1. OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION Faculty Advisory Council January 14, 2011

2. In The Global Economy of the 21 st Century, 90 Percent of the Fastest-Growing Jobs Will Require a Higher Education. 2

3. 3

4. Nationally, more than one-quarter (27.9 percent) of adults 25 and older have a bachelor’s degree or more, compared to Oklahoma at 22.7 percent. 4

5. 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 5

6. 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 6

7. 7 2011 Legislative Agenda

8. 8 Endowed Chairs Program 2011 Legislative Agenda The endowed chairs program is one of the most successful public/private partnerships where private donations are matched dollar for dollar with public funds. Dollars are used to help fund faculty and research positions, new programs and lectureships. A bond issue was authorized in 2008 to fund $100 million of the current 364 million dollar backlog and in 2010 the legislature and Governor funded the debt service for this $100 million bond issue.

9. 20 Institutions and Branch Campuses Have 712 Accounts Awaiting Funding Endowed Chair Backlog 9 Number of InstitutionAccounts Cameron15 ECU4 NSU3 NWOSU9 Langston1 OSU230 OSU-OKM4 OSU-Tulsa7 OSUCHS 22 OSU Vet 7 OU 154 Number of InstitutionAccounts OUHSC180 OU Tulsa 44 Rogers1 SEOSU 1 SWOSU5 TCC17 UCO 3 USAO 1 WOSC 4 Total Accounts 712

10. 10 2011 Legislative Agenda The State Regents, all 25 institutions, and all governing boards believe that there is no scenario where placing guns on campuses will do anything other than create a more dangerous environment for our students and faculty on campus. In past three legislative sessions, legislation has been introduced or discussed that would allow certain students to carry concealed weapons onto college property we have successfully defeated the legislation to date. It will continue to be a priority of the system to ensure this legislation is not law. Concealed Weapons Legislation

11. 2011 Legislative Agenda OK Promise is one of the most successful college access scholarship programs in the country. There has been legislation introduced in past legislative sessions to change the requirements of the program that would reduce the number of students eligible to participate. Changing the requirements of OK Promise would alter the intent of the program, which is to ultimately provide students more access to college which will result in more Oklahoma college graduates. We oppose any legislation that would change the program’s focus on access. 11

12. 12 Oklahoma Promise students average a 3.4 GPA compared to all high school seniors with a 3.0 GPA. Ok Promise students score higher on the ACT Test. On average 20 percent more Oklahoma’s Promise students enter college directly after the high school graduation when compared to all High School graduates. Ok Promise students have a higher persistence rates from freshmen to sophomore. Oklahoma’s Promise students complete college degrees at higher rates than non-Oklahoma’s Promise students. a.The six year degree completion rate is 50 percent for Oklahoma’s Promise students compared to 40 percent for non-Oklahoma’s Promise Students. b.The nine-year degree completion rate is 61 percent for Oklahoma’s Promise students compared to 50 percent for non-Oklahoma’s Promise students Oklahoma’s Promise students are even more likely to remain in Oklahoma after graduation when compared to all Oklahoma college graduates.

13. 1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000 2007-082000-01 2001-02 2002-03 2003-04 2004-052005-06 2006-07 1,717 2,004 2,982 5,889 9,155 12,101 Number of Oklahoma’s Promise Scholarship Recipients As of 10-20-10. Assumes 1% annual increases in OK Promise high school enrollment and 65% completion rate of high school requirements for scholarship eligibility. 2008-092009-10 17,000 19,000 14,670 16,928 18,282 19,409 2010-11 20,900 P r o j e c t e d 2011-12 20,275 21,000 13

14. 2011 Legislative Agenda Due to the economic downturn and record enrollment increases, our institutions have been stretched to the financial limits and yet the state system has been able to protect our students with limited tuition increases. In 2009, all of our 25 institutions froze tuition. Last year we had very limited tuition increases statewide. Our two research institutions, OU and OSU continue to be 11th and 12th in the in the Big 12 in regards to tuition and fees. We support leaving the tuition setting authority with the Oklahoma State Regents. Tuition Setting Authority 14

