Office of the President 1 Moving Forward As A University Community September 29, 2009 President John Haeger

Office of the President

1

Moving Forward As A University Community

September 29, 2009

President John Haeger


2008-2009 Accomplishments

• NCAA accreditation

• Native American Cultural Center – received a $2M contribution from the San Manuel tribe.

• ARD -- Award from Royal Institute of British Architects

• Kiplinger’s Personal Finance magazine ranks NAU as one of the best values among public colleges nationwide

• Implemented “joint admission” programs with Coconino Community College and Yavapai College

• Health and Learning Center /SPEED Projects

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3

Growth Since 2005

Fall Enrollments by Campus, Fall 2005-2009;

Total = 23,600


Enrollment Issues

• Community Campuses enrollment

• Drop in graduate enrollment both online and in community campuses

• Competitive position versus for-profit institutions

• System Architecture

• Need for investment in new programs

4


FY 2010 BudgetFY09 Original

FY 09Final

FY10

Total State Budget $214,181.4 $192,893.1 $207,711.7

General Fund 161,560.9 140,272.6 134,642.8

State Collections52,620.5 52,620.5 73,068.9 Est.

State Budget Initial Investment Flexibility

$12.0 M

Commitments (Utilities, Class Coverage, Critical Hires, Diversity)

$3.55 M

Reserve $5.0 M

Surplus for Commitments

$3.45 M


Budget Situation

120,000.0

130,000.0

140,000.0

150,000.0

160,000.0

170,000.0

State General Fund

6

• Total state budget for FY 2010 is approximately $8 million down from FY09.

• Tuition and fee revenues helped stabilize the overall state budget.

• This year, also have a tuition surcharge bringing in $5 million, plus an IT Fee increase which allowed us to move IT personnel off the state budget

• We also have one-time flexibility in local funds

2007

Adju

sted

200

8

2009

Orig

inal

2009

Fina

l20

100.0

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

Total State Budget

State General Fund State Tuition and Surcharge


Warning Signs for the Future in Arizona

• State budget is unlikely to return to FY08 levels

• Tuition cannot continue to rise

• Arizona’s current and future demographics are sobering

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For 2010, Arizona Remains Among States With The Worst Budget Problems

Source: National Conference of State Legislatures, 2009/Dennis Jones, NCHEMS


Percent of Children Ages 0 to 17 Living in Families with Less than a Living Wage (2007)

Miss

issipp

i

New M

exico

Louis

iana

Wes

t Virg

inia

Alabam

a

Arizon

aId

aho

Georg

ia

Florida

Main

e

Miss

ouri

United

Sta

tes

Nebra

ska

India

na

Nevad

a

Penns

ylvan

ia

Was

hingt

on

Delawar

e

Verm

ont

Utah

North

Dak

ota

Virgini

a

Minn

esot

a

New J

erse

y

Mar

yland

New H

amps

hire

0

10

20

30

40

50

60

54

.35

2.1

51

.94

9.9

49

.74

8.3

48

.24

8.1

47

.74

6.3

45

.84

5.4

44

.04

3.4

43

.14

2.6

41

.64

1.5

41

.54

1.2

41

.24

0.6

40

.04

0.0

39

.83

9.7

39

.13

9.0

38

.13

8.0

37

.03

6.6

35

.63

5.6

35

.43

5.3

35

.23

5.2

35

.03

4.4

33

.23

2.6

30

.32

9.7

29

.22

7.9

26

.72

6.5

25

.82

5.1

24

.5

Source: 2007 American Community Survey (Public Use Microdata Samples)/Dennis Jones, NCHEMS


Arizona Provides Very Little Need-Based Aid

108% 102% 96%88% 86% 84%

84% 82%74% 70%

62% 59% 57%56% 50%

49%48%48% 46% 43% 41%

41% 37%36% 33%

32% 29%28%28%28% 24% 21%

20%19% 17%

16% 13% 10% 9% 8% 8% 6% 5% 5% 5% 3% 1% 1% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Washington

