1. Oklahoma State University Overview Presentation by David J. Schmidly System CEO & President Spring General Faculty Meeting April 19, 2005 UPDATE ON CRUCIAL ISSUES OKLAHOMA STATE UNIVERSITY

2. Oklahoma State University

3. Oklahoma State University System One University with Multiple Locations and Missions Oklahoma State University System One University with Multiple Locations and Missions OSU Campus Cooperative Extension District OfficesAgricultural Experiment Stations Video Network Sites $166M state appropriations$520M total budget Leverage $15 to $1 $2.5B impact and 9,500 jobs  77 County Extension Offices  16 Experiment Stations  Center for Health Sciences & Center for Veterinary Health Sciences  Oklahoma Technology & Research Park  Technical Branches in OKC and Okmulgee with 77 associate & 3 bachelor degree options  2+2 Programs in Tulsa with 28 undergraduate & 52 graduate degree options  Comprehensive Institution in Stillwater with 170 undergraduate & 153 graduate degree options  Fire Service Training – 900 Communities  The Center for Local Government Technology – all counties

4. Oklahoma State University The Oklahoma Land-Grant Triangle A Rural/Urban Technology Enterprise Region OSU – Tulsa 2+2 with Tulsa Comm. College Applied Materials Research Center Partnership with Langston OSU – Center for Health Sciences Rural Health & Telemedicine Primary Care SH 177 I-35 Cimarron Turnpike OSU – Oklahoma City Technology degrees First Responder Training Health Care Training I-44 Okmulgee OSU – Okmulgee 4 year technology degrees Tribal college & health center Hwy 51 OSU Flagship Headquarters BS, MS, Ph.D, Degrees Center for Vet. Health Sci. Division Ag. Sci. & Nat. Res. Okla. Research & Tech. Park Northern Okla. College Partnership Stillwater Ponca City Oklahoma City Tulsa Lake Carl Blackwell Karsten Creek Ideas and concepts developed within the Land- Grant Triangle will be disseminated by extension and outreach programs throughout the state.

5. Oklahoma State University Oklahoma’s County-by-County ‘Electoral College’ Oklahoma’s County-by-County ‘Electoral College’ The tally Counties (77): OSU: 68, OU 9

6. Oklahoma State University Board of Regents Academic Deans Department & School Heads Faculty ****** Colleges Agri. Sciences & Natural Resources Arts & Sciences Spears School of Business Education Eng., Architecture & Technology Human Environmental Sciences Graduate Library Center for Veterinary Health Sciences Osteopathic Medicine President OSU-Tulsa Gary Trennepohl President & Provost, OSU-Okmulgee Robert Klabenes Vice President of Agri. Pgms. & Dean, CASNR Robert Whitson President, Health Affairs & Dean, Osteopathic Med. John Fernandes President, Center for Innovation & Econ. Dev. Joseph Alexander Chief Executive Officer, OSU System, & President OSU David J. Schmidly Provost & Senior Vice President Marlene Strathe Vice President, Student Affairs Lee Bird Vice President, Research & Technology Transfer Stephen McKeever Vice President, Institutional Diversity Cornell Thomas Chief of Staff Al Goodbary President & Provost, OSU-Oklahoma City Jerry Carroll Vice President, Administration & Finance David Bosserman Vice President, Enrollment Mgmt. & Marketing Michael Heintze CIO & Dir Distance Learning, Darlene Hightower Executive Director, Alumni Association Jerry Gill Director, Athletics Harry Birdwell Assistant Athletic Director for Compliance Rick Allen Dir, Comm. Services Gary Shutt ---------- Strategic & Policy Issues ______Operational Issues

7. Oklahoma State University http://system.okstate.edu/viewplans.htm

8. Oklahoma State University Access Affordability Excellence OSU Alumni Association OSU Foundation OSU Foundation Student Success CIED Mission Vision Values Priorities Mission Vision Values Priorities Alumni Student Body Faculty Staff Alumni Student Body Faculty Staff Academic Excellence Student Success and Development Engagement and Outreach Diversity Human Resources Enhance & Leverage Resources Image/Pride/Recognition OSU Parents Association Seven Strategic Goals Strategic Alignment for the Plan Athletics Center for Innovation & Economic Development, Inc. Tuition Scholarships Rankings Research Facilities Enrollment Management Gateway Program with NOC Graduation & Retention Learning Outcomes Young Scholars Program

9. Oklahoma State University We Must Manage Our Enrollment Improve the freshman class profile—new admissions standards. Expand recruitment efforts inside and outside Oklahoma. Improve merit scholarship program. Place more emphasis on transfer students. Develop partnerships with two-year institutions. Achieve 80/20 mix of undergraduate to graduate students. Address the problem of declining international student enrollment. Develop an enrollment management plan and use it to guide campus decision making. The key is maintaining an appropriate balance between the size, quality, and composition of our student body.

