REMARKS TO THE SPRING FACULTY CONFERENCE 2012

Dr. Thayne McCulloh, PresidentSeptember 17, 2012

Faculty Salaries16%

Non-Faculty Salaries

18%

Benefits10%

Financial Aid28%

Operating14%

Utilities2% Capital

2%

Reserves & Con-tingencies

2%Debt Service

5%

ZagShop/ Dining4%

Expense CategoryFY'11/12 Budget

(000's)Faculty Salaries 37,210$ Non-Faculty Salaries 41,939 Benefits 23,250 Financial Aid 66,650 Operating 32,105 Utilities 4,112 Capital 4,581 Reserves & Contingencies 3,947 Debt Service 10,901 ZagShop/ Dining 10,162 Total 234,857$ Salaries & Benefits total 44%

Fiscal Year ‘11/12 Operating Budget Composition

Should the freshman entering class remain stable for the next 4 years, we face major budget challenges in FY’14 as the “bubble” class graduates.

FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16-$6,000

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Pattern of Gross Tuition Revenue Increases (full time undergraduate on campus)

Tuition RateEnrollmentTotal Increase

Future Years EstimatedHistorical & Current Year Projected

NO change in number of entering freshman and 4.5% annual tuition increases

Scenario 1

With an additional 45 freshman next year and 15 the subsequent year, FY’14 headcount approximates our current headcount of 4,528 and FY’14 revenue improves $3.5M compared to Scenario 1.

FY'09 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16-$6,000

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Pattern of Gross Tuition Revenue Increases (full time undergraduate on campus)

Tuition RateEnrollmentTotal Increase

Future Years EstimatedHistorical & Current Year Projected

Freshman changes noted below, 4.5% annual tu-ition increases

Scenario 2

Sample Illustration, Parking Structure(Hamilton & Boone)

FOUR REQUESTS FOR THE NEW YEAR

1. A COMMITMENT FIRST AND FOREMOST TO THE EDUCATION AND WELFARE OF OUR STUDENTS; EVALUATING WHAT WE DO THROUGH THE LENS OF WHAT OUR STUDENTS ARE LEARNING;

2. A COMMITMENT TO WORK HARD AT COMMUNICATION

3. A WILLINGNESS TO SUPPORT CREATIVE AND INNOVATIVE WAYS OF TEACHING AND LEARNING; AND

4. A RECOGNITION THAT OUR FUTURE INVOLVES ALL OF US: AND WILL REQUIRE ENERGY AND TIME FROM EACH OF US.