External Forces External Forces Driving Driving

ISU’s FutureISU’s Future

National Trends and National Trends and Hoosier RealitiesHoosier Realities

The World is ChangingThe World is Changing

Year 2000 is less than 30 Months away

Six External Forces are Six External Forces are Helping Drive Changes at Helping Drive Changes at

ISUISUPublic

Perception

Economy/F

iscal Accountability

Technology Demographics

CompetitionCompetition

Public Perception as a Public Perception as a Driving ForceDriving Force

Themes:

Confidence Going Down

Public Confidence Going Down

Colleges Aren’t Delivering

Education not Worth the Cost

Faculty Aren’t TeachingColleges Are Charging Too

Much

Public Perception as a Public Perception as a Driving ForceDriving Force

The NewsHour with Jim LehrerThe NewsHour with Jim LehrerMay 1, 1997May 1, 1997

Rep. Buck McKeon, Rep. Buck McKeon, Chairman, Committee on Chairman, Committee on

EducationEducation

Accountability as a Driving Accountability as a Driving ForceForce

at the National Levelat the National Level

Student Right-to-know Act in full swing

National Panel to Study Higher Ed Costs Named

Faculty Tenure being QuestionedDepartment of Justice

impacting International EnrollmentsFlorida forces articulation and

limits subsidies to set number of credit hours

The Impact of The Impact of Accountability on Indiana Accountability on Indiana

and onand on ISU ISU

Greater Scrutiny ISU asked to provide information n :

Faculty WorkloadFinances

Enrollment

Student Success (Graduation & Retention)

Student Mix

The Impact of The Impact of Accountability on Indiana Accountability on Indiana and onand on ISU ISU

Greater Involvement -

ICHE sets performance objectives for ISU:Increase matriculation of high school students in service area

Accept high percentage of students completing CORE 40

Increase 21st Century Scholars

Retention and graduation ratesAsks for justification of financingLegislators becoming more involved

The Impact of The Impact of Accountability on Indiana Accountability on Indiana and onand on ISU: An Example ISU: An Example

Student Right to Know:

Public Law 101-542

1990

Student Success in College a

National Concern

The Impact of The Impact of Accountability on Indiana Accountability on Indiana and onand on ISU: An Example ISU: An Example

ICHE Begins to Gather

Graduation & Retention Data

ICHE sets performance objectives by school

Commission proposing funding formulas take into account student

success.

REVIEW DRAFT: NOT FOR CITATION OR DISTRIBUTIONAUGUST 1, 1997

REPORT ON DEGREE COMPLETION AND PERSISTENCEIN INDIANA PUBLIC POSTSECONDARY EDUCATION,

1990 ENTERING FRESHMEN:

BIENNIEL REPORT TO THE GENERAL ASSEMBLY

August 1, 1997

Indiana Commission for Higher Education101 West Ohio Street, Suite 550

Indianapolis, Indiana 46204-1971Tel: (317) 464-4400Fax: (317) 464-4410

http://www.che.state.in.us

Retention &

Graduation

Report

Retention &

Graduation

Report

Accountability in the Accountability in the FutureFuture

Greater Demands for Information

Areas of Interest to ICHE:

Fall Sections per Faculty FTE

School Credit Hours per Faculty FTE

Staff FTEs per Faculty FTE

Instructional Expenditures as % of Total and % of Student FTE

Tuition Fees

Percent on campus students

Percent of Hoosier Students

Accountability in the Accountability in the FutureFuture

The point to remember:

We are going to be held increasingly accountable for:

What We’re Doing

There will be a bottom line:

Show SuccessWhom We are Doing It To

Where We’re Doing It

How We’re Doing It

Demographics as a Driving Demographics as a Driving Force at the National Level Force at the National Level

Growth in Number of Traditional Growth in Number of Traditional StudentsStudents

Students will be more Ethnically Students will be more Ethnically DiverseDiverse

Students will be more Age DiverseStudents will be more Age Diverse

Percent Change in Number of High School Graduates, by Region: 1994-1995 to 2006-2007

0 0.1 0.2 0.3 0.4

Northeast

Midwest

South

West

Regio

n

Percent Change

Demographics as a Driving Force at the National Level

The Impact of The Impact of Demographics on Indiana Demographics on Indiana

and Indiana Stateand Indiana StateProjected H.S. Graduates 2007

% Increase 1997-2007

Number Projected

The Impact of The Impact of Demographics on Indiana Demographics on Indiana

and Indiana Stateand Indiana State

The Point to

ISU is not going to grow if it relies on its traditional markets:

a. Numbers in markets are small

b. Competition is increasing

Fiscal Factors as a Driving Fiscal Factors as a Driving Force at the National LevelForce at the National Level

