abor mission - Arizona Board of Regents

ABOR MISSION

The Arizona Board of Regents is committed to ensuring access for qualified residents of Arizona to undergraduate and graduate institutions; promoting the discovery, application, and dissemination of new knowledge; extending the benefits of university activities to Arizona’s citizens outside the university; and maximizing the benefits derived from the state’s investment in education.

ARIZONA BOARD OF REGENTS UNIVERSITY OF ARIZONA

STUDENT MEMORIAL UNION Thursday and Friday, December 9 and 10, 2010

Thursday, December 9, 2010 1:30 p.m. CALL TO ORDER, GREETINGS, AND ANNOUNCEMENTS FROM THE

BOARD CHAIR 1:40 p.m. ADOPTION OF ALL CONSENT ACTION ITEMS AND ACCEPTANCE OF ALL

CONSENT INFORMATION ITEMS All items on the agenda that are underlined and marked with an asterisk

(*) are consent matters and will be considered by a single motion with no discussion. All other items will be considered individually.

*Minutes A. August 5 – 6, 2010 Executive Session Meeting B. September 23 - 24, 2010 Regular Board Meeting 1:50 p.m. CALL TO THE AUDIENCE Per Board Policy 1-114, time has been set aside for Call to the Audience,

an opportunity for people to express their views or concerns to the entire Board in a public setting.

2:00 p.m. ENTERPRISE INITIATIVES

1. Enterprise Initiatives

The Board will receive an update from President Anderes on progress on the enterprise initiatives and establishment of council work plans.

ARIZONA BOARD OF REGENTS MEETING December 9 - 10, 2010 2

2:45 p.m. STRATEGIC PLANNING COMMITTEE

2. Board and University Five-Year Strategic Plans

The Board is asked to approve the FY 2012-2016 Five-Year Strategic Plans for Arizona State University, Northern Arizona University, the University of Arizona, and the Arizona Board of Regents.

3:15 p.m. ACADEMIC AFFAIRS COMMITTEE

3. Report from the Academic Affairs Committee The Board will receive a report from Regent DuVal on the December 8,

2010 Academic Affairs Committee meeting.

4. Course Numbering System for Community Colleges and Universities

The Board is asked to endorse the proposed statewide shared numbering system for the community colleges and universities developed in response to SB 1186 and approved by the Joint Council of Presidents of the community colleges and universities.

5. Combined Report on Student Matriculation, Enrollment and

Graduation

The Board will receive a summary of various reports including the pipeline of high school graduates into higher education, the university enrollment of students and those who graduate.

6. Reduction in TRIF Investment in Arizona Universities Network

(AZUN)

The Board is asked to reduce its Technology and Research Initiative Fund (TRIF) investment in Arizona Universities Network (AZUN) as recommended by the Enterprise Executive Council.

4:15 p.m. RECESS


Friday, December 10, 2010 9:00 a.m. GETTING AHEAD

7. Report from Getting AHEAD

The Board will receive a report on Arizona’s participation at Lumina’s National Productivity Conference in November and a progress report from Rebecca McKay from the Student-Centered Advising and Career Planning Committee of Getting AHEAD, Arizona’s program implementing the Lumina productivity grant.

9:30 a.m. AUDIT COMMITTEE

8. Report from the Audit Committee The Board will receive a report from Regent Mariucci on the December 9, 2010 Audit Committee meeting.

9:45 a.m. CAPITAL AND PROJECT FINANCE COMMITTEE

9. FY 2011 Capital Development Plans Revisions (ASU, NAU)

Arizona State University and Northern Arizona University request approval of revisions to their FY 2011 Capital Development Plans. The University of Arizona does not have any changes to its CDP approved in August 2010. A. Arizona State University

Arizona State University requests the Board’s approval of revisions to the FY 2011 Capital Development Plan which includes four new projects, one of which is a third party project; and seven resubmitted projects, five of which are third party projects. Excluding third party projects, the CDP totals $224 million.

B. Northern Arizona University Northern Arizona University requests the Board’s approval of revisions to the FY 2011 Capital Development Plan, which includes three new projects and one resubmitted project. Excluding the third party project, the CDP totals $125.4 million.

10. New Business School Facility Project Implementation Approval (ASU)

Arizona State University requests Project Implementation Approval for the New Business School Facility at the Tempe campus. The 125,000


square foot, $58.5 million project would be financed with System Revenue Bonds to be repaid from tuition and other local funds over 30 years.

11. Issuance of System Revenue Bonds to Finance the Health Services

Expansion and Renovation Project, Acquisition of the Centerpoint Office Building, and Other Projects Not Requiring Board Approval (ASU)

Arizona State University requests authorization (a) to sell one or more series of System Revenue Bonds (SRBs) to produce sufficient proceeds to finance (1) not-to-exceed $54.5 million for the cost of acquiring, constructing and equipping the previously approved FY 2011 projects; (2) not-to-exceed $1.0 million for costs of issuance, including bond underwriting fees; (3) payments to a bond insurer or other credit enhancer, provided such payments provide a benefit that exceeds the amount of such payments; (b) to sell such bonds at a price at, above, or below par and at fixed or variable rates of interest; (c) to take related actions, including designating any such bonds as Build America Bonds under federal law; and (d) to enter into necessary agreements and to execute all necessary documents including those related to bond insurance or other credit enhancement agreements.

12. Issuance of Revenue Bonds to Refund a 1993 Bond Series and for

Financing Reimbursement of Prior Capital Projects (UAHC/UMCC)

UA Healthcare (UAHC) and University Medical Center Corporation (UMCC) request approval to sell bonds to produce sufficient proceeds to finance (1) not-to-exceed $36 million to refund selected or all maturities of the UMCC’s Series 1993 Hospital Revenue Refunding Bonds (“1993 Bonds”) in order to obtain interest savings; (2) not-to-exceed $40 million issuance of Hospital Revenue Bonds (the “Bonds”) for a new parking facility and other capital expenditures; (3) not-to-exceed $1,330,000 to pay costs of issuance; (4) payments to bond insurer or other credit enhancer provided that such payments provide a benefit that exceeds the amount of such payments; (5) payments pursuant to any related interest rate swap or lock agreements; and (6) to take all related actions, entered into all necessary agreements and execute all necessary documents, as provided in the Supplemental Resolution, reviewed by ABOR counsel and staff, as long as net present value savings of at least 3% of the bonds being refunded is achieved.

13. *Skydome SPEED Renovation Revised Project Approval (NAU)

Northern Arizona University requests revised Project Approval for the Skydome renovations originally being financed with SPEED revenue bonds. The revision includes a budget increase of $3.7 million to address foundation issues and additional code requirements. The


increases will be funded with university funds. The total project cost is increasing from $21.9 million to $25.6 million.

14. *Liberal Arts SPEED Renovation Revised Project Approval (NAU)

Northern Arizona University requests revised Project Approval for the Liberal Arts Building renovations being financed with SPEED revenue bonds. The revision includes a budget increase of $900,000 for outdoor exterior stairs and audiovisual upgrades. The total project cost is increasing from $8.7 million to $9.6 million.

10:30 a.m. PUBLIC OUTREACH AND LEGISLATIVE AFFAIRS COMMITTEE

15. Report from the Public Outreach and Legislative Affairs Committee

The Board will receive a report from Regent McLendon on the December 8, 2010 Public Outreach and Legislative Affairs Committee meeting. The Board is further asked to authorize the Committee to take positions on state and federal legislation on behalf of the Board and to provide direction on related issues to the system’s government affairs professionals.

10:45 a.m. RESOURCES COMMITTEE

16. FY 2012-2016 Technology and Research Initiative Fund (TRIF) Budget Guidelines

The Board is asked to approve guidelines to be used by the universities in the development of their FY 2012-2016 TRIF budgets as recommended by the Research Task Force.

17. UA Healthcare, Inc. Business Plan Update

The Board will receive an update from President Shelton on the progress

of UA Healthcare, Inc., to integrate the University Medical Center Corporation and University Physicians Healthcare, Inc.

18. Multiple-Year Employment Contract for Head Football Coach (NAU)

Northern Arizona University requests approval for a three-year Multiple-Year Employment Contract for Jerome Souers as the Head Football Coach, for the period January 1, 2011 through December 31, 2013.

19. Extension of Multiple-Year Employment Contract for Head Baseball

Coach (UA)

The University of Arizona requests approval to extend the Multiple-Year Employment Contract for Andrew Lopez as Head Coach of its Baseball


Team, from its present expiration date of June 30, 2013 through June 30, 2015.

20. *Trust Agreement Between the University of Arizona and the

University of Arizona Foundation for Pooled Endowment Investment Management and Stewardship Services (UA)

The University of Arizona requests approval to enter into a trust agreement under which the University of Arizona Foundation will manage the investment of University and Foundation pooled endowment funds for the long-term benefit of the University, and provide stewardship services to beneficiary departments and donors of endowed gifts.

21. *Executive Committee for UA Healthcare, Inc. Board of Directors

The Board is asked to approve the election of Joseph Cesare as a

member of the Executive Committee of the UA Healthcare, Inc. Board of Directors.

22. *Tuition-Setting Calendar for the 2011-12 Academic Year

The Board is asked to approve the tuition-setting process and calendar to set the 2011-12 academic year tuition and fees in April 2011.

23. *Intergovernmental Agreement (IGA) between the University of

Arizona and the Arizona Health Care Cost Containment System (AHCCCS) for Disproportionate Share Hospital Program Funding (UA)

The Board is asked to approve an agreement between the University of Arizona and AHCCCS for disproportionate share hospital program funding.

24. *Intergovernmental Agreement (IGA) between the Arizona

Department of Economic Security (ADES) and Arizona State University (ASU)

Arizona State University requests ratification of an amendment to an IGA with ADES whereby ASU will provide services for the ReachOut and CarePRO Program in exchange for $746,967. ASU and its parties will also provide $435,822 in match for a total of $1.18 million.

25. *Arizona Area Health Education Centers (Arizona AHEC) Revised FY

2011 Program Budget

The Board is asked to approve the revised FY 2011 budget for the Arizona Area Health Education Centers (Arizona AHEC) program.


26. *Disclosure of Substantial Interest of University Employees in

Neural Micro Devices LLC (ASU) Arizona State University requests Board approval to transfer technology

to Neural Micro Devices LLC, pursuant to a License Agreement between AzTE and Neural Micro Devices LLC.


Daylight Solutions, LLC (ASU) Arizona State University requests Board approval to transfer technology

to Daylight Solutions, LLC, pursuant to a License Agreement between AzTE and Daylight Solutions, LLC.


Matteren, LLC (ASU) Arizona State University requests Board approval to transfer technology

to Matteren, LLC, pursuant to a License Agreement between AzTE and Matteren, LLC.

29. *Authorization to Approve Various New and Continuation Awards

(ASU)

Arizona State University requests Board approval for acceptance of new and continuation awards of grants and research contracts from various sponsors in the amount of $26,468,356 with an anticipated total amount of $48,536,714 throughout the life of the projects.


(NAU)

Northern Arizona University requests Board approval for acceptance of new and continuation awards of grants and research contracts from various sponsors in the amount of $1,530,000 with an anticipated total amount of $7,666,250 throughout the life of the projects.


(UA)

The University of Arizona requests Board approval for acceptance of new and continuation awards of grants and research contracts from various sponsors in the amount of $15,311,981 with an anticipated total amount of $37,745,767 throughout the life of the projects.


11:30 a.m. GOVERNANCE COMMITTEE

32. Report from the Governance Committee

The Board will receive a report from Regent DeConcini on the December 8, 2010 Governance Committee meeting.

33. *Proposed Revision to ABOR Policy 2-203 “Academic Degree

Program Planning and Implementation” (Second Reading) The Board is asked to approve a revision to ABOR Policy 2-203 that

would delegate authority for approving Academic Strategic Plans to the Academic Affairs Committee.

34. *Proposed Revisions to ABOR Policies 1-120 “Equality of

Opportunity,” 3-901 “Conflict of Interest,” 6-804 “Sick Leave,” and 6-810 “Furloughs” (Second Reading)

The Board is asked to approve revisions to ABOR Policies 1-120, 3-901,

6-804, and 6-810 to remove references to the Human Resources Committee.

35. *Proposed Revisions to ABOR Information Technology Policies 9-

101 through 9-108 to Reflect New Tri-University Information Technology Council Responsibilities (Second Reading)

The Board is asked to approve revisions to ABOR Information

Technology Policies to reflect new Tri-University Information Technology Council responsibilities.

ADMINISTRATIVE BUSINESS 36. *Approval of Regents Awards for Outstanding Service to Higher

Education

The Board is asked to approve the recommendations of the Regents Award Selection Committee to present the 2011 Regents Awards to Bruce and Robert Crozier, Stevie & Karl Eller, Stephen Evans and the Arizona Students’ Association.

11:45 a.m. REPORT FROM THE ARIZONA FACULTIES COUNCIL

11:55 a.m. INQUIRIES, REQUESTS, REPORTS, AND COMMENTS FROM REGENTS

AND MEMBERS OF THE ENTERPRISE EXECUTIVE COUNCIL 12:00 p.m. ADJOURN


PLEASE NOTE: This agenda may be amended at any time prior to 24 hours before the Board meeting. Estimated starting times for the agenda items are indicated; however, discussions may commence, or action may be taken, before or after the suggested times. Any item on the agenda may be considered at any time out of order at the discretion of the President of the Board. During the meeting, the Board may convene in Executive Session to receive legal advice regarding any item on the agenda. Meeting Schedule for 2010-2011 February 17 and 18, 2011 ASU April 7 and 8, 2011 UA June 16 and 17, 2011 NAU Meeting Schedule for 2011-2012 August 4 and 5, 2011 ASU September 22 and 23, 2011 NAU December 1 and 2, 2011 UA February 16 and 17, 2012 ASU April 5 and 6, 2012 UA June 14 and 15, 2012 NAU Meeting Schedule for 2012-2013 August 9 and 10, 2012 ASU September 27 and 27, 2012 NAU December 6 and 7, 2012 UA February 7 and 8, 2013 ASU April 4 and 5, 2013 UA June 13 and 14, 2013 NAU Meeting Schedule for 2013-2014 August 15 and 16, 2013 ASU September 26 and 27, 2013 NAU November 21 and 22, 2013 UA February 6 and 7, 2014 ASU April 3 and 4, 2014 UA June 5 and 6, 2014 NAU

Instruction re: Confidentiality

Pursuant to A.R.S. §38-431.03(B) & (C) all are reminded that minutes of and discussions that occur in executive sessions are confidential by law and that violations of that confidentiality may subject the individuals involved to such penalties as are prescribed by law, including fines, costs, attorneys’ fees, and removal from office.

EXECUTIVE SESSION AGENDA December 9-10, 2010

NOTE: This agenda may be amended at any time prior to 24 hours before the Board meeting. The executive session is scheduled for 11:15 a.m. on Thursday, December 9, 2010 and at 7:30 a.m. on Friday, December 10, 2010. The executive session may be recessed and continued as necessary.

Statutory Authorization A.R.S. § 38-431.03 Items to be Discussed (A.2) I. Review of minutes of previous Executive Session(s)

II. From the Board, Central Staff or Counsel to the Board

(A.3) A. Legal advice and discussion regarding Board assessment of Presidents III. Northern Arizona University

(A.3) A. Legal advice regarding Residence Hall development (A.1 & 3) B. Legal advice regarding multi-year contract for head football coach.

IV. University of Arizona

(A.3 ) A. Report on Henderson litigation (A.1 & 3) B. Legal advice regarding extension of existing multi-year contract for head

baseball coach (A.3) C. Legal advice regarding UA Healthcare, Inc.

Board of Regents Meeting December 9-10, 2010

Item #1 EXECUTIVE SUMMARY Page 1 of 3

Contact Information: Mark Denke, ABOR 602-229-2503 [email protected] Stephanie Jacobson, ABOR 602-229-2529 [email protected]

Item Name: Enterprise Initiatives

Action Item Discussion Item Information Item Discussion

• The Board will receive a report from President Anderes on progress on the enterprise initiatives and establishment of council work plans.

• The Work plan for the Councils is attached. Recommendation to the Board This report is presented for the Board’s information.

Issue: The Board will receive a report from President Anderes on progress on the enterprise initiatives and establishment of council work plans.



ABOR Higher Education Enterprise Strategic Alignment ACADEMIC and FINANCE COUNCIL COMBINED WORK PLAN

Dates refer to presentation of findings and recommendations to Enterprise Executive Committee (EEC)

ISSUE Responsible Council DATE to EEC

2010

1 Approve new admission standards at NAU-Yavapai and NAU-Yuma and Extended Learning Centers Academic December

2011 2 New performance based investment/funding model Finance January 3 Approve HE enterprise metrics EEC January

4 Separation of administrative support or linkages with the state Finance with Legal January

5 Develop low cost tuition options for selected campuses Finance and Academic February 6 Apply median of peers to tuition planning for main campuses Finance and Academic February 7 Market cost for online / distance programs Academic and Financial February 8 Establish enrollment targets Academic March 9 Identify underperforming academic programs Academic April

10 Eliminate unnecessary duplication at Enterprise level - reassign to university Academic and Financial April

11 Review benefits-approach (cafeteria) and the ability to contain costs Finance April

12 Establish public corporations Finance April

13 Centralize functions at Enterprise level to enhance efficiency Academic and Financial April

14 Enterprise level coordination of business operations / contain costs Finance May

15 Develop new programs for new campuses Academic May 16 Complete streamlining community college matriculation Academic May


Item #1 EXECUTIVE SUMMARY Page 3 of 3 17 Accelerate / enhance general ed. curricula Academic June

18 Privatize professional schools selectively Academic June

19 Partnership funding model Finance with VPs Research June 20 Revise HR policies under ABOR authority Finance and Academic June Ongoing

21 Expand online offerings Academic and IT Support

22 Privatize residence halls Finance

23 Evaluate enrollment and graduation performance Academic

24 Privatize professional schools selectively Academic

25 Research competitiveness - $2 billion at enterprise level VPR

26 Research performance upper 10% for key indicators VPR



Contact Information: Rich Stanley (ASU) 480-727-8307 [email protected] Pat Haeuser (NAU) 928-523-7777 [email protected] Ed Frisch (UA) 520-621-7766 [email protected] Glen Nelson (ABOR) 602-229-2528 [email protected]

Item Name: BOARD AND UNIVERSITY FIVE-YEAR STRATEGIC PLANS Action Item Discussion Item Information Item

Background • The Arizona Board of Regents and the universities are required by statute to submit

five-year strategic plans to the Governor’s Office of Strategic Planning and Budgeting (OSPB) and to the Joint Legislative Budget Committee (JLBC) by January 1 each year.

• The format for the five-year plans has been adapted to incorporate the goals set forth in 2020 Vision, the long-term strategic plan for the Arizona University System approved by the Board in March 2009.

Statutory/Policy Requirements • A.R.S. §35-122 requires all state budget units to submit a five-year strategic plan to

the OSPB and the JLBC by January 1 of each year.

• ABOR Policy 7-104 (Strategic Planning) requires the universities to submit their strategic plans to the Board and calls for the Board to review the plans to ensure that they are consistent with systemwide goals and that they reflect current priorities.

Strategic Implications • 2020 Vision calls for aggressive increases in the production of bachelor’s degrees

and research activities by the year 2020. The five-year plans detail how much of the targeted performance changes are expected to occur over the five-year period FY 2012-2016.

• If the goals of the 2020 Vision plan are to be achieved, a greater level of progress

must occur in the later years as resource expectations improve and the cumulative impacts of changes in processes are fully realized.

• The performance targets in the five-year plans project a large increase in the

Issue: The Board is asked to approve the FY 2012-2016 Five-Year Strategic Plans for Arizona State University, Northern Arizona University, The University of Arizona, and the Arizona Board of Regents.



number of Arizonans being served by the higher education enterprise, both through student education and public service to citizens across the state. The projected increase in undergraduate enrollment of 30,491 represents a 29% increase in the number of students served. Progress in meeting the 2020 Vision goals of the next five years will be challenged by the current economic climate facing Arizona, which has contributed to decreases in state funding for higher education at a time when the higher education enterprise is experiencing unprecedented demand.

Discussion • The four goals of 2020 Vision, along with the specific key indicators of progress are:

Educational Excellence: “To be nationally competitive in the percentage of

Arizona’s citizens with a high-quality bachelor’s degree by providing affordable access through a well-coordinated and aligned system.”

→ Number of bachelor’s degrees awarded → Number of Master’s degrees awarded → Number of Arizona community college students who transfer to a university → Number of Arizona community college transfer students awarded bachelor’s

degrees → Educational quality as reported in the National Survey of Student

Engagement (NSSE) → Cost of attendance as a percentage of Arizona median family income

Research Excellence: “To increase the research capabilities and performance

of the Arizona University System to a level of competitive prominence with peer rankings of top American research universities.”

→ Total research expenditures → Number of doctoral degrees awarded → Number of invention disclosures transacted

Community Engagement and Workforce Impact: “To utilize research, economic development, community engagement, and service contributions of the universities to create and disseminate knowledge to strengthen Arizona’s economy and improve Arizona’s quality of life.”

→ Impact of community engagement activities → Total income and expenditures related to service and engagement activities → Number of degrees awarded in high demand fields



Productivity: “To maximize the use of existing resources so that the system can

produce greater numbers of degrees and with greater efficiency of resources per degree without sacrificing quality.”

→ Number of bachelor’s degrees awarded per 100 FTE students → Total educational expenditures per degree awarded → Composite financial index (CFI)

→ Currently, there are no FY 2015 targets for these key indicators. As part of

future planning efforts, the Board may wish to explore the extent to which establishing targets for the productivity indicators would be useful.

Key Data/Findings • How do the FY 2012-2016 Five-Year Plans position the system relative to 2020

Vision targets?

The five-year plans for each university and ABOR are in alignment with the 2020

vision goals. Each university has identified a number of indicators which support the overall attainment of the key performance indicators. This will allow the universities to track and manage a number of levers impacting the key indicators. → The additional indicators include but are not limited to:

o Undergraduate enrollment o Total enrollment o Freshman retention rate o 6-year graduation rate o Number of K-12 schools served by early academic outreach o Student diversity o Number of undergraduate financial aid recipients o Enrollment in non-traditional modes of delivery o Average cumulative hours at graduation

The following table highlights the performance of several key indicators for

achieving the 2020 Vision. Four key factors supporting the achievement of degree production goals are also identified. The rate of change needed to achieve the targets over the next five years is much greater than the two year trajectory achieved thus far, highlighting the strategic challenge the enterprise is facing in serving increasingly more Arizonans while also facing declining state support.



o Bachelor and Master degree production appears on track, while

community college transfers, PhD production needs significant increases over the current trajectory.

o Research expenditures in FY 2010 increased by 8% over FY2009, aided by ARRA related research funding. Research expenditures will need to increase at this same rate, in the absence of ARRA funding, in each of the next five years to achieve the 2016 key performance target.

Selected 2020 Vision Key Performance Indicators

2008 2009 2010 2016 2008‐2010 2010‐2016

Actual Actual Actual Target % Change % Change

Key Performance Indicators:

Bachelor's degree awarded 19,281 20,294 21,037 25,844 9.1% 22.9%

Master's degree awarded 6,243 6,837 6,950 7,500 11.3% 7.9%

Community College transfers 8,470 8,995 9,222 13,496 8.9% 46.3%

Total research expenditures ($000) 831,189 873,063 946,932 1,358,000 13.9% 43.4%

Doctoral degrees awarded 958 1,153 1,006 1,419 5.0% 41.1%

Additional indicators:

Total enrollment (official 21st day) 126,806 129,721 132,035 169,100 4.1% 28.1%

Undergraduate enrollment (official 21st day) 99,155 101,318 104,817 135,308 5.7% 29.1%

Freshman retention rate 77.7% 78.3% unavailable 84.0% 0.8% * 7.3%

6‐year graduation rate 55.8% 56.0% unavailable 62.0% 0.4% * 10.7%

* 2010 vs 2009 change

Several of the key performance indicators have not been fully developed. The universities have addressed strategies to many of these targeted outcomes. Additional work is being undertaken to identify all of the targets and will be presented in a full discussion of the 2020 Vision update in the spring of 2011.

The ABOR five-year plan was updated to incorporate the higher education enterprise model.

Cost Summary • The costs related to the five-year plans are not finalized. Some preliminary estimates

of resource requirements are included in each individual plan.



Appendix • FY 2012-2016 Five-Year Strategic Plans for Arizona State University, Northern

Arizona University, The University of Arizona, and the Arizona Board of Regents are attached.

Recommendation to the Board It is recommended that the Board approve the FY 2012-2016 Five-Year Strategic Plans for Arizona State University, Northern Arizona University, The University of Arizona, and the Arizona Board of Regents to be submitted to the OSPB and JLBC by January 1, 2011, as presented in this Executive Summary.

FiveYear Strategic Plan

Fiscal Years 2012–2016

DRAFT November 1, 2010

Board of Regents MeetingDecember 9-10, 2010

Item 2aPage 1 of 22

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ARIZONA STATE UNIVERSITY FiveYear Strategic Plan

FY 20122016

EXECUTIVE SUMMARY

Introduction This document presents the Five‐Year Strategic Plan (FY 2012‐2016) for Arizona State University (ASU), located in metropolitan Phoenix. The plan represents the strategic priorities guiding ASU’s growth related to its ongoing evolution of a new model for 21st century higher education. Under the direction of President Michael M. Crow, ASU is emerging as one of the leading public research universities in the nation distinguished by its concurrent advancement of academic excellence, enhanced access, and meaningful societal impact. ASU is dedicated to the pursuit of teaching, research and creative excellence, and the identification of solutions to the major challenges of our time. The university is also steadfastly committed to strengthening the Arizona economy, supporting a more sustainable environment, demonstrating leadership in global engagement and setting a new standard for public service. On a broader scale, the 2020 Vision set forth by the Arizona Board of Regents within the past year endeavors to create a similarly aligned university system recognized for its academic and research excellence, and its contributions to the economy and quality of life in Arizona. A well‐educated populace, a vibrant knowledge economy and a skilled workforce are integral deliverables for moving the State forward. To that end, ASU embraces efforts to provide accessible, high quality education, enhance research to rival the best peer institutions, optimize opportunities for innovation, economic development, community engagement and public service, and maximize resources necessary to grow the number of degree‐holders without diminishing quality. At this writing, the State of Arizona continues to face serious fiscal challenges that stand to adversely affect funding for many critical state services, including education. Although the total budgetary impact of the present financial downturn is not fully known, the potential erosion of operational funding for ASU could significantly restrict the scope and efficacy of these strategic plans. In the interim, ASU has articulated contingencies designed to protect the core academic services of the university. Consistent with the instructions provided by the Governor’s Office of Strategic Planning and Budget, ASU is pleased to submit the attached plan for the incremental funding of its priority issues as summarized in the joint vision and mission below. Vision To establish Arizona State University as the model for a New American University, measured not by who we exclude, but rather by who we include; pursuing research and discovery that benefits the public good; assuming major responsibility for the economic, social, cultural vitality, health and well‐being of the community. Goals (20022012) The goals established by the Board of Regents in the 2020 Vision Strategic Plan envision a University system that focuses on four key areas that ultimately drive expansion of the State’s economy. These goals include Educational Excellence, including increased educational opportunity and attainment for Arizonans; Research Excellence, including building a knowledge economy and innovation within the global marketplace; Workforce and Community Engagement, in which the university system will have an increasingly greater impact on the workforce by providing access to high impact degrees and improved lifestyle through engagement in the community; and finally, Productivity, in which the university system will continue to produce all levels of educational degrees in a cost‐effective manner. The goals that Michael Crow has previously outlined within Vision and University Goals 20022012 are directly correlated with the vision delineated by the Board of Regents.


Item 2aPage 2 of 22

2

1. 2020 Vision Goal: Education Excellence, Productivity ASU Goal: Access and Quality for All

o Expand university access to match Arizona diversification and growth o Improve freshmen persistence to 90 percent o Enhance university graduation rate to 70 percent as soon as possible o Develop ASU culture that represents a commitment to quality and community outreach o Enroll 35,000 students in ASU Online programs and in the Colleges@ASU (including our

contribution to AZUN) o Enhance linkages with community colleges so as to expand baccalaureate degree production o Enhance student development and individual student learning

ASU Goal: Establish National Standing in Academic Quality and Impact of Colleges and Schools in Every Field

o Attain national standing in academic quality for each school o Attain national standing in the value added to our graduates in each school o Become the leading university academically (faculty, discovery, research, creativity) in at least

one core subject within each school or college

2. 2020 Vision Goal: Research Excellence, Productivity

ASU Goal: National Comprehensive University by 2012 o Become a leading center for interdisciplinary science and technology discovery and

development o Become a leading center for discovery and scholarship in the social sciences, arts and

humanities. o Enhance research and discovery competitiveness to more than $700 million (in 2006 dollars) in

annual research expenditures o Enhance regional economic competitiveness through research and discovery and value‐added

education programs

3. 2020 Vision Goal: Workforce and Community Engagement, Productivity

ASU Goal: Enhance our Local Impact and Social Embeddedness o Enhance linkage to local and regional social and community development groups o Establish/develop/enhance linkages and partnerships with local, regional and national NGO’s,

governments and public agencies, and private sector firms with a focus on community development

o Undertake applied sustainability research that impacts the social, environmental and economic evolution of the southwest

o Provide an objective and ongoing monitoring role for the region’s progress through the ASU Indicators Project.


Item 2aPage 3 of 22

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ARIZONA STATE UNIVERSITY FiveYear Strategic Plan

FY 20122016

Mission and Description

*As the only major research university in the heart of one of the most rapidly urbanizing metropolitan areas in the nation, a region marked by explosive population growth, demographic change, and environmental trends that threaten its sustainability, ASU must provide leadership for a region that lags behind comparable metropolitan areas in a number of educational, economic, and environmental indicators. ASU seeks to provide the best possible education for the broadest possible spectrum of qualified students, and although focused on its region, ASU has rapidly been recognized as a global presence.

Although a single and unified institution, ASU is spatially distributed across metropolitan Phoenix in four differentiated campuses of equally high aspiration. Each campus represents a planned clustering of related colleges and schools. A federation of strong entrepreneurial colleges, schools, departments, and interdisciplinary institutes and centers will increase academic excellence, foster creativity, and maximize the real‐world impact of the problem‐focused research university of the future.

President Crow has issued two parallel documents that outline the university’s aspirations to become a world‐class institution that pursues teaching, research, and creative excellence focused on the major challenges and questions of our time in such a way as to define a new gold standard of the twenty‐first century university. Arizona State University: A New American University presents ASU’s design imperatives as a definitive prototype of a new type of research university and gives in some detail a number of exemplary initiatives currently underway (see: www.asu.edu/newamericanuniversity). The other document presents a statement of ASU’s Vision and University Goals 20022012, briefly elaborating on the design aspirations for the New American University and then outlining the roles of the university’s constituent campuses into the next decade (http://president.asu.edu/about/asuvision).

Whether providing the best possible education to the students of Arizona, generating economic growth through its visionary research enterprise, or improving the quality of life and quality of place for all Arizonans, ASU is committed to building a great university here in the American Southwest.

Strategic Issues and Strategies

The ABOR Strategic Plan, as defined by the 2020 Vision, calls for a university system that will greatly improve the academic opportunities available to Arizonans. The vision set forth in ASU’s Vision and University Goals 20022012 are aligned neatly with the goals set forth by the Board of Regents. As the Board continues to refine goals to specific levels for each University, ASU is well‐positioned to adapt our current trajectory to match those goals. A key requirement to meeting any of the goals identified in ASU’s original vision, or by the more recently pronounced 2020 Vision described by ABOR, will be the availability of resources sufficient to meet the needs of a growing academic populace. Despite the constraints resulting from the current fiscal pressures in the State, the willingness to continue to provide sufficient resources is of paramount importance to the recovery and strong future economic development of the State. Insufficient levels of funding will inhibit the ability to achieve these goals. Strategic Issue #1 – Increase participation in postsecondary education and ultimately increase baccalaureate degree production. Strategic Issue #2 – Improve the quality of undergraduate and graduate education.


Item 2aPage 4 of 22

4

Strategic Issue #3 – Recruit and retain faculty and staff in highly competitive national and local markets during a period of diminishing resources. Strategic Issue #4 – Expand research capabilities. Strategic Issue #5 – Enhance and improve local impact and social embeddedness. Strategic Issue #6 – Maintain quality and breadth of baccalaureate degree programs during a period of diminishing resources.

TOTAL RESOURCE ASSUMPTIONS FY12 FY13 FY14 FY15 FY16 Full‐time Equivalent (FTE) 0.0 316.6 340.3 365.8 393.2General Funds 0.0 0.0 0.0 0.0 0.0Other Appropriated Funds ‐0.1 31,526.4 33,890.9 36,432.8 39,165.3Non‐appropriated Funds 15,004.1 38,209.4 40,120.1 42,126.0 44,232.3Federal Funds 7,830.3 15,234.3 16,148.4 17,117.3 18,144.3TOTAL FUNDS 22,834.3 84,970.1 90,159.4 95,676.1 101,541.9


Item 2aPage 5 of 22

5

EDUCATIONAL EXCELLENCE

ABOR 2020 Vision: To be nationally competitive in the percentage of Arizona’s citizens with a highquality bachelor’s degree by

providing affordable access through a well coordinated and aligned system.

2020 Vision Plan Key Indicators of Progress

2009

2010

2011

2012

2013

2014

2015

2016

Number of Bachelor’s degrees awarded 11,229 11,810 12,199 12,588 12,977 13,366 13,755 14,144

Number of Master’s degrees awarded 3,615 3,914 3,968 4,023 4,078 4,160 4,256 4,370

Freshman 1‐year retention rate 81.2% 82.0% 83.0% 84.0% 85.0% 86.0% 87.0% 88.0%

Freshman 6‐year graduation rate 56.4% 57.0% 58.0% 59.0% 60.0% 61.0% 62.5% 64.0%

Number of Arizona community college students who transfer to ASU 5,457 5,454 5,873 6,291 6,710 7,128 7,547 7,966

Number of Arizona community college transfer students who graduate 3,746 3,995

Undergraduate enrollment 53,298 54,277 56,562 60,206 63,139 66,222 69,435 72,868

Total enrollment 67,082 68,064 70,440 73,962 77,660 81,543 85,620 90,000

STRATEGIC ISSUE #1

Increase participation in postsecondary education and ultimately increase baccalaureate degree production

To broaden access to a quality education for all segments of the population, ASU must be positioned to accommodate the continuing growth in high school graduates, particularly minority populations and a growing pool of older students requiring new job skills. Never in the history of Arizona has a university education been more important. Our knowledge‐based economy and an ever‐increasing trend toward globalization are changing the skills needed for success in the labor force. Yet, rising costs, need for financial aid, and years of under‐funding for higher education place the idea of broad access at risk. Tuition increases approved by the Board of Regents in recent years and future increases consistent with Board policy will help offset some of the increasing need for financial aid and improve affordability for a greater number of students. ASU is strongly committed to providing access to college for all qualified students. Furtherance of this goal requires bold and sustained planning to provide for the projected increases in enrollments, primarily of undergraduate students. Continued investment will be necessary to provide the infrastructure for the enrollment growth envisioned at each of the campuses. Strategies: Strategy 1: Establish undergraduate colleges that will provide an opportunity for students to complete baccalaureate degrees in three years at lower costs.


Item 2aPage 6 of 22

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Strategy 2: Increase ASU Online program offerings to increase access for students seeking ASU degrees.

Strategy 3: Increase student diversity and the recruitment of academically eligible undergraduate students.

Strategy 4: Provide flexibility in course offerings and educational modalities, including increased online course availability.

Strategy 5: Enhance partnerships with the community colleges to facilitate a more efficient transfer process.

Strategy 6: Make student financial assistance readily available for needy students and other targeted populations. Performance Measures:

Percentage of undergraduates from ethnic minorities

24.8%

25.6%

25.9%

27.80%

29.5%

32.0%

32.5%

33.0%

33.5%

34.0%

34.5%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.

FY 2016 Est. EstimateActual


Item 2aPage 7 of 22

7

Number of firsttime freshman applicants who are admitted in a fall semester

Online Campus enrollment in the fall semester

19,791

22,226

23,504

24,473

25,616

26,128

27,435

28,806

30,247

31,759

33,347

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.


994

1,826

3,023

4,200

5,300

6,500

7,750

9,000

0 2,000 4,000 6,000 8,000 10,000

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.

FY 2016 Est. Estimate

Actual


Item 2aPage 8 of 22

8

Number of undergraduate financial aid recipients with need

Resource Assumptions: FY12 FY13 FY14 FY15 FY16 Full‐time Equivalent (FTE) 0.0 126.7 136.1 146.3 157.3General Funds 0.0 0.0 0.0 0.0 0.0Other Appropriated Funds ‐0.1 12,610.5 13,556.3 14,573.1 15,666.1Non‐appropriated Funds 6,001.6 15,283.7 16,048.0 16,850.3 17,692.9Federal Funds 0.0 0.0 0.0 0.0 0.0TOTAL FUNDS 6,001.5 27,894.2 29,604.3 31,423.4 33,359.0

STRATEGIC ISSUE #2

Improve the quality of undergraduate and graduate education

Undergraduate and graduate education are the cornerstones of the university enterprise. Students seek a high quality education that prepares them to be successful in their careers, to contribute to society, and to become lifelong learners. Today’s graduates must have strong communication, team building, and critical thinking skills as well as a global perspective to be successful. A continued emphasis on providing a quality educational experience requires examining and evolving how the university designs and delivers its instructional programs to maximize the impact of education. Improvements can be accomplished through new pedagogical techniques, such as collaborative learning, service learning, and other learner‐centered approaches; through the appropriate use of technology to enhance the classroom experience; through undergraduate education that focuses on the student as an individual; by providing seamless access to the services and resources required for learning and creative and intellectual inquiry; and by

22,553

22,070

21,810

24,545

30,161

36,193

41,622

47,866

55,045

63,302

72,797

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.

FY 2016 Est. Estimate

Actual


Item 2aPage 9 of 22

9

providing an environment that fosters student scholarship. ASU continues to conceptualize and create a wide range of new interdisciplinary schools, institutes, centers, and programs that will foster the development of new knowledge. In addition, ASU is enhancing learning environments that facilitate learner‐centered delivery with improved utilization policies and room upgrades that incorporate new instructional technologies and flexible room formats. Adequate funding will provide the basic resources needed to accommodate the increased student population, enable ASU to hire the faculty necessary to meet its goals to establish national standing for colleges and schools in every field and fully achieve national comprehensive university status. Strategies:

Strategy 1: Hire faculty needed to guarantee seats in required courses.

Strategy 2: Provide instruction and advising in residence halls.

Strategy 3: Increase summer bridge for underprepared students, which has been shown to dramatically increase retention for these students.

Strategy 4: Increase assessment activity.

Strategy 5: Emphasize learning experiences that are outcomes‐based.

Strategy 6: Expand alternative instructional methodologies and delivery methods.


Item 2aPage 10 of 22

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Performance Measures:

Average cumulative hours at graduation for students who began as freshman

Average cumulative hours at graduation for students who began as transfers

133

134

134

133

133

133

132

132

131

131

131

120 122 124 126 128 130 132 134 136 138 140

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.


135

136

136

136

135

135

135

134

134

134

133

120 122 124 126 128 130 132 134 136 138 140

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.




11

Percentage of graduating seniors who rate their overall university experience as “good” or “excellent”

Resource Assumptions:

FY12 FY13 FY14 FY15 FY16 Full‐time Equivalent (FTE) 0.0 63.3 68.1 73.2 78.6General Funds 0.0 0.0 0.0 0.0 0.0Other Appropriated Funds 0.0 6,305.3 6,778.2 7,286.6 7,833.1Non‐appropriated Funds 3,000.9 7,641.9 8,024.1 8,425.3 8,846.5Federal Funds 0.0 0.0 0.0 0.0 0.0TOTAL FUNDS 3,000.9 13,947.2 14,802.3 15,711.9 16,679.6

STRATEGIC ISSUE #3

Recruit and retain faculty and staff in highly competitive national and local markets during a period of diminishing resources

Quality faculty are fundamental to a quality university education. Without the best faculty, it is not possible to provide the type of higher education that Arizona citizens deserve or to support the cultural and economic vitality that Arizona is striving to obtain. At ASU, hiring and retaining key faculty continues to be a concern. Like the other Arizona universities, ASU continues to struggle to consistently compete in the marketplace. With the funding provided by the state for salaries between FY05 and FY08, ASU made substantial progress in improving faculty salaries, enabling the University to recruit and retain highly recognized and respected academics in a variety of fields, but continues to fall below most of its peers in average faculty salaries. Staff salaries continue to fall behind comparable jobs for classified staff and service professionals. Turnover among classified staff continues to be a significant problem, a symptom of salaries that are not competitive with the local market.

Strategies:

Strategy 1: Close the gap on salaries as defined in the Faculty Peer Salary Analysis. State investment in faculty salaries will be critical to retain key faculty as well as enabling ASU to continue to attract highly recognized new faculty.

95%

95%

93%

93%

93%

93%

94%

94%

95%

95%

96%

80% 82% 84% 86% 88% 90% 92% 94% 96% 98%

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.




12

Strategy 2: Maintain program to improve salary and benefits for graduate research and teaching assistants. Other universities with whom ASU competes for top‐quality graduate students have better salary and benefits packages. Excellent graduate students are essential for improving the quality of both graduate programs and the broader research enterprise.

Strategy 3: Develop and maintain the network and computational resources required by the research community. Maintaining competitiveness in research, faculty and student recruitment and retention requires secure access to: high capacity network connectivity; computational, data, and analytic resources required to support researchers; and the systems and application support staffing required by individual researchers, clusters, and research teams.

Strategy 4: Adopt and implement an ongoing commitment of salary improvement to address significant negative market position of staff (non‐academic) salaries by targeting budgetary funds at a level anticipating salary movement of 3 ‐ 4% per year with allocations tied directly to outcome driven performance measures.


Percent of classified staff turnover

13.5%

15.3%

15.7%

14.3%

14.8%

16.0%

16.0%

15.0%

15.0%

14.0%

14.0%

0.0% 5.0% 10.0% 15.0% 20.0%

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.




13

Number of fulltime, tenured/tenuretrack faculty

Resource Assumptions: FY12 FY13 FY14 FY15 FY16 Full‐time Equivalent (FTE) 0.0 0.0 0.0 0.0 0.0General Funds 0.0 0.0 0.0 0.0 0.0Other Appropriated Funds 0.0 0.0 0.0 0.0 0.0Non‐appropriated Funds 0.0 0.0 0.0 0.0 0.0Federal Funds 0.0 0.0 0.0 0.0 0.0TOTAL FUNDS 0.0 0.0 0.0 0.0 0.0

1,722

1,773

1,783

1,836

1,810

1,846

1,884

1,922

1,960

2,000

2,040

100 300 500 700 900 1,100 1,300 1,500 1,700 1,900 2,100 2,300

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.




