1. LONE STAR COLLEGE SYSTEM Accelerating Closing the Gaps: Making Opportunity More Affordable for Texas and Texans Shah S. Ardalan Vice Chancellor and CIO December 4, 2009

2. 5 colleges 11 school districts 58,884 credit students 19,000+ non-credit 1.6M population 1,400 square miles 2,000 F/T employees 3,000 P/T employees SYSTEM OVERVIEW

3. ABOUT LSCS The largest producer of associates degrees in Texas (16 th out of 1,200) The fastest growing community college in Texas The largest community college in Houston One of the best colleges to work at in the country (Chronicle of Higher Education) Among the lowest tuition and fees in Texas ($576 for 12 credits) Board of Trustees has lowered Tax rate again

4. HISTORY OF TAX RATE

5. FUNDING OVERVIEW (2009-10)

6. HISTORY OF SOURCES

7. In partnership with our ISDs, LSCS offered dual credit courses to over 10,400 students in the past 2 years. Students saved $1.72M Our students transfer to SYSTEM OVERVIEW UT SystemStanfordMichigan A&M SystemYaleDuke Sam HoustonPrincetonGeorgetown U of HoustonBrownMt. Holyoke HarvardJohns HopkinsUCLA

8. ADMINISTRATIVE COSTS

9. BOND RATINGS – STANDARD & POORS 2007AA 2008AA+ 2009AAA Reduces interest rate at least by 0.05% A saving of $2.6M interest on $150M issue RATINGS HISTORY

10. 11,916 computers 827 Servers 14 Datacenters 20,138 Network ports 5,500 VoIP phone #s 1,600 Miles of fiber 2,035 Applications 100,000 Service calls LSCS ENTERPRISE

11. Operational Excellence Energy management ($30M initiative) Datacenter redesign Server virtualization PC power management Software licensing Centralization and Outsourcing ( Purchasing, Service Desk, Student Email, …) Travel (WebEx)

12. Closing the Gap Staying focused on “community” Lowering tax rate Lowering administrative costs Lowering energy costs Offering dual credit Early retirement plan Operational excellence –Financial, Technical, Educational