Administrative Leadership Meeting Wednesday, March 16, 2016

* Q&A available immediately following the presentation Today’s Agenda: Welcome & Overview of responses from February meeting Don Loppnow, Interim President *“Enrollment 101” Kevin Kucera, Associate Vice President for Enrollment Management *FY16 Budget Update Mike Valdes, Chief Financial Officer Table Discussion, survey sheets, and Open Q&A Closing Remarks DON’S INTRODUCTORY COMMENTS: Received outstanding feedback from employees on the surveys we distributed at the last meeting A list of every response to the questions from the February meeting will be posted online after this meeting. A copy of those responses is at each table – only one copy to save paper because it’s more than 40 pages in length! Today, we will begin with a brief overview of your responses After that, Kevin Kucera will provide a brief overview of enrollment trends and plans – this was a popular request in the survey responses After that, Mike Valdes will provide an update about the current year’s budget Q&A available after each presentation A few copies of today’s presentations are available at your table in case you can’t see the screens, and today’s presentation will be posted online later today. We also posted February’s presentation online. We’ll close with table discussion, another (much shorter) survey, and final Q&A * Q&A available immediately following the presentation

1. Overview of responses from February meeting * Q&A available immediately following the presentation

Q1. What are your three (or more) most pressing questions that you would like to have answered about the University? Themes Count Budget: revenue shortfalls, expenses, capital, strategies for addressing challenges, etc. 45 Having clear future directions / priorities 34 Institutional stability, morale, efficiency, transparency, accountability/diversity 33 Athletics: Cost / Benefit analysis 27 Enrollment: questions re: enrollment changes, etc. 23 Student recruitment & EMU branding (internationally and locally) 22 Academic programs / innovation / revitalization / sustainability 19 Themes Count Capital: Campus & Building Renovations / Capital improvement 17 Student success (retention, completion) 16 Alumni / community involvement / fundraising 13 Communication & Collaboration: build strategic partnerships, etc. 9 Employees: Keep / promote / train skilled leaders / employees 8 Employees: Compensation and benefits 6 Faculty involvement / participation 3 EXAMPLES: Category: “Budget” -- “How are we going to get past our budget shortfalls?” -- “Can we borrow more to improve our buildings?” -- “How do other universities grow their reserve funds?” -- “Why do we continuously budget at unrealistic levels?” Category: “Having clear future directions / priorities” -- “Future plan of the graduate school?” -- “What are EMU’s priorities for the next five years?”  Our goal is to answer as many of these questions as we can in the coming months through these meetings, new email communications, etc. March 16, 2016

Q2. Identify the three (or more) most important areas where we need to improve in educating and serving our students. Themes Count Student success & engagement (all service and academic departments) 44 Academic program quality and revitalization (graduate, GenED, research and scholarship, specific colleges, etc.) 31 Advising & Career Services 28 Facilities (parking, housing, classrooms, bathrooms, etc.) 26 EMU recruitment and branding (expand recruiting efforts, international, etc.) 25 Alumni / community presence & partnerships (recruit, fundraise, etc.) 23 Themes Count Launch more innovative, & sustainable programs (health sciences, STEM, etc.) 20 Institutional efficiency / customer service Communication & collaboration 19 Technology support (current equipment, accessible IT staff, etc.) 15 Tuition pricing / financial aid / scholarships Use data-driven decision-making and planning 10 Safety & security 7 Re-assess the value of athletic programs 5 EXAMPLES: Category: “Student success & engagement (all service and academic departments)” -- “Retention and graduation rates need to be addressed at the academic program level.” -- “We need to be less rigid about rules to satisfy graduation requirements – specifically, allow students to double count courses for double majors…” -- “Retention of the students should be a huge campaign. Once we get them, we have to keep them.” Category: “Academic program quality & revitalization” -- “New majors like neuroscience need funding. These are the future strengths…” -- “Rebuilding the reputation of the COE as we end the relationship with EAA” Category: “Advising & Career Services” -- “Need to continue improving advising and helping students keep on track” -- “Advising within departments – faculty need to become willing to advise in GenEd” -- “Develop pathways for students” March 16, 2016

