CAMPUS BUDGET FORUM FEBRUARY 26, 2019 I. Long-term Trends - PDF document

CAMPUS BUDGET FORUM FEBRUARY 26, 2019 I. Long-term Trends • Strategic Metrics • Revenue and Expenditure Trends • Enrollment • Tuition • Faculty Salaries II. FY18 Wrap-up III. FY19 Status • 2 nd Quarter Projections IV. FY20 Planning • Budget Timeline • Enrollment Projection • General Fund Budget Planning Parameters V. Other • Tech Forward Initiatives • H-STEM • Questions

Full Time Graduates Vs. FTE Undergraduates Michigan Public Universities and Michigan Tech Benchmark Universities Fall 2017 35 Northern, 0.9 Cal Poly, 1.2 30 U of Wisc - Milwaukee, 4.1 Saginaw, 1.0 Central, 2.9 U of Minn - Duluth, 2.0 FTE Undergraduates/FTE T-TT Faculty 25 Oakland, 3.2 Grand Valley, 1.6 Ferris, 1.8 C S Mines, 5.3 UM - Flint, 2.4 Eastern, 1.4 MUST, 3.9 Lake State, 0.0 UM - Dearborn, 2.0 20 Michigan State, 4.3 RPI, 3.4 U of I - Champaign, 5.8 Western, 1.4 VT, 3.3 Purdue, 3.8 Portrait of 2045, 6.3 Clarkson, 3.3 Wayne, 6.4 15 U of Wisc - Madison, 4.9 U of Minn - Twin Cities, 4.4 Georgia Tech, 6.4 Lehigh, 2.7 UM - Ann Arbor, 5.2 10 Carnegie, 9.5 5 y = -1.7553x + 26.031 MTU MTU MTU MTU MTU MTU MTU MTU MTU MTU R² = 0.399 (2018) (2004) (2010) (2011) (2012) (2013) (2014) (2015) (2016) (2017) 2.0 2.6 2.6 2.6 3.2 3.0 2.9 3.0 2.9 3.1 0 0 1 2 3 4 5 6 7 8 9 10 Full Time Graduates/FTE T-TT Faculty Provost's Office: 1/15/2019 SOURCE: IPEDS Data P:\Provost\Alan's Work\Benchmarking\2017\Benchmarking 2017 Students to T-TT Faculty.xlsx

Sponsored Awards ‐ $ 210 MM Graduating PhDs ‐ 140 Endowment ‐ $ 1,258 MM Freshman HS GPA ‐ 3.8 / 4.0 Graduate Enrollment ‐ 3500 Undergraduate Enrollment ‐ 6500 0 20 40 60 80 100 120 Percent of 2045 Goal 2018 ‐ Proj 2015 2012 2009 2006

Current Fund Revenue Trends by Fiscal Year Tuition & Fees Grant & Contract Revenue State Appropriations Auxiliary Activities Gift & Other Income 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

University Revenue Mix, 1994-2018 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 State Appropriations Tuition & Fees Grant & Contract Revenue Auxiliary Activities Gift & Other Income

Revenue Proportions, 2017 and 2045 0.6 0.5 T&F 0.4 C&G 0.3 0.2 Approps Aux 0.1 Gifts Other 0 2015 2020 2025 2030 2035 2040 2045 2050

Current Fund Expense Trends by Fiscal Year Compensation & Benefits Scholarships & Fellowships Supplies & Services Utilities 70% 60% 50% 40% 30% 20% 10% 0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Instruct ction, R , Rese search ch, Pu , Public S Servi vice as a a Percen ent o of Total al E Expen enditures es 2016 016-17 17 Wayne State University 66.1 University of Michigan-Ann Arbor* 62.3 Michigan State University 57.8 Michigan Technological University 56.9 University of Michigan-Dearborn 54.7 University of Michigan-Flint 53.2 Grand Valley State University 49.8 Oakland University 47.1 Western Michigan University 45.9 Central Michigan University 45.2 Saginaw Valley State University 42.8 Ferris State University 41.8 Lake Superior State University 39.6 Northern Michigan University 39.1 Eastern Michigan University 38.3 Missouri University of Science and Technology 62.4 New Jersey Institute of Technology 56.3 Clarkson University** 51.6 New Mexico Institute of Mining and Technology 49.1 Colorado School of Mines 44.8 Louisiana Tech University 40.2 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 * Excludes hospital expenditures ** Reported under FASB