New

Jersey Verm

ont N

ew York

Pennsylvania Indiana M

innesota Illinois Connecticut N

orth Carolina W

isconsin M

aryland M

assachusetts

California Virginia Delaw

are Kentucky N

evada O

hio W

est Virginia Colorado O

klahoma

Maine

South Carolina Iow

a Texas M

issouri Arkansas M

ichigan Rhode Island O

regon Florida N

ew M

exico N

ebraska Kansas Tennessee N

ew Ham

pshire N

orth Dakota M

ontana Louisiana U

tah Alaska Alabam

a Haw

aii Idaho Arizona M

ississippi W

yoming

Georgia

South Dakota

Source: Measuring Up 2008/Dennis Jones, NCHEMS

State need-based aid as a proportion of federal need-based aid.


National Higher Education Agenda

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“…by 2020, America will once again have the highest

proportion of college graduates in the world.”President Barack ObamaAddress to the Joint Session of Congress, February 24, 2009

Increase the percentage of Americans

with high-quality, two- or four-year college

degrees and credentials …

To be nationally competitive in the percentage of Arizona’s citizens with a high-quality bachelor’s degree …” (50% more bachelor’s degrees)

• At full build-out in 2020, the system will include at least four additional four-year campuses


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Median Earnings by Education: 2006

$18,868 $20,506

$27,384

$35,274

$46,435

$55,445

$85,857

$78,212

No Diploma(Less than 9th

Grade)

No Diploma (9th- 12th Grade)

High-SchoolDiploma

AssociateDegree

Bachelor'sDegree

Master's Degree ProfessionalDegree

DoctorateDegree

Source: U.S. Census Bureau, Current Population Survey 2007

Median Earnings by Education Level


International Perspective: Proportion of Population (Age 25-34) With Bachelor’s Degree or Higher

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Norway

Unite

d Sta

tes

Nethe

rland

s

Korea

Denm

ark

Sweden

Japa

n

New Z

eala

nd

Austra

lia

Canad

a

Finla

nd

Unite

d Kin

gdom

Icela

nd

Irela

nd

Polan

d

Spain

Franc

e

Luxe

mbo

urg

Switzer

land

Arizon

a

Hunga

ry

Portu

gal

Belgi

um

Greec

eIta

ly

Mex

ico

Slova

k Rep

ublic

Czech

Rep

ublic

Germ

any

Austri

a

Turke

y

40 %

35 %

23 %

13 %

Arizona

Source: Education at a Glance 2008, OECD; 2006 Data

United States


14

Ger

man

y

Gre

ece

Finlan

d

Japa

n

Korea

Norway

Czech

Rep

ublic

Icela

nd

Switzer

land

United

King

dom

Denm

ark

Irelan

dIta

ly

EU19 A

vera

ge

Hunga

ry

OECD A

vera

ge

Slovak

ia

Canad

a

Poland

United

Sta

tes

Sweden

New Z

ealan

d

Luxe

mbo

urg

Spain

Turke

y

Mex

ico0

20

40

60

80

100

120

EU19 Average 86

OECD Average 83

United States 77

International Perspective: High School Graduation Rates 2006

Source: Education at a Glance 2008, OECD IndicatorsNote: Figures for net exporters of students may be underestimated and overestimated for net importers.


Performance Issues in Higher Education

• Retention and graduation rates

• Inadequate STEM degree production

• Tuition Increases

• Misalignment of education with skills needed for 21st century

• Resistance to change

• College readiness

• Inefficient governance structures

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Directions of the European Commission on Education and Training

• Research should remain a key task of the systems as a whole, but not necessarily for all institutions.

• The proportion of graduates who have spent at least one term or semester abroad or with experience in industry should at least double.)

• Reorganization of the university away from disciplinary departments and into units reflecting research and teaching themes

• Provide incentives for structured partnerships with the business community.

