House Public Works CommitteeUSNH Orientation

January 29, 2019

2

University System of New HampshirePublic InstitutionCorporate Charter(RSA 187-A)

Board of Trustees29 TrusteesCommitteesChancellorAdministrative Board

“The university system shall be governed by a single board of trustees who shall be responsible for ensuring that its components, each having a unique character and educational mission, operate as a well coordinated system of public higher education” (RSA 187-A:2-a)

Legislature

USNH

PSU KSC GSC

UNH Foundation

Keene Endowment Association

UNH

3

Full-Time Equivalent Credit Enrollment Fall of Each FYAnd Trend of Incoming Freshmen Residency Mix

2017 2018UNH (all campuses) 15,473 15,669PSU 4,641 4,694KSC 4,160 3,758GSC 1,584 1,446Total USNH FTEs 25,858 25,567

NH Resident 13,240 12,940Nonresident 12,618 12,627Total USNH FTEs 25,858 25,567

1500

2000

2500

3000

3500

09 10 11 12 13 14 15 16 17 18

Incoming First-time Freshmen

Nonresident Resident

Fall

residential campuses

4

State Support for USNH NH Students

$0

$20

$40

$60

$80

$100

$120

$140

FY10 11 12 13 14 15 16 17 18 19

Mill

ions

Capital Appropriation Operating Appropriation

Capital appropriations as budgeted. Amounts displayed are divided equally between the two years of each biennium.

5

Budgeted State Support per NH StudentOperating and Capital

10-11

12-13

14-15

16-17

18-19

Est

$0

$2,000

$4,000

$6,000

$8,000

USNH CCSNH K-12

+16.5% +9.9%

Change 10-11 to 18-19:

−14.6%

by biennium

Appropriations data from chaptered legislation. Student data from campus Institutional Research (USNH), U.S. Department of Education, IPEDS (CCSNH), and NH Department of Education (K-12). USNH and CCSNH student reflects full-time equivalence based on credit hour activity; K-12 student reflects average daily membership.

FY16 student data used for FY17, FY18, FY19 for CCSNH and K-12; FY17 used for FY18, FY19 for USNH.

6

Average Net Price of AttendanceU.S. College Scorecard

Data from U.S. Department of Education, U.S. College Scorecard, retrieved 09/11/18. FY16 data, most recent available for comparability. Average undergraduate net price for first-time full-time freshmen receiving federal aid, after all grant/scholarship aid. For public schools this is the average net price for in-state students.

Average annual net price for NH undergrads after financial aid. Price includes tuition, mandatory fees, books and supplies, room and board, and other living expenses as calculated for financial aid.

MEDIAN

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USNH leads New England in timely degree completion.

USNH is consistently among the top 5 states in the U.S. for lowest student loan default.

Graduation rates from U.S. Department of Education, National Center for Education Statistics, IPEDS. 2015-16 data, most recent available for comparability. Default rates from U.S. Department of Education, National Student Loan Data System. 2015 data, most recent available.

ME

RI MA

VT CT NH

/ U

SNH

NH

Pri

vate

sPublic Institutions - Average by State

58%48%

61% 64% 64%69% 67%

4.2%

6.0%

6.3%

7.5%

8.7%

11.8%

NH / USNH

Northeast Public 4Yr

New England Public 4Yr

U.S. Public 4Yr

NH Private 4Yr

U.S. All Sectors

6-Year Bachelor’s Graduation RatesAverage by State/Sector

Student Outcomes

3-Year Student Loan Default RatesAverage by State/U.S./Sector

8

NH

/ U

SNH

RI ME

PA MA

VT NJ

NY

CT NH

Priv

ate

4Yr

$0

$3,000

$6,000

Public 4-Year Institutions

Administrative Efficiency

Data from U.S. Department of Education, National Center for Education Statistics, IPEDS. Three-year average: FY15 final data and FY16, FY17 preliminary data. Administrative efficiency reflects Institutional Support functional expense category. All states include central/system office expense as applicable. Student reflects reported 12-month full-time equivalent enrollment.

USNH is the most fiscally efficient public 4-year system in the Northeast and is more efficient than NH’s private institutions.

