Overview Presentation by David J. Schmidly System CEO & President

1. OKLAHOMA STATE UNIVERSITY UPDATE ON CRUCIAL ISSUES Overview Presentation by David J. Schmidly System CEO & President Spring General Faculty Meeting April 19, 2005

3. Oklahoma State University System One University with Multiple Locations and Missions Cooperative Extension District Offices Agricultural Experiment Stations Video Network Sites • 77 County Extension Offices • 16 Experiment Stations • Center for Health Sciences & Center for Veterinary Health Sciences • Oklahoma Technology & Research Park • Technical Branches in OKC and Okmulgee with 77 associate & 3 bachelor degree options • 2+2 Programs in Tulsa with 28 undergraduate & 52 graduate degree options • Comprehensive Institution in Stillwater with 170 undergraduate & 153 graduate degree options • Fire Service Training – 900 Communities • The Center for Local Government Technology – all counties $166M state appropriations $520M total budget OSU Campus Leverage $15 to $1 $2.5B impact and9,500 jobs

4. The Oklahoma Land-Grant Triangle Okmulgee A Rural/Urban Technology Enterprise Region Ponca City SH 177 Cimarron Turnpike Tulsa OSU – Tulsa2+2 with Tulsa Comm. College Applied Materials Research CenterPartnership with Langston OSU – Center for Health Sciences Rural Health & Telemedicine Primary Care Lake Carl Blackwell Stillwater Hwy 51 OSU Flagship Headquarters BS, MS, Ph.D, Degrees Center for Vet. Health Sci. Division Ag. Sci. & Nat. Res. Okla. Research & Tech. Park Northern Okla. College Partnership Karsten Creek I-44 OSU – Okmulgee 4 year technology degrees Tribal college & health center I-35 Ideas and concepts developed within the Land-Grant Triangle will be disseminated by extension and outreach programs throughout the state. Oklahoma City OSU – Oklahoma CityTechnology degreesFirst Responder TrainingHealth Care Training

5. The tally Counties (77): OSU: 68, OU 9 Oklahoma’s County-by-County ‘Electoral College’

6. Board of Regents Chief of Staff Al Goodbary President, Center for Innovation & Econ. Dev. Joseph Alexander Chief Executive Officer, OSU System, & President OSU David J. Schmidly Dir, Comm. Services Gary Shutt President & Provost, OSU-Oklahoma City Jerry Carroll President & Provost, OSU-Okmulgee Robert Klabenes President OSU-Tulsa Gary Trennepohl President, Health Affairs & Dean, Osteopathic Med. John Fernandes Vice President of Agri. Pgms. & Dean, CASNR Robert Whitson Vice President, Research & Technology Transfer Stephen McKeever Vice President, Enrollment Mgmt. & Marketing Michael Heintze Executive Director, Alumni Association Jerry Gill Provost & Senior Vice President Marlene Strathe Vice President, Administration & Finance David Bosserman Director, Athletics Harry Birdwell Vice President, Student Affairs Lee Bird Assistant Athletic Director for ComplianceRick Allen Vice President, Institutional Diversity Cornell Thomas Academic Deans Department & School Heads Faculty ****** Colleges Agri. Sciences & Natural Resources Arts & Sciences Spears School of Business Education Eng., Architecture & Technology Human Environmental Sciences Graduate Library Center for Veterinary Health Sciences Osteopathic Medicine CIO & Dir Distance Learning, Darlene Hightower ---------- Strategic & Policy Issues ______Operational Issues

7. http://system.okstate.edu/viewplans.htm

8. Strategic Alignment for the Plan Excellence Affordability • Rankings • Research • Facilities • Tuition • Scholarships Access Student Success • Enrollment Management • Gateway Program with NOC • Graduation & Retention • Learning Outcomes • Young Scholars Program Mission Vision Values Priorities Alumni Student Body Faculty Staff • Seven Strategic Goals • Academic Excellence • Student Success and Development • Engagement and Outreach • Diversity • Human Resources • Enhance & Leverage Resources • Image/Pride/Recognition OSU Alumni Association CIED OSU Foundation Athletics Center for Innovation & Economic Development, Inc. OSU Parents Association

9. Improve the freshman class profile—new admissions standards. Expand recruitment efforts inside and outside Oklahoma. Improve merit scholarship program. Place more emphasis on transfer students. Develop partnerships with two-year institutions. Achieve 80/20 mix of undergraduate to graduate students. Address the problem of declining international student enrollment. Develop an enrollment management plan and use it to guide campus decision making. We Must Manage Our Enrollment The key is maintaining an appropriate balance between the size, quality, and composition of our student body.

