University of Colorado

A Message from the President

March 2012

Perception and reality

Dear Friends and Alumni,

President Bruce Benson
President Bruce Benson

Public universities such as ours are subject to public scrutiny. Even though the state of Colorado provides less than 6 percent of our budget, we have an obligation to be open and accountable to our students, alumni and citizens. The close examination that comes along with that obligation is fair.

The university has had its share of scrutiny from Colorado media recently. In the past month, stories and editorials have covered everything from salaries to proposed tuition increases. Suffice it to say that most have been negative. Many CU alumni and friends have shared with me that they feel the coverage paints an unfair picture of our university. I agree in some cases but not all. Regardless, I want to take this opportunity to address some common perceptions (and misperceptions) in recent reports about CU and provide context that may not always make headlines or sound bites.

Perception: CU makes important decisions about tuition and salaries out of the public eye.

Reality: The Board of Regents every year sets tuition and compensation pools in public meetings that occur over many months. For instance, the regents began discussing compensation for fiscal year 2011-12 in February 2011, furthered the conversation in early April and established a 3 percent merit salary pool at their public meeting in late April, at the same time they approved tuition rates. The media was at the meeting and reported the story. The merit pool was contingent upon campuses meeting established budget targets, which they did in October.

For fiscal year 2012-13 tuition setting, the discussion began at the board retreat last July (with media present), continued with two meetings in September, another in November and a budget retreat in January. All are public meetings. We will have another one on Wednesday.

Perception: Tuition and fees at CU are too high.

Reality: We know the pressures facing students and families in a down economy. But a CU education is a considerable value. Tuition on all our campuses is at or below peer averages. Many similar universities charge thousands more than we do, even though their state support is also thousands more per student. Colorado ranks 48th nationally in state funding per resident student. And the quality of a CU education is a great investment, perhaps the best a person will make. It leads to more income, greater opportunities, increased civic and community engagement and better health.

Perception: Middle-income families are being priced out of an education at CU.

Reality: We have made considerable investments in financial aid, increasing our pool of internally generated aid (apart from state and federal financial aid) from $38 million in 2002 to $120 million today. Student debt and default rates at CU ($23,125 and 3.4 percent) are below the national average ($25,250 and 8.8 percent). We believe a factor in the low default rate is that our students are getting jobs after graduation.

Perception: CU is an inefficient bureaucracy.

Reality: We have made operating efficiently one of our guiding principles. CU's administrative overhead is 44 percent below our national peer average. We have streamlined bureaucracy, made strategic cuts and instituted better business practices. We have cut millions in the past four years but are always looking for more efficiencies. The result of all this can be seen in our outcomes. CU produces the most degrees for one of the lowest costs in the nation.

Perception: Salaries at CU are out of control, as evidenced by raises for "top administrators."

Reality: We are in a market economy and are a people-intensive enterprise. Some three quarters of our expenditures are for people. Delivering a quality education at CU means investing in people. Additionally, our business has increased substantially during the recession, with an 11.5 percent increase the past decade and record enrollment on our campuses. Degrees awarded over the same period increased 34 percent.

Top administrative raises accounted for a small percentage of the total salary pool. The vast majority went to faculty, who are critical to the quality of a CU education. More than 85 percent of those who received merit raises received less than $4,000.

Perception: Our faculty members are underworked and overpaid.

Reality: While some believe faculty only teach a couple of courses, the reality is our world-class faculty teach many courses, advise and mentor students, conduct scholarly activity, generate research funding, and are active in community and university service. They have stepped up during difficult times. For example, at CU-Boulder, some 400 faculty members taught more than the standard course load. CU has a great faculty whose prime imperative is to provide a quality education. And they deliver.

CU is a complex place with many moving parts. We understand that standing on the outside looking in at just one of those parts may not show the whole picture of who we are. But the sum of those parts is a university that operates openly and efficiently, delivers to our students a world-class education and advances the economy, health and culture of Colorado and beyond.

For feedback, contact officeofthepresident@cu.edu

Sincerely,
Bruce D. Benson
Bruce Benson
President


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Office of the President, University of Colorado
1800 Grant Street, Suite 800, Denver, CO 80203
General Phone: (303) 860-5600 | Fax: (303) 860-5610
officeofthepresident@cu.edu
www.cu.edu