From the Worcester Telegram and Gazette:
UMass Medical subsidy to survive
Privatized school would lease campus UMass change would prompt education overhaul
Emilie Astell
TELEGRAM & GAZETTE STAFF
WORCESTER- If the University of Massachusetts Medical School is cut loose from state control, yearly appropriations would continue and financial aid would be available to in-state students, a Romney administration official said.
But questions remain concerning exactly how the medical school would be better off if it were no longer under state control and how long it would take for the school to adjust to the change.
The proposal to make the school independent is part of Gov. Mitt Romney's reorganization budget proposal to address a $3.2 billion shortfall.
If the plan is approved by the Legislature, it would set the stage for a major overhaul of the public higher-education system, including adding a layer of control through seven regional councils and increasing the power of the state Board of Higher Education. Six colleges would be merged, including Mount Wachusett Community College with Fitchburg State College.
Under the plan, the medical school would continue to receive its yearly state appropriation, pegged at $32.4 million last year, according to Peter Nessen, the secretary designee for education and work force development. Financial aid to offset the cost of tuition, $8,352 in the fall, and fees of $2,100, would also continue.
The campus would be leased to the medical school for $1 a year for 99 years, he said.
Initially, Mr. Romney's proposal indicated that the state planned to cut off the medical school's appropriation after four years, but Mr. Nessen said there is no time limit. Reducing or eliminating a state appropriation would be based on how well the school recruited from out of state and how successful it was in obtaining research grants.
Changes would include opening enrollment to out-of-state students, raising tuition and putting revenue from tuition and fees into the school's coffers instead of the state's, Mr. Nessen said. Financial aid would continue for existing students and for in-state future students who need it.
The medical school does not accept out-of-state students, although the Graduate School of Biomedical Research accepts out-of-state and international students. The Graduate School of Nursing on the same Plantation Street campus has mostly in-state students and some from other New England states.
"This is an opportunity for them to try to create independence,' Mr. Nessen said during a telephone interview Tuesday. "The intention would be that after four years or one year or 10 years we would take them back into the fold if they are not self-sufficient.'
While medical school officials are taking a wait-and-see approach, an education-management analyst said independence could prove beneficial because the medical school would avoid some state regulations and would enjoy increased flexibility in daily operations.
"The state is in financial straits,' said Aims C. McGuinness Jr. of the National Center for Higher Education Management Systems. "In that situation, it's an advantage to an institution to have as much flexibility as it can.'
The 29 public colleges and universities in the commonwealth adhere to state regulations, but those rules curtail the medical school's ability to obtain additional research grants, Mr. Nessen said.
The school could better calculate overhead costs, for instance, if it were independent, he said. That one area, among many, would make it more competitive with other medical schools.
Part of the drive to spin off the medical school and the Massachusetts College of Art and Massachusetts Maritime Academy is because they are specialty schools that do not fit neatly into the scheme of regulations for other public institutions, he said.
"We don't know how to put in rules that make sense for a medical school,' Mr. Nessen said. "We're risking this with the hope they will succeed in independence. The whole purpose is to allow them to flourish. We're not looking for cost savings or appropriations savings.'
Part of the proposal would allow the University of Massachusetts-Amherst campus to be removed from the five-campus university system. Amherst would remain a public school with an increased enrollment and higher tuition costs.
All the proposals are in the governor's budget bill, Article 87, that will be submitted May 1. The budget bill creates, among other things, a Cabinet-level education secretariat, an empowered Board of Higher Education and the regional councils. The Legislature has 60 days after May 1 to decide the bill's fate.
"The Legislature can vote it up or down, but cannot edit,' Mr. Nessen said. "It's a high-stakes gamble, but we're in high-stakes times.'
State Sens. Harriette L. Chandler and Guy W. Glodis are eager to hear more details on the reorganization plan. Mrs. Chandler said she expects to meet with state officials next week.
Mr. Glodis subscribes to the "if it's not broken, don't fix it' philosophy about the medical school, although he acknowledged that the school could operate on a semipublic basis with limited state support and more emphasis on private investment and federal grants.
The benefits of the school, he said, are the yearly graduating class of 100 doctors, employees numbering more than 5,000 and a rating as one of the top research institutions in the country.
"It's a lifeline for medical research in Central Massachusetts,' the senator said. "It doesn't need fixing.'
UMass is one of 125 medical schools in the country and one of 75 that are public. It is one of three in the nation that enroll only state residents and one of four medical schools in the commonwealth. The others, all private, are at Harvard, Tufts and Boston universities.
A major incentive at the Worcester campus is the existence of learning contracts, allowing medical students to reduce their tuition costs by agreeing to practice in primary care, in underserved areas of the state or in areas that the state designates as beneficial to public health, such as community-funded health centers, according to UMass spokesman Mark L. Shelton.
The school expects more details during the next two months, he said, which should reveal the impact of reorganization.
"What the governor presented is a broad blueprint for how he envisions the state to work,' Mr. Shelton said. "There are all manner of possibilities before us, some might be wonderful, some not.'