Forward: Retaining and Expanding UW –Madison’s Excellence 1
UW –Madison’s Remains a Uniquely Excellent University Record-setting applications Outstanding retention rate Graduation rates are up Time-to-degree is down Over half of undergrads graduate w/out debt Our research enterprise is thriving The Wisconsin Idea continues to inspire and connect us to the people of the state 2
The Critical Challenge of Maintaining our Excellence Worrisome trends indicate future challenges to maintaining our excellence. Securing our future and continued excellence is the challenge we face, along with many other top-flight public universities. Meeting this challenge will take effort across and at all levels of campus. 3
Worrisome Trends: Research Research Expenditures Annual Rate of Growth (2005 – 2015) 4.50% 4.0% 3.8% 4.00% 3.50% 3.0% 3.00% 2.50% 2.1% 2.0% 2.00% 1.50% 1.00% 0.6% 0.50% 0.00% UW-Madison All Institutions Top 25 Federal Research Expenditures Total Research Expenditures All institutions and Top 25 excludes UW – Madison. Top 25 does not include University of Michigan, University of Washington – Seattle, University of Minnesota and Pennsylvania State University as data are not available for them for 2006 – 2009. Source: NSF HERD Survey 4
Worrisome Trends: Research We have slipped out of the top 5 of national research institutions for the first time since 1972. Next slide shows our research dollars have grown markedly slower than our peers. 2015 2014 1. Johns Hopkins 1. Johns Hopkins 2. U. of Michigan 2. U. of Michigan 3. U. of Washington, Seattle 3. U. of Washington, Seattle 4. UW – Madison 4. U. of California, San Francisco 5. U. of California, San Diego 5. U. of California, San Francisco 6. UW – Madison 5
Worrisome Trends: Faculty Recruitment & Retention Last year we had more faculty recruited to other universities than in any other year. • We retained faculty at a good rate, 77%, but still lost more faculty than ever before in a single year. • When other institutions recruit our faculty, they take their reputations and their grant funds with them • We hired fewer faculty than in any year since we have been keeping records (69 new faculty). 6
Worrisome Trends: Academic Rankings U.S. News & World Report ’s Best Colleges Ranking for UW– Madison 1 U.S. News Best Colleges Ranking (1st to 50th) 11 21 31 31 32 32 32 34 34 35 35 38 39 41 41 41 41 42 44 45 47 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year of U.S. News Ranking 7
Academic Rankings Drop Despite Progress on Key Student Success Indicators Retention Rate To Second Year 100 95.4% All New Freshmen 95 95.7% 90 Targeted Minority New Freshmen 85 80 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2nd Year Retention Based on Prior Year's Cohort 8
Academic Rankings Drop Despite Progress on Key Student Success Indicators 6-Year Graduation Rates 100 85.2% 90 All Students 80 70 60 75.2% Targeted Minority Students 50 40 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Graduation Rate of New Freshmen Entering 6 Years Earlier 9
Financial Indicators are Driving Academic Rankings Drop Overall ranking has ranged from 35th to 47th in past ten years. But, UW –Madison’s Financial Resources ranking has dropped from 47th (2008) to 63rd (2017). UW –Madison’s Average Compensation ranking has dropped from 62nd (2008) to 85th (2015). Using U.S. News & World Report “Best Colleges” Ranking Methodology 10
UW –Madison’s Revenue Growth Lags Peers Total Revenue: Annual Rate of Growth (2005 – 2015) 6.00% 5.00% 4.2% 4.00% 2.6% 3.00% 2.00% 1.00% 0.00% *Excludes UW. Source: Publicly available financial statements published on each relevant university’s website; excludes revenue from patient care in universities affiliated with hospitals. 11
Revenue Lag More Pronounced Recently UW – Madison Total Revenue from All Sources: 2005 – 2015 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12
Revenue Lags Across Nearly All Sources State Appropriations Contracts & Grants Net Tuition and Fees Annual Growth Rate (05 – 15) Annual Growth Rate (05 – 15) Annual Growth Rate (05 – 15) 1.00% 8% 8% 387,773 830,923 7% 7% 0.80% 6% 6% 413,842 5% 5% 0.60% 4% 4% 0.13% 0.06% 0.40% 3% 3% annual annual 2% 2% growth growth 0.20% 1% 1% 0.00% 0% 0% UW Comparison Group UW Comparison Group UW Comparison Group ** Private Gifts Other Ed Activities & Auxiliaries Annual Growth Rate (05 – 15) Annual Growth Rate (05 – 15) Annual Growth Rate (05 – 15) 272,492 85,171 8% 8% 14% 7% 7% 12% 6% 6% 10% 5% 5% 451,742 8% 4% 4% 6% 3% 3% 4% 2% 2% 2% 1% 1% 0% 0% 0% UW Comparison Group UW Comparison Group UW Comparison Group Comparison Group : U of M, UVA, PSU, UNC, IU Significant opportunity ** 2005 and 2015 actuals excluding patient care Washington, UC B, Purdue, Illinois, Minnesota 13 revenues