14

RESEARCH EXCELLENCE

ABOR 2020 Vision: To increase the research capabilities and performance of the Arizona University System to a level of competitive

prominence with peer rankings of top American research universities.


2009

2010

2011

2012

2013

2014

2015

2016

Research expenditures (in millions) $282 $332 $364 $391 $419 $449 $477 $505

Number of Doctoral/Law degrees awarded 766 656 704 755 809 868 931 999

Number of invention disclosures transacted 164 187

STRATEGIC ISSUE #4

Expand research capabilities

ASU continues to vigorously pursue long‐term initiatives in such areas as biosciences, advanced materials, informatics and communications, healthcare, renewable energy and sustainable systems. Over the three year period from 2005 to 2008, ASU’s research expenditures grew at an average rate of 15.9% while the median of our ABOR peer institutions over the same period was 3.5%. ASU’s goal is to grow its research expenditures to more than $700M annually by 2020. With recently awarded projects such as the $14.3M Department of Energy sponsored Energy Frontier Research Center and the $33.8M Department of Education Teacher Preparation Program; we are making great strides toward reaching this goal. To support our aspirations, ASU has defined seven strategies and four key focus areas that will allow us to continue our exceptional growth, serve the surrounding community and meet our 2020 research expenditure goal. Strategies:

Strategy 1: Differentiate ASU from the competition through the procurement of large projects (> $10 million) in several key target areas; biosciences, urban sustainability, advanced materials, and light‐inspired energy. The approach will involve engaging the Provost to develop meta plans for major colleges, preparing opportunity briefs on large projects, building global and Federal intelligence systems to maximize our success with large proposals. Strategy 2: Pursue a national research laboratory on the scale of $50‐$100 million per year, in energy, aerospace, homeland security, or biosciences. Activities will include the transition of the AFRL Mesa Lab to an ASU asset; evaluation of FDA funded biosignature laboratory and the pursuit of the DOE Hub in solar‐to‐fuels. Strategy 3: Continue to promote and support ASU’s “bread and butter” $50,000‐$750,000 projects from across the university through the improvement of the Office for Research and Sponsored Project Administration infrastructure, expansion of faculty opportunity search capabilities and providing assistance to the research deans for opportunity identification and development. Strategy 4: Continue to expand research funding from foundations and individual donors by working closely with the Foundation to support its activities, particularly the ASU Challenges initiative.



15

Strategy 5: Expand our collaborative research activities with industry to take advantage of their desire to shift basic and applied research requirements to university labs. Master research agreements, close connections with business development activities, and expansion of existing consortia (e.g., Flexible Display Center (FDC)) will be established with the 12 largest research‐performing companies in Arizona. Strategy 6: Continue to pursue angel and venture investment in emerging companies. Activities will include developing a best‐in‐class intellectual property team and extension of Sky Song’s entrepreneurship agenda. Strategy 7: Provide sufficient research infrastructure. Facility improvement and solidification of animal care operations will be undertaken in cooperation with the Office of Business and Finance and University Planning. Key Focus Area #1: Improve infrastructure to support research

Achieving our research expenditure goals will require additional research space. A recent Space Analysis found that an impending research space shortage threatens to limit the University’s ability to meet its research goals. The University must develop plans to repurpose existing space and construct new facilities. To develop these plans the University has undertaken an effort to survey unused and underused space, determine return on investment of allocated space and consistently revisit space allocation to respond to the dynamic research needs. Results will be shared with all stakeholders and plans to refurbish and repurpose will be developed to meet current and future needs. Funds for construction of new buildings will involve State, Federal and Philanthropic entities. The University will work with the State to clearly define research priorities and communicate current and future space requirements. Federal and Philanthropic funding opportunities will also be explored where appropriate to address the current and future space requirements. The University’s information technology infrastructure is continuously challenged to keep pace with the rapid increase in externally funded research. To meet the demands of research growth and to plan for future growth, new tools must be designed and implemented across the Research Enterprise in a way that leverages existing IT infrastructure and increases functionality for the entire Research community. Implementation of an end‐to‐end research administration system will allow for immediate process improvements and continued research expenditure growth. The improvement of the information technology infrastructure will be executed concurrently with the reorganization of research administration personnel and business processes.

Key Focus Area #2: Accelerate technology transfer initiatives

As ASU's research enterprise has expanded over the past several years, AzTE has undertaken a variety of activities in furtherance of its mission to facilitate advancement of University technology into the marketplace. Thus far we have outpaced our peer institutions, with 6.97 invention disclosures per $10M of research funding. Current activities include the following:

• Closely align AzTE functions and support with new research initiatives such as the Biodesign Impact Accelerator

• Continue focus and support of existing initiatives and programs, including commercialization strategy at the Flexible Display Center

• Increase connectivity with investors and industry through conferences and other outreach activities • Form a seed stage venture capital fund led by ASU to accelerate the number of faculty related spin‐outs • Increase technology exposure through cross marketing activities with other universities • Increase faculty interaction and outreach, including the establishment of an AzTE office on campus to

foster faculty relationships and commercialization activities

Key Focus Area # 3: Incorporate new approaches, including increased focus on interdisciplinary research

In keeping with the spirit of the New American University vision, we will continue to expand our research capabilities through an interdisciplinary approach. Interdisciplinary research involves not only drawing upon the expertise across the University but also includes partners such as industry, academia and clinical entities. We are focusing our efforts in bringing together researchers from disparate disciplines to tackle complex questions central to the areas of strategic interest. The Biodesign Institute and its 11 research centers exemplify



16

this approach. We are working on new industry‐university consortium models (such as the FDC) that bring together industry and University researchers working collaboratively to address national challenges and result in significant educational and economic impact. We are increasingly taking a global approach to solving local problems such as climate change. We are also creating the ecosystems for promotion of innovation and entrepreneurship activities.

Key Focus Area #4: Increase participation in multiinstitutional grants and consortiums

It is a strategic goal of ASU to be successful in securing several multi‐institution, multi‐disciplinary, multi‐year, multi‐million dollar (4M) research projects. A specific goal is to secure a national research laboratory or its equivalent by 2015. To achieve this objective, we will cultivate, identify, target and develop 4M research opportunities leveraging ASU strengths in strategic research areas. Competitive teams and consortium will be constructed by bringing in complementary strengths through partnerships with National Labs, academia, industry and government partners to successfully secure these grants.


Research expenditures* ($ in millions)

* The NSF reporting standard changed in 2010 from including science and engineering only, to including research in all disciplines.

$202

$224

$260

$282

$332

$364

$391

$419

$449

$477

$505

$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010 Est.

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.




17

Percentage of faculty and academic professionals receiving extramural support for research and creative activity (sponsored projects)

Sponsored project proposals submitted

Resource Assumptions: FY12 FY13 FY14 FY15 FY16 Full‐time Equivalent (FTE) 0.0 0.0 0.0 0.0 0.0General Funds 0.0 0.0 0.0 0.0 0.0Other Appropriated Funds 0.0 0.0 0.0 0.0 0.0Non‐appropriated Funds 0.0 0.0 0.0 0.0 0.0Federal Funds 7,830.3 15,234.3 16,148.4 17,117.3 18,144.3TOTAL FUNDS 7,830.3 15,234.3 16,148.4 17,117.3 18,144.3

46%

46%

46%

49%

49%

50%

52%

55%

56%

56%

57%

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

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.


2,107

2,287

2,390

2,473

2,635

2,767

2,927

3,085

3,257

3,436

3,627

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.

FY 2016 Est.Estimate

Actual



18

WORKFORCE AND COMMUNITY

ABOR 2020 Vision: To utilize research, economic development, community engagement, and service contributions of the universities to

create and disseminate knowledge to strengthen Arizona’s economy and improve Arizona’s quality of life.


2009

2010

2011

2012

2013

2014

2015

2016

Impact of community engagement activities

Total income and expenditures related to service and engagement activities $43,121 TBA

Number of degrees awarded in high demand fields

STRATEGIC ISSUE #5

Enhance and improve local impact and social embeddedness

Development of ASU requires the university to be a fully engaged and integral part of the social, cultural, and economic fabric of the metropolitan area and the state of Arizona. ASU will demonstrate its social embeddedness to the extent that the faculty and staff are supporting and sustaining communities and solving problems through applied research, service, and partnerships in the P‐12 education system, business and industry, government, and the community. ASU must assist in building a socially diverse and economically viable community, in developing civic and community leadership, and in addressing challenges such as poverty, growth, economic development and diversification, social infrastructure, and quality of life. Achieving a higher degree of social embeddedness requires a change in the internal culture of the university as well as a change in the role of the university in the eyes of the community. The university must continue to expect employees to contribute to community life through their expertise, intellect, and engagement. And the community must come to see the university as the key resource and place to get advice about community issues and solutions to community problems. Strategies:

Strategy 1: Address the interests and workforce needs of the metropolitan area and state in times of diminishing economic resources.

Strategy 2: Enhance partnerships with the community and the state. ASU has successfully implemented a number of programs that enhance partnerships within the community and state. Examples include the University Public School Initiative, which seeks, in partnership with local school districts and the community, to launch research‐based schools to serve as exemplars and resources for other schools. As another example, ASU continues to develop and extend its partnerships with the Mayo Clinic.

Strategy 3: Increase the number of qualified teachers to meet the K‐12 educational demands of a growing population and provide opportunities for continuing development



19


Arizona K–12 teachers served through ASU educational support programming

Persons viewing KAETTV on a weekly basis (in thousands)

Resource Assumptions: FY12 FY13 FY14 FY15 FY16 Full‐time Equivalent (FTE) 0.0 0.0 0.0 0.0 0.0General Funds 0.0 0.0 0.0 0.0 0.0Other Appropriated Funds 0.0 0.0 0.0 0.0 0.0Non‐appropriated Funds 0.0 0.0 0.0 0.0 0.0Federal Funds 0.0 0.0 0.0 0.0 0.0TOTAL FUNDS 0.0 0.0 0.0 0.0 0.0

53,369

54,177

61,740

61,966

63,877

65,064

60,684

61,898

63,136

64,399

65,687

10,000 20,000 30,000 40,000 50,000 60,000 70,000

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.


2,235

2,221

1,841

1,418

1,647

1,632

1,680

1,730

1,782

1,835

1,890

0 500 1,000 1,500 2,000 2,500

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011 Est.

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.




20

PRODUCTIVITY

ABOR 2020 Vision: To maximize the use of existing resources so that the system can produce greater numbers of degrees and with

greater efficiency of resources per degree without sacrificing quality.


2009

2010

2011

2012

2013

2014

2015

2016

Number of bachelor’s degrees awarded per 100 FTE students

Total educational expenditures per degree awarded $49,000 TBA

Comprehensive Financial Index (CFI)

STRATEGIC ISSUE #6

Maintain quality and breadth of baccalaureate degree programs during a period of diminishing resources

With the emergence of the fiscal crisis in Arizona and nationally, Arizona State University has seen a decrease in funding from the State of $110 million or 22% of base funding. In addressing the sudden and significant decline, the focus of resource reduction was to protect to the greatest extent possible the educational mission of the university, and to reduce the student services and administrative functions rather than academic activities. Colleges and departments have been consolidated, eliminating duplicate administrative structures.

A core investment is necessary to support ASU’s current student population at a level that will allow ASU to remain competitive with its peers. ASU, with more than 70,000 student enrollment supports over half of the students attending a public university in Arizona. In order to provide appropriate instruction, support services for students and the technology needed, ASU requires an investment that equates to $8,500 per full time equivalent student in general fund support. Current state investment totals $5,656 per FTE. Co‐investment from students and their families in the form of reasonable tuition and fees is also needed if the university is to provide competitive degree programs that best prepare students for the future.

Temporary funding has been available to support the funding shortfall, including stimulus funding in FY09 and in FY10. When these alternate funding sources expire, and absent increases in state funding, ASU will be forced to seek increases in tuition in order to maintain the level of academic investment needed to support enrollment.

Strategies:

Strategy 1: Advance student co‐investment through tuition and fee increases

Strategy 2: Reduce costs through administrative consolidation



21

State Investment per FTE

Resource Assumptions: FY10 FY11 FY12 FY13 FY14 Full‐time Equivalent (FTE) 0.0 126.6 136.1 146.3 157.3General Funds 0.0 0.0 0.0 0.0 0.0Other Appropriated Funds 0.0 12,610.6 13,556.4 14,573.1 15,666.1Non‐appropriated Funds 6,001.6 15,283.8 16,048.0 16,850.4 17,692.9Federal Funds 0.0 0.0 0.0 0.0 0.0TOTAL FUNDS 6,001.6 28,021.0 29,740.5 31,569.8 33,516.3

6,334

7,154

7,976

6,513

5,902

5,692

5,455

5,203

4,962

4,734

4,512

0 2,000 4,000 6,000 8,000 10,000

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012 Est.

FY 2013 Est.

FY 2014 Est.

FY 2015 Est.




F I V E - Y E A R S T R A T E G I C P L A N

2 0 1 2 - 2 0 1 6

Expanding our Vision, Deepening our Roots

DRAFT: 10-29-2010


Item #2bPage 1 of 47

expanding access and enhancing educational excellence

After her two older siblings went to college near the family’s

central Phoenix home, Carol Alonzo knew the University of

Arizona was a big leap for her. She also knew it was the right place

for her to study the difficult science curriculum she needs to

prepare for a career as a doctor or science teacher.

“When I started looking at colleges, I wanted something good in

medical fields and far enough away from home,” said Alonzo, who

is the only one of her graduating class from Carl Hayden High

School to attend the UA. “I applied here and got a really great

scholarship, so it was the smart choice for me.

Majoring in science education with an emphasis in biology,

Alonzo has a two-track plan that lets her explore both medicine

and teaching before finalizing a decision. Alonzo is glad for the

Arizona Assurance scholarship that not only made it possible for

her to attend her first-choice school, but also for the program’s

guidance and support.

carol alonzoAn ArIzonA ASSUrAnCe StUdent

i

“everything about it is good,” she said. “Because of this

scholarship I got to come to college. Without it, I would have had

to take out loans, or maybe I wouldn’t have been able to come

to school at all. I’m just grateful I got to be a part of it. I want to

express my gratitude as much as I can because it has put me in

the right direction.”



Justine Schluntz Dedication, Desire and Drive

Those are the words UA Swimming Coach Frank Busch used to

describe athlete and ’09 graduate Justine Schluntz. In the pool,

this 16-time NCAA All-American helped the Wildcats achieve

the national title in 2008. In 2010, she was named NCAA

Woman of the Year, the third Arizona swimmer to receive the

award in the last four years. Out of the water, Justine’s excel-

lence shines just as brightly. She is the first UA athlete ever to be

named a Rhodes Scholar, and is one of 32 people selected from a

pool of over 800 to attend the University of Oxford in England,

where she plans to spend three years studying the extraction of

tidal energy from the ocean as a renewable resource. Add to it all

that she volunteers as a Big Sister, and you get a picture of a

woman with the true heart of a Wildcat.

ii



Dr. John Galgiani, MD Tracking a Cure in the Desert

Coccidioidomycosis, commonly known as Valley Fever, is

caused by a fungus that lives in the dry desert soils of Arizona

and Texas and infects 150,000 people each year. As a result, 30

people are likely to die each year from complications related to

the infection. Dr. Galgiani has made it his mission to find the

cure. As the head of the Valley Fever Center for Excellence at the

BIO5 Institute, the only center for studying the disease in the

world, Dr. Galgiani is collaborating with chemists, biochemists,

microbiologists and other researchers to study the fungus and

its e�ects, and develop a cure for the infection as well as a

preventative vaccine. Through cutting-edge research and cross-

disciplinary collaboration, Dr. Galgiani is pursuing the big, bold

breakthroughs that will make a di�erence.

iii

Looking for image



expanding community engagement and Workforce impact

the University of Arizona’s Institute for Advanced telemedicine

and telehealth (t-Health Institute) at the Phoenix Biomedical

Campus is a major new arm of the UA’s award-winning Arizona

telemedicine Program.

For the past century, health-care workers have been educated in

profession-specific “silos,” and communication among students

in medical schools, nursing schools, pharmacy schools and the

allied health professional schools often is very limited.

Arizona telemedicine Program’s vast statewide “virtual campus”

stretches throughout Arizona. the amphitheater is linked to 71

rural and urban communities, spanning 120,000 square miles.

on- or off-campus health-care students from all disciplines and

faculty members working at dozens of sites hundreds of miles

away can be assembled electronically on the amphitheater’s large,

12-screen video wall. the system was developed by dr. ronald

S. Weinstein, director of Arizona telemedicine Program, and

richard A. Mcneely, director of Biomedical Communications at

the UA’s Arizona Health Sciences Center. It incorporates custom-

designed visible social network platforms to promote interdisci-

plinary education.

the t-Health theater, part of the new t-Health Institute, uses the newest videoconferencing technology in medical education and health-care delivery. the theater is an interactive classroom that includes a large video wall capable of connecting students, faculty and multi-media presentations in real time.

the t-Health Amphitheater is one component of our College of Medicine’s large modular integrated video conferencing center including a 250-seat auditorium and two video-enabled classrooms.

iv



improving Productivity and increasing efficiency

the newly created Colleges of Letters, Arts and Science is a

partnership of the colleges of Fine Arts, Science, Social and

Behavioral Sciences, Humanities and University College. this

unit has been developed as part of the University of Arizona’s

transformation Plan to build on interdisciplinary strengths and

reduce administrative and business expenses.

About half of the undergraduate students at the University of

Arizona will now be a part of this new college.

Vice President of external relations Steve MacCarthy said that

the merging of the colleges is a way to streamline the efficiency

of the university while saving money.

the proposal for this partnership evolved through the transfor-

mation process that was initiated in the fall of 2008. Academic

and administrative units have advanced proposals to improve

the University’s productivity and efficiency by focusing resources

on core academic and research areas. “It will also make us

academically stronger, which is the ultimate goal of the plan,”

said executive Vice President & Provost Meredith Hay.

“the link between advising and academics is central to a student-

centered research university. this reorganization brings our

academic strengths closer to students’ needs, and it will help us

focus our resources on our teaching and research by cutting

costs in administrative support that can be reinvested in our

core mission.”

v



THE UNIVERSITY OF ARIZONA FIVE‐YEAR STRATEGIC PLAN, 2012‐2016

Mission: As a public research university serving the diverse citizens of Arizona and beyond, the mission of the University of Arizona is to provide a comprehensive, high‐quality education that engages our students in discovery through research and broad‐based scholarship. We aim to empower our graduates to be leaders in solving complex societal problems. Whether in teaching, research, outreach or student engagement, access and quality are the defining attributes of the University of Arizona's mission.

University strategic planning is guided by a shared commitment to three priorities:

Academic Excellence: The University of Arizona must be a center for excellence in education and research.

A preeminent faculty, nurtured in a climate of academic freedom, is the foundation for a student‐centered research university that can attract and graduate highly qualified students. To better meet the needs of the state, The University of Arizona is committed to becoming one of the 10 best public research universities in the United States.

Access and Success: An education at The University of Arizona must be accessible to all who are academically qualified, and it must prepare

students for a productive future. The University must engage, retain, and graduate its students in the greatest numbers possible.

Quality of Life and Societal Impact: In keeping with its historic land grant mission, The University of Arizona serves as an engine of

development and a source of inspiration that enriches individual lives and advances the collective well being of our society. Across every discipline, and on a daily basis, the University works to improve the human condition for the people of Arizona.



The University of Arizona: Building a better Arizona through access, quality and discovery.

Executive Summary: Strategic Directions

Expanding Access and Enhancing Educational Excellence

The University of Arizona educates students to be creative, productive, and engaged members of society. The UA collaborates with its P‐14 educational partners to prepare students for University success, and support education in Arizona by preparing more teachers, especially in Science, Technology, Engineering and Math (STEM) fields, targeting underserved areas first. The university is expanding affordable access to high quality education by increasing enrollments and financial aid, using multiple modalities of course delivery, and improving retention and graduation rates. These efforts are all part of the UA’s commitment to meeting the needs of Arizona’s diverse community.

Increasing Achievements in Research, Scholarship, and Creative Expression

The UA’s leadership in interdisciplinary and collaborative research guides the nation in scholarly inquiry and outreach activities that are critical to Arizona’s future, with particular emphasis on the following areas:

Climate, Environmental, Water and Energy

Sustainability Southwest, Native American, Borderlands, and Latin American Studies

Biosciences and Biotechnology Optics Space Exploration and Observation Creative Arts, Languages and Language Acquisition Law, Public Policy and Entrepreneurship Biomedical and Behavioral Health

Youth Development Programs



Expanding Community Engagement and Workforce Impact

The University of Arizona contributes to the richness and vibrancy of its local and global communities, serving as an incubator and magnet for talent by expanding our partnerships with public, private, and non‐profit organizations. These interactive networks serve to distribute research and strengthen vital services to the people of Arizona in areas ranging from technology transfer initiatives to Cooperative Extension programs.

The UA’s Medicine and Pharmacy programs at the Phoenix Biomedical Campus are a major workforce development initiative and the Healthcare Transformation

Institute at the Phoenix location promises to transform health care in America, starting first with Arizona. Growing enrollment across all UA health‐related programs at the Tucson and Phoenix Biomedical Campuses provides more health professionals to serve the state.

Improving Productivity and Increasing Efficiency

The University’s Transformation Plan continues to assess and restructure campus academic and business units, streamlining operations at every level, while strengthening core missions in teaching, research, and service. The UA’s transition to a “Tuition Funds Flow,” or “Responsibility Centered Management” (RCM), budgeting model will more efficiently and effectively distribute tuition revenues to better serve students, foster faculty innovation and encourage business efficiencies. The university is strategically reallocating research funds to invest in areas of greatest promise and possibility. Commitment to accountability and innovation in serving the changing needs of stakeholders and in meeting the challenges of tomorrow for the state and the world is a core value at the UA.



Strategic Plan Measures 2012‐2016

Profile Table Comparison to 2020 Vision with Annual Targets

Fiscal Years

University Key Indicators and Targets

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Number of Bachelor's Degrees Awarded

5,613 5,568 5,612 5,914 5,827 6,050 6,280 6,510 6,740 7,000 7,200

Number of Master's Degrees Awarded

1,446 1,399 1,418 1,503 1,337 1,380 1,430 1,480 1,530 1,580 1,630

Number of Doctoral ‐ Research Degrees Awarded

395 461 451 479 471 479 487 495 500 510 520

Number of Doctoral Prof. Degrees Awarded

303 354 326 345 353 380 410 440 470 500 530

Freshman retention rate 79% 79% 80% 79% 78% 78% 79% 81% 82% 83% 85%

6‐year graduation rate 58% 59% 56% 57% 58% 60% 61% 61% 62% 62% 62%

Number of Arizona community college students who transfer to UA

n/a 1,582 1,534 1,621 1,750 1,880 2,010 2,140 2,270 2,400 2,530

Number of Arizona community college transfers who earn a baccalaureate degree

n/a 960 950 991 1,044 1,143 1,242 1,341 1,440 1,540 1,640

Undergraduate Enrollment (fall 21st day)

28,462 28,442 29,070 29,719 30,346 30,592 31,560 32,530 33,500 34,470 35,440

Total Enrollment 37,036 36,805 37,217 38,057 38,767 39,086 40,500 41,900 43,300 44,700 46,100

Research Expenditures (R&D Total)

$535,847 $531,753 $545,869 $556,424 $586,932 $630,000 $663,000 $697,000 $734,000 $773,000 $813,000



Plan Context

The University of Arizona’s Strategic Planning Budget Advisory Committee evaluates and assesses the needs of the state of Arizona and the global community beyond within the context of the strategic goals of the Arizona Board of Regents as outlined in ABOR’s “2020 Vision” as well as within the visionary framework of the “Arizona Higher Education Enterprise: 2010 Strategic Realignment.”

Several parameters continue to guide the UA’s planning:

• Declining state financial support for higher education.

• Population growth that compounds Arizona’s need for an educated citizenry.

• The rich cultural, economic, and educational diversity of Arizona and its students.

• Educational and social imperatives arising from economic and cultural globalization.

• Challenges facing Arizona and the nation in areas such as health care, policy and natural resources.

The UA Strategic Plan reflects the university’s world‐class strengths in interdisciplinary studies and the opportunities afforded by the university’s unique geographic location in the deserts of the U.S. – Mexico border region.

Resource assumptions are central to effective strategic planning, but the nation’s ongoing economic crisis makes these assumptions especially difficult at this time. Although development of the programs and initiatives outlined in this plan rest on a multifaceted financial base, progress on the proposals outlined in this schema will depend in part on the ability of the state to provide adequate funding resources for student enrollment growth while maintaining program quality and breadth. Alternatively, universities will need to explore and evaluate other funding models to finance their operations. In view of decreased state financial support, future tuition rates for undergraduates will likely have to increase in accordance with ABOR policy, and the university has little choice but to pursue differential tuition and/or special program fees for targeted academic programs. As the Arizona University System must internally self‐fund its own financial aid to ensure educational access for students, rather than relying on the state to do so, the UA is ever mindful of the need to ensure adequate aid is made available to students with financial need as it sets tuition rates.



Financial aid provides one of the best examples of how minimal investments in higher education pay both quantifiable and intangible dividends in future earnings and contributions to social and cultural advances for both Arizona and the nation. College educated workers, on average, earn at least a million dollars more than high school graduates over the course of their working lives. Additionally, each dollar of state funding to the University generates a “return on investment” (ROI) of at least seven dollars, (an ROI for the state of 700%), through grants, contracts, and other revenues, by leveraging money that flows directly into the economy of Arizona.

Environmental Scan

The UA Strategic Plan is developed amidst a rapidly changing financial, social, political and cultural context which must be taken into account as the university continues to function and plan for a sustainable future.

Ongoing Economic Crisis

Along with the nation, Arizona continues to experience a severe economic downturn, whose extraordinary impact is felt both directly and indirectly. State funding for the UA has been reduced by more than $100M since 2008. When the current, federally‐mandated “maintenance of effort” requirements attached to Federal ARRA stimulus funding are removed at the beginning of federal fiscal year 2012, the prospects for continued levels of current state financial support are unlikely as Arizona seeks to further reduce its budget deficits. The UA must persist in searching for economic efficiencies, continue its ongoing cutbacks, and work to find and develop new revenue streams.

Students

For Arizona to compete in the 21st century’s globalizing economy, it must provide an educated workforce to potential employers with a dramatic increase in the state’s number of degree holders at the baccalaureate, Masters and PhD levels. Although the 2010 incoming freshman class has greater diversity and is better prepared academically than in previous years, many students still lack the skills and knowledge to be as successful at the university as they should be. Working with the state and its P‐14 educational partners, the UA continues to address improving the quality of P‐14 education to overcome educational challenges and promote lifelong economic prosperity for all of Arizona’s citizens.



The Arizona Higher Education Enterprise and ABOR’s Vision 2020

In ABOR’s “Vision 2020” Strategic Plan (2009), the Arizona Board of Regents set ambitious goals for the expansion of baccalaureate, masters and Ph.D. degrees in Arizona by 2020. Likewise, the new “Arizona Higher Education Enterprise: 2010 Strategic Realignment” outlines continued enrollment growth, expanded online and site‐based educational access, and increased research expectations for the UA, as well as increased land‐grant community engagement, all within a financial climate of reduced resources. To reach more students, increased cooperation with the Community College system, co‐located higher educational opportunities with Community College partners, non‐research intensive, lower cost campuses, multiple modalities of educational delivery including distance learning, and new outreach programs will all be required. Expanding community engagement in a time of dwindling state support requires increased local support and the development of new revenue streams including grants and contracts. Expansion of the UA’s flagship research enterprises requires careful strategic targeting of opportunities and institutional support.

Sustainability

Arizona’s economy has long been founded on continual population growth. Climate change, health issues, increasing concern for the limitations of natural resource extraction, and the state’s intrinsic geographic aridity are all factors that affect the ability to sustain growth and quality of life for not only ourselves, but also future generations. Fortunately, the UA has already positioned itself to lead global research in all of these areas and continues to develop practical, applicable initiatives to solve these societal and environmental problems, leading the way to a sustainable future for Arizona and the planet.



Expanding our Vision, Deepening our Roots

Mission: As a public research university serving the diverse citizens of Arizona and beyond, the mission of the University of Arizona is to provide a comprehensive, high‐quality education that engages students in discovery through research and broad‐based scholarship. The UA empowers its graduates to be leaders in solving complex societal problems. Whether in teaching, research, outreach or student engagement, access and quality are the defining attributes of the University of Arizona's mission.

To advance the mission of the university in alignment with the Arizona Board of Regents’ 2020 Vision and the Arizona Higher Education Enterprise: 2010 Strategic Realignment, the University of Arizona will:

• Increase the number of citizens with the skills and understanding to contribute to economic development and improve the quality of life.

• Advance research that creates new knowledge, enhances education and addresses social, cultural and economic needs.

• Foster civic engagement and improve economic competitiveness.

As a premier land‐grant university, the University of Arizona’s vision is rooted in a university tradition that looks to research and teaching to address public needs, playing a vital role in building a thriving state. The University offers high quality education, excels in creating new knowledge that has worldwide impact, and provides leadership and collaboration to address the challenging issues facing Arizona, the nation, and the world. The University is committed to supporting the ABOR 2020 Vision and the Arizona Higher Education Enterprise: 2010 Strategic Realignment.

As one of the top public research universities in America, the UA is strongly positioned to build on its leadership in advancing research and providing state of the art instruction in areas of vital need. It is also focused on becoming one of the top ten public research universities in the United States within the coming decade. The UA is Arizona’s only member of the Association of American Universities, (AAU), a group of 62 leading American universities distinguished by the breadth and quality of their programs in research and graduate education. Based on the UA’s research expenditures of over $565,292,000 in FY 2009, the National Science Foundation ranked the University of Arizona 18th among U.S. public universities and 26th among all U.S. universities in research funding.



The University’s Strategic Plan: Four Priorities

The University of Arizona is a center of quality and excellence in education and research.

The University of Arizona educates students to be tomorrow’s leaders, live productive lives and contribute to Arizona’s future.

A University of Arizona education must be accessible to all who are academically qualified.

The University of Arizona drives economic development in Arizona and advances the well‐being of our citizenry.

The single most valuable resource at the University of Arizona is its people: students, staff and faculty. This perspective on strategic planning puts people first. The UA’s vision centers on supporting its faculty and staff in their efforts to serve students. The key to attracting and educating the best students, advancing research, and serving public constituencies is in faculty quality and productivity. The university is committed to recruiting and retaining outstanding scholar/teachers and to nurturing them in a climate of academic freedom.

RESOURCE ASSUMPTIONS

Funding and FTE Budget Summary

Dollars in Thousands FY2011 General Funds $344,550.4 Other Appropriated Funds $273,511.4 Other Non‐appropriated Funds $807,531.5 Federal Funds $404,728.1 Program Total $1,830,321.4 Total State FTE Employees 6,784.6



The University of Arizona will strengthen its standing as a preeminent university by:


The University of Arizona is committed to working with its educational partners across the state to redesign higher education and expand educational access and opportunity for Arizona’s population. The University will strengthen Arizona schools by preparing more P‐12 teachers, particularly in STEM fields. With a special concern for underserved areas and areas of critical need such as healthcare, the UA is expanding enrollments and financial aid, including both need and merit‐based funding. Drawing upon state‐of‐the‐art technological support and strategic investments, the UA is improving retention and graduation rates to strengthen its core educational mission.

To support its diverse students, faculty, staff, and guests, the UA is designing courses, programs, and facilities that are accessible to as many people as possible. UA Accessibility Standards continue to be followed, and to improve accessibility for all learners, users, and instructors, the university will continue its emphasis on innovative ways of acquiring and expressing knowledge. The Outreach College is bringing the benefits of a University of Arizona education to those who do not have access to the main campus.

Increasing Achievements in Research, Scholarship, and Creative Expression

The University of Arizona conducts world‐class research that creates knowledge and improves the human condition. To consolidate the university’s standing as one of the top research universities in America, the UA will build on its international leadership in interdisciplinary research. The UA will strengthen research and outreach in ten areas that are critical to Arizona’s future:

Climate, Environmental, Water, and Energy

Sustainability Southwest, Native American, Borderlands, and Latin American Studies

Biosciences and Biotechnology Optics Space Exploration and Observation Creative Arts, Languages, and Language Acquisition Law, Public Policy, and Entrepreneurship Biomedical and Behavioral Health

Youth Development Programs




As the state’s land‐grant university, The University of Arizona is expanding on its tradition of serving the people of the state and nation. The University is an incubator for talent, a laboratory for addressing social needs, and a catalyst for a vibrant state economy and culture. It has rich and varied partnerships with public, business, and non‐profit agencies. These partnerships provide conduits for a wide range of services such as technology transfers and Cooperative Extension programs. The University’s Phoenix Biomedical Campus is expanding education in medicine and the allied‐health fields to meet the needs of the fast growing population of Arizona, including the state’s large retirement community.


The University continues its Transformation Plan, consolidating and realigning departments to strengthen highly ranked programs and improve the efficiency of support functions. Rather than dictating reorganizations, the entire university is engaged in a collaborative effort to increase its productivity at all levels. This approach to strategic renewal builds on the faculty governance structures that are fundamental to all top‐ranked research universities in America. The University is strengthening its operational effectiveness with a major investment in its technological infrastructure through the Mosaic Project.



Educational Excellence 2020 Vision Key Indicators

Educational Excellence Fiscal Years Target

2020 Vision Key Indicators 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Number of Bachelor's degrees awarded

5,613 5,568 5,612 5,914 5,827 6,050 6,280 6,510 6,740 7,000 7,200

Number of Master's degrees awarded

1,446 1,399 1,418 1,503 1,337 1,380 1,430 1,480 1,530 1,580 1,630

Freshman retention rate 79% 79% 80% 79% 78% 78% 79% 81% 82% 83% 85%

6‐year graduation rate 58% 59% 56% 57% 58% 60% 61% 61% 62% 62% 62%

Numbers of Arizona community college students who transfer to UA

n/a 1,582 1,534 1,621 1,750 1,880 2,010 2,140 2,270 2,400 2,530

Number of Arizona community college transfers who earn a baccalaureate degree

n/a 960 950 991 1,044 1,143 1,242 1,341 1,440 1,540 1,640

Undergraduate Enrollment (fall 21st day)

28,462 28,442 29,070 29,719 30,346 30,592 31,560 32,530 33,500 34,470 35,440

Total Enrollment 37,036 36,805 37,217 38,057 38,767 39,086 40,500 41,900 43,300 44,700 46,100

NSSE ‐‐ National Survey of Student Engagement for UA

university system definitions not developed

Cost of attendance of UA as percentage of median family income





A. Prepare Arizona’s Youth and Ensure Access and Opportunity “Our economy in the coming century will depend almost totally on how well we educate our work force… We relish the UA’s role as a gateway to a world of discovery and knowledge available nowhere else. It is true that the best road to a career in such things as planetary science, dance, hydrology, astronomy, pharmacy, or optical sciences is through the UA.” –President Robert Shelton, All College Day Speech, Pima Community College, 8/22/08

The University of Arizona has developed an integrated statewide network of student recruitment, teacher training, and school partnership programs. These programs are aimed at providing all Arizona students and teachers with the skills they need for the twenty‐first century, regardless of their financial needs, geographical location, or physical abilities. The university has also established ambitious and self‐funded aid programs to ensure that financial need will not prevent qualified students from being able to secure the opportunities available to college graduates. Teacher development programs have been expanded in areas of need in the state with multimillion dollar federal grants aimed at improving instruction in STEM fields. These initiatives are fundamental to the leadership role that The University of Arizona plays in the state educational system. Faculty and administrators are vitally involved in state and national efforts to align high school graduation and college entrance requirements to create a seamless pipeline to expand access. These partnerships are grounded in service learning and community outreach programs that involve students, staff, and faculty in visits to every high school in the State of Arizona. The University’s Arizona Assurance financial aid program ensures that all qualified Arizona students will be able to earn a university degree. Central to The University of Arizona’s land‐grant mission is its unwavering goal of making a university education accessible to as many Arizona students as possible. Arizona Assurance gives families earning up to $42,400 per year the opportunity for their sons and daughters to graduate in four years without ever borrowing money. The Arizona Assurance program combines grants and gift funds from outside sources with a federal work‐study job, so that students can cover the costs of tuition, books, housing, and food. The University of Arizona is aggressively seeking private donors to achieve its five‐year goal of nearly doubling endowed undergraduate scholarships by 2014. These resources are vital to expanding access, and to attracting the highly qualified students who are needed to achieve the goal of strengthening the economic competitiveness of the state. The College of Education has over fifty endowed scholarships and additional scholarships are provided by other colleges that partner with Education to prepare teachers.



The University of Arizona is increasing enrollments while expanding the diversity and raising the quality of its incoming classes. In addition, the University will compete for the highest quality graduate students and increase the graduate student population of the University to 25% of total student enrollment. In order to do so, the UA will increase the number and level of graduate scholarships to equal that of its peer institutions.

B. Engage and Graduate Students Who Contribute to the State, Nation and World The University of Arizona is, above all else, a student‐centered university. As the top‐ranked research university in the state, the University has developed an expansive research infrastructure that is a vital resource for undergraduate and graduate instruction. Through hands‐on collaborations with internationally acclaimed scholars, artists, and researchers, students are becoming creative, productive, and engaged members of society. The UA’s array of undergraduate majors engages students in extending the frontiers of knowledge and creativity. At the core of our student‐centered research university is the process of creative expression, critical inquiry, and rigorous research. Working with faculty involved in cutting edge research, students come to understand the power of learning at its very highest levels that only comes through direct experience with the creation of knowledge. The UA is committed to increasing its freshman retention rates by five percentage points, increasing enrollment of students from underrepresented backgrounds, and raising six‐year graduation rates by five percentage points. Building on its successful recruitment programs, the University has achieved the highest retention rates of any university in the state. The University of Arizona has also led the way in retaining more “at‐risk” students.

Ongoing efforts to improve retention are integral to the UA’s coordinated approach to early outreach, recruitment, admissions, articulation, orientation, and advising.



To accommodate rising numbers of students, the University is developing new technologies and retooling programs to expand outreach. Online learning spaces and web‐based collaboration environments are growing exponentially to meet the needs of “digital native” students who have grown up life long with technology as an integral part of their lived experience. The university launched its Outreach College in 2008 to better coordinate distance learning, international programs, cooperative extension, and other community based programs. This coordinated approach to expanding access to courses and majors utilizes the outreach networks developed as part of the University’s land‐grant mission. This mission is enhanced by innovative work with new technologies such as Desire2Learn, iTunesU, digitized library materials, expansive wireless service, state‐of‐art computer classrooms, and grant‐funded partnerships with schools, businesses, and tribes across the state. The University’s efforts to expand recruitment and improve retention are strategically focused on serving the State’s needs in vital areas such as the need for healthcare providers. The University is committed to substantially increasing the numbers of healthcare providers trained in all fields including medicine, nursing, pharmacy, public health, speech and hearing, and nutrition. The University’s online graduate programs in Nursing demonstrate it can establish innovative programs that increase access and facilitate timely degree completion for health professionals. The programs use a cohort model that combines collaborative online learning with limited on‐campus time commitments and targeted field experiences. Through this program, working professionals acquire the expertise needed to play leading roles in rural health, health administration, public health policy, and other areas of vital need to the people of Arizona.

Research Excellence 2020 Vision Key Indicators

Research Excellence

Fiscal Years Target

2020 Vision Key Indicators

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Research Expenditures (R&D Total)

In Thousands

$535,847 $531,753 $545,869 $556,424 $586,932 $630,000 $663,000 $697,000 $734,000 $773,000 $813,000

Number of Doctoral Research Degrees Awarded

395 461 451 479 471 479 487 495 500 510 520

Number of invention disclosures transacted

90 104 101 127 131 145 150 155 160 165 170



Increasing Achievements in Research, Scholarship, and Creative Expression The University of Arizona provides research that improves the human condition in Arizona and beyond. The UA strategic plan focuses on enhancing areas of study in which the university has established its international leadership, especially those that are vital to the future of the state. The UA leads the nation in research and outreach activities in critical areas, including research on sustainable resource development and alternative energies, biosciences, and the cultures and policy challenges of the Southwest. To build on strengths in interdisciplinary research, the university is expanding infrastructure and investing in programs and projects that reach across traditional academic boundaries, while also developing emerging areas deemed worthy of investment. These efforts have been, and continue to be, central to the Transformation Plan.

The University’s interdisciplinary strengths are evident in the nearly $600 million in research funding brought into the state of Arizona by its research centers, which include:

Institute of the Environment

Environmental Research Laboratory,

Drachman Center for Land and Regional Development Studies,

BIO5 Institute for Collaborative Research Arizona Cancer Center Arizona Genomics Institute

Arizona Lunar and Planetary Laboratory Native Nations Institute for Leadership, Management, and Policy

Bureau of Applied Anthropology Arizona Center on Aging Arizona Research Institute for Solar Energy Center for Science and Math Education

Poetry Center McGuire Center for Entrepreneurship

Udall Center for Studies in Public Policy

Arizona Respiratory Center Evelyn F. McKnight Brain Institute

Southwest Center Mexican American Studies and Research Center

Canyon Ranch Center for Prevention and Health Promotion



Research Excellence 2020 Vision Key Indicators



The University of Arizona is nationally and internationally renowned for research in many of these areas and it has widely respected graduate and undergraduate programs in many others. For example, the University was the first to offer a PhD in American Indian Studies, and its interdisciplinary strengths in this area led to its creating a joint MA and JD degree with the James E. Rogers College of Law.

Research in these interdisciplinary areas is yielding innovations in graduate and undergraduate education. Our strengths in Mexican‐American studies help to create the environment that led Hispanic Business magazine to identify the Arizona College of Medicine and the James E. Rogers College of Law as among the top ten graduate programs for Hispanics. Research centers foster business and government partnerships that provide internships and employment opportunities for students as well as conduits for the transfer of technological and scientific innovations. Cultural centers such as the Center for Creative Photography and the Poetry Center enrich our students’ educational experience and offer cultural

resources for the city, state, and nation. Other services to Arizona are provided by research centers in math and science, which have yielded millions of dollars in federal grants to prepare teachers and involve student researchers in the health sciences.

These interdisciplinary clusters have also been targeted for strategic development because they are vital to the needs of the state and nation. The University’s strategic planning in biosciences built on the Battelle Memorial Institute’s Arizona’s Biosciences Roadmap of private sector, market‐driven trends, which identified Arizona’s research universities as central to this economic sector. This and related studies focused on Information Technology as a key part of economic development. The financial benefits of the University’s research are but one reference point on how to leverage university strengths to achieve the goal of becoming one of the top ten public research universities in America.

