2. HIGHER EDUCATION AS AN INVESTMENT

3. 3 Private Returns Higher education provides considerable value to: –the economies where educated individuals work/live –society in general –individual earnings are strongly related to educational attainment –average annual earnings of individuals with a bachelor’s degree are more than 75% higher than earnings of a high school graduate –earning differential is increasing over time Source: Productivity and Prosperity Project, Arizona State University, W.P. Carey School Business. 2005. The Value of Higher Education: Individual and Societal Benefits. 3

4. Societal Returns Greater educational attainment results in enhanced worker productivity, which translates into higher output and incomes Regions with higher proportions of college graduates include lower crime rates, greater and more informed civic participation, and improved performance across a host of socioeconomic measures Source: Productivity and Prosperity Project, Arizona State University, W.P. Carey School Business. 2005. The Value of Higher Education: Individual and Societal Benefits. 4

5. Mean Annual Earnings by Age and Educational Attainment in the U.S. Age Group Educational Attainment H.S. Graduate and GED Some College Associate’sBachelor’sMaster’sProfessionalDoctoral 25-34 $25,922$29,719$32,453$44,067$48,034$75,454$63,370 35-44 $31,303$37,923$40,353$58,551$70,288$123,190$98,133 45-54 $33,545$40,254$42,944$66,686$81,659$136,657$117,965 55-64 $30,224$39,215$40,811$56,243$73,498$135,713$92,502 65+ $20,981$26,251$27,373$39,749$51,636$75,360$71,282 Source: U.S. Department of Commerce, Census Bureau, Income in 2005 by Educational Attainment: 2006 5

6. Mean Annual Earnings by Age and Educational Attainment in Arizona EDUCATIONAL ATTAINMENT AGE GROUP 25-2930-3435-3940-4445-4950-5455-59 Postgraduate $56,331$69,010$75,577$71,611$72,251$73,088 University Graduate $38,509$46,714$56,968$60,790$57,499$55,693$59,320 Some College $28,813$32,678$38,359$40,276$40,222$41,931$41,919 High School Graduate $26,599$27,904$31,417$32,587$33,672$34,401$34,678 Some High School $23,313$24,898$25,610$26,387$29,218$27,289$27,017 Source: U.S. Department of Commerce, Census Bureau, 2000 Census Public Use Micro Data Sample 6

7. The Array of Higher Education Benefits Source: Institute for Higher Education Policy. 1998. Reaping the Benefits, Defining the Public and Private Value of Going to College. Washington, D.C.: Institute for Higher Education Policy PUBLICPRIVATE Increased Tax RevenueHigher-Salaries and Benefits Greater ProductivityEmployment ECONOMIC Increased ConsumptionHigher Savings Levels Increased Workforce FlexibilityImproved Working Conditions Decreased Reliance on Government Financial Support Personal/Professional Mobility Reduced Crime RateImproved Health/Life Expectancy Increased Charitable Giving/Community Service Improved Quality of Life for Offspring SOCIAL Increase Quality of LifeBetter Consumer Decision Making Social CohesionIncreased Personal Status Improved Ability to Adapt to and Use Technology More Hobbies, Leisure Activities 7

8. ARIZONA’S DEMOGRAPHIC GROWTH

9. Population Growth Year State of ArizonaMaricopa County Population Percent Increase Population Percent Increase 20005,130,6323,096,692 20015,295,9293.1%3,195,8933.1% 20025,438,1592.6%3,293,4413% 20035,577,7842.5%3,388,7112.8% 20045,739,8792.8%3,498,5873.1% 20055,939,2923.4%3,635,5283.8% 20066,166,3183.7%3,768,1233.5% Source: United States Census Bureau 9

10. Enrollment Projection Model Arizona’s State Universities Projected Growth, 2000-2020 Total Students % Increase Scenario I: Substantial Change 167,14956.8% Scenario II: Most Likely 156,75447.8% Scenario III: Continuation of Current Trend 147,41139.7% Governor’s Task Force on Higher Education, 2000 Total Enrollment in Fall 2006 is 120,645 10

