OKLAHOMA STATE UNIVERSITY

UPDATE ON CRUCIAL ISSUES

Oklahoma State University

Overview Presentation by David J. Schmidly System CEO & President Spring General Faculty Meeting April 19, 2005

Oklahoma State University

Oklahoma State University System One University with Multiple Locations and Missions OSU Campus Cooperative Extension District Offices Agricultural Experiment Stations Video Network Sites

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77 County Extension Offices

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16 Experiment Stations

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Center for Health Sciences & Center for Veterinary Health Sciences

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Oklahoma Technology & Research Park

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Technical Branches in OKC and Okmulgee with 77 associate & 3 bachelor degree options

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2+2 Programs in Tulsa with 28 undergraduate & 52 graduate degree options

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Comprehensive Institution in Stillwater with 170 undergraduate & 153 graduate degree options

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Fire Service Training – 900 Communities

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The Center for Local Government Technology – all counties

$166M state appropriations Leverage $15 to $1

Oklahoma State University

$520M total budget $2.5B impact and 9,500 jobs

The Oklahoma Land-Grant Triangle A Rural/Urban Technology Enterprise Region Ponca City

Lake Carl Blackwell

Hwy 51

Karsten Creek

Cimarron Turnpike

Tulsa Stillwater OSU – Tulsa

2+2 with Tulsa Comm. College

OSU Flagship Headquarters

Applied Materials Research Center Partnership with Langston BS, MS, Ph.D, Degrees Center for Vet. Health Sci. Division Ag. Sci. & Nat. Res.

OSU – Center for Health Sciences

Rural Health & Telemedicine Primary Care Okla. Research & Tech. Park Northern Okla. College Partnership

Okmulgee OSU – Okmulgee

4 year technology degrees Tribal college & health center

Oklahoma City OSU – Oklahoma City

Technology degrees First Responder Training Health Care Training

Oklahoma State University

Ideas and concepts developed within the Land Grant Triangle will be disseminated by extension and outreach programs throughout the state.

Oklahoma’s County-by-County ‘Electoral College’

The tally

Counties (77): OSU: 68, OU 9

Oklahoma State University

Chief of Staff Al Goodbary Dir, Comm. Services Gary Shutt Board of Regents Chief Executive Officer, OSU System, & President OSU David J. Schmidly President, Center for Innovation & Econ. Dev. Joseph Alexander President & Provost, OSU-Oklahoma City Jerry Carroll Executive Director, Alumni Association Jerry Gill Director, Athletics Harry Birdwell Assistant Athletic Director for Compliance Rick Allen President & Provost, OSU-Okmulgee Robert Klabenes Vice President, Enrollment Mgmt. & Marketing Michael Heintze Vice President, Administration & Finance David Bosserman CIO & Dir Distance Learning, Darlene Hightower

---------- Strategic & Policy Issues ______Operational Issues

President OSU-Tulsa Gary Trennepohl Vice President of Agri. Pgms. & Dean, CASNR President, Health Affairs & Dean, Osteopathic Med. Robert Whitson John Fernandes Vice President, Research & Technology Transfer Stephen McKeever Provost & Senior Vice President Marlene Strathe Vice President, Student Affairs Lee Bird Vice President, Institutional Diversity Cornell Thomas Academic Deans Department & School Heads Faculty ****** Colleges Agri. Sciences & Natural Resources Arts & Sciences Spears School of Business Education Eng., Architecture & Technology Human Environmental Sciences Graduate Library Center for Veterinary Health Sciences Osteopathic Medicine

Oklahoma State University

http://system.okstate.edu/viewplans.htm

Oklahoma State University

Strategic Alignment for the Plan

Mission Vision Values Priorities Access

• Enrollment Management • Gateway Program with NOC

OSU Alumni Association Affordability

• Tuition • Scholarships

Excellence

• Rankings • Research • Facilities

Student Success

• Graduation & Retention • Learning Outcomes Program

Alumni Seven Strategic Goals

•Academic Excellence •Student Success and Development •Engagement and Outreach •Diversity •Human Resources •Enhance & Leverage Resources •Image/Pride/Recognition

CIED Student Body Faculty Staff OSU Foundation Athletics

Center for Innovation & Economic Development, Inc.

