THE FLORIDA STATE UNIVERSITY State Universities of Academic and Research Excellence and National Preeminence Presentation to Blue Ribbon Panel June, 2012 Corporations are keenly interested in a skilled workforce and cutting-edge research Highly ranked universities attract top faculty and students The top 100 research universities attract more than $40B in corporate and federal research, the remaining 550 universities garner only about $10B Top tier research universities are major economic engines; students are more competitive in the market for high-paying jobs I. Our Commitment to Floridas Economic Development Our highest priorities are focused on Floridas economic development objectives and jobs for students We are ready, if we have the opportunity to invest FSU: Entrepreneurial University STEM excellence in energy and materials Comprehensive focus on successful longevity Critical needs for timely graduation National Academy members Educational partnership to recruit corporation I. Our Commitment to Floridas Economic Development Six years of declining state support have made Florida universities much more efficient, BUT we are losing ground in our ability to drive research, promote economic development, serve students FSU: Faculty #s have dropped by 50 each of the last 4 years; more than 300 total; 1/3 of Assistant Profs Nearly 80 STEM faculty have left; only 20 re-hired because of budget constraints 13 Business faculty have left since 2010 including eminent scholars (for higher salaries) I. Our Commitment to Floridas Economic Development Changes in Total Faculty 4 year changes in faculty and students II. Floridas Universities do not reflect market forces Of the six states with less tuition and fees: Four of them do not have even a single tier one research university None of them have a university ranked in the top 100 Only Utah and Louisiana have universities ranked in the top 150 U.Utah spends more per student through appropriation, T&F than FSU LSU spends the same as FSU II. Floridas Universities do not reflect market forces It is good business to be priced below the market, but not to the point of being at such a distinct competitive disadvantage that you cant deliver quality Key factor: STEM degrees are considerably more expensive than other degrees Tuition and Fees: FL Research Universities: $5,583 5,825 (the lowest) Highest Public Research: $16,132 Average Public Research: $9,500 Average of all publics: $8,244 II. Floridas Universities do not reflect market forces II. Floridas Universities do not reflect market forces or performance Tuition and Fees are the same regardless of mission or rank NR II. Floridas Universities do not reflect market forces or performance Even less correlation to National Rank with the exception of New College and FAMU the biggest difference is $342 yr II. Floridas Universities do not reflect market forces or performance Use any Metric : % Freshman Retention rate NR II. Floridas Universities do not reflect market forces or performance Any Metric: # of STEM Programs in top 100 expenditures II. Other University Systems do reflect market forces Virginia (15) NR $6958 difference II. Other University Systems do reflect market forces North Carolina (17) NR R-NR $2347 difference II. Other University Systems do reflect market forces Georgia (19) 36 R-NR $3470 difference 1/3 of all publics now charge different tuition for different majors or for difference in class standing Higher rates for juniors and seniors (closer to job market) Higher rates for more costly degrees Higher rates when salaries are higher Higher rates for higher demand majors Engineering, STEM, business, nursing most common Approximately 10% difference is common, but the rate may be as much as 45% different Decade-long studies indicate minimal impact on enrollment; little heterogeneity even by income Major, student ability, earnings are more important II. Other University Systems reflect market forces through differential tuition II. Salary is also a Market Issue Peer Comparisons II. Salary is also a Market Issue College Total Outside Offers Successful Counter-Offers Known Offers (Successful Counters) Average Increase for those that Left in Last 4 Years Average % for those that Left in Last 4 Years A&S58811 (2)$19k24% Communication1339 (3)$45K54% Business15211 (2)$74k58% Visual Arts1509 (0)$22k34% Social Work400n/a Nursing500n/a Music210n/a Social Sciences30722 (7)$31k37% Criminology924 (2)$48k44% Education3874 (3)$88k85% Human Sciences922 (2)n/a Engineering911 (1)n/a Law36245 (2)$34k22% Florida is becoming the farm team for other states Faculty salaries declining with respect to the market Competitive at Assistant Professor level and then lose ground with time makes your faculty vulnerable to being recruited Assistant Professors are even with peers, Associate Professors are about 10% below peers, and Professorial level salaries are on average 13% below our peers But, offers from other institutions are more typically 35% more than paid by FSU, if not more - taking highly productive faculty that are valued at above average salaries Florida universities become the farm team for other states once faculty credentials are established II. Salary is also a Market Issue II. Floridas Universities do not reflect market forces Florida provides many choices for higher education, including community colleges, colleges, and universities The price difference ranges from about $3000 to $5900 remarkably inexpensive and a narrow range But, also consider the student loan default rate: National average: 8.8% Florida average: 10.5% FSU:3.4% Top-ranked programs have higher graduation rates, a positive impact on job potential; lower default rates all of these factors are significant market forces Many statistics, but accountable only on enrollment target Bill based on 14 national standards of excellence Serve state needs STEM, efficiency, quality Metrics incentivize universities to reach preeminent status rather than act as an entitlement For the first time, Universities that meet the standard must describe how the proposed tuition increases will be utilized to benefit students and the State Proposals for growth, economic development, and student advancement will be a public discussion for the first time Framework for additional metrics different missions III. The Preeminence Bill Introduced a New Standard of Accountability Increases must be approved by Trustees and Governors If increase occurs too quickly, market will respond Strong commitment to financial aid for every economic class, expected family contribution + scholarships exceeds tuition and fees by more than $2000 Dedicate a portion of every tuition increase to financial aid IV. Tuition is Controlled and Accessibility is not Threatened Estimated Net Tuition and Fees by Family Income (for Full-Time Undergraduate Florida Residents in the Fall and Spring of ) FAMILY INCOME GROUPSFAMUFAUFGCUFIUFSUNCFUCFUFUNFUSFUWF Below $40,000($2,061)($4,481)($2,420)($2,753)($3,262)($4,200)($657)($4,320)($3,379)($2,863)($2,405) $40,000-$59,999$336($1,664)$588$94($430)($813)$862($667)($1,034)($308)$391 $60,000-$79,999$937$155$2,148$1,467$1,466$167$1,987$1,198$1,527$1,803$1,575 $80,000-$99,999$393$491$2,490$1,959$2,039$537$2,326$1,498$1,894$2,621$2,121 $100,000 Above$235$553$2,395$1,985$2,240$451$2,397$1,357$2,239$2,607$2,426 Missing 0$2,264n/a $4,644$1,876$2,658$2,422$1,788$4,638$2,833 TOTAL($1,365)($1,552)$1,305$550$642($791)$1,596$248($194)$209($241) We are committed to economic development and jobs, and eager to invest in Florida Market forces are being suppressed; expect negative consequences A new level of accountability should be introduced We remain committed to being highly accessible Summary FSUs National US News Ranking Among Public Universities Greatly Outstrips Its Financial Ranking