ASU PRESENTATIONABOR SPECIAL MEETING

MARCH 8, 2011

3/21/2011 1

ASU GOALS AND OBJECTIVES

3/21/2011 2

ASU Vision

To establish ASU as the model for aNew American University, measurednot by who we exclude, but rather bywho we include; pursuing researchand discovery that benefits the publicgood; assuming major responsibilityfor the economic, social, and culturalvitality and health and well-being of the community.

3/21/2011 3

Non-medical research$700 million

University campus enrollment

85,000

Freshmen retention90%6-year graduation

70%

College, online & other enrollment

35,000

20202010

3,000

70,000

$335 million

56% 84%

Summary: Arizona State University, 2010 to 2020

2020 goals arehigh-end targets

3/21/2011 4

ASU 2008 to 2011ACADEMIC PROGRAMS & ADMINISTRATIVE

SUPPORT REDUCTIONS AND ADJUSTMENTS

3/21/2011 5

State Investment and Stimulus Impact per FTE Studentadjusted for Inflation using the Consumer Price Index

FY 1963 - FY 2012

$6,992$7,085

$6,365

$4,822

$4,980$4,935

$4,570$4,389

$4,906

$5,284$5,403

$5,789

$6,266

$6,546$6,759

$6,586

$6,151$6,061

$6,280

$5,943

$5,274

$5,837

$6,504

$5,746

$6,266

$6,963

$8,170

$8,665

$8,423

$8,812 $8,818

$9,170

$8,894

$8,520$8,294

$8,494$8,626

$8,511$8,660

$9,325

$9,071$8,900

$8,213

$7,403

$6,855$6,768

$6,804

$7,484

$8,079

$6,582

$5,902$5,692

$5,468

$4,403

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

Dol

lars

per

FTE

Temporary Stimulus Funding

State Investment with $170million system cut

Base State Investment per FTE

3/21/2011 6

Net Decrease in Number of State/Tuition-Funded Faculty

2,838

2,609

2450

2500

2550

2600

2650

2700

2750

2800

2850

2900

2008 2010

3/21/2011 7

3/21/2011 8

4,178

3,621

3300

3400

3500

3600

3700

3800

3900

4000

4100

4200

4300

Fall 2008 Fall 2010

Net Decrease in Number of State/Tuition-Funded Staff

6,773

3,095

6,197

2,875

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Staff Faculty

Fall 2008

Fall 2010

Employee Reductions by Category: All Funds

3/21/2011 9

9.7

4.5

8.0

4.0

7.7

3.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Total staff Total faculty

FTE

Empl

oyee

s p

er 1

00 F

TE S

tude

nts

(Sta

te &

Loc

al fu

ndin

g So

urce

s)ASU FTE Employees per 100 FTE Students

State/Tuition and Local Funding (excludes Sponsored Sources)

Close of FY08

Start of FY10

Start of FY11

3/21/2011 10

Fewer Class Offerings

5600

5650

5700

5750

5800

5850

5900

5950

6000

Fall 2008 Fall 2009

Number of Sections

Reduction in class offerings provides fewer options for students.

3/21/2011 11

Increased Class Size

500

1000

1500

2000

2500

3000

<20 >50

Fall 2008

Fall 2009

3/21/2011 12

Academic Unit Reductions between Fall 2008 and Spring 2010

Academic Unit Level

Units Disestablished

UnitsEstablished Net Reduction

Colleges 9 3 6

Departments 47 15 32

TOTAL 56 18 38

Unit reductions allowed major cost savings through consolidation of administrative structures

3/21/2011 13

9.2%

Classified staff: 10 furlough days

Reduction in pay (Feb 09to June 09)

13.8%

Senior administrators: 15 furlough days

Reduction in pay (Feb 09to June 09)

11.1%

Faculty and professional staff: 12 furlough days

Reduction in pay (Feb 09 to June 09)

All employees were furloughed for 10 to 15 days in FY09. Paychecks were reduced by 9.2% to 13.8% for five months.

Total one-time savings was $25 million

Furloughs Imposed in FY09 to Avoid Mid-Semester Program Cuts

3/21/2011 14

3/21/2011 15

-$2,500,000

-$1,200,000

-$3,000,000

-$2,500,000

-$2,000,000

-$1,500,000

-$1,000,000

-$500,000

$0Network Data Services Energy Efficiency

Annual Administrative Cost SavingsFY08 vs. FY10

3/21/2011 16

-$200,000

-$606,000

-$130,000

-$200,000

-$500,000

-$155,000

-700,000

-600,000

-500,000

-400,000

-300,000

-200,000

-100,000

0

document management

procurement process

improvementselectronic purchasing

energy performance contracting

energy conservation

waste disposal, water

capture

Annual Administrative Cost SavingsFY08 vs. FY10

3/21/2011 17

$3,200,000

$4,000,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

Food Service Sports Marketing

Annual Administrative Revenue EnhancementsFY08 vs. FY10

ASU EFFICIENCY AND EFFECTIVENESS

3/21/2011 18

$57,778

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Tuition and State Appropriation Revenue per Degree GrantedAll Very High Research Public Universities (FY09)

Source: IPEDS Finance and Completions, AY2008-09.