OSU Parents Association

Oklahoma State University

We Must Manage Our Enrollment

The key is maintaining an appropriate balance between the size, quality, and composition of our student body. • Improve the freshman class profile—new admissions standards.

• Expand recruitment efforts inside and outside Oklahoma.

• Improve merit scholarship program.

• Place more emphasis on transfer students.

• Develop partnerships with two-year institutions.

• Achieve 80/20 mix of undergraduate to graduate students.

• Address the problem of declining international student enrollment.

• Develop an enrollment management plan and use it to guide campus decision making.

Oklahoma State University

NOC/OSU Gateway Program

OSU Freshman Applicants (Not Admitted) Hall of Fame Ave .

OSU Students Needing Remediation OSU Students Taking Gen. Ed. Courses

Cowboy Mall

Admitted as Transfer Students (24 hrs./2.25 GPA)

Oklahoma State University

First-Time Freshmen Headcount Enrollment, ACT Scores, and Acceptance Rates 4,000 3,500 3,000 2,500 27.5

(85%) (57%) (87%) (60%) (80%) (57%) (86%) (56%) (89%) (57%) (89%) (59%) (88%) (57%) (88%) (56%) (87%) (57%) (89%) (58%) (92%) (59%) (91%) (62%) (92%) (63%) (90%) (59%) (89%) (56%) 26.5

25.5

2,000 1,500 24.5

1,000 500 0 23.6

23.6

23.7

23.8

23.9

24.3

24.3

24.1

23.9

23.8

23.7

24.0

24.3

23.3

23.0

1990* 1991* 1992* 1993* 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004** 23.5

22.5

Fall Semester Top percentage is the acceptance rate, the percentage below is the yield rate (% of accepted students who enrolled).

*1990 – 1993 New Freshmen counts include non-degree-seeking students. **Starting with 2004, Concurrent High School Students have been excluded.

Source of Data: 1990 – 2004 Oklahoma State University Fall Student Profiles

Oklahoma State University

We Must Strengthen Our Faculty

The key component is to strengthen the faculty. At OSU we must: • Restore the faculty – we lost 100 positions from 2001-03.

• Reward the faculty – our salaries are at the bottom of our peer group.

• Grow the faculty – our faculty is not large enough to achieve either ranking.

We also must provide adequate facilities and space for our faculty. We must strengthen our graduate programs and stipends to attract top students.

Oklahoma State University

Full-Time Tenure/Tenure-Track Faculty Headcount Compared to Enrollment Growth Fall 1995 through Fall 2003

1,000 24,000

22,992 23,571

23,000 980 974 970 971 967

21,872

969 22,000 960 943 955

21,087

938

21,252

21,000 940

20,466

20,000 933 920

19,350

19,000

19,201 19,125

900 1995 1996 1997 1998 Faculty 1999 2000 Enrollment 2001 2002 2003 •From Fall 1995 to Fall 2003, student enrollment has increased more than 23%.

•In the same time period, full-time tenured & tenure-track faculty has increased less than 3%.

18,000

Oklahoma State University

Addressing Faculty Salary Issues Addressing Salary Issues

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Restore

Faculty  25 positions per year for 4 years (FY05 - FY08)  $10M total 

Reward

 $1.2 - $1.8M new funding needed each year (FY06 FY15)  $13M total 

Grow

Faculty Faculty  10 new positions per year (FY06 - FY15)  $1.0 - $2.0M new funding needed each year  $3M annual start-up funding  $15.2M total

Oklahoma State University

What it will cost…

P R I O R I T Y Restore Faculty Salary Benefits Total Per Position # of Positions New Funds Needed Each Year Reward Faculty Salary Benefits New Funds Needed Each Year Fill Vacant Faculty Positions, Reward Existing Faculty, and Increase the Size of Faculty FY05 FY06

General University

DRAFT (Dollars in Thousands) FY07 FY08 FY09 FY10 * FY11 FY12 FY13 FY14 FY15 Total $69 $21 $90 25 $2,260 $71 $23 $94 25 $2,365 $800 $237 $1,037 $73 $26 $99 25 $2,478 $75 $29 $104 25 $2,597 $824 $260 $1,084 $849 $286 $1,135 $874 $315 $1,189 $900 $347 $1,247 $927 $381 $1,309 $955 $419 $1,375 $984 $461 $1,445 $1,013 $507 $1,521 $1,044 $558 $1,602 100 $9,700 $12,944 Grow Faculty Salary Benefits Total Per Position # of Positions New Funds Needed Each Year Startup Funds needed for Growth Fac.

