“as long as we are balancing our - purdue university · 2020-02-13 · “as long as we are...

“As long as we are balancing our operating budget, growing our faculty, investing in necessary capital projects, increasing staff compensation competitively, all without tapping our cash reserves, why would we raise tuition?”

JANUARY 2018 ANNUAL OPEN LETTER TO THE PEOPLE OF PURDUE

GROWING OUR FACULTY

2,228 2,259 2,253 2,230 2,199 2,207 2,225 2,325 2,404 2,473 2,460 2,510

0

500

1,000

1,500

2,000

2,500

3,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Excludes Postdocs & Extension Educators. Includes Continuing & Limited Term Lecturers. Uses FTE method.

FACULTY GROWTH OUTPACED STUDENT ENROLLMENT GROWTHSt

uden

ts p

er fa

culty

Excludes Postdocs and Research Faculty. Undergrads only.

13.62 13.08 12.48

0

2

4

6

8

10

12

14

16

2008-12 Median Fall 2013 2014-18 Median

INVESTING IN NECESSARY CAPITAL PROJECTS

Innovation District

BechtelInnovation Design Center

Engineering Renovations

Wilmeth Active Learning CenterAmerican Railway

Flex Lab

Controlled Environment Phenotyping

• Land O'Lakes Center for Experiential Learning• Hobart & Russell Creighton Hall of Animal Sciences• Purina Pavilion

STEM Teaching Lab Facility

ABE

INVESTING IN NECESSARY CAPITAL PROJECTSREPAIRS & RESTORATION (R&R) – PROJECTS UNDER $2M

Since 2013, investments in the upkeep & preventative maintenance of our buildings has increased 16%.

$36

$48$56

0

10

20

30

40

50

60

2008 2013 2019

Millio

ns

Projected

Up 56%

RECENT MAJOR FUNDING INVESTMENTS

$44 MillionFaculty Startup Investments for New Hires FY16-19

$35 MillionNew VetMed HospitalFY18

$81 MillionPurdue Moves InitiativesFY16-19

$27 MillionVarious student Initiatives (eg.Study Abroad, Advising etc. FY16-19

$76 MillionAcademic, research & infrastructure investments

Recurring Annually

INCREASING STAFF COMPENSATION COMPETITIVELY

• Dental Insurance – Added 2016• Autism Insurance – Added 2016

New Benefits

Pay Increases• 3.5% Merit Pay – 2016• 2.5% Merit Pay – 2017• 2.5% Merit Pay – 2018 • 2.5% Merit Pay – 2019

• Winter Recess – 2015, 2016, 2017, 2018

One-time Benefits

INCREASING STAFF COMPENSATION COMPETITIVELY

• Dental Insurance – Added 2016• Autism Insurance – Added 2016

New Benefits

Pay Increases• 3.5% Merit Pay – 2016• 2.5% Merit Pay – 2017• 2.5% Merit Pay – 2018 • 2.5% Merit Pay – 2019• 2.5% Merit Pay – 2020 New!

Total: 13.5% in 5 years

• Winter Recess – 2015, 2016, 2017, 2018• 2019 Winter Recess –New!• $500 Appreciation Award – 2019 New!

One-time Benefits

• 6 graduating classes will earn degrees without ever experiencing a tuition increase.

• Indiana residents continue to pay less than $10,000 per year in tuition.

• The last time a tuition increase was announced was when today’s freshmen were in elementary school.

ANNOUNCING YEAR EIGHT WITH NO TUITION INCREASES

STUDENT SAVINGSIf Purdue had raised tuition & fees at the average rate of other schools from 2013-18:

Tuition would be: ≈ Savings over 4 years*Indiana Students $1,400 or 14% higher $5,600 saved

Non-Hoosier U.S. Students $6,524 or 23% higher $27,000 saved

*Excludes Purdue in average, 4-year savings assumes all-rates held constant 4 years

vs. 4-year public universities

vs. Big Ten

AFFORDABILITY RECORDS & TRENDS

$3,631 $3,916

$4,281 $4,396 $4,348 $4,632

$5,092 $5,408 $5,451

$5,047 $4,555

$4,166 $3,988 $3,881 $3,657

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

AVERAGE ANNUAL STUDENT BORROWING PER UNDERGRADUATENOMINAL $

DEFAULT RATE: 3-YEARS AFTER EXPECTED GRADUATION YEAR

5.3% 5.1%

3.4%2.8% 2.5% 2.6%2.5%

1.6%1.0% 0.8%

6.4%5.9%

3.9%3.0%

3.6% 3.9%

0%1%2%3%4%5%6%7%

2010 2011 2012 2013 2014 2015

All Purdue WL Borrowers Purdue Borrowers who Graduated IU (All Borrowers)

QUALITYCOST =VALUE

Higher Education at the Highest Proven Value