April 15, 2013 Meeting of Revenue Generation Task Force

REVENUE GENERATIONTASK FORCE MEETINGApril 15, 2013 | 3:30 to 4:30 p.m.LSU AgCenter| Efferson Hall 212

Lee Griffin, Finance and Revenue Sub-Committee Co-Chair

WELCOME

Dr. Christel Slaughter, SSA Consultants

REVENUE ENHANCEMENT INITIATIVES AT OTHER UNIVERSITIES

Ideas for Enhancing Alternative Revenues for Higher Education

5

New Educational RevenuesCapturing High-Growth Student Populations and Instructional Services

International student recruitment Applied and professional master’s Distance learning and course licensing Summer and intersession blended learning Customized corporate training Testing and certification Distance learning articulation agreements Senior enrichment programs Faculty consulting

Source: Education Advisory Board

6

Academic Entrepreneurship InfrastructureCritical Capabilities for Identifying, Launching and Scaling Viable Programs

Business planning support Fast-cycle program launch Cost-effective marketing Curriculum development Enrollment management Outsourcing and joint venture models


7

Branding, Licensing and AffinityExpanding Product Categories and Sellable Space

Increasing branded merchandise demand Alumni, parent and community affinity programs “STEALTH” advertising and sponsorship Diversifying athletics revenues


8

Auxiliary ServicesIncreasing Demand While Reducing Fixed Costs

Premium-priced healthy and convenient foods Future bookstore Shared-cost luxury amenities Favorable vendor rebates


9

Student FeesCharging for Convenience and Choice

Convenience fees Sharing costs of inefficient scheduling Differential instructional cost


10

Campus OperationsTurning Cost Centers into Revenue Producers

Campus health center Selling administrative services Surplus goods disposal Sustainable energy purchase power agreements


11

Facilities and Real EstateGenerating Cash Flow from Underutilized Space

Event rentals Development of joint ventures Long-term leasing Asset acquisition and disposal


Representatives from Various LSU Foundations

PANEL DISCUSSION: FOUNDATIONS THROUGHOUT THE LSU SYSTEM

LSU SYSTEM ASSETSDanny Mahaffey, Director of Facility Planning

Dr. Christel Slaughter, SSA Consultants

REVIEW OF TUITION AND HOUSING INFORMATION

15

In-State Tuition and Fees (2012-13)

LSU BR

LSU A

LSU S

Arkansas

AuburnBam

a

Florid

a

Georgia

Kentucky

Miss St

ate

Ole Miss

Tennessee

Texas A&M

U of SC

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$6,989

$4,618 $4,943

$7,554

$9,446

$7,932

$6,143

$9,842 $9,676

$6,264 $6,282 $6,426

$8,506

$10,488

SEC Average* = $7,962Information from Institution of Education Sciences: http://ies.ed.gov* Does not include Vanderbilt.

16

Out-of-State Tuition and Fees (2012-13)

LSU BR

LSU A

LSU S

Arkansas

AuburnBam

a

Florid

a

Georgia

Kentucky

Miss St

ate

Ole Miss

Tennessee

Texas A&M

U of SC

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$22,265

$9,400

$11,679

$18,434

$25,190

$14,244

$28,420 $28,052

$19,864

$15,828 $16,266

$18,954

$25,035

$27,644

Information from Institution of Education Sciences: http://ies.ed.gov* Does not include Vanderbilt.

SEC Average* = $21,683

17

In-State, Out-of-State Comparison (2012-13)

LSU BR

LSU A

LSU S

Arkansas

AuburnBam

a

Florid

a

Georgia

Kentucky

Miss St

ate

Ole Miss

Tennessee

Texas A&M

U of SC

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$6,989

$4,618 $4,943

$7,554 $9,446

$7,932 $6,143

$9,842 $9,676

$6,264 $6,282 $6,426

$8,506

$10,488

$22,265

$9,400

$11,679

$18,434

$25,190

$14,244

$28,420 $28,052

$19,864

$15,828 $16,266

$18,954

$25,035

$27,644

Information from Institution of Education Sciences: http://ies.ed.gov

18

In-State Total Estimated Expenses (2012-13)Includes Tuition, Fees, Books, Housing, and Other Necessities

LSU BR

LSU A

LSU S

Arkansas

AuburnBam

a

Florid

a

Georgia

Kentucky

Miss St

ate

Ole Miss

Tennessee

Texas A&M

U of SC

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

On Campus Off Campus Off Campus with FamilyInformation from Institution of Education Sciences: http://ies.ed.gov* Does not include Vanderbilt.

19

Out-of-State Total Estimated Expenses (2012-13)Includes Tuition, Fees, Books, Housing, and Other Necessities

LSU BR

LSU A

LSU S

Arkansas

AuburnBam

a

Florid

a

Georgia

Kentucky

Miss St

ate

Ole Miss

Tennessee

Texas A&M

U of SC

$0 $5,000

$10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000

On Campus Off Campus Off Campus with FamilyInformation from Institution of Education Sciences: http://ies.ed.gov

20

Impact of Incremental Raise in Tuition*

1% $1Gross $1.9 million $60,000Net $1.6 million $50,000

* Assumes continued current enrollment patterns (Summer 2012, Fall 2012, Spring 2013)

Information provided by Bob Kuhn, Vice Provost and Associate Vice Chancellor of Budget and Planning

21

Impact of Students Paying for Full Course Load (21 Hours versus 12 Hours)

TOPS Students (Graduate and Undergraduate) Not Excluded from Increase

Gross $29 millionNet* $21 million

TOPS Students (Graduate and Undergraduate) Excluded from Increase

Net $10 million

* Includes factor attempting to account for a change in student behavior resulting from removing the tuition cap.

Information provided by Bob Kuhn, Vice Provost and Associate Vice Chancellor of Budget and Planning

22

SEC Freshman Year On-Campus Residency Requirements

LSU BR No

Arkansas Yes

Auburn No

Bama Yes

Florida No

Georgia Yes

Kentucky No

Miss State Yes

Ole Miss Yes

Tennessee No

Texas A&M No

U of SC Yes

Department of Residential Life

6,000 students live on campus

85 percent of freshmen live on campus

Residence halls have reached full capacity 700 students on waiting

list Revenue neutral

Would require upperclassmen and graduate students to move off campus

LSU-BR Campus Housing Snapshot Current Issues with Requiring Freshmen to Live on Campus

24

Department of Residential Life Vision 2020 Strategic Plan

Housing master plan Identified residence halls to renovate – as one

renovation completes, another hall is taken “offline” to begin its renovation. Fall 2012: Laville Honors College Fall 2013: Annie Boyd Hall (adding 160 beds)

New Residence Hall Project 660 new beds

August 2015: 330 beds 2016: 330 beds