Opportunities for Renewal and Reflection During the 2014-15 Academic Year Presented to the Faculty Senate of East Tennessee State University September.

Opportunities for Renewal and Reflection During the 2014-15 Academic Year

Presented to the Faculty Senate of East Tennessee State UniversitySeptember 22, 2014

• ETSU's core values, consistency in mission, and recent strategic priorities

• Budget update and a review of ongoing budget related initiatives

• Tennessee Promise

• Capital projects and fundraising update

• Open dialogue

Presentation Overview

• ETSU pursues its mission through a student-centered community of learning reflecting high standards and promoting a balance of liberal arts and professional preparation, continuous improvement, and based on core values where:

• PEOPLE come first, are treated with dignity and respect, and are encouraged to achieve their full potential

• RELATIONSHIPS are built on honesty, integrity, and trust

• DIVERSITY of people and thought is respected

• EXCELLENCE is achieved through teamwork, leadership, creativity, and a strong work ethic

• EFFICIENCY is achieved through wise use of human and financial resources

• COMMITMENT to intellectual achievement is embraced.

Institutional Values

• “While the purpose of the Normal School Law of 1909 is declared to be ‘For the education and professional training of teachers for the public schools of the state,’ in a broader sense it is interested in making better living conditions throughout the territory which it was established to serve.”

• Four general principles were recognized in 1912 by our first president, Sidney Gilbreath: (1) to support the goal of regional service; (2) scholarship; (3) the study of education as a science, practice in teaching; and, (4) a knowledge of the conditions and needs of the State.

• The goal of regional service remains at our core in 2014. As recognized repeatedly President’s Higher Education Community Service Honor Roll, ETSU is engaged in solving community problems and placing students on a lifelong path of civic engagement.

• ETSU is a beacon for social and cultural education, the engine of economic development across the region, the purveyor and transmitter of knowledge, and foundation of the community as a whole.

Citation – History of the East Tennessee State Teachers College. Burleson, Sinclair. 1947

ETSU's Core Values, Consistency in Mission

• Access - ETSU will increase access to and participation in its educational programs while providing the human, financial and infrastructure resources needed to support these programs.

• Student Success - ETSU will increase persistence to graduation and the number of graduates while maintaining high academic standards.

• Scholarship - ETSU will support and enhance scholarship through research, service and creative activity.

• Stewardship - ETSU will advance a culture of stewardship that promotes the wise use of resources.

• Diversity - ETSU will foster a university community that enhances and supports diversity of people, thought and culture.

• Arts and Culture - ETSU will expand engagement in the arts and culture among students, faculty, staff and the community.

• Sustainability - ETSU will create a university community that is aware of, engaged in and committed to advancing sustainability.

Strategic Priorities (2010-2015)

• Through the Committee for 125, we explored issues and opportunities to meet the changing expectations of post-secondary education. These include:

Fluid policy landscape at the state level as exemplified by Complete College Tennessee

Privatization of public higher education

Shifting demographics and the diminution of “traditional” populations

Athletic programming, affiliations, revenue enhancement, and recognition of the changing nature of the NCAA

Philanthropy, community engagement, alumni support

Research and development, business incubation centers, externally sponsored research, and the role of ECD at ETSU

Structural issues internal and external to ETSU

Recognition of the need to develop to budget, planning, and reporting mechanisms

• The work of the Committee for 125 provides our foundation as we prepare for the development of the 2015-20 Strategic Plan and create structures that align planning and budgeting across the institution.

The Committee for 125 and the 2015-20 Strategic Planning Process

The Committee for 125 – Review and Update• Through multiple venues, we are striving to create a culture of transparency in

which processes are open, transparent, and inclusive.

• Initiated administrative and infrastructure review and redesign for greater efficiency and growth and innovation in budget and finance systems, academic programming, institutional advancement, university relations and marketing, and student affairs.

• Created a comprehensive first year experience, increased student financial support, developed an integrated student advising system, and expanded student-centered services both physical and virtual.

• Enhanced access-oriented enrollment management programs.

• Enhancing our commitment to diversity, inclusion, and engagement across the university

• Developing Key Performance Indicators related to enrollment, endowment, community relations, cost structures, asset utilization, research productivity, student outcomes, etc.