Be Clear About What this Means: The state cuts we have faced are not the main reason we are falling behind…other schools have also faced similar cuts. It’s our lack of growth in other revenues in the past 10 years… research, tuition, gifts… that has created problems for us. To address this, we need everybody involved! 14
If the Next Ten Years Look like the Last Ten, we will Slip Behind the Competition UW – Madison goes from 2005 revenue parity with UVA (and ahead of Berkeley ) to lagging by $1.6B and $0.8B respectively 6,000,000 5,000,000 Total Revenue (000s) 4,000,000 3,000,000 2,000,000 1,000,000 0 UVA UW-Madison Berkeley 2005 1,875,288 1,884,738 1,601,561 2015 2,987,516 2,441,941 2,508,916 15 2025 4,774,447 3,156,522 3,933,716
Together We Can Reverse Worrisome Trends Money is necessary but not sufficient to create a top- ranked university… we need a vision to spend the money effectively. Reinvestment priorities: Build faculty & research strength Continue to enhance educational quality Expand access and affordability But to reinvest, we need resources 16
What Must We Do at UW to Make Reinvestment Happen? Work to strengthen our 169-year partnership with the state Develop entrepreneurial strategies to grow new revenue sources While we must do both, it is the second path that will be the source of most of our future new revenues. State dollars are unlikely to return in large measure. 17
Governor’s Proposed Budget The governor’s budget proposes new funding for UW System, a portion of which would return to UW – Madison as new base funding if approved. That’s critically important, but the amount is small relative to our need for new investment. 18
State Budget Advocacy Strategy “Reinvest in UW” Legislative Briefings Paid Media Campaign Alumni Engagement Third Party Advocacy Research in Rotunda/UW Lobby Day – April 12 Close coordination with faculty/staff/student lobbying orgs 19
Entrepreneurial Strategies to Tap New Revenue Sources 1. Expand summer semester 2. Grow programs for professionals 3. Set market-based tuition 4. Explore student mix & numbers 5. Grow alumni support 6. Grow research funds 20
1. Expand Summer Semester First full roll-out was summer 2016: 71 new courses More than 1,100 new students 21% increase in tuition revenues Goal is 10% annual growth in enrollment and revenues through 2020 21
2. Grow Programs for Professionals Since 2012, we have launched 24 new professional masters and capstone programs, with over 1,000 new students In coming years, we must identify larger-scale programs that will bring in 100-plus students and provide significant revenues, beyond their costs Assistance available to design, market, put together a business plan, and provide seed money to launch 22
3. Set Market-Based Tuition Reaching market levels for non-resident & professional-school tuition Expansions in non-resident tuition have brought in $43 million over the past two years ($30 million used to fill budget cuts from last biennium) 23
4. Explore Student Mix & Numbers Professional schools are considering their size (UW schools are smaller than many peers) Undergraduate mix: Regents have lifted the out-of- state cap, in exchange for our promise to have at least 3,600 Wisconsin freshmen in each class 24
5. Grow Alumni Support More than halfway toward $3.2B campaign goal 155,000 donors and a new level of giving • New gifts/pledges in 2012 (pre-campaign): $291M • New gifts/pledges in 2015: $593M (Most of this is not immediately spendable money; a majority of it will come in through inheritances in the future, or is put into endowment and pays out at 4.5%.) 25
5. Grow Alumni Support: An example The impact of one gift $50 million from Ab & Nancy Nicholas inspired an additional $50 million in gifts New endowment will bring a UW – Madison education within reach for generations of students 26
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