Total Number of New Faculty TOTAL NEW FUNDS NEEDED $100 $23 $123 10 $1,235 $1,500 $103 $25 $128 10 $1,289 $1,500 $106 $29 $135 10 $1,346 $109 $31 $141 10 $1,406 $113 $35 $147 10 $1,470 $116 $38 $154 10 $1,538 $119 $42 $161 10 $1,611 $123 $46 $169 10 $1,689 $127 $51 $177 10 $1,771 $130 $56 $186 10 $1,860 100 $15,215 $3,000 $2,260 $6,137 $6,351 $5,078 $2,595 $2,717 $2,847 $2,986 $3,134 $3,292 $3,462 200 $40,859

Oklahoma State University

To attract the best and brightest graduate student talent to OSU by improving graduate student stipend and tuition scholarship packages to peer competitive levels

FY 2006 $950,000 FY 2007 $600,000 FY 2008 $500,000 FY 2009 $500,000

Oklahoma State University

We Must Provide Adequate Facilities and Space for Our Faculty

Capital Projects

• New interdisciplinary science building • Renovate South Murray Hall • Construct new classroom building and undergraduate study center • Renovate existing business school building • Construct new business school building • Renovate Library Plaza • Construct new architecture building • Construct ATRC Building at OSU-Tulsa • Multimodal Transportation Center & Parking Garage • Renovate Veterinary Medicine Health Science Centers Animal Diagnostic Lab • Construct building for Hospitality Mgmt. Program

Amount

$76,000,000 $16,800,000 $9,000,000 $10,000,000 $25,000,000 $650,000 $19,460,000 $45,000,000 $15,000,000 $13,000,000 $10,000,000 $239,910,000 1 = Funding pledged 2 = $500M capital bond before Oklahoma Legislature this session 3 = potential donor identified but no commitment secured

Oklahoma State University

Source of Funds

Capital Bonds (CB) 2 CB 2 CB 2 +Private 3 Private 3 Private 3 Private 1 Foundation Grant 3 Tulsa 1 +CB Federal Appropriations 1 CB 2 Private 3

We Must Raise Funds For Academic Programs

Priorities

Endow Colleges and Departments Faculty Chairs Faculty Development Student Scholarships and Fellowships Student Leadership and Wellness Academic Facilities Library Campus Beautification Marketing and Promotions

Oklahoma State University

Fund-Raising Highlights

Since January 2003

• Largest gift pledge in history of institution - $70M • Largest corporate donation in history - $7.5M

• Other large corporate gifts  Devon Corporation - $2.3M

 SBC Corporation - $3.00M

 Chesapeake - $0.50M

• First endowed college - donor with state match

Oklahoma State University

We Must Build Our Academic Reputation

• First and foremost, the quality of faculty and students drives academic reputation.

• However, we also must “tell the world” what these faculty and students are doing. Oklahomans need a better understanding of OSU, and we need to tell “our story” in a more profound way.

This must be done with a commitment to marketing and communications.

Oklahoma State University

Oklahoma State University

OSU SCHOLAR DEVELOPMENT AND RECOGNITION A Decade of Undergraduate Success

• Attracted national recognition for OSU as an innovative and successful approach to motivating and rewarding top scholars. •

Scholarships Won

Rhodes 1 Truman 13 Udall 2 Pickering Foreign Service 1 Gates 2 •

Other Programming

Marshall 2 Goldwater 12 Rotary Ambassadorial 5 USA Today All-American First/Second Team 4 (in the last 2 years) Wentz Research Projects, $4000 per year for top undergraduates to perform mentor-directed research. Wentz Leadership Scholarships, $2500 awards for OSU’s best scholar/leaders. Summer Study in England (3 successive programs in Oxford/Cambridge for 15 top students each year).

