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9th Annual UIC Leadership Retreat

THE PRIVATE-PUBLIC CONTINUUM & A CHANGING UIC

Lon S. KaufmanVCAA/Provost

August 18, 2011

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WE ARE THOUGHTFULSTEWARDS OF OUR RESOURCES

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UNRESTRICTED FUNDS GO TO THE COLLEGES

Other centrally-budgeted costs $30.9M

Other centrally-budgeted costs $68.3MUtilities $24.7M

Utilities $46.4M

Acad. Support Admin. Units

$185.4M

Acad. SupportAdmin Units

$177.0M

Colleges $257.4M

Colleges$326.0M

Financial Aid $20.8M

FY 2002$498.4 M

FY 2011$639.0 M

+ 26.6%

- 4.5%

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INFLATION ADJUSTED

Other centrally-budgeted costs $30.9MOther centrally-budgeted costs $54.4M

Utilities $24.7M

Utilities $37.0M

Acad. Support Admin. Units

$185.4M

Acad. Support Admin. Units

$141.1M

Colleges $257.4M

Colleges $259.8M

Financial Aid $16.6M

FY 2002$498.4 M

FY 2011$509.3 M

-22%

0%

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THE CURRENT SITUATION

• End of FY 2006 155 units had deficits totaling $50 MEnd of FY 2010 17 units had deficits totally $ 19 M

• All Colleges are running in the black

• The campus has sufficient CASH reserves to cover a major rescission.

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HOW DID WE – YOU - ACHIEVE THIS?

• TUITION - Colleges receive 75% of the tuition revenue.

• ICR - College share increased from 30% to 47.5%.

• ICR - Revenue to VCR and VCAS linked to research growth.

• RA TUITION REMISSION - College share increased from 50% to 75%.

• GA TUITION - Employer compensates home college for tuition waiver.

• CROSS-COLLEGE INSTRUCTION - Colleges compensate each other.

• USAGE CHARGE - Units that incur deficits pay an interest charge.

• RENT LESS - Units come back to campus; use the rent to renovate.

• CENTERS - Shared investment; Colleges, Provost, VCR, VPHA

• SPACE ECONOMY - Colleges share in cost or savings in O&M, & utilities.

DECENTRALIZING - FUNDS FLOW

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• WE INVESTED OUR FUNDS IN THE COLLEGES

• THE COLLEGES HAVE BEEN SUCCESSFUL IN GARNERING EXTERNAL RECOGNITION IN THE FORM OF ADDITIONAL RESTRICTED AND UNRESTRICTED FUNDS: GRANTS, SELF-SUPPORTING ENTERPRISES, INTELLECTUAL PROPERTIES, SATISFIED STUDENTS, HIGHER RANKINGS.

• WE HAVE ATTEMPTED A SIMILAR INVESTMENT IN INFRASTRUCTURE AND DEVELOPMENT WITH EQUAL SUCCESS.

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WE ARE NOT OUT OF THE WOODS YET …

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• Structural gap of as much as 7 billion dollars• Tax increase helped but did not close the budget gap• Dependency on economic growth• Pension issue remain unresolved

STATE OF ILLINOIS

11

July06

Dec06

June07

Dec07

June08

Dec08

June09

Dec09

June10

Dec10

June11

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

U of I MONTH-END GRF RECEIVABLE Dollars in Millions

12

July06

Dec06

June07

Dec07

June08

Dec08

June09

Dec09

June10

Dec10

June11

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

U of I MONTH-END GRF RECEIVABLE Dollars in Millions

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SOME OF THE ISSUES EFFECTING UIC IN FY 11

• Uncertainty regarding retirements• Uncertainty regarding state budget and rescissions• Uncertainty regarding our budget and rescissions• Conversions from Academic Professional to Civil Service• Aggressive ARR and One University agendas• The relationship of the medical center to campus • Three years of no raises

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CONSEQUENCES OF THESE ISSUES

• Loss in a number of key senior staff• Loss in a number of senior faculty • Difficulty in specifying budget targets for the colleges

in FY 12• New administrative structures• Loss of trust• Raises in AY 2012• Faculty union in 2012 (?)

