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TheMiamiHerald

February17,2013Sunday

FIUturnstopartnershipfirmforinternationalonlinedegreesEDUCATION

BYLINE:[email protected]

LENGTH:1347words

DATELINE:February172013

WithitsstatefundingshrinkingandonlinecollegeclassesrisinginpopularityFloridaInternationalUniversityisbankingonstudentsfromabroadtoboostitsfinancesandexpanditsacademicreach.

Inthatendeavor,thecollegeisturningtoAcademicPartnerships,anexperienced,successful(andpoliticallyconnected)playerinthefastgrowingInterneteducationindustry.

FIUfirstteamedupwiththeDallasbasedcompanyin2009creatinganonlineonlyCorporateMBAprograminwhichtuitionrevenueissplitbetweenthetwoparties.Now,FIUispoisedtoinkanotherdeal:Knownas"FIUGlobal,"theproposednewcontractwouldcreateanonlinejointlyoperateddegreeprogramtargetingstudentsinLatinAmericaand,eventually,maybeChina.

Theuniversity'sinternationalreputationcouldriseorfallbasedupontheprogram'ssuccess,andifit'sasignificantmoneymakerforFIU,itwillhelpshoreupaschoolbudgetthathasbeenbatteredbyyearsofstatefundingcuts.

ButtheinvolvementofAcademicPartnershipsisdrawingscrutiny.Thecompany'sclosetiestoformerGov.JebBushhaveraisedquestionsofpoliticalinfluence,andFIUsigneditsfirstcontractin2009withoutnotifyingfaculty.

"I'mveryconcernedwithFIUGlobalandourrelationshipwithAcademicPartnerships,"historyAssociateProfessorBrianPetersontoldFIUPresidentMarkRosenbergatarecentfacultymeeting."ItseemslikepoliticalpressureisbeingputonFIUtodothisthing."

Tuitionrevenues

Since2009,FIUhasmademorethan$18millionintuitionrevenuesfromtheCorporateMBAprograminwhichtuitioncosts$37,500.AcademicPartnershipscollectedcloseto$20million,initiallytakingabout70percentoftuitionrevenues,thoughFIUlaterrenegotiatedthattoabout45percent.Allstateuniversitiesareallowedtochargehigher"marketrate"tuitionforsomegraduatedegreeprograms,withthegoalofreinvestingtheextramoneyintotheuniversity'sbudget.

TheFIUGlobalcontractisinpreliminarydiscussions,schoolleaderssay.Thequestionsofwhatdegreesitwillinclude(andhowthetuitiondollarswillbesplit)havenotbeennegotiated.

SomefacultyareaskingwhyFIUhandpickedAcademicPartnershipsforbothcontracts,asopposedtousingacompetitiveprocess.

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AcademicPartnerships'founderandchairmanisRandyBest,aclosefriendofBush's.BushservesontheadvisoryboardforanotherofBest'scompanies,WhitneyUniversitySystem,andin2011,theformergovernorcohosteda"FutureofStateUniversities"conferencethatwassponsoredbyAcademicPartnerships.

'Greatopportunity'

Onthecompanywebsite,BushandBestappearjointlyinapromotionalvideoinwhichBushspeaksofthe"exponentialgrowth"ofdemandforonlinedegrees,particularlyabroad.

"Thisisatimeofincrediblechange,"Bushsays."Greatopportunity,butalsogreatperilforuniversitiesthatdon'twanttochange."

BushandBestdeclinedtocommentforthisreport.

Rosenberginsiststhecontractsarenotpolitical.Forthefirstcontract,FIUleaderssaidtheydidinformallyconsideratleastonecompetitor,andtheyarguethatAcademicPartnershipshasdoneagoodjobwiththeMBAprogramanddeservesadditionalwork.FIUadministratorssaytheyaren'tobligatedtouseacompetitiveprocess,andthestatedoesindeedexemptvariouseducationrelatedpurchasesfromthatrequirement.

"Thisisn'taboutJebBushorRandyBest,"saidRosenberg,whowasselectedbyFIUtrustees(severalofthemBushappointees)asFIU'sfifthpresidentinmid2009."Thisisaboutfindingawayforustobuildrelationshipsthatcanwork."

SinceleavingtheGovernor'sMansionin2007,Bushhascontinuedtheeducationalfocusthatwasahallmarkofhistimeinoffice.Bush'sFoundationforExcellenceinEducationhasraisedmillionsofdollarstopromotehiseducationalphilosophyacrossthenation,withanemphasisonitemssuchasschoolchoicevouchersandonlinelearning.

