February 6, 2017President Rita Hartung Cheng

Leadership Retreat

STRATEGIC PLANNINGOffice of the Governor

Office of Strategic Planning and Budgeting

Joint Legislative Budget Committee

NAU Leadership• President• Cabinet

– Strategic Planning and Budget CouncilMaster PlanEvery 5 Years

Strategic PlanEvery 2-3 Years

Performance EvaluationEvery Year

Macro BudgetEvery Year

Task Forces

OrganizedGroups

ExternalStakeholders

FacultyStudents

Staff

Standing Committees

Strategic PrioritiesEvery Year

Arizona Board of RegentsVision 2025

Divisional PlansEvery Year

LEADERSHIP DAY 2016: LOOK BACK AT COMMENTS

2017 HIGHER EDUCATION POLICY ISSUES

1. Higher Education Funding/Resident Student State Funding Model

2. Affordability and Access

3. Economic and Workforce Development—Building a Skilled Workforce to Revitalize State Economies

4. Institutional Productivity and Student Success

5. Federal Policy Implementation

$11,331

$4,457

$11,689$11,817

$4,208

$11,386

$3,457

$12,614

$6,878

$12,089

$6,064

$12,066

$5,593

$11,260

$4,132

$12,201

$4,275 $3,452

General Fund and Net Tuition per FTEGeneral Fund per FTE

$14,000

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

FY 2008 20 0 9 2010 2011 2012 2013 2014 2015 2016 2017 Est.

$13,757

$8,333

6

NET TUITION/FEE AND STATE APPROPRIATION REVENUE

Priorities

FY18 BUDGET REQUEST

Enrollment growth support

Recruitment + retention

Faculty + staff

Maintaining viability of the Pledge Program

Infrastructure needs

Budget Request Priorities

$4.2 million Resident FTE Growth

$15.7 million 1/3 of Total Gap to Reach 50 % Resident FTE Funding Level

$19.9 million Overall Base Increase

PLUS$5.7 million One-time Capital

Infrastrcture

FY 2018 GOVERNOR’S BUDGET RECOMMENDATION

$30.3 million - State Revenue: CapitalBonding Authority

$6.5 million - Local Revenue: Operations

$36.9 million

*Allocation TBD*Logistics TBD

$3.2 million FY 2018 One-time Funding

($4 million) Remove FY 2017 One-time Funding

$1.6 million Research Infrastructure/Debt Payments

$0.8 million Net Increase

Sales Tax/TPTInfrastructure

Total Revenue: $400 million Enrollment: 21,352

Total Revenue: $552 millionEnrollment: 30,368 Total Revenue: $720 million

Enrollment: 34,909

AuxiliaryRevenue

9%Gov’t

Grants and Contracts

and Fin Aid14%

25%

Other12%

40%FY

2008

Other12%

AuxiliaryRevenue

10%

Gov’t Grants and Contracts

and Fin Aid17%42%

19%FY

2017FY

2025

43%

23%Other10%

AuxiliaryRevenue

9%

Gov’t Grants and Contracts

and Fin Aid15%

metric target

Tuition and FeesState General Fund

UNIVERSITY REVENUE SOURCES

SPENDING PER FTE BY EXPENSE CATEGORY

FY2010

FY201644%9%

10%10%

13%42%

Institutional Support $1,79313%

Institutional Support $1,91613%

Operations and Maintenance of Plant

$7916%

Operations and Maintenance of Plant

$1,0887%

Instruction $5,866

Instruction $6,188

Student Services $1,206 Student Services

$1,967

Academic Support $1,296 Academic Support

$1,480Public Service

$1,28110%

Public Service $1,029

7%

Research $1,0638

8%

Research $1,101

8%

++

+++

+

2025 PERFORMANCE METRICS

2013-14 2014-15 2015-16 2016-17 2025

Freshman Retention Rate80%

57.5%

30,312

4,597

4,500

1,810

6,930

34,909

$56,490

$35.5 million

2,500

50

Undergraduate Enrollment

Graduate Enrollment

6-year Graduation

Rate

Bachelor’s Degrees Awarded

Invention Disclosures Transacted

Public Service Activity

Degrees in High-Demand Fields

Research Activity

Graduate Degrees AwardedEducation and Related Expenses Per Degree

Total Enrollment

75.5%

51.9%

$49,898

$30.3 million

$35.2 million

3,783

3,303

1,796

27

5,119

AZ CC Transfers Awarded Bachelor’s

Degrees

$46.8 million

1,422

29,989

26,206

INITIATIVES TO DRIVE PROGRESS

Re-organization of Extended Campuses and Online Programming

Retention Plan

Recruitment Plan

Research Investments

Jacks Path and transfers

Our academic programs,

research, public service, and

creative endeavors enrich lives

and create opportunities in

Arizona and beyond. We

develop solutions to challenges

and drive innovation in a

supportive, inclusive, and

diverse environment.

Rigorous programs and

pioneering research with

substantial community impact

provide the foundation for

transformational student

opportunities that prepare

graduates to excel in creating

a sustainable future—

nationally and globally.

STRATEGIC PLANNING UPDATE

Mis

sion

VisionMission

Next Steps – Outreach

Vision

Goals for Today’s Session

Thank You