Q3. What are the three (or more) most important actions that need to be taken to become a more effective Administration? Themes Count Improve communication (share important information, give / receive feedback, etc.) 78 Greater collaboration 34 Training (leadership, decision making, respect, accountability, shared vision, etc.) 27 Build trust and transparency Realistic budgeting 24 Maintaining & recognizing quality staff and faculty (compensation & benefits) 19 Consistent policies, processes and procedures 10 Themes Count Effective and positive branding 10 Improve engagement by regents and Faculty Senate 9 Focus on student success (retention, innovative programs, etc.) 8 Increase data driven practices (e.g., set up enrollment goals) 7 Revamp HR & IT systems (Concur, Banner, etc.) 6 Reconsider role of athletics (funding, etc.) 5 Maintaining facilities 3 EXAMPLES: Category: “Improve communication” -- “Maintain open lines of communication (today’s AP meeting is a good example)” -- “Transparency” Category: “Greater collaboration” -- “Advocate inter-department collaborations” -- “More collaboration between different units” (e.g., faculty and admin)” Category: “Better training” -- “Train us on AAUP contract” -- “Coaching and training for new administrators” -- “More training available with regard to admin processes and/or Banner or other software” -- “Put VPs and Directors at front desks occasionally” March 16, 2016

Q4. What are three (or more) actions we can take that would make our communications with you more effective? Themes Count Regular leadership meetings at / with different levels 73 Improve transparency (decision-making, budget, etc.) 24 Provide regular short briefings / updates to address specific issues and share ideas 22 Themes Count More opportunities to collaborate / share strategies 15 Distribute, explain, and discuss institutional data, particularly in areas of budget, enrollment, spending, etc. 14 Use different means of communication (social media, etc.) 9 EXAMPLES: Category: “Regular leadership meetings at / with different levels” -- “All AP meetings” -- “These meetings so we have information and input” -- “Q&A with an executive similar to Carl Powell’s coffee sessions at Halle” -- “Presidents Town Hall meetings” Category: “Improve transparency” -- “Make processes for communicating re: resources transparent” -- “Better internal communication – online news, not just the Eastern email daily”; “A better designed employee / staff communication (EMU Today)”; “Re-Do EMU Today Portal” -- “Explain the why’s of why decisions are made – not just communicating the decision” -- “Respond to our emails – even if it’s just ‘thanks’” Category: “Provide regular short briefings / updates to address specific issues and share ideas” -- “Let us know personnel actions: hirings, departures” March 16, 2016

Q5. What are our “Points of Pride” Q5. What are our “Points of Pride”? What positive accomplishments should we promote? Themes Count High quality programs / education 70 Campus “feel” (location, layout, size, beauty, family-type atmosphere, and safe campus) 56 Diversity 39 Strong community connections 16 Themes Count Affordability / scholarship opportunities 15 History / reputation / branding / Carnegie reclassification 12 Successful alumni 10 EXAMPLES: Category: “High quality programs / education” -- “Educating MI’s ‘sale of the earth’”; “blue collar” -- “PA program” -- “Student-faculty ratio – small class size”; “Teacher/faculty ratio” Category: “Campus ‘feel’” -- “Beautiful campus” March 16, 2016

Want to learn more? http://irim.emich.edu/AP_Comments.php? Documents available online include: Every response (unedited) to the February survey questions February 2016 powerpoint presentation March 2016 powerpoint presentation (uploaded later this week) VERBAL COMMENTS: As promised, every written response to the February survey is posted online at this website – 76 pages of material! We’ve also uploaded last month’s powerpoint presentation Later this week, we will upload today’s presentation Next up: Kevin Kucera will walk us through Enrollment March 16, 2016