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WE ACT MORE LIKE A PRIVATE UNIVERSITY THAN IN THE PAST

&WE ARE MORE ENTREPRENEURIAL

THAN IN THE PAST

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WITH RESPECT TO RESOURCES

• Our tuition income (IF; Income Fund) will exceed our state allocation (GRF: General Revenue Fund) for the first time this fiscal year.

• Our restricted funds (grants, contracts, self- supporting) exceed our unrestricted funds (tuition and state) by about two-fold.

• Our Self-Supporting funds are our single largest resource and close to half our total resources.

• Self-Supporting operations are growing at a rate matched only by tuition.

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FY 2011 REVENUE BY FUND

$767

$483$22

$117

$295

$266

Self-Supporting

Grants & Contracts

Gifts & Endowment

Institutional Funds

Income Fund

GRF

Restricted Funds($1,272)

Unrestricted Funds($678)

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

$2,000,000,000

Self-Supporting

Institutional Funds

Grants & Contracts

Gifts & Endowment

Income Fund

GRF

Fiscal Year

HISTORICAL VIEW – REVENUE BY FUNDIn Millions

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WITH RESPECT TO OUR STUDENTS Amenities: Housing, Recreation Centers, Oases , South Campus

Success : Mid-semester grades, LAS Mandatory Advising, Chancellor’s Advising Initiative, Learning Centers (Math, Science, Language, Writing, ACE), Summer College

Outcomes orientation : Job related majors, time to graduation, graduation rate, gap closure

High tuition high discount -- Access: Yearly tuition increases, four year guarantee, 10-15% of tuition returned as financial aid

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Percent Students Living on Campus

2000 2005 20100%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

New FreshmenAll Undergraduates

FRESHMEN WANT TO LIVE ON CAMPUS

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2007 2008 2009 20102007 2008 2009

Peer Group

UIC

ACCESS: HIGH TUITION, HIGH DISCOUNT

Academic Year Tuition and Fees Average Net Price of Attendance

2007 20092009 20082008 2007$0

$14,000

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

UIC

UIC

PEERS

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Student Success

1984-1990 1994-2000 2004-20100%

10%

20%

30%

40%

50%

60%

Six-year graduation rate

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NEW TYPES OF LEARNERS

2005 2006 2007 2008 2009 20100

50

100

150

200

250

300

350

Urban Planning &Public Affairs

School of Public Health

Nursing

Liberal Arts & Sciences

Engineering

Education

Coll of Med Office of the Dean

Applied Health Sciences

ENROLLMENTS

Growth in Fall Certificate Enrollments

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DIFFERENT DELIVERY MODES

2004 2005 2006 2007 2008 2009 20100

100

200

300

400

500

600

700

800

900

1,000

Fall Enrollment in Online Programs

2004 2005 2006 2007 2008 2009 20100

5

10

15

20

25

30

35

40

Number of Online Program Offerings

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Faculty FTE

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010800

900

1000

1100

1200

1300

1400

Tenure-SystemOther Faculty

WITH RESPECT TO OUR FACULTY Loss of tenure system faculty and increase in non-tenure system faculty

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CENTER-INSTITUTE RESEARCH EXPENDITURES

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010$0

$10,000

$20,000

$30,000

$40,000

$50,000In

1,0

00’s

fiscal year

2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

50

100

150

200

250

0

2

4

6

8

10

12

Disclosures

Patents Filed

License Income

Year

Num

ber

Dolla

rs in

Mill

ions

DISCLOSURES, PATENTS FILED AND LICENSE INCOME

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RESULTS ARE NOT SIMPLY FISCAL - BUT ALSO IN SATISFACTION AND

REPUTATION

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Extremely Positive

Positive Neutral Negative Extremely Negative

0

10

20

30

40

50

60

70

EAST SIDE WEST SIDE

STUDENT SATISFACTION – ALUMNI SURVEY

% of respondents

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STUDENTS WANT JOBS

How related is your current job to your major?