10. Oklahoma State University NOC/OSU Gateway Program OSU Freshman Applicants (Not Admitted) OSU Students Needing Remediation Admitted as Transfer Students (24 hrs./2.25 GPA) Hall of Fame Ave. Cowboy Mall OSU Students Taking Gen. Ed. Courses

11. Oklahoma State University (85%) (57%) (87%) (60%) (80%) (57%) (86%) (56%) (89%) (57%) (89%) (59%) (88%) (57%) (88%) (56%) (87%) (57%) (89%) (58%) (92%) (59%) (91%) (62%) (92%) (63%) (90%) (59%) (89%) (56%) First-Time Freshmen Headcount Enrollment, ACT Scores, and Acceptance Rates Top percentage is the acceptance rate, the percentage below is the yield rate (% of accepted students who enrolled). *1990 – 1993 New Freshmen counts include non-degree-seeking students. **Starting with 2004, Concurrent High School Students have been excluded. Source of Data: 1990 – 2004 Oklahoma State University Fall Student Profiles

12. Oklahoma State University We Must Strengthen Our Faculty The key component is to strengthen the faculty. At OSU we must: Restore the faculty – we lost 100 positions from 2001-03. Reward the faculty – our salaries are at the bottom of our peer group. Grow the faculty – our faculty is not large enough to achieve either ranking. We also must provide adequate facilities and space for our faculty. We must strengthen our graduate programs and stipends to attract top students.

13. Oklahoma State University Full-Time Tenure/Tenure-Track Faculty Headcount Compared to Enrollment Growth Fall 1995 through Fall 2003 From Fall 1995 to Fall 2003, student enrollment has increased more than 23%. In the same time period, full-time tenured & tenure-track faculty has increased less than 3%. Faculty Headcount Enrollment

14. Oklahoma State University Addressing Faculty Salary Issues Addressing Salary Issues  Restore Faculty  25 positions per year for 4 years (FY05 - FY08)  $10M total  Reward Faculty  $1.2 - $1.8M new funding needed each year (FY06 - FY15)  $13M total  Grow Faculty  10 new positions per year (FY06 - FY15)  $1.0 - $2.0M new funding needed each year  $3M annual start-up funding  $15.2M total

15. Oklahoma State University What it will cost…

16. Oklahoma State University To attract the best and brightest graduate student talent to OSU by improving graduate student stipend and tuition scholarship packages to peer- competitive levels FY 2006FY 2007FY 2008FY 2009 $950,000$600,000$500,000

17. Oklahoma State University We Must Provide Adequate Facilities and Space for Our Faculty Capital Projects Amount Source of Funds New interdisciplinary science building $76,000,000Capital Bonds (CB) 2 Renovate South Murray Hall $16,800,000CB 2 Construct new classroom building and undergraduate $9,000,000CB 2 +Private 3 study center Renovate existing business school building $10,000,000Private 3 Construct new business school building $25,000,000Private 3 Renovate Library Plaza $650,000Private 1 Construct new architecture building $19,460,000Foundation Grant 3 Construct ATRC Building at OSU-Tulsa $45,000,000Tulsa 1 +CB Multimodal Transportation Center & Parking Garage $15,000,000Federal Appropriations 1 Renovate Veterinary Medicine Health Science Centers $13,000,000CB 2 Animal Diagnostic Lab Construct building for Hospitality Mgmt. Program $10,000,000Private 3 1 = Funding pledged 2 = $500M capital bond before Oklahoma Legislature this session 3 = potential donor identified but no commitment secured $239,910,000

