External Forces Driving ISU’s Future

1. External Forces Driving ISU’s Future National Trends and Hoosier Realities

2. The World is Changing Year 2000 is less than 30 Months away

3. Six External Forces are Helping Drive Changes at ISU Public Perception Accountability Economy/Fiscal Competition Demographics Technology

4. Public Perception as a Driving Force Themes: Public Confidence Going Down Colleges Aren’t Delivering Confidence Going Down Faculty Aren’t Teaching Colleges Are Charging Too Much Education not Worth the Cost

5. Public Perception as a Driving Force The NewsHour with Jim LehrerMay 1, 1997 Rep. Buck McKeon, Chairman, Committee on Education

6. Accountability as a Driving Forceat the National Level National Panel to Study Higher Ed Costs Named Student Right-to-know Act in full swing Faculty Tenure being Questioned Department of Justice impacting International Enrollments Florida forces articulation and limits subsidies to set number of credit hours

7. The Impact of Accountability on Indiana and on ISU Greater Scrutiny ISU asked to provide information n : Student Success (Graduation & Retention) Enrollment Finances Faculty Workload Student Mix

8. The Impact of Accountability on Indiana and on 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 rates Asks for justification of financing Legislators becoming more involved

9. The Impact of Accountability on Indiana and on ISU: An Example Student Success in College a National Concern Student Right to Know: Public Law 101-542 1990

10. The Impact of Accountability on Indiana and on ISU: An Example ICHE Begins to Gather Graduation & Retention Data Retention & Graduation Report ICHE sets performance objectives by school Commission proposing funding formulas take into account student success.

11. Accountability in the Future 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

12. Accountability in the Future The point to remember: We are going to be held increasingly accountable for: What We’re Doing HowWe’re Doing It There will be a bottom line: Show Success Whom We are Doing It To Where We’re Doing It

13. Demographics as a Driving Force at the National Level • Growth in Number of Traditional Students • Students will be more Ethnically Diverse • Students will be more Age Diverse

14. Demographics as a Driving Force at the National Level

15. The Impact of Demographics on Indiana and Indiana State Projected H.S. Graduates 2007 Number Projected % Increase 1997-2007 17,559 IUPUI 19.25% 3,353 Purdue 17.48% 2,764 IU Bloomington 14.64% 2,109 ISU 7.06% 3,923 Ball State .59% 5,109 USI - .55%

16. The Impact of Demographics on Indiana and 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

17. Fiscal Factors as a Driving Force at the National Level Growth of Costs to Higher Education Institutions Source: Breaking the Social Contract: The Fiscal Crisis in Higher Education, p.8

18. Fiscal Factors as a Driving Force for ISU:ISU’s Operating Budget vs. CPI

19. Fiscal Factors as a Driving Force at the National Level

20. Fiscal Factors as a Driving Force for ISU:Funding from Appropriations Resource Trend, 1992-1995 Source: Annual Financial Reports, FY92 to FY

21. Fiscal Factors as a Driving Force for ISU:Funds Expended by the ISU Foundation on Behalf of the University

22. Fiscal Factors as a Driving Force for ISU: Expenditure Allocation 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

23. Fiscal Factors as a Driving Force for ISU: Increase Efficiency of Finances Utilities as a % of Total E&G Expenditures

24. The Future Impact of Fiscal Forces • Revenue sources will remain relatively constant • New ongoing activities will have to be funded with existing resources

25. Distinction #1 Distance Education Traditional Education C Academic content Mastery Academic Content Mastery Adult (Re)Education Holistic Educational Philosophy Lifelong Learning C Reasoning Thinking, Group Behavior Skills Placebound, Timebound Students Socialization - Rite of Passage Regional Economic Development Executive Education Distinction #2 Credentialing Robust Educational View Academic Content Mastery yields University - provided credentials even though the University educates in many other ways The Impact of Instructional Technology : Two Important Distinctions

26. The Impact of Instructional Technology: Two Propositions Proposition1: Instructional Technology: driven Market forces will affect ISU’s CoreTechnology (Teaching & Learning) Proposition2: Instructional Technology: driven expectations for flexibility will affect ISU’s Access Mission *Instructional Technology > Flexibility> Access No Instructional Technology < Flexibility< Access

27. Technology as a Driving Force at the National Level • Instructional Technology is changing Classrooms - on andoff Campus • Satellites are linking classrooms across universities Websites are being used to disseminate information as well as being used as a teaching tool Email is becoming a standard way of communicating between students and teachers Virtual classrooms are a reality

28. Technology as a Driving Force at the National Level Technology is Changing Educational Institutions: *Virtual Universities are attracting students *Private Businesses are creating universities *Role of Higher Education in society is being debated *Pedagogy is being debated *”Keep up with the Jones’ Syndrome”

29. The Impact of Technology on Indiana and ISU Technology is here: IU-Bloomington is rated the best prepared technological public campus in the country. Competitors are using technology to access new & existing markets Legislators are interested in funding technology to increase access Long distance vs. on campus education is an issue throughout the state

30. ? The Impact of Technology on the Future of ISU Technology is a Potent Tool Being Used in Education It’s Use in Every Classroom is Expected and Supported by National and Hoosier policymakers

31. Competition: National & International

32. Competition: Indiana

33. Competition: Indiana

34. Six Driving Forces in Review Competition: Competitors are Changing in Shape and Number Public Perception: Public are Interested and Skeptical Accountability: Colleges are going to be held accountable for Success Demographics: Traditional markets do not equal tremendous growth Economics: ISU traditional revenue sources = fiscally constrained environment Technology: Is a Tool that Is Expected to be Used

35. Demographics as a Driving Force 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%

36. Demographics as a Driving Force at the National Level

37. Demographics as a Driving Force at the National Level Projected Minority Growth Rates to Total Population Source:, Current Population Reports CensusBureau