Overview Presentation by David J. Schmidly System CEO & President

Oklahoma State University

Overview Presentation by David J. Schmidly

System CEO & President

Spring General Faculty Meeting April 19, 2005

UPDATE ON CRUCIAL ISSUES

OKLAHOMA STATE UNIVERSITYOKLAHOMA STATE UNIVERSITY



Oklahoma State University System One University with Multiple Locations and Missions

Oklahoma State University System One University with Multiple Locations and Missions

OSU Campus Cooperative Extension District Offices Agricultural Experiment Stations Video Network Sites

$166M state appropriations $520M total budget

Leverage $15 to $1 $2.5B impact and9,500 jobs

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


The Oklahoma Land-Grant Triangle The Oklahoma Land-Grant Triangle A Rural/Urban Technology Enterprise Region

OSU – Tulsa 2+2 with Tulsa Comm. College Applied Materials Research CenterPartnership with Langston OSU – Center for Health Sciences Rural Health & Telemedicine Primary Care

SH

17

7

I-35

Cimarron Turnpike

OSU – Oklahoma CityTechnology degreesFirst Responder TrainingHealth Care Training

I-44

Okmulgee

OSU – Okmulgee 4 year technology degrees Tribal college & health center

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

Stillwater

Ponca City

Oklahoma City

TulsaLake Carl Blackwell

Karsten Creek

Ideas and concepts developed within the Land-Grant Triangle will be disseminated by extension and outreach programs throughout the state.


Oklahoma’s County-by-County ‘Electoral College’Oklahoma’s County-by-County ‘Electoral College’

The tally

Counties (77): OSU: 68, OU 9


Board of Regents

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

President OSU-Tulsa

Gary Trennepohl

President & Provost, OSU-Okmulgee

Robert Klabenes

Vice President of Agri. Pgms. & Dean, CASNR Robert Whitson

President, Health Affairs & Dean, Osteopathic Med.

John Fernandes

President, Center for Innovation & Econ. Dev.

Joseph Alexander

Chief Executive Officer, OSU System, & President OSU

David J. Schmidly

Provost & Senior Vice President

Marlene Strathe Vice President, Student Affairs

Lee Bird

Vice President, Research &

Technology Transfer Stephen McKeever

Vice President, Institutional Diversity

Cornell Thomas

Chief of Staff Al Goodbary

President & Provost, OSU-Oklahoma City

Jerry Carroll

Vice President, Administration & Finance

David Bosserman

Vice President, Enrollment Mgmt.

& Marketing Michael Heintze

CIO & Dir Distance Learning,

Darlene Hightower

Executive Director, Alumni Association

Jerry Gill

Director, Athletics

Harry Birdwell

Assistant Athletic Director for

Compliance Rick Allen

Dir, Comm. ServicesGary Shutt

---------- Strategic & Policy Issues

______Operational Issues


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


AccessAccess

AffordabilityAffordability ExcellenceExcellence

OSU Alumni AssociationOSU Alumni Association

OSU Foundation

OSU Foundation

Student SuccessStudent Success

CIEDCIED

Mission

Vision

Values

Priorities

Mission

Vision

Values

Priorities

Alumni

Student Body

Faculty

Staff

Alumni

Student Body

Faculty

Staff

•Academic Excellence•Student Success and Development•Engagement and Outreach•Diversity•Human Resources•Enhance & Leverage Resources•Image/Pride/Recognition

OSU Parents Association

OSU Parents Association

Seven Strategic Goals

Strategic Alignment for the PlanStrategic Alignment for the Plan

AthleticsAthletics Center for Innovation & Economic Development, Inc.

• Tuition

• Scholarships

• Rankings• Research• Facilities

• Enrollment Management

• Gateway Program with NOC

• Graduation & Retention• Learning Outcomes

• Young Scholars Program


We Must Manage Our Enrollment

• 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.

The key is maintaining an appropriate balance between the size, quality, and composition of our student body.


NOC/OSU Gateway ProgramOSU Freshman Applicants

(Not Admitted)

OSU StudentsNeeding Remediation

Admitted as Transfer Students(24 hrs./2.25 GPA)

Hall of Fame Ave.

Cowboy Mall

OSU StudentsTaking Gen. Ed.

Courses


2,31

9

2,16

6

2,23

2

2,18

8

2,16

8 2,44

8

2,41

2

2,33

1 2,60

2 2,91

6

3,07

6

3,16

5

3,26

5 3,48

8

3,26

4

23.023.3

23.6 23.6 23.7 23.8 23.9

24.3 24.324.1

23.9 23.8 23.724.0

24.3

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1990* 1991* 1992* 1993* 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004**

Fall Semester

En

rollm

ent

22.5

23.5

24.5

25.5

26.5

27.5

AC

T S

core

s

(85%)(57%) (87%)

(60%)

(80%)(57%) (86%)

(56%)(89%)(57%)

(89%)(59%)

(88%)(57%)

(88%)(56%)

(87%)(57%)

(89%)(58%)

(92%)(59%)

(91%)(62%)

(92%)(63%)

(90%)(59%) (89%)

(56%)

First-Time FreshmenFirst-Time FreshmenHeadcount Enrollment, ACT Scores, and Acceptance RatesHeadcount Enrollment, ACT Scores, and Acceptance Rates

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


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.


Full-Time Tenure/Tenure-Track Faculty HeadcountCompared to Enrollment Growth

Fall 1995 through Fall 2003

967969

974971

933

938

955

970

943

21,872

23,57122,992

21,252

21,087

20,466

19,35019,201

19,125

900

920

940

960

980

1,000

1995 1996 1997 1998 1999 2000 2001 2002 2003

18,000

19,000

20,000

21,000

22,000

23,000

24,000

Faculty 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%.