11. Projected Increases in ASU Enrollment Institutional Analysis 11 Fall 2007 = 64,394

12. Performance

13. First-Year Persistence Rates First-Time, Full-Time Freshmen 1985-2005 Source: ASU’s Institutional Analysis 13

14. Six-Year Graduation Rates First-Time, Full-Time Freshmen 1984-2000 Source: ASU’s Institutional Analysis 14

15. Five-Year Institutional Graduation Rates at Public and Private Four-Year Institutions 1986 - 2006 Source: ACT Institutional Data File % 15

16. Investment

17. ASU Fund Source – 2003 (in millions) Total = $846 Million 17

18. ASU Fund Source – 2004 (in millions) Total = $930 Million 18

19. ASU Fund Source – 2005 (in millions) Total = $1.044 Billion 19

20. ASU Fund Source – 2006 (in millions) Total = $1.172 Billion 20

21. ASU Fund Source – 2007 (unaudited) (in millions) Total = $1.358 Billion 21

22. ASU Fund Sources FY03-07 (in millions) 22 (unaudited)

23. General Fund as a Percentage of ASU’s Total Fund Sources 23 (unaudited)

24. Percentage of Total General Fund Invested in Arizona’s Universities Source: Joint Legislative Budget Committee – General Fund Operating Spending, Fiscal Years 1979-2008 24

25. Public Pac-10 Tuition Comparison 25 ASU U of A CalUCLA OregonOSUWashington WSU 20002,259 4,0473,6783,8103,5613,6393,530 20012,344 4,0473,6833,8193,6543,7613,658 20022,486 4,0914,2304,0713,9873,9843,898 20032,585 3,8293,7024,8244,3714,6364,520 20043,593 5,2505,2985,0794,9444,9684,836 20054,064 5,9566,0285,6705,3195,2865,154 20064,4044,4876,5126,5045,8055,4425,6105,506 20074,6864,7546,6547,1425,9705,6435,9855,887 20084,9695,0377,1647,7106,1745,9106,3856,290

26. FTE Student Enrollment Notes: Actual enrollments are per Fall Semester 21st Day, as listed on ABOR Enrollment History report. 2007-08 UA Main enrollment is preliminary. UA Main FTE Resident Student Enrollment includes Nursing, Pharmacy and Health Related Profession students, but not Medical students. 26

27. Cumulative Change in FTE Student Enrollment Notes: Actual enrollments are per Fall Semester 21st Day, as listed on ABOR Enrollment History report. 2007-08 UA Main enrollment is preliminary. UA Main FTE Resident Student Enrollment includes Nursing, Pharmacy and Health Related Profession students, but not Medical students. 27

28. General Fund per FTE Student Notes: Actual enrollments are per Fall Semester 21st Day, as listed on ABOR Enrollment History report. 2007-08 UA Main enrollment is preliminary. UA Main FTE Resident Student Enrollment includes Nursing, Pharmacy and Health Related Profession students, but not Medical students. General Fund amounts listed include reductions for mid-year cuts made in FY02 & FY03, otherwise initial GF appropriations, not including TRIF. FY07 amounts shown net of one-time appropriations. FY08 GF amounts shown net of Phoenix Biomedical campus one-time funding. Funding for the Research Infrastructure Lease-Purchase Payments is included. FY06, FY07 & FY08 UA Main General Fund amounts net of AZ Cooperative Extension ($10,184,100 for FY06, $12,069,300 for FY07, and $11,728,500 for FY08 as per JLBC Appropriations Report.) 28

29. Cumulative Change in General Fund per FTE Student 29 Notes: Actual enrollments are per Fall Semester 21st Day, as listed on ABOR Enrollment History report. 2007-08 UA Main enrollment is preliminary. UA Main FTE Resident Student Enrollment includes Nursing, Pharmacy and Health Related Profession students, but not Medical students. General Fund amounts listed include reductions for mid-year cuts made in FY02 & FY03, otherwise initial GF appropriations, not including TRIF. FY07 amounts shown net of one-time appropriations. FY08 GF amounts shown net of Phoenix Biomedical campus one-time funding. Funding for the Research Infrastructure Lease-Purchase Payments is included. FY06, FY07 & FY08 UA Main General Fund amounts net of AZ Cooperative Extension ($10,184,100 for FY06, $12,069,300 for FY07, and $11,728,500 for FY08 as per JLBC Appropriations Report.)