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9th Annual UIC Leadership Retreat THE PRIVATE-PUBLIC CONTINUUM & A CHANGING UIC Lon S. Kaufman VCAA/Provost August 18, 2011 1 WE ARE THOUGHTFUL STEWARDS OF OUR RESOURCES 2 UNRESTRICTED FUNDS GO TO THE COLLEGES FY 2002 $498.4 M FY 2011 $639.0 M Colleges $326.0M Colleges $257.4M Acad. Support Admin. Units $185.4M Utilities $24.7M Acad. Support Admin Units $177.0M Financial Aid $20.8M Utilities $46.4M Other centrally-budgeted costs $68.3M Other centrally-budgeted costs $30.9M 3 INFLATION ADJUSTED FY 2002 $498.4 M FY 2011 $509.3 M 0% Colleges $259.8M Colleges $257.4M Acad. Support Admin. Units $185.4M -22% Acad. Support Admin. Units $141.1M Financial Aid $16.6M Utilities $37.0M Utilities $24.7M Other centrally-budgeted costs $30.9M Other centrally-budgeted costs $54.4M 4 THE CURRENT SITUATION • End of FY 2006 155 units had deficits totaling $50 M End of FY 2010 17 units had deficits totally $ 19 M • All Colleges are running in the black • The campus has sufficient CASH reserves to cover a major rescission. 5 HOW DID WE – YOU - ACHIEVE THIS? 6 DECENTRALIZING - FUNDS FLOW • TUITION - Colleges receive 75% of the tuition revenue. • ICR - College share increased from 30% to 47.5%. • ICR - Revenue to VCR and VCAS linked to research growth. • RA TUITION REMISSION - College share increased from 50% to 75%. • GA TUITION - Employer compensates home college for tuition waiver. • CROSS-COLLEGE INSTRUCTION - Colleges compensate each other. • USAGE CHARGE - Units that incur deficits pay an interest charge. • RENT LESS - Units come back to campus; use the rent to renovate. • CENTERS - Shared investment; Colleges, Provost, VCR, VPHA • SPACE ECONOMY - Colleges share in cost or savings in O&M, & utilities. 7 • WE INVESTED OUR FUNDS IN THE COLLEGES • THE COLLEGES HAVE BEEN SUCCESSFUL IN GARNERING EXTERNAL RECOGNITION IN THE FORM OF ADDITIONAL RESTRICTED AND UNRESTRICTED FUNDS: GRANTS, SELFSUPPORTING ENTERPRISES, INTELLECTUAL PROPERTIES, SATISFIED STUDENTS, HIGHER RANKINGS. • WE HAVE ATTEMPTED A SIMILAR INVESTMENT IN INFRASTRUCTURE AND DEVELOPMENT WITH EQUAL SUCCESS. 8 WE ARE NOT OUT OF THE WOODS YET … 9 STATE OF ILLINOIS • • • • Structural gap of as much as 7 billion dollars Tax increase helped but did not close the budget gap Dependency on economic growth Pension issue remain unresolved 10 U of I MONTH-END GRF RECEIVABLE Dollars in Millions $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 July 06 Dec 06 June 07 Dec 07 June 08 Dec 08 June 09 Dec 09 June 10 Dec 10 June 11 11 U of I MONTH-END GRF RECEIVABLE Dollars in Millions $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 July 06 Dec 06 June 07 Dec 07 June 08 Dec 08 June 09 Dec 09 June 10 Dec 10 June 11 12 SOME OF THE ISSUES EFFECTING UIC IN FY 11 • Uncertainty regarding retirements • Uncertainty regarding state budget and rescissions • Uncertainty regarding our budget and rescissions • Conversions from Academic Professional to Civil Service • Aggressive ARR and One University agendas • The relationship of the medical center to campus • Three years of no raises 13 CONSEQUENCES OF THESE ISSUES • Loss in a number of key senior staff • Loss in a number of senior faculty • Difficulty in specifying budget targets for the colleges in FY 12 • New administrative structures • Loss of trust • Raises in AY 2012 • Faculty union in 2012 (?) 