35

30

25

20

15

10

5

0

Closely Related Related Unrelated

by ChoiceUnrelated not

by Choice

Percent of respondents

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RECOGNITION IN THE NATIONAL PRESS

2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

50

100

150

200

250

300

Number of Hits

Assoc Press; LA Times, NY Times, USA Today, Wall Street Journal and Washington Post

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INVESTING IN OUR INFRASTRUCTUREDEFERRED MAINTENANCE

CAPITAL INVESTMENT

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CAPITAL FUNDING – DEFERRED MAINTENANCE

• 10 years of no capital funding from state

• Alternative funding options – certificates of participation, student fees, internal reallocation

• Challenge of addressing the most egregious of the deferred maintenance

• Sustainability – energy- lights – photovoltaic's – geothermal

• Shrink the physical footprint – reduce rental space & eliminate aging facilities

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CAMPUS INVESTMENT IN CAPITAL FACILITIES

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016$0

$5

$10

$15

$20

$25

$30

$35

UA pass-through

Campus R&R

Classroom remd

AFMFA

Fiscal Year

$ millions

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OUR NEXT CHALLENGE IN THIS ARENA:

BALANCING OUR U of I & UIC MISSIONS

WITH OUR GROWING ENTREPRENEURSHIP AND

PRIVATIZATION

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• How will we continue to assure access in a tuition driven world?• How will we assure a better student population means greater

diversity – of all sorts – and not simply a bigger ACT score?• How will we continue to assure excellence and purity in research,

creativity, and discovery in an entrepreneurial model?• How will we value and measure the value of research, creativity,

and discovery that cannot be measured by dollars- either directly or indirectly?

• How will we value a continuum of research, creativity, discovery that extends beyond the edges of campus and into our communities- be it a physical community such as the surrounding neighborhoods, a functionally based community such as CPS, city governments or the market place, a sister community such as the underserved communities throughout the world, or a virtual community as we find in today’s global economy?

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MAINTAINING STUDENT DIVERSITY

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

5000

10000

15000

20000

25000

30000

Total Student Enrollment by Race/Ethnicity

AmerInd/AlskNat.African AmericanAsian/Pac.Isl.CaucasianHispanicInternationalUnknown/Multi

Fall Term

MAINTAINING STUDENT DIVERSITY

45%55%

Sex

Men

Women

32%

27%

28%

6%7%

Geographic Origin

ChicagoOther Cook CountyOther IllinoisOther U.S.International

53%31%

16%

Age

22 & Under23-2930 & Over

36%

16%21%

27%

Family Income

Unknown

Less than $30,000

$30,000 to $60,000

More than $60,000

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MAINTAINING STUDENT DIVERSITY

Grant Aid for Neediest Students

$0

$10M

$20M

$30M

$40M

$50M

$60M

$70M

$80M

$90M

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Financial Aid Year

Aid

Amou

nt

UIC GrantPELLMAP

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THE FUTURE: PARTNERSHIP WITH THE PRIVATE

SECTOR

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TAKING ADVANTAGE OF CENTRALIZED /SHARED SERVICES TO ACHIEVE EFFICIENCIES AND

BECOME AGILE IN THE MARKET PLACE

ASSURING OUR UNIQUE QUALITIES AND BRINGING THEM TO THE MARKET PLACE FOR

RECOGNITION

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EMERGING MODELS: PUBLIC / PRIVATE; STATE / NON-STATE

• UIC College Prep High School• Innovation Center, IPD courses• Affiliation with private hospitals/healthcare systems

(MacNeal, Resurrection)• Illinois Ventures• Incubator Laboratory Facility, 2242 West Harrison

building• Institute for Patient Safety Excellence