1. Academic Leadership Retreat August 28, 2013 1

2. Journey to the Top25 2

3. Students  We are a student-focused university  How we treat our students is important  One Stop 3

4. June Board of Trustees 4  6% Tuition Increase  5% Raise Pool – 3 rd year in a row  Fee Increases  Transfer streets to university

5. Governor’s Review of Higher Education  Access  Quality  Preparing students for careers 5

6. Branding & Communications 6

7.  Branding contributes to success  Consistency is essential  Good stories reinforce the brand and everyone benefits  Buy-in is critical 7

8.  We are strategic communicators -Branding provides framework -Work with campus partners -Use data to make decisions -Branding is a continual process Branding & Communications 8

10. Development $92,402,645 raised 32,540 donors 10

11. Development Priorities Support the Journey to the Top 25 11  Chairs, professorships, and faculty awards  Scholarships and Fellowships  College Priorities  Deans, Department Heads vital to fundraising

12. Athletics  Not most important, but most visible  Clean, successful program is critical  Most top public universities succeed in both  Working toward better financial model 12

13. Athletics 13  Suspended $6 million/year of support -- no impact on current commitments  Athletics funds facilities & utilities – budget reserve inadequate  80% of student athletes pay out-of-state tuition  UTM and UTC each invest ~$5 million annually  38 of Top 50 publics transfer money to athletics Virginia$13.1 million Georgia Tech$18 million Rutgers$27 million Texas A&M$5.2 million Alabama$4.5 million

14. Athletics  Academic success – Record performance – student athletes 3.05+ GPA – 58% of student athletes 3.0 GPA or higher – 115 student athletes on Dean’s List – Herman Lathers – Chancellor’s Citation for Extraordinary Community Service 14

15. New Tuition Model 15  Take 15, graduate in 4  Applies to new undergraduates in Fall 2013  Full-time students pay for 15 hours  No additional cost for 15+ hours  Expectation – limit tuition increases to 3% annually for three years for Class of 2017

16. Average Net Priceof Tuition $(5,619.00) 16 $2,945.00 $3,700.00 $3,752.00 $(8,000.00) $(6,000.00) $(4,000.00) $(2,000.00) $- ­‐ $2,000.00 $4,000.00 $6,000.00 BoIom QuarKle ($0 -­‐ $46,515) Second QuarKle ($46,516 -­‐ $95,444) Third QuarKle ($95,445 -­‐ $151,369 ) Fourth QuarKle ($151,370 -­‐ $1,506,000)

17. In-State Tuition at Four-Year Schools FY 2012-2013 A comparison of undergraduate in-­‐state maintenance and mandatory fees between four-­‐ year higher educaKon insKtuKons in Tennessee. InsKtuKon Mandatory UG Maint. FeesFees* Total $ from UTK InsKtuKon TBR schools based on 15 credit hours each semester Source – Tennessee Higher EducaKon Commission 17 Mandatory Fees Middle Tennessee1,594 UT ChaIanooga1,490 UT Knoxville1,290 University of Memphis1,256 AusKn Peay1,224 Tennessee Tech1,200 UT MarKn1,103 East Tennessee1,075 Tennessee State930 Sorted by Mandatory Fees Sorted by Total Fees *Higher than UT Knoxville UT Knoxville1,2907,8029,092 University of Memphis1,2566,9788,234858 Middle Tennessee*1,5945,8987,4921,600 UT ChaIanooga*1,4905,7227,2121,880 UT MarKn1,1035,9787,0812,011 East Tennessee1,0755,9226,9972,095 Tennessee Tech1,2005,7486,9482,144 AusKn Peay1,2245,6946,9182,174 Tennessee State9305,7726,7022,390

18. Student Debt Average UT student debt (2012-13): UT students with NO debt: Average expenses: Less than $21,000 51%51% Less than $26,000/year Most scholarships expire:4 years 18

19. WeRemain a Great Value  Great value  Future of tuition increases  Financial burden on our students  Net tuition is low 19