14 WE ACT MORE LIKE A PRIVATE UNIVERSITY THAN IN THE PAST & WE ARE MORE ENTREPRENEURIAL THAN IN THE PAST 15 WITH RESPECT TO RESOURCES • Our tuition income (IF; Income Fund) will exceed our state allocation (GRF: General Revenue Fund) for the first time this fiscal year. • Our restricted funds (grants, contracts, selfsupporting) exceed our unrestricted funds (tuition and state) by about two-fold. • Our Self-Supporting funds are our single largest resource and close to half our total resources. • Self-Supporting operations are growing at a rate matched only by tuition. 16 FY 2011 REVENUE BY FUND Unrestricted Funds ($678) Restricted Funds ($1,272) Self-Supporting Grants & Contracts $266 $767 Gifts & Endowment Institutional Funds Income Fund $295 GRF $117 $22 $483 17 HISTORICAL VIEW – REVENUE BY FUND In Millions $2,000 $1,800 $1,600 $1,400 $1,200 Self-Supporting $1,000 Institutional Funds $800 Grants & Contracts $600 Gifts & Endowment $400 Income Fund $200 GRF $0 Fiscal Year WITH RESPECT TO OUR STUDENTS Amenities: Housing, Recreation Centers, Oases , South Campus Success : Mid-semester grades, LAS Mandatory Advising, Chancellor’s Advising Initiative, Learning Centers (Math, Science, Language, Writing, ACE), Summer College Outcomes orientation : Job related majors, time to graduation, graduation rate, gap closure High tuition high discount -- Access: Yearly tuition increases, four year guarantee, 10-15% of tuition returned as financial aid 19 FRESHMEN WANT TO LIVE ON CAMPUS Percent Students Living on Campus 50% 45% 40% 35% 30% New Freshmen 25% All Undergraduates 20% 15% 10% 5% 0% 2000 2005 2010 20 ACCESS: HIGH TUITION, HIGH DISCOUNT Academic Year Tuition and Fees Average Net Price of Attendance $14,000 $14,000 $12,000 $12,000 $10,000 $10,000 $8,000 $8,000 PEERS PeerUIC Group $6,000 $6,000 UIC UIC $4,000 $4,000 $2,000 $2,000 $0 $0 2007 2008 2009 2007 2008 2009 2007 20102007 2008 2008 2009 2009 Student Success Six-year graduation rate 60% 50% 40% 30% 20% 10% 0% 1984-1990 1994-2000 2004-2010 22 NEW TYPES OF LEARNERS Growth in Fall Certificate Enrollments ENROLLMENTS 350 Urban Planning &Public Affairs 300 School of Public Health 250 Nursing 200 Liberal Arts & Sciences Engineering 150 Education 100 Coll of Med Office of the Dean Applied Health Sciences 50 0 2005 2006 2007 2008 2009 2010 23 DIFFERENT DELIVERY MODES Number of Online Program Offerings Fall Enrollment in Online Programs 1,000 40 900 35 800 30 700 25 600 500 20 400 15 300 10 200 5 100 0 0 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 24 WITH RESPECT TO OUR FACULTY Loss of tenure system faculty and increase in non-tenure system faculty Faculty FTE 1400 1300 1200 Tenure-System 1100 Other Faculty 1000 900 800 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 25 CENTER-INSTITUTE RESEARCH EXPENDITURES $50,000 In 1,000’s $40,000 $30,000 $20,000 $10,000 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 fiscal year 26 DISCLOSURES, PATENTS FILED AND LICENSE INCOME 250 12 Number 8 150 6 100 Dollars in Millions 10 200 4 50 2 Disclosures Patents Filed 0 0 2001 2002 2003 2004 2005 2006 Year 2007 2008 2009 2010 License Income RESULTS ARE NOT SIMPLY FISCAL BUT ALSO IN SATISFACTION AND REPUTATION 28 STUDENT SATISFACTION – ALUMNI SURVEY % of respondents 70 60 50 40 EAST SIDE 30 WEST SIDE 20 10 0 Extremely Positive Positive Neutral Negative Extremely Negative 29 STUDENTS WANT JOBS