UA Poetry Center



Community Engagement / Workforce Impact 2020 Vision Key Indicators

Community Engagement/ Workforce Impact

Fiscal Years Target


Impact of community engagement activities


Total expenditures related to service activities (Public Service Expenditures)

In Thousands

$63,275 $65,274 $71,512 $69,843 $70,900 $72,000 $73,100 $74,200 $75,300 $76,800 $78,300

Number of Doctoral Prof. Degrees Awarded

303 354 326 345 353 380 410 440 470 500 530

Number of degrees in high demand fields





The University of Arizona serves the people of Arizona through an expansive network of programs that bring research to bear on vital social needs. Many programs are involved with transferring technological and scientific innovations in areas central to the high tech economy. Others disseminate research to improve public health, agriculture, and community development. Still others strengthen teacher development, school curricula, and student recruitment to expand the pipeline that is fundamental to the ABOR 2020 Vision and Arizona Higher Education Enterprise.

These Community Engagement and Workforce programs are supported by federal and state grants, funding from businesses and civic organization, and partnerships with state agencies and local schools. These collaborations channel millions of dollars into Arizona’s schools, businesses, and communities. Millions more are generated by the cultural, artistic, and athletic programs that the University offers. However, those revenues are but a part of the contributions of those programs. They serve as an incubator and magnet for talent. They forge partnerships among public, private and non‐profit sector organizations locally and throughout Arizona. These networks follow in the tradition of the University’s Cooperative Extension programs that have facilitated the transfer of scientific research throughout Arizona since its territorial days.

These networks disseminate research and technological innovations to strengthen the economy of Arizona and meet the needs of its people, while also advancing innovation within undergraduate education. One area where the University is working to transfer its world‐class research expertise is the patenting and licensing of medical technologies. These innovations have led to the creation of new businesses that are working on practical applications generated by diverse research in areas including optics, physics, and astronomy, where the University has established its international preeminence. For example, researchers at the University concerned with investigating the dust in outer space discovered particles that led to an entirely new branch of carbon chemistry that is currently being commercialized through an international partnership. Such practical applications often have a direct impact on instruction at the University, not just on work in laboratories but also in classrooms. For example, interdisciplinary researchers in the UA’s top‐ranked business and math education programs have developed models for teaching math with a half‐million dollar federal grant to improve math education, and these materials are now being marketed internationally.



Programs at the Phoenix Biomedical Campus are exemplary models of the convergence of innovations in education, research, and outreach, which are of strategic importance to the people of Arizona. The University of Arizona College of Medicine—Phoenix and the UA’s College of Pharmacy and Mel and Enid Zuckerman College of Public Health in Phoenix are bringing internationally respected research and healthcare expertise to Arizona’s largest population center. These, alongside our growing health sciences programs in Tucson and our Telemedicine Program, mean expanded health care knowledge is delivered and shared throughout the State.

These efforts have been supported in part by The Technology Research Infrastructure Fund (TRIF). TRIF has helped to fund the development of a clinical research center and the Health Research Alliance Arizona consortium, which has submitted an application for a one‐of‐a‐kind state‐wide NIH Clinical Translational Science Award (CTSA). The CTSA will knit together the strengths of the state’s universities and medical centers to provide state of the art medical care to Arizona’s citizens. Improving clinical care through research on medical technologies and the health sciences is but one area where research at the state universities is having a broad impact on the daily lives of people across the state of Arizona.



Productivity 2020 Vision Key Indicators

Productivity Fiscal Years Target


Number of bachelor's degrees awarded per 100 FTE students

20.5 20.3 20.1 20.7 19.6 20.0 20.4 20.8 21.2 21.6 22.0

Total educational expenditures per degree awarded

$56,000 $59,500 $63,300 $61,700 $62,600 $63,500 $64,500 $65,500 $66,500 $67,800 $69,200

Comprehensive financial index university system definitions not developed




“The time has come to take bold action…” President Robert Shelton, September, 2008

The entire University community is engaged in ongoing review of the University’s organization and operations that has strengthened its core research, teaching, and outreach mission. The Transformation Plan is consolidating and realigning programs to adapt to dynamic changes in available resources and strategic priorities.

A coordinated process of strategic renewal. Strategic combining of units continues to improve the efficiency of support operations and eliminate overlapping and under‐enrolled programs of study. Many combined units are better positioned to advance interdisciplinary research and improve high‐demand programs in areas of strategic need. The Transformation Process, guided by the areas of emphasis set out in the University’s Strategic Plan, has resulted in the creation of the Colleges of Letters, Arts and Sciences (CLAS), better facilitating innovative instruction and scholarship by linking the Colleges of Fine Arts, Humanities, Sciences and Social and Behavioral Science. Interdisciplinary Schools combining the efforts of previously separate units have emerged in several Colleges, including the School of Anthropology, the School of Asian, Classical and European Studies, the School of Earth and Environmental Sciences, the School of Geography and Development, the School of Government and Policy, the School of Information Sciences, Technology and Arts, the School of Landscape Architecture and Planning, the School of Mind, Brain and Behavior, the School of Sustainable Engineered Systems, and the School of Plant Sciences. These Schools enhance the university’s intellectual capital while more effectively leveraging limited financial capital.

Shared Governance. Shared governance is fundamental to the decision making process at any great research university. Engaging outstanding researchers and dedicated teachers with the scholarly expertise and understanding of student learning as a community is so critically fundamental to effective strategic planning. In this context, the Strategic Planning and Budget Advisory Committee has formed three Task Force Work Groups: Assessment and Evaluation, Strategic Budgeting and Long Term Strategic Planning to further this goal. The UA is widely engaged in regular discussions with central administration, faculty, students and the community around the major issues facing the University of Arizona. All of these stakeholders collaboratively contribute to generating a range of possible actions, and to evaluating the benefits and costs of those actions. It will communicate with the broader campus community and engage the community in meaningful discussion of the future shape of the University and all its activities.



Productivity 2020 Vision Key Indicators



Improving business operations. The UA is engaged in a multi‐year replacement of critical foundational administrative IT systems to make business operations more flexible, responsive, and secure. The Mosaic project is replacing all four of the University major administrative systems: financial, research administration, student, and human resources/payroll. Substantial investment in Business Intelligence is expanding the availability of business information to managers and executives, enabling better, data‐driven strategic business planning. These investments support a responsive, productive, and efficient organization that more effectively focuses on its core mission.

Sustainability. The President’s Advisory Council on Environmental Sustainability, the Office of Sustainability and the student‐led Green Fund Committee are only part of the University’s commitment to creating a sustainable campus. A $3.1 million dollar grant from the U.S. Department of the Interior to establish the Southwest Climate Science Center at UA, headed by Nobel Prize winning Principal Investigator Jonathan Overpeck, places the University at the forefront of global research on climate change. Projects involving solar energy generation, water conservation, and organic waste composting reflect our commitment to not only studying sustainability but also to living it in practice. The University’s partnership with APS Energy Services to mount photovoltaic and solar thermal collectors atop campus buildings to generate either electricity or hot water for the buildings where they are located not only promotes conservation, but saves money. The partnership allows the project to be built without major capital outlay on the part of the University. The approximately 500 kilowatts of electricity generated on campus will reduce the UA’s carbon footprint by an estimated 2,200 metric tons of carbon dioxide each year. The long‐term goal is for the University to generate 40 percent of its own power.



Strategic Plan Performance Measures and Costs 1. Expanding Access and Enhancing Educational Excellence

A. Prepare Arizona’s youth and ensure access and opportunity

Fiscal Years Target

Measures Breakouts 2006 2007 2008 2009 2010 2016 Student Enrollment Head Count 37,036 36,805 37,217 38,057 38,767 46,100

The number of K‐12 schools served by early academic outreach (EAO) that have more than 50% of its student population on free/reduced lunch programs

46 41 53 50 84 50

1.A.1. Certify 5% more teachers each year, targeting underserved areas first, by developing alternative delivery models and hiring additional faculty

Number of Graduates from Teacher Cert. Programs

Elementary 232 208 185 134 146 125

STEM 44 45 26 33 41 50

1.A.2. Increase need and merit‐based financial aid through the precedent‐setting Arizona Assurance program and by doubling the number of endowed scholarships for undergraduates

Net Price of Total College Costs for Low‐income Students

Annual Tuition & Fees $4,498 $4,766 $5,048 $5,542 $6,842 $11,400

Total Gift Aid $7,409 $7,176 $7,100 $8,863 $10,988 $15,907

Gift Aid Above Tuition & Fees

$2,911 $2,410 $2,052 $3,321 $4,146 $4,507

Percentage of Demonstrated Need

Met n/a 63% 60% 63% 64% 68%

Number of New Freshman in Arizona Assurance Program

n/a n/a n/a 598 772 700

Median Student Indebtedness Undergrad Resident $16,826 $17,852 $17,374 $17,411 $17,919 $21,000

Non Res $19,385 $19,491 $20,324 $23,056 $23,869 $28,700 Total $17,392 $18,241 $18,025 $18,712 $19,375 $23,400

Graduate Total $36,444 $39,809 $38,500 $39,445 $41,041 $50,600Number of Endowed Scholarships n/a n/a 1,116 1,182 1,200 1,320



1. Expanding Access and Enhancing Educational Excellence A. Prepare Arizona’s youth and ensure access and opportunity

Fiscal Years Target

Measures Breakouts 2006 2007 2008 2009 2010 2016

1.A.3. Increase undergraduate and graduate enrollments to reflect the growth and diversity of the state

Student Diversity % Minority 25% 27% 28% 29% 30% 37%

Number of National Scholars National Merit Scholars 315 333 321 313 311 380

National Hispanic

Scholars n/a n/a 145 185 244 300

National Achievement n/a n/a 14 22 22 30

Flinn Scholars 57 55 46 44 46 53

Median Academic Index 182.1 176.2 179.2 178.1 182.0 185.6

ACT/SAT Range SAT Verbal 500‐620 490‐600 480‐600 480‐600 480‐600 494‐626

SAT Math 500‐630 500‐630 490‐620 500‐620 490‐620 502‐632

ACT Composite 21‐26 20‐26 21‐26 21‐26 21‐27 22‐28

8,574 8,363 8,147 8,338 8,421 9,340

Average Graduate Assistant/Associates Half‐time Net Stipend

$14,538 $15,345 $15,246 $15,467 $15,472 $17,010

Percent of First‐year, Full‐time PhD Students Fully Funded

74% 74% 74% 75% 75% 78%

Number of Undergraduate Freshman and Transfer Applications

Freshman 17,903 16,609 21,199 22,544 24,756 27,946

Transfer 3,495 4,179 4,250 4,473 4,633 5,812

1.A.4. Improve our ability to serve that growing student population by providing integrated state‐of‐the‐art technological support services (See UA IT Strategic Plan)



B. Engage and graduate students who can contribute to state, nation and world

Fiscal Years Target

Measures Breakouts 2006 2007 2008 2009 2010 2016 Number of Degrees Awarded Bachelors 5,613 5,568 5,612 5,914 5,827 7,200

Masters & Specialist 1,446 1,399 1,418 1,503 1,337 1,630

Doctoral Prof. 303 354 326 345 353 530

Doctoral ‐ Research 395 461 451 479 471 520

Total 7,757 7,782 7,807 8,241 7,988 9,880

1.B.1. Educate students to become creative, productive and engaged members of society by providing core skills, specialized expertise and an interdisciplinary understanding of how to evaluate, integrate, and generate new knowledge

Undergraduate Participation in Research n/a 62% 69% 74% 68% 75%

Undergraduate participation in internships, field experience, or clinical assignments

64% 59% 62% 70% 64% 68%

Undergraduates planning on graduate studies n/a 67% 63% 64% 66% 71%

Undergraduates planning on graduate studies who feel they have been prepared to do so

94% 92% 93% 93% 94% 95%

PhD Completion Rates 6‐year 45% 46% 47% 48% 49% 55%

Number of Students in Study Abroad and Exchange Programs 1,611 1,777 1,943 1,980 2,000 2,600

Number of International Students UG 834 784 805 935 980 2,030

Grad 1,612 1,513 1,456 1,416 1,370 1,700

Total 2,446 2,297 2,261 2,351 2,350 3,730




Fiscal Years Target

Measures Breakouts 2006 2007 2008 2009 2010 2016 1.B.2. Improve retention for freshman and sophomores and 6‐year graduation rates overall and for traditionally

underrepresented students by 5%. National Survey of Student Engagement (NSSE is administered every 3 years)

Level of Academic Challenge

‐0.05 0.10 0.25

Effect size measures compare UA seniors to public high research institutions. An effect size of .2 is small, .5 is moderate and .8 is large. A positive sign indicates the UA's mean is higher than its peers.

Active and Collaborative Learning

0.09 0.07 0.25

Student‐Faculty Interaction

0.00 0.12 0.25

Enriching Educational Experiences

0.00 0.13 0.25

Supportive Campus Environment

0.00 0.01 0.25

Undergraduate Graduation Rates 4‐Year Entering Cohort

Fall 2001

Fall 2002

Fall 2003

Fall 2004

Fall 2005

Fall 2011

Total 33% 32% 32% 33% 36% 38%

6‐Year Entering Cohort

Fall 1999

Fall 2000

Fall 2001

Fall 2002

Fall 2003

Fall 2009

Total 58% 59% 56% 57% 58% 62%

Undergraduate Freshman Retention Rate

Entering Cohort Fall 2004

Fall 2005

Fall 2006

Fall 2007

Fall 2008

Fall 2014

Resident 79% 80% 80% 79% 81% 83%

Non‐resident 79% 79% 80% 77% 73% 79%

Total 79% 79% 80% 79% 78% 85%




Fiscal Years Target Measures Breakouts 2006 2007 2008 2009 2010 2016

1.B.3. Enrich the educational environment by recruiting and retaining a diverse faculty with outstanding achievements

T/TE Faculty Headcount % Female 30% 30% 31% 31% 32% 34%

% Minority 14% 15% 16% 17% 18% 21%

Total 1,590 1,621 1,615 1,619 1,585 1,930 UA Faculty Salary Market Comparisons

Full 92% 92% 92% 90% 91% 97%

Associate 92% 94% 95% 93% 93% 97%

Assistant 94% 95% 94% 89% 90% 96%

1.B.4. Expand access to courses and majors to keep pace with planned enrollment growth

Enrollment in Web/Interactive TV, Evening/ Weekend and UA South courses

UA South (exclusive plus co‐enrolled)

865 557 525 623 861 1,252

Web/Interactive TV 1,457 2,264 2,350 4,092 4,700 5,480

Evening/ Weekend 1,267 1,664 1,649 1,698 3,479 3,580

1.B.5. Respond to the State's shortages in vital areas such as health care

Number of Health Provider Degrees Awarded

Nursing Bachelors 154 151 164 178 194 265

Pharmacy PharmD 66 74 76 78 84 130

Medicine MD 91 119 104 123 108 171

INCREMENTAL COSTS; CONSTANT/NOMINAL DOLLARS; IN THOUSANDS (Expanding Access and Enhancing Educational Excellence)

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 General Funds 26,976.7 16,359.5 17,504.6 18,730.0 20,041.0

Other Appropriated Funds 0.0 16,273.9 17,413.1 18,632.0 19,936.2

Building Renewal 25,723.2 26,237.7 26,762.3 27,297.6 27,843.5

Other Non‐appropriated Funds 12,339.6 7,514.5 8,623.1 9,796.7 12,049.9

Federal Funds 0.0 4,856.7 5,099.8 5,354.5 5,622.3

Strategic Issue Total Funds 65,039.5 71,242.3 75,402.9 79,810.8 85,492.9

Total State FTE Employees 314.5 360.0 389.1 420.1 461.2



2. Increasing Achievements in Research, Scholarship, and Creative Expression

Fiscal Years Target

Measures Breakouts 2006 2007 2008 2009 2010 2016 Total Research and Development (R&D) Expenditures

In Thousands $535,847 $531,753 $545,869 $556,424 $586,932 $813,000

2.1. Lead the nation in research and outreach activities that are critical to our state’s future

Federal R&D Expenditures In Thousands $301,619 $269,941 $277,897 $287,889 $308,290 $417,882

Total R & D Expenditures per FTE TTE faculty

$345,659 $336,303 $348,182 $352,618 $371,370 $456,000

Faculty Awards 18 22 18 n/a n/a 26

Number of Post Doctorates 384 393 401 409 418 467

Number of National Academy Members

31 30 27 n/a n/a 36

Faculty Diversity (T/TE) % Female 30% 30% 31% 31% 32% 34%

% Minority 14% 15% 16% 17% 18% 21%

UA Faculty Salary Market Comparisons

Full 92% 92% 92% 90% 91% 97%

Associate 92% 94% 95% 93% 93% 97%

Assistant 94% 95% 94% 89% 90% 96%

Graduate and First Professional Total Enrollment

8,574 8,363 8,147 8,338 8,421 9,340

2.2. Build on our national leadership in interdisciplinary and collaborative research

Faculty Membership in Graduate Interdisciplinary Programs (GIDPs)

557 599 649 768 800 850



INCREMENTAL COSTS; CONSTANT/NORMAL DOLLARS; IN THOUSANDS (Increasing Achievements in Research Scholarship and Creative Expression)

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 General Funds $11,240.2 $6,816.5 $7,293.6 $7,804.2 $8,350.5

Other Appropriated Funds $0.0 $957.3 $1,024.3 $1,096.0 $1,172.7

Building Renewal $13,814.3 $14,090.6 $14,372.3 $14,659.8 $14,953.0

Other Non‐appropriated Funds $9,597.5 $5,844.8 $6,706.7 $7,619.6 $9,372.1

Federal Funds $0.0 $10,523.0 $11,048.9 $11,601.5 $12,181.6

Strategic Issue Total Funds $34,652.0 $38,232.2 $40,445.8 $42,781.1 $46,029.9




3. Expanding Community Engagement and Workforce Impact

Fiscal Years Target


3.1. Foster the transfer of technological and research innovations

Public Service Expenditures In Thousands $63,275 $65,274 $71,512 $69,843 $70,900 $78,300

Number of Invention Disclosures Total 90 104 101 127 131 170

Number of Unique Inventions Disclosures Resulting in Major Agreements

There is a two to three year lag in disclosures resulting in major

agreements. The most recent years are not fully reflective of future activity.

71 68 41 54 63 119

Percentage Resulting in Major Agreements 79% 65% 41% 43% 48% 70%

Number of Office Technology Transfer and Entrepreneurial Startups (approximately 75% are domiciled in Arizona)

Office Tech Transfers 3 3 6 7 6 10

Entrepreneurial Startups

5 5 8 6 7 11

Number of Major Agreements with Breakouts for Licenses and Options

Total 43 38 47 63 77 96

Licenses & Options 26 28 38 43 64 81



3. Expanding Community Engagement and Workforce Impact

Fiscal Years Target


3.2. Provide research‐based services directly to the people of Arizona

Volunteer Hours Generated 123,246 98,008 118,602 125,000 159,998 170,000

Number of People Served by Cooperative Extension 209,815 254,525 309,619 315,000 333,812 325,000

Number of People Served by Telemedicine Clinical Consultations n/a 158,209 210,442 174,336 126,408 135,000

3.3. Build our endowment to improve our ability to provide Arizona with the best people and programs

Endowment Rate of Growth 19% 14% ‐3% ‐16% 10% 7%

Endowment Assets In Thousands $466,652 $532,351 $518,709 $436,603 $480,238 $743,631

Annual Giving In Thousands $121,020 $143,957 $153,960 $141,286 $148,091 $176,828

INCREMENTAL COSTS; CONSTANT/NOMINAL DOLLARS; IN THOUSANDS (Expanding Community Engagement and Workforce Impact)

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

General Funds $4,496.1 $2,726.6 $2,917.4 $3,121.7 $3,340.3



Other Non‐appropriated Funds $4,113.2 $2,504.9 $2,874.3 $3,265.6 $4,016.6

Federal Funds $0.0 $3,844.8 $4,037.2 $4,238.9 $4,451.0





4. Improving Productivity and Increasing Efficiency

Fiscal Years Target

Measures Breakouts 2006 2007 2008 2009 2010 2016 Bachelor’s Degrees per 100 FTE Students

20.5 20.3 20.1 20.7 19.6 22.0

Average number of years taken to graduate for students who began as freshman

4.7 4.6 4.6 4.5 4.5 4.4

Percentage of Invention Disclosures resulting in Major Agreements There is a two to three

year lag in disclosures resulting in major

agreements. The most recent years are not fully reflective of future activity.

79% 65% 41% 43% 48% 70%

Full Educational Cost per Degree $56,000 $59,500 $63,300 $61,700 $62,600 $69,200

Undergraduate Graduation Rates 4‐Year Entering Cohort

Fall 2001

Fall 2002

Fall 2003

Fall 2004

Fall 2005

Fall 2011

Total 33% 32% 32% 33% 36% 38%

6‐Year Entering Cohort

Fall 1999

Fall 2000

Fall 2001

Fall 2002

Fall 2003

Fall 2009

Total 58% 59% 56% 57% 58% 62%

Undergraduate Freshman Retention Rate Entering Cohort

Fall 2004

Fall 2005

Fall 2006

Fall 2007

Fall 2008

Fall 2014

Resident 79% 80% 80% 79% 81% 83%

Non‐resident 79% 79% 80% 77% 73% 79%

Total 79% 79% 80% 79% 78% 85%



INCREMENTAL COSTS; CONSTANT/NOMINAL DOLLARS; IN THOUSANDS (Improving Productivity and Efficiency)

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

General Funds $2,248.0 $1,363.2 $1,458.8 $1,560.7 $1,670.0



Other Non‐appropriated Funds $1,371.0 $835.0 $958.1 $1,088.5 $1,338.9

Federal Funds $0.0 $1,011.8 $1,062.4 $1,115.5 $1,171.3





Appendices



Peers' SourceMedian UA Peers' UA Peers' 2016 2020

1. Expanding Access and Enhancing Educational Excellence38,767 45,185 2% 4% 4% 7% 46,100 51,500 IPEDS

$8,237 $9,418 20% 13% 49% 18% $11,400 $13,900 AAUDE

$18,712 $19,976 4% 1% 3% 5% $23,400 $26,000 CDS

1,156 n/a 50% n/a 93% n/a 700 700 UA-OIRPS

Student Diversity (2010) 30% 23% 5% 3% 10% 6% 37% 41% IPEDS

5,914 7,220 5% 2% 6% 3% 7,200 8,100 IPEDS

1,502 2,157 6% 5% 6% 10% 1,630 1,800 IPEDS

345 533 6% 4% -3% -3% 530 620 IPEDS

479 680 6% 4% 4% 4% 520 550 IPEDS

8,240 11,157 6% 3% 6% 5% 9,880 11,070 IPEDS

2. Increasing Achievements in Research, Scholarship, and Creative Expression32% 29% 3% -2% 3% -2% 34% 36% IPEDS

18% 20% 6% 12% 13% 19% 21% 22% IPEDS

$117,263 $128,347 2% 1% 4% 5% 97% 100% AAUP

$79,645 $85,880 0% 0% 1% 4% 97% 100% AAUP

$67,954 $75,161 2% 1% 1% 5% 96% 100% AAUP

8,421 11,332 1% 3% 3% 3% 9,340 10,000 IPEDS

$556,292 $646,011 2% 11% 5% 9% $813,000 $998,000 NSF

Faculty Awards (2008) 18 22 -18% -4% 0% -8% 26 30 Center

27 32 -10% 0% -13% -6% 36 40 Center

# of Post Docs. (2007) 393 502 2% -1% 15% -1% 467 500 Center

3. Expanding Community Engagement and Workforce Impact101 181 -3% 10% 12% 16% 170 185 UA-VPR

$69,843 $126,427 -2% 17% 7% 23% 78,300$ 84,800$ IPEDS

38 43 36% 0% 46% -14% 81 89 UA-VPR

333,812 n/a 8% n/a 31% n/a 325,000 325,000 UA-Ag.

$518,709 $1,678,963 -3% 6% 11% 25% $743,631 $956,995 Center

$141,386 $202,574 -8% -2% -2% 11% $176,828 $199,022 VSE

4. Improving Productivity and Increasing Efficiency 20 24 0% 2% -1% 2% 22 22 IPEDS

$61,700 $69,000 -3% 5% 4% 7% 69,200$ 74,900$ IPEDS

4-Year Cohort Entering Fall '05 Fall '05 Fall '11 Fall '15

36% 51% 38% 40%

6-Year Cohort Entering Fall '03 Fall '03 Fall '09 Fall '13

` 58% 81% 62% 65%

Actual Cohort Entering Fall '09 Fall '09 Fall '14 Fall '18

80% n/a -1% n/a 0% n/a 83% 86%

75% n/a 3% n/a -3% n/a 79% 83%

78% 92% 0% 0% -1% 0% 85% 90%

estimated estimated estimated estimated estimated estimated

# of Degrees Awarded

(2009)

Bachelors

Masters & Specialist

The University of Arizona - Strategic Plan Scorecard

Measure (Benchmark Fiscal Year) UA1 Year Change 2 Year Change Targets

Student Enrollment Head Count (2010)

Annual UG Tuition & Fees (2011)

Median Student Indebtedness Total (2009)

# of AZ Assurance New Freshman (2011)

% Minority

Doctoral - Professional

PracticeDoctoral -

Research/ScholarshipTotal

Faculty Diversity (T/TE)

(2010)

% Female

% Minority

Endowment Assets, in $1,000s (2008)

UA Faculty Salary Market

Comparisons, Weighted

Average Salaries (2010)

Full

Associate

Assistant

Grad. & First Prof. Total Enrollment (2010)

Total R&D Expenditures, in $1,000s (2009)

# of Nat'l Academy Members (2008)

# of Invention Disclosures (2008)

Public Service Expenditures, in $1,000s (2009)

# of Major Agreements for Licenses & Options (2008)

# of People Served by Coop. Ext. (2010)

Annual Giving, in $1,000s (2008)

Bach. Degrees per 100 FTE Students (2009)

Full Educational Cost per Degree (2009)

Undergraduate Graduation

% Rates (2010)6%

Note: Arizona Board of Regents (ABOR) peers include: Michigan State Univ, Ohio State Univ, Pennsylvania State Univ, Texas A&M Univ, Univ California-

Davis, Univ California-Los Angeles, Univ Florida, Univ Illinois-Urbana Champaign, Univ Iowa, Univ Maryland-College Park, Univ Minnesota-Twin Cities,

Univ North Carolina-Chapel Hill, Univ Texas-Austin, Univ Washington, Univ Wisconsin-Madison

13% 9% IPEDSTotal

2% 0% 4% 3% IPEDSTotal

1%

Freshman Retention %

Rate (2011)

IPEDS

Resident

Non-resident

Total



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The University of Arizona August 2010FACILITY CODE INDEX MAP

Demolish

Note: Map background showsan illustrative build-out concept of campus development (theComprehensive Campus Plan - ABOR 2009). Facility Code Index is the deferredmaintenance dollars divided by the total building replacement cost.These percentages are basedon the most current available data.

def_maint_bldgs_2010_Q3v3fci

<5% (Good)5-10% (Fair)>10% (Poor)

Facility Code Index



Northern Arizona University, part of the Arizona University System,

embraces the AUS vision of being a “top-performing

state university system, nationally recognized for

excellence in academic and research pursuits that

support and stimulate a growing vibrant economy

and a high quality of life for Arizonans.”

FiveFive--Year Strategic PlanYear Strategic Plan FY 2012FY 2012--2016 2016

Draft, November 1, 2010Draft, November 1, 2010

Northern Arizona University is a vibrant and innovative community dedicated to preparing

citizens and leaders to meet the challenges of a global society.

Arizona University System GoalsArizona University System Goals Educational Excellence “To be nationally competitive in the percentage of Arizona’s citizens with a high-quality bachelor’s degree by providing affordable access through a well-coordinated and aligned system.”

Research Excellence “To increase the research capabilities and performance of the Arizona University System to a level of competitive prominence with peer rankings of top American research universities.”

Workforce and Community “To utilize research, economic development, community engagement, and service contributions of the universities to create and disseminate knowledge to strengthen Arizona’s economy and improve Arizona’s quality of life.”

Productivity “To maximize the use of existing resources so that the system can produce greater numbers of degrees and with greater efficiency of resources per degree without sacrificing quality.”

Arizona University System MissionArizona University System Mission

• To increase the educational attainment of Arizona citizens by producing enough high-quality university degrees for the state to be nationally competitive by the year 2020.

• To increase the prominence of the system’s research enterprise so that it can contribute to the knowledge economy and improve the quality of life in Arizona.

• To provide the educated workforce needed to fill shortages and to stimulate

demand for higher paying jobs in Arizona.

Learning-centered university

Student access, progress, and affordability

Vibrant sustainable community

Global engagement

Inclusion, civility, and respect

Commitment to Native Americans

Innovative, effective, and accountable practices

To provide an outstanding undergraduate residential

education strengthened by research, graduate and

professional programs, and sophisticated methods of

distance delivery.

EXCELLENCE IN EDUCATION Offer a rigorous, high quality education to all students

STUDENT SUCCESS Place learner needs at the center of our academic and

service planning, policies, and programs

EDUCATIONAL ACCESS Provide all qualified students with access to higher

education

DIVERSITY Achieve multicultural understanding as a priority of

educational and civic life

INTEGRITY Operate with fairness, honesty, and the highest ethical

standards to sustain a community of trust

CIVILITY Support a civil, engaging, and respectful campus climate

ENVIRONMENTAL SUSTAINABILITY Model environmentally responsible and sustainable operations and education

MISSION

STRATEGIC GOALS

VALUES


Item #2cPage 1 of 14

2

ISSUE #1 ENROLLMENT GROWTH FUNDING

ISSUE #2 ARIZONA ARCHITECTURE

ISSUE #3 ACHIEVING VISION 2020 GOALS

Strategic Issues FY 12Strategic Issues FY 12--FY 16FY 16

Funding and FTE Budget Summary FY 2011

General Fund $133,118,100

Other Appropriated Funds 81,510,100

Other Non-appropriated Funds 214,494,900

Federal Funds 65,270,100

FTE Positions 1988.98



3

13,4

72

20

,19

4 27

,00

0

32

,00

0

5,597

5,010

6,000

6,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2005 2006 2007 2008 2009 2010 2016 2020

Student Enrollment

ProjectedActual

Background and Issue Statement

Northern Arizona University has experienced rapid enrollment growth for the past five years, responding to the state and Arizona Board of Regents’ goals to increase the number of students graduating with baccalaureate degrees. The university has grown by more than 4,600 students or 22 percent from fall 2006 to fall 2010, and now totals 25,204 students. The large influx of students requires hiring new instructional faculty, and academic and student support staff to ensure the students have classes in which to enroll, accessible advisors, and the whole range of services. For fiscal year 2010-11, Northern Arizona University received no support for the enrollment growth already experienced.

Enrollment growth funding is the commitment the state has traditionally made to provide basic instructional support for students. Although the university recognizes the current economic constraints facing the state, this is the basic formula that allows the university to provide a quality experience consistent with the Constitutional mandate for “the instruction furnished (to) be as nearly free as possible.”

STRATEGIC ISSUE #1

ENROLLMENT GROWTH FUNDING

EDUCATIONAL EXCELLENCE: Increase educational attainment of Arizona citizens through enhanced access to

quality educational experiences.

STRATEGY: Obtain enrollment growth funding

Graduate ■ ■

Undergraduate ■ ■



4

Base Resource Assumptions

FY12 FY13 FY14 FY15 FY16

Enrollment Growth Core Funding

$33,289,800 Enrollment Growth/ New Funding Formula



5

For Arizona to enhance its social, economic, cultural and technical transformation in ways conducive to success, the state universities will need to make significant contributions to a new state profile by 2020. Increasing the number of awarded baccalaureate degrees by addressing Arizona’s key higher education pipeline issues—undergraduate enrollment, freshmen retention and graduation rates, and community college transfer rates—will be critical to Arizona’s competitiveness.

To meet the ambitious goals of i m p r o v i n g A r i z o n a n s ’ educational attainment in an uncertain and challenging economic environment, a new framework that maximizes the unique strengths in each university’s discovery, teaching, learning, and service was developed.

As the Arizona University System has not operated as a classic system and as the world of 2010 is very different than the era in which the great university systems emerged (California, Maryland, North Carolina, New York) in the last 50 years or so, we have by historical setting and context emerged three highly adaptive, efficient and unique higher education institutions.

At the September 2010 Arizona Board of Regents meeting the three state universities presented their strategic realignment plan—a plan that does not draw from the 1960 model of university systems but rather leap-frogs that evolutionary stage and envisions the university as an enterprise manifesting itself through three unique semi-autonomous enterprise platforms. In this model each of Arizona’s universities is assumed to be a differentiated and unique institution with a unique assignment and approach to education that helps the system as a whole to meet its goal. In the future, the NAU enterprise has a unique and challenging state-wide assignment and needs to move in several directions. These new directions are summarized in both the enterprise chart and the list of strategic needs:

STRATEGIC ISSUE #2

ARIZONA ARCHITECTURE

WORKFORCE AND COMMUNITY: Meet the needs of the local communities and improve state’s competitive

position by delivering high-demand programs through an effective and efficient network of educational

enterprises.



6

To significantly impact baccalaureate degree production in near term the state should invest in initiatives designed to engage greater proportion of adult populations in pursuing four-year degree programs and improve student progress toward graduation. Specifically, Northern Arizona University requests targeted investments in:

NAU-Yavapai’s highly structured baccalaureate degree programs and enrollment management strategies that provide the most cost-effective four-year degrees in Arizona: $1 million

Northern Arizona University Yavapai opened its doors this fall providing a lower-cost university education option to students. As a start-up venture, it will take several years to build enrollment to the level of financial viability. The growth path towards this point of viability will be quickened with resources to fully develop program offerings and student support services responsive to community and state needs. With very structured programming, integrated faculty resources, hybrid delivery, and a limited array of non-academic services, this regional college model will educate students at a much lower cost per full-time equivalent once the enrollment reaches a critical mass. The requested state funding would be used for anchor faculty and staff who will lead the development and coordination of this very different model of postsecondary education on an expedited timeline.

Statewide expansion of joint admissions programs as a means for community college students to streamline their path toward baccalaureate education and a strategy to build college-going culture in rural and other underserved communities: $1 million

The university has entered into joint admissions agreements with 15 Arizona community college partners. One of the key benefits of the seamless joint admissions programs, in addition to cultivating demand for baccalaureate degrees, is to uncover discrepancies between the associate’s degree and corresponding baccalaureate degree curricula. Super advisors—professionals cross-trained in both career and academic advising for both community college and university programs—

provide customized academic advising that, if followed, ensures student’s completion of a baccalaureate degree at minimum cost and time to degree for a student. This budget request would support 15 advisors and one coordinator for this initiative.

Projected

Fiscal Year 2011 2012 2013 2014 2015 2016 2020

NAU-Yavapai Headcount 100 200 450 650 850 1,000 1,500



7

Base Source Assumptions

FY12 FY13 FY14 FY15 FY16

Northern Arizona University Strategic Realignment

$3,000,000 Funding formula for new entities

Core academic programs and student support services at NAU-Yuma: $1 million According to the 2006 Educational Needs Report published by the Lumina Foundation, Yuma County has the 26th highest education need among 3,040 counties nationwide -- a clear indication that a 4-year education is crucial for Yuma’s ability to sustain healthy economic growth. To provide the community with opportunities that will ensure prosperity of the region, NAU Yuma Branch Campus will invest the requested resources in additional baccalaureate programs that meet current market demands and provide the necessary human capital to diversify the economy. State funding would be used for new program anchor faculty to provide the ability to offer more programming throughout the state.

Fall Semester 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020

NAU Yuma

Headcount 675 701 643 631 676 681 735 794 858 926 1,001 1,081 1,500

Actual Projected

Dr. James R Carruthers Research and Education Building



8

Background and Issue Statement

The benefits of higher education to individuals as well as to the society are well known and documented. Numerous studies show income, living standards, health, civic order, and general welfare to be positively correlated to postsecondary educational attainment. Those with at least a baccalaureate degree are better positioned on the labor market, especially during challenging economic times. In order for Arizona to be competitive nationally and internationally, the state has to increase educational attainment of its citizens. Improvements are needed along the entire educational pipeline. Since Arizona Board of Regents adopted the Vision 2020 strategic plan, Northern Arizona University has made significant progress toward achieving the goals identified within the four critical areas—Educational Excellence, Research Excellence, Workforce and Community, and Productivity—despite declining General Fund support and in absence of any enrollment growth funding. Increased efficiency in the university operations, improved class scheduling and campus space utilization, increased teaching loads, stimulus funding, and increased tuition rates facilitated the university’s remarkable success. In the future, the NAU enterprise has a unique and challenging state-wide assignment and needs to move in several directions.

Northern Arizona University’s 2020 enterprise goals include:

Growing enrollment at NAU-Flagstaff to 25,000 students.

Growing regional universities to 3,000 students.

Improving NAU-Flagstaff retention to 85%.

Improving NAU-Flagstaff’s 6-year graduation rate to 65%.

Implement differential tuition and admissions standards at regional campuses .

Growing enrollment at online and extended learning centers throughout Arizona to 10,000.

Northern Arizona University offers outstanding undergraduate residential education strengthened by graduate programs and a significant, but selective research mission at its Flagstaff location. NAU-Flagstaff is recognized for its educational and research expertise and scholarship in biotechnology, business, environmental sciences, engineering, teaching and learning, and research focused on challenges faced by the Colorado Plateau and the interior Western U.S. It is known nationally as a center for undergraduate research and creative work. Northern Arizona University is also overseeing two emerging regional campuses (master’s level) with a primary mission to provide programming valued by the local communities of Yuma and Yavapai/Prescott. Northern Arizona University’s extended learning centers, including NAU-Yuma and NAU-Yavapai, will not duplicate the high research mission of the Flagstaff campus. They will, however, join the Flagstaff campus in being important economic engines for their communities.

STRATEGIC ISSUE #3

ARIZONA SUPPORT PER STUDENT IN HIGHER EDUCATION ACHIEVING THE ARIZONA BOARD OF REGENTS 2020 VISION

EDUCATIONAL EXCELLENCE:



9

Northern Arizona University is near the top of its peer group in competitive funding for research from state/local sources and in funding for environmental sciences. It leads its peer group in starting up new companies. Over the past five years the university demonstrated steady increase in research funding and in sponsored project funding, injecting $165 million in the regional economy. NAU Ventures is increasing the number of invention disclosures and patent applications and supporting more licensing activity for university technologies. To pursue ABOR’s Vision 2020 goals, the university plans to leverage key areas of research strength, especially in improving health and sustainability, improve prospects for industry sponsorship of applied research, coordinate with sister universities to connect our faculty to larger research teams, and expand undergraduate research. Our 2020 enterprise research excellence goal is:

Continued research and public service expansion at NAU-Flagstaff to $100 million.

The extended learning centers of NAU allow, and will increasingly allow in the future, students to pursue higher education through alternative learning environments. NAU currently offers over 70 degree, certificate, and endorsement programs – online and through the learning centers statewide. The extended learning centers of NAU have typically served professionals seeking career advancement through higher education, but now have growing undergraduate online program enrollment. Northern Arizona University has also pioneered new relationships with Arizona community colleges. Workforce and Community 2020 enterprise goals include:

Expand community college partnerships through joint admissions, eliminating most transfer issues and develop accelerated and other innovative learning options. Develop new competitive professional master’s and doctoral programs to meet state’s and national needs.

In fall 2010 Northern Arizona University opened its doors to the first group of students at its new campus NAU-Yavapai. This new, organizationally innovative campus offers structured, affordable, high-quality baccalaureate degree programs that are responsive to the quad-city and state workforce needs. As a partnership among the university, Yavapai College, and the City of Prescott Valley, NAU Yavapai exemplifies the university’s response to regional needs of communities it serves.

To provide efficient and accountable education services to Arizona citizens, Northern Arizona University engages and invests in key information technology and financial system improvements as a means to boost productivity and contain cost. A number of initiatives target academic productivity, including electronic advising, class scheduling, and online instruction while others focus on improving student experience through better integration of systems and partners. Administrative processes, business practices, and internal policies are periodically reviewed and revised to minimize redundancy and streamline services.

PRODUCTIVITY:

RESEARCH EXCELLENCE:

WORKFORCE AND COMMUNITY:



10

Bachelor’s degrees

Master’s degrees

Number of AZ community colleges students who

transfer to NAU

Number of AZ community college students awarded bachelor’s degrees

EDUCATIONAL EXCELLENCE:

1,687

2,151

3,000

3,960

0 1,000 2,000 3,000 4,000 5,000

2007

2008

2009

2010

2016

2020

ProjectedActual

943

1,234

1,700

2300

0 1000 2000 3000

2007

2008

2009

2010

2016

2020

ProjectedActual

2,942

3,400

4,500

4,800

0 2,000 4,000 6,000

2005

2006

2007

2008

2009

2010

2016

2020

ProjectedActual

Vision 2020 Performance Measures

1,897

1,699

1,500

1,500

0 1,000 2,000 3,000

2005

2006

2007

2008

2009

2010

2016

2020

ProjectedActual



11

Undergraduate enrollment Graduate enrollment

RESEARCH EXCELLENCE:

Total research expenditures (in $M) Number of doctoral degrees awarded

Number of invention disclosures transacted

111

91

130

130

0 50 100 150

2005

2006

2007

2008

2009

2010

2016

2020

ProjectedActual

11

9

13

15

0 5 10 15 20

2005

2006

2007

2008

2016

2020

ProjectedActual

$19.6

$26.2

$40.0

$60.0

$0.0 $20.0 $40.0 $60.0 $80.0

2005

2006

2007

2008

2009

2016

2020

ProjectedActual

13,472

20,194

27,000

32,000

0 10,000 20,000 30,000 40,000

2005

2006

2007

2008

2009

2010

2016

2020

ProjectedActual

5,597

5,010

6,000

6,000

0 2,000 4,000 6,000 8,000

2005

2006

2007

2008

2009

2010

2016

2020

ProjectedActual



12

Vision 2020 Performance Measures

Public service expenditures ($M) Number of degrees awarded in STEM* * Science, technology, engineering, and math

WORKFORCE AND COMMUNITY:

PRODUCTIVITY:

Number of bachelor’s degrees awarded per 100 FTE students*

*Current year degree awards divided by enrollment from 4 years ago.

$22.2

$28.8

$34.0

$40.0

$0.0 $20.0 $40.0 $60.0

2005

2006

2007

2008

2009

2016

2020

ProjectedActual

21

23

25

30

0 10 20 30 40

2005

2006

2007

2008

2009

2010

2016

2020

ProjectedActual

408

567

671

780

0 200 400 600 800 1000

2005

2006

2007

2008

2009

2010

2016

2020

ProjectedActual



13

Delta full educational cost per degree awarded

Square footage of university capital infrastructure that is unsatisfactory (code red) or requires major renovation (code orange)

*Renovated, demolished, and active construction considered satisfactory.