10. NOC/OSU Gateway Program OSU Freshman Applicants (Not Admitted) Hall of Fame Ave. Cowboy Mall OSU Students Needing Remediation OSU Students Taking Gen. Ed. Courses Admitted as Transfer Students (24 hrs./2.25 GPA)

11. First-Time FreshmenHeadcount Enrollment, ACT Scores, and Acceptance Rates (90%) (59%) (92%) (63%) (89%) (56%) (91%) (62%) (92%) (59%) (89%) (58%) (87%) (57%) (89%) (59%) (88%) (57%) (85%) (57%) (88%) (56%) (80%) (57%) (86%) (56%) (89%) (57%) (87%) (60%) Top percentage is the acceptance rate, the percentage below is the yield rate (% of accepted students who enrolled). *1990 – 1993 New Freshmen counts include non-degree-seeking students. **Starting with 2004, Concurrent High School Students have been excluded. Source of Data: 1990 – 2004 Oklahoma State University Fall Student Profiles

12. We Must Strengthen Our Faculty The key component is to strengthen the faculty. At OSU we must: • Restore the faculty – we lost 100 positions from 2001-03. • Reward the faculty – our salaries are at the bottom of our peer group. • Grow the faculty – our faculty is not large enough to achieve either ranking. We also must provide adequate facilities and space for our faculty. We must strengthen our graduate programs and stipends to attract top students.

13. Full-Time Tenure/Tenure-Track Faculty HeadcountCompared to Enrollment GrowthFall 1995 through Fall 2003 Faculty Headcount Enrollment • From Fall 1995 to Fall 2003, student enrollment has increased more than 23%. • In the same time period, full-time tenured & tenure-track faculty has increased less than 3%.

14. Restore Faculty 25 positions per year for 4 years (FY05 - FY08) $10M total Reward Faculty $1.2 - $1.8M new funding needed each year (FY06 - FY15) $13M total Grow Faculty 10 new positions per year (FY06 - FY15) $1.0 - $2.0M new funding needed each year $3M annual start-up funding $15.2M total Addressing Faculty Salary IssuesAddressing Salary Issues

15. What it will cost…

16. To attract the best and brightest graduate student talent to OSU by improving graduate student stipend and tuition scholarship packages to peer-competitive levels

17. We Must Provide Adequate Facilities and Space for Our Faculty • Capital ProjectsAmountSource of Funds • New interdisciplinary science building $76,000,000 Capital Bonds (CB)2 • Renovate South Murray Hall $16,800,000 CB2 • Construct new classroom building and undergraduate $9,000,000 CB2+Private3 study center • Renovate existing business school building $10,000,000 Private3 • Construct new business school building $25,000,000 Private3 • Renovate Library Plaza $650,000 Private1 • Construct new architecture building $19,460,000 Foundation Grant3 • Construct ATRC Building at OSU-Tulsa $45,000,000 Tulsa1+CB • Multimodal Transportation Center & Parking Garage $15,000,000 Federal Appropriations1 • Renovate Veterinary Medicine Health Science Centers $13,000,000 CB2 Animal Diagnostic Lab • Construct building for Hospitality Mgmt. Program $10,000,000 Private3 $239,910,000 1 = Funding pledged 2 = $500M capital bond before Oklahoma Legislature this session 3 = potential donor identified but no commitment secured

18. Priorities Endow Colleges and Departments Faculty Chairs Faculty Development Student Scholarships and Fellowships Student Leadership and Wellness Academic Facilities Library Campus Beautification Marketing and Promotions We Must Raise Funds For Academic Programs

