I ndiana State University Biennial Budget Presentation to the Indiana Commission

1. Indiana State University Biennial Budget Presentation to the Indiana Commission for Higher Education Presented by President Daniel J. Bradley September 11, 2014

2. Indiana State #1 in Community Service • Washington Monthly College Guide ranks schools in three broad categories: • Social Mobility (recruiting and graduating low-income students) • Research (producing scholarly work and PhDs) • Service (encouraging students to give something back to their country/ community). • Indiana State is ranked #1 in the nation for the second year in a row for the community service its students perform. • In addition, Indiana State ranked #30 overall among national universities between Michigan State and Duke University.

3. Supporting the State’s Higher Ed Goals Indiana State’s Strategic Plan CHE’s Strategic Plan Goals of Indiana State’s strategic plan directly align with those of the State of Indiana and play a unique role in helping the State advance its goals.

4. Supporting the State’s Higher Ed Goals • ISU’s enrollment has grown by 26% since fall 2008 • Graduate enrollment is the largest in history • 24% of ISU students are U.S. minorities • 86% of new freshmen are from Indiana • 53.9% of freshmen are Pell recipients • 28.6% of freshmen are 21st Century Scholars INDIANA STATE ENROLLMENT GROWTH

5. Addressing the State’s Workforce Needs • New programs to help adult students obtain bachelor’s degrees • Bachelor’s in General Studies • Bachelor’s in Civil Engineering Technology • (Developed in partnership with Ivy Tech) • B.A.S. programs in Technology and Health Services • (Designed to provide baccalaureate degree option for individuals with A.A.S. degrees) • Continued growth of DegreeLink initiative with Ivy Tech • Added 7 new online bachelor’s degrees since 2010 (17 programs in total) • New programs to address critical shortages of health care providers • Master’s degree in Physician Assistant Studies • Doctor of Nursing Practice • Doctor of Physical Therapy • Master’s degree in Occupational Therapy • Master of Social Work • Doctorate of Health Sciences

6. Indiana State Leading Statewide Initiatives • Degree mapping through Degree Works and MySAM program • Academic coaching through Inside Track • Four-Year Graduation Guarantee • Simplification of degree programs/majors • Summer Initiative to keep 21st Century Scholars on track • Open Source Textbook Initiative

7. Improving Persistence and Completion • Created 8-week course options for mid-semester for students who drop a class • Expanded summer school options • Expanded accessibility to Foundational Studies courses, including more online courses • Discounted summer tuition for seniors within range of degree completion • Created University College

8. Early Results: Retention on the Rise • Retention of first-year students has increased 3.9% in the last 2 years (6.4% in 4 years) • Retention of first-year African-American students is also up by 3.9% in 2 years (12.5% in 4 years) • Retention of first-year 21stCentury Scholars is up 7.5% in 2years

9. Helping 21st Century Scholars Stay On Track • New rule requires Scholars to earn 30 credit hours per year to retain full scholarship • ISU launched an aggressive communication plan to make scholars aware of new rule • ISU also provided scholarships of up to 6 free summer credit hours and 50% discount on summer housing to help those who had completed between 23 and 29 hours • Results: • 49% of 21st Century Scholars completed 30 hours by end of spring (up 16%) • 61% completed 30 hours by end of summer (increase of 26.5%)

10. Student Success Initiatives Produce Results But Cost Significant Dollars

11. Investment in Education Pays Graph recreated from The New York Times Magazine article: “Am I supposed to be here? Am I good enough?” – Source: Ron Haskins “Education and Economic Mobility”

12. Graduation Gap: Challenges for Low-Income Students High-scoring college students are more likely to graduate if from well-off families, and the gap is even greater for lower-scoring students. Graph recreated from The New York Times Magazine article: “Am I supposed to be here? Am I good enough?”– Source: Anthony P. Carnevale and Jeff Strohl “Rewarding Strivers.”

13. Line Item Appropriations Request 2015-17

14. Line Item Appropriations • DegreeLink: $460,245 • (2,397 graduates since 1999, 551 in last 2 years) • Nursing Program: $204,000 • (1,068 graduates since 2008, 385 in last 2 years) • Indiana Principal Leadership Institute: $600,000 • (116 principals and 114 teachers have participated on-campus; an additional 47 new administrators participated in the INALI program run by IPLI)

15. Capital Budget Request 2015-17

16. College of Nursing, Health and Human Services Building Renovation/Expansion The College of Nursing, Health and Human Services Building was constructed in 1961 with an addition built in 1986. The renovation and expansion will provide much-needed classrooms, laboratories and office space for our growing health-care programs.

17. CNHHS BUILDING RENOVATION/EXPANSION • 6 new health-related degree programs created in last 4 years • Building does not meet today’s OSHA or ADA guidelines. • Classroom and laboratory space does not meet instructional or technology needs of today’s students. • ISU’s scheduled annual fee replacement appropriation for debt service to decrease by about $3 million during 2015-2017 biennium, offsetting a large portion of project’s $64 million cost • Project will increase intra-professional educational opportunities • State’s investment will help produce more health care workers to improve health and wellness care for Hoosiers.

18. CNHHS ENROLLMENTS

19. ICHE Performance Funding 2015-17

20. ICHE Performance-Based Funding ICHE Priorities

21. Performance Funding Formula • 17.3% increase in each category needed to earn our money back • Not an accurate measure of Indiana State’s value to the State of Indiana • $3.9 million reduction would significantly reduce our ability to provide services to our students

22. Value What’s Important

23. Tuition & Operating Appropriation per Hoosier FTE (Adjusted per CPI)

24. Budget Planning Assumptions • Indiana State remains conservative in its budget planning which is based on the following assumptions: • 0% increase in state operating appropriation • 2% increase in enrollment • 2% increase in tuition • $1 million annual reallocation

25. Performance Funding Observations • The ICHE Performance Funding model is not helping in the achievement of ISU’s and Indiana’s overall goals. • Institutions are incentivized to compete and sometimes are rewarded for the work of others. For example, dual credit dramatically helps 4-year graduation rates of high-achieving students. • Overall resident degree-seeking enrollment at the state’s public institutions is down 9.4% since 2009. The incentives are counter productive to seeking and enrolling low-income students with less than a stellar high school record. • A scenario with a 7% reallocation and no new money would reduce Indiana State’s funding per resident FTE in FY2017 to less than half the value, in real terms, of that in FY1990. • Dollars at risk for the next biennium are related to performance that occurred as much as a decade ago. Low enrollment in 2004-06 and high enrollment in 2007-09 are the keys at this time.

26. Closing Comments Indiana State respectfully requests that its operating base appropriation for 2015-2017 be kept at the 2013-2015 level of $67,308,231.

27. Indiana State University Biennial Budget Presentation to the Indiana Commission for Higher Education Presented by President Daniel J. Bradley September 11, 2014