$33,788

$43,265

$0 $10,000 $20,000 $30,000 $40,000 $50,000

2005

2006

2007

2008

2009

1,030,028

852,057

830,747810,747

664,387

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2006 2007 2008 2009 2010

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

General Fund 158,498,200

Enrollment Growth + New

Formulas


Formulas


Formulas

Enrollment Growth + New Formulas

Other Appropriated Funds 92,419,800

Other Non Appropriated Funds 203,352,400

Federal Funds 65,922,800

Budget Unit Total 520,193,200

FTE Positions 2,328.23



14

APPENDIX – PROFILE TABLE COMPARISON TO 2020 VISION WITH 2016 TARGETS

Educational Excellence 2008 2009 2010 2016* 2020*

Bachelor’s degrees awarded 2,963 3,151 3,400 4,500 4,800

Master’s degrees awarded 1,763 1,719 1,699 1,500 1,500

First-time, full-time freshmen retention rate 69 72 71 77 85

First-time, full-time 6-year graduation rate 53 50 50 58 65

Number of Arizona community college students who transfer to NAU

1,758 1,917 2,151 3,000 3,960

Number of Arizona community college students who transfer to NAU and graduate

1,044 1,035 1,234 1,700 2,300

Undergraduate enrollment 16,787 18,301 20,194 27,000 32,000

Total enrollment 22,507 23,600 25,204 33,000 38,000

Research Excellence

Total research expenditures $25.8M $26.2M $28M $40M $60M

Doctoral degrees awarded 87 103 91 130 130

Number of invention disclosures transacted 9 10 15 13 15

Community Engagement/Workforce Impact

Total expenditures for public service $29.3M $28.8M $29M $34M $40M

*Revised goals ACTUAL—slightly larger, bold, blue font PROJECTED—smaller, italic, black font



1

VISION The Arizona University System

Five-Year Strategic Plan

2012-2016

2 0 20


Item 2dPage 1 of 20

2

EXECUTIVE SUMMARY 3

Summary of 2020 Vision 4

Summary of 2016 Performance Targets 8

GOAL ONE: EDUCATIONAL EXCELLENCE 9

Key Indicators and targets 10

Summary of strategies 11

GOAL TWO: RESEARCH EXCELLENCE 12



GOAL THREE: COMMUNITY ENGAGEMENT & WORKFORCE IMPACT 15



GOAL FOUR: PRODUCTIVITY 18



Table of

Contents


Item 2dPage 2 of 20

3

EXECUTIVE SUMMARY

ABOR Five-Year Strategic Plan

2012-2016


Item 2dPage 3 of 20

4

The Arizona Higher Education Enterprise

In 2010, the Arizona Board of Regents asked the executive team (Council of Presidents) of the higher education enterprise to conduct an enterprise-wide realign-

ment effort so that the enterprise and each of its units might enhance its overall performance and adaptability so as to provide for greater educational and re-

search outcomes. As Arizona enters its second century and as it continues to grow and diversify its social, economic, technical and cultural challenges have

also grown. At the same time, the funding and operating models of the past have been frequently ignored (student growth based funding, state support for core

needs such as personnel, utilities, new facilities’ operations, and other funding agreements such as decision packages, research infrastructure, and building re-

newal). The lack of certainty of public investment poses significant challenges to advancing the public university education and its ability to create direct and

tangible impacts on Arizona’s economy in service to the people of Arizona.

As a result and with the need for the University System to be even more effective and impactful going forward, a conceptual realignment was requested by the

Board. The purpose of this realignment exercise was to provide a new framework for the “University System” that maximizes the unique strengths in each uni-

versity’s discovery, teaching, learning, and service missions while at the same time rewarding organizational adaptability, innovation and entrepreneurship in a

high change environment.

What is the Arizona Higher Education Enterprise?

Typically in the United States, clusters of public higher education institutions are designed to operate as administrative systems closely aligned with a state gov-

ernment. These systems of universities are usually organized around a group of institutions that each performs a range of teaching and research missions, often

in a particular niche. Each university system operates as a simple administrative unit comprising multiple universities with different and discreet mission assign-

ments.

As the Arizona University System has not operated as a classic system and as the world of 2010 is very different than the era in which the great university sys-

tems emerged (California, Maryland, North Carolina, New York) in the last 50 years or so, we have by historical setting and context emerged three highly adap-

tive, efficient and unique higher education institutions. In the case of Arizona, the forces of high speed growth, modest government investment, rapid social, cul-


Item 2dPage 4 of 20

5

tural and economic change, and the physical size and unique urban/rural character of Arizona have, when matched with its western spirit of free enterprise, driven

the universities down the path of independence and variation. In this case, it is, in fact, the lack of a traditional system level design and the lack of the standard

twentieth century administrative and hierarchical model that gives Arizona its greatest advantage at this moment in time.

Arizona’s higher education enterprise, in the form of the University of Arizona, Arizona State University and Northern Arizona University, has tremendous capacity

for unique and creative design, entrepreneurial behavior and highly efficient operations. As a result, this strategic realignment plan does not draw from the 1960

model of university systems but rather leap frogs that evolutionary stage and envisions the University as an enterprise manifesting itself through three unique semi-

autonomous enterprise platforms. In this model each of Arizona’s universities is assumed to be a differentiated and unique institution with a unique assignment

and approach to education that helps the system as a whole to meet its goal. Through this model the Arizona Higher Education Enterprise, as governed by the

Arizona Board of Regents, is designed for flexible adaptation for the future.

As the operating units of the Arizona Higher Education Enterprise, the three universities will work through unique mission assignments to meets the goals of the

Arizona Board of Regents collectively. Enterprise-wide mission and goal attainment will be coordinated by the Council of Presidents operating as the enterprise

executive committee. In this mode, the Council of Presidents is empowered by the Board to make adjustments and changes in mission assignments so that the full

set of objectives can be attained. The Council will monitor and evaluate movement toward the full set of metrics outlined in the previous section and will adjust

assignments, structures, and resources accordingly.

Furthermore, in the Enterprise, each President will have a dual assignment. First, to deliver their individual institution to full goal attainment and, second, to engage

in overall enterprise goal attainment. Presidents will focus their energy on individual institutional goals as well as enterprise goals, and will work together in a coop-

erative manner to achieve enterprise-wide success in goal attainment.

Summary

In the 2009 report entitled Vision 2020, the Arizona Board of Regents outlined the objective of raising Arizona to the national average of college graduates in the

work force and moving Arizona to the status of a large scale center for academic research. This realignment plan outlines how both of these significant goals will

be achieved in an era of more modest public investment. These achievements will be made possible through a series of dramatic realignments, including:


Item 2dPage 5 of 20

6

Establishment of the Arizona higher education system as an enterprise model of operations wherein the enterprise:

Is measured, governed and invested in based on performance metrics.

Is managed by presidents acting individually as university CEOs and together as an enterprise executive committee.

Is organized and operated without the constraints operating within the limits of the state of Arizona.

The restructuring of academic programs, support units and curricular design so as to maximize excellence and success for students, while containing

cost.

Expansion of access to baccalaureate degrees through the establishment of new baccalaureate degree campuses, expanded community college

access and expanded online access.

Broadening admission standards for selected academic units and campuses so as to expand the number of students eligible to pursue baccalaureate

degrees.

Total restructuring of the state of Arizona investment model from the outdated enrollment growth model to a funding model built on performance indi-

cators.

The privatization (no public investment) of select, self-sustainable academic programs.

The expansion of the research enterprise to $2 billion per year, second only to California in the West, and movement of research impact indicators to

the highest level of universities in the country.

Reaffirmation of the commitment of outreach to the people of Arizona as exemplified by the Extension Service and similar programs that address the

practical concerns of the state’s businesses and residents.

In summary, these changes in direction and design represent the most significant realignment of higher education in Arizona since the founding of the territorial

university in 1885.


Item 2dPage 6 of 20

7

The 2020 Vision:

A top-performing state university system, nationally recognized for

excellence in academic and research pursuits that support and

stimulate a growing, vibrant economy and a high quality of life for

Arizonans

The 2020 Mission:

To increase the educational attainment of Arizona citizens by

producing enough high-quality university degrees for the state

to be nationally competitive by the year 2020

To increase the prominence of the system’s research enterprise

so that it can contribute to the knowledge economy and improve

the quality of life in Arizona

To provide the educated workforce needed to fill shortages and

to stimulate demand for higher paying jobs in Arizona

2012-2016—The beginning stage of 2020 Vision

The five- year strategic plan for the Arizona Board of Regents

is intended to articulate five years of the 2020 Vision plan.

The long-term goals, objectives, and strategies reflect the

priorities of the system’s long-term plan.

The long-term strategy is divided into four key policy areas

and includes specific performance outcomes and targets for

each area, as well as strategies necessary for the plan to be

successful by the year 2020.

1. Educational Excellence—-quality degree production aimed at increasing the

educational attainment of Arizonans

2. Research Excellence—national research prominence for Arizona University

System with peer rankings of top American research universities

3. Community Engagement & Workforce Development— research, economic

development, and community engagement used to strengthen the economy

and improve quality of life in Arizona

4. Productivity—resources maximized to produce greater numbers of quality

degrees without sacrificing quality


Item 2dPage 7 of 20

8

Summary of Performance Targets to 2016

Selected 2020 Vision Key Performance Indicators

2008 2009 2010 2016 2008-2010 2010-2016

Actual Actual Actual Target % Change % Change

Key Performance Indicators:

Bachelor's degree awarded 19,281 20,294 21,037 25,844 9.1% 22.9%

Master's degree awarded 6,243 6,837 6,950 7,500 11.3% 7.9%

Community College transfers 8,470 8,995 9,222 13,496 8.9% 46.3%

Total research expenditures ($000) 831,189 873,063 946,932 1,358,000 13.9% 43.4%

Doctoral degrees awarded 958 1,153 1,006 1,419 5.0% 41.1%

Additional indicators:

Total enrollment (official 21st day) 126,806 129,721 132,035 169,100 4.1% 28.1%

Undergraduate enrollment (official 21st day) 99,155 101,318 104,817 135,308 5.7% 29.1%

Freshman retention rate 77.7% 78.3% unavailable 84.0% 0.8% * 7.3%

6-year graduation rate 55.8% 56.0% unavailable 62.0% 0.4% * 10.7%

* 2010 vs 2009 change


Item 2dPage 8 of 20

9


Item 2dPage 9 of 20

10

KEY INDICATORS

The table to the right illustrates the key indica-

tors of progress for the Educational Excellence

component of the 2020 Vision plan. While not

all of these metrics are fully developed, they

will allow the system to track progress on key

outcomes necessary for success toward the

2020 targets.

The Board will continue to refine these metrics

and develop a full-scale accountability system

to track future progress.

The Educational Excellence component of the

plan deals with increasing bachelor’s degree

production so that the state can reach higher

educational attainment levels.

2016 TARGETS

The table to the right outlines several of the key

performance targets in the five-year plans.

By 2016 the plan calls for a 24% increase in

the number of bachelor’s degrees produced

and 7 and 11 percentage point increase in

retention and graduation rates.

A key component of success in the plan deals

with the ability of the system to attract greater

numbers of community college transfer stu-

dents. By 2016 the plan calls for a 50% in-

crease in community college transfers.

Enrollment increases are necessary in order to

attain the higher degree production targets and

also to increase access for students in Arizona.

By 2016 the plan calls for more than a 20%

growth in enrollment at the universities.

Education Excellence Targets for 2016

2009 Actual

2016 Targets

Change % Change ASU

2016

NAU

2016

UA

2016

2020 Vision Targets

Bachelor’s Degrees Produced

20,294 25,844 4,955 24.4% 14,144 4,500 7,200

Freshman Retention Rate

78.3% 84% 5.7% 7.3% 87.0% 77.0% 85.0%

6-Year Graduation Rate

56.0% 62.0% 6.0% 10.7% 64.0% 58.0% 62.0%

Community College Transfers

8,995 13,496 4,501 50% 7,966 3,000 2,530

Undergraduate Enrollment (Official 21st Day)

101,318 135,308 20,758 20.5% 72,868 27,000 35,440

Total Enrollment (Official 21st Day)

129,721 169,100 39,379 30.4% 90,000 33,000 46,100


Item 2dPage 10 of 20

11

System 2020 Macro Strategies Arizona State University Northern Arizona University University of Arizona

Align educational pipeline Enhance partnerships with commu-

nity colleges to facilitate a more

efficient transfer process.

Teach upper-division coursework on

community college campuses in

partnership with community colleges

for high demand programs

Expand partnerships with Arizona

Western and Yavapai Colleges to

offer more academic programs and

student services

Expand joint admissions recruiting

and programming

Collaborate with P-14 educational

partners to prepare students for

university success

Certify 5% more teachers, espe-

cially in STEM fields, each year,

targeting underserved areas first,

by developing alternative delivery

models and hiring additional faculty

Close opportunity gaps Provide flexibility in course offerings

and educational modalities, includ-

ing increased online course avail-

ability

Increase student diversity and re-

cruitment of academically eligible

under-graduate students

Pursue new efforts to increase mili-

tary and veteran enrollments

Continue progress in increasing

AZUN student learning and suc-

cess, improving administrative ef-

fectiveness and efficiency, and

strengthening AZUN infrastructure,

marketing, and strategic alliances

Increase online program offerings

Increase undergraduate and gradu-

ate enrollments to reflect the growth

and diversity of the state

Improve retention for freshmen and

sophomores and 6-year graduation

rates overall and for traditionally

under represented students by 5%

Enrich the educational environment

by recruiting and retaining a diverse

faculty with outstanding achieve-

Continue developing the new system archi-

tecture to ensure low-cost campuses and

program offerings across the state

Establish undergraduate colleges

that will provide an opportunity for

student to complete baccalaureate

degrees in 3 years at lower costs

NAU branch campuses and eventu-

ally regional universities will deliver

structured, cost-effective baccalau-

reate education in higher population

density areas

Increase undergraduate and gradu-

ate enrollments to reflect the growth

and diversity of the state

Expand access to courses and ma-

jors to keep pace with planned en-

rollment growth

Improve ability to serve growing

student population by providing

integrated state-of-the-art techno-

logical support services

Minimize financial barriers for low income

families

Make student financial assistance

readily available for need-based and

other targeted populations

Maintain a reasonable tuition level

for resident students

Increase need and merit-based

financial aid through Arizona Assur-

ance program and by doubling

number of endowed scholarships

for undergraduates

Summary of Strategies for Educational Excellence: 2012-2016 Board of Regents Meeting

December 9-10, 2010Item 2d

Page 11 of 20

12



13

KEY INDICATORS

The table to the right illustrates the key indicators of

progress in the 2020 Vision plan for Research Excel-

lence.

The Board will include these metrics in the account-

ability system to track future progress.

The Research component of the plan deals with

moving the Arizona university system to a level of

national prominence with other research systems in

the United States and with transferring that knowl-

edge to benefit the people in Arizona.

2016 TARGETS

The table below outlines the main target for the re-

search component of the plan. Tracking total re-

search expenditures demonstrates the level of re-

search activity in the system.

Research Excellence Targets for 2016

2009 Actual 2016 Targets Change % Change

ASU

2016

NAU

2016

UA

2016

Total Research Expenditures

$873,063,000 $1,358,000,000 $484,947,000 55.5% $505,000,000 $40,000,000 $813,000,000

Total Doctoral Degrees Awarded

1,153 1,419 266 23.1% 769 130 520

Number of Invention Disclosures

174 NA NA NA NA



14


Increase access to new and existing

sources of federal and state research

support

Differentiate ASU from competition

through procurement of large projects

(>$10M) in key target areas

Pursue a national research lab on scale

of $50-$100M per year

Expand research funding from founda-

tions and individual donors

Expand collaborative research activities

with industry

Pursue support for research areas re-

lated to biotechnology/bioscience and

health, environment and sustainable

systems, learning and teaching, and

regional social and economic

challenges

Lead the nation in research and

outreach activities that are criti-

cal to our state’s future

Build on UA’s national leader-

ship in interdisciplinary and col-

laborative research

Recruit, develop, and retain top re-

search faculty and faculty teams

Close the gap on salaries as defined in

Faculty Peer Salary Analysis and in the

Joint Governmental Salary Survey

Improve salary and benefits for gradu-

ate and teaching assistants

Develop and maintain the network and

computational resources required by

the research community

Hire full-time tenured/tenure track fac-

ulty

Continue efforts to retain faculty and

staff and hire competitively

Expand infrastructure and invest

in programs and projects that

reach across traditional univer-

sity boundaries, while also de-

veloping emerging areas

deemed worthy of investment

Promote the transfer of new knowledge

into the Arizona and global communi-

ties

Accelerate technology transfer initia-

tives

Continue to pursue angel and venture

investment in emerging companies

Intensify efforts to establish and pro-

mote cross-disciplinary integration of

information needed to address energy

and sustainability issues with a focus on

Arizona and its rural areas

Enhance areas of study in which

UA has established its interna-

tional leadership, especially

those that are vital to the future

of the state

Foster the transfer of technologi-

cal and research innovations

Provide research-based services

directly to the people of Arizona

Summary of Strategies for Research Excellence: 2012-2016 Board of Regents MeetingDecember 9-10, 2010


15



16

KEY INDICATORS

The table to the right illustrates the key indica-

tors that will be used to measure future pro-

gress in the Community Engagement and

Workforce Impact component of the 2020 Vi-

sion plan.

These indicators are currently being refined,

and data are being collected. The Board will

continue to refine these metrics and will include

them in the accountability system to be devel-

oped to track future progress.

HIGH DEMAND FIELDS

Part of the future planning efforts of the Board

will revolve around identifying key fields on

which to focus efforts related to bolstering the

Arizona economy. Preliminary work indicates

that areas such as health care and STEM

(science, technology, engineering, and math)

deserve special attention.

2016 Targets

There are no current performance targets for

any of the key indicators pending further review

and refinement.

Future planning efforts will seek to identify high

demand fields and set specific targets and

strategies to address the plan.



17


Expand partnerships with business

and community

Enhance partnerships with the com-

munity and the state

Expand AZUN degree and certificate

programs to meet employer needs

Expand partnerships with public, pri-

vate, and nonprofit organizations to

distribute research and strengthen vital

services to Arizona citizens

Build endowment to improve ability to

provide Arizona with the best people

and programs

Advance Arizona’s communities

through more extensive service and

engagement

Address the interests and workforce

needs of the metropolitan area and

state in times of diminishing economic

resources

Support innovation and engagement

with communities

Cultivate an educational community

that promotes awareness of a diverse

and changing world

Foster the transfer of technological

and research innovations

Provide research-based services to

the people of Arizona

Prepare Arizona’s workforce for the

knowledge economy

Address the interests and workforce

needs of the metropolitan area and

state in times of diminishing economic

resources

Increase number of qualified teachers

to meet K-12 educational demands

Develop new pathways for workforce

training and degree attainment for non-

traditional and adult populations

Engage with partners to address eco-

nomic entrepreneurship, identify high

demand fields; increase the production

of degrees in these fields in collabora-

tion with partners

Provide responsive educational pro-

grams to Arizona citizens wherever

they live and work

Expand health professions programs

on and off main campus

Respond to the state’s shortages in

vital areas such as healthcare through

efforts such as increased enrollment

both at the Phoenix Biomedical Cam-

pus and across all UA health-related

programs

Certify 5% more teachers, especially in

STEM fields, each year, targeting

underserved areas first, by developing

alternative delivery models and hiring

additional faculty

Summary of Strategies for Workforce & Community: 2012-2016



18



19

KEY INDICTORS

The table to the right illustrates the key indicators of

progress in the 2020 Vision plan for the Productivity

component.

The first two indicators are based on best practice as

utilized in the Delta Cost Project, a national project to

examine productivity related to the production of

bachelor’s degrees.

The third indicator is an index, also based on national

best practice methodology, to be used as part of the

Board’s efforts to evaluate the financial strength of

each university.

2016 TARGETS

Currently, there are no 2016 targets for these key

indicators. As part of future planning efforts, the

Board may wish to explore the extent to which estab-

lishing targets for these indicators would be useful.



20


Productivity Initiatives

Consolidation of colleges and

departments

Use SPEED funding to move forward

on 5 critical deferred maintenance

projects

Implement Transformation Plan that

includes a reassessment and restruc-

turing of academic and business units

to streamline operations and

strengthen core teaching, research,

and service mission

Renew commitment to accountability

and innovation to serve changing

needs

Strengthen collaborative networks with

major investment in technological

infrastructure through the Mosaic Pro-

ject to replace aging financial system

Comprehensive Funding Review

Partner in ongoing review Partner in ongoing review Partner in ongoing review

Track financial strength of the univer-

sities

Financial Status Updates

Ratio analyses and reporting based on

Composite Financial Index

Financial Status updates



Financial Status Updates



Improve tuition and financial aid poli-

cies to align with affordability needs,

funding adequacy, and share of re-

sponsibility for educational costs

Tuition proposals aligned with maxi-

mum parameters of Board policy

Financial aid programs to maximize

affordability for low-income students

Tuition increases




affordability for low- income students




affordability for low- income students

Develop ways to direct tuition reve-

nues to best serve students and reallo-

cate research revenues more strategi-

cally to invest in areas of particular

Summary of Strategies for Productivity: 2012-2016 Board of Regents Meeting

December 9-10, 2010Item 2d

Page 20 of 20



Contact Information: Mark Denke, ABOR 602-229-2503 [email protected] Stephanie Jacobson, ABOR 602-229-2529 [email protected]

Item Name: Report from the Academic Affairs Committee

Action Item Discussion Item Information Item DISCUSSION The following items will be considered at the December 8, 2010 meeting: New Enterprise Strategic Realignment Academic Council

The Committee will hear a presentation on the Academic Council of the New Enterprise model, as recommended in “The Arizona Higher Education Enterprise”, presented by the Council of Presidents to the Board at its September 2010 meeting.

2010 Financial Aid Report The annual Financial Aid Report will be presented to the Committee. Revisions to the UA 2010-11 Academic Strategic Plan

The Committee will be asked to approve revisions to the UA Academic Strategic Plan related to the UA College of Medicine-Phoenix. SB 1186: Postsecondary Institutions; Course Numbering: Reports

The Committee will be asked to review and recommend for the Board’s endorsement the proposal for a statewide course numbering system as prescribed in SB 1186 and developed by Arizona’s community colleges and universities. Annual Report on Academic Program Reviews for 2009-10. The Committee will review and be asked to approve the 7-Year Academic Program Reviews for each program completed during 2009-10, as required by ABOR Policy 2-208.

Issue: The Board will receive a report from Regent DuVal on the December 8, 2010 Academic Affairs Committee meeting.



The Education Pipeline A presentation will be made on recent data showing trends in the education pipeline which may have an impact on the metrics for the Enterprise Model and the 2020 Vision. Evaluating university enrollment and graduation performance is a recommendation in “The Arizona Higher Education Enterprise” Report. Proposed Revision to ABOR Policy 5-308, “Student Code of Conduct”

The Committee will be asked to review and recommend for Board approval a proposed revision to ABOR Policy 5-308 that would revise the prohibition regarding sexual misconduct.

Proposed Revision to Board Policy 2-103A, “Enrollment”

The Committee will be asked to review and recommend to the Board a proposed revision to Board Policy 2-103A to increase the limit on full time non-resident undergraduate enrollment from 30 percent to 40 percent. This proposed revision would make permanent a two-year policy exception granted in 2009.

Phasing Out and Dissolution of AZUN/ARU

The Committee will review and be asked to recommend the phasing out and dissolution of AZUN/ARU to the Board. Appointment of Regents Professors Arizona State University will request the Committee’s approval of the promotion of six faculty members to the rank of Regents’ Professor.

2009-2010 Transfer Articulation Transfer Report

The Committee will be asked to approve the annual progress report on articulation and transfer, to be submitted to the Joint Legislative Budget Committee (JLBC) by December 15, 2010. The report on course numbering will be included with this year’s report as required by SB 1186.

Recommendation to the Board This item is presented for the Board’s information.



Contact Information: Stephanie Jacobson, ABOR 602-229-2529 [email protected]

ITEM: Course Numbering System for Community Colleges and Universities

Action Item Discussion Item Information Item

Background • SB 1186: Postsecondary Institutions; Course Numbering, signed into law during the

2010 legislative session, requires public universities and community colleges to develop and implement a shared numbering system that identifies courses that transfer from community colleges to the universities toward a baccalaureate degree.

• The final version of the bill was developed in collaboration with the universities and community colleges and represents a significant compromise from the original language.

• A report is due to the legislature by December 15, 2010 that recommends an agreed

upon shared numbering system, a plan to implement the system, the projected cost of system implementation and maintenance, and identification of potential one-time and on-going resources to fund system implementation and maintenance.

• The Joint Council of Presidents of the community colleges and universities met on

November 12, 2010, and unanimously selected for implementation the Shared Unique Number System, which is described further in this document and in the appendix.

Statutory/Policy Requirements SB 1186 amends ARS 15-1824 “Transfer Articulation; Reports” to read “Transfer Articulation; Course Numbering; Reports” and adds this language: B. The community college districts and the universities under the jurisdiction of the Arizona Board of Regents shall develop and implement a shared numbering system which identifies courses that transfer from community colleges to Arizona public universities toward a baccalaureate degree. Discussion • In August, the Joint Council of Presidents of the community colleges and universities

approved an action plan for developing a course numbering model.

Issue: The Board is asked to endorse the proposed statewide shared numbering system for the community colleges and universities developed in response to SB 1186 and approved by the Joint Council of Presidents of the community colleges and universities.



• Under the leadership of a steering committee, the plan called for a statewide committee with members appointed by the presidents/chancellors of the 13 public community colleges and universities to:

o Review and select course numbering models for further study and cost analysis. o Establish protocols for and conduct costs analyses. o Provide options and costs to Joint Council of Presidents o Pending approval of Joint Council of Presidents, develop final report for

submission to state legislature.

The members of the steering committee and the statewide committee are listed in Attachment A.

• During the ensuing weeks, the steering committee and the full committee met several times to carry out the plan.

• After reviewing several models from other states and considering options for Arizona, the committee selected two models of shared numbering systems for further review and cost analysis. The two models and estimated costs are highlighted below.

• These two options were presented to the Joint Council of Presidents on November

12 and they unanimously selected the Shared Unique Number (SUN) system for implementation. Shared Unique Number

• In this model, community college and university courses with established equivalencies would be assigned a shared unique number (SUN), very distinctive from any of the existing institutional numbering systems.

• Key reasons this model was selected is because it will provide clear benefits to students, could be implemented under existing structures, is less disruptive to the curriculum development processes of the institutions, and is less costly. Cost was a primary consideration, given the current financial constraints under which all of the institutions are operating. There was also consensus that the SUN system would provide the flexibility the institutions need to respond quickly to changing needs.

• The SUN system would form a bank of identifiable common courses that would be

mapped to an institution’s existing courses. The institution’s prefixes and numbers would not change and would continue to be used within the institution; however, catalogs, transcripts, web sites/databases, and degree audit programs would reflect the SUN.



• This model is built on course equivalencies or course substitute agreements between institutions that doesn’t require the courses between the institutions to be exact, resulting in greater numbers of courses in the bank than the other model.

In addition, because of the system’s flexibility, the course bank could be readily expanded.

• Arizona’s current online Course Equivalency Guide system has the capacity and functionality to provide the foundation and technology for implementing the SUN model. It’s anticipated that this system could be implemented fairly expeditiously, probably within 12 months, and could be done for the most part within the existing institutional structures.

Shared Unique Number System: Total Cost Estimate for implementation and annual maintenance. Item In-Kind Contribution Additional Funding University Faculty $ 1,122,188 $ 437,250 CC Faculty $ 1,273,005 $ 497,610 University Staff $ 253,125 $ 123,750 CC Staff $ 438,750 $ 219,375 APASC Staff $ 162,000

TOTAL $ 3,087,068 $1,439,985 Annual Maintenance NA $ 162,000

Same Prefix, Number, Title

• In this model, courses are assigned the same prefix, number, and title, and are regarded as equivalent in all aspects (e.g., pre-requisites, credit hours, course level, course descriptions, course content, course outcomes, etc.).

• This model would be most transparent for identifying equivalent courses statewide and would be the simplest for students to understand. A student would know that a course at one institution would be the same course at the transfer institution, whether transferring to a community college or university.

• However, it would be significantly more expensive to implement and maintain, and could result in curricular constraints that would make it difficult for institutions to respond to changing needs.

• Course content and learning outcomes need to be significantly common in this model; for example, several states use a 75-80% rule for common course content in order to assign a common course number. While the Arizona universities accept many community college courses as “equivalent” to their courses, these courses are considered acceptable substitutes but they have not been analyzed to serve as the same course.



• To implement this model, university and community college faculty at the 13 institutions would need to agree upon all of the components of any course that would be given the same prefix, number, and title, since these courses would become interchangeable among institutions.

• A statewide entity would need to be established to manage the course numbering system to, among other tasks, coordinate among the institutions the approval of new common courses based on the commonality requirements; approve course proposals from institutions that wish to offer common courses; assign the common prefix and numbers; approve changes to existing courses, and keep the technical systems up to date. Costs associated with the creation of the office, development of support systems, staff, and maintenance have not been determined and are not included in the estimates below.

Same Prefix, Number, Title: Total Cost Estimate for Implementation and annual maintenance. Item In-Kind Contribution Additional Funding University Faculty $ 12,521,250 $ 4,956,000 CC Faculty $ 34,496,640 $ 5,552,280 University Staff $ 607,500 $ 1,093,500 CC Staff $ 1,620,000 $ 2,187,000

TOTAL $ 49,245,390 $13,788,780

Annual Maintenance $ 2,878,358 $ 1,147,403 Implementation The implementation of the Shared Unique Number System is anticipated to take 12 months and would begin in January 2011. By implementation in January 2012, approximately 175-200 general education and common major courses are expected to be included in the course bank. Appendix The report, Course Numbering System, can be found at: https://azregents.asu.edu/academicaffairs/Academic%20Affairs%20Agenda%20Books/2010-12-08-Appendix-5-Common-Numbering-System-SB1186-Report-to-Legislature.pdf or contact Stephanie Jacobson at [email protected]. Committee Review and Recommendation This proposal will be presented to the Academic Affairs Committee at its December 8 meeting. Recommendation to the Board It is recommended that the Board endorse the proposed statewide course numbering system selected by the Joint Council of Presidents as described in this executive summary.



Contact Information: Dan Anderson (602) 229-2544 [email protected]

Item Name: Combined Report on Student Matriculation, Enrollment and Graduation


Background

• ABOR policy requires reports to the Board on total enrollment and various groups including resident/non-resident students, undergraduate/graduate students and headcount/FTE.

• University student enrollment depends on preparation in high school and choices students make to pursue their postsecondary education in state or out of state, at 2-year or 4-year institutions. A new report on the student pipeline document the potential flow of students into higher education.

• Among the 2020 Vision metrics that are tracked for the system and the universities, information on enrollment and degrees awarded is compiled in these reports.

Statutory/Policy Requirements

• ABOR Policy 2-103 requires that each university shall report to the Board headcount and FTE enrollment data for the Fall and Spring semesters. In addition, the policy delineates: (1) limitations on enrollment of non-resident undergraduate students, (2) inclusions/exclusions in calculating full-time equivalency (FTE) enrollment, and (3) enrollment at the university and campus levels.

• ABOR Policy 2-201 identifies the universities’ requirements in the awarding of degrees.

Recommendation to the Board This report is presented for the Board’s information.

Issue: The Board is provided with a summary of various reports including the pipeline of high school graduates into higher education, the university enrollment of students and those who graduate.


Item #5 EXECUTIVE SUMMARY Page 2 of 17 Key Data/Findings

A. Arizona Student Pipeline Report: This is a new report fulfilling the direction of Regent Calderón to expand our

student longitudinal information. From 2003-04 to 2008-09, the number of Arizona high school graduates has

increased by 15,256 or 31 percent to 64,483. This growth exceeds the forecasts necessary to meet the 2020 Vision enrollment goals.

There is no evidence that students delay entry to postsecondary education past the year immediately following graduation. Over half of all Arizona high school graduates have no postsecondary education attendance.

Six years after graduating from high school, about 17 percent of students have graduated from a 4 year institution and another 3-4 percent of students have graduated from a 2 year institution.

Over 25 percent of high school graduates have attended some college, but have not graduated. These students represent a potential pool of individuals who could earn a bachelor’s degree for the 2020 Vision degrees goal.

B. 2010 Fall Enrollment Report: Between Fall 2009 and Fall 2010, headcount enrollment in the Arizona

University system rose 3.3 percent with undergraduate enrollment up 4.3 percent and graduate enrollment down 0.4 percent. • Arizona State University reported increases of 4.2 and 0.7 percent. • Northern Arizona reported an undergraduate increase of 10.3 percent and

a graduate decline of 5.1 percent. • The University of Arizona reported increases of 0.8 and 0.9 percent.

FTE enrollment rose even more rapidly, rising 4.7 percent for undergraduate students and 3.8 percent for graduate students. • At Arizona State University, FTE enrollment grew 3.9 and 4.0 percent. • Northern Arizona University reported an 11.0 percent growth in under-

graduate FTE and a 1.0 percent decline for graduate students. • The University of Arizona had FTE growth of 2.3 and 6.2 percent.

In January 2009, the Board temporarily modified ABOR Policy 2-103A, raising the limit on non-resident undergraduate students from 30 to 40 percent for two years. All three universities are within the limit with: • Arizona State University at 22.4 percent. • Northern Arizona University at 24.5 percent. • The University of Arizona at 30.0 percent.



C. Annual Report on Majors and Degrees Awarded: In 2009-10, the Arizona university system awarded 21,037 bachelor’s

degrees and 8,521 graduate degrees. This is an increase of 743 (3.7 percent) bachelor’s degrees and a decrease of 9 graduate degrees compared to 2008-09.

In 2009-10, Arizona State University awarded the largest number of bachelor’s at 11,810, followed by the University of Arizona at 5,827 and Northern Arizona University at 3,400.

The Arizona University System increased the number of STEM degrees at all levels in the last year, with the total up 32 percent.

The Arizona University System is the primary entity awarding 4 year degrees to Arizona residents and fulfills a critical role in preparing the state’s future workforce.

Discussion

A. Arizona Student Pipeline Report

Through a partnership between the Arizona Department of Education, the National Student Clearinghouse and the Arizona Board of Regents, the postsecondary enrollment and graduation of students can be documented. The information is representative, but is not a complete census of student progress and outcomes. Approximately 3,300 institutions representing over 92 percent of national postsecondary enrollment are included in the National Student Clearinghouse data. Locally, institutions such as Pima Community College, Eastern Arizona College, Mohave Community College, Northland Pioneer College and various private institutions are not included in the data. As well, students have the right to block access to their individual information under the Family Educational Rights and Privacy Act (FERPA). In Arizona, about 8 percent of high school graduates have blocked access. From 2003-04 to 2008-09, the number of Arizona high school graduates has increased by 15,256 or 31 percent to 64,483. A very small percentage, 0.1 percent of less, graduate from a less than 2 year institution. These are usually vocational or occupational schools. Among 2 year institutions, 3-4 percent of high school graduates after 4 years receive a degree or certificate. The majority (around 90 percent) of those awards come from Arizona community colleges with the remaining about 10 percent being from out of state institutions.



Among 4-year institutions, approximately 15-17 percent of high school graduates receive their degree 5-6 years after leaving high school. Over three-quarters of those graduates come from an Arizona public university, about 20 percent are from an out of state institution and less than 5 percent are from an Arizona private institution. For the high school class of 2003-04, the states providing the largest number of 4 year degrees to Arizona residents were: California – 395

Utah – 217 New York – 144 Texas – 130 Colorado – 92.

Nearly 80 percent of Arizona’s high school graduates, 5-6 years after graduating, have either not completed their postsecondary education or have had no postsecondary education experience. Slightly more than half of all high school graduates have no higher education attendance and more than a quarter have attended but not graduated from a postsecondary education institution.

Table 1

Arizona High School Graduate Postsecondary Education Outcomes

2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09

Total Graduated from AZ High School 49,227 53,316 54,821 57,632 61,055 64,483

Graduated from <2 year institution 22 19 28 52 59 38

Graduated from a 2 year Institution 1,693 1,858 1,795 1,478 771 345Arizona Private Institution 17 0 0 0 0 0Arizona Public Institution 1,502 1,697 1,662 1,399 732 336non‐Arizona Institution 175 161 133 79 39 9

Graduated from a 4 year Institution 8,297 7,393 4,373 343 37 4Arizona Private Institution 305 206 138 38 7 0Arizona Public Institution 6,288 5,623 3,199 189 1 0non‐Arizona Institution 1,704 1,564 1,036 116 29 4

Have Some College, not a graduate 13,054 15,942 20,423 26,680 29,930 30,299

No Postsecondary Education 26,157 28,104 28,201 29,078 30,258 33,797

Class of



Table 2

Distribution of Outcomes

2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09

Graduated from <2 year institution 0.0% 0.0% 0.1% 0.1% 0.1% 0.1%

Graduated from a 2 year Institution 3.4% 3.5% 3.3% 2.6% 1.3% 0.5%Arizona Private Institution 1.0% 0.0% 0.0% 0.0% 0.0% 0.0%Arizona Public Institution 88.7% 91.3% 92.6% 94.7% 94.9% 97.4%non‐Arizona Institution 10.3% 8.7% 7.4% 5.3% 5.1% 2.6%

Graduated from a 4 year Institution 16.9% 13.9% 8.0% 0.6% 0.1% 0.0%Arizona Private Institution 3.7% 2.8% 3.2% 11.1% 18.9% 0.0%Arizona Public Institution 75.8% 76.1% 73.2% 55.1% 2.7% 0.0%non‐Arizona Institution 20.5% 21.2% 23.7% 33.8% 78.4% 100.0%

Have some College, not a graduate 26.5% 29.9% 37.3% 46.3% 49.0% 47.0%

No Postsecondary Education 53.1% 52.7% 51.4% 50.5% 49.6% 52.4%

Class of

B. 2010 Fall Enrollment Report

• Between Fall 2009 and Fall 2010, headcount enrollment in the Arizona University system rose 3.3 percent with undergraduate enrollment up 4.3 percent and graduate enrollment down 0.4 percent. Overall, Arizona State University reported an increase of 3.5 percent, Northern Arizona University reported a 6.9 percent increase, and the University of Arizona reported a 0.8 percent increase.

• FTE enrollment rose even more rapidly, rising 4.7 percent for undergraduate students and 3.8 percent for graduate students in Fall 2010 compared to Fall 2009. Overall FTE enrollment is up 4.5 percent. At Arizona State University, FTE enrollment grew 3.9 percent while Northern Arizona University reported 9.0 percent growth and the University of Arizona reported 3.0 percent growth.

• Headcount and FTE enrollment in the last five years have grown 11.6 percent and 17.9 percent respectively.

• Non-resident undergraduate students comprise 25.0 percent of the Arizona University System student body. Arizona State University (22.4%), Northern Arizona University (24.5%) and the University of Arizona (30.0%) are within the policy limitation for non-resident undergraduate students. In January 2009, the Board temporarily modified ABOR Policy 2-103A, raising the limit from 30 percent to 40 percent for 2 years.



Undergrad Graduate Total Undergrad Graduate Total

ASU 56,562 13,878 70,440 56,210 12,418 68,628

ASU at Tempe 47,969 10,402 58,371 40,755 9,028 49,783

ASU at West 9,971 1,842 11,813 4,871 1,229 6,100

ASU at Polytechnic 8,795 957 9,752 4,575 461 5,036

11,594 1,973 13,567 6,009 1,700 7,709

NAU 19,954 4,971 24,925 19,018 3,538 22,555

NAU - Yuma 531 154 685 456 115 571

UA 30,592 8,494 39,086 29,994 7,099 37,093

UA South 777 79 856 427 44 471

TOTAL 107,108 27,343 134,451 105,222 23,054 128,276

Headcount FTE

Arizona University System Fall 2010 Enrollment

ASU at Downtown

Composition and trends of headcount enrollment by student level.

10,000

15,000

20,000

25,000

30,000

35,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Arizona University SystemEnrollment by Level, 1997-2010

Senior

Junior

Sophomore

Freshman



Distribution of non-resident undergraduate and graduate students.

0%

10%

20%

30%

40%

ASU NAU UA AUS

Arizona University System, Fall 2010 Percentage of Students Who Are Non-Resident

Undergraduate Graduate Total

ABOR Policy 2‐103A was modified in January 2009 to raise the limit from 30% to 40% for undergraduate students for 2 years.