Source: Breaking the Social Contract: The Fiscal Crisis in Higher Education,

p.8

Growth of Costs to Higher Education Institutions

Fiscal Factors as a Driving Force for Fiscal Factors as a Driving Force for ISU:ISU:

ISU’s Operating Budget vs. CPIISU’s Operating Budget vs. CPI

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

Per

cen

t o

f In

crea

se

FY92 FY93 FY94 FY95 FY96

Increase in Operating Budget Increase in CPI

Fiscal Factors as a Driving Fiscal Factors as a Driving Force at the National LevelForce at the National Level

Fiscal Factors as a Driving Force for Fiscal Factors as a Driving Force for ISU:ISU:

Funding from AppropriationsFunding from Appropriations

69.01 67.16 66.06 65.03 64.41

25.82 27.92 28.71 29.35 28.91

5.16 4.92 5.23 5.62 6.680

10

20

30

40

50

60

70

80

1992 1993 1994 1995 1996

Fiscal Year

Re

so

urc

e C

on

tro

l Ra

tio

Governmental Appropriation Student Fees Investment/other

Source: Annual Financial Reports, FY92 to FY

Resource Trend, 1992-1995

Fiscal Factors as a Driving Force for Fiscal Factors as a Driving Force for ISU:ISU:

Funds Expended by the ISU Funds Expended by the ISU Foundation on Behalf of the Foundation on Behalf of the

UniversityUniversity

$2,750,000

$2,800,000

$2,850,000

$2,900,000

$2,950,000

$3,000,000

$3,050,000

$3,100,000

$3,150,000

$3,200,000

$3,250,000

1991 1992 1993 1994 1995

Fiscal Factors as a Driving Fiscal Factors as a Driving Force for ISU: Expenditure Force for ISU: Expenditure

Allocation RatioAllocation Ratio

Fiscal Year 1992 1993 1994 1995 1996

Instr. & Acad. Sup. 57.17 55.43 55.46 58.80 59.15

Public Service .69 1.20 1.07 .88 1.02

Student Services 2.86 4.01 4.25 5.91 5.33

Oper.& Maint. Plant 13.47 12.15 12.06 10.94 11.09

Institutional Support 15.82 16.69 16.06 11.70 12.32

Student Aid 4.78 5.29 5.57 5.43 5.08

Mandatory Transfers 5.21 5.23 5.54 6.34 6.00

Source: Annual Financial Reports FY92 to FY96

Fiscal Factors as a Driving Fiscal Factors as a Driving Force for ISU: Increase Force for ISU: Increase Efficiency of FinancesEfficiency of Finances

$0

$1

$2

$3

$4

$5

$6

FY92 FY93 FY94 FY95 FY96

Utilities as a % of Total E&G Expenditures

The Future Impact of Fiscal The Future Impact of Fiscal ForcesForces

Revenue sources will remain Revenue sources will remain relatively constantrelatively constant

New ongoing activities New ongoing activities will have to be funded will have to be funded with existing resourceswith existing resources

The Impact of Instructional The Impact of Instructional Technology : Two Important Technology : Two Important

DistinctionsDistinctions

Distinction #1Traditional Education Distance Education

Academic Content Mastery C Academic content Mastery Holistic Educational Philosophy Adult (Re)Education

C Reasoning Thinking, GroupBehavior Skills

Lifelong Learning

Socialization - Rite of Passage Placebound, Timebound Students Regional Economic Development

Executive Education

Distinction #2Robust Educational View Credentialing

Academic Content Mastery yields University - provided credentialseven though the University educates in many other ways

The Impact of Instructional The Impact of Instructional Technology: Two PropositionsTechnology: Two Propositions

PropositionProposition 1:1:

PropositionProposition 2:2:

Instructional Technology: driven Market forces will affect

ISU’s CoreTechnology (Teaching & Learning)

Instructional Technology: driven Market forces will affect

ISU’s CoreTechnology (Teaching & Learning)

Instructional Technology: driven expectations for flexibility

will affect ISU’s Access Mission

*Instructional Technology > Flexibility> Access

No Instructional Technology < Flexibility< Access

Instructional Technology: driven expectations for flexibility

will affect ISU’s Access Mission

*Instructional Technology > Flexibility> Access

No Instructional Technology < Flexibility< Access

Technology as a Driving Technology as a Driving Force at the National LevelForce at the National Level

Instructional Technology is changing Classrooms Instructional Technology is changing Classrooms - on andoff Campus- on andoff Campus

– Satellites are linking classrooms across universitiesSatellites are linking classrooms across universities

Websites are being used to disseminate Websites are being used to disseminate information as well as being used as a teaching information as well as being used as a teaching tooltool

