University of Minnesota Overview President Eric W University of Minnesota Overview President Eric W. Kaler Senate Higher Education & Workforce Development Committee January 15, 2013

Mission The University of Minnesota, founded in the belief that all people are enriched by understanding, is dedicated to the advancement of learning and the search for truth; to the sharing of this knowledge through education for a diverse community; and to the application of this knowledge to benefit the people of the state, the nation, and the world.

Statewide Impact

Accountability and Performance Exceeded five accountability goals established by the Legislature in 2010 to increase: Institutionally-provided financial aid to students Degrees awarded Twin Cities campus undergraduate graduation rates Research and development expenditures Sponsored expenditures funded by business and industry Annual Plan, Performance and Accountability report

Economic Impact The U generates $8.6 billion a year in economic impact Every state dollar invested in the U generates $13.20 in Minnesota’s economy The U supports 70,000 jobs statewide U alumni have founded nearly 10,000 companies in Minnesota Of these company founders, 2,300 first moved to Minnesota to attend the U

University R&D Expenditures as Reported by NSF Over $1.5 billion in research funding in the last two years

Increased Enrollment

Improving Graduation Rates Four-year graduation rates have doubled since 1999 as students take advantage of free tuition for credits over 13 in a semester

Attracting Talent: Leading ACT Scores

Better Students Average ACT composite and high school rank of freshmen, TC campus

Improving Retention and Graduation Rates By entry year, TC campus * F2010 rate is preliminary

Increasing Diversity Percentage students of color 2000-2010, TC campus

High Achieving Minnesota Students of Color Choose the U 2010 percentage of students of color among HS graduates, ACT takers, and U of M freshmen from Minnesota

Increasing Undergraduate Financial Aid In FY2010, financial aid to undergraduate students across all five campuses = $490 million With financial aid, the University’s “net price” for families is very competitive nationally (rank 1 = most expensive) Family income (AGI*) U of M rank on net price $0 - $30k 41 of 72 schools $30k - $48k 54 of 72 schools $48k - $75k 53 of 72 schools $75k - $110k 33 of 72 schools $110k + 27 of 72 schools *Adjusted Gross Income from federal tax forms .

Shift in University Revenues

MN reductions significantly deeper than national average Minnesota Higher Education Funding State Higher Education Appropriations Per Public FTE MN reductions significantly deeper than national average -23% -48% Source: 2012 State Higher Education Executive Officers(SHEEO) – State Higher Education Finance FY2011

Administrative Costs and Operational Excellence

IPEDS Data: Significant variability “Executive/Administrative and Managerial” reporting LINC I pulled some historical IPEDS data for a random set of research universities UM – Twin Cities data is in the red box. First, I’ll note that there was an IPEDS definitional change in the middle part of the decade, and as we implemented that change you can see what happened to our counts in this category between 2006 and 2007. We did NOT add 1400 executives in one year I assure you. Instead, given the definitional changes, we added job codes to this category that were not there before. When we think about measurement, we worry about validity – that is are truly we measuring what we intend to measure and reliability – that is are we consistently measuring the same thing when we replicate the test or study. I would contend that these data fail on both counts. Given that the size and structure of research schools are not radically different, it is hard to imagine that we have a valid measure of this employee category when the results vary by a factor of 5. More damning is the reliability of this measure. Wisconsin, Michigan, Berkely, Johns Hopkins Good news-bad news Next year IPEDS will again change their HR definitions to be more in line with the Bureau of Labor Services, so we will have another chance for additional confusion

IPEDS Data: Significant variability “Other professionals (support services)” reporting LINC I pulled some historical IPEDS data for a random set of research universities UM – Twin Cities data is in the red box. First, I’ll note that there was an IPEDS definitional change in the middle part of the decade, and as we implemented that change you can see what happened to our counts in this category between 2006 and 2007. We did NOT add 1400 executives in one year I assure you. Instead, given the definitional changes, we added job codes to this category that were not there before. When we think about measurement, we worry about validity – that is are truly we measuring what we intend to measure and reliability – that is are we consistently measuring the same thing when we replicate the test or study. I would contend that these data fail on both counts. Given that the size and structure of research schools are not radically different, it is hard to imagine that we have a valid measure of this employee category when the results vary by a factor of 5. More damning is the reliability of this measure. Wisconsin, Michigan, Berkely, Johns Hopkins Good news-bad news Next year IPEDS will again change their HR definitions to be more in line with the Bureau of Labor Services, so we will have another chance for additional confusion

1,000 Administrators? File used by WSJ included 354 miscoded faculty (our fault) Of the remaining 646 employees, more than half--53%--are NOT supported by state or tuition funds The remaining 343 employees—those paid with state and tuition funds—are professionals who provide critical research and student support services. Jobs include: Coordinators in the Clinical Trials Research Office Coordinators in the Office of Disability Services Classroom technology professionals Study Abroad advisors Program director for the Human Rights Institute Coordinators for MINITEX (state library system)

Employee Headcount Relatively Flat 3.6% total headcount growth over 10 years 24,424 25,307 25,166

Students per Employee Up 10.9% FY02-FY11

Degrees per Employee Up 28.2% FY02-FY11

Sponsored Dollars Expended per Employee Up 41.6% FY02-FY10

Reducing Costs We are reforming how we do business and have stopped doing some things. For example: Saved $16.8 million by modernizing our purchasing procedures Saved $5.6 million in energy Saved $2.2 million by closing two major administrative offices and eliminating a senior vice president position Saved $130,000 annually by consolidating libraries on our St. Paul campus Required our key operations to create dotted-line accountability structure Pioneered Google apps, valued at more than $15 million a year We’re closing nine percent of our 241 centers and institutes We completed an external review of our Academic Health Center and are launching a strategic planning process in the Medical School We partnered with the Board of Regents and adopted new executive compensation policies and oversight At UMore Park, we're holding the line on expenses while generating new revenue

Next Steps Launching spans and layers analysis Engaging external consultant Benchmark nationally Make changes in areas in which its needed Collaborating through Itasca project Continue to invest in excellence

Case Study: Spans and Layers in U Libraries   Before organization changes After organization changes Number of staff supervised Number of supervisors Number of employees 1 20 10 2 12 24 6 3 4 11 44 7 28 5 9 45 36 21 35 8 16 32 18 Total 72 274 56 263

In Closing—What’s at Stake? A vibrant public research University is critical to the future of Minnesota Workforce development Cures and treatments Attracting talent Attracting external funding that generates significant ROI Creating jobs Research and innovation The state can make no better investment in its future than one in the University

Questions/Discussion