General Faculty Meeting August 23, 2018

FY19 Budget Information

Historical Tuition % Change 8.0% average increase previous 15 years 1.7% average increase over the last 5 years 16.0% 15.0% 14.0% 14.0% 12.5% 12.0% 10.3% 10.0% 8.2% 8.0% 7.0% 6.5% 6.1% 7.6% 7.0% 6.0% 6.0% 5.0% 3.7% 4.0% 2.6% 4.1% 2.0% 2.3% 0.0% 0.0% 0.0% 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

FY18 Tennessee Tuition and Fees Comparisons Summary of Tuition and Mandatory Fees Compared to Peers, AY 2017-18 Resident Undergrad Annual Tuition & Fees Peer Annual Tuition & Fees +/- % TN Rank Peer Max Peer Min APSU $8,225 $8,290 -0.80% 7 $10,100 $5,775 ETSU $9,015 $7,940 13.50% 5 $10,182 MTSU $8,948 $8,512 5.10% $11,864 $6,193 TSU $7,776 $8,382 -7.20% 8 $10,740 TTU $8,873 $7,685 15.50% 4 $10,280 UM $9,701 $10,208 -5.00% $13,624 $6,410 UTC $8,664 $7,402 17.00% 3 $9,891 UTK $12,970 $10,895 19.10% $16,076 $6,380 UTM $8,927 $9,442 -5.50% $15,400 $7,091 Source of date: THEC TN Rank: Institutions between 7 and 8 are more affordable compared to their peers. University of Memphis FY2017 recruiting peer average fee is $9,683.

FY19 Funding Peers In-State University Funding Peers Tuition and Fees University of South Florida 6,466 Florida International University 6,558 University of Arkansas, Fayetteville 9,129 Texas Tech University 9,408 University of Memphis 9,701 Georgia State University 10,858 University of Houston - University Park 11,493 University of Louisville 11,826 University of Oklahoma Norman Campus 12,346 University of Alabama 12,380 George Mason University 12,462 University of South Carolina - Columbia 12,870 Virginia Commonwealth University 14,490

FY19 Funding Peers Out-of-State University Funding Peers Tuition and Fees University of South Florida 17,324 Florida International University 18,956 University of Memphis 21,413 Texas Tech University 23,358 University of Arkansas, Fayetteville 25,167 University of Oklahoma Norman Campus 26,693 University of Houston - University Park 26,943 University of Louisville 27,450 Georgia State University 29,432 University of Alabama 30,830 University of South Carolina - Columbia 33,552 Virginia Commonwealth University 35,798 George Mason University 35,922

LGI’s 2018-19 UG Tuition % Increase 3.5% 3.0% 2.8% 2.9% 2.6% 0.0% 2.7% 2.7% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% UofM TSU TTU ETSU MTSU APSU

Undergraduate Maintenance & Mandatory Fees UofM In State Rate Comparison to Tennessee Peers FY19 Fall 2018 - Spring 2019 Undergraduate Maintenance & Mandatory Fees $14,000 13,006 $12,000 $10,000 9,512 9,701 9,103 9,206 9,277 9,406 8,471 8,664 8,008 $8,000 $6,000 $4,000 $2,000 $0 TSU APSU TSU - Tennessee State University APSU - Austin Peay State University UTC - University of Tennessee-Chattanooga TTU - Tennessee Tech University UTC TTU MTSU ETSU MTSU - Middle Tennessee State University ETSU - East Tennessee State University Peer Avg - Peer Average UTM - University of Tennessee-Martin Peer Avg UTM UofM UTK UofM - University of Memphis UTK - University of Tennessee-Knoxville Source of data: August 2018 from universities’ websites

Total Unrestricted and Restricted Revenues FY2018 – 2019 July Budget Total Unrestricted and Restricted Revenues Total Unrestricted and Restricted Revenues Tuition and Fees $ 201.4 State Appropriations 119.6 Grants and Contracts 131.9 Sales & Services / Other 36.7 Auxiliaries 26.5 Total Revenue $ 516.1 State Appropriations 23% Tuition and Fees 39% Grants and Contracts 26% Sales & Services / Other 7% Auxiliaries 5%

