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2018-2024 Six-Year Academic, Financial, and Enrollment PlanAugust 22, 2017
Timothy D. Sands, PresidentThanassis Rikakis, Executive Vice President and ProvostM. Dwight Shelton, Jr., Vice President for Finance and CFO
Advancing Virginia Tech
As a Global Land-Grant Institution
Timothy D. SandsPresident
Strategic Planning at VT
Beyond Boundaries: A 2047 Vision Propel VT as a Top 100 global land-grant
institution
Strategically address the challenges and opportunities presented by the changing landscape of higher education
Initial work has identified several key concepts that shape the future of the institution
Beyond Boundaries
Actions Underway
Growing Enrollment – scaling to address demand and provide resources to support student access and affordability and accelerate research activity.
InclusiveVT - accelerating efforts to make VA Tech accessible to best and brightest students and faculty and to further reflect diversity.
Beyond Boundaries Scholars – reducing barriers to enrollment by underrepresented and high-achieving students.
Business Engagement Center –forging deeper relationships with external partners, explore diversified funding models, and develop agile frameworks for interaction.
Enrollment Growth Average comprehensive public land-grant research peer
enrolls 34,000 undergraduates Of those peers, the top three in US News & World Report
rankings enroll about 30,000 each
Virginia Tech will enroll approximately 27,000undergraduates in Fall 2017 72% of undergraduates are Virginian
Number of Virginia high school graduates is expected to grow by just 3.6% through 2022 VT enrollment growth may require looking outside state
We are experiencing a significant increase in demand, and undergraduate applications reached a new high for Fall 2017 admission.
Demand is broad-based and includes several areas where Virginia Tech is in a unique position to provide additional access to qualified students.
Growing Demand for a Virginia Tech Education
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
Applications to Virginia Tech
27,226
15,883
Enrollment Growth Growing undergraduates enrollment will allow Virginia Tech to
support the evolving funding model for higher education
Provide resources: In an environment of constrained tuition and General Fund resources, scale can support growing costs.
Expanding Access/Affordability: Additional enrollment allows for scaling of costs, reduced pressure on tuition increases, and generates net revenue to enhance financial aid and pathway programs for Virginia undergraduates
Growing Research Activity: Additional faculty lead to increased research activities, resulting in economic activity for Virginia
Challenge: To maintain/grow Virginia undergraduate enrollment while growing research and addressing affordability, additional nonresident enrollment flexibility may be needed.
Update and Success of 2016 Plan
M. Dwight Shelton, Jr. Vice President for Finance and CFO
Current Environment The university’s financial position is impacted
significantly by four major categories: Enrollment (tuition revenue) State Support (General Fund Per Student) Research Success Philanthropy Cost Containment and Administrative Efficiency
Current indicators are positive in many of these categories, and signal continued progress.
Total EnrollmentIn 2015-16 Virginia Tech enrolled over 33,000 total students; more FTE students than any other public four-year institution in the Commonwealth.
Source: SCHEV
1,655
1,936
4,234
4,852
5,091
4,583
4,609
8,446
9,487
20,820
20,324
24,260
28,260
28,456
33,223
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
UVA - W
VMI
UMW
LU
CNU
VSU
NSU
CWM
RU
JMU
ODU
UVA
GMU
VCU
VT
Undergraduate Students Graduate and First Professional Students
Educating VirginiansSince Fall 2004, the university has:
Increased Virginia undergraduate enrollment by more than 3,400 Increased Virginia freshman seats by almost 800 Increased VCCS transfer students by 110%
Growth in enrollment results in more degrees awarded. 5,079
6,215
1,807
1,973
Bachelors
Graduate
Degrees Awarded
Virginia Tech is the leading STEM-H institution in the Commonwealth. Graduated 4,391 students in STEM-H fields in 2015-16 Produced 25% of state’s 4-year public institution total; more than
any other institution in Virginia.
STEM-H Graduates
Together, tuition and General Fund per student combine to generate less purchasing power per student than in 2000-01.
Resources Per Student
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
State Funding and Tuition ChargesIn-State Undergraduate, Inflation Adjusted to 2000 (HEPI)
GF/FTE (Real FY2000 $s) In-State UG Tuition (Real FY2000 $s)
Growth in Research ExpendituresThe academic program is bolstered by a vibrant research environment, which drives knowledge to the classroom, and helps attract faculty.
Virginia Tech is the Commonwealth’s largest research institution.
28 patents and 46 licensed agreements in FY2016
$1.8 million in intellectual property licensing in FY2016
$269
$504
$0
$100
$200
$300
$400
$500
$600
2004 2015
Research Expenditures $ in millions
Administrative Spending
Data Source: IPEDS
Administrative spending is a smaller portion of the VT budget than at most of our peer institutions.
22% 20% 20% 15%
78% 80% 80% 85%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Virginia ResearchAverage (n=2)
Public ResearchAverage (n=72)
SCHEV Peer Average(n=25)
Virginia Tech
Administrative Costs as a Percent of Total Core ExpendituresFY2015
Remaining Core Expenses(Instruction, Research,Public Service, etc.)