Arizona State University

3/21/2011 19

$57,778

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Tuition and State Appropriation Revenue per Degree GrantedAll Very High Research Public Universities without Medical Schools (FY09)

Source: IPEDS Finance and Completions, AY2008-09.

Arizona State University

See Note

3/21/2011 20

Note: Texas also receives $165M annually from it “Permanent University Fund”- a state provided endowment. This has a value that would add $12,480 to it cost per degree.

3/21/2011 21

$46,

700

$56,

453

$56,

552

$57,

778

$58,

349

$61,

995

$63,

296

$64,

057

$64,

106

$65,

541

$66,

032

$67,

340

$70,

306

$70,

848

$71,

689

$72,

688

$74,

455

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Tuition and State Appropriation Revenue per Degrees AwardedResearch Universities with $14k to $17.5k per FTE Revenue

Source: IPEDS Finance and Completions, AY2008-09.

Note: Texas also receives $165M annually from it “Permanent University Fund”- a state provi endowment. This has a value that would add $12,480 to it cost per degree.* Universities with medical schools

3/21/2011 22

$15,335

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

Sout

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Poly

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Tuition and State Appropriation Revenue per FTE StudentAll Very High Research Public Universities (FY09)

Source: IPEDS Finance and Completions, AY2008-09.

Arizona State University

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

$16,000

$17,000

$18,000

$19,000

$20,000

Tuition and State Appropriation Revenue per FTE and Degrees AwardedVery High Research Public Universities with $14k to $17.5k per FTE Revenue (FY 09)

Tuition and State Appropriations per FTE Degrees AwardedSource: IPEDS Finance and Completions, AY2008-09.

3/21/2011 23

Increase in Student FTE per Faculty FTE

24.7

27.9

23.0

23.5

24.0

24.5

25.0

25.5

26.0

26.5

27.0

27.5

28.0

28.5

Fall 2008 Fall 2010

3/21/2011 24

$142

$185

$-

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Research Expenditures per Tenured/Tenure-Track Faculty (in 1,000s)

FY 2009

FY 2010

Faculty Research Productivity Increases

3/21/2011 25

Tempe Campus Lecture Halls Percent Full Compared to ABOR Guidelines

60%

71%

54%

56%

58%

60%

62%

64%

66%

68%

70%

72%

ABOR Guidelines % full ASU % full

3/21/2011 26

Tempe Lecture HallsHours Used per Week Compared to ABOR Guidelines

30

40

0

5

10

15

20

25

30

35

40

45

ABOR Guidelines hrs per week ASU hrs per week

3/21/2011 27

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Institutional support O&M

Arizona State University vs. PeersInstitutional Support and Operations & Maintenance Expenses

Per FTE Student (FY09)

Peers

ASU

3/21/2011 28

3/21/2011 29

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Executive/Admin/Prof Employees Service/Maintenance Employees

Arizona State University vs. PeersFull-Time Employees

Per 100 FTE Students (FY09)

Peers

ASU

EDUCATION & GENERAL FINANCIAL SITUATION

3/21/2011 30

15,668 15,668 15,668 15,668 15,668

15,668

14,960 14,992 15,016

14,433

14,567

14,029 13,990

13,096

13,000

13,500

14,000

14,500

15,000

15,500

16,000

FY08 Actual FY09 Actual FY10 Actual FY11 Budget FY12 Estimate

Arizona State UniversityEducation & General Expenditures per FTE (without financial aid)

FY08 to FY10 Actual/FY11 Budget/FY12 Estimate

Target: FY08 Baseline per FTE

Target: Baseline adjusted for agreed reductionsActual per FTE

3/21/2011 31

ASU INNOVATIONS

3/21/2011 32

9%9%

82%

2007 Cohort Status

46%47%

7%

2008 Cohort Status

Tracking Cohort Student ProgressCohorts are defined by the academic year that the student enters ASU as a full-time freshmen.