* Q&A available immediately following the presentation 2. “Enrollment 101” DON’S INTRODUCTORY COMMENTS: Received outstanding feedback from employees on the surveys we distributed at the last meeting Today, we will begin with a brief overview of your responses After that, Kevin Kucera will provide a brief overview of enrollment trends and plans – this was a popular request in the survey responses After that, Mike Valdes will provide an update about the current year’s budget Q&A available after each presentation We’ll close with table discussion, another (much shorter) survey, and final Q&A * Q&A available immediately following the presentation

FALL 2015 - FTIAC Applications Admitted Students Enrolled Students Yield 14,064 10,467 2,856 27.3% March 16, 2016

ENROLLED FRESHMAN FOR EMU & TOP COMPETITORS College Fall 2011 Fall 2015 2011 vs. 2015 % Increase Market Share 2011 Market Share 2015 EMU 2,130 2,856 726 34.1% 6.7% 8.7% CMU 3,838 3,443 -395 -10.3% 12.0% 10.5% GVSU 3,927 4,155 228 5.8% 12.3% 12.7% MSU 7,782 7,929 147 1.9% 24.3% 24.2% OU 2,361 2,716 355 15.0% 7.4% 8.3% UM-AA 6,251 6,071 -180 -2.9% 19.5% 18.5% WMU 3,301 3,009 -292 -8.8% 10.3% 9.2% WSU 2,416 2,562 146 6.0% 7.5% 7.8% March 16, 2016

FRESHMAN PROFILE – 2011 vs. 2015 Enrolled Freshmen Fall 2011 Fall 2015 ACT 21.06 22.10 1.04 GPA 3.12 3.27 0.15 Pell % 49.9% 47.7% -2.2% African-American 535 728 193 Hispanic 66 176 110 March 16, 2016

FRESHMAN PROFILE - FALL 2015 TOP MAJORS (Based on Enrollment) 1. Undeclared 2. Nursing Intent 3. Psychology 4. Criminology/Criminal Justice 5. Business Administration 6. Pre-Med/Osteopathy 7. Biology 8. Liberal Arts Elementary Teaching 9. Pre-OT 10. Mechanical Engineering Tech. BY COLLEGE March 16, 2016

FRESHMAN PROFILE - FALL 2015 TOP FEEDER HIGH SCHOOLS Huron High School (83) Lincoln High School (51) Canton High School (46) Southgate-Anderson High School (42) John Glenn High School (41) Saline High School (41) Belleville High School (40) Plymouth High School (38) Brighton High School (43) John F. Kennedy High School (33) BY COUNTY March 16, 2016

FTIAC STUDENT ENROLLMENT Cohort Students Credit Hours Gross Tuition & Fee Revenue Financial Aid Net Revenue Fall 2010 1,984 53,588 $16,773,044 $5,570,355 $11,202,689 Fall 2011 2,118 60,744 $19,262,421 $7,174,481 $12,087,940 Fall 2012 2,595 75,228 $24,483,334 $10,079,128 $14,404,206 Fall 2013 2,872 83,150 $28,039,601 $11,049,425 $16,990,176 Fall 2014 2,553 74,011 $25,998,456 $10,862,370 $15,136,086 Fall 2015 2,855 83,777 $31,198,599 $14,805,293 $16,393,306 March 16, 2016

CHANGE IN STUDENT MIX FULL-TIME STUDENTS Headcount Credit Hours Fiscal 2012 (entered prior to Fall 2006) 1,246 21,505 Fiscal 2013 (entered prior to Fall 2007) 1,160 19,904 Fiscal 2014 (entered prior to Fall 2008) 574 9,051 Fiscal 2015 (entered prior to Fall 2009) 429 6,764 Fiscal 2016 (entered prior to Fall 2010) 374 5,897 Term Total SCH Summer 2011 69,890 Summer 2012 63,402 Summer 2013 58,158 Summer 2014 52,188 Summer 2015 47,571 PART-TIME STUDENTS Headcount Credit Hours Fiscal Year 2013 6,400 81,000 Fiscal Year 2016 4,200 56,000 March 16, 2016