20. 20 Journey to the Top 25

21. UTK Position MetricsUTK June 2010 UTK June 2013 UTK Change 2010-2013 ACT Equivalent29/24 No change Retention Rate84%85%+1 pt 6-Year Graduation Rate60%66%+6 pt Ph.D. Degrees277319+42 Master’s and Professional Degrees1,8451835- 10 Federal Research Expenditures$70 M$127 M+$57 M Total Research Expenditures$165 M$230 M+$65 M Tenure-Line Salary Range$66 to $107 K $73 to $121 K +$7 to $14 K Undergraduate Student/Tenure-Line Faculty 20Waiting on data Faculty Awards10Waiting on data Teaching and Support Expenditures/ Student $16,100$17,975+ $1,875 Endowment/ Student$14,380$15,803+ $1,423

22. Progress 22  1 stayed same – Met our goal  8 Metrics improved  1 decreased  2 Metrics TBD

23. 72 74 76 78 2002200320042005200620072008200920102011 Freshman Retention Rate 1 st to 2 nd Year Retention Rate; 2002-2011 Freshmen Cohort Years 23 77.8% 78% 79.6% 81.7% 84.0% 83.6% 83.8% 86.2% 84.5% 84.6% 80 82 84 86 88

24. Freshman Retention Rate  Even great players have a coach  We want all of our students to succeed and complete their degrees 24

25. Graduation Rates Four, Five and Six Year Graduation Rates Fall Cohorts 1999 - 2008 FOUR-­ ‐YEAR FIVE-­ ‐YEAR SIX-­ ‐YEAR Preliminary 28.7% 30.6% 29.4% 30.0% 31.2% 30.6% 33.7% 35.7% 36.7% 39.0% 40.0% 23.4% 24.2% 23.7% 24.7% 24.3% 25.2% 24.8% 25.8% 25.3% 5.1% 5.3% 4.7% 5.1% 4.7% 4.6% 6.0% 10% 0% 20% 30% 40% 50% 60% 70% 80% 19992000200120022003200420052006200720082009 Fall Cohort Years 57.2% 63.2% 66.1% 68.0% 60.6%60.5% 57.8% 59.8% 60.1% 25

26. Graduates 2011-2012 Academic Year 4539 3911 2724 1673 2146 1696 1514 1312 959 1116 729 39 2205 954 1370 2047 826 462 556 320 540 132 0 1000 2000 3000 4000 5000 6000 7000 8000 Bachelor'sGraduate/Professional 6,744 4,865 4,094 3,720 3,001 2,158 2,070 1,499 1,880 1,248 768 26

27. Graduate Degrees 1845 1807 1726 1835 277 258 270 319 0 500 1000 1500 2000 2500 2010201120122013 PhD Masters and Professional 27

28. Research Metrics 28 AREAS OF FOCUS INDICATORS 2010 BASELINE 2013 ASSESSMENT THREE-­ ‐YEAR PROGRESS CHANGE IN GAP TO TOP 25 TARGET 2010 VS. 2013 RESEARCH FEDERAL RESEARCH EXPENDITURES $70 M$127 M+57 M FAVORABLE TOTAL RESEARCH EXPENDITURES $165 M$230 M+65M FAVORABLE

29. Research/Scholarship  Governor’s Chairs  National Academy of Science  National Academy of Engineering  Bredesen Center  Center for the Humanities  Anderson Center for Entrepreneurship 29

30. Faculty and Staff Metrics 30 AREAS OF FOCUS INDICATORS 2010 BASELINE 2013 ASSESSMENT THREE-­‐ YEAR PROGRESS CHANGE IN GAP TO TOP 25 TARGET 2010 VS. 2012 FACULTY AVG. TENURE-­ ‐LINE SALARY RANGE $66 to $107K $73 to $121K +$7 to$14KFavorable UNDERGRADUATE STUDENTS/TENURE- ­‐ LINE FACULTY 20 WaiKng on data