Budget Comparison to other Locally Governed Institutions (LGI’s) UofM MTSU ETSU TTU TSU APSU 2018-19 Fiscal Year

Fundraising Total Raised Past 5 Years: $157.1M 2014 2015 2016 2017 2018 Total Academic $ 11,369,689 $ 21,080,174 $ 20,144,948 $ 14,380,529 $ 23,145,636 Total Athletics $ 18,721,650 $ 15,090,660 $ 17,794,437 $ 7,660,047 $ 7,681,055 Total $ 30,091,338 $ 36,170,834 $ 37,939,385 $ 22,040,576 $ 30,826,692 Past 5 Year Average per Year: $31.4M

Net Management Fee for Endowment Funds FY2018 FY2017 FY2016 Total Fee Net $876,237 $1,744,464 $1,913,067

Major Current Funded Projects

Alumni Mall Amphitheatre Before After

Land Bridge Parking Garage and Southern Avenue Before After

Bonds: Land Bridge, Parking Garage Before After

Student Wellness & Fitness Center Programmed for Health Studies and general recreation • $30,000,000 • 74,000 S.F. Pool, courts, artificial turf Programmed for use with improved existing center Opens in 2020

Student Wellness & Fitness Center

Athletics: Football Training Center $10m Gifts: Phase I

Athletics: Football Training Center $10 m Gifts: Phase II

Grant: Patterson Avenue Realignment – 2.2m City Partnership Before After

Scheidt Family Music Center $40 million Site Plan

Scheidt Family Music Center $40 million Lobby Support Space Rehearsal Space Main Hall

Advanced Manufacturing Research Lab $2,100,000 $250,000 $500,000 $185,000 Memorial Track resurfacing Ventures Call Center Getwell Entry Gate ADVANCED MANUFACTURING RESEARCH LAB MEMORIAL TRACK RESURFACING VENTURES CALL CENTER GETWELL ENTRY GATE

Future Projects

Natatorium •13.5 million State and Gifts Expanded Pool HVAC Replacement Pool Equipment Replacement Lighting Seating Increase

Wilder Tower: 12th Floor Student Recruitment Center $650,000

Capital Maintenance Lambuth Sprague Hall $6,000,000

STEM Research and Classroom Building Outlay: $40,000,000 • 60,000 SF New 17,000 SF Renovated Relocate research to new space to allow existing to be utilized for enrollment STEM emphasis increased

Park Avenue Housing 400 Beds Public / Private

FedEx – UofM Global Partnership Created UofM Global with anticipation of significant growth Initial response remarkably positive 11,000 employees immediately eligible Expanding to Indianapolis and Oakland hubs in the next few months Don’t be surprised if UofM is the largest university in TN in 24 months

Financial constraints Anxiety about returning to school  FedEx identified three challenges their employees face Financial constraints Anxiety about returning to school Lack of high school diploma or college acceptance  UofM Global provided strategies to overcome obstacle Direct, deferred billing to FedEx LiFE Prep Academy An all-star team of advisors, tutor & academic coaches

 Online Degree Program for FedEx Memphis Hub employees  LiFE Prep Academy: Jumpstart for students returning to school or taking courses online for the first time  LiFE Journey: Students will earn Bachelor of Professional Studies in Organizational Leadership

UMRF Ventures Inc. Biggest obstacle to graduation – funding. Ventures was established to help students find financial stability, provide professionalization and empower them to complete college. Students make $15 - $25 per hour, positioning the UofM to recruit and retain top student/graduate talent. Level 1 IT Help Desk at UofM Main Campus – Launched September 2017; employs 45 agents Level 1 IT Help Desk at Lambuth – Launched May 2018; employs 33 agents FedEx IT Command Center – Systems Analytics at UofM Main Campus – Launched June 2018; employs 45 graduate students from STEM disciplines and provides support for WTC Command Center

Achieving Carnegie I Status Consolidation of Research and Innovation Actively studying efficiencies in pre/post award and grants accounting structure Research expansion investment of $5 million over the next 5 years FedEx Innovation investment of $2.25 million Submitted request for $40 million STEM Building in July Pursuing independent research expansion funding in Legislature this session Creation of University Research Council