Opportunities for Renewal and Reflection During the 2014-15 Academic Year

1. Opportunities for Renewal and Reflection During the 2014-15 Academic Year Presented to the Faculty Senate of East Tennessee State University September 22, 2014

2. Presentation Overview • ETSU's core values, consistency in mission, and recent strategic priorities • Budget update and a review of ongoing budget related initiatives • Tennessee Promise • Capital projects and fundraising update • Open dialogue

3. Institutional Values • ETSU pursues its mission through a student-centered community of learning reflecting high standards and promoting a balance of liberal arts and professional preparation, continuous improvement, and based on core values where: • PEOPLE come first, are treated with dignity and respect, and are encouraged to achieve their full potential • RELATIONSHIPS are built on honesty, integrity, and trust • DIVERSITY of people and thought is respected • EXCELLENCE is achieved through teamwork, leadership, creativity, and a strong work ethic • EFFICIENCY is achieved through wise use of human and financial resources • COMMITMENT to intellectual achievement is embraced.

4. ETSU's Core Values, Consistency in Mission • “While the purpose of the Normal School Law of 1909 is declared to be ‘For the education and professional training of teachers for the public schools of the state,’ in a broader sense it is interested in making better living conditions throughout the territory which it was established to serve.” • Four general principles were recognized in 1912 by our first president, Sidney Gilbreath: (1) to support the goal of regional service; (2) scholarship; (3) the study of education as a science, practice in teaching; and, (4) a knowledge of the conditions and needs of the State. • The goal of regional service remains at our core in 2014. As recognized repeatedly President’s Higher Education Community Service Honor Roll, ETSU is engaged in solving community problems and placing students on a lifelong path of civic engagement. • ETSU is a beacon for social and cultural education, the engine of economic development across the region, the purveyor and transmitter of knowledge, and foundation of the community as a whole. • Citation – History of the East Tennessee State Teachers College. Burleson, Sinclair. 1947

5. Strategic Priorities (2010-2015) • Access - ETSU will increase access to and participation in its educational programs while providing the human, financial and infrastructure resources needed to support these programs. • Student Success - ETSU will increase persistence to graduation and the number of graduates while maintaining high academic standards. • Scholarship - ETSU will support and enhance scholarship through research, service and creative activity. • Stewardship - ETSU will advance a culture of stewardship that promotes the wise use of resources. • Diversity - ETSU will foster a university community that enhances and supports diversity of people, thought and culture. • Arts and Culture - ETSU will expand engagement in the arts and culture among students, faculty, staff and the community. • Sustainability - ETSU will create a university community that is aware of, engaged in and committed to advancing sustainability.

6. The Committee for 125 and the 2015-20 Strategic Planning Process • Through the Committee for 125, we explored issues and opportunities to meet the changing expectations of post-secondary education. These include: • Fluid policy landscape at the state level as exemplified by Complete College Tennessee • Privatization of public higher education • Shifting demographics and the diminution of “traditional” populations • Athletic programming, affiliations, revenue enhancement, and recognition of the changing nature of the NCAA • Philanthropy, community engagement, alumni support • Research and development, business incubation centers, externally sponsored research, and the role of ECD at ETSU • Structural issues internal and external to ETSU • Recognition of the need to develop to budget, planning, and reporting mechanisms • The work of the Committee for 125 provides our foundation as we prepare for the development of the 2015-20 Strategic Plan and create structures that align planning and budgeting across the institution.

7. The Committee for 125 – Review and Update • Through multiple venues, we are striving to create a culture of transparency in which processes are open, transparent, and inclusive. • Initiated administrative and infrastructure review and redesign for greater efficiency and growth and innovation in budget and finance systems, academic programming, institutional advancement, university relations and marketing, and student affairs. • Created a comprehensive first year experience, increased student financial support, developed an integrated student advising system, and expanded student-centered services both physical and virtual. • Enhanced access-oriented enrollment management programs. • Enhancing our commitment to diversity, inclusion, and engagement across the university • Developing Key Performance Indicators related to enrollment, endowment, community relations, cost structures, asset utilization, research productivity, student outcomes, etc. • Developing strategic partnerships with civic and business leaders, focusing on opportunities to generate revenue, enhance research, broaden our market presence and support the objectives of the Committee for 125 to further advance the university.