Institutional support per student FTE

New Hampshire’s Workforce Challenge

10

NH Unemployment by Level of Education

Data from U.S. Census Bureau, 2017 American Community Survey Public Use Microdata Sample

5.1% 5.5%

3.1%

1.7% 1.5%

Less than high school

diploma

High school diploma or

GED

Associate degree or

some college

Bachelor's degree

Advanced degree

Population age 25 to 65

Bachelor'sdegree

Advanceddegree

11

-10%

-20%-11%

-26%

-11%

-27%

-23%-23%

-15%

NORTHEAST REGION: 2012-2032HIGH SCHOOL GRADUATE PROJECTIONS

NORTHEAST -12.2% ≈ -80k

Source: Western Interstate Commission for Higher Education, Knocking at the College Door, Projections of High School Graduates Through 2032, http://knocking.wiche.edu.

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New England Enrollment4-Year College-Going High School Grads

39% 42% 46% 54% 57% 60%

0%

50%

100%

NH CT VT RI MA ME

Home State New England Other

NH

Data from U.S. Department of Education, National Center for Education Statistics, IPEDS, biennial data collection. Fall 2016 provisional data, most recent publicly available for comparability. Students graduating from high school within 12 months prior to fall enrollment. “Other” reflects high school grads coming from states outside of New England.

State Share by Residency

13

0%

25%

50%

75%

UT

WV LA FL AR

OK IN MI

KY AL

MS SC OH TX NC IA GA NE AZ

MT

ND CA WI

PA TN KS NM NV

WA VA SD MO NY

CO ID OR DE

AK

ME

MN

MA RI IL

WY VT NJ

MD HI

CT NH

U.S. Average 25.9%

NH61.1%

NH is the highest exporter state of high school grads enrolling in 4-year college in the U.S.

Data from U.S. Department of Education, National Center for Education Statistics, IPEDS, biennial data collection. Fall 2016 provisional data, most recent publicly available for comparability..

Percent of 4-year college-going, newly graduated high schoolstudents leaving their state of residence to attend college

14

4-Year College-Going NH High School GradsEnrolled in NH

Data from U.S. Department of Education, National Center for Education Statistics, IPEDS, biennial data collection. Fall 2016 provisional data, most recent publicly available for comparability.Students graduating from high school within 12 months prior to fall enrollment. Goal calculations based on fall 2014 final data.

38.946.9

0%10%20%30%40%50%60%70%80%90%

100%

161412100806040200989694Fall

Percent of 4-year college-goers enrolled in state

50%

38.9

40.4

41.0

44.7

42.4

42.945.1

45.0

42.2

44.7

44.6

46.9

161412100806040200989694

60%

40%

30%

50%

Current 4-year-college in-state enrollment of NH high school grads = 38.9%

A goal of 45% would mean keeping an additional 350 NH high school grads in state, beyond the ∼3,000 actually retained each year (goal of 50% ≈ additional 700)

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$30.1

$35.1

$12.5$14.0

$7.2 $7.6

$0

$20

$40

FY14 FY15 FY16 FY17 FY18 FY19

Published Tuition & Fees, Average by Sector

KNH Private 4Yr

USNH

CCSNH

Cost of NH Private Higher Ed is Outpacing Publics

Data from U.S. Department of Education, National Center for Education Statistics, IPEDS. Excludes UNH School of Law and Antioch University New England.Dollar values not adjusted for inflation; averages not weighted by enrollment.

16

$0

$50

$100

$150

FY09 10 11 12 13 14 15 16 17 18

Mill

ions

Institutional Aid All Other Aid

Holding Down Net Tuition

Financial aid funded from unrestricted institutional resources in FY18 was more than double (x 2.3) the amount awarded at the start of the decade.

Data from USNH Controller’s Office. Financial aid for all student levels.

17

Granite Guarantee

18

0%5%10%15%20% 0% 5% 10% 15% 20%

NH Industry ProportionNH Total Workforce and USNH NH Bachelor’s Grads

EducationHealth Care, Social Svc

RetailAccommodation, Food Svc

ManufacturingAdministrative, Waste Mgmt

Professional/Sci/Tech SvcFinance, InsurancePublic Admin, Gov'tOther - NonService

Other - ServiceWholesale

InformationArts, Entertainment

Construction

NH Workforce USNH Grads Industry

Workforce data from NH Employment Security, Economic and Labor Market Information Bureau. Employment data based on NH Employment Security wage records for USNH bachelor’s degree earners employed in NH within approximately one year of graduation.

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USNH Economic Impact = $2.4 Billion

USNH economic impact study conducted by Economic Modeling Specialists Int’l (Emsi), 2016. Reflects economic activity of FY 2015.

