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Internal Report: Outsourcing May Undermine Tenn. Graduation Plan

NASHVILLE, Tenn. — An internal report on the potential outsourcing of building management at public colleges and universities warns Gov. Bill Haslam that the changes could undermine his signature “Drive to 55” initiative to improve graduation rates in Tennessee.

The report titled “Strategies for Efficiency in Real Estate Management” was first obtained by WTVF-TV in Nashville. Among a series of recommendations aimed at cutting $184 million in costs per year, the report proposes reducing office space in higher education through greater use of telecommuting and temporary offices.

But the report acknowledges that the new approach would require a culture change within higher education, and adds that the reduced space “may be inconsistent” with Haslam’s effort to boost graduation rates and the Complete College Tennessee Act because “data indicates student success is correlated with [a] level of student engagement with faculty and staff members.”

The report also calls for getting rid of what it calls obsolete and expensive-to-maintain buildings on campuses, but notes that “decommissioning historic buildings can result in public pushback.”

Haslam spokesman Dave Smith would not answer specific questions about the report.

“You’re putting the cart way before the horse,” Smith said in an email. “No decisions have been made, and there’s no timeline from the governor’s office. We’re committed to working with higher education through a thoughtful and deliberate process to determine if any changes should be made.”

The governor told reporters last month that his “Drive to 55” proposal was part of his reasoning for considering more outsourcing at state colleges and universities because of efforts to expand the numbers of people earning degrees.

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