8. ETSU – Data Highlights (2013-14) Enrollment: 14,957 Undergraduate - 11,820 Graduate - 2,260 Quillen COM - 548 Pharmacy - 329 Full-time - 10,970 Part-time - 3,110 In-state - 82.58% Degrees Conferred: 3,199 Bachelor’s Degrees - 2,314 Master’s Degrees - 574 Doctor of Pharmacy – 74 Doctor of Medicine – 63 Doctor of Education - 33 Retention Rate: 75.4% (F12-F13) Graduation Rate: 51.8% (F07 cohort) Tuition/fees: $3,624.50 (in-state undergraduate), $4,622.50 (in-state graduate) $11,280.50 (out-of- state undergrad), $11,652.50 (out-of-state grad) Total budget: $466,504,860 Research funding: $43 million

9. ETSU – Programmatic Highlights ETSU offers more than 100 undergraduate and graduate degree programs, with 13 on the doctoral level Our College of Nursing is the largest in Tennessee and our faculty maintain 10 nurse managed clinics throughout the region. ETSU is one of fewer than five Computing programs in the US that hold the “triple crown” of ABET computing accreditations—that is, in Computer Science, in Information Technology, and in Information Systems ETSU is one of only 15 universities in the nation to offer the full complement of TRIO programs, which provide educational services and assistance to many first-generation college students. The Quillen COM is currently ranked 5th in the nation for excellence in rural medicine education and ETSU is consistently ranked among the top 10 schools in the country for rural medicine. Not only is the Bluegrass, Old Time, and Country Music program the oldest in the nation, its Grammy nominated faculty are annually recognized for excellence by the International Bluegrass Music Association. Our ROTC Ranger Challenge team was ranked as the top Army ROTC team in the state of Tennessee for the third year in a row.

10. Budget Update • With implementation of the new THEC funding formula, there was a negative impact to the ETSU budget in the amount of $2,468,500 due to the removal of the hold harmless provision. Further reductions in state support are expediting our transition to a publicly located but privately funded university. • Budget reductions totaling 6.2 percent of the base were implemented for 2014-15. The budget adjustments represent permanent reductions to the base, with the understanding that any revenue growth would be used to replenish institutional reserves and/or support strategic goals • Through strategic and dedicated action, we navigated budgeted challenges partially created by a false security in historic patterns of enrollment growth to offset state revenue reductions. • Barring unforeseen circumstances, we do not anticipate the need for additional budget reductions during the current academic year and our focus turns to the work of developing sustainable budget models for ETSU.

11. 2014-15 Census Date Enrollment

12. Current and Projected Number of High School Graduates Source: Western Interstate Commission on Higher Education, “Knocking at the College Door”

13. Budget Review and Structural Change • As part of the work of the Committee for 125, ETSU undertook a review of budget processes, governance structure, policy mechanisms, accountability reporting, and foundation/fundraising structures which culminates with several consultant reports. • Budget Process Committee - Exploring the development of a decentralized budget process that integrates strategic planning and budgeting. • Academic Portfolio Review Committee - Conducting a holistic review of academic and administrative programs and services that includes opportunities for program redesign, interdisciplinary collaboration, and programmatic changes that enhance program viability and student success • Administrative Services Committee - Identifying opportunities for increased quality of service, efficiencies and cost savings. These opportunities will be considered in light of relevance to mission, support of a student-centered growth agenda, and fiscal stewardship. • Committees are actively engaged with the campus in a process that is open, transparent, and inclusive. The website is as follows: http://www.etsu.edu/125/newbudgetprocess/default.aspx

14. CCTA, Promise, and the State Policy Landscape • Sustained pressure to increase enrollment but also enhance retention in light of Complete College • Increased enrollment competition across sectors, ranging from marketing to the rise of associate degree programs • As a result of Common Core, there is growing public concern related to college readiness and student learning outcomes • Increased pressure from state and regional entities to focus on transfer, articulation and completion • Course redesign and student centered models – how do they impact student success? • Western Governors University, PLA, MOOCS and other non-traditional access venues. • Student services, academic support, and the total college experience

15. East Tennessee State University Tennessee Promise Commits to providing on a continuing basis two years of community college or a college of applied technology (TCAT) absolutely free of tuition and fees to graduating high school seniors. The governor transferred lottery reserve funds to create an endowment, with the goal of strategically redirecting existing resources. As part of this program, the Hope Scholarship award amount were changed for the first two years of college to $3,500 annually and $4,500 for the last two years of college. The program makes several changes in various lottery funded scholarship programs, including: funding for former Hope Scholarship recipients to receive Wilder Naifeh scholarships, “last dollar” funds for Wilder Naifeh recipients and high school students participating in dual enrollment classes, and modifying the eligibility period for Hope Scholarships (eight semesters).

