9 th Annual UIC Leadership Retreat THE PRIVATE-PUBLIC CONTINUUM & A CHANGING UIC

1. 9th Annual UIC Leadership RetreatTHE PRIVATE-PUBLIC CONTINUUM & A CHANGING UIC Lon S. Kaufman VCAA/Provost August 18, 2011

2. WE ARE THOUGHTFUL STEWARDS OF OUR RESOURCES

3. UNRESTRICTED FUNDS GO TO THE COLLEGES

4. INFLATION ADJUSTED 0%

5. THE CURRENT SITUATION • End of FY 2006 155 units had deficits totaling $50 M End 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.

6. HOW DID WE – YOU - ACHIEVE THIS?

7. DECENTRALIZING - FUNDS FLOW 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.

8. 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.

9. WE ARE NOT OUT OF THE WOODS YET …

10. STATE OF ILLINOIS • 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

11. U of I MONTH-END GRF RECEIVABLE Dollars in Millions

12. U of I MONTH-END GRF RECEIVABLE Dollars in Millions

13. 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

14. 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 (?)

15. WE ACT MORE LIKE A PRIVATE UNIVERSITY THAN IN THE PAST & WE ARE MORE ENTREPRENEURIAL THAN IN THE PAST

16. 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.

17. FY 2011 REVENUE BY FUND Unrestricted Funds ($678)

18. HISTORICAL VIEW – REVENUE BY FUND In Millions

19. 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

20. Percent Students Living on Campus FRESHMEN WANT TO LIVE ON CAMPUS

21. ACCESS: HIGH TUITION, HIGH DISCOUNT Academic Year Tuition and Fees Average Net Price of Attendance $14,000 $12,000 $10,000 $8,000 UIC PEERS $6,000 UIC $4,000 $2,000 $0 2009 2008 2009 2008 2007 2007

22. Student Success Six-year graduation rate

23. NEW TYPES OF LEARNERS Growth in Fall Certificate Enrollments ENROLLMENTS

24. DIFFERENT DELIVERY MODES

25. Faculty FTE WITH RESPECT TO OUR FACULTY Loss of tenure system faculty and increase in non-tenure system faculty

26. CENTER-INSTITUTE RESEARCH EXPENDITURES In 1,000’s fiscal year

27. DISCLOSURES, PATENTS FILED AND LICENSE INCOME

28. RESULTS ARE NOT SIMPLY FISCAL - BUT ALSO IN SATISFACTION AND REPUTATION

29. STUDENT SATISFACTION – ALUMNI SURVEY % of respondents

30. STUDENTS WANT JOBS How related is your current job to your major? Percent of respondents 35 30 25 20 15 10 5 0 Unrelated by Choice Unrelated not by Choice Closely Related Related

31. RECOGNITION IN THE NATIONAL PRESS Assoc Press; LA Times, NY Times, USA Today, Wall Street Journal and Washington Post

32. INVESTING IN OUR INFRASTRUCTUREDEFERRED MAINTENANCECAPITAL INVESTMENT

33. 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

34. CAMPUS INVESTMENT IN CAPITAL FACILITIES

35. OUR NEXT CHALLENGE IN THIS ARENA: BALANCING OUR U of I & UIC MISSIONS WITH OUR GROWING ENTREPRENEURSHIP AND PRIVATIZATION

36. 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?

37. MAINTAINING STUDENT DIVERSITY

38. MAINTAINING STUDENT DIVERSITY

39. Grant Aid for Neediest Students $90M $80M $70M $60M Aid Amount $50M UIC Grant PELL $40M MAP $30M $20M $10M $0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Financial Aid Year MAINTAINING STUDENT DIVERSITY

40. THE FUTURE: PARTNERSHIP WITH THE PRIVATE SECTOR

41. TAKING ADVANTAGE OF CENTRALIZED /SHARED SERVICES TO ACHIEVE EFFICIENCIES AND BECOME AGILE IN THE MARKET PLACEASSURING OUR UNIQUE QUALITIES AND BRINGING THEM TO THE MARKET PLACE FOR RECOGNITION

42. 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