1. OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION Interim Study November 10, 2010

3. In The Global Economy of the 21 st Century, 90 Percent of the Fastest-Growing Jobs Will Require a Higher Education. 3

4. 4

5. Nationally, more than one-quarter (27.2 percent) of adults 25 and older have a bachelor’s degree or more, compared to Oklahoma at 22.2 percent. 5

6. State Per Capita Personal Income v. Share of Adult Population with Bachelor's Degree or Higher No state with a low proportion of Bachelor’s degrees has a high per capita income. No state with a high proportion of Bachelor’s degrees has a low per capita income. States with high proportion of bachelors degrees States with low proportion of bachelors degrees Outlier state that has high income and low degree attainment 6

7. 3,798,9405,254,193Professional degree 2,527,3243,982,577Doctorate 1,507,8232,963,076Master's degree $1,111,921$2,567,174Bachelor's degree 346,1201,801,373Associate degree 270,5691,725,822Some college, no degree 01,455,253High school graduate -304,5551,150,698High school dropout -$478,903$976,350Less than 9th grade Difference Compared to High School Graduate Estimated Lifetime Earnings Education Level The Impact of Education on Individuals: Lifetime Earnings U.S. Department of Commerce-Economics and Statistics Administration-U.S. CENSUS BUREAU 7

8. 8 $ COST SAVINGS All Oklahoma institutions of higher education have decreased their need for additional funds for mandatory operating obligations by cost savings efforts. A total cost savings of $112.3 million from 2009-12. 8 Energy Conservation Energy Conversion Changes in Salaries and Benefits Changes and Elimination of Positions Reduction in Supplies and IT Expenditures

9. 9 $ COST SAVINGS 9 $0 m $5 m $10 m $15 m $20 m $25 m $30 m $35 m Faculty and Staff Positions SuppliesSalary and Benefits Utilities $112.3 Million Cumulative Savings Over 4 years $22.1 m $32.5 m $22.5 m $23 m $3.8 m $8.4 m Travel, Periodicals and Other IT Equipment

10. 10 Oklahoma’s 25 College and Universities have an active and productive grantsmanship program which contributes to the institutions funding outside the appropriations process. In 2010, our institutions reported the receipt of $506.6 million in competitive grants for program development and research.

11. 11 $ System Efficiencies Total System Administrative Costs FY92-FY09 FY92FY94FY96FY98FY00FY02FY04 FY06 FY08 FY09 0% 2% 4% 6% 8% 10% 12% 11.9% 11.1% 8.2% 8.3% 8.1% 8.2% 8.1% 7.8% System Admin Costs as a Percent of Total Budget 14% 9.3% 7.8% 11 FY10 7.9% FY11 7.8%

12. Book Banks Many of our institution have recognized a financial need by their students for help with text books. Over the past several years, our institutions have initiated a variety of methods to address these needs. TCC Textbook Trust, which will pay up to $400 a semester for Tulsa Achieves students who do not have another scholarship or grant that pays for their books. The money will be distributed first-come, first-served to as many students as possible. The University of Oklahoma, Southeastern Oklahoma State University, the University of Central Oklahoma and Cameron University have developed a books on reserve program which allows student to reserve textbooks at the institutions libraries. 12

13. Joint Academic Programs 13 Reach Higher - Consortial bachelor's degree completion program via partnership of nine regional universities. Just added associate degree options that involve consortia of community colleges/technical branches. UCO operates a center on Rose State campus that offers 2+2 joint degree arrangements for students. Upper division portion of degrees offered by UCO on the RSU campus. SEOSU and EOSC partner in McCurtain County to offer courses and degrees in consortial arrangement. ECU delivers the Bachelor of Science in Nursing major through ITV to Southeastern Oklahoma State University. Statewide cooperative agreements between community colleges and Career Tech centers offer inverted 2+2 arrangements for earning college credits toward the AAS degree and having completion options available on the Career Tech site. OSU and NOC partner with the NOC-Stillwater "Gateway" program. Partner together to create resources and access points for students to complete developmental, general education, and transfer into upper division majors.

