Academic Leadership Retreat August 28, 2013 1. Journey to the Top25 2

Academic Leadership RetreatAugust 28,

20131

Journey to the Top

25

2

Students

§ We are a student-focused university

§ How we treat our

students is important

§ One Stop

3

June Board of Trustees

4

§ 6% Tuition Increase

§ 5% Raise Pool – 3rd year in a row

§ Fee Increases

§ Transfer streets to university

Governor’s Review of Higher Education

§ Access

§ Quality

§

Preparin

g

students

for

careers

5

Branding & Communications

6

Branding & Communications§ Branding

contributes to

success

§ Consistency is essential

§ Good stories reinforce

the brand and everyone

benefits

§ Buy-in is critical

7

§ We are strategic communicators

- Branding provides framework

- Work with campus partners

- Use data to make decisions

- Branding is a continual process

Branding & Communications

8

Branding & Communications

Development

$92,402,645 raised

32,540 donors

10

Development PrioritiesSupport the Journey to the Top 25

11

§ Chairs, professorships,

and faculty awards

§ Scholarships and Fellowships

§ College Priorities

§ Deans, Department Heads

vital to fundraising

Athletics

§ Not most important, but most visible

§ Clean, successful program is critical

§ Most top public universities succeed in both

§ Working toward better financial model

12

Athletics

13

§ Suspended $6 million/year of support -- no impact on

current commitments

§ Athletics funds facilities & utilities – budget reserve inadequate

§ 80% of student athletes pay out-of-state tuition

§ UTM and UTC each invest ~$5 million annually

§ 38 of Top 50 publics transfer money to athleticsVirginia $13.1 million

Georgia Tech $18 million

Rutgers $27 million

Texas A&M $5.2 million

Alabama $4.5 million

Athletics§ Academic success

– Record performance – student athletes 3.05+ GPA

– 58% of student athletes 3.0 GPA or higher

– 115 student athletes on Dean’s List

– Herman Lathers – Chancellor’s

Citation for Extraordinary

Community Service

14

New Tuition Model

15

§ Take 15, graduate in 4

§ Applies to new undergraduates in Fall 2013

§ Full-time students pay for 15 hours

§ No additional cost for 15+ hours

§ Expectation – limit tuition increases

to 3% annually for three years for

Class of 2017

Average Net Price of Tuition

$(5,619.00)

16

$2,945.00$3,700.00 $3,752.00

$(8,000.00)

$(6,000.00)

$(4,000.00)

$(2,000.00)

$- ‐

$2,000.00

$4,000.00

$6,000.00

BoIom QuarKle ($0 - $46,515)‐

Second QuarKle ($46,516

- ‐$95,444)

Third QuarKle ($95,445

- ‐

$151,369)

Fourth QuarKle

($151,370 - ‐

$1,506,000)

In-State Tuition at Four-Year SchoolsFY 2012-2013A comparison of undergraduate in- state‐ maintenance and mandatory fees between four- year higher‐ educaKon insKtuKons in Tennessee.

InsKtuKon Mandatory UG Maint.Fees Fees* Total $ from

UTKInsKtuKon

TBR schools based on 15 credit hours each semesterSource – Tennessee Higher EducaKon Commission

17

Mandatory Fees

Middle Tennessee 1,594

UT ChaIanooga 1,490

UT Knoxville 1,290

University of Memphis 1,256

AusKn Peay 1,224

Tennessee Tech 1,200

UT MarKn 1,103

East Tennessee 1,075

Tennessee State 930

Sorted by Mandatory FeesSorted by Total Fees

*Higher than UT Knoxville

UT Knoxville 1,290 7,802 9,092

University of Memphis 1,256 6,978 8,234 858Middle Tennessee *1,594 5,898 7,492 1,600UT ChaIanooga *1,490 5,722 7,212 1,880UT MarKn 1,103 5,978 7,081 2,011East Tennessee 1,075 5,922 6,997 2,095Tennessee Tech 1,200 5,748 6,948 2,144AusKn Peay 1,224 5,694 6,918 2,174Tennessee State 930 5,772 6,702 2,390

Student DebtAverage UT student debt (2012-13):

UT students with NO

debt: Average expenses:

Less than $21,000

51%

Less than $26,000/year

Most scholarships expire:

4 years

18

We Remain a Great Value§ Great value

§ Future of tuition increases

§ Financial burden on our students

§ Net tuition is low

19

20

Journey to the Top 25

UTK Position

Metrics UTKJune 2010

UTKJune 2013

UTK Change 2010-2013

ACT Equivalent 29/24 29/24 No change

Retention Rate 84% 85% +1 pt

6-Year Graduation Rate 60% 66% +6 pt

Ph.D. Degrees 277 319 +42

Master’s and Professional Degrees 1,845 1835 - 10

Federal Research Expenditures $70 M $127 M +$57 M

Total Research Expenditures $165 M $230 M +$65 M

Tenure-Line Salary Range $66 to $107 K

$73 to $121 K

+$7 to $14 K

Undergraduate Student/Tenure-Line Faculty

20 Waiting ondata

Faculty Awards 10 Waiting ondata

Teaching and Support Expenditures/ Student

$16,100 $17,975 + $1,875

Endowment/ Student $14,380 $15,803 + $1,423

Progress

22

§ 1 stayed same – Met our goal

§ 8 Metrics improved

§ 1 decreased

§2 Metrics TBD

72

74

76

78

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Freshman Retention Rate

1st to 2nd Year Retention Rate; 2002-2011 Freshmen Cohort Years

23

77.8% 78%

79.6%

81.7%

84.0% 83.6% 83.8%

86.2%

84.5% 84.6%

80

82

84

86

88

Freshman Retention Rate

§ Even great players have a coach

§ We want all of our students to

succeed and complete their

degrees

24

Graduation RatesFour, Five and Six Year Graduation RatesFall Cohorts 1999 - 2008

FOUR- ‐YEAR

FIVE- ‐YEAR

SIX- ‐YEAR

Preliminary

28.7% 30.6% 29.4% 30.0% 31.2% 30.6% 33.7% 35.7% 36.7% 39.0% 40.0%

23.4%24.2% 23.7% 24.7% 24.3% 25.2%

24.8%25.8% 25.3%

5.1%5.3% 4.7% 5.1% 5.1% 4.7%

4.7%4.6% 6.0%

10%

0%

20%

30%

40%

50%

60%

70%

80%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Fall Cohort Years

57.2%

63.2% 66.1% 68.0%

60.6% 60.5%

57.8% 59.8%60.1%

25

Graduates2011-2012 Academic Year

45393911

2724

16732146

1696 1514 1312959 1116 729

39

2205

954

1370

2047 826

462 556320

540 132

0

1000

2000

3000

4000

5000

6000

7000

8000

Bachelor's Graduate/Professional

6,744

4,865

4,0943,720

3,001

2,158 2,070

1,4991,8801,248

768

26

Graduate Degrees

1845 1807 1726 1835

277 258 270319

0

500

1000

1500

2000

2500

2010 2011 2012 2013

PhD

Masters and Professional

27

ResearchMetrics

28

AREAS OF FOCUS

INDICATORS 2010BASELINE

2013ASSESSMENT

THREE- ‐YEAR PROGRESS

CHANGE IN GAP TO TOP 25

TARGET2010 VS. 2013

RESEARCH FEDERAL RESEARCH EXPENDITURES

$70 M $127 M +57 M FAVORABLE

TOTAL RESEARCH EXPENDITURES $165 M $230 M +65M FAVORABLE

Research/Scholarship§ Governor’s Chairs

§ National Academy of Science

§ National Academy of Engineering

§ Bredesen Center

§ Center for the Humanities

§ Anderson Center

for Entrepreneurship29

Faculty and StaffMetrics

30

AREAS OF FOCUS

INDICATORS 2010BASELINE

2013ASSESSMENT

THREE- ‐YEAR

PROGRESS

CHANGE IN GAP TO TOP 25

TARGET2010 VS. 2012

FACULTY AVG. TENURE- ‐LINE SALARY RANGE

$66 to$107K

$73 to$121K

+$7 to$14K Favorable

UNDERGRADUATE STUDENTS/TENURE- LI‐ NE FACULTY

20 WaiKng on data

Faculty

$73

$90

$85

$80

$75

$70

$65

$60

$55

$50

$95

Average Assistant Professor Salary; Fall 2012

$100

31

AspiraKon Target Peer

FacultyAverage Associate Professor Salary, Fall 2012

$120

$86

$90

$80

$70

$60

$50

$100

$110

AspiraKon Target Peer

UTKup 1

positionsince 2011

32