• Developing strategic partnerships with civic and business leaders, focusing on opportunities to generate revenue, enhance research, broaden our market presence and support the objectives of the Committee for 125 to further advance the university.

ETSU – Data Highlights (2013-14)• Enrollment: 14,957

• Undergraduate - 11,820

• Graduate - 2,260

• Quillen COM - 548

• Pharmacy - 329

• Full-time - 10,970

• Part-time - 3,110

• In-state - 82.58%

• Degrees Conferred: 3,199• Bachelor’s Degrees - 2,314

• Master’s Degrees - 574

• Doctor of Pharmacy – 74

• Doctor of Medicine – 63

• Doctor of Education - 33

• Retention Rate: 75.4% (F12-F13)

• Graduation Rate: 51.8% (F07 cohort)

• Tuition/fees: $3,624.50 (in-state undergraduate), $4,622.50 (in-state graduate)

$11,280.50 (out-of- state undergrad), $11,652.50 (out-of-state grad)

• Total budget: $466,504,860

• Research funding: $43 million8

ETSU – Programmatic Highlights • ETSU offers more than 100 undergraduate and graduate degree programs, with 13 on

the doctoral level

• Our College of Nursing is the largest in Tennessee and our faculty maintain 10 nurse managed clinics throughout the region.

• ETSU is one of fewer than five Computing programs in the US that hold the “triple crown” of ABET computing accreditations—that is, in Computer Science, in Information Technology, and in Information Systems

• ETSU is one of only 15 universities in the nation to offer the full complement of TRIO programs, which provide educational services and assistance to many first-generation college students.

• The Quillen COM is currently ranked 5th in the nation for excellence in rural medicine education and ETSU is consistently ranked among the top 10 schools in the country for rural medicine.

• Not only is the Bluegrass, Old Time, and Country Music program the oldest in the nation, its Grammy nominated faculty are annually recognized for excellence by the International Bluegrass Music Association.

• Our ROTC Ranger Challenge team was ranked as the top Army ROTC team in the state of Tennessee for the third year in a row.

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• With implementation of the new THEC funding formula, there was a negative impact to the ETSU budget in the amount of $2,468,500 due to the removal of the hold harmless provision. Further reductions in state support are expediting our transition to a publicly located but privately funded university.

• Budget reductions totaling 6.2 percent of the base were implemented for 2014-15. The budget adjustments represent permanent reductions to the base, with the understanding that any revenue growth would be used to replenish institutional reserves and/or support strategic goals

• Through strategic and dedicated action, we navigated budgeted challenges partially created by a false security in historic patterns of enrollment growth to offset state revenue reductions.

• Barring unforeseen circumstances, we do not anticipate the need for additional budget reductions during the current academic year and our focus turns to the work of developing sustainable budget models for ETSU.

Budget Update

2014-15 Census Date Enrollment

Census Census Census Census

2013 Sept. 7th

2014 Change 2013 Sept. 7th

2014 ChangeAustin Peay *** 10,069 9,729 -3.4 7,683 7,523 -2.1East Tennessee 14,083 13,823 -1.8 11,720 11,607 -1.0Middle Tennessee 23,878 22,731 -4.8 19,548 18,651 -4.6Tennessee State 8,816 9,028 2.4 7,067 7,314 3.5Tennessee Tech 11,137 11,366 2.1 9,770 9,917 1.5University of Memphis 21,480 21,059 -2.0 16,461 16,299 -1.0 Total Universities 89,463 87,736 -1.9 72,250 71,310 -1.3

Chattanooga State 9,912 9,333 -5.8 6,199 5,549 -10.5Cleveland State 3,784 3,517 -7.1 2,463 2,303 -6.5Columbia State 5,225 5,116 -2.1 3,246 3,116 -4.0Dyersburg State 3,259 2,846 -12.7 1,914 1,672 -12.6Jackson State 4,585 4,926 7.4 2,719 2,782 2.3Motlow 4,898 4,790 -2.2 2,884 2,953 2.4Nashville State 10,008 10,045 0.4 5,709 5,740 0.5Northeast State 5,833 5,842 0.2 3,850 3,861 0.3Pellissippi State 10,704 10,099 -5.7 6,826 6,469 -5.2Roane 6,214 5,826 -6.2 3,703 3,502 -5.4Southwest 10,740 10,182 -5.2 6,702 6,397 -4.6Volunteer State 8,160 7,665 -6.1 4,934 4,716 -4.4Walters State 6,267 6,006 -4.2 4,083 3,988 -2.3