Oklahoma State University

What We Must Do to Build Academic Resources

• The University’s central fund-raising capability has been strengthened to focus on academic priorities.

• We must convince the Oklahoma legislature to invest more in its comprehensive institutions so that we can strengthen the faculty.

• We must convince the Oklahoma congressional delegation to secure directed federal appropriations to enhance our research capacity in areas that contribute to economic development.

Oklahoma State University

Oklahoma State University

Oklahoma State University - General University

State Appropriations and Tuition as Proportions to the Total Budget

50% 40% 30% 20% 45% 10% 12% 0% FY 1985 State Appropriation 25% 23% FY 2005 Tuition and Fees

Oklahoma State University

Oklahoma State University FY 2006 Budget Needs

New Appropriations to Higher Ed.

Appropriations to Institutions 30,000,000 40,000,000 50,000,000 60,000,000 20,000,000 30,000,000 40,000,000 50,000,000 OSU Share (assume 14.1%) 2,820,000 4,230,000 5,640,000 7,050,000 Fixed Cost 3% Salary and Wage Program Faculty FTE to Manage Enroll. Incr.

Total Mandatories & Raise Program 7,939,660 4,887,000 2,365,000 15,191,660 7,939,660 4,887,000 2,365,000 15,191,660 7,939,660 4,887,000 2,365,000 15,191,660 7,939,660 4,887,000 2,365,000 15,191,660 Funding Needed After Appropriations (12,371,660) (10,961,660) (9,551,660) (8,141,660) Tuition & Mandatory Fee Increase Needed* 12.00% 9.00% 7.00% 3.70%

Oklahoma State University

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As a State - Oklahoma Has a Weak Research Profile

Oklahoma’s Fed R&D funding capture rate $55 National Fed R&D funding capture rate $269 per capita per capita

Leave $738,000,000 in federally-sponsored R&D funding on the table each year

Total economic impact of $1,347,000,000 Directly creates 26,495 jobs and indirectly an additional 9,020.

Oklahoma State University

Oklahoma State University Research Model

University Students (UG/G) Educational Value Teaching Research Service Produce Knowledge Prestige/Reputation Faculty Income (Univ.) I.P. & Technology Income (Univ./Faculty) Economic Development (Local, Region, State) Become a More Research Intensive Institution • Build off our land-grant legacy • Targeted research strengths • Basic, applied & strategic research • Focus on student outcomes & research education • Focus on interdisciplinary approaches • Focus on research income and technology transfer • Outcomes oriented • Highly entrepreneurial

Oklahoma State University

Economic Impact Analysis of “High-Tech” Companies in the Stillwater Area Which Nucleated Out of OSU

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35 companies

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642 employees

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average annual salary of $40,000 = $25.7M annual payroll Annual Impact

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Number of primary and induced jobs = 1,179

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Total personal income for both primary and induced jobs = $35.7M

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Local tax revenues = $742,000 annually

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State tax revenues = $2.35M annually Five-Year Impact the period) (assuming no job growth and constant payroll over

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Total personal income over period (both primary and induced jobs) = $178.7M

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Local tax revenues = $3.7M

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State tax revenues = $11.8M

Oklahoma State University

Directed Federal Appropriations

(Federal Initiative Orange Book)

I.

Development of Agenda • Broad system-wide input (System CEO, Presidents, Deans) II. Guidelines • Project must relate to economic development • All awards, grants, and contracts will be managed by Education, Research and Economic Development Foundation (EREDF) III. Successes • FY04 Total = $17.506M

• FY05 Total = $17.589M

• Grand total = $35.095M

Oklahoma State University

“It is essential to recognize that the real challenge (to higher education) lies in transforming the culture of the institution. Financial or political difficulties can be overcome if the organization can let go of rigid habits of thought, organization, and practices that are incapable of responding rapidly or radically enough.” (Dr. James Duderstadt, President Emeritus The University of Michigan)

Oklahoma State University