On Track

Off Track

On track by override

Completed

80%

13%7%

2009 Cohort Status

eAdvisor- Impact

90%

10%

2010 Cohort Status

77.2%

79.5%

81.2%

84.0%

72.0%

74.0%

76.0%

78.0%

80.0%

82.0%

84.0%

86.0%

Fall 2006 Fall 2007 Fall 2008 Fall 2009

Improvement in Freshmen Retention after Introduction of eAdvisor

3/21/2011 34

First Year Persistence and Six Year Graduation RatesFirst Time Freshmen

Entering Cohorts 1988 to 2020

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%19

88

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2001

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Firt

s Ye

ar P

ersi

sten

ce a

nd S

ix Y

ear

Gra

duat

ion

Rate

Firs

t Tim

e Fr

eshm

en

First Time Freshmen Entering Cohort

FTF 1st Year Persistence (actual) FTF 1st Year Persistence (modeled)FTF Six Year Graduation (actual) FTF Six Year Graduation (modeled)

First Year Persistence

Six Year Graduation

Silver goal is 88%

Silver goal is 70%

3/21/2011 35

$2,141,412

$1,039,216

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Old Model New Model

Faculty Cost of Teaching 9,225 Freshmen Math StudentsOld Model vs. New Model

3/21/2011 36

Faculty Cost of Teaching Freshman EnglishOld vs. New Model

$4,230,550

$3,383,800

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

Old Model New Model

3/21/2011 37

LOWER COST OPTIONS

3/21/2011 38

Cost of degree with traditional and accelerated calendar

$29,140

$21,855

$18,213

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

traditional 8 semester schedule 6 semester schedule 5 semester schedule

Calendar changes are effective Spring 2012 for face to face classes, in effect now for online.

3/21/2011 39

Proposed Lower Tuition for Lower Division Students in New College (West) and College of Technology and Innovation (Poly) if

Tuition and Fee Increases Approved

$7,285

$6,557

$6,000

$6,200

$6,400

$6,600

$6,800

$7,000

$7,200

$7,400

Other Colleges Lower Division Tuition New College and Technology & Innovation Lower Division Tuition

3/21/2011 40

Colleges@ASU: Lake Havasu City Possible Tuition$7,285

$6,000

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

ASU Tuition Possible Tuition in Lake Havasu City

3/21/2011 41

MAPP and TAG will Reduce Excess Transfer Hours and so Cost of Degree

• There are now MAPPs available in more than 90 majors, and as of January 2011, more than 3,600 students are enrolled in the MAPP program.

3/21/2011 42

SELF SUPPORTING PROGRAMS

3/21/2011 43

Plan for Self-Sufficiency for Sandra Day O’Connor College of Law

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

State Appropriation Support

3/21/2011 44

ENHANCED REVENUE

3/21/2011 45

State Appropriati

ons33%

Resident UG tuition

11%

All other sources

56%

FY2008 Prior to Recent State Budget

ReductionsState

Appropriations18%

Resident UG tuition

20%

All other sources

62%

FY2012Following New Proposed Reductions

State Appropriati

ons11%

Resident UG tuition

20%All other sources

69%

FY2020

Gross Revenue for All Activities

3/21/2011 46

PROGRAM ELIMINATIONS

3/21/2011 47

Arizona State UniversityPrograms Eliminations 2007 to 2011

Bachelor programs:

• 12 programs eliminated

• 2 programs pending elimination

• 2 programs to be eliminated

• 10 programs under review

• 17% of the total number of programs

Master’s programs:

• 5 programs eliminated

• 1 program pending elimination

• 19 programs to be eliminated

• 2 programs under review

• 20% of the total number of programs

Doctoral programs: • 1 program eliminated• 1 program pending elimination• 8 programs to be eliminated• 2 programs under review• 15% of the total number of programs

3/21/2011 48

ENROLLMENT CAPS

3/21/2011 49

Reduction in New Students in Engineering (if tuition proposal not approved)

1500

1100

0

200

400

600

800

1000

1200

1400

1600

Planned New Students in Engineering New Class if Enrollment Cap

3/21/2011 50

Reduction in Students in Nursing(if tuition proposal not approved)

360

180

00

50

100

150

200

250

300

350

400

Current Students in BSN 1st year after program elimination

2nd year after program elimination

3/21/2011 51

ACCESS AND FINANCIAL AID

3/21/2011 52

Average ASU In-State Tuition PaidAid Years 2007 through 2009

3/21/2011 53

-$4,239-$3,939

-$2,181

$320$619 $803

$1,831

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

$3,000

Family Income < $20,000 Avg

Income = $9,946 Number of Students = 2,816

(7.0% of total)

Family Income $20,000 - $34,999 Avg

Income = $27,559 Number of Students = 2,535

(6.3% of total)

Family Income $35,000 - $49,999 Avg Income =

$42,475 Number of Students = 2,454

(6.1% of total)

Family Income $50,000 -$64,999 Avg Income =

$57,191 Number of Students = 5,230

(13.0% of total)

Family Income $65,000 -$79,999 Avg Income =

$72,262 Number of Students = 5,633

(14.0% of total)

Family Income $80,000 -$119,999 Avg Income =

$98,323 Number of Students = 12,835

(31.9% of total)