TABLE 1Arizona University System 21st Day Headcount and 45th Day FTE

2006 - 2010

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010Undergrad 50,755 51,311 53,298 54,277 56,562 48,164 49,119 51,778 54,092 56,210

ASUa Grad 12,523 13,083 13,784 13,787 13,878 9,791 10,470 11,278 11,945 12,418Total 63,278 64,394 67,082 68,064 70,440 57,954 59,589 63,056 66,037 68,628Undergrad 41,815 41,626 42,607 45,267 47,969 37,357 37,251 37,475 39,243 40,755Grad 9,419 9,855 10,127 10,285 10,402 7,710 8,149 8,408 8,648 9,028Total 51,234 51,481 52,734 55,552 58,371 45,067 45,400 45,883 47,892 49,783Undergrad 6,941 7,271 7,792 8,451 9,971 5,692 5,938 6,208 5,121 4,871Grad 1,270 1,393 1,780 1,929 1,842 711 931 1,377 1,403 1,229Total 8,211 8,664 9,572 10,380 11,813 6,402 6,869 7,584 6,524 6,100Undergrad 5,589 7,813 8,531 8,163 8,795 3,006 3,799 4,644 4,597 4,575Grad 956 939 1,083 983 957 446 438 541 435 461Total 6,545 8,752 9,614 9,146 9,752 3,453 4,237 5,184 5,032 5,036Undergrad 5,081 5,354 7,124 9,744 11,594 2,109 2,133 3,451 5,131 6,009Grad 1,148 1,241 1,307 1,759 1,973 924 952 952 1,459 1,700Total 6,229 6,595 8,431 11,503 13,567 3,033 3,085 4,404 6,590 7,709Undergrad 14,364 15,421 16,654 18,083 19,954 13,309 14,300 15,535 17,128 19,018

NAU Grad 5,978 5,699 5,653 5,237 4,971 3,914 3,712 3,733 3,572 3,538Total 20,342 21,120 22,307 23,320 24,925 17,223 18,012 19,268 20,700 22,555Undergrad 28,442 29,070 29,719 30,346 30,592 26,971 27,440 28,200 29,314 29,994

UA Grad 8,363 8,147 8,338 8,421 8,494 6,621 6,404 6,546 6,683 7,099Total 36,805 37,217 38,057 38,767 39,086 33,592 33,843 34,745 35,996 37,093Undergrad 93,561 95,802 99,671 102,706 107,108 88,444 90,859 95,513 100,534 105,222

AUS Grad 26,864 26,929 27,775 27,445 27,343 20,326 20,586 21,557 22,200 23,054Total 120,425 122,731 127,446 130,151 134,451 108,769 111,444 117,069 122,734 128,276

Percentage Change in Headcount and FTE from Previous Year

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010Undergrad 3.7% 1.1% 3.9% 1.8% 4.2% 3.5% 2.0% 5.4% 4.5% 3.9%Grad 3.7% 4.5% 5.4% 0.0% 0.7% 5.7% 6.9% 7.7% 5.9% 4.0%Total 3.7% 1.8% 4.2% 1.5% 3.5% 3.9% 2.8% 5.8% 4.7% 3.9%Undergrad 1.4% ‐0.5% 2.4% 6.2% 6.0% ‐2.4% ‐0.3% 0.6% 4.7% 3.9%Grad ‐9.0% 4.6% 2.8% 1.6% 1.1% ‐8.1% 5.7% 3.2% 2.9% 4.4%Total ‐0.7% 0.5% 2.4% 5.3% 5.1% ‐3.4% 0.7% 1.1% 4.4% 3.9%Undergrad 4.8% 4.8% 7.2% 8.5% 18.0% 0.4% 4.3% 4.5% ‐17.5% ‐4.9%Grad 14.0% 9.7% 27.8% 8.4% ‐4.5% 34.9% 30.9% 47.9% 1.9% ‐12.4%Total 6.2% 5.5% 10.5% 8.4% 13.8% 3.3% 7.3% 10.4% ‐14.0% ‐6.5%Undergrad 36.9% 39.8% 9.2% ‐4.3% 7.7% 17.4% 26.4% 22.2% ‐1.0% ‐0.5%Grad 22.3% ‐1.8% 15.3% ‐9.2% ‐2.6% 28.5% ‐1.8% 23.5% ‐19.5% 5.8%Total 34.5% 33.7% 9.8% ‐4.9% 6.6% 18.8% 22.7% 22.4% ‐2.9% 0.1%Undergrad INA 5.4% 33.1% 36.8% 19.0% INA 1.1% 61.8% 48.7% 17.1%Grad INA 8.1% 5.3% 34.6% 12.2% INA 3.0% 0.0% 53.2% 16.5%Total INA 5.9% 27.8% 36.4% 17.9% INA 1.7% 42.8% 49.6% 17.0%Undergrad 7.1% 7.4% 8.0% 8.6% 10.3% 5.5% 7.4% 8.6% 10.3% 11.0%

NAU Grad 6.8% ‐4.7% ‐0.8% ‐7.4% ‐5.1% 2.9% ‐5.2% 0.6% ‐4.3% ‐1.0%Total 7.1% 3.8% 5.6% 4.5% 6.9% 4.9% 4.6% 7.0% 7.4% 9.0%Undergrad ‐0.1% 2.2% 2.2% 2.1% 0.8% 0.1% 1.7% 2.8% 3.9% 2.3%

UA Grad ‐2.5% ‐2.6% 2.3% 1.0% 0.9% ‐3.0% ‐3.3% 2.2% 2.1% 6.2%Total ‐0.6% 1.1% 2.3% 1.9% 0.8% ‐0.5% 0.7% 2.7% 3.6% 3.0%Undergrad 3.0% 2.4% 4.0% 3.0% 4.3% 2.8% 2.7% 5.1% 5.3% 4.7%

AUS Grad 2.3% 0.2% 3.1% ‐1.2% ‐0.4% 2.2% 1.3% 4.7% 3.0% 3.8%Total 2.9% 1.9% 3.8% 2.1% 3.3% 2.6% 2.5% 5.0% 4.8% 4.5%

a =Unduplicated headcount at ASU.

INA = Information Not Available.

Details may not add due to rounding.

ASU West

ASU Polytechnic

ASU Downtown

ASUa

ASU Tempe

Headcount FTE

ASU Tempe

ASU West

ASU Polytechnic

ASU Downtown

Headcount FTE



ARIZONA UNIVERSITYASU ASU Tempe

F.T.E. F.T.E. F.T.E. F.T.E. F.T.E. F.T.E. F.T.E. F.T.E. F.T.E. F.T.E.2010-11 70,440 69,459 58,371 50,397 11,813 6,173 9,752 5,106 13,567 7,783 24,925 22,746 685 572 39,086 37,448 856 474 134,451 129,6522009-10 68,064 e 66,988 55,552 48,623 10,380 6,604 9,146 5,106 11,503 6,655 23,320 20,980 674 d 513 d 38,767 36,527 861 d 491 d 130,151 e 124,4952008-09 67,082 e 64,011 52,734 46,595 9,572 7,694 9,614 5,271 8,431 4,451 22,307 c 19,537 625 d 467 d 38,057 c 35,195 623 d 369 d 127,446 e 118,7432007-08 64,394 e 60,543 a 51,481 46,156 a 8,664 6,965 a 8,752 4,309 a 6,595 3,113 a 21,120 c 18,281 a 631 d 481 d 37,217 c 34,268 a 525 d 332 d 122,731 e 113,092 a2006-07 63,278 e 59,068 a 51,234 45,959 a 8,211 6,528 a 6,545 3,521 a 6,229 3,059 a 20,342 c 17,489 a 700 d 518 d 36,805 c 34,023 a 557 d 340 d 120,425 e 110,580 a2005-06 61,033 e 56,900 51,612 47,638 7,734 6,309 4,865 2,953 --- --- 19,002 c 16,628 675 d 529 d 37,036 c 34,237 865 d 496 d 117,071 e 107,7652004-05 58,156 e 53,873 49,171 45,332 7,348 5,947 3,983 2,594 --- --- 19,311 c 16,794 720 d 573 d 36,932 c 34,018 799 d 451 d 114,399 e 104,6852003-04 57,543 e 52,265 48,901 44,360 7,105 5,616 3,551 2,289 --- --- 18,964 c 16,389 651 d 476 d 37,083 c 33,807 776 d 427 d 113,590 e 102,4612002-03 55,491 e 49,980 47,359 42,951 6,630 5,053 3,126 1,976 --- --- 19,907 17,189 --- --- 36,847 c 33,089 485 d 304 d 112,245 e 100,2582001-02 52,759 e 47,086 a 45,693 41,157 5,804 4,387 2,403 1,542 --- --- 19,728 17,057 a --- --- 35,747 c 32,460 a 378 d 256 d 108,234 e 96,6032000-01 50,365 e 44,637 44,126 39,654 a 5,325 3,817 a 1,939 1,166 a --- --- 19,964 17,107 --- --- 34,488 c 30,981 350 d 239 d 104,817 e 92,7251999-00 49,700 e 43,910 44,215 39,295 a 4,943 3,658 a 1,466 957 a --- --- 19,981 17,293 a --- --- 34,326 c 31,008 a 379 d 257 d 104,007 e 92,211 a1998-99 48,922 e 42,946 43,732 38,745 a 4,880 3,456 a 1,095 745 a --- --- 19,940 17,484 a --- --- 34,327 c 30,733 a 376 d 257 d 103,189 e 91,163 a1997-98 49,243 e 43,105 44,255 39,109 4,807 3,332 1,052 664 --- --- 19,618 17,183 --- --- 33,737 c 30,403 338 d 239 d 102,598 e 90,6911996-97 47,051 e 40,910 42,463 37,094 4,640 3,191 1,016 625 --- --- 19,605 17,193 --- --- 33,504 c 29,724 270 d 189 d 100,160 e 87,8271995-96 45,929 e 39,552 42,040 36,334 4,770 3,181 110 37 --- --- 20,131 17,592 --- --- 34,777 c 31,042 177 d 138 d 100,837 e 88,1861994-95 45,766 e 39,147 42,189 36,153 4,681 2,994 --- --- --- --- 19,242 16,875 --- --- 35,306 c 31,314 --- --- 100,314 e 87,3361993-94 44,550 e 37,985 41,250 35,179 4,495 2,806 --- --- --- --- 18,817 16,387 a --- --- 35,279 c 31,381 --- --- 98,646 e 85,7531992-93 43,635 e 36,949 40,444 34,180 4,946 2,769 --- --- --- --- 18,491 16,377 --- --- 35,129 c 30,888 --- --- 97,255 e 84,2141991-92 42,626 e 35,799 39,903 33,517 a 4,414 2,282 a --- --- --- --- 17,698 15,987 a --- --- 35,220 c 31,140 a --- --- 95,544 e 82,926 a1990-91 42,952 e 36,039 40,454 34,005 a 4,150 2,034 a --- --- --- --- 16,994 15,006 a --- --- 35,735 c 31,507 a --- --- 95,681 e 82,552 a1989-90 43,546 e 36,245 41,267 34,581 a 3,799 1,664 a --- --- --- --- 16,095 14,208 a --- --- 36,676 c 31,842 a --- --- 96,317 e 82,295 a1988-89 43,426 e 35,893 41,438 34,573 a 3,330 1,320 a --- --- --- --- 15,059 13,233 a --- --- 34,725 c 30,112 a --- --- 93,210 e 79,238 a1987-88 42,968 e 35,216 41,169 34,158 a,b 2,979 1,058 a,b --- --- --- --- 13,445 11,945 a,b --- --- 33,009 29,031 a,b --- --- 89,422 e 76,192 a,b1986-87 41,542 e 31,115 39,398 30,473 a 2,142 642 a --- --- --- --- 13,208 10,973 a --- --- 31,569 25,799 a --- --- 86,319 e 67,887 a1985-86 40,556 e 30,230 38,029 29,555 a 2,529 675 a --- --- --- --- 12,615 10,393 a --- --- 30,864 25,438 a --- --- 84,035 e 66,061 a1984-85 40,563 e 30,702 38,317 30,086 a 2,246 616 a --- --- --- --- 11,826 10,158 a --- --- 30,306 24,846 a --- --- 82,695 e 65,706 a1983-84 40,239 e 31,164 40,239 31,164 a --- --- --- --- --- --- 11,501 10,141 a --- --- 30,460 25,184 a --- --- 82,200 e 66,489 a1982-83 39,319 e 30,629 39,319 30,629 a --- --- --- --- --- --- 11,665 10,220 a --- --- 30,669 25,406 a --- --- 81,653 e 66,255 a1981-82 38,590 e 29,984 38,590 29,984 a --- --- --- --- --- --- 12,090 a 10,525 a --- --- 31,276 a 26,059 a --- --- 81,956 e 66,568 a1980-81 37,828 e 29,783 37,828 29,783 a --- --- --- --- --- --- 12,074 10,675 a --- --- 30,960 25,959 a --- --- 80,862 e 66,417 a1979-80 37,755 e 29,581 37,755 29,581 a --- --- --- --- --- --- 11,601 a 10,240 a --- --- 29,923 25,017 a --- --- 79,279 e 64,838 a1978-79 37,122 e 28,988 37,122 28,988 a --- --- --- --- --- --- 11,301 9,868 a --- --- 28,954 24,386 a --- --- 77,377 e 63,242 a1977-78 35,278 e 28,322 35,278 28,322 a --- --- --- --- --- --- 12,023 10,022 a --- --- 28,658 24,503 a --- --- 75,959 e 62,847 a1976-77 34,366 e 27,607 34,366 27,607 a --- --- --- --- --- --- 10,579 9,417 a --- --- 28,881 24,584 a --- --- 73,826 e 61,608 a1975-76 36,441 e 28,184 36,441 28,184 a --- --- --- --- --- --- 10,086 9,174 a --- --- 28,538 25,049 a --- --- 75,065 e 62,407 a1974-75 31,021 e 25,996 31,021 25,996 --- --- --- --- --- --- 9,133 8,367 --- --- 26,535 23,388 --- --- 66,689 e 57,7511973-74 28,724 e 24,390 28,724 24,390 --- --- --- --- --- --- 8,763 8,048 --- --- 27,033 24,201 --- --- 64,520 e 56,6391972-73 27,322 e 23,571 27,322 23,571 --- --- --- --- --- --- 8,351 7,975 --- --- 26,521 23,480 --- --- 62,194 e 55,0261971-72 26,564 e 23,377 26,564 23,377 --- --- --- --- --- --- 8,888 8,234 --- --- 26,334 23,895 --- --- 61,786 e 55,5061970-71 26,425 e 23,022 26,425 23,022 --- --- --- --- --- --- 8,160 7,804 --- --- 25,633 23,238 --- --- 60,218 e 54,0641969-70 21,815 25,139 21,815 --- --- --- --- --- --- 7,747 7,370 --- --- 24,600 22,297 --- --- 57,486 51,4821968-69 20,164 23,341 20,164 --- --- --- --- --- --- 7,216 6,905 --- --- 22,949 21,454 --- --- 53,506 48,523

a = Auditedb = A revised formula calculating Upper Division FTE w as adopted by the Board in July 1987 and w as used in 1987-88 and subsequent years.c = NAU headcount includes NAU-Yuma (unduplicated) and U/A headcount includes UA South (unduplicated).d = NAU-Yuma enrollment continues to be included in NAU total, and UA South enrollment continues to be included in UA total.e = Unduplicated headcount at ASU.Details may not add due to rounding.

TABLE 2ENROLLMENTS FOR FALL SEMESTER

SYSTEM TOTALASU West NAU

HEADCOUNT AND FULL-TIME EQUIVALENT (21st Day)

NAU - Yuma UA South ASU Polytechnic UAASU DowntownHC HC HC HCHC HC HCHC HCHC



C. Annual Report on Majors and Degrees Awarded

Degrees Awarded In 2009-10, the Arizona university system awarded 21,037 bachelor’s degrees and 8,521 graduate degrees. This is an increase of 743 (3.7 percent) bachelor’s degrees and a decrease of 9 graduate degrees compared to the prior academic year. Compared to ten years ago, the universities have increased the number of bachelor degrees awarded by 5,226 (33.1 percent) and the number of graduate degrees by 1,707 (25.1 percent). In 2009-10, Arizona State University awarded the largest number of bachelor’s degrees at 11,810 (56.1 percent), followed by the University of Arizona at 5,827 (27.7 percent), and Northern Arizona University at 3,400 (16.2 percent). For graduate degrees awarded in 2009-10, Arizona State University conferred 4,570 (53.6 percent), Northern Arizona University conferred 1,790 (21.0 percent), and the University of Arizona conferred 2,161 (25.4 percent). Significant growth has been recorded in the last year in the number of science, technology, engineering or math (STEM) degrees awarded. The increases have been: Bachelors – 26 percent, Masters – 72 percent, Doctoral – 14 percent, All Degrees – 32 percent.



AcademicYear Undergraduate Graduate Total Undergraduate Graduate Total Undergraduate Graduate Total Undergraduate Graduate Total

1980‐81 10,134 3,830 13,964 5,032 1,495 6,527 1,551 439 1,990 3,551 1,896 5,4471981‐82 10,325 3,839 14,164 4,894 1,487 6,381 1,681 439 2,120 3,750 1,913 5,6631982‐83 10,507 3,886 14,393 4,935 1,468 6,403 1,684 484 2,168 3,888 1,934 5,8221983‐84 10,409 3,697 14,106 4,985 1,449 6,434 1,656 463 2,119 3,768 1,785 5,5531984‐85 10,678 3,737 14,415 5,250 1,499 6,749 1,708 475 2,183 3,720 1,763 5,4831985‐86 10,168 3,661 13,829 5,151 1,438 6,589 1,536 480 2,016 3,481 1,743 5,2241986‐87 10,618 3,679 14,297 5,445 1,413 6,858 1,521 548 2,069 3,652 1,718 5,3701987‐88 10,620 3,971 14,591 5,360 1,577 6,937 1,600 533 2,133 3,660 1,861 5,5211988‐89 11,255 4,156 15,411 5,579 1,760 7,339 1,657 622 2,279 4,019 1,774 5,7931989‐90 11,582 4,399 15,981 5,558 1,879 7,437 1,906 702 2,608 4,118 1,818 5,9361990‐91 12,244 4,731 16,975 5,912 2,027 7,939 2,106 820 2,926 4,226 1,884 6,1101991‐92 12,921 4,823 17,744 6,012 1,892 7,904 2,322 1,005 3,327 4,587 1,926 6,5131992‐93 13,871 5,181 19,052 6,431 2,207 8,638 2,592 1,036 3,628 4,848 1,938 6,7861993‐94 13,749 5,635 19,384 6,307 2,325 8,632 2,693 1,203 3,896 4,749 2,107 6,8561994‐95 13,880 6,089 19,969 6,519 2,587 9,106 2,554 1,457 4,011 4,807 2,045 6,8521995‐96 14,062 6,082 20,144 6,545 2,520 9,065 2,905 1,476 4,381 4,612 2,086 6,6981996‐97 14,489 6,340 20,829 6,880 2,676 9,556 2,832 1,554 4,386 4,777 2,110 6,8871997‐98 15,335 6,532 21,867 7,312 2,781 10,093 2,751 1,744 4,495 5,272 2,007 7,2791998‐99 15,402 6,672 22,074 7,507 2,938 10,445 3,041 1,737 4,778 4,854 1,997 6,8511999‐00 15,811 6,814 22,625 7,940 2,923 10,863 2,939 1,917 4,856 4,932 1,974 6,9062000‐01 15,531 6,761 22,292 7,742 2,870 10,612 2,867 1,947 4,814 4,922 1,944 6,8662001‐02 16,005 7,093 23,098 8,190 3,088 11,278 2,834 2,039 4,873 4,981 1,966 6,9472002‐03 16,977 7,280 24,257 8,566 3,237 11,803 3,059 2,009 5,068 5,352 2,034 7,3862003‐04 17,358 7,723 25,081 9,116 3,410 12,526 2,939 2,125 5,064 5,303 2,188 7,4912004‐05 18,420 7,277 25,697 9,729 3,092 12,821 2,942 2,008 4,950 5,749 2,177 7,9262005‐06 18,396 7,358 25,754 9,855 3,200 13,055 2,928 2,014 4,942 5,613 2,144 7,7572006‐07 18,658 7,555 26,213 10,137 3,492 13,629 2,953 1,849 4,802 5,568 2,214 7,7822007‐08 19,281 7,783 27,064 10,706 3,738 14,444 2,963 1,850 4,813 5,612 2,195 7,8072008‐09 20,294 8,530 28,824 11,229 4,381 15,610 3,151 1,822 4,973 5,914 2,327 8,2412009‐10 21,037 8,521 29,558 11,810 4,570 16,380 3,400 1,790 5,190 5,827 2,161 7,988

Arizona University System Arizona State University Northern Arizona University University of Arizona

Degrees Awarded in the Arizona University System



0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Degrees Awarded 1980‐81 through 2009‐10

Arizona State University Northern Arizona University

University of Arizona Arizona University System

0

5,000

10,000

15,000

20,000

25,000

Undergraduate Degrees Awarded from 1980‐81 through 2009‐10

Arizona State University Northern Arizona University

University of Arizona Arizona University System



0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1980

‐81

1981

‐82

1982

‐83

1983

‐84

1984

‐85

1985

‐86

1986

‐87

1987

‐88

1988

‐89

1989

‐90

1990

‐91

1991

‐92

1992

‐93

1993

‐94

1994

‐95

1995

‐96

1996

‐97

1997

‐98

1998

‐99

1999

‐00

2000

‐01

2001

‐02

2002

‐03

2003

‐04

2004

‐05

2005

‐06

2006

‐07

2007

‐08

2008

‐09

2009

‐10

Graduate Degrees Awarded from 1980‐81 through 2009‐10

Arizona State University Northern Arizona UniversityUniversity of Arizona Arizona University System



PART II: Majors Awarded

Bachelor Majors

Awarded

Master Majors

Awarded

First Professional

Majors Awarded

Doctoral Majors

AwardedCIP CIP Code Description1 Agriculture, and Related Sciences 169 41 103 Natural Resources and Conservation 158 91 214 Architecture and Related Services 344 111 85 Area, Ethnic, Cultural, and Gender Studies 174 48 89 Communication, Journalism, and Related Programs 1,430 61 1710 Communications Technologies/Technicians & Support 1311 Computer and Information Sciences & Support Services 293 150 2312 Personal and Culinary Services13 Education 1,936 2,540 16214 Engineering 956 514 13515 Engineering Technologies/Technicians 213 5416 Foreign Languages, Literatures, and Linguistics 399 46 1819 Family and Consumer Sciences/Human Sciences 426 49 522 Legal Professions and Studies 41 327 423 English Language and Literatures/Letters 608 135 2624 Liberal Arts and Sciences, General Studies & Humanities 447 5425 Library Science 12226 Biological and Biomedical Sciences 1,382 99 7927 Mathematics and Statistics 181 43 3728 ROTC29 Military Technologies30 Multi/Interdisciplinary Studies 1,193 34 331 Parks, Recreation, Leisure and Fitness Studies 449 12 538 Philosophy and Religious Studies 191 12 439 Theology and Religious Vocations40 Physical Sciences 292 124 11541 Science Technologies and Technicians 20242 Psychology 1,262 82 5643 Security and Protective Services 395 29 1244 Public Administration and Social Service Professions 200 371 845 Social Sciences 1,855 160 7746 Construction Trades47 Mechanic and Repair Technologies/Technicians48 Precision Production49 Transportation and Materials Moving 4750 Visual and Performing Arts 1,271 190 7051 Health Professions and Related Clinical Sciences 1,110 307 192 11152 Business, Management, Marketing, and Related Support 3,826 1,407 2154 History 397 26 17

TOTAL 21,819 6,953 519 1,052

STEM Degrees (NCES Definition) 3,584 958 348

Arizona University System Majors Awarded in 2009-10



Bachelor Majors

Awarded

Master Majors

Awarded

First Professional

Majors Awarded

Doctoral Majors

AwardedCIP CIP Code Description1 Agriculture, and Related Sciences 78 183 Natural Resources and Conservation 44 49 14 Architecture and Related Services 178 73 85 Area, Ethnic, Cultural, and Gender Studies 709 Communication, Journalism, and Related Programs 866 46 1210 Communications Technologies/Technicians & Support 1311 Computer and Information Sciences & Support Services 210 98 1812 Personal and Culinary Services13 Education 995 1,110 7714 Engineering 594 410 9715 Engineering Technologies/Technicians 71 5416 Foreign Languages, Literatures, and Linguistics 140 16 319 Family and Consumer Sciences/Human Sciences 294 4322 Legal Professions and Studies 25 16623 English Language and Literatures/Letters 310 37 1124 Liberal Arts and Sciences, General Studies & Humanities 127 4325 Library Science26 Biological and Biomedical Sciences 651 36 2827 Mathematics and Statistics 75 16 2328 ROTC29 Military Technologies30 Multi/Interdisciplinary Studies 968 2731 Parks, Recreation, Leisure and Fitness Studies 357 12 538 Philosophy and Religious Studies 103 11 239 Theology and Religious Vocations40 Physical Sciences 67 14 3041 Science Technologies and Technicians 7542 Psychology 636 40 2943 Security and Protective Services 358 29 1244 Public Administration and Social Service Professions 126 346 845 Social Sciences 909 60 3246 Construction Trades47 Mechanic and Repair Technologies/Technicians48 Precision Production49 Transportation and Materials Moving 4750 Visual and Performing Arts 759 115 4351 Health Professions and Related Clinical Sciences 453 152 3452 Business, Management, Marketing, and Related Support 2,166 1,021 954 History 219 13 8

TOTAL 11,959 3,914 166 490


Arizona State University Majors Awarded in 2009-10



Bachelor Majors

Awarded

Master Majors

Awarded

First Professional

Majors Awarded

Doctoral Majors

AwardedCIP CIP Code Description1 Agriculture, and Related Sciences3 Natural Resources and Conservation 68 28 54 Architecture and Related Services5 Area, Ethnic, Cultural, and Gender Studies 129 Communication, Journalism, and Related Programs 194 1010 Communications Technologies/Technicians & Support11 Computer and Information Sciences & Support Services 1112 Personal and Culinary Services13 Education 585 1,229 2114 Engineering 84 1515 Engineering Technologies/Technicians16 Foreign Languages, Literatures, and Linguistics 41 219 Family and Consumer Sciences/Human Sciences22 Legal Professions and Studies23 English Language and Literatures/Letters 72 6824 Liberal Arts and Sciences, General Studies & Humanities 319 1125 Library Science26 Biological and Biomedical Sciences 180 17 427 Mathematics and Statistics 14 728 ROTC29 Military Technologies30 Multi/Interdisciplinary Studies 2 131 Parks, Recreation, Leisure and Fitness Studies 9238 Philosophy and Religious Studies 1439 Theology and Religious Vocations40 Physical Sciences 90 1541 Science Technologies and Technicians 12042 Psychology 166 17 643 Security and Protective Services44 Public Administration and Social Service Professions 45 245 Social Sciences 295 57 646 Construction Trades47 Mechanic and Repair Technologies/Technicians48 Precision Production49 Transportation and Materials Moving50 Visual and Performing Arts 191 851 Health Professions and Related Clinical Sciences 321 43 4652 Business, Management, Marketing, and Related Support 685 16254 History 34 9 1

TOTAL 3,635 1,699 91

STEM Degrees (NCES Definition) 567 82 9

Northern Arizona University Majors Awarded in 2009-10



Bachelor Majors

Awarded

Master Majors

Awarded

First Professional

Majors Awarded

Doctoral Majors

AwardedCIP CIP Code Description1 Agriculture, and Related Sciences 91 23 103 Natural Resources and Conservation 46 14 154 Architecture and Related Services 166 385 Area, Ethnic, Cultural, and Gender Studies 92 48 89 Communication, Journalism, and Related Programs 370 5 510 Communications Technologies/Technicians & Support11 Computer and Information Sciences & Support Services 72 52 512 Personal and Culinary Services13 Education 356 201 6414 Engineering 278 89 3815 Engineering Technologies/Technicians 14216 Foreign Languages, Literatures, and Linguistics 218 30 1319 Family and Consumer Sciences/Human Sciences 132 6 522 Legal Professions and Studies 16 161 423 English Language and Literatures/Letters 226 30 1524 Liberal Arts and Sciences, General Studies & Humanities 125 Library Science 12226 Biological and Biomedical Sciences 551 46 4727 Mathematics and Statistics 92 20 1428 ROTC29 Military Technologies30 Multi/Interdisciplinary Studies 223 6 331 Parks, Recreation, Leisure and Fitness Studies38 Philosophy and Religious Studies 74 1 239 Theology and Religious Vocations40 Physical Sciences 135 95 8541 Science Technologies and Technicians 742 Psychology 460 25 2143 Security and Protective Services 3744 Public Administration and Social Service Professions 29 2345 Social Sciences 651 43 3946 Construction Trades47 Mechanic and Repair Technologies/Technicians48 Precision Production49 Transportation and Materials Moving50 Visual and Performing Arts 321 67 2751 Health Professions and Related Clinical Sciences 336 112 192 3152 Business, Management, Marketing, and Related Support 975 224 1254 History 144 4 8

TOTAL 6,225 1,340 353 471


University of Arizona Majors Awarded in 2009-10



Contact Information: Kathy Bedard (ABOR) 602-229-2546 [email protected] Fred Hurst (NAU) 928-523-6598 [email protected]

Item Name: Reduction in TRIF Investment in Arizona Universities Network (AZUN)


Background • In 1999, the Regents agreed to explore a system-wide collaborative process to

develop distance learning options for Arizona students. The Regents wanted to promote “any time, any place education” with a focus on working and rural students. The Regents also wanted students to be able to take courses from all three universities to complete a degree entirely online.

• In March 2000, the Arizona Board of Regents established Arizona Regents University (ARU)—later renamed the Arizona Universities Network (AZUN)—to provide online learning opportunities to Arizona students through a consortium of Arizona’s three public universities.

• Through Memoranda of Understanding (MOU) between the Arizona Board of

Regents and Northern Arizona University, NAU has had management responsibility over AZUN since January of 2005. The current MOU is set to expire on June 30, 2013.

• The Board has approved an annual allocation of Technology and Research Initiative

Funds (TRIF) to NAU for AZUN management, with $2.8 million allocated in FY 2005, declining to approximately $1.6 million in FY 2011. Annual TRIF funding fluctuates with the level of TRIF revenues (Proposition 301/November 2000 sales tax referendum) received by ABOR.

• From FY 2000 through FY 2011, $20,226,828 of TRIF funding has been invested in

AZUN and in its predecessor, ARU. • In June 2008, the Board granted Project Implementation Approval and Project

Approval for the construction of an AZUN facility on the NAU Flagstaff campus. That approval contemplated that the debt service on System Revenue Bonds used to finance the project would be paid, in part, with an annual allocation of $500,000 from TRIF funds, through at least June 30, 2021, the current expiration of Proposition 301 sales tax.

Issue: The Board is asked to reduce its Technology and Research Initiative Fund (TRIF) investment in Arizona Universities Network (AZUN) as recommended by the Enterprise Executive Council..



• The Enterprise Executive Council has recommended that the annual funding of

approximately $1.6 million to NAU to support AZUN management be discontinued as of June 30, 2011. TRIF funds in the approximate amount of $1.1 million, as detailed in the proposed FY 2012-2016 budget on page 3, will continue to be allocated to NAU to pay debt service on the AZUN facility and to pay continuing costs for AZUN-funded degree programs offered by NAU to current and future students.

• The Arizona Higher Education Enterprise Report contemplates modification to

Arizona’s approach to distance and online learning. Each university will review and propose enhancements to its individual online learning and distance education opportunities.

Discussion • The Enterprise Executive Committee proposes that the Board reduce its annual

TRIF investment in AZUN to approximately $1.1 million to support degree programs and debt service at Northern Arizona University because under the Enterprise Model, each university is now responsible for developing and providing its own online programs and services.

• The Board will maintain oversight of all university online programs and distance education services through its Academic Affairs Committee.

Statutory/Policy Requirements • A.R.S. §15-1648 establishes the Technology and Research Initiative Fund (TRIF) to

receive Proposition 301 revenue and gives the Arizona Board of Regents the authority to administer the fund.

• ABOR Policy 3-412 Administration of Technology and Research Initiative Fund governs use of TRIF funds.

Strategic Implications • It is anticipated that each university will enhance its online and distance learning

programs to meet the degree production goals of 2020 Vision. Recommendation to the Board • It is recommended that the Board reduce its TRIF investment in Arizona Universities

Network (AZUN) and terminate the current Memorandum of Understanding between the Arizona Board of Regents and Northern Arizona University for the management of AZUN, as described in this Executive Summary.



ARIZONA BOARD OF REGENTSPROPOSED REDUCTION IN TECHNOLOGY AND RESEARCH INITIATIVE FUND (TRIF) SUPPORT FOR

ARIZONA UNIVERSITIES NETWORK - NAU LEADERSHIP

FY 2011 FY 2012-16 FY 2010

REVENUE:

ABOR-APPROVED

BUDGET

PROPOSED ONGOING TRIF

$ TO NAU

ACTUAL NUMBER OF STUDENTS

SERVED New TRIF Revenue $1,569,293 $1,127,207 TRIF Carryforward $518,461 $0 SUBTOTAL REVENUE $2,087,754 $1,127,207

BUDGETED EXPENDITURES:OPERATIONAL

Campus Coordinators Salary/ERE 175,831

Maintain Course Catalog Only (with ongoing cooperation from ASU/UA) 99,526 20,000

Needs Assessment Trend Data 27,500

Student Services 49,526 51,458 815

Marketing 74,450

Teacher Education Bachelor(2+2) 314,046 345,172 356

Speech Language Pathology Assistant Certificate 66,476 66,476 132

Law Enforcement Bachelor (2+2

upside-down) 92,232 125,307 55

Fire Science Bachelor Completion

(2+2 upside-down) 51,396 18,794 272

Master of Administration and Bachelor

in Public Agency Service 28,502ARRO/AZUN: Advancing Arizona through a Web-Based Initiative 60,000

STEM Program - Direct High School Instruction 40,000

Assistant Dean for AZUN (Articulation Planning/Coordination) 108,340

Develop/Deliver Short Format Web

Courses 205,432

Develop/Deliver High-Capacity

Undergraduate Web Courses 184,897

FF&E for Offices - New Distance Learning/AZUN Facility (new sign) 4,000

All Other Operating 5,600

SUBTOTAL OPERATIONAL EXPENDITURES $1,587,754 $627,207

CAPITAL

Debt Service - Distance Learning/AZUN Facility 500,000 500,000

TOTAL BUDGETED EXPENDITURES $2,087,754 $1,127,207

FY 2012-16 ANNUAL TRIF FUNDING RELEASED FOR BOARD ALLOCATION TO UNIVERSITIES UNDER 2:2:1 SPLIT $442,086



Contact Information: Dr. Karen Nicodemus, Getting AHEAD 520-236-7250 [email protected] Stephanie Jacobson, ABOR 602-229-2529 [email protected]

Item Name: Report from Getting AHEAD


Background • Getting AHEAD a multi-year collaborative effort, funded by the Lumina Foundation

for education, to increase post-secondary degree production by Arizona’s public community colleges and universities.

• The purpose of the Arizona’s Getting AHEAD - Access to Higher Education and Degrees initiative is to complete a comprehensive redesign of the state’s higher education system in order to expand capacity, serve more students at lower cost, and achieve completion and degree goals.

• In order to achieve the desired outcomes in an efficient manner, five committees are working collaboratively on core elements of the project. New Institutional Structures is addressing and policy issues needed to promote new partnerships between community colleges and universities. Governance and Coordination, The Joint Council of Presidents, representing all community colleges and universities, oversees Getting AHEAD’s legislative strategies and the state’s transfer and articulation partnerships. Student Center Advising and Career Planning, to promote and enhance online tools that help students move through college to degree completion. Higher Education Finance Model, exploring ways to incent colleges and universities to increase degree completion rates. Strategic Engagement and Communications, raising awareness and involvement among internal and external stakeholders in this project.

Issue: The Board will receive a report on Arizona’s participation at Lumina’s National Productivity Conference in November and a progress report from Rebecca McKay from the Student-Centered Advising and Career Planning Committee of Getting AHEAD, Arizona’s program implementing the Lumina productivity grant.



Status Report

• National Productivity Conference, November 15-16, 2010, Indianapolis, Indiana. Regent DuVal will report on the third annual conference sponsored by Lumina under their higher education productivity initiative (previous Marking Opportunity Affordable). Arizona participants included: Regent Duval; Speaker of the House Kirk Adams; Debra Raeder Gay, executive director of the Governor’s P-20 Coordinating Council; Dawn Wallace, legislative staff; Jeanne Swarthout, president of Northern Pioneer College and of the Arizona Community College Association; Ted Ferris, consultant and co-chair of Getting Head Higher Education Finance Committee; Debra Thompson, Vice Chancellor for Business and Finance at MCCD and co-chair of the Getting Ahead Higher Education Finance Committee; Glen Nelson, CFO, ABOR; and Dr. Karen Nicodemus, Getting Ahead project director.

• Student-Centered Advising and Career Planning Committee co-chair will describe progress in developing easier to use academic planning tools and progress in developing links with the K-12 system. Please refer to Attachment A.

Strategic Engagement and Communications, Higher Education Finance, and Governance and Coordination Committees provided updates at the previous two Board meetings.

Recommendation to the Board This report is provided for information to the Board.


Item #6 Attachment A Page 3 of 3

REPORT ON Getting AHEAD - Online Advising Tools Under Getting AHEAD, the Student-Centered Advising/Career Planning Committee has been given the charge to expand the online tools available on AZTransfer.com to university and community college students. The group was also changed with expanding the website to reach students at the High School level. This year, the committee has achieved the following goals:

○ Exam Equivalency Guide - all exam scores have been articulated to courses offered at each public university and community college statewide. This includes Advanced Placement (AP), College Level Proficiency Exam (CLEP), Dantes (DSST), and International Baccalaureate (IB)

○ High School Dual Enrollment - all courses available for High School Dual Enrollment at any public community college are now identified in the Course Equivalency Guide, along with the university equivalency.

○ Get Started! - This new online tool helps a student navigate the options through higher education. By answering only five questions, we can push the correct resources to students for making future post secondary plans.

○ U.Select Planning Guides - U.Select, the customized report which allows students to enter in course information and see how course work applies to degrees at ASU, NAU or UA, has a greatly improved interface.

Future Plans:

○ ECAP “Course Plan” - work with the Arizona Department of Education to populate the new “Course Plan” tool in AZCIS with AGEC course information. This new tool allows students to preview the courses required at an institution based on an area of study.

○ IDEAL Course Development - IDEAL is Arizona’s eLearning Platform. It has access to professional development, standards based curriculum resources, collaborative tools and school improvement resources. We plan to work with IDEAL to develop a training course for advisors and councilors on the online advising tools available in Arizona.

○ Get The Word Out - work with the Strategic Communications & Engagement group for Getting AHEAD to let the public know about AZTransfer.



Contact Information: Richard Gfeller, ABOR [email protected] (602) 229-2592

Item Name: Report from the Audit Committee


AGENDA Audit Committee

December 09, 2010

1. REVIEW OF UNIVERSITIES’ FY2010 ANNUAL REPORTS AND ASSESSMENTS OF FINANCIAL STRENGTH

• The Committee will review the FY2010 audited financial reports and related Assessment of Financial Strength of Arizona State University, Northern Arizona University, and the University of Arizona.

2. INTERNAL AUDIT REPORTS

• The Committee will review internal audit reports and Auditor General

Correspondence.

3. STATUS REPORT REGARDING THE EXTERNAL REVIEWS OF I.T. RISK ASSESSMENTS

• The Committee will review the status of this project.


Issue: The Board will receive a report from Regent Mariucci on the December

9, 2010 Audit Committee meeting.



Contact Information: Morgan R. Olsen, Executive VP, Treasurer and CFO, (480)727-9920;[email protected] Jane Kuhn, Associate Vice President, (928) 523-7732, [email protected] Lorenzo Martinez, ABOR System Office, (602) 229-2525, [email protected]

ITEM NAME: FY 2011 Capital Development Plans Revisions (ASU, NAU)

Action Item Discussion Item Information Item Statutory/Policy Requirements: • Board Policy 7-107 requires Capital Committee review and Board approval of the

annual and mid-year Capital Development Plans (CDP). Strategic Implications: • Board Policy 7-107.C.3 allows universities to expend the lesser of $250,000 or 2% of

project costs in preparation of preliminary design and cost estimates for the CDP.

• Approval of the CDP allows universities to expend the greater of $500,000 or 3% of project costs for additional planning and design in preparation for the next phase of the capital review/approval process.

• A tri-university work group is in the process of developing revisions to the CDP (and

Capital Improvement Plan) format that will incorporate new components to address alignment of capital plans with the long term goals of the 2020 Vision strategic plan and university business plans. This is part of an ongoing effort reviewing the current capital review-approval process to develop recommendations on possible changes that would make the process more efficient and promote strategic discussion on capital planning efforts.

Arizona State University • The ASU Capital Development Plan includes five projects totaling $224 million, and six

third-party projects.

• The projected debt ratio excluding SPEED projects is 5.8%, and remains 5.8% including SPEED projects. SPEED projects are exempt from the debt ratio limit of 8%.

• Based on the debt ratio excluding SPEED projects, the remaining ASU borrowing

capacity is $568 million.

ASU Project Name Est. Cost

Issue: Arizona State University and Northern Arizona University request approval of revisions to their FY 2011 Capital Development Plans. The University of Arizona does not have any revisions to its CDP approved in August 2010.



New Projects 1. Lab Renovations 10,000,000 2. Polytechnic and West Campus Dining Facilities 25,000,000 3. Student Services Facilities 110,000,000

Resubmitted Projects 4. Research Build-Out (Renovations) 20,500,000 5. New Business School Facility 58,500,000

Total 224,000,000 Third-Party Projects

New Projects Vista Del Sol Expansion NA

Resubmitted Projects Manzanita Hall Renovation NA ASU Colleges NA Block 12 Development NA Polytechnic Student Housing NA West Student Housing NA

Northern Arizona University • The NAU Capital Development Plan includes three projects totaling $125.4 million, and

one third-party residence hall project.

• The projected debt ratio excluding SPEED projects is 6.6%, and 8.2% including SPEED projects. SPEED projects are exempt from the debt ratio limit of 8%.

• Based on the debt ratio excluding SPEED projects, the remaining NAU borrowing


NAU Project Name Est. Cost New Projects 1. Science and Health Facility - SPEED 71,900,000 2. Multi-Purpose Facility 28,500,000 3. San Francisco Parking Structure 25,000,000

Total 125,400,000 Third-Party Projects

Resubmitted Projects Residence Hall NA

University of Arizona • The UA Capital Development Plan does not have any revisions. The following provides

a recap of the CDP approved in August 2010, with updated debt ratios.



• The CDP included two projects totaling $97.7 million. UA continues to partner with the City of Tucson for the $130 million Rio Nuevo project (city funded), and the $150 million Modern Streetcar project (non-university funded).

• The projected debt ratio excluding SPEED projects is 5.4%, and 5.8% including SPEED projects. SPEED projects are exempt from the debt ratio limit of 8%.

• Based on the debt ratio excluding SPEED projects, the remaining UA borrowing


UA Project Name Est. Cost 1. Arizona Stadium-North End Zone Expansion 85,700,000 2. Bryant Bannister Tree-Ring Building 12,039,000

Subtotal 97,739,000 Partnership Projects

Rio Nuevo Science Center/Arizona State Museum

130,000,000

Modern Streetcar 150,000,000 Committee Review and Recommendation • The Capital and Project Finance Committee reviewed the revisions to the plans at its

November 18, 2010 meeting and recommended forwarding for Board approval. Recommendation to the Board It is recommended that the Board approve the FY 2011 Capital Development Plan revisions for Arizona State University and Northern Arizona University, as presented in the Executive Summaries.


Item #9A EXECUTIVE SUMMARY Page 1 of 28

Contact: Morgan R. Olsen, Executive Vice President, Treasurer and Chief Financial Officer, (480)727-9920; [email protected]

Action Item: FY 2011 Capital Development Plan Revisions (ASU)


Previous Board Action: FY 2011 CDP June 2010 Statutory/Policy Requirements:

• Pursuant to Board Policy Chapter 7-107, each university shall submit an annual Capital Development Plan (CDP) for the upcoming fiscal year. The CDP also may be considered for mid-year revisions and include the addition of new projects, project budget adjustments, and deletion of projects.

Background:

• Arizona State University requests approval of its FY 2011 Revised Capital Development Plan in accordance with Arizona Board of Regents (ABOR) Policy, Chapter 7. The plan is a comprehensive inventory of major capital projects ASU intends to complete, subject to funding availability and Board Approval, within the next few years.

Alignment with ABOR 20/20 and ASU Strategic Plan Goals and Objectives:

• Projects in the FY 2011 Revised CDP were formulated through careful consideration of the ASU strategic plan and the ABOR 2020 Vision Plan. The projects align with the ASU mission of providing Arizona with “Access to Quality for All,” by increasing bachelor degrees awarded by 47 percent by 2020, and by “enhancing student development and individual student learning.” ASU also seeks to increase the quality and capacity of research, positioning ASU as a national comprehensive university and establishing national standing in academic quality and impact of colleges and schools in every field.