16. East Tennessee State University Tennessee Promise

17. Tennessee Promise

18. Tennessee Promise

19. The Impact of TELS at ETSU

20. ACT Scores for Incoming Freshman

21. Capital Projects and Construction Update • Arts Initiative • ETSU authorized to spend $1.5 million to begin the planning process • Engineering review and evaluation of site options • Architectural review and programing efforts underway • Fundraising update – More than $6.4 million raised to date, with significant gifts remaining in the queue • Anticipate funding in the 2015 legislative session • Construction Projects • Parking Garage opened in Spring 2014, which includes support offices and retail space • Beginning planning work for renovation to the Culp Center • Planning and design for football practice and game facilities • Center for Inter-professional Education (Bldg 60)

22. The Importance of the Arts: Economic and Community Development ETSU Fine Arts Facility • Fine and Performing Arts Centers serve as a gathering place for the community and its visitors, providing opportunities for the lifelong expression and appreciation of the arts. • Such centers play a vital role in enhancing the quality of life, bolstering cultural and economic vitality, strengthening tourism, and expanding the educational offerings for communities and regions. • Such centers serve are influential in the vitality of regional economic development and diversify regional footprints. • Programming enhances educational achievement and intellectual capacity and promotes the arts and sciences as an integral part of life.

23. Original Project Scope ETSU Fine Arts Facility • Building Type: Fine Arts Classroom Building • Cost: $39,200,000 • Approved Location: On Campus-adjacent to Univ. Pkwy • Size: 130,000 sq. ft. • 750 Seat Auditorium • 400 seat Classroom • 150 seat Classroom • Theatre Instructional Spaces (21,000 sf) • Music Instructional Spaces (31,000 sf) • Offices and support space • October 2013 – State Building Commission approved project • Programming – Underway

24. ETSU Master Plan ETU Fine Arts Facility

25. Fine and Performing Arts Center – Possible Locations

26. Location Alternatives ETSU Fine Arts Facility

27. Location Alternatives • Option 1 - Lot 1 • Capacity: Minimum of 1,000 seats • Local support needed: • $4,250,000 (250 seats x $17,000 per seat) • $ 500,000 – pedestrian crossing and signal • $ 800,000 – water abatement • $5,550,000 – Total Costs • Option 2 - Lot 1 • Capacity: Minimum of 750 seats • Local support needed: • $ 500,000 – to meet match requirement • $ 500,000 – pedestrian crossing and signal • $ 800,000 – water abatement • $1,830,000 – Total Costs • Option 3 - Campus/University Parkway • Capacity: 750 seats • Local support needed: • $ 500,000 – to meet match requirement • $ 500,000 – Total Costs

28. Procedural Aspects - Project Approval, Design, and Construction ETSU Fine Arts Facility • Project included in Governor Haslam’s 2013 budget for planning and design • Project approved by the State Building Commission • Project presented by TBR to THEC for funding during the 2014 legislative session ($35 Million in state funds) • Project design and architecture designation • Lot 1 and associated property acquisition • PBA approval and allowances made for zoning, site use, etc. • Johnson City donation of property in immediate proximity to the Millennium Center • ETSU and JC negotiate lease and acquisition of restricted portions of the Millennium Center • Project fully funded in 2015 legislative session

29. Questions for Consideration and Discussion • How do we increase enrollment in an environment challenged by the tensions of access and affordability? • How do we diversify tuition revenues across regional, national, and international markets? • How do we compete with Tennessee Promise, which is changing the dinner table conversations about higher education? • How do we maximize the opportunities presented through the emergence of off-site housing? • How do we enhance graduate education at ETSU? • How do we navigate the emergence of new health science schools across the region? • What is our role in the emerging conversations between MSHA and Wellmont? • How do we enhance the culture of research across campus? • How do we develop a culture of faculty engagement and promote the role of faculty at ETSU? • How do we balance tensions across campus regarding who we are and where we need to go in an uncertain environment?

30. Questions and Discussion