15. 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 25.6% 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 Source: Washington Higher Education Coordinating Board 2009-10 – Tuition and Fee Rates-National Comparison 15

16. 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 Source: Washington Higher Education Coordinating Board 2009-10 – Tuition and Fee Rates-National Comparison 16

17. 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 Source: Washington Higher Education Coordinating Board 2009-10 – Tuition and Fee Rates-National Comparison 17

18. 18 Higher Education’s Efficiencies and Reforms

19. 19 $ 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. Energy Conservation Energy Conversion Changes in Salaries and Benefits Changes and Elimination of Positions Reduction in Supplies and IT Expenditures Source: Oklahoma State Regents for Higher Education 19

20. 20 $ COST SAVINGS $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 Source: Oklahoma State Regents for Higher Education 20

21. 21 $ 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% FY10 7.9% FY11 7.8% Source: Oklahoma State Regents for Higher Education 21

22. 22 $ System Efficiencies Administrative Costs reduced 1/3 over 19 years Source: Oklahoma State Regents for Higher Education FY 1992FY 2011 88.1% All Other Costs 11.9% Administrative Costs 92.2% All Other Costs 7.8% Administrative Costs 22

23. 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. Source: Oklahoma State Regents for Higher Education 23

24. Performance Funding Performance Funding is designed to financially support the State Regents’ Brain Gain initiative, adding a component to the traditional funding formula and rewarding institutions for performance in graduation rates and retention rates. Performance funding has been a key component in driving Oklahoma’s increase in degrees conferred. Oklahoma’s Performance Funding initiative is nationally recognized. Performance Funding reached over $2.1 million in FY11. 24

25. 12 25 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.

26. 26 Higher Education’s 2012 Budget Request Economic Recovery and Growth

27. 27 FY’11 Appropriation State Appropriations$943,666,030 ARRA Funds$59,794,986 Total FY’11 Appropriation$1,003,461,016

28. 28 FY’12 Appropriations Request FY’12 Appropriation Request 1.Economic Recovery and Growth a.Replacement of FY’11 Stimulus Funds$59,794,986 b.Replacement of FY’11 Debt Service Reduction to be used for Institutional Operations$16,500,000 c.Total Funding Need for Operating Obligations$30,938,170 d.Endowed Chair Bond Issue Debt Service$5,600,000 e.Section 13 Offset$618,150 2. Removal of Financial Barriers a.Concurrent Enrollment$1,500,000 b.Academic Scholars$600,000 3. Office of Accountability$48,014 Total New FY’12 State Funds$115,599,320 % Difference from Total FY’11 Appropriation5.56% FY’12 Total with Oklahoma’s Promise Allocation ($63.2m)$1,122,465,350

29. 29 Concurrent Enrollment CONCURRENT ENROLLMENT CREDIT HOURS 2004-052005-06 2006-07 10,000 20,000 30,000 40,000 50,000 2007-082008-09 2009-10 29,156 39,758 45,690 48,741 50,068 56,438 60,000 Source: Oklahoma State Regents for Higher Education 29

30. 30 Academic Scholars Academic Scholars receive a scholarship to help cover the cost of room, board, tuition, books and incidental fees for up to eight semesters. University of Oklahoma is ranked number one in the nation for National Merit Scholars. 2,313 students received a National Merit Scholarship from 1998-2008. For the 1,672 participants entering into the program between 2001- 2003, 78 percent (1,306) received at least a baccalaureate.

31. 31 FY’12 Appropriations Request Total New FY’12 State Funds $115,599,320 % Difference from Total FY’11 Appropriation 5.56%

32. 32 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. 32 7

33. 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 33

34. 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 34

35. Fall 2010 Preliminary Enrollment Overall Enrollment Increase of 3.3% over Fall 2009 Source: 2010 Fall Preliminary Enrollment Report References Public Institutions 35

36. OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION Faculty Advisory Council January 14, 2011