USNH annual impact on state economic income is equivalent to…• 3.4% of NH GSP• More than the combined impact of NH’s

Arts, Entertainment, & Recreation -and-Accommodations & Food Services sectors

For every $1.00 spent on higher education…• Students realize $2.80 return in lifetime

earnings differential• State gov’t realizes $5.70 return in added

revenues and public sector savings

ADDEDECONOMIC

INCOMEIN MILLIONS

$ 569.9117.2

11.0128.6

21.51,524.5

$ 2,372.8

IMPACT DRIVER

OperationsResearchBusiness Dev’l & AttractionStudent SpendingVisitor SpendingAlumni

History of State Capital Support for USNH

21

$0

$10

$20

$30

$40

$50

00-01 02-03 04-05 06-07 08-09 10-11 12-13 14-15 16-17 18-19

Mill

ions

USNH Biennial Capital Appropriation per State Budget

KEEP I & II

Twenty Years of State Capital Support for USNH

State capital appropriations for USNH from chaptered law.

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Significant State Capital Support Through Knowledge Economy Education Plan (KEEP NH)

• The State invested $209.5 million in USNH academic buildings over twelve years from 2002 through 2013 (six biennium) having enormous positive impact on USNH programs, capacity and accreditation.

• Investments were made in advance of current biennia in alignment with six year capital planning required by law.

• Planning in advance provides benefit in timing, contracting, leveraging scale across institutions, resource allocation, etc.

23

KEEP NH IExcerpt Chapter 202, Laws of 2001

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KEEP NH IIExcerpt Chapter 259, Laws of 2005

25

State Capital Support Totaled $16 million Over the Past Six Years

Chapter 195 Laws of 2013

Chapter 220 Laws of 2015

Chapter 228 Laws of 2017

USNH Capital Planning

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Board of Trustee Financial Oversight Structure

The Board of Trustees carries out its financial responsibilities and oversight primarily through the work of three standing committees which meet four times a year. Each Committee has a detailed work plan to guide their efforts for the year.

Financial Affairs Committee (FAC): policy and planning for financial matters, operating and capital budgets, all expenditures, revenues, fiscal commitments, property sales and acquisitions, and transactions that affect the financial resources of USNH

Audit Committee: external audit, internal audit, conflict of interest and enterprise risk management

Finance Committee for Investment: investment of USNH funds

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Evidence of Strong Financial Control

• Bond Ratings: Moody’s Aa3 | S&P AA-;

“The system’s very good strategic positioning is supported by strong fiscal oversight demonstrated by solid liquidity, manageable leverage, good donor support, and consistently positive operations.” - Moody’s

• Long history of “clean” unqualified audit opinions

• Facilities condition index relative to peers demonstrates careful investment in physical assets

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Authority of the Trustees

• RSA 187-A:16 provides the USNH trustees with the management and control of all property and affairs of the university system

• USNH has 429 buildings with 9.2 million gross square feet and a replacement value of $3 billion

• The Board has comprehensive polices for capital planning and budgeting, property acquisition and disposal, construction, leasing, operation and maintenance of USNH property.

• Board policy requires campus master plans be performed every ten years with a 20 year horizon.

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State Capital Appropriations

$23 | 4%

New Debt$114 | 21%

Gifts & Grants$29 | 6%

USNH Funds$369| 69%

USNH Capital Revenues FY13-FY18Total = $535 Million

Data from USNH Controller’s Office.

$ in millions

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USNH Capital Planning Process

residential campuses

• Pursuant to Board policy, the Financial Affair Committee reviews multi-year capital plans that separately identify projects over $2 million.

• The Board of Trustees approves an annual capital budget within parameters it sets each fiscal year. Campuses are to propose capital budgets at levels that approximate depreciation.

• An independent facilities benchmarking is presented to the Board annually to inform capital planning, budgeting and approval of projects.

• Capital project updates are provided at each quarterly meeting of the Financial Affairs Committee.

