miami herald february 2013

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1 of 1 DOCUMENT The Miami Herald February 17, 2013 Sunday FIU turns to partnership firm for international online degrees; EDUCATION BYLINE: Michael Vasquez; [email protected] LENGTH: 1347 words DATELINE: February 17 2013 With its state funding shrinking and online college classes rising in popularity Florida International University is banking on students from abroad to boost its finances and expand its academic reach. In that endeavor, the college is turning to Academic Partnerships, an experienced, successful (and politically connected) player in the fastgrowing Internet education industry. FIU first teamed up with the Dallasbased company in 2009 creating an onlineonly Corporate MBA program in which tuition revenue is split between the two parties. Now, FIU is poised to ink another deal: Known as "FIU Global," the proposed new contract would create an online jointly operated degree program targeting students in Latin America and, eventually, maybe China. The university's international reputation could rise or fall based upon the program's success, and if it's a significant moneymaker for FIU, it will help shore up a school budget that has been battered by years of state funding cuts. But the involvement of Academic Partnerships is drawing scrutiny. The company's close ties to former Gov. Jeb Bush have raised questions of political influence, and FIU signed its first contract in 2009 without notifying faculty. "I'm very concerned with FIU Global and our relationship with Academic Partnerships," history Associate Professor Brian Peterson told FIU President Mark Rosenberg at a recent faculty meeting. "It seems like political pressure is being put on FIU to do this thing." Tuition revenues Since 2009, FIU has made more than $18 million in tuition revenues from the Corporate MBA program in which tuition costs $37,500. Academic Partnerships collected close to $20 million, initially taking about 70 percent of tuition revenues, though FIU later renegotiated that to about 45 percent. All state universities are allowed to charge higher "market rate" tuition for some graduate degree programs, with the goal of reinvesting the extra money into the university's budget. The FIU Global contract is in preliminary discussions, school leaders say. The questions of what degrees it will include (and how the tuition dollars will be split) have not been negotiated. Some faculty are asking why FIU handpicked Academic Partnerships for both contracts, as opposed to using a competitive process.

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Miami Herald February 2013

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    1of1DOCUMENT

    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

    Copyright2013TheMiamiHeraldAllRightsReserved