Academic & InstitutionalSupport
July 2017 – the American Council of Trustees and Alumni (ACTA) published a report on administrative costs in higher education.
Using IPEDS data, study calculates ratio of institutional support (administrative) spendingcompared to instruction and academic support (instructional) spending.
Virginia Tech ratio is 0.14, meaning VT spent $0.14 on institutional support for each $1.00 of spending on instruction and academic support. This ratio is lower than peer averages.
Administrative Spending
0.18 0.18 0.170.14
0.00
0.05
0.10
0.15
0.20
Public Research (n=81) SCHEV Peer Average(n=25)
Virginia Research (w/o VT)Average (n=2)
Virginia Tech
ACTA Administrative Cost RatioFY2015
Data Source: IPEDS
VT is #23 Best College for Your Money Money Magazine’s measure of Quality, Affordability, and Alumni Success
VT is #1 in “Their Students Love These Colleges” The Princeton Review
Average salary within 5 years: $57,500 Payscale.com/Money Magazine
47% of Virginia resident graduates have no debt Average debt of resident borrowers is $26,273 ($30,100 nationally)
National figures from the Project on Student Debt by the Institute for College Access & Success.
Of those with debt: 1.6% Cohort Default Rate (11.3% nationally) 2013 CDR data. The 2014 DRAFT CDR data (to be published in September) has VT at just 1.4%.
Federal Loan Repayment Rate (3YR): 80% (46% nationally) Students with federal loans who are able to pay down at least $1 of the principal balance within 3 years of leaving institution.
19
Virginia Tech: Value Added
Academic Plan
Dr. Thanassis RikakisExecutive Vice President and Provost
Helping Build the Commonwealth’s 21st Century Economy
Market needs change on a much faster cycle than academic disciplines accrue knowledge or research infrastructure can develop
Virginia Tech is pursuing methods to ensure institutional programs are responsive to our rapidly changing external environment
Cha
nge
Time
The Responsive 21st
Century Land Grant University
Building Communities of Discovery and Learning for Life
College Access
Collaborative
K-12 Partnerships Industry PartnershipsFormative Training
Access and Diversity Financial Aid Enrollment Growth
VCCS & Other 4YRs
In VA
Virginia Tech Lifelong Learning
Opportunities
Industry, Government, Not for Profit
Sectors
Adaptive Learning
From Basic Research to Market Driven Outcomes
BasicResearch
Applied and Translational
Research
Market Needs
Partnership – Academia, Industry, Government and Community
A Statewide Strategy Focused on Virginia Tech and State Strengths
InfrastructureBlacksburg & Beyond
Advanced ManufacturingDanvillePetersburg
Data, Artificial Intelligence and SecurityNational Capital Region
Health Science & Technology Innovation CorridorRoanoke
The Responsive 21st Century Land Grant University
Experiential Learning and Partnerships• Co-labs• Internships/Externships• Undergraduate Research• Living Learning Communities
Transdisciplinary Discovery• Faculty Clusters• Shared Facilities• Cross-Cutting Training and
Credentials
Disciplinary Depth• Colleges and Departments• Degrees
Research ImpactResearch at Virginia Tech spans several growing domains.
Virginia Tech CarilionSchool of Medicine
(VTCSOM)Integration
Carilion ClinicVTC Research
Institute
VTC School of Medicine
Physician Educators
Physician Scientists
Health Science and TechnologyCampus at Roanoke Innovation Corridor
Community Partnerships
Enhanced Health CareDestination
Practice
IP Transfers, Patents,
Start-Ups
Research
Philanthropy
Virginia TechEducation
Biomedical Research
Basic Science Education
Industry Partnerships
Interdisciplinary Research
Total Comprehensive University
Health and Education Driving Economic Development in Southwest Virginia
Chronology of Development 2007- VT, Carilion Clinic, and state announced a public-private partnership:
VTCSOM and Research Institute to address physician shortage.
2008 - Commonwealth approved a $59Mcapital project.
Fall 2010 - Charter class enrolled
May 2016 - General Assembly encourageddevelopment of the partnership, includingthe potential for VT to acquire VTSCOM
August 2016 - VT BOV approved intent to acquire and integrate VTCSOM into VT
May 2017 - Included in VT long-term enrollment projections
Accreditation
Acquisition of another accredited institution is a substantive change to VT’s regional accreditation status
Process overseen by Southern Association of Colleges and Schools Commission on Colleges (SACSCOC)
Change must also be approved by the Liaison Committee on Medical Education (LCME), which oversees accreditation of medical education programs
Coordination with State Council of Higher Education for Virginia on status of programs at integration
2018-19Revenue
Medical Student Tuition (~$52K) $7.3Partnership Nongeneral Funds 6.9Miscellaneous 0.3
Total Revenue 14.5
ExpensesMedical Instruction (14.5)
Net $0
The medical program will be funded by existing, self-generated revenue.