Total Comm Colleges 89,589 86,193 -3.8 55,232 53,048 -4.0

ETSU- College of Med 282 288 2.1 282 288 2.1ETSU- Coll of Pharm 330 324 -1.8 330 324 -1.8

Total 179,664 174,541 -2.9 128,094 124,970 -2.4

HEADCOUNT FTE

Current and Projected Number of High School Graduates

Source: Western Interstate Commission on Higher Education, “Knocking at the College Door”

Budget Review and Structural Change • As part of the work of the Committee for 125, ETSU undertook a review of

budget processes, governance structure, policy mechanisms, accountability reporting, and foundation/fundraising structures which culminates with several consultant reports.

• Budget Process Committee - Exploring the development of a decentralized budget process that integrates strategic planning and budgeting.

• Academic Portfolio Review Committee - Conducting a holistic review of academic and administrative programs and services that includes opportunities for program redesign, interdisciplinary collaboration, and programmatic changes that enhance program viability and student success

• Administrative Services Committee - Identifying opportunities for increased quality of service, efficiencies and cost savings. These opportunities will be considered in light of relevance to mission, support of a student-centered growth agenda, and fiscal stewardship.

• Committees are actively engaged with the campus in a process that is open, transparent, and inclusive. The website is as follows:

http://www.etsu.edu/125/newbudgetprocess/default.aspx 13

• Sustained pressure to increase enrollment but also enhance retention in light of Complete College

• Increased enrollment competition across sectors, ranging from marketing to the rise of associate degree programs

• As a result of Common Core, there is growing public concern related to college readiness and student learning outcomes

• Increased pressure from state and regional entities to focus on transfer, articulation and completion

• Course redesign and student centered models – how do they impact student success?

• Western Governors University, PLA, MOOCS and other non-traditional access venues.

• Student services, academic support, and the total college experience

CCTA, Promise, and the State Policy Landscape

Tennessee Promise

• Commits to providing on a continuing basis two years of community college or a college of applied technology (TCAT) absolutely free of tuition and fees to graduating high school seniors. The governor transferred lottery reserve funds to create an endowment, with the goal of strategically redirecting existing resources.

• As part of this program, the Hope Scholarship award amount were changed for the first two years of college to $3,500 annually and $4,500 for the last two years of college.

• The program makes several changes in various lottery funded scholarship programs, including: funding for former Hope Scholarship recipients to receive Wilder Naifeh scholarships, “last dollar” funds for Wilder Naifeh recipients and high school students participating in dual enrollment classes, and modifying the eligibility period for Hope Scholarships (eight semesters).

East Tennessee State University

Tennessee Promise

East Tennessee State University

Tennessee Promise

Tennessee Promise

The Impact of TELS at ETSU

# of FTF TN Res

# of FTF w/Lottery

% FTF w/Lottery

# of FTF Tn Res

# of FTF w/Lottery

% FTF w/Lottery

ETSU 1,242 1,007 81% 1,624 1,326 82%TBR Universities 9,165 7,454 81% 10,152 8,326 82%TBR Community Colleges 10,670 4,506 42% 12,481 5,493 44%UT System 6,032 5,380 89% 7,022 6,718 96%

2004 2012

Lottery Scholarship Participation Rates (2012)

Institution HOPE GAMS ASPIRE ACCESS TOTAL HOPE GAMS ASPIRE ACCESS TOTAL

APSU 567 37 388 31 1,023 1,593 115 883 33 2,624 ETSU 837 69 402 18 1,326 2,830 283 1,224 18 4,355 MTSU 1,428 72 877 54 2,431 4,939 340 2,351 56 7,686 TSU 103 147 16 266 406 1 368 18 793 TTU 1,112 134 419 9 1,674 3,250 467 1,174 9 4,900 UM 996 64 546 1,606 3,183 289 1,488 4,960