Issue: Arizona State University requests the Board’s approval of revisions to the FY 2011 Capital Development Plan which includes four new projects, one of which is a third-party project, and seven resubmitted projects, five of which are third party-projects. Excluding third-party projects, the CDP totals $224 million.



Changes Since the FY 2011 Capital Development Plan:

• Arizona State University requests that the following projects below be added to its FY 2011 Revised Capital Development Plan. Approval of the Revised CDP would allow ASU to initiate design of the projects.

• New Projects: Projects new to the Plan include the following:

1. Lab Renovations Many existing laboratories and building systems are inadequate and require renovation. This $10 million capital budget component will renovate facilities to accommodate laboratory requirements for new faculty. The project also will renovate laboratory space following successful grant applications.

2. Polytechnic and West Campus Dining Facilities This project will construct approximately 59,000 gross square feet of dining space as a component of the Polytechnic and West Campus Housing projects. Spaces will include dining areas, multipurpose space, kitchens, serving areas, receiving docks, outdoor dining areas, retail space, and offices and workstations. The estimated project cost is $25,000,000.

3. Student Services Facilities The project will create approximately 311,000 gross square feet of new student services space at all campuses, and is being constructed in direct response to student demand and input. The total estimated project cost is $110,000,000.

4. Vista Del Sol Expansion (Third-Party Project) The Vista Del Sol Expansion project will continue to grow the Vista Del Sol development located at the southern end of the ASU Tempe campus. This development created a live-on-campus culture that included on-campus housing, retail, and recreation facilities. The project will be funded by a third-party developer.

• Previously approved projects. The following projects were approved on earlier Capital Development Plans and/or were approved by the Board in the ASU FY 2011 CDP, submitted in June 2010. In compliance with Board Policy 7-107B.5, the projects do not require resubmission for this CDP update, but will be listed on the CDP table. The projects are:

o Research Build-Out o New Business School Facility o Manzanita Hall Renovation



o ASU Colleges o Block 12 Development o Polytechnic Campus Student Housing o West Campus Student Housing

• Projects Removed from the CDP: The Health Services Expansion and

Renovation project was removed from the CDP because the project received ABOR Project Approval. The $14 million Research Lab Renovations Project also has been removed, since all of the projects identified in the Research Lab Renovations Project were under $5 million.

Fiscal Impact and Management Plan:

• The Revised CDP, if fully implemented, is projected to cost a total of $224.0 million

for new capital projects. The funding plan for these projects is as follows: $221.8 million in system revenue bonds (SRBs) and $2.2 million in funding provided by the dining service provider for the Polytechnic and West Campus Dining Facilities. Additionally, ASU plans to issue $54.5 million in SRBs in the winter of FY 2011 to finance previously approved projects. By the end of FY 2013, ASU will have retired $125.9 million of current outstanding debt.

• Debt Ratio Impact: The projected debt ratio previously approved by the Board in the FY 2012-2014 Capital Improvement Plan (CIP) was 5.7%. The ratio remains the same if SPEED projects are included in the ratio. The projected highest debt ratio for the current CDP is 5.8% and remains the same if SPEED projects are included. The increase in the debt ratio is due to the addition of two new projects that were not included in the CIP; $10 million for Research Lab Renovations and $22.8 million for the Polytechnic and West Campus Dining Facilities. The 5.8% debt ratio remains significantly below the maximum statutory limit of 8%.

• The following table identifies the projected incremental debt service for projects included in the FY 2011 Revised CDP:



(1) The total estimated project cost is $25,000,000. The portion that will be debt financed is

$22,800,000 and the remaining $2,200,000 is to be funded by the dining service provider.

Committee Review and Recommendation: • The Capital and Project Finance Committee reviewed the revisions to the plan at its

November 18, 2010 meeting and recommended forwarding for Board approval. Recommendation to the Board It is recommended that the Board grant ASU approval for its FY 2011 Capital Development Plan revisions and authorize ASU to add the following projects to the CDP:

1) Lab Renovations 2) Polytechnic and West Campus Dining Facilities 3) Student Services Facilities 4) Vista Del Sol Expansion (Third-Party Project)

Project Name Amount Financed Debt RatioNew Projects

ASU-Lab Renovations $ 10,000,000 0.04%ASU-Polytechnic and West Campus Dining Facilities (1) 22,800,000 0.09%ASU-Student Services Facilities 110,000,000 0.42%

Previously ApprovedASUT-New Business School Facility 58,500,000 0.22%ASU-Research Build-Out 20,500,000 0.09%Totals: 221,800,000$ 0.86%

Projected Incremental Debt Service - Debt-Financed Projects - FY 2011 Revised CDP

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ATTACHMENT 1

ARIZONA BOARD OF REGENTS

ARIZONA STATE UNIVERSITY FY 2011 REVISED CAPITAL DEVELOPMENT PLAN




Project Project Cost Funding Method * GSF Annual O&MBoard

Approval Status

New ProjectsASU-Lab Renovations 10,000,000$ Bonds (2,4) 802,400$ (a) 33,000 -$ CDP Pending

Previously ApprovedASU-Research Build Out 20,500,000$ Bonds (4) 1,645,000$ (a) 73,500 -$ CDP 6/09

ASUT-New Business School Facility 58,500,000$ Bonds (2,5) 4,250,000 (b) 125,000 1,224,000$ CDP 6/09, PI Pending

Academic/Research Subtotal 89,000,000$ 6,697,400$ 231,500 1,224,000$

New ProjectsASU-Polytechnic and West Campus Dining Facilities 25,000,000$ Bonds (3) 1,656,400$ (b) 59,000 348,000$ CDP Pending

ASU-Student Services Facilities 110,000,000$ Bonds (3) 8,143,300$ (a,b) 311,000 2,427,000$ CDP Pending

Auxiliary Subtotal 135,000,000$ 9,799,700$ 370,000 2,775,000$ Auxiliary and Academic Subtotal 224,000,000$ 16,497,100$ 601,500 3,999,000$

New ProjectsASUT-Vista Del Sol Expansion N/A N/A N/A N/A CDP Pending

Previously ApprovedASUT-Manzanita Hall Renovation N/A N/A N/A N/A CDP 6/09

ASU-ASU Colleges N/A N/A N/A N/A CPD 6/09

ASUT-Block 12 Development N/A N/A N/A N/A CDP 6/09

ASUP-Polytechnic Student Housing N/A N/A N/A N/A CDP 6/09

ASUW-West Student Housing N/A N/A N/A N/A CDP 6/09

(a) Assumes 5%, 20 years (b) Assumes 6%, 30 years

N/AN/A

* The reference numbers relate to the Debt Service Funding Source section of the bottom table on the following page.

N/AN/A

N/A

N/A

Annual Debt Service

ACADEMIC/RESEARCH

AUXILIARYUniversity Student Initiatives

THIRD-PARTY




Funding Method: Total Cost Code Annual Debt Service1. Certif icates of Participation - COP - 2. System Revenue Bonds 221,800,000$ SRB 16,497,100$ 3. General Fund Appropriations - GFA - 4. Federal Grant - FGT - 5. Upfront Cash Gifts UFG - 6. Upfront Local/Auxiliary Funds 2,200,000 OTH - 7. Lottery Revenue Bonds - LRB -

Totals 224,000,000$ 16,497,100$

Debt Service Funding Source: Total Cost Code Annual Debt Service1. 301 Fund/Other - 301 - 2. Tuition 34,250,000$ TUI 2,526,200$ 3. Auxiliary 135,000,000 AUX 9,799,7004. Indirect Cost Recovery 25,500,000 ICR 2,046,200 5. Other Local Funds 29,250,000 OLF 2,125,000 6. State Lottery Allocation Proceeds - SLP - 7. General Fund Appropriation - GFA - 8. Federal Grant - FGT - 9. Debt Financed By Gifts DFG

Totals 224,000,000$ 16,497,100$

REVISED CAPITAL DEVELOPMENT PLAN FUNDING MECHANISM SUMMARY

REVISED CAPITAL DEVELOPMENT PLAN FUNDING MECHANISM SUMMARY



ARIZONA STATE UNIVERSITY FY 2011 CAPITAL DEVELOPMENT PLAN

Project Amount Financed 301 TUI AUX ICR OLF SLP FGT DFG OTH TOTAL

New Projects ASU-Lab Renovations 10,000,000$ $ 401,200 401,200$ $ 802,400 ASU-Polytechnic and West Campus Dining Facilities (1) 22,800,000$ $ 1,656,400 $ 1,656,400

ASU-Student Services Facilities 110,000,000$ 8,143,300$ $ 8,143,300

Previously Approved ASUT-New Business School Facility 58,500,000$ 2,125,000$ 2,125,000$ 4,250,000$ ASU-Research Build Out 20,500,000$ 1,645,000$ 1,645,000$

Total 221,800,000$ -$ 2,526,200$ 9,799,700$ 2,046,200$ 2,125,000$ -$ -$ -$ -$ 16,497,100$

CAPITAL DEVELOPMENT PLAN • DEBT SERVICE BY FUNDING SOURCE

(1) The total estimated project cost is $25,000,000. The portion that will be debt financed is $22,800,000 and the remaining

$2,200,000 is to be funded by the dining service provider.

Fund Source Codes: 301 Funding (301), Tuition (TUI), Auxiliary Generated Revenues (AUX), Indirect Cost Recovery (ICR), Other Local Funds (OLF), State Lottery Allocation Proceeds (SLP), Federal Grant (FGT), Debt Financed by Gifts (DFG), Other (OTH).



ARIZONA STATE UNIVERSITY FY 2011 CAPITAL DEVELOPMENT PLAN

Project Annual O&M 301 TUI AUX ICR OLF GFA FGT DFG OTH

New Projects

ASU-Lab Renovations -$

ASU-Polytechnic and West Campus Dining Facilities 348,000$ $ 348,000

ASU-Student Services Facilities 2,427,000$ $ 2,427,000 Previously Approved

ASUT-New Business School Facility 1,224,000$ 1,224,000$ ASU-Research Build-Out -$

Total: 3,999,000$ -$ -$ 2,775,000$ -$ -$ 1,224,000$ -$ -$ -$

Fund Source Codes: 301 Funding (301), Tuition (TUI), Auxiliary Generated Revenues (AUX), Indirect Cost Recovery (ICR), Other Local Funds (OLF), General Fund Appropriations (GFA), Federal Grant (FGT), Debt Financed by Gifts (DFG), Other (OTH).

REVISED CAPITAL DEVELOPMENT PLAN • O&M BY FUNDING SOURCE



Arizona Board of Regents Arizona State University

Capital Development Plan Project Justification Report Lab Renovations

Previous Board Action:

• This is a new project. Statutory Policy Requirements

• Board Policy 7-102C.1.b states that the overall plans for related and/or phased

projects should be documented for consideration by the capital Committee.

• Additionally, Board Policy 7-102C.2 states that if the Board grants Capital Development Plan Approval for a group of related projects, Project Implementation Approval and Project Approval are necessary for any phase that exceeds $5,000,000. At this conceptual stage of the project, ASU does not anticipate that any of the individual projects will exceed $5,000,000.

Project Justification/Strategic Implications/Project Compliance with Mission, Strategic Plan, Master Plan and Community Input Process

• Many existing laboratories and building systems are inadequate. The poor condition of the spaces and age of the building systems constrains the development of these strategically important areas. This project will ensure facility systems can meet research demands and will bring areas into code compliance where required.

• Additionally, hiring of new faculty leads to ongoing pressures to update and renovate laboratory space. These projects will renovate facilities for the requirements of new faculty, as well as renovate space following successful grant applications.

• This project will support the ABOR 2020 Vision goals of positioning ASU as a national comprehensive university and establishing national standing in academic quality and impact of colleges and schools in every field. Specific strategic targets include (1) doubling of research to $700 million annually and (2) the integration of teaching, learning and discovery mission into the Phoenix urban fabric and outstate Arizona measured by enhanced economic competitiveness indicators.


Item #9A EXECUTIVE SUMMARY Page 15 of 28 Project Description/Scope/Compliance with Space Standards:

► This project will include the renovation of approximately 33,000 square feet of various laboratories in several buildings. It will include upgrading infrastructure and building systems to maximize adaptable and flexible technologies.

► These improvements will comply with space standards where applicable. Programming and Design Costs to Achieve Project Implementation:

► Current Arizona Board of Regents policy (7-107.C.3 and 7-107.E.3) limits pre-Project Implementation Approval expenditures to the cumulative total of 2 percent of the total estimated project cost (an amount not to exceed $250,000), plus 3 percent of the total estimated project cost.

► Programming and design costs for the project through schematic design are not

anticipated to exceed the limits defined in ABOR policy. Project Delivery Method and Process:

► It is anticipated that these projects will primarily utilize the Construction Manager at Risk (CMAR) method. This approach can save time through fast-track project scheduling. It provides contractor design input and coordination throughout the project; improves potentially adversarial project environments; and allows for the selection of the most qualified contractor team for each individual project. With the use of two independent cost estimates at each phase, and low-bid subcontractor work for the actual construction, this method also provides a high level of cost and quality control. As circumstances warrant, other project delivery methods may be used, including Job Order Contracting (JOC) and Design Bid Build (DBB).

► The CMAR or CMARs will be selected through the capital project selection committee process prescribed by the ABOR Procurement Code. A licensed contractor will be included on the selection committee as required by ABOR policy. The design team will be selected through a similar ABOR process.

Project Costs:

• The estimated budget for this project is $10,000,000. ► Comparable costs for this project cannot be determined at this conceptual stage of

the project. Costs will be determined based on preliminary estimates using a combination of recent ASU construction projects and the nationally-recognized estimating program RS Means.



► For this Capital Development Plan phase, no preliminary external cost estimates

have been provided by third-party consultants.

► The Construction Manager is at risk to provide the completed projects within the agreed upon Guaranteed Maximum Price (GMP).

Project Status and Schedule

► This project is in the conceptual phase. Design Professionals (DPs) will be selected when projects are identified and approvals are secured. The design schedule for each project will vary, depending on the scope of the individual project.

► General construction is scheduled to begin when all approvals are in place.

Construction schedules for each project will vary, depending on the scope of individual projects.

Fiscal Impact and Financing Plan:

► The project funding will be system revenue bonds. The debt service will be funded from tuition and indirect cost recovery.

► This project consists of renovation of existing spaces; there is no net increase to

operation and maintenance costs. ► Debt ratio impact: The incremental debt ratio for this project would be 0.04%.

Backfill Plan:

► A backfill plan is not applicable to this project. Alternatives:

► There are few, if any, alternatives to this project. In most cases, it is more feasible

for ASU to maintain and renovate existing facilities than to construct new buildings.




Capital Development Plan Project Justification Report Polytechnic and West Campus Dining Facilities


► Revised FY 2009 CDP (Polytechnic and West Housing) January 2009

► FY 2010 CDP (Polytechnic and West Housing)

June 2009 Statutory / Policy Requirements

► Board Policy 7-102 requires Capital Committee review and Board approval of projects with a total project cost over $5 million.


• Arizona State University has determined that the Polytechnic and West campuses should increase their overall enrollment and provide housing for up to 25 percent of its students by 2020. The intent to create live-on-campus cultures similar to the Tempe campus will require ASU to invest in the development of student services, including on-campus housing, retail and contract dining, and recreation facilities. This initiative will assist in reaching the enrollment and degree production benchmarks defined in the ASU strategic plan and ABOR 2020 Vision.

• Dining facilities are an integral component in the ASU plan to create an academic atmosphere and social environment associated with living on campus. In this program, the residence halls and the dining program in the halls will be used for more than day-to-day living. They will also become the home of programs that will enhance the academic and social life of our students, all in support of improving student success and the retention and graduation rates that are dependent on successful students.

• The Polytechnic Student Housing and West Campus Student Housing projects

are called for in the Campus Master Plan and the University strategic plan, both of which included significant community and student input.



• This project will allow the University to add quality, on-campus student housing without direct University capital outlay, increasing retention and graduation rates. Increasing bachelor degrees awarded in Arizona is a key metric of the ASU Strategic 20/20 Vision Plan goal of “Access to Quality for All.” Research shows more freshman go on to graduate after living on campus their first year. Among first-time full-time freshmen, 81% of those who live on campus return the following year, as compared to 76% of those who reside elsewhere.

Project Description/Scope/Project Compliance with Space Standards:

• This project will build approximately 59,000 gross square feet of dining space at the Polytechnic and West Campus Housing projects. Spaces will include:

• Main dining areas • Multipurpose space • Kitchens • Serving areas • Receiving docks • Outdoor dining areas • Retail space • Offices and workstations (including RHA student offices), conference

room, reception area

• Multiuse areas not only will support food services, but will double as program spaces for study groups, student clubs, and other members of the campus community.

• To further extend the usefulness of the dining areas, the spaces will be mediated and will allow for data projection. Overarching goals are to foster learning and to create a sense of community by encouraging student interaction and engagement.

• Creation of the retail areas was motivated by continual student input regarding this project and from the success of similar developments at the Tempe campus.


Item #9A EXECUTIVE SUMMARY Page 19 of 28 Programming and Design Costs to Achieve Project Implementation:

► Current Arizona Board of Regents policy (7-107.C.3 and 7-107.E.3) limits pre-

Project Implementation expenditures to the cumulative total of 2 percent of the total estimated project cost (an amount not to exceed $250,000), plus 3 percent of the total estimated project cost.

► Programming and design costs for the project through schematic design are

not anticipated to exceed the limits defined in ABOR policy. Project Delivery Method and Process:

► It is anticipated that this project will be developed and constructed using the

same third-party partners as the Polytechnic Student Housing and West Student Housing, both of which were given CDP approval on the FY 2010 CDP, submitted in June 2009.

► The third-party partners have chosen Design Professionals and contractors to complete the project.

Project Costs:

• The estimated budget for this project is $25,000,000. • For this Capital Development Plan phase, preliminary independent cost

estimates have been provided by the third-party developers. Comparable costs for this project cannot be determined at this conceptual stage of the project. When the projects become more defined, comparable projects and costs will be provided at Project Implementation Approval.

Project Status and Schedule:

• This project is in the Design Phase and is anticipated to be complete by fall 2012.

• General construction is scheduled to begin in early summer of 2011, after all approvals are in place. Construction will be completed approximately 13 months after approvals are in place.

• As the project components for the Polytechnic and West campuses progress

through the capital process, they may be brought forward separately for Project Implementation approval.


Item #9A EXECUTIVE SUMMARY Page 20 of 28 Fiscal Impact and Financial Plan:

► The project funding will be system revenue bonds and $2,200,000 in funding

from the dining service provider. The debt service will be paid from auxiliary revenues.

• Operation and maintenance costs are anticipated to be $348,000. Operations and maintenance costs will be covered by auxiliary generated revenues.

• Debt ratio impact: The incremental debt ratio for this project would be 0.09%. Backfill Plan:

• This project is not anticipated to create vacant space on the Polytechnic or West Campuses.

Alternatives:

• There is no alternative to providing dining for students living on campus.




Capital Development Plan Project Justification Report Student Services Facilities


► This is a new project. Statutory Policy Requirements

► Board Policy 7-102 requires Capital Committee review and Board approval of

projects with a total project cost over $5 million. Project Justification/Strategic Implications/Project Compliance with Mission, Strategic Plan, Master Plan and Community Input Process

► Current student service facilities are inadequate for the size of the present and future student body of ASU. For instance, the Tempe campus recreation complex is outdated and lacks adequate size to meet the growing demands of the student body. The West Campus complex is poorly located and too small. The Polytechnic Campus does not have a true recreation complex and lacks union space found on traditional university campuses. The Downtown Phoenix Campus lacks student union and meeting space. For recreation, students at the Downtown Campus must utilize the local YMCA, which is too small for the demands of a growing urban student population.

► In recognition of the key role student service facilities play in the student experience, a proposal to implement a Student Services Facility Fee was initiated by the ASU Council of Presidents, comprised of student body presidents from all four ASU campuses. Through numerous senate meetings, open forums and town halls, ASU students approved the fee, which was subsequently approved by the Board of Regents at the March 2010 ABOR meeting.

► Since that time, the scope of the proposed facilities has been defined by student leaders and a consultant, with guidance from ASU administration. The priority in planning these facilities is to provide, where possible, similar and equitable Sun Devil experiences regardless of campus. With this goal in mind, the ASU Council of Presidents has identified priority student service needs for each campus.

► The community input process ASU has undertaken for this project ensures that the proposed student services facilities will provide a commensurate level of service and support to all ASU students. It is the goal of this project to enhance student life



on all campuses, by encouraging increased connectivity to the larger community and increasing social engagement through the use of community space.

► This project aligns with both the ABOR 20/20 Vision plan and ASU strategic plan goal of “Access and Quality for All.” This project will “enhance student development and individual student learning” by providing opportunities for individual student growth, recreation, and social and community involvement.

Project Description/Scope/Compliance with Space Standards:

► This project will add approximately 311,000 gross square feet of student services and recreational space across all ASU campuses. The project will include extensive renovations to existing space and potentially involve the addition of many types of student services space:

• Student Services/Career Service/Student Employment space • Outdoor/Indoor Aquatics Centers – a year-round facility designed for both

recreational and programming needs • Exercise rooms – designed to accommodate a wide variety of programming,

from high intensity cardio classes to stress reducing classes, to group spinning classes; to also include locker rooms with showers.

• Indoor activity space – including multiple gyms with multi-purpose basketball, volleyball, badminton, indoor soccer, and flexibility screens to allow for both intramural and open recreation programming

• Weight room/ fitness centers – including free weights, machines, cardio equipment, ADA-compliant equipment and opportunities for personal training/guidance from trained and qualified ASU students

• Student lounge areas • Outdoor areas – space will promote outdoor programming and rental

opportunities for students as well as create a working location for intramural and club programming. Field space will be both flexible and efficient, and will be planned to include softball, soccer, flag football, rugby, lacrosse, baseball, Ultimate Frisbee and open recreational areas

• Indoor and outdoor running track – path and/or jogging areas • Facility rooms and meeting space - including the ability for training,

meetings, and any club or organizational needs; storage space will be included to plan for the expansion of club sports programs, outdoor programming as well as maintenance needs for building and field space

• Bicycle cooperative space • Ballroom space • Office and meeting space - for the Graduate and Professional Student

Association, Programming and Activities Board, and Student Government. • Dining space



• Health and wellness services - including sports medicine rooms • Daycare space - primarily for student use • Tennis courts

► Student groups are also considering other programming alternatives: outdoor

basketball courts, outdoor sand volleyball courts, racquetball, rock climbing, indoor golf simulator, and student engagement space and game areas. Shaded courtyards may also be added where practical for additional outdoor space. Options are currently being evaluated and prioritized, based on feasibility and student input.

► These improvements will comply with space standards where applicable. Programming and Design Costs to Achieve Project Implementation:

► Current Arizona Board of Regents policy (7-107.C.3 and 7-107.E.3) limits pre-Project Implementation expenditures to the cumulative total of 2 percent of the total estimated project cost (an amount not to exceed $250,000), plus 3 percent of the total estimated project cost.

► Programming and design costs for the project through schematic design are

anticipated to exceed the limits defined in ABOR policy. ASU requests that ABOR Policy 7-107.C.3 and 7-107.E.3 be waived for this project, and ASU be allowed to expend up to $16,000,000 to enable these projects to proceed through schematic design.

Project Delivery Method and Process:

► It is anticipated that this project will utilize the Construction Manager at Risk (CMAR) method. This approach can save time through fast-track project scheduling. It provides contractor design input and coordination throughout the project; improves potentially adversarial project environments; and allows for the selection of the most qualified contractor team for each individual project. With the use of two independent cost estimates at each phase, and low-bid subcontractor work for the actual construction, this method also provides a high level of cost and quality control.

► The CMAR or CMARs will be selected through the capital project selection committee process prescribed by the ABOR Procurement Code. A licensed contractor will be included on the selection committee as required by ABOR policy. The design team will be selected through a similar ABOR process.

Project Costs:



• The estimated budget for this project is $110,000,000. ► Comparable costs for this project cannot be determined at this conceptual stage of

the project. When projects are identified, comparable projects and costs will be provided at Project Implementation Approval. Costs will be determined based on preliminary estimates using a combination of recent university construction projects and the nationally-recognized estimating program RS Means.

► For this Capital Development Plan phase, no preliminary external cost estimates

have been provided by third-party consultants.

► The Construction Manager is at risk to provide the completed projects within the agreed upon Guaranteed Maximum Price (GMP). A final report on project control procedures such as change orders and contingency use will be provided at project completion.

Project Status and Schedule

► This project is in the conceptual phase. Design Professionals (DP) will be selected when projects are identified. The design schedule for each project may vary, depending on the scope of the individual projects. As the projects for the Polytechnic, West, Tempe and Downtown campuses progress through the capital process, they may be brought forward separately for Project Implementation approval.

► General construction is scheduled to begin when all approvals are in place. Construction schedules for each project will vary, depending on the scope of individual projects.


► The project funding will be System Revenue Bonds (SRBs). The debt service will be paid from auxiliary funds, generated from the Student Services Facility Mandatory Fee.

► Operation and maintenance costs for this project are estimated at $2,427,000. The funding source for operations and maintenance will be auxiliary generated revenues.

► Debt ratio impact: The incremental debt ratio for this project would be 0.42%.

Backfill Plan:



► A backfill plan is not applicable to this project. Alternatives:

► There are few, if any, alternatives to this project. The current student services

spaces are strained and inadequate for the current ASU campuses. Future growth expected at all campuses will further exacerbate overcrowding and will lead to a less attractive campus environment. This project will mitigate these issues and ensure all ASU campuses have the needed student services space for the foreseeable future.




Capital Development Plan Project Justification Report Vista Del Sol Expansion (Third-Party)


► Revised FY 2009 Capital Development Plan January 2009 ► FY 2010 Capital Development Plan June 2009

Statutory / Policy Requirements

• Board Policy 7-102 requires Capital Committee review and Board approval of projects shared with other entities the control, financing, or ownership of the project and/or its delivery process.


► The Vista Del Sol Expansion project will continue to grow the Vista Del Sol development located at the southern end of the ASU Tempe campus. This development created a live-on-campus culture that included on-campus housing, retail, and recreation facilities. The University has embraced this model and is committed to creating a dynamic, on-campus living environment, transforming its program and facilities.

► Vista Del Sol has redefined the academic atmosphere and social environment associated with living on campus by developing strong and supportive student residential communities, and providing students with a memorable and life-shaping undergraduate experience. The project has enhanced the physical environment of the campus, and has reduced the need for students to commute to campus. It has also enhanced student collaboration with all aspects of the University, prompting ASU to grow programs and services that reinforce student academic success and development, with the ultimate goal of increasing students’ potential for academic success.

► This project is called for in the Campus Master Plan and the University strategic plan, both of which included significant community and student input. The Vista Del Sol Expansion will take advantage of existing infrastructure and amenities, resulting in significant cost savings.



► Increasing bachelors degrees awarded in Arizona is a key metric of the ASU strategic plan goal of “Access to Quality for All.” Research shows more freshman go on to graduate after living on campus their first year. This project will allow the University to supplement quality student housing without direct capital outlay while increasing retention and graduation rates. As the housing project progresses, the selected developer will work with campus stakeholders in the design and programming of the space.

Project Description/Scope/Project Compliance with Space Standards:

► The project will demolish Ocotillo Hall, which is not currently in use, and is beyond its useful life and should be replaced.

► The Vista Del Sol Expansion will provide student residential space of approximately 392 new beds, and will use the existing and adjacent Vista Del Sol amenities. The expansion will be of similar construction to the existing four story buildings of Vista Del Sol: four-bedroom apartments and four-bedroom townhouses. Apartments would be in four-story structures and the townhouses would be three stories.

► The project will be in conformance with applicable ABOR Space Guidelines. Programming and Design Costs to Achieve Project Implementation:

► It is anticipated that programming and design costs would be covered by the third-

party developer. Project Delivery Method and Process:

► This will be a third-party project facilitated by a private developer. In 2004, ASU selected American Campus Communities (ACC) for this role on the Tempe Campus. ASU signed an agreement with ACC in 2006, subsequently constructed Vista Del Sol and the Barrett Honors College. The agreement included the option to construct an expansion to Vista Del Sol.

► As was done with the original Vista Del Sol project, this housing project will be located on land owned by the University that will be conveyed via ground lease to ACC. Upon completion of the lease term, ASU has the option to retain the buildings or to have the buildings and improvements demolished at ACC’s expense.

Project Costs:



► This project will be entirely equity funded by ACC. Project Status and Schedule:

► The intent is to complete the housing by fall 2012.

Fiscal Impact and Financial Plan:

► This will be a third-party project facilitated by a private developer. The developer is expected to cover all costs of this project, including operations and maintenance.

Backfill Plan:

► There is no backfill for this project. This project will replace existing substandard housing at the Tempe campus, which will result in the demolition of those structures.

Alternatives:

► Given the nature of this project, there were few alternatives to be explored. The primary alternatives explored related to the choice between the University building the student housing or using a third-party developer to do so. The latter option was chosen because it allowed for the potential to minimize the impact on the University’s debt capacity. Additionally, the success of the Vista del Sol project has proven to be a model worthy of expansion.

Board of Regents Meeting December 9-10, 2010 Item #9B EXECUTIVE SUMMARY Page 1 of 25

Contact Information David Bousquet, Vice President, (928) 523.8449, [email protected] Jane Kuhn, Associate Vice President, (928) 523.7732, [email protected] Jennus Burton, Vice President, (928) 523.8871, [email protected]

ITEM NAME: FY 2011 Capital Development Plan Revisions (NAU)

Action Item Discussion Item Information Item ISSUE: Northern Arizona University requests the Board’s approval of revisions to the FY

2011 Capital Development Plan, which includes three new projects and one resubmitted project. Excluding the third-party project, the CDP totals $125.4 million.

Previous Board Action: Capital Development Plan June 10-11, 2010 Statutory/Policy Requirements: Pursuant to Board Policy Chapter 7-107, each university shall submit an annual Capital Development Plan (CDP) for the upcoming fiscal year in accordance with the calendar established by the President. The CDP also may be considered for mid-year revisions and include the addition of new projects, project budget adjustments, and deletion of projects. Background: Northern Arizona University (NAU) requests approval of the FY 2011 Capital Development Plan (CDP) in accordance with Arizona Board of Regents (ABOR) Policy Chapter VII. The plan is a comprehensive inventory of major capital projects approved by the Board that the University intends to complete within the next few years. Changes to the Capital Development Plan: The Northern Arizona University Capital Development Plan includes three (3) new projects. Additionally, the plan includes one (1) resubmitted project previously adopted in June. Approval of the CDP authorizes NAU to initiate design of the following projects.

• New Projects:

1. Science and Health Building. A project to construct approximately 120,000 square

feet of new flexible teaching and research laboratories and classrooms for chemistry and biology. The project site is on north campus on a level site previously designated for parking. The site is consistent with a unified science complex including the Science Laboratory Facility and is consistent with the recently adopted master plan. The site’s existing infrastructure provides ease of connection to existing campus utility systems. Increasing enrollment has maximized current laboratory space.

2. Multi-Purpose Events Facility. A major renovation of approximately 94,000 square feet of the NAU Fieldhouse constructed in 1965. The renovation project includes space reconfiguration and interior renovation, structural repairs, and a new west entrance.


The interior renovation includes new acoustics, new lighting, new flooring and new seating. Additionally the project will address ADA, fire life safety and other code upgrades, as well as chilled water taps to the existing infrastructure. The project site is on north campus directly across from the Cline Library on Knoles Drive and adjacent the new Native American Cultural Center currently in construction.

3. San Francisco Parking Structure. The parking structure is a 6-story facility that will be constructed in phases on the site of P-31 in the area north of Tinsley Hall and south of the Bookstore. The project location is along South San Francisco and across the street from the new Health and Learning Center; the location is consistent with the master plan parking sites and pedestrian accessibility. A second phase of the parking structure will begin after staff in Fronske is relocated to the Health and Learning Center and Fronske is demolished. The total capacity of the parking structure will include a total of 1,369 parking spaces, with each phase constructing 685 spaces and 684 spaces respectively. This project is being removed from the privatized development due to cost savings to the university.

• Resubmitted Projects: The following projects have been approved on an earlier Capital

Development Plan and are being resubmitted here in accordance with ABOR Policy 7-107.B.5.

1. Privatized Residence Hall Development. The university intends to develop a

comprehensive long-term capital improvement plan primarily for student housing utilizing Third-Party Agreements. Development may include related projects such as parking structures, faculty and staff housing, retail space, a sports complex, and academic facilities consistent with the campus master plan, residence life programming objectives and the university’s long-term capital plans. Negotiations have resumed with the developer on a ground lease.

Fiscal Impact and Management Plan: Debt Ratio Impact: The debt ratio approved by the Board in the university’s Capital Improvement Plan (debt capacity study) for FY 2012-2014 projects is 6.61% of total projected expenses without SPEED projects and 8.15% with SPEED projects (ABOR and State policy max 8%). The projected debt ratios for the CDP are 7.10% of total projected expenses (ABOR and State policy max 8%). This includes all non-SPEED projects and projects that have received project approval. The following table identifies the incremental debt service for the three new projects included in the Amended FY 2011 CDP:

Project Name Amount Financed StateNew ProjectsScience and Health Laboratory $71,900,000 1.16%Multi-Purpose Events Facility $28,500,000 0.30%San Francisco Parking Structure $25,000,000 0.45%

Total $125,400,000

Incremental Debt Service 2011 Capital Development Projects

Previously Approved Projects


The projected highest debt ratio including the projects listed above is 9.36%. This includes all university funded and SPEED funded projects. The projected highest university debt ratio for all projects not including SPEED is 7.10%, this ratio remains below the maximum debt ratio of 8%. Committee Review and Recommendation: • The Capital and Project Finance Committee reviewed the revisions to the plan at its

November 18, 2010 meeting and recommended forwarding for Board approval. Recommendation to the Board: It is recommended that the Board grant NAU approval of its FY 2011 Capital Development Plan revisions and authorize NAU to add or resubmit the following projects to the university Capital Development Plan:

1. New Science and Health Building 2. Multi-Purpose Events Facility 3. San Francisco Parking Structure 4. Privatized Residence Hall Development

EXEC

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ProjectAmount

Financed SLP1TRIF/ Sales

Tax GIF AUX / LF ICR TUI DFO Total

Science and Health Facility $71,900,000 $3,920,000 $980,000 $4,900,000

Multi-Purpose Events Facility $28,500,000 $324,932 $878,520 $1,203,452

San Francisco Parking Structure $25,000,000 $1,860,000 $1,860,000

Totals $125,400,000 $3,920,000 $980,000 $0 $2,184,932 $0 $878,520 $0 $7,963,452

CAPITAL DEVELOPMENT PLAN DEBT SERVICE BY FUNDING SOURCE

Previously Approved Projects

New Capital Projects

Note1: State Lottery Allocation proceeds anticipated as part of the Stimulus Plan for Economic and Education Development. Note2: Total project for Multi-Purpose Events Facility is $28.5 million; with $18.5 million financed. Fund Source Codes: General Fund Appropriation (GFA), 301, Tuition (TUI), Auxiliary (AUX), Local Funds (LF), Indirect Cost Recovery (ICR), General University Funds (GUF), State Lottery Proceeds (SLP), Debt Financed by Other (DFO) = Federal Grant (FGT) or Gifts (GIF), or Other (OTH).


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ProjectTotal Project

CostAnnual O & M GFA TRIF AUX / LF ICR GUF DFO Total

New Projects

Science and Health Facility $71,900,000 $1,797,500 $1,797,500

Multi-Purpose Events Facility $28,500,000 NA NA

San Francisco Parking Structure $25,000,000 $625,000 $625,000

TOTALS $125,400,000 $2,422,500 $1,797,500 $0 $625,000 $0 $0 $0 $2,422,500

CAPITAL DEVELOPMENT PLAN OPERATION AND MAINTENANCE FUNDING

Fund Source Codes: General Fund Appropriation (GFA), 301, Tuition (TUI), Auxiliary (AUX), Local Funds (LF), Indirect Cost Recovery (ICR), General University Funds (GUF), State Lottery Proceeds (SLP), Debt Financed by Other (DFO) = Federal Grant (FGT) or Gifts (GIF), or Other (OTH).


Arizona Board of Regents

Northern Arizona University Capital Development Plan Project Justification Report

Science and Health Building (NAU Project Numbers: #09.360.111)

1. Previous Board Action: • Capital Improvement Plan September 2010

2. Statutory / Policy Requirements:

• Board Policy 7-107 B.1. requires Capital Committee review and Board approval of the annual Capital Development Plan.

3. Project Justification / Strategic Implications for Mission, Strategic Plan, Master

Plan and Community Input Process:

• This project is consistent with the recent NAU Master Plan and the university strategic plan. As a university committed to its goals of providing excellence in undergraduate education, strengthening graduate education and research, and increasing enrollment and retention of students, this project directly focuses upon providing high-quality environments that facilitate achievement of these goals.

• The university is focused upon strengthening the first-year and second-year academic experience as a foundation for high achievement and student retention. Learning environments are critical components to that goal. Both the university master plan and the university strategic plan promote quality student learning environments that facilitate student integration into the campus community. Student retention and recruitment are inherently linked with the quality of facilities.

• One of the NAU master plan guiding principles identifies improved quality and

functionality of campus facilities. Due to obsolescence and code deficiencies that are prohibitive factors against renovating the existing 40-year-old Chemistry laboratory building, new construction addresses increasing student enrollments and critical learning environments for science and health programs. Additionally, students, faculty and research activities are all constrained by poorly functioning facilities.

• Increasing enrollments at NAU have lead to a shortage in undergraduate

laboratory space. As a consequence of NAU’s overall growth, and the particular concentration of growth in science-intensive curricula, laboratory sections have increased 60% over the last few years. Enrollments in science oriented curricula have increased 88% between Fall 2004 and Fall 2010. This facility will provide quality space to meet the unprecedented demands for science classes.


4. Project Description/Scope/Compliance with Space Standards:

• This project includes construction of approximately 120,000 square feet of new flexible teaching and research laboratories and classrooms for chemistry and biology. The project site is on north campus on a level site previously designated for parking. The site is consistent with a unified science complex including the Science Laboratory Facility and is consistent with the recently adopted master plan. The site’s existing infrastructure provides ease of connection to existing campus utility systems.

• The new Science and Health building will replace existing instructional and research laboratories in building 20, Chemistry. The Chemistry laboratories were constructed in the early 1960’s and renovation of those laboratories to meet current building and life safety codes would be technically prohibitive and not financially feasible. Critical code issues have been identified in the existing wet laboratories in building 20. The Chemistry building is a red building based upon its facility condition index and is scheduled for future demolition. The new Science and Health project is anticipated to replace those obsolete and poorly functioning, or non-functioning, laboratories in Chemistry.

• It will be designed in accordance with university Design Standards and will be constructed of high quality, maintainable materials and building systems to maximize energy efficiency and minimize operational, repair and replacement costs.

• In an effort to demonstrate the university’s commitment to responsible,

sustainable design, and in response to the Governor’s mandate that facilities be designed in a sustainable manner, this new construction project will incorporate sustainable materials and practices wherever possible.

• All applicable spaces within the new Science and Health Building will comply with

the ABOR space guidelines. 5. Programming and Design Costs, and Exceptions (if Required), to Achieve

Project Implementation:

• Programming and design costs for the project are anticipated to exceed the limits defined in ABOR Policy, Chapter VII (7-107.C.3. and 7-107.E.3). Northern Arizona University therefore requests an exception of ABOR policy, Chapter VII (7-107.D.3.) to expend up to $5 million for programming and design costs for this project.


6. Project Delivery Method and Process:

• Selection of the Design Professional and Construction Manager at Risk (CMAR)

is ongoing. The CMAR will be selected through the capital project selection committee process prescribed by the ABOR Procurement Code. A licensed contractor from the community will be included on the selection committee as required by ABOR policy

• This approach was selected because it can save time through fast-track project

scheduling, it provides contractor design input and coordination throughout the project, it improves potentially adversarial project environments, and it allows for the selection of the most qualified contractor team for each individual project. With the use of two independent estimates, qualification selection and low bid subcontractor work for the actual construction, this method also provides a high level of cost and quality control.

7. Estimated Project Cost and Cost Development:

• The new Science and Health construction project has an estimated total budget of $71.9 million. Funding for the construction includes $71.9 million in SPEED bonds. The debt service will be funded by TRIF.

• Comparable costs for this project cannot be determined at this conceptual stage of the project. When projects are identified, comparable projects and costs will be provided at Project Implementation Approval or Project Approval phase pending process revisions. Costs will be determined based on preliminary estimates from recent NAU projects, third-party estimates, DP estimates and CMAR estimates.

• For this Capital Development Plan phase, no preliminary external cost estimates have been provided by third-party consultants.

• The Construction Manager is at risk to provide the completed projects within the

agreed upon Guaranteed Maximum Price (GMP). A final report on project control procedures such as change orders and contingency use will be provided at project completion.


8. Project Status and Schedule:

• This project is in the conceptual phase. Following is a tentative schedule for

selection of DP and CMAR services: DP Selection February 3, 2011 CMAR Selection March 3, 2011

• General construction is scheduled to begin when all approvals are in place. Construction will be completed approximately 18 months after CMAR construction contracts are awarded.

9. Fiscal Impact and Financing Plan:

• The project funding will be system revenue bonds. The debt service would be funded from TRIF.

• This project consists of an estimated 120,000 square feet of new space. Operations and Maintenance costs are estimated at $1,797,500 annually. Northern Arizona University will request a General Fund Appropriation for operations and maintenance support through the standard legislative request process.

• Debt Ratio Impact: The incremental debt ratio for this project would be

1.16%

10. Backfill / Use Plan:

• There is no backfill plan associated with this project due to planned demolition of building 20, Chemistry Building.

11. Alternatives:

• The university has considered alternatives to the new construction, but viable options do not exist. Demolition of building 20 first would impact laboratory science deliveries and there is no available space on campus or in the community to relocate those classes. Lease space that could be modified as laboratory space is not available in Flagstaff. Existing laboratory properties for sale in Flagstaff do not exist. As stated previously, the condition of building 20 precludes renovation of the space for laboratories.


12. Project location map: Science and Health Building, North Campus Science Complex

fire pit

95

Pine Knoll Dr.

Pine Knoll Dr.

Huffer Lane

McConnell Drive

McConnell Drive

Knoles Drive

Runke Dr.

University Drive

University Drive

Run

ke C

ircle

S. S

an F

ranc

isco

St.

Riordan Rd.

Knol

es D

r.

Blome Dr. South

Mt.View Dr.

Rior

dan R

anch

Rd.