Instit itutio ional S l Support as a a Percen ent o of Total al E Expen enditures es 2016-17 17 Lake Superior State University 14.6 University of Michigan-Flint 12.7 University of Michigan-Dearborn 11.4 Wayne State University 10.9 Michigan Technological University 10.5 Ferris State University 10.2 Saginaw Valley State University 10.2 Grand Valley State University 10.0 Oakland University 9.4 Central Michigan University 9.0 Eastern Michigan University 8.7 Northern Michigan University 8.5 Western Michigan University 8.1 University of Michigan-Ann Arbor* 6.2 Michigan State University 5.8 New Jersey Institute of Technology 18.9 Clarkson University** 14.5 Missouri University of Science and Technology 8.5 Colorado School of Mines 8.1 Louisiana Tech University 7.3 New Mexico Institute of Mining and Technology 5.2 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 * Excludes hospital expenditures ** Reported under FASB

Instruct ction, R , Rese search ch, Pu , Public S Servi vice as a a Percen ent o of Core* e* E Expen enditures es 2016 016-17 17 University of Michigan-Ann Arbor** 71.4 Wayne State University 69.9 Michigan State University 66.4 Michigan Technological University 65.6 University of Michigan-Flint 58.8 Central Michigan University 57.9 University of Michigan-Dearborn 57.5 Western Michigan University 56.8 Grand Valley State University 55.0 Lake Superior State University 52.9 Oakland University 52.9 Saginaw Valley State University 52.1 Northern Michigan University 47.1 Ferris State University 45.9 Eastern Michigan University 44.4 Missouri University of Science and Technology 68.6 New Jersey Institute of Technology 59.8 Louisiana Tech University 59.4 Clarkson University*** 58.0 New Mexico Institute of Mining and Technology 51.0 Colorado School of Mines 49.8 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 * Core is defined as Total Expenditures minus Auxiliary ** Excludes hospital expenditures *** Reported under FASB

Core* E Expenditures as a a Percen ent o of Total al 2016 016-17 17 University of Michigan-Dearborn 95.2 Wayne State University 94.5 Ferris State University 91.0 Grand Valley State University 90.5 University of Michigan-Flint 90.5 Oakland University 89.0 University of Michigan-Ann Arbor** 87.3 Michigan State University 87.0 Michigan Technological University 86.7 Eastern Michigan University 86.2 Northern Michigan University 83.1 Saginaw Valley State University 82.2 Western Michigan University 80.8 Central Michigan University 78.0 Lake Superior State University 74.8 New Mexico Institute of Mining and Technology 96.3 New Jersey Institute of Technology 94.1 Missouri University of Science and Technology 90.9 Colorado School of Mines 90.0 Clarkson University*** 89.0 Louisiana Tech University 67.7 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 * Core is defined as Total Expenditures minus Auxiliary ** Excludes hospital expenditures *** Reported under FASB

Enrollment: Increase graduate student enrollment to a level of 6 FYES and undergraduates at 15 FYES per tenured/tenure-track faculty FTE. Strategies: 1. Increase faculty capacity to advise graduate students through appropriate hiring and retention. 2. Increase faculty numbers through strategic faculty hiring. 3. Improve housing options for students. 4. Ensure the minimum graduate stipend is at competitive levels with peer institutions.

2012-2018 Percent Change in UG Enrollment 10% 8% 5% 5% 4% 2% 0% 0% CMU EMU FSU GVSU LSSU MSU MTU NMU OU SVSU UMAA UM-D UM-F WMU WSU Total -2% -5% -5% -8% -10% -10% -10% -13% -15% -15% -16% -17% -17% -20% -21% -25% MASU Enrollment Data

Tuition and Fees: Set tuition to support our standing as a national technological university Strategies: 1. Undergraduate resident engineering tuition, non-resident tuition, and graduate tuition should be comparable to those of our major competitors among national technological universities. 2. Tuition and fee increases minus any state appropriation increase minus any financial aid increase should not exceed the Higher Education Price Index. 3. Increase financial aid supported through endowed scholarships. 4. Utilize financial aid to address access and affordability for students, and the achievement of institutional enrollment goals.

Academic Year 18-19 Tuition/Eng Fees Charges Michigan Tech and Competitors Engineering Rates Undergraduate Semester Charges (15 Credits) Graduate Sem e ster (9 Credits) Resident Non-Resident Graduate Lower Division Upper Division Lower Division Upper Division Resident Non Resident ** Michigan Technological University 7,673 9,320 16,713 18,972 10,287 10,287 University of Michigan Ann Arbor 7,997 10,360 24,656 27,688 13,530 25,163 Michigan State University 7,230 9,265 19,883 21,456 7,578 14,202 Kettering University 21,745 21,745 21,745 21,745 8,208 8,208 Purdue University 6,021 6,021 15,422 15,422 5,558 14,959 University of Minnesota Twin Cities 6,529 6,529 13,182 13,182 8,532 13,206 University of Wisconsin-Madison 5,978 5,978 19,103 19,103 7,165 14,662 Western Michigan University 6,460 7,061 7,905 8,656 5,864 11,088 Grand Valley State University 6,242 6,554 8,881 9,187 6,408 6,408 **All include Fees and LD/UD Rates