2. 2 JANUARY MEETING Reviewed projected funding gap Discussed summary grid of committee members’ ideas and questions thus far (sticky note exercise) Committee members considered several topics in greater detail, asked questions of staff, and generated initial ideas. Discussion and ideas were concentrated around:  Tuition (Peer tuition rates, GET, and differential tuition)  Enrollment Mix/Admissions  Graduate/Professional Tuition  Philanthropy  State Support  Commercialization/Innovation

3. 3 Information Requests

4. 4 INFORMATION REQUESTS Enrollment trends (admissions, yield) by undergraduate student category Academic credentials by undergraduate student category Table of peer tuition rates for undergraduate students and selected graduate/professional student categories Philanthropic funding compared to peers Analysis of “overhead expenditures” compared to peers Review of peer strategies for addressing financial constraints Peer commercialization performance comparison Justification for four-year graduation rate (54 percent among undergraduates)

5. 5 Possible Recommendation Topics

6. 6 Draft Recommendation: The UW should conduct a sensitivity analysis to determine how many international students or domestic nonresident students could be added to existing enrollment levels at all campuses without compromising current enrollment levels of resident students. Would additional physical constraints occur and if so, what mitigation strategies could be put into place? How might course enrollment and major completion be affected? In what ways would resident undergraduate enrollment be affected? Is there robust demand from a competitive pool of applicants for the UW to support such a change? WORKING TOWARDS RECOMMENDATIONS

7. 7 Draft Recommendation: Each graduate and professional school should consider the following when setting tuition rates: 1.Peer tuition rates 2.Post-graduate earnings projections 3.Regional and national degree market value These analyses should occur prior to the 2014-15 academic year in order to minimize the extent to which undergraduate tuition revenue is cycled back to departments unable to support their own operational expenses. WORKING TOWARDS RECOMMENDATIONS

8. 8 Draft Recommendation: The University should conduct analyses to uncover the feasibility, political sensitivity, and possible gains from two structural state policy changes; these could include:  Local Taxing District: Could a local taxing district in the tri-county region be created to support UW operational expenses? In exchange, would the UW commit to enrolling a certain percentage of undergraduate students from this region? This research should include an examination into whether other universities have pursued, and established, this structure.  Constitutional Amendment: How might higher education incrementally move toward inclusion in the Washington State Constitution? WORKING TOWARDS RECOMMENDATIONS

9. 9 Draft Recommendation: Launch a separate advisory committee to begin contemplating a campaign strategy. Consult members of the community to design innovative strategies, partnering with business, integrating commercialization, and bringing to the fore strategic fundraising ideas that will align our use of philanthropic funding with peers. WORKING TOWARDS RECOMMENDATIONS

10. 10 Current predictions suggest that revenue from sales and use and other taxes will remain relatively constant; as such, the state has limited additional funds available despite growing demands Because the state must commit to fully funding K12, any enhancements in education funding will go to K12 and not to higher education Higher education may realize marginal increases in state funding, but restoring pre-recession appropriations or per student funding levels is a near impossibility in the foreseeable future Draft Recommendation: Though state funding will remain limited, the Futures Committee recommends that the UW administration continues to pursue its state funding advocacy work with increasingly innovative strategies. WORKING TOWARDS RECOMMENDATIONS

11. 11 WORKING TOWARDS RECOMMENDATIONS Other Possible Recommendations…

12. 12 State Support

13. 13 STATE FUNDING OUTLOOK February collections were lower than anticipated, but cumulative revenue is higher than the November revenue forecast predicted Required K12 and healthcare funding levels have increased OFM anticipates that federal sequestration will affect K12, healthcare and public safety/environmental budgets The March 20 th revenue forecast will provide an indication of how federal sequestration, caseloads, and new revenue estimates might affect the state’s ability to provide consistent funding to the UW Best possible outlook for FY14 and FY15: Maintenance of our current appropriation (~$212 million/year) Outlook for FY16 and FY17 biennium: OFM predicts a $1 billion shortfall (required expenditures greater than anticipated revenue) before consideration of federal sequestration and rising caseloads are incorporated