1

Tim Sands

Purdue University

Acting President November 15, 2012

2

PURDUE UNIVERSITY'S COMMITMENT

• Driving economic growth

in Indiana

• Providing a global gateway

for Indiana

• Reaching Higher,

Achieving More

Nanshan America announcement, 2011

3 3

RECORD RETENTION & GRADUATION RATES WEST LAFAYETTE

72.5%

70.2% 73.0%

40.5%

45.7%

50.0%

86.5% 90.6%

93.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

6-Year Graduation Rate 4-Year Graduation Rate 1st- to 2nd- Year Retention

Milestones to be reached in 2014

For entering cohort:

4

REGIONAL CAMPUS GAINS

IPFW

Calumet

North Central If all students

graduated in

4 years, ratio

would = 25%

Annual Bachelor's Degree Production as a Ratio of Undergraduate FTE

11.9% 11.9% 12.5% 12.0%

13.8% 13.5% 13.5% 13.3% 14.9%

15.6%

12.1% 11.5%

10.6%

12.3%

14.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2007-08 2008-09 2009-10 2010-11 2011-12

Total Bachelor's and Master's Degrees Awarded

5

• Ranked in top 100 on all three international rankings

• Ranked #8 for ROI by Wall Street Journal’s SmartMoney

• Ranked #4 for quality of graduates by Wall Street Journal

• Lowest student loan default rates in state

VALUE OF A PURDUE DEGREE OUR QUALITY IS AMONG THE BEST IN THE WORLD

3-Year Student Loan Default Rates

2.8%

3.4%

0.0%

1.0%

2.0%

3.0%

4.0%

Purdue WL Big Ten Public Avg.

Source: NSLDS.ed.gov, FY2009

6

• Cost savings focus

• Reduced recurring

operating budget by

$67 million

• $45 million rescission

REDEFINING OUR FINANCIAL MODEL

Sustaining New

Synergies

Decadal Funding

Plan

Balanced Capital

Approach

• Finding efficiencies &

generating revenue - Balanced trimester

• Long-term planning

• Ten-year capital plan - Balanced additions &

demolitions

- Matching state funds

with other sources

- $82 million reduction in

deferred R&R—14% of

the total

3 Years ago

2 Years ago

1 Year ago A CONTINUOUS PROCESS

Implementation of all three is ongoing

7

A NEW ENVIRONMENT GOING FORWARD

1. Engineer/STEM Shortage

2. New Learning Technologies & Techniques

3. Return of Manufacturing

4. Changing R&D model

5. Shifting Funding Sources

Purdue’s Proactive

Response

Areas for

State Support

Partnership • Engineering Strategic Growth

• IMPACT Program

• Research/Technology Parks

• Technical Assistance Program

• Decadal Funding Plan

• Active Learning Center

• Investments in Research

• IN-MaC

• Line-item Support

Drivers

8

2013 – 2015 OPERATING REQUEST

FY 2015 Performance Funding*

West Lafayette Regional Campuses Total

TOTAL 2,406,652 -1,338,819 1,067,833

Percent Change 1.0% -1.7% 0.3%

*Request is submitted based on the assigned values of the performance measures and other instructions

issued by CHE and the State Budget Agency.

System-wide Historical Appropriations per Biennium 2003-2005 2005-2007 2007-2009 2009-2011 2011-2013

Appropriated $301,791,565 $314,468,268 $340,665,970 $317,985,979 $312,324,934

HISTORICAL

REQUEST

Total System Operating Request 2013-14 2014-15

General Operating $313,240,221 $313,392,767

SIMILAR TO 2005 LEVELS

9

REGIONAL CAMPUS GAINS

IPFW

Calumet

North Central If all students

graduated in

4 years, ratio

would = 25%

Annual Bachelor's Degree Production as a Ratio of Undergraduate FTE

11.9% 11.9% 12.5% 12.0%

13.8% 13.5% 13.5% 13.3% 14.9%

15.6%

12.1% 11.5%

10.6%

12.3%

14.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2007-08 2008-09 2009-10 2010-11 2011-12

