC Lancaster USC Salkehatchie USC Sumter USC Union

The Regional Campuses are primary University entry points for students who represent the first generation in their family to attend college as well as for adult learners who have decided that it is timefor their own formal education.

EnrollmentThe four Regional Campuses serve over 3,100 students - 32% of these students are minority, 60% are women and 99% of students are from South Carolina. More than 50% of Regional Campus students attend school part-time as many hold jobs, serve in the military and/or have children.

Economic ImpactAccording to the 2006 USC Study, the Regional Campuses have an economic impact of $69.1 million dollars and provide 1,100 jobs in primarily rural counties. These four campuses receive local funding from their counties of over $920,000 annually. In 2004-2005, the Regional Campuses leveraged state and local funding to attract $1.3 million in grant funding.

Palmetto ProgramsPalmetto Programs are a new collaboration of campuses of the University of South Carolina system inspired by the Commonwealth College of Pennsylvania State University. It is comprised of faculties from the University’s four Regional Campuses and the Aiken, Beaufort, Columbia and Upstate campuses. In a cost-effective manner, it provides upper-division courses and select bachelor degrees at the regional campuses incorporating the collective faculties among the campuses which have been serving South Carolina for nearly half a century.

USC Regional Campuses Points of Pride

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FY 2006-07 Below the Line Funding Requests

USC Beaufort Penn Center Early Childhood At-Risk

Family Initiative Pritchard’s Island

USC Upstate Advancing Health, Education and

Community Development

USC Lancaster Environmental Studies Laboratory

USC Salkehatchie Leadership Institute

Special Funding Requests

USC Beaufort Academic Program Expansion and

South Campus Operations 45 FTE positions and $1,000,000

in state appropriations

USC Upstate Nursing and Health Sciences – 18 FTE

and $900,000 in state appropriations Teacher Education - $490,000 in state

appropriations

USC Sumter Arboretum

$300,000 in state appropriations

USC Senior and Regional CampusesFunding Requests

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USC Senior and Regional CampusesSummary of Capital Projects

USC AikenAcademic BuildingStudent Center RenovationBusiness and Education Renovation

USC Beaufort

South Campus Academic Building

USC Upstate

Information Resource Center

Classroom/ Building Repairs

Deferred Maintenance

TOTAL USC Senior Campuses

$ 6,300,000

$ 1,000,000

$ 3,000,000

$ 6,327,728

$ 16,800,000

$ 5,000,000

$ 3,000,000

$ 41,427,728

USC Lancaster Campus Renovations

USC Salkehatchie Walterboro Classroom Building Classroom HVAC Technology Center

USC Sumter Instructional Lab Building Deferred Maintenance

USC Union Facility Upgrades Deferred Maintenance

TOTAL USC Regional Campuses

$ 4,312,500

$ 2,349,000$ 540,000$ 10,760,663

$ 9,825,000$ 788,000

$ 700,000$ 1,000,000

$ 30,275,163

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USC Proviso Requests

USC Columbia - New Request

A public institution of higher learning with a law school may offer educational fee waivers to no more than 4% of the law school student body. This waiver shall not impact the capacity of the fee waivers for four percent of the undergraduate student body.

USC Beaufort – Change Proviso 5K.5, add Bryan County

(USC: Beaufort Campus - Reciprocal Tuition) The University of South Carolina Beaufort Campus may offer in-state tuition to any student whose legal residence is in the Chatham, Effingham or Bryan County areas of the neighboring state of Georgia as long as the Georgia Board of Regents continues its Georgia Tuition Program by which in-state tuition is offered to students residing in the Beaufort/Jasper County area of the State of South Carolina.