Fac

ult

y H

ead

cou

nt

En

roll

men

t


Addressing Faculty Salary IssuesAddressing Salary Issues

Restore Faculty25 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 Faculty10 new positions per year (FY06 - FY15)$1.0 - $2.0M new funding needed each year$3M annual start-up funding$15.2M total


What it will cost…

P R I O R I T Y FY05 FY06 FY07 FY08 FY09 FY10 * FY11 FY12 FY13 FY14 FY15 Total

Restore Faculty Salary $69 $71 $73 $75 Benefits $21 $23 $26 $29 Total Per Position $90 $94 $99 $104 # of Positions 25 25 25 25 100 New Funds Needed Each Year $2,260 $2,365 $2,478 $2,597 $9,700

Reward Faculty Salary $800 $824 $849 $874 $900 $927 $955 $984 $1,013 $1,044 Benefits $237 $260 $286 $315 $347 $381 $419 $461 $507 $558 New Funds Needed Each Year $1,037 $1,084 $1,135 $1,189 $1,247 $1,309 $1,375 $1,445 $1,521 $1,602 $12,944

Grow Faculty Salary $100 $103 $106 $109 $113 $116 $119 $123 $127 $130 Benefits $23 $25 $29 $31 $35 $38 $42 $46 $51 $56 Total Per Position $123 $128 $135 $141 $147 $154 $161 $169 $177 $186 # of Positions 10 10 10 10 10 10 10 10 10 10 100 New Funds Needed Each Year $1,235 $1,289 $1,346 $1,406 $1,470 $1,538 $1,611 $1,689 $1,771 $1,860 $15,215

Startup Funds needed for Growth Fac. $1,500 $1,500 - - - - - - - - $3,000

Total Number of New Faculty 200

TOTAL NEW FUNDS NEEDED $2,260 $6,137 $6,351 $5,078 $2,595 $2,717 $2,847 $2,986 $3,134 $3,292 $3,462 $40,859

Fill Vacant Faculty Positions, Reward Existing Faculty, and Increase the Size of Faculty

General UniversityDRAFT

(Dollars in Thousands)


To attract the best and brightest graduate To attract the best and brightest graduate

student talent to OSU by improving student talent to OSU by improving graduate student stipend and tuition graduate student stipend and tuition

scholarship packages to peer-scholarship packages to peer-competitive levelscompetitive levels

FY 2006 FY 2007 FY 2008 FY 2009

$950,000 $600,000 $500,000 $500,000


We Must Provide Adequate Facilities and Space for Our Faculty

Capital Projects Amount Source 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

1 = Funding pledged

2 = $500M capital bond before Oklahoma Legislature this session

3 = potential donor identified but no commitment secured

$239,910,000


We Must Raise Funds For We Must Raise Funds For Academic ProgramsAcademic Programs

Priorities

Endow Colleges and DepartmentsFaculty Chairs Faculty DevelopmentStudent Scholarships and FellowshipsStudent Leadership and WellnessAcademic FacilitiesLibraryCampus BeautificationMarketing and Promotions


• Largest gift pledge in history of institution - $70M

• Largest corporate donation in history - $7.5M

• Other large corporate gifts

Since January 2003

Devon Corporation - $2.3M

SBC Corporation - $3.00M

Chesapeake - $0.50M

• First endowed college - donor with state match

Fund-Raising Highlights


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.



OSU SCHOLAR DEVELOPMENT AND RECOGNITIONOSU SCHOLAR DEVELOPMENT AND RECOGNITIONA 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 2Truman 13 Goldwater 12

Udall 2 Rotary Ambassadorial 5Pickering 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).


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.



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

45%

12%25% 23%

0%

10%

20%

30%

40%

50%

FY 1985 FY 2005

State Appropriation Tuition and Fees


Oklahoma State UniversityFY 2006 Budget Needs

New Appropriations to Higher Ed. 30,000,000 40,000,000 50,000,000 60,000,000

Appropriations to Institutions 20,000,000 30,000,000 40,000,000 50,000,000

OSU Share (assume 14.1%) 2,820,000 4,230,000 5,640,000 7,050,000

Fixed Cost 7,939,660 7,939,660 7,939,660 7,939,660 3% Salary and Wage Program 4,887,000 4,887,000 4,887,000 4,887,000 Faculty FTE to Manage Enroll. Incr. 2,365,000 2,365,000 2,365,000 2,365,000 Total Mandatories & Raise Program 15,191,660 15,191,660 15,191,660 15,191,660

Funding Needed After Appropriations (12,371,660) (10,961,660) (9,551,660) (8,141,660)

Tuition & Mandatory Fee Increase Needed* 12.00% 9.00% 7.00% 3.70%


• 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.

As a State - Oklahoma Has a Weak Research Profile


Oklahoma State University Research Model

University Research

Produce Knowledge

Prestige/Reputation

Income (Univ.)

Educational Value

Students (UG/G)

Faculty

I.P. & TechnologyIncome (Univ./Faculty)

Economic Development (Local, Region, State)

Become a More Research Intensive Institution

• Build off our land-grant legacy

• Targeted research strengths

• Basic, applied & strategic research

• Focus on student outcomes & research education

Teaching

Service

• Focus on interdisciplinary approaches

• Focus on research income and technology transfer

• Outcomes oriented

• Highly entrepreneurial


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


Directed Federal Appropriations (Federal Initiative Orange Book)

I. Development of Agenda• Broad system-wide input (System CEO, Presidents, Deans)

II. 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


“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)

Documents

Overview Presentation by David J. Schmidly System CEO & President