1. A Performance Model for Enrollment Expansion and Funding November 4, 2010

2. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 1 Previous Steps Fostering Greater Accountability Raised admission standards Established Academic Boot Camps All campuses participate in National Voluntary System of Accountability Established Five Years of Retention & Graduation Goals for each campus beginning 2008-09 Funded additional counselors and advisors Working jointly with the Community Colleges to project and plan enrollment and degree production Raised admission standards Established Academic Boot Camps All campuses participate in National Voluntary System of Accountability Established Five Years of Retention & Graduation Goals for each campus beginning 2008-09 Funded additional counselors and advisors Working jointly with the Community Colleges to project and plan enrollment and degree production

3. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 2 Examples of Five-Years of Targets: Retention UNC Freshman-to-Sophomore Retention Rates Institution Actual 2008 (2009) Goals 2003 (2004) 2004 (2005) 2005 (2006) 2006 (2007) 2007 (2008) 2009 (2010) 2010 (2011) 2011 (2012) 2012 (2013) GoalActualDifference NCSU90.7%89.2%89.4%89.2%89.6% 90.5%90.9%0.4% 91.0% 91.5% UNC-CH95.4%96.6% 96.5%96.2% 96.5%95.7%-0.8% 96.5% ECU78.8%75.9%78.7%77.3%75.9% 79.0%78.8%-0.2% 81.0%82.0%82.5%83.0% UNCG77.0%77.5%76.3%75.9%76.0% 76.6% 0.0% 77.4%78.3%79.1%80.0% UNCC77.1%78.7%77.4%77.0%78.1% 78.0%77.9%-0.1% 79.0%80.0%81.0%82.0% NCA&T73.1%72.5%68.9%71.7%73.6% 72.0%77.1%5.1% 74.0%76.5%77.0%80.0% ASU84.4%85.8%84.5%85.6%87.4% 86.0%86.4%0.4% 87.0%88.0%90.0% UNCW85.7%83.2%83.1%84.5%85.4% 86.0%84.7%-1.3% 87.0%88.0%89.0%90.0% WCU73.9%70.9%71.3%66.5%71.5% 69.0%76.2%7.2% 72.0%73.0%74.0%75.0% NCCU77.8%76.4%71.0%77.3%71.6% 76.0%77.0%1.0% 77.0%78.0%79.0%80.0% FSU72.7%75.4%70.8%73.3%69.2% 74.0%73.6%-0.4% 76.0%77.0%78.0%80.0% WSSU77.7%75.3%73.0%68.0%73.4% 71.0%77.8%6.8% 73.0%75.0%78.0%80.0% UNCP67.1%72.3%67.5%71.5%67.3% 70.8%67.5%-3.3% 72.0%73.0%74.0%75.0% ECSU76.3%74.7%72.3%79.4%76.7% 76.0%76.3%0.3% 77.0%78.0%80.0% UNCA79.9%76.4%80.5%76.3%78.5% 80.0%81.9%1.9% 81.5%82.0%83.0%84.0% UNCSA76.9%73.9%76.6%81.1%77.5% 76.0%77.4%1.4% 77.0% 78.0% UNC System81.8%81.3%80.6%81.0%81.3% 82.7% Note: Numbers represent the retention rates of first-time full-time freshmen enrolled in the fall semester of the indicated years. The years in parentheses are the measuring years.

4. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 3 Examples of Five-Years of Targets: Six-year Graduation Rate UNC Six-Year Graduation Rates Institution Actual 2003 (2009) Goals 1998 (2004) 1999 (2005) 2000 (2006) 2001 (2007) 2002 (2008) 2004 (2010) 2005 (2011) 2006 (2012) 2007 (2013) GoalActualDifference NCSU66.9%70.5%70.3%69.6%71.5% 72.0%73.2%1.2% 72.5%73.0%73.5%74.0% UNC-CH81.7%83.8% 82.6%86.1% 83.5%84.9%1.4% 84.5%86.0%87.0% ECU53.3%54.4%56.4%54.4%54.3% 56.5%56.8%0.3% 57.0%58.0%59.0%60.0% UNCG50.2%51.1%52.0%49.8%52.5% 51.8%51.6%-0.2% 53.9%55.9%58.1%60.0% UNCC46.6%48.7%49.8%50.5%50.6% 50.0%53.9%3.9% 51.0%52.0% 53.0% NCA&T42.5%39.5%38.0%41.4%37.7% 43.0%37.2%-5.8% 45.0%46.0%48.0%50.0% ASU60.3%64.0%61.6%62.5%63.9% 64.0%64.4%0.4% 65.0%66.0%67.0%68.0% UNCW61.2%63.5%65.1%64.8%67.1% 67.0%68.5%1.5% 68.0%69.0%70.0%71.0% WCU46.0%47.3%46.7%47.4%49.5% 48.5%48.8%0.3% 49.5%51.5%53.0%55.0% NCCU50.8%44.9%49.3%48.3%47.9% 50.0%44.4%-5.6% 51.0%52.0%53.0%55.0% FSU34.9%42.2%37.0%35.6%38.0% 40.0%31.5%-8.5% 42.0%45.0%46.0%47.0% WSSU44.1%47.9%44.1%45.1%39.3% 46.0%36.5%-9.5% 47.0%48.0%50.0%52.0% UNCP41.6%34.9%37.6%34.0%33.4% 36.0%34.1%-1.9% 37.0%38.0%40.0%42.0% ECSU45.4%49.1%49.3%50.7%42.8% 43.0%45.8%2.8% 45.0%47.0%49.0%52.0% UNCA51.5%53.1%53.3%53.6%59.6% 56.0%58.7%2.7% 56.0%58.0%60.0% UNCSA49.6%57.0%54.2%51.4%55.6% 53.0%61.2%8.2% 55.0% 58.0% UNC System57.9%59.1%59.3%58.7%58.8% Note: Numbers represent the retention rates of first-time full-time freshmen enrolled in the fall semester of the indicated years. The years in parentheses are the measuring years.

5. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 4 Examples of Five-Years of Targets: AA/AS Transfer Four-Year Graduation Rate Four-Year Graduation Rates of NCCCS Associate Degree Recipients Who Transferred to UNC Institutions Institution Actual 2002-04 (2006-08) Goals 1997-99 (2001-03) 1998-00 (2002-04) 1999-01 (2003-05) 2000-02 (2004-06) 2001-03 (2005-07) GoalActualDifference Native Jr Grad Rates 2003-05 (2007-09) 2004-06 (2008-10) 2005-07 (2009-11) 2006-08 (2010-12) NCSU65.0%79.0%72.0%74.0%72.0% 75.0%3.091.0% 72.5%73.0%73.5% UNC-CH71.0%75.0%72.0%71.0%68.0% 69.0%68.0%92.0% 69.0% ECU63.0%72.0%70.0%69.0%68.0% 71.0%68.0%-3.089.0% 72.0%72.5%73.0%74.0% UNCG66.0%69.0%67.0%65.0% 67.0%63.0%-4.090.0% 67.0% 68.0% UNCC60.0%63.0% 64.0%66.0% 62.5%68.0%5.588.0% 63.0%63.5%64.0%65.0% NCA&T46.0%58.0%54.0%56.0%50.0% 51.0%53.0%2.076.0% 51.0%52.0%53.0%54.0% ASU76.0%74.0%75.0% 78.0%74.0%-4.090.0% 78.0%79.0% 80.0% UNCW75.0%79.0%77.0%79.0% 78.0%81.0%3.093.0% 79.0% 80.0%81.0% WCU76.0% 73.0%75.0%74.0% 76.5%73.0%-3.588.0% 77.0%77.5%78.0%79.0% NCCU61.0%60.0%63.0%64.0%58.0% 63.0%55.0%-8.077.0% 64.0%65.0%66.0%67.0% FSU55.0%45.0%54.0%61.0%64.0% 58.0%63.0%5.079.0% 60.0%62.0%64.0%65.0% WSSU72.0%43.0%53.0%48.0%56.0% 65.0%57.0%-8.074.0% 66.0%67.0%68.0% UNCP70.0%73.0%71.0%67.0%64.0% 71.0%59.0%-12.081.0% 72.0%73.0%74.0%75.0% ECSU69.0%58.0%63.0%62.0%64.0% 66.0%61.0%-5.086.0% 67.0%68.0%69.0%70.0% UNCA58.0%60.0%68.0%59.0%63.0% 67.0%60.0%-7.090.0% 68.0%69.0%70.0% UNCSAN/A100.0%33.0%60.0%43.0% N/A60.0%N/A33.0% N/A UNC System67.0%70.0%69.0%70.0%69.0% 70.0% 88.0% Note: Numbers represent the graduation rates of NC community college associate degree recipients who transferred to UNC institutions in the indicated 3 years. The years in parentheses are the measuring years in which those transfers graduating.

6. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 5 Performance Measures: Three Categories Retention Rates: Freshmen-to-sophomore Graduation Rates: First-time freshmen six-year rates AA transfer rates All-undergraduate graduation rates Degree Production & Efficiency: Targets for degree production (TBD) Efficiency of degree production Retention Rates: Freshmen-to-sophomore Graduation Rates: First-time freshmen six-year rates AA transfer rates All-undergraduate graduation rates Degree Production & Efficiency: Targets for degree production (TBD) Efficiency of degree production

7. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 6 Comparisons in Each Category Retention: Compared to targets and to peers Graduation: Six-year compared to targets and peers AA/AS CC transfer compared to targets Efficiency: Degrees produced compared to targets Degrees per 100 FTE undergraduate enrollment compared to peers Retention: Compared to targets and to peers Graduation: Six-year compared to targets and peers AA/AS CC transfer compared to targets Efficiency: Degrees produced compared to targets Degrees per 100 FTE undergraduate enrollment compared to peers

8. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 7 Degrees per 100 FTE Undergraduate Enrollment Compared to Peers 2008 Bachelor's Degrees per 100 FTEs (average of 6 years undergraduate enrollment: 2003 to 2008) CampusUNC Campus Public Peer Average UNC Difference from Peer Average UNCCH24.723.21.5 UNCW24.121.92.2 WCU24.020.53.5 UNCC22.720.62.1 UNCA22.621.90.7 UNCG21.0 0.0 NCSU20.623.6-3.0 ASU19.921.1-1.2 ECU19.919.60.2 WSSU19.118.40.7 FSU16.518.3-1.8 UNCP16.319.7-3.4 ECSU15.516.4-0.9 NCCU15.521.5-6.0 NCA&T12.618.0-5.5

9. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 8 Enrollment Expansion in Relation to Performance Enrollment Growth/ChangeOptions for Growth/Change* Freshman EnrollmentNone, Restricted, Normal Retention Improvement EnrollmentNone, Restricted, Normal AA Transfer EnrollmentNone, Restricted, Normal Other Transfer EnrollmentNone, Restricted, Normal Graduate Enrollment Change in Relation to Undergraduate Performance None, Restricted, Normal * Growth rates at different campuses vary, so this depends on past growth/change levels. The overall budgetary situation in the State may require redefinition of normal.

10. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 9 Funding in Relation to Performance Adjust Enrollment Expansion Funding Model to incorporate performance Focus on Cost Factors Adjust Enrollment Expansion Funding Model to incorporate performance Focus on Cost Factors

11. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 10 Funding Model Template SCH Enrollment-Change Funding Model Regular Term Request Campus:UNC-ABC ProgramStudent Credit HoursSCH per Instructional PositionInstructional Positions Required Category UGMastersDoctoralUGMastersDoctoralUGMastersDoctoral Category I4,5157290708.64169.52115.566.3714.3000.000 Category II6,0304848535.74303.93110.1611.2551.5920.073 Category III2,1182880406.24186.23109.865.2141.5460.000 Category IV000232.2590.1780.910.000 Total12,6631,5018 2 2.840 7.4380.073 Total All SCHs14,172 Subtotal Positions30.351 % of Total89.4%10.6%0.1% Campus UG Cost Factor 10.0%2.284 Total Positions Required 32.635 Instructional Salary Rate of Campus $75,000 Instructional Salary Amount $2,447,625 Other Academic Costs 44.89%$1,098,739 Total Academic Requirements $3,546,364 Library Rate 11.48% Library Amount $407,123 Gen'l Instit. Support Rate 54.05% Neg. Adj't Factor: 50.00% Gen'l Instit. Support Amount $1,916,810 Total Requirements at UNC-ABC$5,870,297

12. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 11 Current Cost Factors Service to disadvantaged student population: More than one-third Pell Grant recipients (5%): [ECSU, FSU, NCA&T, NCCU, UNCP, and WSSU] Diseconomies of Scale (5%) [ECSU and UNCA] Public Liberal Arts Mission (10%) [UNCA] Non-Doctoral Mission (10%) [ASU, ECSU, FSU, NCCU, UNCA, UNCP, UNCW, WCU, WSSU] Service to disadvantaged student population: More than one-third Pell Grant recipients (5%): [ECSU, FSU, NCA&T, NCCU, UNCP, and WSSU] Diseconomies of Scale (5%) [ECSU and UNCA] Public Liberal Arts Mission (10%) [UNCA] Non-Doctoral Mission (10%) [ASU, ECSU, FSU, NCCU, UNCA, UNCP, UNCW, WCU, WSSU]

13. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 12 Propose to Drop Two Cost Factors and Add Three Performance Factors Drop: Liberal arts Non-doctoral mission Add: Retention performance factor Graduation performance factor Productivity and efficiency performance factor Drop: Liberal arts Non-doctoral mission Add: Retention performance factor Graduation performance factor Productivity and efficiency performance factor

14. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 13 Summary of Proposed Cost and Performance Factors Service to disadvantaged student population: More than one-third Pell Grant recipients (5%) [ECSU, FSU, NCA&T, NCCU, UNCP, and WSSU] Diseconomies of scale (5%): [ECSU and UNCA] Retention performance factor (5%): [ Depends on performance] Graduation performance factor (5%): [ Depends on performance] Productivity and efficiency performance factor (5%): [ Depends on performance] Service to disadvantaged student population: More than one-third Pell Grant recipients (5%) [ECSU, FSU, NCA&T, NCCU, UNCP, and WSSU] Diseconomies of scale (5%): [ECSU and UNCA] Retention performance factor (5%): [ Depends on performance] Graduation performance factor (5%): [ Depends on performance] Productivity and efficiency performance factor (5%): [ Depends on performance]

15. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 14 High Performance Seek a pool of funds that would reward high performance Persistent high levels of performance Significant Improvement A fund of $1 million for this purpose will be sought from the General Assembly. If the General Assembly does not fund it, the President will pledge funds from the strategic initiatives reserve. Seek a pool of funds that would reward high performance Persistent high levels of performance Significant Improvement A fund of $1 million for this purpose will be sought from the General Assembly. If the General Assembly does not fund it, the President will pledge funds from the strategic initiatives reserve.

16. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 15 Proposed Implementation of Performance Measures 2011-13 Biennium Retention Efficiency High Performance 2013-15 Biennium Graduation 2011-13 Biennium Retention Efficiency High Performance 2013-15 Biennium Graduation

17. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 16 Enrollment Expansion Based on Retention Performance Data If retention performance is at or above 80%: No restriction If retention performance is less than 80%: If Performance either is more than 1 percentage point below target or is below peers: Restricted Growth If Performance both is more than 1 percentage point below target and is below peers: No growth Otherwise no restriction If retention performance is at or above 80%: No restriction If retention performance is less than 80%: If Performance either is more than 1 percentage point below target or is below peers: Restricted Growth If Performance both is more than 1 percentage point below target and is below peers: No growth Otherwise no restriction

18. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 17 Impact on Campuses University Retention Performance Above/Below Target Above/Below Peers Growth (Freshman) UNC-CH95.7%-0.8AboveNormal NCSU90.9%0.4AboveNormal ASU86.4%0.4AboveNormal UNCW84.7%-1.3AboveNormal UNCA81.9%1.9BelowNormal ECU78.8%-0.2AboveNormal UNCC77.9%-0.1AboveNormal WSSU77.8%6.8AboveNormal UNCSA77.4%1.4AboveNormal NCA&T77.1%5.1AboveNormal NCCU77.0%1AboveNormal UNCG76.6%0BelowRestricted ECSU76.3%0.3AboveNormal WCU76.2%7.2BelowRestricted FSU73.6%-0.4AboveNormal UNCP67.5%-3.3BelowNone

19. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 18 Funding Based on Retention Performance Data Criterion: Meets retention target and at or above public peers.

20. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 19 Impact on Campuses University Retention Performance Above/Below Target Above/Below Peers Qualify for Performance Factor UNC-CH95.7%-0.8AboveNo NCSU90.9%0.4AboveYes ASU86.4%0.4AboveYes UNCW84.7%-1.3AboveNo UNCA81.9%1.9BelowNo ECU78.8%-0.2AboveNo UNCC77.9%-0.1AboveNo WSSU77.8%6.8AboveYes UNCSA77.4%1.4Above (All)Yes NCA&T77.1%5.1AboveYes NCCU77.0%1AboveYes UNCG76.6%0BelowNo ECSU76.3%0.3AboveYes WCU76.2%7.2BelowNo FSU73.6%-0.4AboveNo UNCP67.5%-3.3BelowNo

21. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 20 Funding Based on Efficiency Performance Data Criterion: Efficiency performance must be at or above public peers.

22. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 21 Impact on Campuses University Efficiency Performance Peer Performance Above/Below Peers Qualify for Performance Factor UNC-CH24.723.2Above Yes UNCW24.121.9Above Yes WCU24.020.5Above Yes UNCC22.720.6Above Yes UNCA22.621.9Above Yes UNCG21.0 At Yes NCSU20.623.6Below No ASU19.921.1Below No ECU19.919.6Above Yes WSSU19.118.4Above Yes FSU16.518.3Below No UNCP16.319.7Below No ECSU15.516.4Below No NCCU15.521.5Below No NCA&T12.618.0Below No

23. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 22 Summary of Impact University Enrollment Expansion (Freshman) Retention Performance Factor Efficiency Performance Factor Disadvantaged Student Population Diseconomies of Scale Factor ASUNormalYesNo(NA * )(NA) ECUNormalNoYes(NA) ECSUNormalYesNoYes FSUNormalNo Yes(NA) NCA&TNormalYesNoYes(NA) NCCUNormalYesNoYes(NA) NCSUNormalYesNo(NA) UNCANormalNoYes(NA)Yes UNC-CHNormalNoYes(NA) UNCCNormalNoYes(NA) UNCGRestrictedNoYes(NA) UNCPNoneNo Yes(NA) UNCWNormalNoYes(NA) UNCSANormalYes(NA) WCURestrictedNoYes(NA) WSSU NormalYes (NA) * NA = not applicable.

24. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 23 Performance Model Discussion, Issues, and Questions Next Steps Discussion, Issues, and Questions Next Steps

25. The University of North Carolina General Administration UNC-GA Academic Planning/ARM-wmd/11-04-2010 24