14. 25% 50% 75% 100% 19881990 2008 Percentage of the higher education budget paid with state appropriations: 2009 Source: OSRHE, Educational and General Budgets Summary & Analysis, June 2010 75.3% 69.3% 49.5% 44.8% 44.7% 41% 2010 2011 14

15. The two primary reasons are: –Health Care Cost Increases –Corrections Why? 15

16. 0% 5% 10% 15% 20% 25% 30% M i s s i s s i p p i Oklahoma 0.4% Georgia Arizona Florida Oregon Hawaii Colorado National Average Kansas Texas Nebraska 20.6% 23.7% 15.8% 15.5% 14.5% 9.0% 6.4% 5.3% 4.8% 4.1% Ohio Missouri Maryland Arkansas Iowa 4.6% 0.9% 0.5% 0.3% 0. 0 % 0. 0 % Research Institutions Percentage Change in Resident Undergraduate Tuition and Required Fees 2008-09 to 2009-10 Affordability 16

17. 0% 5% 10% 15% 20% 25% 30% Florida Mississippi Ohio 0.0% Regional Universities Percentage Change in Resident Undergraduate Tuition and Required Fees 2008-09 to 2009-10 Affordability Georgia California Arizona Washington Colorado National Average Kansas Texas Nebraska 28.7% 26.2% 21.3% 14.2% 13.9% 6.7% 6. 5% 4.1% 6.6% 4.4% Oklahoma MissouriMontana Arkansas 2.3% 1.6% 1.0% 0.0% 13.1% Iowa 17

18. 0% 5% 10% 15% 20% 25% 30% Community Colleges Percentage Change in Resident Undergraduate Tuition and Required Fees 2008-09 to 2009-10 Affordability Georgia California Arizona Washington Florida Colorado National Average Kansas Texas Nebraska 30.6% 30.3% 30% 23.2% 18.4% 6.2% 5.7% 2.0% 7.1% 4.3% Mississippi Oklahoma New York Missouri Wisconsin North Dakota 0.8% 0.0% -0.3%-0.4% 8.8% Iowa 5.3% 0.6% 0.3%0.8% Alabama Louisiana 18

19. FY11 Budgeted Income by Source 19

20. FY11 Budgeted Expenses by Function 20

21. 21 2000-01 2001-022002-032003-042004-052005-06 Degrees Conferred by Oklahoma Public Colleges and Universities Number of Associate and Bachelor’s Degrees Conferred 2006-07 23,701 Source: 2010 Degrees Conferred Report/UDS Database 18,998 19,488 20,458 21,636 22,786 23,298 23,845 2007-08 24,211 2008-09 27.4% In 2008-09, State System institutions awarded a total of 24,211 associate and bachelor’s degrees – the most awarded in a single year in state history This is 27.4 percent more degrees awarded than in 2000-2001. 21 7

22. 170,000 Fall 2008 177,385 187,676 160,000 150000 140,000 130,000 120,000 Fall 2009 Source: 2009 Fall Preliminary Enrollment Report References Public Institutions Enrollment 180,000 190,000 Record Fall Enrollment Overall Headcount Increased by 10,291 in Fall 2009 First Time Freshman increased by 12.3 percent 22

23. 170,000 Spring 2009 166,784 178,053 160,000 150000 140,000 130,000 120,000 Spring 2010 Source: 2010 Spring Preliminary Enrollment Report References Public Institutions Enrollment 180,000 190,000 Record Spring Enrollment Overall Headcount Increased by 11,269 in Spring 2010 First Time Freshman increased by 31.7 percent 23

24. Fall 2010 Preliminary Enrollment Overall Enrollment Increase of 3.3% over Fall 2009 24

25. OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION Interim Study November 10, 2010