Email is becoming a standard way of Email is becoming a standard way of communicating between students and teacherscommunicating between students and teachers

Virtual classrooms are a realityVirtual classrooms are a reality

Technology as a Driving Technology as a Driving Force at the National LevelForce at the National Level

*Virtual Universities are attracting students*Virtual Universities are attracting students

*Private Businesses are creating universities*Private Businesses are creating universities

*”Keep up with the Jones’ Syndrome”*”Keep up with the Jones’ Syndrome”

*Pedagogy is being debated*Pedagogy is being debated*Role of Higher Education in society is being debated*Role of Higher Education in society is being debated

Technology is Changing Educational Technology is Changing Educational Institutions:Institutions:

The Impact of Technology The Impact of Technology on Indiana and ISUon Indiana and ISU

Technology is here: Technology is here: IU-BloomingtonIU-Bloomington is rated the best is rated the best prepared technological public prepared technological public campus in the country.campus in the country.Competitors are using technology to access Competitors are using technology to access new & existing marketsnew & existing markets Legislators are interested in funding Legislators are interested in funding technology to increase accesstechnology to increase accessLong distance vs. on campus education is an Long distance vs. on campus education is an issue throughout the stateissue throughout the state

The Impact of Technology The Impact of Technology on the Future of ISUon the Future of ISU

Technology is a Potent Technology is a Potent Tool Being Used in Tool Being Used in EducationEducationIt’s Use in Every It’s Use in Every Classroom is Expected Classroom is Expected and Supported by and Supported by National and Hoosier National and Hoosier policymakerspolicymakers

Competition: National & Competition: National & InternationalInternational

Emerging National Markets

More Consumers with More Choices

Learning Opportunities: Less Provider-Driven More Consumer Driven

Blurred Distinctions between Publics and Privates

New Competitions Programs/Services external to the Institution Programs/Services within the Institution

Competition for Low-Cost Delivery of Quality Academic Content

Competition regarding the Quality of Pedagogy

Competition for Strategic Partners Collaboration Roles Private Capital

Competition: IndianaCompetition: Indiana

Flat Residential Market Growth in Commuter Campuses Increase Competition for Market Share

Indiana Wesleyan Currency of Enrollments Marketing Expansion

Increase Competition for Residential Students ICHE Incentives USI Dorms IU Regionals Dorms

Expanded Interest in Distance Delivery Purdue Executive MBA Ivy Tech State College Ball State University Indiana University

Competition: IndianaCompetition: Indiana

More Collaboration - Competition for Niche IPSE WVEA Southeast and South Central PEPP - Degree Link

Blurring of Missions Means Sharing Our Niche All Publics State Access Missions IU Statewide Associates of Arts Degree Ivy Tech as a transfer institution More Graduate Programs at Regional USI Statewide, Residential Mission

Six Driving Forces in Six Driving Forces in ReviewReview

Public Perception: Public Perception: Public are Interested and SkepticalPublic are Interested and SkepticalPublic Perception: Public Perception: Public are Interested and SkepticalPublic are Interested and Skeptical

Accountability: Accountability: Colleges are going to be Colleges are going to be held accountable for Successheld accountable for Success

Accountability: Accountability: Colleges are going to be Colleges are going to be held accountable for Successheld accountable for Success

Demographics: Demographics: Traditional markets do Traditional markets do not equal tremendous growthnot equal tremendous growth

Demographics: Demographics: Traditional markets do Traditional markets do not equal tremendous growthnot equal tremendous growthEconomics: Economics: ISU traditional revenue ISU traditional revenue sources = fiscally constrained sources = fiscally constrained environmentenvironment

Economics: Economics: ISU traditional revenue ISU traditional revenue sources = fiscally constrained sources = fiscally constrained environmentenvironment

Technology: Is a Tool that Is Expected to Technology: Is a Tool that Is Expected to be Usedbe Used

Technology: Is a Tool that Is Expected to Technology: Is a Tool that Is Expected to be Usedbe Used

Competition: Competitors are Changing in Shape and Number

Competition: Competitors are Changing in Shape and Number

Demographics as a Driving Demographics as a Driving Force at the National LevelForce at the National Level

Percent Change in number of Public High School Graduates, by

State: 1994-95 to 2006-07

-15.0 to 0%

Growth

0.1 to 14.9%

15.0 to 29.9%

30 to 105%

Demographics as a Driving Demographics as a Driving Force at the National LevelForce at the National Level

Demographics as a Driving Demographics as a Driving Force at the National LevelForce at the National Level

Projected Minority Growth Rates to Total Population

Source:, Current Population Reports Census Bureau