Currently: Joint integration workgroups coordinating various aspects of integration: accreditation, communications, facilities, finance, IT, libraries, personnel, student services
November 2017: Boards of both institutions approve acquisition
July 2018 – VTCSOM becomesVirginia Tech’s 9th college
2018-19 – Site visit by SACSCOCand LCME for accreditation
Key Initiatives of 2018-2022
Six-Year Plan
Faculty and Staff Compensation: Maintaining an annual merit process can support retention of high-performing faculty and staff. The university is currently at the 33rd percentile of the peer group faculty salary average.
Increase Access for Virginia Undergraduates and Support Growth of Stem-H Degrees: This is the core of our effort to advance Virginia Tech as a contemporary land-grant university.
Develop Destination Areas: Instruction and research clusters that are focused on the following areas:
Adaptive Brain and Behavior Data and Decision Sciences Global Systems Science Integrated Security Intelligent Infrastructure for Human-Centered Communities
Opportunities for Commonwealth Partnership
Advance Strategic Research Opportunities: The university will expand partnerships in strategic areas including:
Health sciences/neuroscience Autonomous Systems Cybersecurity
Expand Degree Pathways: Increased access and affordability to underrepresented Virginians, including:
Urban and rural K-12: VT’s College Access Collaborative Virginia State University: bachelor to master’s program at VT Danville Community College: manufacturing engineering partnership Virginia Western Community College: health science transfer program
Agency 229: Advance Agricultural Competitiveness: An integrated research and extension effort will be at the forefront of supporting a sustainable global agricultural and natural resource industry. A strong partnership with relevant industries is the key to the success of this initiative.
Opportunities for Commonwealth Partnership
Virginia UndergraduateTuition and Fee Increase History
2017-18 continues the slowing of in-state undergraduate tuition increases.
9.8%9.6%
3.9% 4.9%
4.9%
3.9% 2.9%
2.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Perc
enta
ge In
crea
se o
ver
Prev
ious
Yea
r
University Division -Nongeneral Fund Revenue Estimate
Tuition % Increase Placeholder
2018-19 2019-20
Resident Nonresident Resident Nonresident
Undergraduate 2.9 2.9 2.9 2.9
Graduate 2.9 2.9 2.9 2.9
Vet Med 2.0 2.0 2.0 2.0
Medicine N/A N/A 3.5 3.5
Access to higher education is a core tenet of the university’s Land Grant mission
Aid programs targeted at Virginians with need, first-generation Virginians, and K-12 pathway participants
Commitment in Management Agreement to reduce unmet need and mitigate tuition increases Funds for the Future (FFF) is primary tool to mitigate tuition increases
Financial Aid Strategy
Family Income (AGI)
Undergraduate Tuition & Fee
Increase Protection*
Example Impact of FFF Protection for Undergraduate Student
Total Tuition & E&G Fee Increase
Net Impact of Tuition & Fee
Increase$0 - $74,999 100% 2.9% 0%
$75,000 - $87,499 50% 2.9% 1.5%$87,500 - $99,999 25% 2.9% 2.2%
Capital Priorities
Virginia Tech Capital Priorities
Agency 208General
FundNongeneral
Fund Total1 Undergraduate Science Laboratory $ 74.8 $ 0.0 $ 74.8
2 Data Analytics & Decision Sciences Building 75.0 0.0 75.0
3 Replace Randolph Hall 155.1 27.4 182.5
4 Corps Leadership & Military Science Building 29.9 20.0 49.9
5 Renovate Robeson Hall 44.6 0.0 44.6
Agency 2291 Global Systems Sciences Building $ 94.4 $ 0.0 $ 94.4
2 Renew Livestock and Poultry Research Facilities, Phase II 24.3 0.0 24.3
Focus on: Repair and replacement of deteriorating buildings, Increase of lab space for STEM-H programs, Investing in cost-containment and efficiency efforts
Restructuring
Restructuring Restructuring has been successful at Virginia Tech:
Increased efficiency
Improved operating environment and responsiveness of services
Reduced cost of operations, purchasing
Yet some tenets of Restructuring have not been fully realized:
Compensation authority
Interest Earnings and Credit Card rebate
RestructuringIn the Future
Since Restructuring, VT has increased Virginia undergraduate enrollment by over 3,400 students
In-state/Out-of-State mix has remained steady at 72% over that time period
VT has slowed the rate of growth in tuition
Increase enrollment flexibility (percentage split) and continue with the next step in restructuring will allow the university to capitalize in high-demand areas
Generating resources while holding down resident tuition
Ensure academic quality to compete with other states and drive economic development in Virginia
Achieve additional economies of scale and control costs
Moving Forward
Partnering for the Future
In partnership with the Commonwealth, the university can Create opportunities for Virginians to achieve personal and professional success
Discover solutions to cross-disciplinary challenges that affect the world
Contribute to Economic Prosperity in Virginia
We understand the financial challenges of the state Limited resources can be targeted to advance initiatives that generate incremental
resources for the commonwealth
Research investments lead to long-term growth of the economy and workforce
Beyond Boundaries is more than an exercise State of mind, pushing faculty, staff, and students to dream big
Advancing Virginia Tech as a global Land Grant institution
Questions?