Dupont Dr.

Knol

es D

r.

Beav

er S

t.

Franklin Ave.

McMullen Circle

Tormey Ave.

Osb

orne

Dr.

S. San Francisco St.

Milton R

oad

Butler Ave.

SCALE

0 100' 300'200'

7373

NEW CONSTRUCTION

ACADEMIC BUILDINGS

RESIDENCE HALLS

SUPPORT FACILITIES

Mt. View Hall

Health & Learning Center

HRM

Bookstore

Wall AquaticCenter

DuplicatingServices

CentennialBuilding

WettawBuilding

NorthHall

Bury HallTaylor Hall

Old MainAshurst

LABFacility

RilesBldgAnthropology

Annex

ChemistryBuilding

BiologyBuilding

PhyScience

LiberalArts

NorthUnion

BlomeBldg

GammageBuilding

FrierHall

CommunicationBuilding

RoseberryApt

EastburnEducationCenter

Institute forHumanDevelopment

ClineLibrary

AdelMathCounseling

and TestingCenter

Plateau Center

BabbittAcademicCenter

PetersonHall

University Union

GillenwaterHall

Performing and Fine Arts

ArdreyAuditorium

TinsleyHall

CowdenLearningCommunity

Raymond Hall Raymond Hall

FronskiHealthCenter

GatewayCenter

AllenHall

Wilson Hall

TinsleyHallInformation

Systems

ARD

Anthropology Lab

ROTC/PropertyControl

ReillyHall

CampusHeights

GabaldonHall


Pine RidgeVillage Apts

McConnellHall

LearningResourceCenter

College ofBusiness duBois

Center

HealthProfessions

EngineeringandTechnology

College ofBusiness Social and

BehavioralSciences

RolleActivityCenter

HealthProfessions

SW ForestScienceComplex

SouthPlant

GreenhouseComplex Avian

CognitionLaboratory

RecyclingBuilding

CeramicsComplex

EmeraldComplex

NorthAspenCrossingHall

Science and Health Building




Multi-Purpose Events Facility (NAU Project Numbers: #09.300.112)

1. Previous Board Action:

• Capital Improvement Plan September 2010


• Board Policy 7-107 B.1. requires Capital Committee review and Board approval of

the annual Capital Development Plan.

3. Project Justification / Strategic Implication for Mission, Strategic Plan, Master Plan and Community Input Process:

• This project is consistent with the newly adopted NAU Master Plan which

promotes quality student activity environments that facilitate student integration into the social community of campus. As part of the student access, progress and affordability goal, the university strategic plan identifies student recruitment and retention as a critical strategy for ongoing development at NAU. Student retention and recruitment are inherently linked with the quality of facilities, both academic and recreational. The site is adjacent the civic edge which includes the Cline Library, Ardrey Auditorium and the Native American Cultural Center currently in construction.

• One of the NAU master plan guiding principles identifies improved quality and functionality of campus facilities. This project directly addresses this goal through major renovation of an existing facility that has been relatively untouched for 45 years. The project includes upgrades to several systems to accommodate the functional transition of the Fieldhouse into a multi-purpose events facility that will engage students, the community and region.

• The adaptive re-use of existing space will provide quality academic, social and

cultural experiences on campus by providing a venue for speakers, athletic events and a multitude of other student and university activities. To provide greater exposure to non-campus pedestrian traffic and define a prominent image for the transitioned Fieldhouse building, a new arena entry is proposed at the west elevation. This entry will complement the future green space identified as one of the university green areas to enliven campus and transform the center of campus.



• This project is a major renovation of approximately 94,000 square feet of the NAU

Fieldhouse constructed in 1965. The renovation project includes space reconfiguration and interior renovation, structural repairs, and a new west entrance. The interior renovation includes new acoustics, new lighting, new flooring and new seating. Additionally the project will address ADA, fire life safety and other code upgrades, as well as chilled water taps to the existing infrastructure.

• Several systems will need to be installed to accommodate the complex functionality of an arena. A new concrete floor will replace the existing asphalt and rubber floor which cannot support event traffic and bleacher systems. The lighting system will include egress/dimming capabilities and will be packaged with a public address system for event and emergency use. The arena floor is planned to be purposely flexible to facilitate NAU basketball games, university events, and other academic or auxiliary opportunities. It will be designed in accordance with university Design Standards and will be constructed of high quality, maintainable materials and building systems to maximize energy efficiency and minimize operational, repair and replacement costs.

• Significant infrastructure upgrades are needed including strengthening the roof

structure to resist snow accumulation, replacement of old utility systems, replacement of roof insulation and membrane, replacement of exterior wall insulation, and hazardous materials abatement. The facility will be wired with an emergency generator.

• Throughout the remaining portion of the first and second floor annex areas, the building improvements will include improved general office space, an enlarged Learning Assistance Center and space for student groups. The main lobby will be renovated to provide a welcoming image to this new transitioned Multi-Purpose facility. The university plans to leverage the adjacent Dining Expansion to serve as the primary food and beverage resource to the arena, and as such, the improvements will include only a small concession area and ticket window.

• To support the arena use for men’s and women’s basketball, office and locker

space will be located on both floors. The men’s and women’s basketball locker rooms will be located along the east side of the arena. Space is also included for a unisex visiting team locker room and two official locker rooms.

• All applicable spaces within the Multi-Purpose Events Facility will comply with the

ABOR space guidelines.


5. Programming and Design Costs, and Exceptions (if Required), to Achieve


• Programming and design costs for the project will not exceed the limits defined in ABOR Policy, Chapter VII (7-107.C.3. and 7-107.E.3). Consultant and design professional services for Project Implementation Approval will not exceed three percent (3%) of the estimated total project budget.


• Selection of the Design Professional and Construction Manager at Risk (CMAR) is ongoing. The CMAR will be selected through the capital project selection committee process prescribed by the ABOR Procurement Code. A licensed contractor from the community will be included on the selection committee as required by ABOR policy




• The Multi-Purpose Events Facility renovation project has an estimated total budget of $28.5 million. Funding for the major renovation includes $13.5 million in university funds, $10 million in student fees/auxiliary funds and $5 million in gifts and investments.

• Comparable costs for this project cannot be determined at this conceptual stage of the project. When projects are identified, comparable projects and costs will be provided at Project Implementation Approval or Project Approval phase pending process revisions. Costs will be determined based on preliminary estimates from feasibility study, recent NAU projects, third-party estimates, DP estimates and CMAR estimates.

• For this Capital Development Plan phase, preliminary construction cost estimates have been provided as part of the feasibility study for system replacements, arena improvements, west entry and existing building infrastructure improvements.


• The Construction Manager is at risk to provide the completed project within the agreed upon Guaranteed Maximum Price (GMP). A final report on project control procedures such as change orders and contingency use will be provided at project completion.


• This project is in the conceptual phase. Following is a tentative schedule for selection of DP and CMAR services: DP Selection January 4, 2011 CMAR Selection January 26, 2011



• The project funding will be system revenue bonds for $18.5 million of the $28.5 million. The debt service would be funded from a combination of general university funds, auxiliary funds and gifts.

• This project consists of renovation of existing spaces; there is no net increase to Operation and Maintenance costs.

• Debt Ratio Impact: The incremental debt ratio for this project would be 0.30%


• A backfill plan is not applicable to this project.

11. Alternatives:

• There are few alternatives to this project. Continued use of the Fieldhouse requires renovation of aged systems that have exhausted their usable life, as well as replacement of a failing roof system. Adaptive re-use of this space allows NAU to maximize existing space while major maintenance renovations are completed and overall building envelope aesthetics are maintained.


12. Project location map: Multi-Purpose Events Facility, North Campus, Civic edge:

McConnell Drive

Knoles Drive

Runke Dr.

University Drive

University Drive

Run

ke C

ircle

S. S

an F

ranc

isco

St.

Riordan Rd.

Knol

es D

r.

Blome Dr. South

Mt.View Dr.

Rior

dan

Ranc

h Rd.

Dupont Dr.

Knol

es D

r.

Beav

er S

t.

Franklin Ave.

McMullen Circle

Tormey Ave.

Osb

orne

Dr.


Milton R

oad

Butler Ave.

SCALE

0 100' 300'200'

NEW CONSTRUCTION

ACADEMIC BUILDINGS

RESIDENCE HALLS

SUPPORT FACILITIES

Mt. View Hall


HRM

Bookstore

Wall AquaticCenter

DuplicatingServices

CentennialBuilding

WettawBuilding

NorthHall


Old MainAshurst

LABFacility


Annex

ChemistryBuilding

BiologyBuilding

PhyScience

LiberalArts

NorthUnion

BlomeBldg

GammageBuilding

FrierHall


RoseberryApt



ClineLibrary

AdelMathCounseling

and TestingCenter

Plateau Center


PetersonHall

University Union

GillenwaterHall


ArdreyAuditorium

TinsleyHall



FronskiHealthCenter

GatewayCenter

AllenHall

Wilson Hall


Systems

ARD

Anthropology Lab


ReillyHall

CampusHeights

GabaldonHall


Multi-Purpose Events Facility




San Francisco Parking Structure (NAU Project Numbers: #09.962.111)

1. Previous Board Action: • Capital Improvement Plan September 2010





• One of the organizing concepts in the development of the newly adopted master plan is the relocation of parking to campus gateways and into parking garages rather than surface parking lots. This parking structure directly supports that identified goal. The new parking structure will be located near the northeast university entrance at San Francisco, which is the main north / south arterial route on campus. It will supplement the west campus parking structure located at Riordan and Knoles Drive.

• In previous master plans, it was discovered that approximately 65 acres of NAU campus were devoted to surface parking and dissected the campus into a maze of disjointed parking lots. Additionally, the campus was further impacted by the associated roadways required to reach those parking lots. The new parking structure at San Francisco will enhance pedestrian safety and improve the campus pedestrian corridor by reducing campus traffic and moving it into a readily accessible parking structure. Elimination of interior surface parking allows the university to convert surface lots into distinct, green space for students to gather and interact.

• Parking and traffic management facilitate the development of an attractive,

functional campus. The NAU master plan identifies the need to simplify the campus circulation system and enhance campus landscaped open space by removing parking from the core to perimeter parking structures.



• The parking structure is a 6-story facility that will be constructed in phases on the site of P-31, a parking surface in the area north of Tinsley Hall and south of the Bookstore. The project location is along South San Francisco and across the street from the new Health and Learning Center whose construction has utilized a surface parking lot. Additionally, the location is consistent with the master plan parking sites and pedestrian accessibility. A second phase of the parking structure will begin after staff in Fronske is relocated to the Health and Learning Center and Fronske is demolished. The total capacity of the parking structure will include a total of 1,369 parking spaces, with each phase constructing 685 spaces and 684 spaces respectively. This project is being removed from the privatized development due to cost savings to the university.

• It will be designed in accordance with university Design Standards and will be

constructed of high quality, maintainable materials and building systems to maximize energy efficiency and minimize operational, repair and replacement costs. The university is reviewing cast-in-place concrete structure advantages, as well as pre-cast concrete construction options.

• In an effort to demonstrate the university’s commitment to responsible,

sustainable design, and in response to the Governor’s mandate that facilities be designed in a sustainable manner, this new construction project will incorporate sustainable materials and practices wherever possible.

• All applicable spaces within project will comply with the ABOR space guidelines.

At this time, there are no spaces to which the guidelines apply. 5. Programming and Design Costs, and Exceptions (if Required), to Achieve


• Programming and design costs for the project will not exceed the limits defined in ABOR Policy, Chapter VII (7-107.C.3. and 7-107.E.3). Consultant and design professional services for Project Implementation Approval will not exceed three percent (3%) of the estimated total project budget.



• Selection of the Design Professional and Construction Manager at Risk (CMAR)

is ongoing. The CMAR will be selected through the capital project selection committee process prescribed by the ABOR Procurement Code. A licensed contractor from the community will be included on the selection committee as required by ABOR policy.




• The new San Francisco Parking Structure construction project has an estimated total budget of $25 million. Funding for the construction would be system revenue bonds. The debt service would be funded by auxiliary funds. It is anticipated the project will be revenue neutral by creating sufficient revenue to support debt service, operations, and maintenance costs through the sale of permits, short term parking fees, event parking fees and higher permit fees.

• Comparable costs for this project cannot be determined at this conceptual stage of the project. When projects are identified, comparable projects and costs will be provided at Project Implementation Approval or Project Approval phase pending process revisions. Costs will be determined based on preliminary estimates from recent NAU projects, third-party estimates, DP estimates and CMAR estimates.

• For this Capital Development Plan phase, no preliminary external cost estimates have been provided by third-party consultants.

• The Construction Manager is at risk to provide the completed projects within the

agreed upon Guaranteed Maximum Price (GMP). A final report on project control procedures such as change orders and contingency use will be provided at project completion.



• This project is in the conceptual phase. Design Professionals (DP) will be

selected per Board policy. Design is expected to be complete in approximately six to nine months after DP contract or contracts are awarded.



• The project funding would be system revenue bonds. The debt service would be funded from auxiliary parking fees and other auxiliary funds.

• This project is a phased project. Each phase would construct approximately ½ of the 1369 parking spaces. As such, each phase increase for operations and maintenance costs is estimated at $287,500.

• Debt Ratio Impact: The incremental debt ratio for this project would be 0.45%


• There is no backfill plan associated with this project.

11. Alternatives:

• Encourage students, faculty and staff to utilize mass transit.


12. Project location map: San Francisco Parking Structure, North Campus

McConnell Drive

Knoles Drive

Runke Dr.

University Drive

University Drive

Run

ke C

ircle

S. S

an F

ranc

isco

St.

Riordan Rd.

Knol

es D

r.

Blome Dr. South

Mt.View Dr.

Rior

dan

Ranc

h Rd.

Dupont Dr.

Knol

es D

r.

Beav

er S

t.

Franklin Ave.

McMullen Circle

Tormey Ave.

Osb

orne

Dr.


Milton R

oad

Butler Ave.

SCALE

0 100' 300'200'

NEW CONSTRUCTION

ACADEMIC BUILDINGS

RESIDENCE HALLS

SUPPORT FACILITIES

Mt. View Hall


HRM

Bookstore

Wall AquaticCenter

DuplicatingServices

CentennialBuilding

WettawBuilding

NorthHall


Old MainAshurst

LABFacility


Annex

ChemistryBuilding

BiologyBuilding

PhyScience

LiberalArts

NorthUnion

BlomeBldg

GammageBuilding

FrierHall


RoseberryApt



ClineLibrary

AdelMathCounseling

and TestingCenter

Plateau Center


PetersonHall

University Union

GillenwaterHall


ArdreyAuditorium

TinsleyHall



FronskiHealthCenter

GatewayCenter

AllenHall

Wilson Hall


Systems

ARD

Anthropology Lab


ReillyHall

CampusHeights

GabaldonHall


San Francisco Parking Structure


Arizona Board of Regents Northern Arizona University

Capital Development Plan Project Justification Report Privatized Residence Hall

(NAU RFP Number: #P09CL002)

1. Previous Board Action: • Capital Development Plan June 2010





• The mission of Northern Arizona University is to provide an outstanding undergraduate residential education. This project directly supports that mission by seeking to provide residential options for students within a vibrant community setting.

• Increasing enrollment on the Flagstaff campus has led to increased demand for

student housing. Wait lists are common and student demand exceeds available campus housing. The university expects the increasing enrollment trend to continue and the demand for student housing to continue. Projections indicate a potential shortage of 1,300 beds over the next three years.

• In addition, Residence Life data indicates students who live on campus have a

higher success rate than those who do not. Retention and graduation rates are considerably higher for those students residing in campus housing. Campus housing provides a safe, supportive learning environment. Even with the recent new residence complexes and housing, much of the existing campus housing is approaching 50 years of age and will require major mechanical renovation or replacement. In addition, these units will require modification to meet student technology needs.


4. Project Description / Scope / Compliance with Space Standards:

• The Request for Proposal for Development and Management of Student Housing and Campus Projects includes the option for development of two (2) housing projects: 1) An upperclassmen apartment facility consisting of approximately 500 or more beds; 2) one (1) suite style facility for non-Freshman students and consisting of approximately 800 beds. It is the university’s intent that all applicable spaces will comply with ABOR Space Guidelines.

• The university intends to develop a comprehensive long-term capital improvement plan primarily for student housing, but may include related development projects such as parking structures, faculty and staff housing, retail space and academic facilities consistent with the adopted campus master plan, the current update in process, residence life programming objectives and the university’s long-term capital plans.

5. Programming and Design Costs, and Exceptions (if Required), to Achieve Project Implementation:

• The Project Developer is expected to cover all costs.

6. Project Delivery Method and Process: • The university has selected a qualified Developer(s) that demonstrated superior

knowledge, experience, organization, and financial ability to implement large, complex, and innovative projects. The method of selection was a two-phase process consisting of a submittal of qualifications followed by proposals.

• Phase I Qualifications were based on an Executive Summary, Developer

Profile/Information, Development Team Profile, Previous Development Experience, Financial Capability, Student Housing Management Experience and any additional information that would assist in the university’s evaluation.

• A qualified Developer’s list was created from the submitted qualifications.

Developers on the qualified list were requested to submit additional detailed information on Financials, Development Proposals, and other critical criteria.



• Estimated costs and project scope are undetermined until all proposals are received and reviewed. It is the university’s intent to bring to the Board an information item with details of the selection process and selected Developer(s). The university will include information regarding the proposed agreement terms with the Developer(s) as well.


• The University delayed negotiating an Agreement to Lease due to the master plan update. At the completion of the master planning efforts, NAU has resumed contract negotiations. Once the Agreement to Lease is executed, the university and private developer will begin to negotiate the ground lease terms. The university will bring several drafts of the ground lease to the board for review and input prior to final execution of such lease

• The final list of project developers includes American Campus Communities,

Inland America and Capstone.


• The construction project is anticipated to be funded through a ground lease agreement. A master ground lease agreement between the university and a Project Developer will facilitate the ability of a Developer to finance the project. The university retains ownership of the project site.

• Benefits to the university from this type of agreement include:

1. No capital investment or bonded financial obligation to the university. 2. Debt ratio and bonding capacity are preserved for academic and other facility

needs. 3. Upon termination of the ground lease, ownership of the facility reverts to the

university free of encumbrances.


• A backfill plan is not applicable to this project.

11. Alternatives:

• There are no viable alternatives to this project at this time.


12. Project location map: Privatized Residence Hall; Sites consistent with newly adopted Master Plan

fire pit

95

Pine Knoll Dr.

McConnell Drive

McConnell Drive

Knoles Drive

Runke Dr.

University Drive

University Drive

Run

ke C

ircle

S. S

an F

ranc

isco

St.

Riordan Rd.

Knol

es D

r.

Blome Dr. South

Mt.View Dr.

Rior

dan

Ranc

h Rd.

Franklin Ave.

Tormey Ave.

Osb

orne

Dr.


Mi

SCALE

0 100' 300'200'

7373

NEW CONSTRUCTION

ACADEMIC BUILDINGS

RESIDENCE HALLS

SUPPORT FACILITIES

Mt. View Hall


HRM

Bookstore

Wall AquaticCenter

Taylor Hall

LABFacility


Annex

Building

BiologyBuilding

PhyScience

LiberalArts


RoseberryApt



ClineLibrary

AdelMathCounseling

and TestingCenter

Plateau Center


PetersonHall

University Union

GillenwaterHall


ArdreyAuditorium

TinsleyHall



FronskiHealthCenter

GatewayCenter

AllenHall

Wilson Hall


Systems

ARD

Anthropology Lab


ReillyHall

CampusHeights

GabaldonHall



McConnellHall



Center

HealthProfessions

Engineering


BehavioralSciences

SouthPlant

EmeraldComplex


Privatized Residence Halls Two proposed sites include Hilltop Field along South San Francisco and a parking surface along McConnell Drive west of Pine Ridge Village. Other Locations are pending Master Planning discussions.



Contact: Morgan R. Olsen, Executive Vice President, Treasurer and CFO, (480) 727-9920, [email protected]

ITEM NAME: New Business School Facility Project Implementation Approval (ASU)

Action Item Discussion Item Information Item Previous Board Actions:

FY 2009 Capital Development Plan June 2008 FY 2010 Capital Development Plan June 2009 FY 2011 Capital Development Plan June 2010

Statutory/Policy Requirements:

• Board Policy 7-109 requires Capital Committee review and Board approval of

projects with a total project cost over $5 million.


• Approximately twelve years ago, in August of 1997, the W. P. Carey School of Business completed an AACSB (Association to Advance Collegiate Schools of Business) report for reaccreditation. The report was overwhelmingly positive concerning faculty, students and programs. However, AACSB noted that the school must improve its facilities to reach the top echelon of business schools.

• Architectural and program studies show that a new facility is critical to meet the school’s current and future needs, as well as accommodate new technology/infrastructure requirements. Existing instructional spaces, MBA classrooms, academic and administrative unit offices, and student services spaces do not meet industry standards and are all undersized. The number of student team rooms, recruiting, and career management interview rooms should be doubled. A portion of the school’s research function, best located in proximity to the faculty and departments, was relocated into off-campus leased space eleven years ago. Teaching support areas for graduate and teaching assistants are not contiguous to faculty.

Issue: Arizona State University requests Project Implementation Approval for the New Business School Facility at the Tempe campus. The 125,000 square foot, $58.5 million project is to be financed with System Revenue Bonds to be repaid over 30 years from tuition and other local funds.



• Current space shortages have become critical deficiencies and are restricting even basic development of programs. The projected growth for faculty, staff and graduate assistants over the next five years is more than 100. Additionally, in the last year the undergraduate program’s successful new BA program has seen enrollment figures grow with over 1,000 new students, increasing needs for more staff sooner than originally planned.

• Executive education is a key revenue source and a major component for the

school in attaining national recognition and top 25 status, yet the school does not have an executive education-specific facility and shares spaces with other programs. To support expansion of executive education programs, dedicated classrooms, student study and interaction spaces, and break out rooms are needed.

• This new building is in alignment with the ASU strategic plan and ABOR’s 20/20 Vision plan. The project meshes with the ASU goal to “Establish National Standing in Quality and Impact of Colleges and Schools in Every Field,” as well as the goal to “Enhance Our Local Impact and Social Embeddedness.” To increase the national standing of ASU and the School of Business, the facilities in which world class education is conducted should be on a level commensurate with the instruction. Over the last decade, the school has made impressive progress in the national business school rankings and is poised to take its place among the top 25 business schools in the nation. As the WP Cary School of Business continues to rise in prominence, students and graduates will continue to impact economies and communities from a local to global scale.

Project Description/Scope/Compliance with Space Standards:

• The New Business School Facility will encompass approximately125,000 gross

square feet.

• The building is planned to be a mid-rise sustainable structure, with a minimum of LEED silver certification. The facility will house MBA, Executive MBA, and Executive Education programs, as well as MBA Administration and Career Management services for graduate and undergraduate students. Included in the planning will be state-of-the-art classrooms, a lecture hall/auditorium, computer labs, specialized industry spaces, executive education facilities, conference/seminar rooms, interview and team rooms, and study areas for undergraduate, graduate, and executive students.

• The building design will support community engagement and public events, with

a 299-seat auditorium, significant shaded outdoor gathering spaces, and interior space for interactions between students, faculty and business leaders.



• The project will be in conformance with applicable ABOR space guidelines.

• To maximize the long-term investment in this facility, the project will be built to

last 100 years. The facility has been designed in accordance with the ASU Design Guidelines, and will be constructed of high quality, durable, maintainable materials and building systems to maximize energy efficiency and minimize operational, repair and replacement costs.


• This project is being delivered through the Construction Manager (CM) at Risk method. This approach was selected for the project because it can save time through fast-track project scheduling, provides contractor design input and coordination throughout the project, improves potentially adversarial project environments, and allows for the selection of the most qualified contractor team for each individual project. With the use of two independent cost estimates at each phase, and low-bid subcontractor work for the actual construction, this method also provides a high level of cost and quality control.

• The CM at Risk (CMAR) was selected through the capital project selection

committee process prescribed by the ABOR Procurement Code. Seventeen (17) responses to the project Request for Qualifications (RFQ) were received and three (3) of the responding teams were short-listed for interview. A licensed contractor from the community was included on the selection committee as required by Board Policy. The design team was selected through a similar ABOR process, and four (4) teams were interviewed out of the nineteen (19) RFQ responses received.

Project Costs:

• The estimated project budget is $58,500,000. This represents a construction cost

of $316 per square foot and a total project cost of $468 per square foot. The construction cost is based on analysis of the conceptual and preliminary schematic design plans by the CMAR and has been closely examined for efficiencies.

• The table below displays comparable projects, with construction costs per square foot escalated to 1st quarter 2012 (New Business School Facility construction midpoint):



Comparable Project Location Project Size Year

Completed Escalated

Const. Cost / SF Ross School of Business,

University of Michigan Ann Arbor, MI 280,895 2008 $441

Wharton School of Business, University of Pennsylvania Philadelphia, PA 278,000 2002 $334

Average Comparable Project 279,448 $388

• Considering these relevant comparable construction costs, the New Business

School Facility construction cost budget of $316 per square feet is considered to be appropriate.

• For this Project Implementation Approval phase, two preliminary independent

cost estimates have been provided, one by the Design Professional and one by the CMAR. These estimates have been reconciled together to confirm accurate, competitive scope quantities and unit prices to form the estimated cost for the entire scope of work. The CM’s current estimate is made up of roughly 80 percent of the estimate being prepared by the CM team using historical escalated systems costs and 20 percent price projections from subcontractors.

• Once the Guaranteed Maximum Price (GMP) is agreed upon, the CM is at risk to provide the completed project within that price. All subcontractor work will be awarded on the basis of the lowest responsive and responsible subcontractor bids. A minimum of three subcontractor bids are required except for specialty items or instances where proprietary systems are required, such as for energy management systems and door locks. A final report on project control procedures such as change orders and contingency use will be provided at project completion.


• This project is in the design phase. The Design Professional (DP) and CMAR

have been identified using a standard selection process. Design will be completed in the next few months.

• General construction is scheduled to begin once the GMP is accepted and all

approvals are in place. Construction will be completed approximately 18 months later.




• System Revenue Bonds (SRBs) will be issued to finance this project. The bonds will be repaid over thirty years. The annual debt service is estimated at $4.2 million, based on a borrowing cost of 6 percent, and will be paid from tuition and other local funds.

• The annual operations and maintenance costs for the building are estimated at

$1,224,000. Arizona State University will request a General Fund Appropriation for operations and maintenance support through the standard legislative request process.

• This project was included in the debt ratio calculation of the 2010 Debt Capacity,

which showed that ASU’s maximum annual debt service on all outstanding debt, all approved Capital Development Plan (CDP) projects and all first year Capital Improvement Plan (CIP) projects was 5.7 percent of the University’s total projected expenditures. The incremental debt ratio for this project would be 0.22 percent.

Committee Review and Recommendation:

• The Capital and Project Finance Committee reviewed the project at its November 18, 2010 meeting and recommended forwarding for Board approval, with the condition that ASU secure at least $12 million in gift commitments before submitting for Project Approval.

Recommendation to the Board:

It is recommended that the Board grant Project Implementation Approval for the ASU New Business School Facility at the Tempe campus, as presented in this Executive Summary, and with the condition that ASU secure at least $12 million in gift commitments before submitting for Project Approval.



Capital Project Information Summary University: Arizona State University Project Name: New Business

School Facility Project Description and Location: This project is planned to construct an approximately 125,000 gross square foot facility directly east of the Business Administration buildings at the Tempe campus. The building will house classrooms, office and support spaces, circulation, meeting and research spaces, and teaching and computer labs. Project Schedule: Planning June 2009 Design January 2010 Construction July 2011 Occupancy January 2013 Project Budget: Facility Useful Life (approx) 100 years Total Project Cost $ 58,500,000 Total Project Construction Cost $ 39,462,594 Total Project Cost per GSF $ 468 Construction Cost per GSF $ 316 Change in Annual O and M Cost: Utilities $ 510,000 Personnel 323,000 All Other Operating 391,000 Subtotal $ 1,224,000 Funding Sources: Capital

A. System Revenue Bonds $ 58,500,000 (Funding Source for Debt Service: Tuition and Other Local Funds) Operation/Maintenance Funding Source: General Fund Appropriation $ 1,224,000



University: ASU at the Tempe campus Project:

Capital ProjectDevelopment Implementation Project

Plan Approval ApprovalCapital Costs1. Land Acquisition -$ -$ -$ 2. Construction Cost - - - A. New Construction 41,282,800 35,600,000 - B. Renovation - C. Special Fixed Equipment - 920,000 - D. Site Development (excl. 2.E.) - 1,288,000 - E. Parking and Landscaping - 1,200,000 - F. Utilities Extensions - 454,594 - G. Other* - - Subtotal Construction Cost 41,282,800$ 39,462,594$ -$

3. Fees A. Construction Mgr -$ -$ -$ B. Architect/Engineer 4,747,200 4,747,200 - C. Other 1,000,000 1,489,000 - Subtotal Consultant Fees 5,747,200$ 6,236,200$ -$

4. FF&E Movable 4,000,000$ 3,956,000$ -$ 5. Contingency, Design Phase 1,200,000 1,186,800 - 6. Contingency, Constr. Phase 3,200,000 3,164,800 - 7. Parking Reserve - - - 8. Telecommunications Equipment 2,000,000 1,978,000 - Subtotal Items 4-8 10,400,000$ 10,285,600$ -$

9. Additional University Costs A. Surveys, Tests, Tempe Develop. Fee 200,000$ 200,000$ -$ B. Move-in Costs 250,000 250,000 - C. Printing Advertisement 50,000 50,000 - D. Keying, signage, facilities support 120,000 120,000 - E. Project Management Cost (3%) 1,746,000 1,702,350 - F. State Risk Mgt. Ins. (.0034 **) 204,000 193,256 - Subtotal Addl. Univ. Costs 2,570,000$ 2,515,606$ - -$ TOTAL CAPITAL COST 60,000,000$ 58,500,000$ -$

* Universities shall identify items included in this category** State Risk Management Insurance factor is calculated on construction costs and consultant fees.

Capital Project Cost Estimate

New Business School Facility

EXECUTTIVE SUMMMARY

Board of RDecem

Regents Member 9-10, 2

ItemPage 8

eting 2010

m #10 8 of 8



Contact Information:

Morgan R. Olsen, Executive Vice President, Treasurer and CFO; (480)727-9920, [email protected]

ITEM NAME: Issuance of System Revenue Bonds to Finance the Health Services Expansion and Renovation Project, Acquisition of the Centerpoint Office Building, and Other Projects Not Requiring Board Approval (ASU)


Previous Board Actions CDP

ApprovalPI

Approval PA

Approval Board

ApprovalFY 2011 Debt-Financed Projects under $5 million * 6/10/10 Acquisition of the Centerpoint Office Building 6/11/10Health Services Expansion and Renovations 6/20/08 6/11/10 9/2/10 * PIA, PA not required; no individual project is greater than or equal to $5 million. Statutory/Policy Requirements

• Board Policy 7-102D requires Capital Committee review and Board approval of all

bond and certificates of participation (COPs) financings.

Projects to be Financed

• The following projects have received required ABOR approvals and favorable review by the Joint Committee on Capital Review (JCCR), (in millions): FY 2011 Debt-Financed Projects under $5 million $28.2 Acquisition of the Centerpoint Office Building 11.5

Issue: Arizona State University requests authorization: (a) to sell one or more series of System Revenue Bonds (SRBs) to produce sufficient proceeds to finance (1) not-to-exceed $54.5 million for the cost of acquiring, constructing and equipping the previously approved FY 2011 projects; (2) not to exceed $1.0 million for costs of issuance, including bond underwriting fees; (3) payments to a bond insurer or other credit enhancer, provided such payments provide a benefit that exceeds the amount of such payments; (b) to sell such bonds at a price at, above, or below par and at fixed or variable rates of interest; (c) to take related actions, including designating any such bonds as Build America Bonds under federal law; and (d) to enter into necessary agreements and to execute all necessary documents including those related to bond insurance or other credit enhancement agreements.



• The following projects have received required ABOR approvals and were scheduled

for JCCR review on October 6, 2011; however, the meeting was cancelled. The University expects the projects to be reviewed at the next JCCR meeting and these projects will not be financed until after review, (in millions): FY 2011 Debt-Financed Projects under $5 million $ 4.8 Tempe Health Services Expansion and Renovation 10.0 Costs of issuance, including underwriting fees 1.0

Total $55.5 Background/Strategic Implications

• The debt service funding sources of these projects include tuition, indirect cost

recovery, student fees, and other local funds.

• Existing debt service as a percentage of ASU’s total expenditures is 4.9 percent. The debt service for these projects will increase this ratio by an estimated 0.29 percent, to 5.2 percent overall.

• All of the projects will be financed on a level debt service basis beginning in fiscal

year 2012 and over an approximately 20-year financing term, with the exception of the Centerpoint Office Building acquisition, which will be financed over a 15-year term.

• Based on a 6.0 percent true interest rate, the estimated annual debt service

requirement in Fiscal Year 2011 (interest only for approximately half a year) is $1.6 million, $4.9 million annually in fiscal years 2012 through 2026, and $3.7 million thereafter through 2031. The true interest cost for the financing, based on current market interest rates, is estimated at 4.15 percent, which results in annual debt service payments by the University in Fiscal Year 2011 of $1.1 million, $4.3 million in fiscal years 2012 through 2026, and $3.2 million thereafter through 2031. ASU’s maximum annual debt service as a percentage of total expenditures, including potential future capital projects presented in the 2010 Debt Capacity, is 5.7 percent, significantly under the 8 percent maximum.

Financing Approach and Structure

• Depending on market conditions at the time of sale, ASU may issue the entire amount, or a portion of the financing, through fixed rate or variable rate SRBs. Given current market conditions, including low long-term interest rates and the shortage of credit facilities in the short-term variable rate markets, ASU anticipates selling fixed rate bonds with the financing period varying by project from 15 to 20 years.



• The University will evaluate bond insurance from the one higher-rated bond insurer currently in the market. The final decision as to whether insurance will be used for the bond issue will be a function of market conditions and the bond insurer’s ratings at the time of pricing the bonds. Bond insurance will only be used if the insurance provides a demonstrated economic benefit to ASU, as required to be certified to by the underwriter pursuant to federal tax law.

• ASU also intends to analyze selling all or a portion of the Bonds as designated

Build America Bonds (BABs). BABs entail the issuance of bonds with a taxable rate of interest, but permit ASU to file for a cash subsidy payment from the U.S. Treasury in an amount equal to 35 percent of the interest costs paid on each interest payment date on any bonds issued as BABs prior the end of the calendar year. The decision to issue any portion of the SRBs as BABs will be a function of market conditions at the time the bonds are sold and whether BABs provide a sufficient savings to ASU, net of any increased costs.

• Based on current municipal bond market conditions and the proposed amortization

structure for the bonds (which reflects an average maturity life of 11.6 years), ASU’s financial advisor estimates the bonds would sell at an overall true interest cost of approximately 4.15 percent. ASU will proceed with the project if the overall true interest cost of the issue is no more than 6.0 percent.

• The following financing parameters would apply to the sale of the bonds and be set forth in the Bond Resolution:

• The maximum interest rate at which the bonds are authorized to be sold is a true

interest cost of 6.0 percent.

• The financing period for the SRBs is through July 1, 2031 (approximately 20.5 years from their date of issuance).

• The University will utilize its current financial advisor, RBC Capital Markets, its

current bond counsel, Ballard Spahr LLP, and a bond trustee previously approved by the Board. The bonds will be marketed and sold on a negotiated basis to one or more investment banking firms selected by ASU through a competitive proposal process and previously approved by the Board.

• The University may enter into various agreements in connection with the SRBs, such as a bond insurance or other credit enhancement agreement, to lower the net borrowing costs, and a reserve fund surety agreement, if needed to market the SRBs.



Recommendation:

Committee Review and Recommendation: • The Capital and Project Finance Committee reviewed the item at its November 18,

2010 meeting and recommended forwarding for Board approval. Recommendation to the Board: It is recommended that the Board authorize the issuance of one or more series of System Revenue Bonds for Arizona State University to produce sufficient proceeds to finance:

(1) not to exceed $54.5 million for costs associated with FY 2011 debt

financed projects, with authorization limited to JCCR reviewed projects without scope or budget changes that would require additional Board approval;

(2) not to exceed $1.0 million for costs of issuance; and

Comments

Not-to-Exceed Project Costs $54,500,000

Issuance Costs (not-to-exceed) $1,000,000

Credit Enhancement/Insurance Cost TBD Only executed if economically beneficial

Interest Rate (current market as of 10/26/10/not-to-exceed)

4.15%/6.0% Not-to-exceed based on maximum University is willing to pay.

Maturity Range 2012 - 2031 Projects will be financed over different maturity ranges.

Average Instrument Life 11.6 years

Estimated Debt Service for 2011 (interest only), funded from tuition, indirect cost recovery, student fees, and other local funds.

$1.6 million Based on the 6% not-to-exceed interest rate

Estimated Annual Debt Service for 2012 – 2026, funded from tuition, indirect cost recovery, student fees, and other local funds.


Estimated Annual Debt Service for 2027 – 2031, funded from tuition, indirect cost recovery, student fees, and other local funds.




(3) payments to a bond insurer or other credit enhancer provided such

payments provide a benefit that exceeds the amount of such payments; and to sell such bonds at a price at, above or below par and at fixed or variable rates of interest; to take related actions; and to enter into necessary agreements and to execute all necessary documents, including those related to bond insurance or other credit enhancement agreements, all as more fully provided in a supplement and amendment to the University’s existing Master Bond Resolution.



Contact Information: Misty Hansen, UA Healthcare, Chief Financial Officer, [email protected], 520-694-4091

Item Name: Issuance of Revenue Bonds to Refund a 1993 Bond Series and for Financing Reimbursement of Prior Capital Projects (UAHC/UMCC)


Previous Board Actions:

Series 1993 Bond approval March 18, 1993 Series 2004 Bond approval January 23, 2004 Series 2005 Bond approval September 29, 2005 Series 2009 Bond approval April 30, 2009


• UMCC has operated University Medical Center under the statutory authority of

A.R.S. §15-1637 since November 1984. • UMCC operates under the Amended and Restated Lease and Conveyance

Agreement (LCA) (as subsequently amended and restated) for a term ended September 30, 2039 and an Educational Agreement, both between the ABOR and UMCC, which requires ABOR to approve the Bonds.

• Under UMCC’s Bylaws, approval by UAHC of the Bonds is required (Article IV,

Section 2(l)). The UAHC Board approved the Bonds on September 22, 2010.

Issue: UA Healthcare (“UAHC”) and University Medical Center Corporation (“UMCC”) request approval to sell revenue bonds to produce sufficient proceeds to finance (1) not to exceed $36 million to refund selected or all maturities of the UMCC’s Series 1993 Hospital Revenue Refunding Bonds (“1993 Bonds”) in order to obtain interest savings; (2) not to exceed $40 million issuance of Hospital Revenue Bonds (the “Bonds”) for a new parking facility and other capital expenditures; (3) not to exceed $1,330,000 to pay costs of issuance; (4) payments to bond insurer or other credit enhancer provided that such payments provide a benefit that exceeds the amount of such payments; (5) payments pursuant to any related interest rate swap or lock agreements; and (6) to take all related actions, entered into all necessary agreements and execute all necessary documents, as provided in the Supplement Resolution, reviewed by ABOR counsel and staff, as long as net present value savings of at least 3% of the bonds being refunded is achieved.


Item #12 EXECUTIVE SUMMARY Page 2 of 9 Background/ Strategic Implications Refunding the 1993 Bonds • The 1993 Bonds were originally issued in May 1993 for a total issuance of

$54,750,000, of which $31,185,000 remain outstanding. The average interest rate on the 1993 Bonds now outstanding is approximately 5%. On the basis of current interest rates, a refunding of the 1993 Bonds would save approximately $1.6 million over the next eleven years on a net present value basis, after all issuance costs, with the present final maturity of 2021 staying the same. This amounts to a savings level of 4.78% of the bonds being refunded.

• The feasibility of refunding the 1993 Bonds is very sensitive to current market conditions (interest rates at the time of pricing). The current estimated all in interest rate for a refunding of the Series 1993 Bonds is 4%. If interest rates increase 25 basis points (25 one-hundredths of one percent), or to 4.25%, the net present value savings would decrease to $1.2 million or 3.4% of the bonds being refunded. On the other hand, if interest rates decrease by 25 basis points, to 3.75%, the net present value savings would increase to $2.1 million, or 6.1% of the bond being refunded.

• The norm within the tax exempt bond industry is that a refunding not be done unless

the net present value savings are at least 3% to 5% of the bonds being refunded. The goal for UMCC is to achieve the lowest cost of capital and realize the highest refunding savings possible, with a target no less than a savings of at least 3% of the bonds being refunded. The requested approval is to refund the 1993 Bonds at any time that a net present value savings of at least 3% can be obtained.

New Issuance for Capital Reimbursement

• Taking into consideration current interest rates, tolerance of additional UMCC debt,

favorable rating agency outcomes and current market conditions at the time of debt issuance, as well as the cost of issuance of debt, UMCC seeks approval to reimburse the Corporation for up to $40 million of previously expended capital. Projects to be reimbursed are as follows:

Employee Parking Garage $20,000,000 Completion of Diamond Children’s Medical Center 13,000,000 Other Capital Reimbursement 7,000,000 $40,000,000

• UMCC has funded these capital projects from operations, as originally intended. Any

capital reimbursement of funds expended would improve the liquidity position of UMCC and UAHC.


Item #12 EXECUTIVE SUMMARY Page 3 of 9 • The new issuance for capital reimbursement will have maturities extending through

2041. These maturities are scheduled to wrap with existing UMCC outstanding indebtedness to allow for level debt service payments. The useful life of the reimbursable assets will support the debt maturities.

• UMCC currently maintains approximately $280 million of long-term indebtedness with strong debt service coverage ratio of 2.6x. In conjunction with the issuance of a potential $40 million of new long-term indebtedness, UMCC would maintain strong pro-forma debt service coverage of 2.5x, while improving the liquidity of UMCC. The reimbursement proceeds will increase UMCC’s day’s cash on hand from approximately 93 days to 121 days.

Financing Plan • UMCC intends to refund outstanding 1993 Bonds and reimburse prior capital

expenditures by selling fixed interest rate bonds in a principal amount not to exceed $76 million. The refunding portion of the Bonds would have a final maturity of July 1, 2021, the present maturity of the 1993 Bonds, the additional portion will have final maturities through 2041.

• UMCC will enter into various agreements associated with the bond issue, such as a bond purchase agreement and a possible reserve fund surety bond agreement.