Total Bachelor's and Master's Degrees Awarded

10

CAPITAL REQUEST

2013-15 Legislative Request

Projects Status Priority Bonding Authority

WL - Active Learning Center New One $60,000,000

PNC - Student Services and Activity

Complex

Previously

Authorized

Two $24,700,000

PUC - Emerging Technologies Building New Three $37,400,000

IPFW - South Campus Renovations New Four $42,700,000

Benefits of the request extend to all Purdue campuses

11

ACTIVE LEARNING CENTER

Capital Request

Project Status Priority Bonding Authority

WL - Active Learning Center New One $60,000,000

Evaluation of Evidence-Based Practices in Online Learning

A Meta-Analysis and Review of Online Learning Studies

12

INVESTMENTS IN RESEARCH

University's responsibility is to:

•Equip and ready laboratories to advance research

•Contribute to innovation and discoveries that grow the Indiana economy

•Enable our students to participate in meaningful research

Since 2003, performance formulas have included research

funding to meet these obligations

Research Incentive Incremental Amounts Requested and Funded per Biennium

2003-2005 2005-2007 2007-2009 2009-2011 2011-2013

Requested $0 $12,418,282 $10,490,324 $10,147,211 $10,085,250

Appropriated $5,215,016 $10,787,744 $10,490,324 $0 $6,101,576

We are concerned with how research is funded going forward

without the performance formula funding

13

IN-MaC ONCE-IN-A-GENERATIONAL OPPORTUNITY

• New generation of manufacturing returning to the country

• VA, MI and OH developing similar centers

o Already competing for federal funding and new

investments

• Institution strengths in manufacturing and workforce

development will make IN-MaC stand out

14

2013 – 2015 LINE ITEM BUDGET SUPPORT

LINE ITEM BUDGET REQUESTS

FY 2014 FY 2015

Statewide Technology $7,392,741 $7,141,747

Agriculture Research & Extension $10,238,961 $10,238,961

County Agricultural Extension Educators $7,415,470 $7,600,857

Technical Assistance Program (TAP) $4,430,212 $4,472,414

Center for Paralysis Research $533,254 $544,217

TOTAL LINE ITEM BUDGET

REQUESTS $30,010,638 $29,998,196

SUPPORTING OUR LAND GRANT MISSION

15

Tim Sands

QUESTIONS…

Acting President November 15, 2012

16

RESIDENT & NON-RESIDENT STUDENTS

% of Enrollment 2012 SAT High School GPA Selectivity: Admissions/Applications

Residents 54.6% 1162 3.65 64.8%

Non-

Residents 45.4% 1245 3.68 59.9%

WEST LAFAYETTE STUDENT PROFILE

• 68.8 percent of students in the Purdue system are

residents

• All but 502 Indiana students who applied were

offered admission to the system

17

CAPACITY AT INDIANA UNIVERSITIES

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

IA IN KS OR MN MI AZ PA WA MD WI NJ MO CO CA OH USA TX IL NC FL NY VA GA

Access to Public AAU Campuses

Undergraduate enrollment divided by

four times the annual # of public high

school graduates

Indiana has capacity at PU-WL and IU-B for

25% of high school graduates compared to

7.7% nationally

18

10-YEAR CAPITAL PLAN IMPACT (Near-term)

+7

ADDED

-7

ELIMINATED

FUNDING

DEFERRED R&R

FACILITIES

SPACE

PNC

WL

IPFW

PUC

$573.9M $491.9M

Current Impact

PNC

WL

IPFW

PUC

-$82M

Total

Constructed

After Space

Reassignment

After Facility

Removal

118,000

407,000

169,000

State

$90.0M

34%

Gifts

$52.0M

20%

Other

$115.7M

46%

WL System

State

$194.8M

50%

Gifts

$55.7M

14%

Other

$141.7M

36%

19

BALANCED CAPITAL APPROACH

IMPACT through investment,

reinvestment, and

sustainability

Development through private,

public, and institutional

partnerships

Renewal through renovation

and replacement

RENOVATE

BUILD NEW REPLACE