1. Economic Issues on Campus: Where Do We Go from Here? CUPA-HR Economic Issues Task Force Spring 2011

2. CUPA-HR Economic Issues Task Force Lynn BynumAmy King Mark Caldron Kelly Jones Ricardo CoronadoKay McFarlin Deborah FillmoreKen Tagawa

3. Task Force Conclusions The economic issues facing higher education are far from over – extending beyond 2014 Financial outlook for public institutions is more negative than for private institutions The traditional higher education model is unsustainable Employees at public and private institutions remain engaged – at least for now

4. Do you believe the worst financial/budget issues for your institution are over? A.Yes B.No 10

5. If no, when do you expect these issues to end? A.2011 B.2012 C.2013 D.2014 and beyond :10

6. The Bad News Over two-thirds of all colleges do not believe the worst of the financial crisis is over Slightly more than half believe the financial crisis will not end until 2014 or later

7. Strategies for Loss of Stimulus Funds Top 3 Strategies: Budget cuts/improved efficiencies Increased revenues (tuition, fees, donors) Reassessment/consolidation of academic programs

8. What was your institution’s budget cut for FY2011-12? A.0% B.1-4% C.5-10% D.> 10% 10 Seconds Remaining

9. Budget Cuts During 2011-12

10. Budget Cut Impact on HR 16% - Zero cuts to HR budget 48% - 1% to 5% cut to HR Budget 23% - >5% and up to 10% cut to HR budget 13% - 10% or greater cut to the HR budget

11. Top 10 Institutional Strategies to Help with Budget Cuts 1.Delayed Hiring (78%) 2.Wage Freeze (71.4%) 3.Increased Student Enrollment (50.5%) 4. Programs Consolidated/Reorganized (40.7%) 5.Voluntary Separation Program (23.1%) 6.Involuntary Separation Program (23.1%) 7.Reduced Benefits (18.7%) 8.Unpaid Furloughs (13.2%) 9.Reduced Percent of Time of Appointments (7.7%) 10. Various non-specific (23.1%)

12. Top 10 HR Functions Cut 1.Employment 28.9% 2.Benefits 26.7% 3.Training 26.5% 4.Recruitment/Selection 24.4% 5.Classification/Compensation 21.5% 6. Payroll 15.4% 7.Academic Personnel 12.6% 8.HRIS 6.3% 9.Employee/Labor Relations 4.4% 10. Diversity/EEO 3.4%

13. The Good News 36% of Institutions Reported Planning Salary Increase 44% of Institutions Not Decided or Don’t Know Only 20% of Institutions Not Planning Salary Increase

14. The Good News Of Those Institutions Reported Planning a Salary Increase (by Affiliation) Private for-Profit 60% Private Independent 46% Private Religious 59% Public 20%

15. Percent of Salary Increase Planned 1% to 2% Increase 14% of Institutions 2% to 3% Increase 31% of Institutions 3% to 4% Increase 41% of Institutions 4% to 5% Increase 14% of Institutions

16. The Good News Median Base Salary Increase from 2009-10 to 2010-11* 09-1010-11 Faculty Increase 0% 1.1% Senior Admin. Increase 0% 1.4% Mid-Level Admin. Increase 0% 1.3% * 2009-10 & 2010-11 CUPA-HR Salary Surveys

17. Difficulty in Filling Positions and Retaining Employees 85% Reported No Difficulty in Filling Positions 87% Reported No Difficulty in Retaining Employees

18. How would you rate employee engagement? A.Very engaged B.Engaged C.Routine D.Disengaged E.Very disengaged

19. Employee Engagement & Outlook Engagement Faculty – 94% engaged or routine Staff – 92% engaged or routine Outlook Faculty – 58% cautious28% optimistic Staff – 60% cautious14% optimistic

20. Three Top Effective Strategies Used to Communicate Information 1. Face-to-Face Meetings 36% 2. Presidential Communications 25% 3. Electronic 18% -- includes e-mail, website, social media

21. The Good News – HR Functions Expanded 1. Academic Personnel 22.6% 2. HRIS 21.3% 3. Training 14.8% 4. Employment 13.9% 5. Classification/ Compensation 11.7% 6. Benefits 11.5% 7. Selection/Recruitment 11.3% 8. Payroll 10.5% 9. Diversity/EEO 9.5% 10. Employee/Labor Relations 8.8%

22. Top 10 - Presidents’ Strategies to Address Financial Issues 1. Cut administrative operations & Services 2. Increase tuition by 5% 3. Cut selected academic programs & activities 4. Freeze hiring for administrative positions 5. Expand online education 6. Increase part-time faculty 7. Create new self-sustaining programs 8. Launch/expand partnerships with other inst. 9. Raise student fees for campus services 10. Change benefit levels in health, retirement, etc. 2011 Inside Higher Education Survey of College & University Presidents

23. What are the three most important issues facing your institution over the next 2-3 years? A.Budget shortfalls B.Changes in state support C.Rising tuition/affordability D.Increased competition for students E.Maintaining quality of academic programs

24. Three Most Important Issues in the Next Two-Three Years – Public Institutions (Presidents Survey Inside Higher Ed – March 2011) _________________________________________________ 1.Budget Shortfalls 2.Changes in State Support 3.Remediation/Student Readiness

25. Doctoral UniversitiesMaster’s InstitutionsBaccalaureate Institutions Community Colleges Budget shortfalls – 57.6% Budget shortfalls – 58.7% Budget shortfalls – 56.9% Budget shortfalls – 64.5% Changes in state support – 62.5% Changes in state support – 54.8% Changes in state support – 39.2% Changes in state support – 37.9% Maintaining quality of academic programs – 28.8% Maintaining the quality of academic programs– 24% TIE: Rising tuition/affordability and Maintaining quality of academic programs – 17.6% Remediation and student readiness for College – 27.2% Rising tuition / affordability – 16.9% Rising tuition / affordability - 24% Increased competition for students – 13.7 Limits on our ability to respond to rising enrollments/increased demand – 20.4% Potential cuts in federal research support – 16.3% TIE: Increased competition for students and Student assessment/ institutional outcomes – 13.7% Student assessment / institutional outcomes – 13.7% Rising tuition / affordability – 15.1% 2011 Inside Higher Education Survey of College & University Presidents

26. Three Most Important Issues in the Next Two-Three Years – Private Institutions (Presidents Survey Inside Higher Ed – March 2011) _________________________________________________ 1.Rising tuition/affordability 2.Competition for students 3.Budget shortfalls

27. Doctoral UniversitiesMaster’s InstitutionsBaccalaureate Institutions Associate Institutions Rising tuition / affordability – 41.4% Rising tuition / affordability – 45.4% Rising tuition / affordability – 40.5% Rising tuition / affordability – 42.1% Budget shortfalls – 34.5% Increased competition for students – 38.9% Increased competition for students – 36.9% TIE: Budget shortfalls and Increased competition for students – 31.6% Potential cuts in federal research support – 20.7% Budget shortfalls – 29.6% Budget shortfalls – 33.3% Potential cuts in federal student aid programs – 21.1% Maintaining the quality of academic programs – 17.2% Potential cuts in federal student aid programs – 18.5% Potential cuts in state student aid programs – 26.2% Limits on our ability to respond to rising enrollments/increased demand – 15.8% Potential cuts in state financial aid programs – 16.7% Potential cuts in state student aid programs – 12.3% Financial support from alumni – 17.9% 2011 Inside Higher Education Survey of College & University Presidents

29. Questions?