miami herald february 2013
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Miami Herald February 2013TRANSCRIPT
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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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