MuchofthatmoneyhascomefromcorporationsthatstandtoprofitfromthelegislativeagendaBushispushing.Morethan30stateshaveadoptedatleastpartofhiseducationalplatform.

ItwasBushwhoconnectedformerFIUPresidentModesto"Mitch"MaidiquetoAcademicPartnerships,saidFIUprovostDouglasWartzok.

"JebBushtalkedtoPresidentMaidiquebeforethefirstcontract...anintroductorysortofthing."Wartzoksaid,addingBushhadsuggestedMaidiquearrangeameetingwithBest.

Still,theprovoststressed,"There'sbeennoinfluenceandnopressureandnointerferenceoranythinglikethat."

Sincethen,AcademicPartnershipshassteadilyexpanded,andnowholdscontractswith40stateuniversitiesaroundthecountry,includingtheUniversityofWestFlorida.UWFsignedamaster'sdegreeineducationpartnershipin2011.

Thefirstcontract

FIUfirstsignedonwithAcademicPartnershipsinFebruary2009,whenthecompanywasoperatingunderthenameHigherEdHoldings.ThefirmhadengineereddramaticonlineenrollmentgrowththroughitsfirstpartnershipatLamarUniversityinTexas,andwastakingitssalespitchacrosstheUnitedStates.

OneArkansasStateUniversityprofessorcalledthecompany'sarrivala"scam,"andresignedfromanacademiccommitteeinprotest.ButjustlikeatFIU,ArkansasStatesigneditscontractsoquicklythatfacultyhadnorealchancetostopit.

AttheUniversityofToledo,professorsraisedconcernsaboutacademicquality,thesharingoftuitionrevenues,andBest'seducationaltrackrecord.

Best,amajorfundraiserforformerPresidentGeorgeW.Bush,hadyearsearliercreatedatutoringprogramcalledVoyagerExpandedLearning.ThecompanyreceivedmillionsinfederalreadingeducationmoneyunderBush'sNoChildLeftBehindlaw,buttheU.S.DepartmentofEducation'sinspectorgenerallaterfoundevidenceoffavoritismandconflictsofinterest.AfederalreviewofVoyager'steachingmethods,meanwhile,foundthemtohave

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"potentiallynegativeeffects"onstudents'readingcomprehension.

Toledo'sunitedfacultyoppositionpersuadedadministratorstoabandontheproposedpartnership,saidLeighChiarelott,chairmanofitsdepartmentofcurriculumandinstruction.

"Someofouralumnisaid,'Don'tcheapenourdegrees,'"Chiarelottsaid."Wejustsaidno,andprovidedevidenceastowhywedidn'tthinkthiswasagoodproductforus."

FIUmathProfessorEnriqueVillamorwaschairoftheFacultySenate'sonlinecommitteewhenprofessorsdiscoveredthe2009contractwithBestafterthedealhadbeensigned.

ThefrustratedFacultySenate,whichnormallyapprovesnewdegreeprograms,passedaformalresolutiondemandingafacultyvoteonfuturecontracts.ButadministratorssayFIUGlobal(andtheexistingCorporateMBApartnership)aren'tnewacademicprograms,butexpansionsofapprovedmajorstherefore,novoteisrequired.

"Backthen,wesaidthatitshouldn'tbedonethatway,"Villamorsaid."Butthey'recomingbackanddoingthesamething,withthesamecompany."

TheMBAprogram

FIUadministratorssayAcademicPartnershipshasdeliveredimpressivelyonitsCorporateMBAdeal,particularlyinitsmarketingandpromotion.Butuniversityrecordsshowthatthecompanyhasusuallyfallenshortofitsstudentrecruitmentgoals.

Thecompanypledgedtoprovide100studentsforeveryenteringclass.Outof16totalenteringclasses,onlyoncedidithitthatnumber117studentsinJulyof2011.Thethreemostrecentclasseshad67,54,and40companyrecruitedstudents,respectively.

ButFIUadministratorsremainsatisfied.

"They'vebeenveryclose,"saidFIUdeanJoyceElam,whooverseesonlineprograms.

Marketingonlineonlydegreesislaborintensive,shesaid,andrequiresfullystaffedrecruitmentcallcenters,whichAcademicPartnershipsprovided.

Wartzoksaidthecompany'srecruitmenttotals,whilebelowthetargetnumbers,arestillmuchhigherthanthenumberofstudentsFIUattractsonitsown.AcademicPartnershipsrecruited40studentsinDecember,forexample,whileFIUrecruited17.

LOADDATE:February17,2013

LANGUAGE:ENGLISH

PUBLICATIONTYPE:Newspaper

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Download - Miami Herald February 2013

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