UTC 1,400 48 451 23 1,922 3,511 320 1,042 25 4,898 UTK 2,303 612 784 3 3,702 8,077 2,327 2,520 3 12,927 UTM 615 43 423 13 1,094 1,671 161 952 13 2,797

First-Time Freshman Overall Recipients

Lottery Scholarship Receipt by Scholarship Program and Institution (Fall 2012)

ACT Scores for Incoming Freshman

• Arts Initiative

• ETSU authorized to spend $1.5 million to begin the planning process

• Engineering review and evaluation of site options

• Architectural review and programing efforts underway

• Fundraising update – More than $6.4 million raised to date, with significant gifts remaining in the queue

• Anticipate funding in the 2015 legislative session

• Construction Projects

• Parking Garage opened in Spring 2014, which includes support offices and retail space

• Beginning planning work for renovation to the Culp Center

• Planning and design for football practice and game facilities

• Center for Inter-professional Education (Bldg 60)

Capital Projects and Construction Update

ETSU Fine Arts FacilityThe Importance of the Arts: Economic and

Community Development

• Fine and Performing Arts Centers serve as a gathering place for the community and its visitors, providing opportunities for the lifelong expression and appreciation of the arts.

• Such centers play a vital role in enhancing the quality of life, bolstering cultural and economic vitality, strengthening tourism, and expanding the educational offerings for communities and regions.

• Such centers serve are influential in the vitality of regional economic development and diversify regional footprints.

• Programming enhances educational achievement and intellectual capacity and promotes the arts and sciences as an integral part of life.

ETSU Fine Arts Facility•Building Type: Fine Arts Classroom Building•Cost: $39,200,000•Approved Location: On Campus-adjacent to Univ. Pkwy•Size: 130,000 sq. ft.

• 750 Seat Auditorium• 400 seat Classroom• 150 seat Classroom• Theatre Instructional Spaces (21,000 sf)• Music Instructional Spaces (31,000 sf)• Offices and support space

•October 2013 – State Building Commission approved project•Programming – Underway

Original Project Scope

ETU Fine Arts FacilityETSU Master Plan

Fine and Performing Arts Center – Possible Locations

ETSU Fine Arts FacilityLocation Alternatives

Option 1 - Lot 1•Capacity: Minimum of 1,000 seats•Local support needed:

• $4,250,000 (250 seats x $17,000 per seat)• $ 500,000 – pedestrian crossing and signal• $ 800,000 – water abatement• $5,550,000 – Total Costs

Location Alternatives

Option 2 - Lot 1•Capacity: Minimum of 750 seats•Local support needed:

• $ 500,000 – to meet match requirement• $ 500,000 – pedestrian crossing and signal• $ 800,000 – water abatement• $1,830,000 – Total Costs

Option 3 - Campus/University Parkway•Capacity: 750 seats•Local support needed:

• $ 500,000 – to meet match requirement• $ 500,000 – Total Costs

ETSU Fine Arts FacilityProcedural Aspects - Project Approval, Design, and

Construction

•Project included in Governor Haslam’s 2013 budget for planning and design

•Project approved by the State Building Commission

•Project presented by TBR to THEC for funding during the 2014 legislative session ($35 Million in state funds)

•Project design and architecture designation

•Lot 1 and associated property acquisition

•PBA approval and allowances made for zoning, site use, etc.

•Johnson City donation of property in immediate proximity to the Millennium Center

•ETSU and JC negotiate lease and acquisition of restricted portions of the Millennium Center

•Project fully funded in 2015 legislative session

• How do we increase enrollment in an environment challenged by the tensions of access and affordability?

• How do we diversify tuition revenues across regional, national, and international markets?

• How do we compete with Tennessee Promise, which is changing the dinner table conversations about higher education?

• How do we maximize the opportunities presented through the emergence of off-site housing?

• How do we enhance graduate education at ETSU?

• How do we navigate the emergence of new health science schools across the region?

• What is our role in the emerging conversations between MSHA and Wellmont?

• How do we enhance the culture of research across campus?

• How do we develop a culture of faculty engagement and promote the role of faculty at ETSU?

• How do we balance tensions across campus regarding who we are and where we need to go in an uncertain environment?

Questions for Consideration and Discussion

Questions and Discussion