18. Oklahoma State University We Must Raise Funds For Academic Programs Priorities Endow Colleges and Departments Faculty Chairs Faculty Development Student Scholarships and Fellowships Student Leadership and Wellness Academic Facilities Library Campus Beautification Marketing and Promotions

19. Oklahoma State University Largest gift pledge in history of institution - $70M Largest corporate donation in history - $7.5M Other large corporate gifts Since January 2003  Devon Corporation - $2.3M  SBC Corporation - $3.00M  Chesapeake - $0.50M First endowed college - donor with state match Fund-Raising Highlights

20. Oklahoma State University We Must Build Our Academic Reputation First and foremost, the quality of faculty and students drives academic reputation. However, we also must “tell the world” what these faculty and students are doing. Oklahomans need a better understanding of OSU, and we need to tell “our story” in a more profound way. This must be done with a commitment to marketing and communications.

21. Oklahoma State University

22. OSU SCHOLAR DEVELOPMENT AND RECOGNITION A Decade of Undergraduate Success Attracted national recognition for OSU as an innovative and successful approach to motivating and rewarding top scholars. Scholarships Won Rhodes 1Marshall 2 Truman 13 Goldwater 12 Udall 2Rotary Ambassadorial 5 Pickering Foreign Service 1USA Today All-American First/Second Team 4 Gates 2(in the last 2 years) Other Programming Wentz Research Projects, $4000 per year for top undergraduates to perform mentor-directed research. Wentz Leadership Scholarships, $2500 awards for OSU’s best scholar/leaders. Summer Study in England (3 successive programs in Oxford/Cambridge for 15 top students each year).

23. Oklahoma State University What We Must Do to Build Academic Resources The University’s central fund-raising capability has been strengthened to focus on academic priorities. We must convince the Oklahoma legislature to invest more in its comprehensive institutions so that we can strengthen the faculty. We must convince the Oklahoma congressional delegation to secure directed federal appropriations to enhance our research capacity in areas that contribute to economic development.

24. Oklahoma State University

25. Oklahoma State University - General University State Appropriations and Tuition as Proportions to the Total Budget

26. Oklahoma State University Oklahoma State University FY 2006 Budget Needs

27. Oklahoma State University Oklahoma’s Fed R&D funding capture rate $55 per capita National Fed R&D funding capture rate $269 per capita Leave $738,000,000 in federally-sponsored R&D funding on the table each year Total economic impact of $1,347,000,000 Directly creates 26,495 jobs and indirectly an additional 9,020. As a State - Oklahoma Has a Weak Research Profile

28. Oklahoma State University Oklahoma State University Research Model University Research Produce Knowledge Prestige/Reputation Income (Univ.) Educational Value Students (UG/G) Faculty I.P. & Technology Income (Univ./Faculty) Economic Development (Local, Region, State) Become a More Research Intensive Institution Build off our land-grant legacy Targeted research strengths Basic, applied & strategic research Focus on student outcomes & research education Teaching Service Focus on interdisciplinary approaches Focus on research income and technology transfer Outcomes oriented Highly entrepreneurial

29. Oklahoma State University Economic Impact Analysis of “High-Tech” Companies in the Stillwater Area Which Nucleated Out of OSU 35 companies 642 employees average annual salary of $40,000 = $25.7M annual payroll Annual Impact Number of primary and induced jobs = 1,179 Total personal income for both primary and induced jobs = $35.7M Local tax revenues = $742,000 annually State tax revenues = $2.35M annually Five-Year Impact (assuming no job growth and constant payroll over the period) Total personal income over period (both primary and induced jobs) = $178.7M Local tax revenues = $3.7M State tax revenues = $11.8M

30. Oklahoma State University Directed Federal Appropriations (Federal Initiative Orange Book) I. Development of Agenda Broad system-wide input (System CEO, Presidents, Deans) II.Guidelines Project must relate to economic development All awards, grants, and contracts will be managed by Education, Research and Economic Development Foundation (EREDF) III. Successes FY04 Total = $17.506M FY05 Total = $17.589M Grand total = $35.095M

31. Oklahoma State University “It is essential to recognize that the real challenge (to higher education) lies in transforming the culture of the institution. Financial or political difficulties can be overcome if the organization can let go of rigid habits of thought, organization, and practices that are incapable of responding rapidly or radically enough.” (Dr. James Duderstadt, President Emeritus The University of Michigan)