April 17, 2009

Report to the Slippery Rock UniversityCouncil of Trustees

2006-07 SRU Alum Survey• 98% of SRU graduates rated the quality of their education as “good” or

“excellent” (60% rated as “excellent”; PASSHE school average was 95% for “good” and “excellent” and 50% as “excellent”).

• 98% would recommend SRU to others (95% of PASSHE respondents would recommend to others).

• 95% were satisfied with their instructors and 91% with the intellectual life of the campus (PASSHE alumni reported similar percentages).

• 94% of SRU alums were satisfied with the reputation of the university (89% of PASSHE respondents were satisfied with the reputation of their schools).

• 85% of those SRU students who went on to graduate school felt SRU has prepared them “very well” or “more than adequately” (77% of PASSHE alumni reported the same two categories).

• 72% felt SRU prepared them “very well” or “more than adequately” for their careers (64% of PASSHE alumni reported the same two categories).

Strategic Planning

• Trend One: Changing population dynamics. • Trend Two: Maintaining world leadership in

science and technology. • Trend Three: The need to understand other

cultures.• Trend Four: Increasing higher education’s

commitment to social mobility. • Trend Five: Responding to world’s diminishing

returns regarding resource utilization.

Presidential Task Force for Cultural Awareness

Co-ChairsCatherine J. Massey

Paula Olivero MembersRashad Brown Colleen Cooke Brandon Fox Kateeka HarrisHerman Jones Brad KovaleskiJessamine Montero Jewelle MotleySusan Parsons Christine Pease-HernandezBonnie Siple Sean TurpinChristophas Walker Frederick White

Presidential Task Force for Cultural Awareness

• Remember first to listen• Embrace differences • See what everyone can

contribute • Practice understanding • Encourage a broader perspective • Connect your learning to the

world • Transform our campus

Other Significant Initiatives

The “Perfect Storm”• A confluence of four gales:

– Changing demography– Rising cost to attend college– Increased competition for students and donated dollars– Duress and panic in the economy among:

Students Parents Donors

• 7 of 10 high school students say the struggling economy has affected where they apply to college this year (USAToday, March 25, 2009)• Biggest concern: They will be admitted but can’t afford

to attend.

0

> 20%+11% to +20%

0% to +10%

Decreases

-15+4

-7 +24

-14+11

+48+27

-16

+26

-21

+1

+1

+18

-8

-10

-8

-3

+23

+18

-3-2

-6

-6

-3

+2

-1

-8 -5

-1+3

-2-1

-13

-13

-8+2

+9

+11

Projected Change in H.S. Graduates to 2018

+9

-2

-34

-9 -10 -8-12

-20

-16

-11

Source: Chronicle of Higher Education Almanac 2006-07

-9

Difficult Times – Public Institutions • According to USA Today, states will cut an estimated

$80 billion from their higher education budgets (about18.5%) over the next three years

– Cutting an estimated 574,000 jobs

Idaho Lawmakers Cut Budget 5.8%

Florida Lawmakers approve up to 15% increase in tuition

Louisiana seeks to cut $219M from Higher Education

Michigan seeks to cut $100M from Higher Education

Minnesota seek $200M cut and elimination of one public university

UNLV Plans 21% Cut

U North Carolina estimates losing 500 jobs

Oregon looking at 30% funding cuts

Colorado college students condemned a legislative plan to hack $300 million from higher-education funding.

Difficult Times – Society at Large • In 2008, the Dow lost 30% of its worth; some $7 trillion in

savings and retirement funds were wiped out – The average College 529 plan dropped 35% in value

over the last 14 months• In late February the Dow dropped 50% from its all time

high• In 2008, 2 million people lost their jobs

• Unemployment as of end of March is at 8.5%

Difficult Times − Friends and Supporters

• Annual giving flat or declining• Capital giving flat or declining• Donors will ask for more time to fulfill their

pledge• Major donors will focus on fewer giving

opportunities • More competition for gifts

Difficult Times – Western Pennsylvania

• Our population continues to decline – We have 3,000 more deaths than

births every year– 7,000 more people move out of this

region every year than move in• Between February 2008 and February

2009, the region lost 19,200 jobs, more than double the job loss as of January.– That's the largest single year job loss in

the region in the past two decades.

• The big issue in their minds: Affordability

• Students will apply to more and more schools

• More students will opt for two- and four-year publics and for-profits

• Students will transfer more often

• Students will seek, and expect, more financial assistance

• Students will be wary of aid packages that are predominantly loan-based

• More students will need to work while attending school

• Students will flock to majors with clear job prospects

• Student will attend school closer to home, even online

• Parents will become even more involved in the college-choice process

Difficult Times − For Students and Families

Slippery Rock University

Tuition Assistance Program (TAP)

Slippery Rock University Acts to Provide Tuition Assistance Program to Relieve College Costs to Students and their Families

17

18

SRU Tuition Assistance Program (TAP)

2009-10 Annual Expenditures & Number of Students Served

2010-11 Annual Expenditures & Number of Students Served

2011-12 Annual Expenditures & Number of Students Served

2012-13 Annual Expenditures & Number of Students Served

SRU TAP NEED-BASED (from E&G) $175,000

175 students$296,000

296 students$371,000

371 students$405,000

405 studentsSRU TAPNEED/MERIT(from Foundation)

$75,00060 Students

$126,250101 Students

$157,500126 Students

$171,250137 Students

COMBINEDTOTAL $250,000

235 Students$422,250

397 Students$528,500

497 Students$576,250

542 Students

Difficult Times − PASSHE

2008/09 2009/10Change

$ %

Salaries & Wages $738.0 $767.6 $29.6 4.0%

Benefits 266.5 284.4 17.9 6.7%

Subtotal, Compensation $1,004.5 $1,052.0 $47.5 4.7%

Utilities $37.8 $37.8 $0.0 0.1%

Services, Supplies, Capital 316.4 325.6 9.2 2.9%

Subtotal, Noncompensation $354.2 $363.4 $9.3 2.6%

Total $1,358.6 $1,415.4 $56.8 4.2%

An unfunded gap of $56.8 million

Difficult Times − SRU

Difficult Times − SRU Stays With Values

• The budgeting process is driven by basic principles: – Student comes first. Educating students is always the highest priority.– Academic programs are a higher priority than nonacademic programs.– Consultation with faculty, students, and administration on matters of

the strategic plan and budget decisions are an inherent integral part of the shared governance of the University.

– Cuts and/or increases are not made “across-the-board.” Doing so violates the purpose of the strategic plan and is a formula for mediocrity.

– The University cannot be all things to all people. The budget reinforces the strategic priorities of the University to preserve the overall quality of the institution.

“When there are not enough biscuits to go around, the table manners tend to decline” Attributed to Joab Thomas, Former Penn State President

Strategic Decisions That Set SRU Apart

• We will invest in Quality– Commit to a faculty that is full time and

professionally credentialed.– Commit to enhancing academic programs to

assure accreditation and national recognitions.– Commit to upgrading our teaching/learning

environment, campus safety and security.– Commit to recruiting, educating, and graduating

high quality engaged students.

Strategic Resource Decisions

• We will add more than 11 faculty positions• We will pursue an aggressive energy savings

initiative this summer– ~ $4 million on conservation and maintenance– Projected savings of $243,000 per year

• We will continue to shift resources to those areas showing demonstrated success– Last year we shifted $6.4M to high demand/high

performance areas of the University.