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INVESTING IN ARIZONA’S UNIVERSITIES

INVESTING IN

ARIZONA’S UNIVERSITIES

Presentation by The University of Arizona, May 5, 2008

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Investments by other States:

Missouri: Life Science Missions Enhancement 15M new, recurring dollars from state legislature• 100 new faculty were added in selected disciplines • MU’s new federal research awards increased by 132%• Royalties and patent applications doubled

Iowa: Grow Iowa Values Fund: 50M Battelle Platform Investment - Private-University-Government partnerships

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Iowa Institute for Biomedical Discovery

70 New Scientists and Clinicians

Each employing average of 6 people @ approx $52,000/year

Assuming a State income tax rate of 5%, in 10 years, employees of the Iowa Life Sciences Center would contribute a return of

approximately $211 million in State income taxes.

$30 M State Appropriations for

Iowa Life Sciences Center $210 M State income tax generated from Iowa Life

Sciences Center employees in 10 years

One of the state’s best investments

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• Competing State investments in biomedical research infrastructure: Arizona has fallen behind– Other State Investments Totaling Several Billion: Illinois,

Michigan, Virginia, North Carolina, Texas, California, New York, Pennsylvania-Georgia

– Wisconsin--$1 Billion Infrastructure/$750 Million for Research Program

– Indiana $500 Million

Arizona Must Compete

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• Increase access to specialized facilities and labs at U of A

• Address space needs of firms

• Insure supportive tax and regulatory policy

• Selective recruitment of bioscience firms

• Address shortage of risk capital

• Form executive in residence program

• Increase industry partnerships with U of A, C-Path and others

Build and invest in C-Path

• Amend state constitution to allow universities to take equity positions in companies

• Expand technology commercialization at U of A

• Build and invest in C-Path

• Secure resources to retain faculty and build U of A’s research excellence

• Build stronger clinical research base

Key

Act

ions

10 Year Vision:Southern Arizona is one of the nation’s recognized bioscience centers, driven by its strengths of a

talented workforce, a cutting edge research university, and a global center for bioscience innovation. Its civic leaders help drive the bioscience economy, mobilizing leadership committed to collaboration,

results and economic growth.

Southern Arizona Bioscience Roadmap

BioFirm Formation

Firm Expansion/Attraction Technology

DevelopmentResearch

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INVESTING IN ARIZONA’S UNIVERSITIES

FRAMING THE ISSUE

How the State allocates its investment in

Arizona’s Universities reflects Arizona’s values

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FOUR CORE COMPONENTS OF THE STATE’S INVESTMENT

ENROLLMENT INVESTMENT

DEGREE INVESTMENT

RESEARCH INVESTMENT

SERVICE INVESTMENT

INVESTING IN ARIZONA’S UNIVERSITIES

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HOW COULD STATE INVESTMENT BE ALLOCATED

ACROSS THE FOUR CORE COMPONENTS?

ENROLLMENT INVESTMENT: Target range 35-40%

DEGREE INVESTMENT: Target range 35-40%

RESEARCH INVESTMENT: Target range 21-26%

SERVICE INVESTMENT: Target range 2-5%

INVESTING IN ARIZONA’S UNIVERSITIES

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INVESTING IN ARIZONA’S UNIVERSITIES

HOW COULD STATE INVESTMENT BE ALLOCATED

ACROSS THE FOUR CORE COMPONENTS?

35%

38%

25%

2%

EnrollmentInvestment

Degree Investment

Research Investment

Service Investment

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WHAT VALUES ARE EXPRESSED IN THIS ALLOCATION MIX?

1. CREATE ACCESS TO DEGREES:

ENROLLMENT INVESTMENT VALUES

ACCESS TO HIGHER EDUCATION

Target range 35-40%

2. ASSURE A PATHWAY TO DEGREE SUCCESS:

DEGREE INVESTMENT VALUES DEGREE COMPLETION

Target range 35-40%

INVESTING IN ARIZONA’S UNIVERSITIES

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WHAT VALUES ARE EXPRESSED IN THIS ALLOCATION MIX?

3. EXPAND THE IMPACT OF INNOVATION:RESEARCH INVESTMENT VALUES

HOW UNIVERSITIES STIMULATE THE STATE’S ECONOMYWHETHER BY INDUSTRY

(New companies created, attracted or advanced by University graduates)

OR BY AN INDIVIDUAL (University-educated workforce)

Target range 21-26%

4. DISSEMINATE KNOWLEDGE TO ADVANCE ARIZONA’S COMMUNITIES:

SERVICE INVESTMENT VALUES HOW UNIVERSITIESCONTRIBUTE INTELLECTUAL CAPACITY TO THE COMMUNITY

Target range 2-5%

INVESTING IN ARIZONA’S UNIVERSITIES

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INVESTING IN ARIZONA’S UNIVERSITIESAllocation of the State of Arizona Investment in the Arizona University System

What does the State of Arizona get for a $10M Investment?

Enrollment InvestmentIncrease in

FTEInvestment per

FTE @

$4,000Univ of Ariz 250 1,000,000 Northern AZ Univ 250 1,000,000 ASU Total 385 1,540,000

885 Range35%-40%

3,540,000 35%

1%

Degree InvestmentIncrease in

DegreesIncreased

Degree Funding

Univ of Ariz 82 1,440,450 Northern AZ Univ 53 757,350 Degree WeightsASU Total 133 2,058,320

268 Range Program Category35%-40% General 1.00

Natural Science 2.004,256,120 42% Engineering/Tech 3.00

Health 5.00

Base Amount 11,000

Research Investment1% Increase in Fed Research

Intensive University Investment

Extensive University Investment

70.0% 50.0%Univ of Ariz 2,972,150 1,486,075 Northern AZ Univ 144,260 100,982 ASU 1,022,190 511,095

4,138,600 Range

2,098,152 21% 21%-26%

Service Investment

2yr Avg Public Service

Expenditures1.0%

Univ of Ariz 15,904,994 163,821 Northern AZ Univ 2,732,350 28,143 TargetASU 833,250 8,582 Range

200,547 2.0% 2%+-.5%

Total Investment FY08 BudgetGeneral Funds Tuition +Discounts

Univ of Ariz 4,090,346 443,343,400 256,938,800 Northern AZ Univ 1,886,475 160,868,800 108,510,889 ASU Total 4,117,997 496,285,100 422,622,000

10,094,819 1,100,497,300 788,071,689

An Enrollment Increase of 885 Means Access to Degrees: More Tax Revenues and Huge Tax Savings

(based on average impacts for any student beyond high school achievement)

- $123,103,500 in additional taxes paid over 885 lives.

-$35,842,500 in public health savings over 885 lives.

- $23,541,000 in crime-related cost reduction over 885 lives.

268 More Degrees Means More Money in Arizona's Pockets (using 2006 bachelors/ grad/ professional proportions):

- $4,535,500 in additional annual earnings for 193 Bachelors Degrees awarded.

- $2,038,960 in additonal annual earnings for 70 Masters/ Doctoral Degrees awarded.

- $273,215 in additional annual earnings for 5 Professional Degrees awarded.

$4.1M of New Federal Reseach Funding has an Economic Impact of

$28.7M for The State of Arizona

$200K Invested in Service Activities will Generate an Additional $514,000 ($2.57 in external funding for every state dollar invested) for the Dissemination

of Advanced Knowledge to Arizona's Communities, Multiplying our Universities' Economic Impacts:

- $9M annual savings from Bt Cotton

- 275 "Virtual Doctors" through Arizona Telemedicine

- 92,000 Students given an enhanced learning experience through 4-H