1. Colorado State University System: Investing in Economic Prosperity for Colorado Presentation to the Joint Budget Committee Patrick Grant, Chair, Board of Governors Larry Edward Penley, Chancellor December 7, 2006

2. 2 The Case for Investment Strong system of higher education means: 1.Economic prosperity 2.The accumulation of human capital innovation in the form of educational attainment and the generation of new ideas drives economic growth 3.CSU is a world leader in biomedical sciences, engineering, environmental sciences, natural sciences, and energy 4.CSU-Fort Collins enrolls and graduates more full-time resident students than any other campus in Colorado 5.CSU generates more than $1.3 billion for the State of Colorado every year—ranking in the top 8 percent nationwide in average return on state investment 6.More than $267M in research expenditures at CSU-Fort Collins in FY06 alone

3. 3 Investing in Economic Prosperity The Board of Governors of the CSU System has established a dynamic set of 5-Year Stretch Goals: The Board of Governors supports a FY08 revenue increase from General and Cash Fund sources of $45.0M CSU at Fort Collins –450 new faculty members –Expanded enrollment Undergraduate: 19,000 to 25,000 Graduate: 2,000 to 5,000 –Dramatic improvements to graduation rates for minority and low-income students –An intercollegiate Athletics program that achieves a #1 Director’s Cup ranking in all events –$500M endowment CSU at Pueblo –Increase enrollment from 4,096 to 5,600 headcount –Ensure Hispanic Serving Institution status by increasing minority students from 25% to 32% –Increase graduation rates: 4-year rate from 17.6% to 23%; 5-year rate from 25.7% to 30%; and, 6-year rate from 33.9% to 38%

4. 4 What the Board of Governors is doing to help Launching new business concept (Supercluster) to increase the commercialization of current research Developing business plans to dramatically expand On-line education and mission- driven learning centers Controlling internal expenses Expanding marketing efforts to attract new in-state and out-of-state students Creating collaboration for student admissions between the Fort Collins and Pueblo Campuses Massive outreach efforts to K-12 students beginning in middle school (eventually will translate into increased enrollment) To aggressively pursue increases in federally funded research grants

5. 5 –CSU supports CCHE request for $100.0M in new funding –CSU recognizes current state budgetary constraints –CSU requests that funding for Higher Education be distributed based upon the current percentage of General Fund allocated to each system/institution –Provide the requested $22.5M increase in tuition/fee spending (14%) authority so that the CSU System can begin to add additional students (caseload increase) and increase need-based aid –$3.1M base funding increase for CSU-Pueblo to ensure equity with other schools –$5M additional to support state needs in biomedical science Funding needs for FY08:

6. 6 CSU Tuition/Fees are below the average of peer institutions (NCHEMS data) GF per Student FTE GF and Tuition/fees per student FTE Tuition and fees per student FTE PeersCSU%of Peers $11,554$4,55439% $18,724$10,71157% $7,170$615785%

7. 7 Investing in Economic Prosperity: Quality Improvements $22.5M for Quality Initiatives would provide funding for: –90 new faculty –700 new undergraduate slots (FY09) –Salary equalization to reach market rates –Graduate, research, and international program enhancements –Initiatives to support access with success for all students, including increased financial aid for low income/minority students –Enhancements to Hispanic Serving Institution (HIS) status at CSU-Pueblo –Increased graduation, and retention rates Supports state need for student access, global competitiveness, expanded workforce in STEM disciplines and world-class research

8. 8 CSU and CU-HSC: Drive statewide focus on biomedicine and health CSU: Veterinary Medicine/Biomedical Sciences –Highest nationally ranked program in Colorado; #2 in the U.S. $5M increase in base funding would support: –15 new faculty and professional positions – $2.25M –30 resident / intern program slots – $1.25M –10 new support positions and associated costs – $1M –State support for the Diagnostic Laboratory – $500K Increase will dovetail with $11M request for HSC Investing in Economic Prosperity: $5.0m for Biomedical Science

9. 9 Investing in Economic Prosperity: Equitable Base Funding for CSU-Pueblo CSU-Pueblo now receives $1,694 less in appropriations per student than other small Colorado 4-year schools There have been substantial increases for other State Colleges since FY05 (base funding) Adams$1.59M Mesa$3.0M Western$2.7M FLC$2.25M CSU-P$500k

10. 10 CSU Agencies Address Statewide Economic Needs Through Research and Outreach Cooperative Extension—57 offices across Colorado Agricultural Experiment Station—11 Colorado research centers Colorado State Forest Services—headquartered at CSU with district foresters throughout the state Colorado Water Resources Research Institute— partners with water managers statewide

11. 11 What Colorado Needs to Do: Beyond FY08 Achieve consensus on the importance of higher education to our economy and quality of life Provide a long-term stable funding source for higher education and address the NCHEMS study findings that research universities are significantly behind peers in funding Build a CCHE that is de-politicized and focused on providing leadership for Colorado higher education Reform statewide higher-education funding to more fairly fund economically important, high-cost programs in fields such as engineering, information technology, health care and the sciences Acknowledge the economic importance of graduate education and fund it Commit to providing student aid to ensure all qualified Colorado students have access to educational opportunities and a reasonable promise of success