How related is your current job to your major? Percent of respondents 35 30 25 20 15 10 5 0 Closely Related Related Unrelated by Choice Unrelated not by Choice 30 RECOGNITION IN THE NATIONAL PRESS Assoc Press; LA Times, NY Times, USA Today, Wall Street Journal and Washington Post Number of Hits 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 31 INVESTING IN OUR INFRASTRUCTURE DEFERRED MAINTENANCE CAPITAL INVESTMENT 32 CAPITAL FUNDING – DEFERRED MAINTENANCE • 10 years of no capital funding from state • Alternative funding options – certificates of participation, student fees, internal reallocation • Challenge of addressing the most egregious of the deferred maintenance • Sustainability – energy- lights – photovoltaic's – geothermal • Shrink the physical footprint – reduce rental space & eliminate aging facilities 33 CAMPUS INVESTMENT IN CAPITAL FACILITIES $ millions $35 $30 UA passthrough Campus R&R $25 Classroom remd AFMFA $20 $15 $10 $5 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Fiscal Year 34 OUR NEXT CHALLENGE IN THIS ARENA: BALANCING OUR U of I & UIC MISSIONS WITH OUR GROWING ENTREPRENEURSHIP AND PRIVATIZATION 35 • How will we continue to assure access in a tuition driven world? • How will we assure a better student population means greater diversity – of all sorts – and not simply a bigger ACT score? • How will we continue to assure excellence and purity in research, creativity, and discovery in an entrepreneurial model? • How will we value and measure the value of research, creativity, and discovery that cannot be measured by dollars- either directly or indirectly? • How will we value a continuum of research, creativity, discovery that extends beyond the edges of campus and into our communities- be it a physical community such as the surrounding neighborhoods, a functionally based community such as CPS, city governments or the market place, a sister community such as the underserved communities throughout the world, or a virtual community as we find in today’s global economy? 36 MAINTAINING STUDENT DIVERSITY Total Student Enrollment by Race/Ethnicity 30000 25000 20000 AmerInd/AlskNat. African American Asian/Pac.Isl. 15000 Caucasian Hispanic 10000 International Unknown/Multi 5000 0 2000 2001 2002 2003 2004 2005 2006 Fall Term 2007 2008 2009 2010 37 MAINTAINING STUDENT DIVERSITY Family Income Geographic Origin 6% Chicago 7% Other Cook County 32% Unknown 27% Other Illinois 28% Other U.S. International 27% $30,000 to $60,000 21% 16% 31% 53% More than $60,000 Sex Age 16% Less than $30,000 36% 22 & Under 23-29 30 & Over 55% 45% Men Women MAINTAINING STUDENT DIVERSITY Grant Aid for Neediest Students $90M $80M Aid Amount $70M $60M $50M UIC Grant PELL MAP $40M $30M $20M $10M $0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Financial Aid Year 39 THE FUTURE: PARTNERSHIP WITH THE PRIVATE SECTOR 40 TAKING ADVANTAGE OF CENTRALIZED /SHARED SERVICES TO ACHIEVE EFFICIENCIES AND BECOME AGILE IN THE MARKET PLACE ASSURING OUR UNIQUE QUALITIES AND BRINGING THEM TO THE MARKET PLACE FOR RECOGNITION 41 EMERGING MODELS: PUBLIC / PRIVATE; STATE / NON-STATE • UIC College Prep High School • Innovation Center, IPD courses • Affiliation with private hospitals/healthcare systems (MacNeal, Resurrection) • Illinois Ventures • Incubator Laboratory Facility, 2242 West Harrison building • Institute for Patient Safety Excellence 42