FacultyAverage Full Professor Salary, Fall 2012

$190

$121

$130

$110

$90

$70

$50

$150

$170

AspiraKon Target Peer

UTK up 1 position

since 2011

33

Faculty and Staff

§ Raises since 2011 – 16%

compounded (5% per year)

§ $52M in salaries since 2011

§ Permanent

funding

stays within

college34

Faculty and StaffAccomplishments

§ Endowed 37 chairs, professorships, and

faculty awards

§ Implemented career paths for lecturers

§ Completed a benchmarking compensation study

§ Performance-based merit pay

35

Top 25 Infrastructure ProgressProjects

underway üStudent

Union üStrong Hall

üResidence Hall

üLandscape Master

Plan

Recently completed

ü Natalie Haslam Music Center

ü John D. Tickle Engineering Building

ü Humanities and Social Sciences

ü Greve Hall

ü Brehm Animal Science

and Food Science Buildings

36

Top 25 Investments§ $10.4M invested in the past 3 years

– Strategic Instructional Fund

– Research

– Relieve bottleneck courses

– Faculty Hires

– Development and Alumni

– Advising

– First Year and Transition Programs– Vice Chancellor for

Diversity37

38

Looking Forward

Civility/Diversity/Citizenship

§ Core value

§ Everyone’s

responsibili

ty

§ Critical to

achieving

excellence

§ Vice Chancellor

for Diversity

30

Internationalization

40

Productive Partnerships

41

§   $6.9M formula phase-in

§   $7.4M appropriation improvements

§   $3.0M College of Engineering

§   $1.2M fringe benefit funding

§   $2.6M 1.5% salary increase (55%)

$21.1M proposed funding

§   $24M steam plant

§   $6M deferred maintenance

§   $20 million ($5m/year x 4 years) fora successful NSF Super Computer Proposal

FY 2013-14 Budget

42

Fixed costs, key iniKaKves, and strategic investments

FY 2013- 14 ‐Budget

In millions

43

Salary plan $11.9

College of Engineering $ 3.0

Systems charge increase/ recalibraKon $ 1.9

Hires / promoKons / ladders $ 1.1

Faculty startup commitments $ 0.8

Contract escalaKons & new building costs $ 1.4

Scholarship commitments $ 4.7

Top 25/academic reinvestments $ 4.3

Benefits + Grad Health Insurance $ 1.6

Waivers / Summer / DE / Shares $ 6.0

FY 2012-13 Proposed Uses of Revenues

Finances

44

§ Why are budgets tight?

– Tuition increases also cost us more money

– Raises $52M

– Construction/Renovation

– Strategic Top 25 investments

– Missed UG enrollment projection last year

– Graduate Fellowships ($12M)

Plan Going Forward

45

§ Tuition primary revenue source

§ 15-4 is being implemented

§ UG Enrollment goal=21,500, Fall 2014

§ Creative proposals to the state

Plan Going Forward

46

§ How can we be more confident in year-to-

year funding?

§ Why is athletic funding model changing?

47

ChallengesUT Florid

a State

Clemson Texas A&M

UC-Davis

% of classes <20 33% 34% 52% 19% 33%

% of classes of 50 or more

8% 16% 14% 25% 25%

First-year retention

85% 91% 91% 92% 92%

Total students 27,018 40,695 20,768 50,227 32,354

Number of faculty 1,458 1.268 1,051 2,034 1,596

Student/Faculty Ratio

19 32 20 25 20

Challenges

48

§ Board of Trustees – What do faculty do?

How much do they teach?

§ What is the role of higher education?

§ How can the cost of a degree be reduced?

–Increase productivity? Cut costs?

§ Political challenges…

Future

49

§ We have set our vision

§ We have made significant progress

§ But I need your continuing

advice, support, and help

50

Questions/ Comments