19. Fund-Raising Highlights Since January 2003 • Largest gift pledge in history of institution - $70M • Largest corporate donation in history - $7.5M • Other large corporate gifts • Devon Corporation - $2.3M • SBC Corporation - $3.00M • Chesapeake - $0.50M • First endowed college - donor with state match

20. We Must Build Our Academic Reputation • First and foremost, the quality of faculty and students drives academic reputation. • However, we also must “tell the world” what these faculty and students are doing. Oklahomans need a better understanding of OSU, and we need to tell “our story” in a more profound way. This must be done with a commitment to marketing and communications.

22. OSU SCHOLAR DEVELOPMENT AND RECOGNITION A Decade of Undergraduate Success • Attracted national recognition for OSU as an innovative and successful approach to motivating and rewarding top scholars. • Scholarships Won • Rhodes 1 Marshall 2 Truman 13 Goldwater 12 Udall 2 Rotary Ambassadorial 5 Pickering Foreign Service 1 USA Today All-American First/Second Team 4 Gates 2 (in the last 2 years) • Other Programming • Wentz Research Projects, $4000 per year for top undergraduates to perform mentor-directed research. • Wentz Leadership Scholarships, $2500 awards for OSU’s best scholar/leaders. • Summer Study in England (3 successive programs in Oxford/Cambridge for 15 top students each year).

23. What We Must Do to Build Academic Resources • The University’s central fund-raising capability has been strengthened to focus on academic priorities. • We must convince the Oklahoma legislature to invest more in its comprehensive institutions so that we can strengthen the faculty. • We must convince the Oklahoma congressional delegation to secure directed federal appropriations to enhance our research capacity in areas that contribute to economic development.

25. Oklahoma State University - General UniversityState Appropriations and Tuition as Proportions to the Total Budget

26. Oklahoma State UniversityFY 2006 Budget Needs

27. As a State - Oklahoma Has a Weak Research Profile • Oklahoma’s Fed R&D funding capture rate $55 per capita • National Fed R&D funding capture rate $269 per capita Leave $738,000,000 in federally-sponsored R&D funding on the table each year Total economic impact of $1,347,000,000 Directly creates 26,495 jobs and indirectly an additional 9,020.

28. Oklahoma State University Research Model Students (UG/G) Educational Value Produce Knowledge Teaching Faculty Prestige/Reputation University Research Service Income (Univ./Faculty) Income (Univ.) I.P. & Technology Economic Development (Local, Region, State) Become a More Research Intensive Institution • Focus on interdisciplinary approaches • Focus on research income and technology transfer • Outcomes oriented • Highly entrepreneurial • Build off our land-grant legacy • Targeted research strengths • Basic, applied & strategic research • Focus on student outcomes & research education

29. Economic Impact Analysis of “High-Tech” Companies in the Stillwater Area Which Nucleated Out of OSU • 35 companies • 642 employees • average annual salary of $40,000 = $25.7M annual payroll Annual Impact • Number of primary and induced jobs = 1,179 • Total personal income for both primary and induced jobs = $35.7M • Local tax revenues = $742,000 annually • State tax revenues = $2.35M annually Five-Year Impact (assuming no job growth and constant payroll over the period) • Total personal income over period (both primary and induced jobs) = $178.7M • Local tax revenues = $3.7M • State tax revenues = $11.8M

30. I. Development of Agenda Broad system-wide input (System CEO, Presidents, Deans) Directed Federal Appropriations (Federal Initiative Orange Book) • Guidelines • Project must relate to economic development • All awards, grants, and contracts will be managed by Education, Research and Economic Development Foundation (EREDF) III. Successes • FY04 Total = $17.506M • FY05 Total = $17.589M • Grand total = $35.095M

31. “It is essential to recognize that the real challenge (to higher education) lies in transforming the culture of the institution. Financial or political difficulties can be overcome if the organization can let go of rigid habits of thought, organization, and practices that are incapable of responding rapidly or radically enough.” (Dr. James Duderstadt, President Emeritus The University of Michigan)