TRANSFER STUDENT ENROLLMENTS   Fall 2012 Fall 2013 Fall 2014 Fall 2015 Change % Change TOTAL 2,094 1,949 1,769 1,537 -557 -26.6% College of Arts and Sciences 635 633 588 498 -137 -21.6% College of Business 291 285 265 276 -15 -5.2% College of Education 262 215 170 156 -106 -40.5% College of Health & Human Serv. 518 497 450 377 -141 -27.2% College of Technology 208 191 221 143 -65 -31.3% March 16, 2016

MICHIGAN COMMUNITY COLLEGE ENROLLMENT TRENDS   2010 2011 2012 2013 2014 % Change 2010-2014 Henry Ford CC 18,525 17,650 17,338 13,836 13,790 -34% Jackson College 7,870 6,988 6,328 5,665 5,487 -43% Lansing CC 21,969 20,640 19,082 17,562 16,031 -37% Macomb CC 24,468 23,969 23,729 23,446 22,914 -7% Monroe County CC 4,723 4,440 4,071 3,777 3,482 -36% Oakland CC 28,925 29,158 27,296 26,405 24,031 -20% Schoolcraft College 13,579 12,770 12,522 12,385 11,542 -18% Washtenaw CC 14,189 12,932 12,476 12,327 12,295 -15% Wayne County CC District 21,198 20,440 18,176 18,119 16,310 -30% March 16, 2016

MICHIGAN PUBLIC UNIVERSITY ENROLLMENT TRENDS   2010 2011 2012 2013 2014 % Change 2010-2014 Central Michigan University 28,292 28,194 27,626 26,841 26,879 -5% Eastern Michigan University 23,565 23,419 23,518 23,447 22,401 Grand Valley State University 24,541 24,662 24,654 24,477 25,094 2% Oakland University 19,053 19,379 19,740 20,169 20,519 7% University of Mich.-Dearborn 8,599 8,664 8,790 8,748 8,923 4% Wayne State University 31,505 30,765 28,938 27,897 27,578 -14% Western Michigan University 25,045 25,086 24,598 24,294 23,914 March 16, 2016

NEW ACCELERATED ONLINE PROGRAMS – RN2BSN March 16, 2016

* Q&A available immediately following the presentation 3. FY16 Budget Update DON’S INTRODUCTORY COMMENTS: Received outstanding feedback from employees on the surveys we distributed at the last meeting Today, we will begin with a brief overview of your responses After that, Kevin Kucera will provide a brief overview of enrollment trends and plans – this was a popular request in the survey responses After that, Mike Valdes will provide an update about the current year’s budget Q&A available after each presentation We’ll close with table discussion, another (much shorter) survey, and final Q&A * Q&A available immediately following the presentation

Overview Recent financial results put University in challenging financial position. University expenses have generally been kept within Budget. Unfortunately, revenue growth has been challenging, and revenue budgets have not been accurately estimated to reflect the challenges. Need to improve financial position. March 16, 2016

State Support vs. Tuition (Gross) March 16, 2016

State Support vs. Tuition (Gross) March 16, 2016

Student Credit Hours Trend (2009-2017) (in 000’s) * Forecast March 16, 2016

SCH Budget vs. Actual March 16, 2016

FY16 Revenue (Budget vs. Actual) FY16 Budget Projected (as of 2/29/16) vs. Budget Tuition and Fees $ 229,300,000 $ 225,800,000 $ (3,500,000) State Appropriations $ 72,700,000 $ 72,700,000 $ - Investment Income $ 1,500,000 $ - $ (1,500,000) Other Revenue $ 8,500,000 $ 8,200,000 $ (300,000) $ 312,000,000 $ 306,700,000 $ (5,300,000) March 16, 2016