31. Faculty $73 $90 $85 $80 $75 $70 $65 $60 $55 $50 $95 Average Assistant Professor Salary; Fall 2012 $100 31 AspiraKonTargetPeer

32. Faculty Average Associate Professor Salary, Fall 2012 $120 $86 $90 $80 $70 $60 $50 $100 $110 AspiraKonTargetPeer UTK up 1 position since 2011 32

33. Faculty Average Full Professor Salary, Fall 2012 $190 $121 $130 $110 $90 $70 $50 $150 $170 AspiraKonTargetPeer UTK up 1 position since 2011 33

34. Faculty and Staff  Raises since 2011 – 16% compounded (5% per year)  $52M in salaries since 2011  Permanent funding stays within college 34

35. Faculty and Staff Accomplishments  Endowed 37 chairs, professorships, and faculty awards  Implemented career paths for lecturers  Completed a benchmarking compensation study  Performance-based merit pay 35

36. Top 25 Infrastructure Progress Projects underway Student Union Strong Hall Residence Hall Landscape Master Plan Recently completed  Natalie Haslam Music Center  John D. Tickle Engineering Building  Humanities and Social Sciences  Greve Hall  Brehm Animal Science and Food Science Buildings 36

37. Top 25 Investments  $10.4M invested in the past 3 years – Strategic Instructional Fund – Research – Relieve bottleneck courses – Faculty Hires – Development and Alumni – Advising – First Year and Transition Programs – Vice Chancellor for Diversity 37

38. 38 Looking Forward

39. Civility/Diversity/Citizenship  Core value  Everyone’s responsibilit y  Critical to achieving excellence  Vice Chancellor for Diversity 3030

40. Internationalization 4040

41. Productive Partnerships 41

42.  $6.9M formula phase-in  $7.4M appropriation improvements  $3.0M College of Engineering  $1.2M fringe benefit funding  $2.6M 1.5% salary increase (55%) $21.1M proposed funding  $24M steam plant  $6M deferred maintenance  $20 million ($5m/year x 4 years) for a successful NSF Super Computer Proposal FY 2013-14 Budget 42

43. Fixed costs, key iniKaKves, and strategic investments FY 2013-­‐14 Budget In millions 43 Salary plan$11.9 College of Engineering$ 3.0 Systems charge increase/ recalibraKon$ 1.9 Hires / promoKons / ladders$ 1.1 Faculty startup commitments$ 0.8 Contract escalaKons & new building costs$ 1.4 Scholarship commitments$ 4.7 Top 25/academic reinvestments$ 4.3 Benefits + Grad Health Insurance$ 1.6 Waivers / Summer / DE / Shares$ 6.0 FY 2012-13 Proposed Uses of Revenues

44. Finances 44  Why are budgets tight? – Tuition increases also cost us more money – Raises $52M – Construction/Renovation – Strategic Top 25 investments – Missed UG enrollment projection last year – Graduate Fellowships ($12M)

45. Plan Going Forward 45  Tuition primary revenue source  15-4 is being implemented  UG Enrollment goal=21,500, Fall 2014  Creative proposals to the state

46. Plan Going Forward 46  How can we be more confident in year-to- year funding?  Why is athletic funding model changing?

47. 47 Challenges UT Florida State Clemson Texas A&M UC- Davis % of classes <2033%34%52%52%19%33% % of classes of 50 or more 8%16%14%25% First-year retention 85%91% 92% Total students 27,01840,69520,76850,22732,354 Number of faculty1,4581.2681,0512,0341,596 Student/Faculty Ratio 1932202520

48. Challenges 48  Board of Trustees – What do faculty do? How much do they teach?  What is the role of higher education?  How can the cost of a degree be reduced? – Increase productivity? Cut costs?  Political challenges…

49. Future 49  We have set our vision  We have made significant progress  But I need your continuing advice, support, and help

50. 50 Questions / Comments