• University programs should be structured to enhance directly the employability of graduates and to offer broad support to the workforce more generally.

• Enhance interdisciplinary research and teaching

• Reward excellence at the highest level….


Addressing The Challenge

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Changing the Paradigm• Programs on-campus the same as off-campus

• Freshman year as a time for “exploration”

• Reduced loads for freshmen

• Large numbers of degree and course options represents a healthy curriculum

• The only pathway to a degree is through the classic liberal arts/academic major

• All instruction should be delivered by tenured faculty

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Degree Granting Public Institutions

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Carnegie Classification 2008


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NAU - Yavapai

Dr. James R. Carruthers Research and Education

building; NAU-Yuma


The Extended Campus Model

• Lower cost to students and state

• Highly structured degree programs

• Degree programs related to market need

• Different faculty workload and research expectations

• Redesigned transfer process 21


Response to New Reality: Mission Differentiation

Mission Focus

Curricular Autonomy / Faculty

Governance

Academic Programs

Non-academic Services

Funding Sources

Relative Tuition Level

Admission

Flagstaff Residential Campus

Research/ Teaching Yes

Many Options

Full Spectrum

State/ Tuition High Selective

Branch Campuses (Yuma, Yavapai) Teaching Yes

Structured/ Streamlined

Limited and Outsourced

State/ City/ County/ Tuition Moderate

Moderately Selective

Community Campuses/ Online Campus Teaching No

Structured/ Streamlined Limited

State/ Tuition Moderate Selective

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Continued Investments in Research

• Purchased Grants and Contracts-specific software

• Investment in personnel infrastructure

• Investment in supporting ARRA grants

• Approval granted for acquiring Web of Science/InCites

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Moving Forward On The Research Agenda• Established NAU Ventures, a formal partnership to

promote patents and copyrights by NAU faculty

• Nearly $9M in funding awarded by the National Institutes of Health to revitalize the Native American Cancer Partnership.

• Darrell Kaufman’s work on global warming in arctic regions published in Science magazine.

• Tom Acker and Sustainable Energy Solutions group awarded $8M grant from Science Foundation Arizona (pending obtaining matching funds from private/community partners)

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Undergraduate Education Redesign…to improve retention and degree completion within a financially

sustainable structure:• Redirect low-demand programs

• Move faculty to interdisciplinary programs • Develop new curricula and delivery systems

• Math; New programs explicitly tied to the 21st century needs—green jobs, health informatics, service management, health professions; sustainability

• Conduct policy audit• Prerequisites, retaking of courses for better grade, late dropping of

courses

• Encourage web course formats and year-round scheduling

• Web-based advising system

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Courses With 33% Or More D-F-W’sCourse Title

ANT 301 Peoples of the World

BIO 201 Human Anatomy/Physiology I

CIS 120 Intro to Computer Information Systems

MAT 108 Algebra for Pre-Calculus

MAT 119 Finite Mathematics

MAT 125 Pre-Calculus

MAT 136 Calculus I

MAT 137 Calculus II

PSY 277 Introduction to Personality

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Note: PSY 101 (Introduction to Psychology) and BIO 181 (Unity of Life) recently came off this list due to course redesigns which fostered student success


NAU Retention and Graduation Rates

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1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 200840%

45%

50%

55%

60%

65%

70%

75%

Six Year Graduation Rate 1 Year Retain

Peer Average-Median


The Necessity for Speed • Federal stimulus dollars on competitive basis

• Better use of shrinking resources

• Innovation Fund ($1 million from stimulus dollars).

– Individuals or departments to write new and re-design existing curricula . We will support those wishing to change policies that get in the way.

• Retirement incentive program for tenured faculty

– Provides flexibility in base budget

– Will allow investment in new and growing programs

• Committee on Innovation and Change

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Documents

Office of the President 1 Moving Forward As A University Community September 29, 2009 President John Haeger