State Universities of Academic and Research Excellence and National Preeminence Presentation to Blue Ribbon Panel June, 2012 THE FLORIDA STATE UNIVERSITY

I. Our Commitment to Florida’s Economic Development Corporations are keenly interested in a skilled workforce and cutting-edge research Highly ranked universities attract top faculty and students The top 100 research universities attract more than $40B in corporate and federal research, the remaining 550 universities garner only about $10B Top tier research universities are major economic engines; students are more competitive in the market for high-paying jobs

I. Our Commitment to Florida’s Economic Development Our highest priorities are focused on Florida’s economic development objectives and jobs for students We are ready, if we have the opportunity to invest FSU: Entrepreneurial University STEM excellence in energy and materials Comprehensive focus on successful longevity Critical needs for timely graduation National Academy members Educational partnership to recruit corporation

I. Our Commitment to Florida’s Economic Development Six years of declining state support have made Florida universities much more efficient, BUT we are losing ground in our ability to drive research, promote economic development, serve students FSU: Faculty #’s have dropped by 50 each of the last 4 years; more than 300 total; 1/3 of Assistant Profs Nearly 80 STEM faculty have left; only 20 re-hired because of budget constraints 13 Business faculty have left since 2010 including eminent scholars (for higher salaries)

Changes in Total Faculty

Changes in Total Faculty

4 year changes in faculty and students

II. Florida’s Universities do not reflect market forces

II. Florida’s Universities do not reflect market forces Of the six states with less tuition and fees: Four of them do not have even a single tier one research university None of them have a university ranked in the top 100 Only Utah and Louisiana have universities ranked in the top 150 U.Utah spends more per student through appropriation, T&F than FSU LSU spends the same as FSU

II. Florida’s Universities do not reflect market forces

II. Florida’s Universities do not reflect market forces It is good business to be priced below the market, but not to the point of being at such a distinct competitive disadvantage that you can’t deliver quality Key factor: STEM degrees are considerably more expensive than other degrees Tuition and Fees: FL Research Universities: $5,583 – 5,825 (the lowest) Highest Public Research: $16,132 Average Public Research: $9,500 Average of all publics: $8,244

II. Florida’s Universities do not reflect market forces or performance Tuition and Fees are the same regardless of mission or rank NR 58 181 177

II. Florida’s Universities do not reflect market forces or performance – 2012-13 Even less correlation to National Rank – with the exception of New College and FAMU – the biggest difference is $342 yr

Use any Metric : % Freshman Retention rate II. Florida’s Universities do not reflect market forces or performance – 2012-13 Use any Metric : % Freshman Retention rate 87 88 79 79 82 81 NR 75 86

Any Metric: # of STEM Programs in top 100 expenditures II. Florida’s Universities do not reflect market forces or performance – 2012-13 Any Metric: # of STEM Programs in top 100 expenditures 8 7 4 4 2

II. Other University Systems do reflect market forces – Virginia (15) $6958 difference 25 71 NR

II. Other University Systems do reflect market forces – North Carolina (17) $2347 difference 29 101 190 NR R-NR NR

II. Other University Systems do reflect market forces – Georgia (19) $3470 difference 36 R-NR

II. Other University Systems reflect market forces through differential tuition 1/3 of all publics now charge different tuition for different majors or for difference in class standing Higher rates for juniors and seniors (closer to job market) Higher rates for more costly degrees Higher rates when salaries are higher Higher rates for higher demand majors Engineering, STEM, business, nursing most common Approximately 10% difference is common, but the rate may be as much as 45% different Decade-long studies indicate minimal impact on enrollment; little heterogeneity even by income Major, student ability, earnings are more important

II. Salary is also a Market Issue Peer Comparisons

II. Salary is also a Market Issue College Total Outside Offers Successful Counter-Offers Known Offers (Successful Counters) Average Increase for those that Left in Last 4 Years Average % for those that Left in Last 4 Years A&S 58 8 11 (2) $19k 24% Communication 13 3 9 (3) $45K 54% Business 15 2 $74k 58% Visual Arts 9 (0) $22k 34% Social Work 4 n/a Nursing 5 Music 1 Social Sciences 30 7 22 (7) $31k 37% Criminology 9 4 (2) $48k 44% Education 38 4 (3) $88k 85% Human Sciences 2 (2) Engineering 1 (1) Law 36 24 5 (2) $34k 22% Florida is becoming the farm team for other states

II. Salary is also a Market Issue Faculty salaries declining with respect to the market Competitive at Assistant Professor level and then lose ground with time makes your faculty vulnerable to being recruited Assistant Professors are even with peers, Associate Professors are about 10% below peers, and Professorial level salaries are on average 13% below our peers But, offers from other institutions are more typically 35% more than paid by FSU, if not more - taking highly productive faculty that are valued at above average salaries Florida universities become the farm team for other states once faculty credentials are established

II. Florida’s Universities do not reflect market forces Florida provides many choices for higher education, including community colleges, colleges, and universities The price difference ranges from about $3000 to $5900 – remarkably inexpensive and a narrow range But, also consider the student loan default rate: National average: 8.8% Florida average: 10.5% FSU: 3.4% Top-ranked programs have higher graduation rates, a positive impact on job potential; lower default rates – all of these factors are significant market forces

III. The Preeminence Bill Introduced a New Standard of Accountability Many statistics, but accountable only on enrollment target Bill based on 14 national standards of excellence Serve state needs – STEM, efficiency, quality Metrics incentivize universities to reach preeminent status rather than act as an entitlement For the first time, Universities that meet the standard must describe how the proposed tuition increases will be utilized to benefit students and the State Proposals for growth, economic development, and student advancement will be a public discussion for the first time Framework for additional metrics – different missions

IV. Tuition is Controlled and Accessibility is not Threatened Increases must be approved by Trustees and Governors If increase occurs too quickly, market will respond Strong commitment to financial aid – for every economic class, expected family contribution + scholarships exceeds tuition and fees by more than $2000 Dedicate a portion of every tuition increase to financial aid

IV. Tuition is Controlled and Accessibility is not Threatened Estimated Net Tuition and Fees by Family Income (for Full-Time Undergraduate Florida Residents in the Fall and Spring of 2011-12) FAMILY INCOME GROUPS FAMU FAU FGCU FIU FSU NCF UCF UF UNF USF UWF Below  $40,000 ($2,061) ($4,481) ($2,420) ($2,753) ($3,262) ($4,200) ($657) ($4,320) ($3,379) ($2,863) ($2,405) $40,000-$59,999 $336 ($1,664) $588 $94 ($430) ($813) $862 ($667) ($1,034) ($308) $391 $60,000-$79,999 $937 $155 $2,148 $1,467 $1,466 $167 $1,987 $1,198 $1,527 $1,803 $1,575 $80,000-$99,999 $393 $491 $2,490 $1,959 $2,039 $537 $2,326 $1,498 $1,894 $2,621 $2,121 $100,000 Above $235 $553 $2,395 $1,985 $2,240 $451 $2,397 $1,357 $2,239 $2,607 $2,426 Missing  0 $2,264 n/a $4,644 $1,876 $2,658 $2,422 $1,788 $4,638 $2,833 TOTAL ($1,365) ($1,552) $1,305 $550 $642 ($791) $1,596 $248 ($194) $209 ($241)

Summary We are committed to economic development and jobs, and eager to invest in Florida Market forces are being suppressed; expect negative consequences A new level of accountability should be introduced We remain committed to being highly accessible

FSU’s National US News Ranking Among Public Universities Greatly Outstrips Its Financial Ranking