Family Income >= $120,000 Avg

Income = $183,076 Number of Students = 8,731

(21.7% of total)

Net T

uitio

n Pa

id

Family Income

FY2011 EstimateNet Tuition Paid by Level of Family Income

Full Time Arizona Resident Undergraduate Students

* Based on Fall 10 results

3/21/2011 54

-$4,005-$3,672

-$1,728

$1,216$1,591 $1,803

$2,844

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

$3,000

$4,000

Family Income < $20,000 Family Income $20,000 - $34,999

Family Income $35,000 - $49,999

Family Income $50,000 - $64,999

Family Income $65,000 - $79,999

Family Income $80,000 - $119,999

Family Income >= $120,000

Net T

uitio

n Pa

id

Family Income

FY2012 ProjectionNet Tuition Paid by Level of Family Income

Full Time Arizona Resident Undergraduate Students

* Based on Fall 10 results. Assumes same distribution of familiy income as preliminary Fall 2010 results, and enrollment planning

ASSUMPTIONS• Based on tuition rate projections as of March 2011• Includes estimated use of American Opportunity Tax Credit• Distribution of family income in FY12 comparable to FY11• No change in Pell Grant award maximums• Students enroll and graduate at rates comparable to prior years• Enrollment planning targets are met• Net tuition paid by level of family income will reduce if 2012 merit expenditures are reduced

3/21/2011 55

$5,700

$1,069

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Arizona State UniversityStudent Indebtedness

Change in 4 Year Tuition Sticker Price vs. Change in Resident Indebtedness (2005-06 to 2009-10)

Total Change in 4 Year Tuition Charge Total Change in Debt on Graduation

3/21/2011 56

$19,142

$24,000

$0

$5,000

$10,000

$15,000

$20,000

$25,000

ASU Undergraduates National Undergraduates

Arizona State UniversityAverage Student Loan Indebtedness at Graduation

Class of 2009

3/21/2011. The Institute for College Access & Success October 2010 report: The Project on Student Debt: Student Debt and the Class of 2009

57

50.0%

55.0%

60.0%

65.0%

70.0%

2005-06 2006-07 2007-08 2008-09 2009-10

Arizona State UniversityStudent Indebtedness

% of Graduating Seniors with Student Loan Debt

ASU: All graduating seniors ASU: Graduating AZ residents only

National average in 2007-08 was 65.6%

X

3/21/2011 58

ASU Pell Grant Recipients: 9 Year Trend

143% increase over 9 years

9,23810,344

11,957 12,348 12,137 11,714 11,59713,334

18,454

22,487

0

5,000

10,000

15,000

20,000

25,000

Hea

dcou

nt

Aid Year

3/21/2011 59

Average Tuition Paid – Arizona Residents

2009-2010 academic year

Tuition and Mandatory Fees Number of Students % of Total Average Amount

$0 16,815 48% $0$1 - $499 1,724 5% $153$500 - $999 954 3% $789$1,000 - $1,499 883 3% $1,259$1,500 - $1,999 964 3% $1,830$2,000 - $2,499 521 1% $2,282$2,500 - $2,999 897 3% $2,756$3,000 - $3,499 467 1% $3,297$3,500 - $3,999 363 1% $3,719$4,000 - $4,499 223 1% $4,294$4,500 - $4,999 82 0% $4,792$5,000 - $5,499 70 0% $5,215$5,500 - $5,999 0 0% $0≥ $6,000 0 0% $0No Gift Aid 10,963 31% $5,997TOTAL 34,926

Average Tuition Paid $2,2313/21/2011 60

TUITION PROPOSAL FOR FY2012

3/21/2011 61

Arizona State UniversityFY2012 Tuition Proposal

• Two year tuition plan presented in March 2010 to replace stimulus funding in two steps in FY11 and FY12.

• FY11 component approved in April 2010 and overall plan endorsed by the Board at that time.

• ASU’s base proposal for FY12 remains as endorsed last year.

• Newly proposed state reductions require a supplemental increase to the endorsed base plan.

• ASU requests that only 40% ($31M of $78M) of the reduction proposed by the Governor be replaced by increased revenue.

• Average of an additional $450 for most undergraduates in base tuition.

• Differential tuition or program fees established, increased, or extended to freshman and sophomores in undergraduate programs.

3/21/2011 62

Effect on Freshmen Class Size of Differential Tuition in Engineering

939

1,157

0

200

400

600

800

1,000

1,200

1,400

Before Fee (2009) After Fee (2010)

Number of First Time Freshmen

3/21/2011 63

Effect of Differential Tuition on Freshmen Class Composition and Yield in Engineering

23%

28%

43%

25%

32%

46%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Underrepresented Minorities

Pell Eligible Admitted to Enrolled

Before Fee (2009)

After Fee (2010)

3/21/2011 64

The End

3/21/2011 65