Expense Management Trends ($ in millions) FY-13 FY-14 FY-15 FY-16 CAGR Total Personnel Costs 197.5 198.1 196.6 196.5 -0.2% Financial Aid 35.4 39.2 43.8 48.5 11.1% Supplies, Services, & Maintenance 36.3 35.5 36.1 38.2 1.7% Utilities 5.2 5.5 4.9 -2.0% Debt Service/Asset Preservation 14.9 16.3 3.0% Foundation Support 1.8 1.6 -3.9% Other (Contingency) 0.9 1.7 4.1 5.7 85.0% Total Expenditures 292.0 296.4 304.0 311.7 2.2%   Expenditures w/o Financial Aid 256.60 257.20 260.20 263.20 0.9% % Increase Y-O-Y 0.2% 1.2% March 16, 2016

Operating Surplus (Deficit) History*: *Annual surplus/(deficit) adjusted for investment income, gain/loss on derivative valuations and capital appropriations March 16, 2016

Auxiliary Surplus/Deficit   FY14 Actual FY15 Actual FY 16 Budget Revenue Expenses Net ACC 361,475 (562,964) (201,489) 853,982 (1,150,015) (296,033) 1,350,000 (1,300,603) 49,397 Children's Institute 608,330 (1,081,143) (472,813) 606,131 (1,029,031) (422,900) 590,000 (1,370,797) (780,797) Convo/Pease 697,167 (1,688,205) (991,038) 589,556 (1,618,130) (1,028,574) 632,949 (1,487,819) (854,870) Dining 18,115,559 (17,102,021) 1,013,538 17,987,974 (17,153,940) 834,034 17,944,843 (17,147,270) 797,573 Eagle Crest 1,831,658 (1,831,658) - 1,846,244 (1,702,889) 143,355 1,794,626 (1,794,626) Echo 164,433 (709,650) (545,217) 172,653 (407,373) (234,720) 190,000 (331,867) (141,867) Housing/Apts 17,993,389 (16,388,202) 1,605,187 17,687,646 (15,414,489) 2,273,157 18,792,923 (15,988,073) 2,804,850 Parking 3,513,578 (2,498,750) 1,014,828 3,459,957 (2,236,269) 1,223,688 4,471,723 (2,551,152) 1,920,571 Practice Facility 350,728 (301,327) 49,401 312,141 (303,076) 9,065 315,816 (280,870) 34,946 Rec/IM 586,433 (1,965,475) (1,379,042) 642,994 (2,215,852) (1,572,858) 610,000 (2,170,662) (1,560,662) Student Center 1,147,829 (2,017,798) (869,969) 1,198,492 (2,190,128) (991,636) 1,070,000 (2,174,300) (1,104,300) Univ Health Services 1,030,532 (2,104,807) (1,074,275) 1,156,898 (2,101,969) (945,071) 1,100,000 (2,194,330) (1,094,330) 46,401,111 (48,252,000) (1,850,889) 46,514,668 (47,523,161) (1,008,493) 48,862,880 (48,792,369) 70,511 March 16, 2016

EMU Reserve Trends ($ in millions) March 16, 2016

Strategies to Address Projected FY16 Deficit Multiple Budget Meetings with EC on controlling costs for FY16 Preliminary Development of FY17 Expense Budget Implemented changes to: FF&E expenditures Travel Pause to all but “Mission Critical” hiring March 16, 2016

Questions? DON’S COMMENTS: We take your written feedback seriously. As I mentioned earlier, we are still digesting them, have provided some copies at tables, and will post every response online at the website. We’ll also post today’s presentation online. Now we want more feedback from you! Please take a few minutes to provide your thoughts on some of the topics we discussed today about revenues and expenses, and solutions to help address these challenges. Feel free to chat with your table-mates. In a few minutes, we’ll open it up for Q&A on any topic.