2. External Forces Driving ISU’s Future National Trends and Hoosier Realities

3. The World is Changing Year 2000 is less than 30 Months away

4. Six External Forces are Helping Drive Changes at ISU Public Perception Economy/Fiscal Accountability Technology Demographics Competition

5. Public Perception as a Driving Force Themes : C o n f i d e n c e G o i n g D o w n Public Confidence Going Down Colleges Aren’t Delivering Education not Worth the Cost Faculty Aren’t Teaching Colleges Are Charging Too Much

6. Public Perception as a Driving Force The NewsHour with Jim Lehrer May 1, 1997 Rep. Buck McKeon, Chairman, Committee on Education

7. Accountability as a Driving Force at the National Level Student Right-to-know Act in full swing National Panel to Study Higher Ed Costs Named Faculty Tenure being Questioned Department of Justice impacting International Enrollments Florida forces articulation and limits subsidies to set number of credit hours

8. The Impact of Accountability on Indiana and on ISU Greater Scrutiny ISU asked to provide information n : Faculty Workload Finances Enrollment Student Success (Graduation & Retention) Student Mix

9. The Impact of Accountability on Indiana and on ISU Greater Involvement - ICHE sets performance objectives for ISU: Increase matriculation of high school students in service area Accept high percentage of students completing CORE 40 Increase 21st Century Scholars Retention and graduation rates Asks for justification of financing Legislators becoming more involved

10. The Impact of Accountability on Indiana and on ISU: An Example Student Right to Know: Public Law 101-542 1990 Student Success in College a National Concern

11. The Impact of Accountability on Indiana and on ISU: An Example ICHE Begins to Gather Graduation & Retention Data ICHE sets performance objectives by school Commission proposing funding formulas take into account student success. Retention & Graduation Report

12. Accountability in the Future Greater Demands for Information Areas of Interest to ICHE: Fall Sections per Faculty FTE School Credit Hours per Faculty FTE Staff FTEs per Faculty FTE Instructional Expenditures as % of Total and % of Student FTE Tuition Fees Percent on campus students Percent of Hoosier Students

13. Accountability in the Future The point to remember: We are going to be held increasingly accountable for: What We’re Doing There will be a bottom line: Show Success Whom We are Doing It To Where We’re Doing It How We’re Doing It

14. Demographics as a Driving Force at the National Level b Growth in Number of Traditional Students b Students will be more Ethnically Diverse b Students will be more Age Diverse

15. Demographics as a Driving Force at the National Level

16. The Impact of Demographics on Indiana and Indiana State Projected H.S. Graduates 2007 % Increase 1997-2007Number Projected

17. The Impact of Demographics on Indiana and Indiana State The Point to ISU is not going to grow if it relies on its traditional markets: a. Numbers in markets are small b. Competition is increasing

18. Fiscal Factors as a Driving Force at the National Level Source: Breaking the Social Contract: The Fiscal Crisis in Higher Education, p.8 Growth of Costs to Higher Education Institutions

19. Fiscal Factors as a Driving Force for ISU: ISU’s Operating Budget vs. CPI

20. Fiscal Factors as a Driving Force at the National Level

21. Fiscal Factors as a Driving Force for ISU: Funding from Appropriations Source: Annual Financial Reports, FY92 to FY Resource Trend, 1992-1995

22. Fiscal Factors as a Driving Force for ISU: Funds Expended by the ISU Foundation on Behalf of the University

23. Fiscal Factors as a Driving Force for ISU: Expenditure Allocation Ratio Fiscal Year19921993199419951996 Instr. & Acad. Sup.57.1755.4355.4658.8059.15 Public Service.69 1.20 1.07.88 1.02 Student Services 2.86 4.01 4.25 5.91 5.33 Oper.& Maint. Plant13.4712.1512.0610.9411.09 Institutional Support15.8216.6916.0611.7012.32 Student Aid 4.78 5.29 5.57 5.43 5.08 Mandatory Transfers 5.21 5.23 5.54 6.34 6.00 Source: Annual Financial Reports FY92 to FY96

24. Fiscal Factors as a Driving Force for ISU: Increase Efficiency of Finances Utilities as a % of Total E&G Expenditures

25. The Future Impact of Fiscal Forces b Revenue sources will remain relatively constant b New ongoing activities will have to be funded with existing resources

26. The Impact of Instructional Technology : Two Important Distinctions Distinction #1 Traditional Education Distance Education Academic Content Mastery C Academic content Mastery Holistic Educational Philosophy Adult (Re)Education C Reasoning Thinking, Group Behavior Skills Lifelong Learning Socialization - Rite of Passage Placebound, Timebound Students Regional Economic Development Executive Education Distinction #2 Robust Educational View Credentialing Academic Content Mastery yields University - provided credentials even though the University educates in many other ways

27. The Impact of Instructional Technology: Two Propositions Proposition1: Proposition 1: Proposition 2: Instructional Technology: driven Market forces will affect ISU’s CoreTechnology (Teaching & Learning) Instructional Technology: driven expectations for flexibility will affect ISU’s Access Mission *Instructional Technology > Flexibility> Access No Instructional Technology < Flexibility< Access

28. Technology as a Driving Force at the National Level b Instructional Technology is changing Classrooms - on andoff Campus –Satellites are linking classrooms across universities Websites are being used to disseminate information as well as being used as a teaching tool Email is becoming a standard way of communicating between students and teachers Virtual classrooms are a reality

29. Technology as a Driving Force at the National Level *Virtual Universities are attracting students *Private Businesses are creating universities *”Keep up with the Jones’ Syndrome” *Pedagogy is being debated *Role of Higher Education in society is being debated Technology is Changing Educational Institutions:

30. The Impact of Technology on Indiana and ISU Technology is here: IU-Bloomington is rated the best prepared technological public campus in the country. Competitors are using technology to access new & existing markets Legislators are interested in funding technology to increase access Long distance vs. on campus education is an issue throughout the state

31. The Impact of Technology on the Future of ISU Technology is a Potent Tool Being Used in Education It’s Use in Every Classroom is Expected and Supported by National and Hoosier policymakers

32. Competition: National & International

33. Competition: Indiana

35. Six Driving Forces in Review Public Perception: Public are Interested and Skeptical Accountability: Colleges are going to be held accountable for Success Demographics: Traditional markets do not equal tremendous growth Economics: ISU traditional revenue sources = fiscally constrained environment Technology: Is a Tool that Is Expected to be Used Competition: Competitors are Changing in Shape and Number

36. Demographics as a Driving Force at the National Level Percent Change in number of Public High School Graduates, by State: 1994-95 to 2006-07 -15.0 to 0% Growth 0.1 to 14.9% 15.0 to 29.9% 30 to 105%

37. Demographics as a Driving Force at the National Level

38. Projected Minority Growth Rates to Total Population Source:, Current Population Reports Census Bureau