The Citadel Foundation Volunteers Conference The Citadel’s Financial Update The Citadel Foundation Volunteers Conference Colonel Sue Mitchell, CPA, MBA Vice President of Finance and Business Affairs March 13, 2010

Overview Successes at The Citadel Current funding picture How you can help

We’re #1 in the U.S. News and World Report No. 1 best value among master’s degree-granting colleges in the South No. 2 best public master's degree-granting institution in the South No. 5 among all master's degree-granting colleges and universities in the South No. 26 undergraduate engineering program (34 last year)

The Citadel 4-year Graduation Rate Tops SC Represents efficiency and effectiveness by maximizing value to students and parents.

The Citadel is priced competitively Ref: Commission on Higher Education Analysis of Tuition & Required Fees for Full-time Undergraduate and Graduate Students, AY 09-10

State Appropriations History SC Higher Education appropriation per capita for FY09 is 42nd in the nation* *Per The Center for the Study of Education Policy at Illinois State Percent State Appropriations of Budget

State Funding Doesn’t Last Very Long… With our FY10 $88M expense budget, State appropriations (with stimulus) only cover us for 56 days! Till Aug 25th Projected FY11 with cuts = 47 days! Till Aug 16th Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

*Per The Center for the Study of Education Policy at Illinois State State Funding % Changes* * Over last 10 years: SC = + 6.2% lowest in the Nation+ Avg. = +48.5% + Prior to FY11 proposed 21% cut *Per The Center for the Study of Education Policy at Illinois State

State Appropriations* The Citadel’s State Appropriations* Base state appropriation $16,287,740 FY08/09 Reductions ($3,940,592) FY 09/10 Reductions (so far) ($1,090,924) Total reduction ($5,031,516) Revised state appropriation $11,256,224 Total percent reduction taken 30.89% FY10/11 HW&M “proposal” $ 8,892,417 Add’l cut = 21.00% ($2,363,807) Possible 3-yr cuts ($7,395,323) 45.4% * Without one-time stimulus funds. 8 8 8

FY09 & FY10 Budget Reductions

State Appropriation Cuts Demanded Painful Decisions in FY10 Enacted 10 reductions-in-force Have not filled 71 positions currently vacant Established a six-month hiring freeze Cut adjunct budget by 25% Increased student/faculty ratio Decreased course sections by 3% Delayed implementation of strategic plan initiatives

Debt Service Repayment Timeline

A New Fiscal Environment Operate more like a business Improve efficiencies Enhance revenues Be entrepreneurial Maximize auxiliary revenue Increase Citadel Graduate College enrollment Build new relationships Boeing SPAWAR SCANA

Steps We Are Taking Closed non-profitable print shop Laundry operations under new management Combined buying power with other universities Savings = over $200,000 Auxiliaries adding new profitable services Monogramming, laser engraved name tags Exploring business partnering & outsourcing options Launching campus One-Card (purchasing convenience)

Foundation Fund Balances Total $252.2M $8.4M Total $193.6M $7.3M Millions $173.9M $130.5M $69.9M $55.8M Total Reduction in FY08/09 = $58.6M Potential for student scholarship impact

How You Can Help Set the Example Understand our Needs Unrestricted Gifts Blueprint Strategic Initiatives Tell our Story

Thank You! Your contributions preserve our traditions and build the legacy for The Principled Leaders of the Next Generation!

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