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USNH 6-Year Capital Plan

USNH currently manages 9.2 million sq. ft. in 429 facilities

Number of

Buildings

CampusSquare Feet

(SF)

Replacement Value1

(Millions of Dollars)

Current Facilities Condition Index2

(FCI)

Granite State College 2 57,909 $20.7 M 8.63%

Keene State College 73 1,564,654 $581.0 M 25.68%

Plymouth State University 62 1,631,904 $642.8 M 30.43%

University of New Hampshire 292 5,983,207 $2,100.9 M 20.60%

University System of New Hampshire 429 9,237,674 $3,345.4 M 24.51%

Note 1: In 2018 DollarsNote 2: FCI = Required Maintenance & Repair/Current Replacement Value

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USNH Projected 6-Year Capital Spend

April 2018 multiyear capital plan will be updated in April 2019 TOTAL FY 18 FY 19 FY20 FY 21 FY 22 FY23

Keene State CollegeTotal Capital Spend $52.6 M $3.1 M $9.2 M $5.3 M $10.0 M $13.6 M $11.4 M

Adjusted Depreciation Base $61.6 M $9.8 M $13.3 M $9.0 M $9.0 M $10.5 M $10.0 MCapital Spend v Depreciation -$9.0 M -$6.7 M -$4.1 M -$3.7 M $1.0 M $3.1 M $1.4 M

Plymouth State UniversityTotal Capital Spend $80.1 M $17.5 M $26.7 M $11.6 M $8.8 M $10.0 M $5.5 M

Adjusted Depreciation Base $85.4 M $22.7 M $13.1 M $12.9 M $13.7 M $11.5 M $11.5 MCapital Spend v Depreciation -$5.3 M -$5.2 M $13.6 M -$1.3 M -$4.9 M -$1.5 M -$6.0 M

University of New HampshireTotal Capital Spend $344.3 M $56.0 M $59.7 M $57.7 M $57.4 M $56.7 M $56.8 M

Adjusted Depreciation Base $345.0 M $55.4 M $59.6 M $58.2 M $57.8 M $57.0 M $57.0 MCapital Spend v Depreciation -$0.7 M $0.6 M $0.1 M -$0.5 M -$0.4 M -$0.3 M -$0.2 M

University System of New HampshireTotal Capital Spend $477.0 M $76.6 M $95.6 M $74.6 M $76.2 M $80.3 M $73.7 M

Adjusted Depreciation Base $492.0 M $87.9 M $86.0 M $80.1 M $80.5 M $79.0 M $78.5 MCapital Spend v Depreciation -$15.0 M -$11.3 M $9.6 M -$5.5 M -$4.3 M $1.3 M -$4.8 M

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Capital Project Approval Thresholds

Pursuant to Board policy and regardless of funding source:

• The campus president has authority to approve capital projects totaling the lesser of $2 million or 3% of an institution’s unrestricted net assets. For KSC, PSU and GSC the threshold is $2 million. For UNH, the threshold is $3.8 million in FY 19.

• The Financial Affairs Committee of the Board approves capital projects between the presidents’ authority up to $10 million.

• The Board approves all capital projects valued at $10 million or higher.

35

Capital Project Approval Process

• For projects needing Financial Affairs Committee (FAC) or Board of Trustees approval proposed project scope, detailed project budget with funding sources and schematic design documents are presented at a quarterly Committee/Board meeting.

• Project presentations also include future impact on campus operating expenses, deferred maintenance needs, and return on investment, if applicable.

• At the subsequent meeting of the FAC and/or Board of Trustees, the project is on agenda for approval. This provides trustees sufficient time to further evaluate the project before approval is sought.

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Authority For Naming of Facilities and Programs

• RSA 187-A:16 provides the USNH trustees with the management and control of all property and affairs of the university system

• Pursuant to Board policy, The Board of Trustees retains authority to name any permanent building or college or school within an institution.– Discussion with potential donors prior to final Board approval are preliminary

and non-binding.– Other than the above, each campus president is authorized to name programs

and facilities at his or her respective institution.

37

Factors in Naming Facilities and Programs

Pursuant to Board Policy:

• In naming a facility or program after a person, whether living or deceased, the Board or a president shall take the following factors into consideration: the person's historical significance, service, philanthropy, and other contributions to the country, state, or University System or any of its component institutions. No facility or program shall be named after a person for partisan political purposes and the Board and each president shall diligently endeavor to avoid even the appearance of such purpose.

• No facility or program shall be named after a trustee or employee of the University System or any of its component institutions until at least two years after the individual has left that position.

• No facility or program shall be named after an individual who at the time is a declared candidate for elective public office.

Capital Appropriations Request FY20-21

39

USNH FY 20-21 State Capital Budget Request

.