• The Bonds would be sold at current market rates at the time of pricing, as long as a

net present value savings of at least 3% of the bonds being refunded is achieved. • In recent UMCC bond rating evaluations, Moody’s affirmed a rating of Baa1 as of

July 15, 2010 and Standards and Poor’s affirmed a rating of BBB+ as of February 25, 2009. UMCC will present to both agencies before the 1993 Bond Refunding and issuance of the Bonds.

• The Bonds are expected to be issued under supplements to existing UMCC tax-

exempt bond documents and without any lien or security on any tangible real or personal property of UMCC or any of UMCC’s affiliates (other than on a debt service reserve fund held by the bond trustee). The Bonds will represent general unsecured obligations of UMCC and will not be obligations of or guaranteed by the State of Arizona, ABOR, the University of Arizona, UAHC or University Physicians Healthcare.

• UMCC intends to utilize its current bond counsel, Squire, Sanders & Dempsey L.L.P,

and its current underwriter, Bank of America Merrill Lynch, each of whom were previously approved by the Board of UMCC. U.S. Bank National Association, UMCC’s current bond and master indenture trustee, will remain in that capacity. The



Bonds would be marketed and sold on a negotiated basis to one or more of the investment banking firms previously selected by UMCC through a competitive proposal process and previously approved by the UMCC Board.

• The action requested will authorize UMCC to execute this financing within the

parameters approved by the Board. Refinance New Issuance Comments Project Costs $36,000,000 $40,000,000

Issuance Costs (not-to-exceed)

$630,000 $700,000Based on 1.75% underwriter fee and issuance costs.

Credit Enhancement/Ins Cost N/A N/A

None.

Interest Rate (anticipated/not-to-exceed)

3.70%/5.00% 5.00/6.50% Not-to-exceed based on maximum UMCC is willing to pay. Not-to-exceed based on 150 basis points above the estimated interest rate. Differences in rate ranges are the result of varying maturities.

Maturity Range 2021 2013-2039

Multiple series of the issuance will have different maturity dates.

Average Instrument Life 5-7years 12-20years

Annual Debt Payment: Series 2011 Bonds All UMCC Debt

$3.9 million$20.1 million

$9.2 million$20.1 million

Based on anticipated interest rates.


Item #12 EXECUTIVE SUMMARY Page 5 of 9 Committee Review and Recommendation: • The Capital and Project Finance Committee reviewed the item at its November 18,

2010 meeting and recommended forwarding for Board approval. Recommendation to the Board: It is recommended that the Board provide approval that UMCC be, and hereby is, authorized to sell one or more series of University Medical Center Corporation Series 2011 Hospital Revenue Refunding Bonds to produce sufficient proceeds to finance (1) not to exceed $36 million to refund all or a portion of its 1993 Bonds, (2) not to exceed $40 million issuance of the Bonds for reimbursement of a new parking facility and other capital expenditures, (3) not to exceed $1,330,000 to pay costs of issuance, (4) payments to bond insurer or other credit enhancer provided that such payments provide a benefit that exceeds the amount of such payments, (5) payments pursuant to any related interest rate swap or lock agreements, and (6) to take all related actions, enter into all necessary agreements and execute all necessary documents, as long as a net present value savings of at least 3% of the bonds being refunded is achieved, as presented in this Executive Summary and the attached resolution.




RESOLUTION APPROVING, AT THE REQUEST OF UNIVERSITY MEDICAL CENTER CORPORATION, THE ISSUANCE BY THAT CORPORATION OF ITS HOSPITAL REVENUE BONDS, SERIES 2011, FOR PURPOSES THAT INCLUDE PAYING COSTS OF CERTAIN IMPROVEMENTS TO UNIVERSITY MEDICAL CENTER AND OTHER FACILITIES OF THAT CORPORATION AND REFUNDING BONDS OF THAT CORPORATION PREVIOUSLY ISSUED FOR SUCH PURPOSE.

Whereas, the Arizona Board of Regents (the “Board”) and University Medical Center Corporation (“UMCC”) have entered into a Lease and Conveyance Agreement, as Amended and Restated as of July 14, 1989, and as further amended and supplemented to date (the “LCA”), pursuant to Section 15-1637 of Arizona Revised Statutes, as amended (the “Act”), by which the Board has leased to UMCC certain Land, and has conveyed to UMCC hospital Facilities and other property (as described in the LCA, commonly known as the “University Medical Center” and referred to herein as “Hospital”); and

Whereas, UMCC is authorized by the Act to issue its bonds for health care purposes and to refund bonds previously issued for such purposes, and UMCC has previously issued, with approval of the Board as required by the LCA, its $54,750,000 Hospital Revenue Refunding Bonds, Series 1993 (the “Series 1993 Bonds”), its $52,000,000 Hospital Revenue Bonds, Series 2004 (the “Series 2004 Bonds”), its $140,000,000 Hospital Revenue Bonds, Series 2005 (the “Series 2005 Bonds”) and its $61,800,000 Hospital Revenue Bonds, Series 2009 (the “Series 2009 Bonds”), all pursuant to a Bond Trust Indenture dated as of January 15, 1991, as amended and supplemented to date (the “Existing Bond Indenture”), between UMCC and U.S. Bank National Association, as successor bond trustee (the “Bond Trustee”); and

Whereas, UMCC secured its Series 1993 Bonds, Series 2004 Bonds, Series 2005 Bonds and Series 2009 Bonds by its related Series 1993 Note, Series 2004 Note, Series 2005 Note and Series 2009 Note, respectively, which Notes were issued pursuant to a Master Trust Indenture, as amended and restated as of July 1, 1987, as further supplemented to date (the “Master Indenture”), between UMCC and U.S. Bank National Association, as successor master trustee (the “Master Trustee”); and

Whereas, the Board of Directors of UMCC has determined that it is necessary and desirable for UMCC to issue, subject to approval by the Board as is required by the LCA, its Hospital Revenue Bonds, Series 2011 (the “Series 2011 Bonds”) in one or more series and in an aggregate principal amount not to exceed $76,000,000 and with a final maturity date not to exceed a date in 2040, in order to (a) pay or reimburse to UMCC for costs of the acquisition, construction, expansion, improvement and equipping


Item #12 EXECUTIVE SUMMARY Page 7 of 9 of UMCC’s health care facilities including, without limitation, any one or more of the following: construction of a parking structure to the north and west of University Medical Center, completion of the Diamond Children’s Medical Center and other health care facilities and projects contained in UMCC’s capital improvement plans or budgets, (b) fund capitalized interest and deposits to bond reserve funds, (c) pay costs of issuance and other charges related to the Series 2011 Bonds (items described in the preceding sentence are collectively referred to as the “2011 Project”), and (d) to refund some or all of the outstanding Series 1993 Bonds; and

Whereas, the Series 2011 Bonds will be issued pursuant to a supplement to the Existing Bond Indenture, or to a separate bond trust indenture or indentures between UMCC and the bond trustee therein named (collectively, the “2011 Bond Indenture”); and

Whereas, in connection with the issuance of the Series 2011 Bonds, UMCC will enter into a bond purchase agreement (the “Bond Purchase Agreement”) with the underwriter for the Series 2011 Bonds and may enter into one or more reimbursement or similar agreements (a “Reimbursement Agreement”) with one or more banks, bond insurers or other financial institutions (a “Credit Facility Issuer”) to obtain a letter of credit, bond insurance policy, other credit or liquidity facility, or any combination of the foregoing (a “Credit Facility”), in order to satisfy a bond reserve requirement for the Series 2011 Bonds or to enhance the credit or liquidity of the Series 2011 Bonds; and

Whereas, the Board of Directors of UMCC has further determined it is necessary and desirable to issue, subject to approvals by the Board as are required by the LCA, one or more of its Series 2011 Notes (the “Series 2011 Notes”) pursuant to one or more supplements to the Master Indenture (collectively, the “2011 Supplemental Master Indenture”) to secure its obligations to pay debt service on the Series 2011 Bonds and obligations to a Credit Facility Issuer, if any; and

Whereas, the Board of Directors of UMCC has requested the Board, pursuant to the provisions of the LCA, to consent to and approve the Series 2011 Bonds, the Series 2011 Notes, the 2011 Bond Indenture, the 2011 Supplemental Master Indenture, the Bond Purchase Agreement and any Reimbursement Agreement.

NOW, THEREFORE, BE IT RESOLVED BY THE ARIZONA BOARD OF REGENTS:

Section 1. The Board, pursuant to the LCA, hereby consents to and approves:

(a) the issuance by UMCC, in one or more series, of its Series 2011 Bonds and its Series 2011 Notes, each in an aggregate amount not to exceed $76,000,000 and with a final maturity not to exceed a date in 2041, for the purpose of paying costs of the 2011 Project and refunding some or all of the outstanding Series 1993 Bonds;



(b) the execution and delivery by UMCC of the 2011 Supplemental Master Indenture and the 2011 Bond Indenture, in substantially the forms as on file with the Secretary of this Board, with any changes as may be approved by UMCC including, without limitation, those to accommodate issuance of a portion of the Series 2011 Bonds supported by a Credit Facility and to issue some or all of the Series 2011 Bonds at variable interest rates upon such conditions as determined appropriate by UMCC; and

(c) the execution and delivery by UMCC of a Bond Purchase Agreement and any Reimbursement Agreement and all other documents and certificates which UMCC determines to be necessary or appropriate in connection with the issuance of the Series 2011 Bonds and Series 2011 Notes.

Section 2. That the President, Vice President, General Counsel, Secretary, Assistant Secretary or other authorized contracting officer of the Board, or any of them alone, are hereby authorized and directed to execute such documents and certificates and to take such further actions as UMCC determines to be necessary or appropriate consistent with the foregoing to consummate the transactions contemplated this Resolution.

Section 3. That nothing contained in this Resolution or in the documents relating to the Series 2011 Notes or the Series 2011 Bonds or any other instrument shall be construed as obligating the Board, the University of Arizona, the State of Arizona or any political subdivisions thereof, other than UMCC.

Section 4. All actions of any officers, agents and employees of the Board which are in conformity with the purposes and intent of the foregoing resolutions be, and the same are hereby, in all respects, authorized, approved, ratified and confirmed.

Section 5. Notice of Arizona Revised Statutes Section 38-511 is hereby given. The provisions of that statute are by this reference incorporated herein to the extent applicable to matters contained herein under the laws of the State of Arizona.

Section 6. That this Resolution shall be effective immediately.



ADOPTED AND APPROVED this ___ day of ______, 2010.

ARIZONA BOARD OF REGENTS By: Name: Title:



Contact Information David Bousquet, Senior Vice President, (928) 523.8449, [email protected] Jane Kuhn, Associate Vice President, (928) 523.7732, [email protected] Jennus Burton, Vice President, (928) 523.8871, [email protected]

Item Name: Skydome SPEED Renovation Revised Project Approval (NAU)


Capital Development Plan June 2008 SPEED Project Allocation July 2008 PIA/PA Approvals September 2008 Project Approval-Resubmitted September 2009 Statutory / Policy Requirements:

• Per the September 2009 Board approval for SPEED projects, NAU is updating the Board on the budget and guaranteed maximum pricing for SPEED projects.

Project Justification / Strategic Implications: SPEED Project Deferred Maintenance Project Description and Scope:

• The Skydome was designed and built before the American with Disabilities Act was introduced, which is the contributing factor to the current number of accessibility deficiencies in the facility and its identification for SPEED funds to address deferred issues. At 265,000 square feet, the Skydome is the largest facility in northern Arizona and is heavily used by the university and others in the northern region. The Skydome is a unique structure utilizing curved, arched glulam beams as the structural support for the roof membrane.

• The original SPEED project scope for the Skydome included phased construction, for fire life safety improvements and installation of a new fire suppression system on the concourse and lower level, as well as accessibility compliance for restrooms, seating and viewing areas. As part of the reconfiguration of seating, the aisle widths are being increased and handrailings are being installed. The ADA modifications address egress changes and restroom facility accommodations. Additionally, the original scope included other code deficiencies found in the existing locker room facilities which are being reconfigured to provide quick and safe access to and from the playing field.

Issue: Northern Arizona University requests revised Project Approval for the Skydome renovations originally being financed with SPEED revenue bonds. The revision includes a budget increase of $3.7 million to address foundation issues and additional code requirements. The increases will be funded with university funds. The total project cost is increasing from $21.9 million to $25.6 million.



• In order to meet restroom capacities required by code, the restrooms on both sides of the Dome have tripled in size. Fixture counts alone have increased 50% or more. This expansion has resulted in the elimination of existing office suites on the concourse level on both sides. Rebuilding of some office space was accommodated within the original budget; however, due to the size of the restroom reconfiguration and need for the replacement of lost athletic space (which includes coaches’ offices, student space and required compliance space), the build-out of an additional tier is required. An additional $1.2 million is being added to the Skydome budget for this portion of work.

• Additionally, NAU is increasing its Owner contingency to cover any unknown costs required by the International Code Committee’s October 25, 2010 report. NAU, in an Agreement with the State Fire Marshal’s office, agreed that all university construction plans will be sent to the International Code Committee for code review and compliance comments regarding fire life safety.

• During preliminary soil samplings and core drilling, the results revealed poor

existing soil compaction under the east and west concourse levels. Additional tests revealed similar results at the field level. Approximately 182 new structural piers, or micro-piles, must be installed to stabilize the Dome’s existing structural elements and to support the new construction. Typical caisson installation is not possible due to height restraints within the Dome structure where the installation is required. Also necessitating the micro-pile option is the limited access clearance to the concourse levels through standard 7 foot high doorways and low overhead space in the locker rooms beneath the spectator seating. An additional $2.5 million is being added to the budget for this correction.

• The approved budget for the Skydome project was originally $21.9 million. With the additional scope requirements, the budget is being increased to $25.6 million. The project’s 4 phases include: Phase I: Make Ready Package consisting of minor utility relocations in preparation for major demolition in Phase 2, increased utilities, and emergency backup equipment for code compliance. Total Budget: $2,445,361 Phase 2: Structural Package consisting of foundation work and micro-piles, ordering of elevators and structural steel and demolition activities. Total Budget: $6,592,388 Phase 3: MEP, Glazing and Long Lead Materials Package consisting of plumbing, HVAC, electric, audio visual improvements, fire suppression system and purchase of elevator, seating and glazing. Additionally, this phase includes the expanded Owner contingency and fixed seating costs. Total Budget: $12,324,927



Phase 4: Interior Code Compliance Construction Package consisting of construction of new restroom facilities, reconstruction of office space, reconstruction of non-compliant NCAA Title IX shower and locker room, installation of a fire suppression system and elevator, expansion of stairways and installation of handrails. Total Budget: $4,253,299


• This project is being delivered through the Construction Manager at Risk (CMAR) method. Gensler is the Design Professional and Barton Malow is the CMAR.

• Project Management: The project staffing plan includes one senior Facilities,

Design and Construction member from the University of Arizona, the NAU Manager of Construction, and an NAU senior project manager.

Project Costs:

• The total project budget is $25.6 million. The GMP is based upon 100% bid commitments from subcontractors. The total project cost per square foot is $97 and the renovation cost per square foot is $78.

• Due to the unique structural construction of the Skydome, comparable project costs are not available. Most glulam beam structures are found outside the United States.

• The CMAR is at risk to provide the completed project within the agreed upon GMP price. A final report on project control procedures such as change orders and contingency use will be provided at project completion.


• System Revenue Bonds for $21.9 million will be issued to finance the project. NAU will utilize general university funds for the remaining $3.7 million. Debt service will be paid from the University Capital Improvement Lease-To-Own and Bond Fund created as a result of the Stimulus Plan for Economic and Educational Development (SPEED) initiative. The fund will receive lottery revenues intended to cover 80% of the annual debt service, and university revenues intended to cover the remaining 20% of debt service.

• The university will pay interest only for the first 5 years of the SPEED projects in order to allow for implementation of newly authorized lottery enhancements and full realization of increased lottery revenues from those enhancements. The bonds issued for building renewal will be repaid over a 20 year period.

• Debt Ratio Impact: The SPEED Projects are exempt from the university debt ratio. However, the annual debt service (principal and interest) for all SPEED projects is estimated to be $3,969,000 for the $64.5 million in building renewal projects and issuance costs. The debt service for the Skydome project alone is $1,364,041.



• The incremental debt ratio for annual debt service on the $64.5 million in building

renewal projects is 1.01%. The projected highest debt ratio including these projects is 7.73%. This includes all projects in the university CDP and CIP, as well as the SPEED funded projects. The incremental debt ratio for Skydome only is 0.035%.

• The projected highest university debt ratio for all projects not including SPEED is 6.63%. This ratio remains well below the maximum debt ratio of 8%.


• General construction for the Skydome project is underway, with two phases remaining. The remaining phases include the expanded scope. Construction is scheduled to be completed December 2011.

Committee Review and Recommendation: • The Capital and Project Finance Committee reviewed the project at its November 18,

2010 meeting and recommended forwarding for Board approval. Recommendation to the Board: That the Board grant Revised Project Approval for the NAU Skydome SPEED Renovation project, as presented in this Executive Summary.



University: Northern Arizona University Project:

Capital RevisedDevelopment Project Project

Plan Approval ApprovalCapital Costs1. Land Acquisition -$ -$ -$ 2. Construction Cost - - - A. New Construction B. Renovation 21,900,000 18,574,251 C. Special Fixed Equip - - 2,000,000 D. Site Development (excl. 2.E.) - - - E. Parking and Landscaping - - - F. Utilities Extensions - - - G. Other*: Asbestos Abatement - - - Subtotal Construction Cost -$ 21,900,000$ 20,574,251$

3. Fees A. Construction Mgr (0.39%) -$ -$ 80,000$ B. Architect/Engineer (11.7%) - - 2,413,408 C. Other (1.09%) - - 224,264 Subtotal Consultant Fees -$ -$ 2,717,672$

4. FF&E Movable -$ -$ -$ 5. Contingency, Design Phase (0.25%) - - 50,408 6. Contingency, Constr. Phase (4.5%) - - 925,000 7. Parking Reserve - - 15,000 8. Telecommunications Equipment - - 100,000 Subtotal Items 4-8 -$ -$ 1,090,408$

9. Additional University Costs A. Surveys, Tests, Inspections, etc. -$ -$ 268,000$ B. Move-in Costs - - 20,000 C. Printing Advertisement - - 48,748 D. Keying, Signage, Facilities Support - - 50,000 E. Project Management Cost (3%) - 746,096 F. State Risk Mgt. Ins. (.0034 **) 75,800 G. Audit Costs/Field Personnel - - 25,000 Subtotal Addl. Univ. Costs -$ -$ 1,233,644$ TOTAL CAPITAL COST -$ 21,900,000$ 25,615,975$

*Universities shall identify items included in this category


Skydome Renovation, a SPEED project



Project Map:

fire pit

95

Pine Knoll Dr.

Pine Knoll Dr.

Huffer Lane

McConnell Drive

McConnell Drive

Knoles Drive

Runke Dr.

University Drive

Run

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S. S

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St.

7373

ACADEMIC BUILDINGS

RESIDENCE HALLS

SUPPORT FACILITIES

ARD

Anthropology Lab


ReillyHall

CampusHeights

GabaldonHall



McConnellHall



Center

HealthProfessions

EngineeringandTechnology


BehavioralSciences

RolleActivityCenter

HealthProfessions

SW ForestScienceComplex

SouthPlant

GreenhouseComplex Avian

CognitionLaboratory

RecyclingBuilding

CeramicsComplex

EmeraldComplex

SouthFamilyHousing

Skydome Renovation, a SPEED project



Contact Information David Bousquet, Senior Vice President, (928) 523.8449, [email protected] Jane Kuhn, Associate Vice President, (928) 523.7732, [email protected] Jennus Burton, Vice President, (928) 523.8871, [email protected]

Item Name: Liberal Arts SPEED Renovation Revised Project Approval (NAU)


Capital Development Plan June 2008SPEED Project Allocation July 2008PIA/PA Approvals September 2008Project Approval - Resubmitted September 2009

Statutory / Policy Requirements:

• Per the September 2009 Board approval for SPEED projects, NAU is updating the Board on the budget and guaranteed maximum pricing for SPEED projects.

Project Justification: SPEED Project for Deferred Maintenance Project Description and Scope:

• The NAU Liberal Arts Stimulus Renovation project includes fire life safety improvements and code compliance upgrades, ADA compliance modifications and repair/replacement of existing infrastructure. The focus of the NAU project corrects code deficiencies and addresses deferred maintenance in mechanical systems. The Liberal Arts building is a three-story structure, approximately 58,000 square feet which was constructed in the early 1960’s. An elevator was added in 1982. This building is heavily used for undergraduate education.

• After review and discussion of the code review comments provided by the International Code Committee, NAU has determined that exterior stairs for egress safety should be built on and included as part of the deferred maintenance corrections identified for Liberal Arts. These stairs are being added to the scope of the project for an additional $700K. Audiovisual upgrades include an additional $200K.

• The total project budget for Liberal Arts Stimulus Renovation was originally $8.9 million.

After the addition of code required stairs and user contributions, the budget has been revised as follows:

Speed Bonds $8,720,847Additional University Funds $900,000Revised Total Project Budget $9,620,847

Issue: Northern Arizona University requests revised Project Approval for the Liberal Arts Building renovations being financed with SPEED revenue bonds. The revision includes a budget increase of $900,000 for outdoor exterior stairs and audiovisual upgrades. The total project cost is increasing from $8.7 million to $9.6 million.


Item #14 EXECUTIVE SUMMARY Page 2 of 5 Project Delivery Method and Process:

• This project is being delivered through the Construction Manager at Risk (CMAR) method. Bustamante Kelly Collaborative is the Design Professional and Kinney Construction Services is the CMAR.

• Project Management: The project staffing plan includes one senior Facilities, Design and

Construction member from the University of Arizona, the NAU Manager of Construction, and an NAU senior project manager.

Project Costs:

• The total project budget is $9.6 million. The GMP is based upon 100% bid commitments from subcontractors.


• System Revenue Bonds for $8.7 million will be issued to finance the project. NAU will utilize general university funds for the additional $900,000. Debt service will be paid from the University Capital Improvement Lease-To-Own and Bond Fund created as a result of the Stimulus Plan for Economic and Educational Development (SPEED) initiative. The fund will receive lottery revenues intended to cover 80% of the annual debt service, and university revenues intended to cover the remaining 20% of debt service.

• The university will pay interest only for the first 5 years of the SPEED projects in order to allow for implementation of newly authorized lottery enhancements and full realization of increased lottery revenues from those enhancements. The bonds issued for building renewal will be repaid over a 20 year period.

• Debt Ratio Impact: The SPEED Projects are exempt from the university debt ratio. However, the annual debt service (principal and interest) for all SPEED projects is estimated to be $3,969,000 for the $64.5 million in building renewal projects and issuance costs. The debt service for the Liberal Arts project alone is $528,688.

• The incremental debt ratio for annual debt service on the $64.5 million in building renewal projects is 1.01%. The projected highest debt ratio including these projects is 7.73%. This includes all projects in the university CDP and CIP, as well as the SPEED funded projects. The incremental debt ratio for Liberal Arts only is 0.14%.

• The projected highest university debt ratio for all projects not including SPEED is 6.63%. This ratio remains well below the maximum debt ratio of 8%.


• General construction for the project is 5% completed. Construction is scheduled to be

completed August 2011. Committee Review and Recommendation: • The Capital and Project Finance Committee reviewed the project at its November 18, 2010

meeting and recommended forwarding for Board approval.


Item #14 EXECUTIVE SUMMARY Page 3 of 5 Recommendation to the Board: That the Board grant Revised Project Approval for the NAU Liberal Arts SPEED Renovation project, as presented in this Executive Summary.



University: Northern Arizona University Project:

Capital RevisedDevelopment Project Project

Plan Approval ApprovalCapital Costs1. Land Acquisition -$ -$ -$ 2. Construction Cost - - - A. New Construction B. Renovation 8,900,000 6,882,433 C. Special Fixed Equip - - 550,000 D. Site Development (excl. 2.E.) - - - E. Parking and Landscaping - - - F. Utilities Extensions - - - G. Other*: Asbestos Abatement - - 235,000 Subtotal Construction Cost -$ 8,900,000$ 7,667,433$

3. Fees A. Construction Mgr (0.0%) -$ -$ B. Architect/Engineer (9.1%) - - 700,216 C. Other (0.48%) - - 36,500 Subtotal Consultant Fees -$ -$ 736,716$

4. FF&E Movable -$ -$ 120,000$ 5. Contingency, Design Phase (0.20%) - - 14,734 6. Contingency, Constr. Phase (4.5%) - - 344,122 7. Parking Reserve - - 5,000 8. Telecommunications Equipment - - 75,000 Subtotal Items 4-8 -$ -$ 558,856$

9. Additional University Costs A. Surveys, Tests, Inspections, etc. -$ -$ 159,531$ B. Move-in Costs - - 100,000 C. Printing Advertisement - - 19,946 D. Keying, Signage, Facilities Support - - 20,054 E. Project Management Cost (3%) - 279,636 F. State Risk Mgt. Ins. (.0034 **) 27,125 G. Audit Costs/Field Personnel - - 51,550 Subtotal Addl. Univ. Costs -$ -$ 657,842$ TOTAL CAPITAL COST -$ 8,900,000$ 9,620,847$

*Universities shall identify items included in this category** State Risk Management Insurance factor is calculated on construction costs and consultant fees.


Liberal Arts Renovation, a SPEED project


Item #14 EXECUTIVE SUMMARY Page 5 of 5 Project Map:

McConnell Drive

Knoles Drive

Runke Dr.

University Drive

University Drive

Run

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S. S

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St.

Riordan Rd.

Knol

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Blome Dr. South

Mt.View Dr.

Rior

dan R

anch

Rd.

Dupont Dr.

Knol

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Beav

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Franklin Ave.

McMullen Circle

Tormey Ave.

Osb

orne

Dr.


Milton R

oad

Butler Ave.

SCALE

0 100' 300'200'

NEW CONSTRUCTION

ACADEMIC BUILDINGS

RESIDENCE HALLS

SUPPORT FACILITIES

Mt. View Hall


HRM

Bookstore

Wall AquaticCenter

DuplicatingServices

CentennialBuilding

WettawBuilding

NorthHall


Old MainAshurst

LABFacility


Annex

ChemistryBuilding

BiologyBuilding

PhyScience

LiberalArts

NorthUnion

BlomeBldg

GammageBuilding

FrierHall


RoseberryApt



ClineLibrary

AdelMathCounseling

and TestingCenter

Plateau Center


PetersonHall

University Union

GillenwaterHall


ArdreyAuditorium

TinsleyHall



FronskiHealthCenter

GatewayCenter

AllenHall

Wilson Hall


Systems

ARD

Anthropology Lab


ReillyHall

CampusHeights

GabaldonHall


Liberal Arts Renovation, a SPEED project



Contact Information: Christine M. Thompson, 602.229.2520, [email protected] Katie Paquet, 602.229.2543, [email protected]

Item Name: Report from the Public Outreach and Legislative Affairs Committee


Issue: The Board will receive a report from Regent McLendon will report on the December 9, 2010 Public Outreach and Legislative Affairs Committee (POLAC) meeting. The Board is asked to authorize POLAC to take positions on state and federal legislation on behalf of the Board and to provide direction on related issues to the system’s government affairs professionals.

Discussion

• The Board will receive an update on the matters discussed at the December 9, 2010 Public Outreach and Legislative Affairs Committee meeting.

• During the meeting, the Committee will receive a report on public awareness activities, discuss the upcoming 2011 Legislative Session due to being January 10, and potentially review and provide guidance on any pre-filed legislation impacting the university system.

• The Committee charter allows the Board to delegate authority to take positions

on legislative issues. The Board will be asked to authorize the Committee to take positions on state and federal legislation on behalf of the Board and to provide direction on related issues to the system’s government affairs professionals.

Recommendation to the Board It is recommended that the Board authorize POLAC to take positions on state and federal legislation on behalf of the Board and provide direction on related issues to the system’s government affairs professionals.



Contact Information: Rick Shangraw (ASU) 480-965-4087 [email protected] Laura Huenneke (NAU) 928-523-4340 [email protected] Leslie Tolbert (UA) 520-621-3513 [email protected] Fred Hurst (NAU) 928-523-6598 [email protected] Kathy Bedard (ABOR) 602-229-2546 [email protected]

Item Name: FY 2012-2016 TECHNOLOGY AND RESEARCH INITIATIVE FUND (TRIF) BUDGET GUIDELINES


Background and Discussion

At its September 2010 meeting, the Board charged its Research Task Force with development of guidelines to be used by the universities in preparing their FY 2012-2016 TRIF budgets, the third five-year budget cycle for TRIF funding.

Based on the work of the task force and the recommendations of the Presidents’ Council, the task force developed the guidelines presented on pages 4-24.

Key elements of these guidelines are:

The universities’ investments of TRIF funds in FY 2012-2016 will be limited to and focused in four research areas and one workforce development area: Research investment areas:

Improving Health—ASU, NAU, UA Water, Environmental, and Energy Solutions—ASU, NAU, UA National Security Systems—ASU Space Exploration and Optical Solutions—UA

Workforce development investment area: Higher Education Access for Workforce Development—NAU, UA

The task force worked over the course of five meetings to develop these investment areas. The task force invited to its October 14, 2010, meeting Dr. William Harris, President and CEO, Science Foundation Arizona; Jack Jewett, Regent Emeritus and President and CEO, Flinn Foundation; and Dr. Dawn Schroeder, Executive Director, Arizona Biomedical Research Commission, to receive their input to these guidelines. The attached guidelines incorporate their suggestions and recommendations.

Issue: The Board is asked to approve guidelines to be used by the universities in the development of their FY 2012-2016 TRIF budgets, as recommended by the Research Task Force.



Allocation of TRIF funding to pay debt service on the Arizona State University Certificates of Participation (COPs) at ASU Polytechnic and ASU West will continue in the manner it has been provided during the first 10 years of TRIF funding, i.e., annual debt service in the approximate amount of $3.7 million will be allocated in addition to ASU’s recommended 40% share of funds, consistent with the intent of the Arizona Legislature at the time it referred Proposition 301/Education 2000 to the November 2000 General Election ballot and as specified in ABOR Policy 3-412(E)(5) (see pages 22-23).

Allocation of TRIF funding to support Arizona Universities Network (AZUN) under an existing Memorandum of Understanding (MOU) between ABOR and NAU set to expire on June 30, 2013, will be reduced to $1.1 million from $1.6 million beginning July 1, 2011, pending final Board approval in April 2011. This amount will be allocated to NAU to pay debt service on the AZUN facility on the NAU Flagstaff campus and to pay continuing costs for AZUN-funded degree programs offered by NAU. A recommended AZUN budget is presented on page 24. The Arizona Higher Education Enterprise Report contemplates modification to Arizona’s approach to online and distance learning. Each university will review and propose enhancements to its programs. The Board’s Academic Affairs Committee will review the issues surrounding a reduced TRIF investment level in AZUN and present a recommendation to the Board concerning the restructuring of AZUN going forward.

The $1.5 million annual TRIF Regents Innovation Fund, established 10 years ago to address opportunities and exigencies in the university system that arise during the fiscal year, will be reduced beginning July 1, 2011, to $1.0 million and for FY 2013-2016 to $0.5 million, pending Board approval, and will support:

a. Multi-year commitments extending beyond June 30, 2011. b. The TRIF Operating budget at the system office. These funds support

staff and operating expenses for TRIF budget development, management, and reporting functions.

c. An amount of $200,000 (FY 2012) and $250,000 (FY 2013-2016) to address opportunities or exigencies, including support for the work of the ABOR Research Task Force in carrying out its charge to grow the research programs of the universities and to communicate the significance of university research to economic growth and job creation in Arizona.

After providing for the above, the remainder of annual TRIF revenues will be allocated as follows:

40% to Arizona State University 40% to The University of Arizona 20% to Northern Arizona University



These percentages are consistent with the distribution during the first 10 years of TRIF funding. This recommendation was made after discussion and consideration of alternative allocation methodologies, including competitive awards, size of research program, and outcomes/performance.

Upon Board approval of the guidelines, the universities will develop detailed TRIF budgets, business plans, and summary program brochures, along with any additional reporting formats that may be recommended by the Research Task Force, for the FY 2012-2016 budget cycle. These documents will be reviewed by the universities’ TRIF program advisory boards and by the Research Task Force before being presented for Board approval at the April 7-8, 2011, meeting.


A.R.S. §15-1648 (page 21) establishes the Technology and Research Initiative Fund (TRIF) to receive Proposition 301 state sales tax revenue and gives the Arizona Board of Regents the authority to administer the fund.

ABOR Policy 3-412 Administration of Technology and Research Initiative Fund (page 22-23) governs use of TRIF funds.

A.R.S. §15-1648(D) (page 21) requires the Board to submit to the Governor and the legislature by September 1 of each year a report to include “a description of the amount and duration of each new award distributed and a description of the purpose and goals for each award. For existing awards, the Arizona Board of Regents shall use a detailed set of performance measures to determine the overall effectiveness of each award.”

Strategic Implications

TRIF funds will help the universities attain the Research Excellence and the Community Engagement/Workforce Impact goals of the system’s 2020 Vision long-term strategic plan.

Recommendation to the Board

It is recommended that the Board approve the guidelines as developed and recommended by the Research Task Force to be used by the universities in the development of their FY 2012-2016 TRIF budgets, as presented in this Executive Summary.



GUIDELINES FOR DEVELOPMENT OF FY 2012-2016 TRIF BUDGETS 1. TRIF Revenue Estimates

1.1 The Research Task Force developed revenue estimates for FY 2012-2016 (page 10) based on the following information and factors:

1.1.1 10-year TRIF revenue history 1.1.2 JLBC Finance Advisory Committee’s four-sector consensus revenue

projections for FY 2012 1.1.3 Projections by well-known Arizona economists 1.1.4 ABOR staff analysis

1.2 Revenue estimates will be revised at least annually by ABOR staff, in

consultation with the universities, based on actual prior-year revenue and mid-year revenue forecasts.

2. Allocation of TRIF Revenue 2.1 Upon Board approval, FY 2012-2016 TRIF revenues will be allocated as follows:

2.1.1 Approximately $3.7 million annually to ASU to pay debt service on ASU Polytechnic and West Certificates of Participation (COPs), as required by statute and consistent with the intent of the Arizona Legislature at the time it referred Proposition 301/Education 2000 to the November 2000 General Election ballot, and as specified in ABOR Policy 3-412(E)(5) (see pages 22-23). This annual allocation will be in addition to ASU’s recommended 40% share of funds.

2.1.2 The annual investment of TRIF funding to support Arizona Universities

Network (AZUN) under an existing Memorandum of Understanding (MOU) between ABOR and NAU set to expire on June 30, 2013, will be reduced to $1.1 million from $1.6 million beginning July 1, 2011. This amount will be allocated to NAU to pay debt service on the AZUN facility on the NAU Flagstaff campus and to pay continuing costs for AZUN-funded degree programs offered by NAU. A recommended AZUN budget is presented on page 24. The Arizona Higher Education Enterprise Report contemplates modification to Arizona’s approach to online and distance learning. Each university will review and propose enhancements to its programs. The Board’s Academic Affairs Committee will review the issues surrounding a reduced TRIF investment level in AZUN and present a recommendation to the Board concerning the restructuring of AZUN going forward.



2.1.3 $1.0 million in FY 2012 and $500,000 in FY 2013-2016 for the Regents Innovation Fund sufficient to support:

2.1.3.1. Board-approved multi-year commitments extending beyond

June 30, 2011. 2.1.3.2. The TRIF Operating budget at the system office. These

funds support staff and operating expenses for TRIF budget development, management, and reporting functions.

2.1.3.3. An amount of $200,000 (FY 2012) and $250,000 (FY 2013-2016) to address opportunities or exigencies, including support for the work of the ABOR Research Task Force in carrying out its charge to grow the research programs of the universities and to communicate the significance of university research to economic growth and job creation in Arizona.

2.1.4 The remainder of annual TRIF revenue will be allocated to the three

universities as follows: 40% to Arizona State University 40% to The University of Arizona 20% to Northern Arizona University

3. FY 2012-2016 TRIF Investments

3.1 FY 2012-2016 TRIF investments will focus on seeding new opportunities that have the potential to drive significant economic activity and job creation in Arizona, as well as to capitalize on existing areas of strength to further exploit economic benefits.

3.2 The focus areas, or themes, and the universities who will invest in these areas in

FY 2012-2016, are:

TRIF Investment Focus Area (Theme) University

Improving Health ASU, NAU, UA

Water, Environmental, and Energy Solutions ASU, NAU, UA

National Security Systems ASU

Space Exploration and Optical Solutions UA

Higher Education Access for Workforce Development NAU, UA

3.3 All capital and infrastructure investments will be included in the related focus

area budgets. 3.4 TRIF investment profiles for each university are presented on pages 12-20.



4. TRIF Investment Leverage, Outputs, and Outcomes; Metrics

4.1 The Arizona Higher Education Enterprise and each of its universities—Arizona State University, Northern Arizona University, and The University of Arizona—will leverage TRIF investments to advance Arizona’s economy and its competitiveness in the broader global economy. The intent is that these investments will be highly complementary across the universities and in focus areas that offer significant opportunities for long-term benefits. Every TRIF investment seeds a broader set of activities, which multiplies the benefits of these initial investments to the state. In general, each investment follows the investment pipeline presented on page 11.

4.2 Each TRIF investment is unique in that it takes a different path to leverage the

funding and often has a distinctive set of outcomes. These outcomes often are measured in terms of specific quantifiable outputs, as well as more qualitative impacts. Specific and measurable performance measures will be defined for each focus area. These output measures are:

Return on Investment (ROI)

Federal and non-federal awards

Royalty income

Foundation funding

Technology Transfer

New invention disclosures

New patent applications filed

New patents issued

Start-up companies licensing university technology

Licenses or options signed

Industry Outreach

Number of industry collaborations

Number of Small Business Innovative Research (SBIR) Program/Small Business Technology Transfer (STTR) Program awards

Workforce Contributions

Post-doctoral appointments

Postdoctoral researchers leaving to enter the workforce

Graduate students employed

Graduate students earning degrees and entering the workforce

Undergraduate students involved



Partnerships/Collaborations

Number of research grants/contracts involving funding from non-government entities

Number of research grants/contracts involving subcontracts to non-university researchers

4.3. Performance metrics will be detailed in the TRIF business plans, and tracked

and reported for the 5-year cycle in the annual program brochures and/or adopted reporting format.

4.4 The Research Task Force and program advisory boards will review the annual

performance metrics and recommend any needed program modifications. 5. TRIF Business Plans, Program Brochures, and Reporting

5.1 The universities will prepare TRIF business plans for each investment focus area, following the TRIF Business Plan Model approved by the Board in March 2007 (pages 8-9).

5.2 The universities will prepare TRIF program brochures, and/or reports in a format

to be determined by the Research Task Force as part of its work to enhance communications and messaging about all university research.

5.3 The universities will submit to the ABOR system office in January of each year a

mid-year report of revenue and expenditures for each focus area.

5.4 The universities will submit to the ABOR system office in July of each year, consistent with August Board book deadlines, an updated program brochure, or alternative report, reporting annual revenue, expenditures, and performance metrics for each focus area. These reports will be in a format to meet the statutory requirements for TRIF reporting specified in A.R.S. §15-1648 (D).

5.5 The universities will submit final reports in August of each year, on agreed-upon

deadlines to meet the statutorily set September 1 filing date for the TRIF Annual Report to the Governor and legislature.



ARIZONA UNIVERSITY SYSTEM TECHNOLOGY AND RESEARCH INITIATIVE FUND (TRIF)

BUSINESS PLAN MODEL (Revisions proposed by ASU, NAU, UA)

Final Version Approved by ABOR March 8, 2007

Introductory Elements Cover page Executive summary Table of contents (all pages are to be numbered)

1. Investment Description

1.1 Description of problem to be addressed by the investment 1.2 Discussion of mission, goals, values, or vision of the investment 1.3 Description of how the investment will benefit Arizona taxpayers

2. Operational Strategies

2.1 Development and Production 2.1.1 Development status 2.1.2 Production process 2.1.3 Cost of development 2.1.4 Labor requirements (e.g., including student recruitment tactics, or tactics

for choosing nascent, entrepreneurial firms to aid that are outside the university)

2.2 Marketing and Promotion

2.2.1 Strategy (e.g., how customers or students will be attracted, or how this product or service will differentiate itself from a similar product or service already available) (include choices and competition) 2.2.2 Method of promotion 2.2.3 Advertising and promotion plans

2.3 Program Management

2.3.1 Description of the organizational setup to support the initiative 2.3.2 Description of advisory board or other oversight



2.4 Sustainability

2.4.1 Anticipated funding sources for ongoing support 2.4.2 Timeline for transitioning away from TRIF support

3. Performance Metrics

3.1 Output metrics

3.1.1 Return on investment (ROI) 3.1.2 Technology transfer 3.1.3 Industry outreach 3.1.4 Workforce contributions 3.1.5 Partnerships/collaborations

3.2 Outcomes

3.2.1 Description of anticipated broad impacts to Arizona’s economy, job creation, and taxpayers

3.3 Timeline for achievement of goals 3.4 Early proof of performance

4. Financial Investment

4.1 Investment detail

4.1.1 Revenue budget 4.1.2 Expenditure budget

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 TOTAL

Revenue estimate $53,000,000 $53,000,000 $53,000,000 $54,590,000 $56,227,700 $269,817,700

Allocation:

Regents Innovation Fund $1,000,000 $500,000 $500,000 $500,000 $500,000 $3,000,000

NAU AZUN debt service/program costs 1,127,207 1,127,207 1,127,207 1,127,207 1,127,207 5,636,035

ASU W/P COPs 3,719,000 3,719,300 3,709,400 3,704,000 3,707,500 18,559,200

Subtotal $5,846,207 $5,346,507 $5,336,607 $5,331,207 $5,334,707 $27,195,235

Balance to Universities $47,153,793 $47,653,493 $47,663,393 $49,258,793 $50,892,993 $242,622,465

ASU (40%) 18,861,517 19,061,397 19,065,357 19,703,517 20,357,197 $97,048,986

NAU (20%) 9,430,759 9,530,699 9,532,679 9,851,759 10,178,599 48,524,493

UA (40%) 18,861,517 19,061,397 19,065,357 19,703,517 20,357,197 $97,048,986

Subtotal $47,153,793 $47,653,493 $47,663,393 $49,258,793 $50,892,993 $242,622,465

TOTAL $53,000,000 $53,000,000 $53,000,000 $54,590,000 $56,227,700 $269,817,700

PROPOSED ALLOCATION OF FY 2012-2016 TRIF REVENUE

(flat FY 2012-2014; 3% annual growth FY 2015-2016)


Item #16Page 10 of 24

TRIF RESEARCH INVESTMENT PIPELINE

RESEARCH

inputs outputsoutcomes• Improving human life• Advancing economic, environmental, &

social sustainability • Increasing economic growth• Providing jobs• New or improved products,

services, processes• Providing an educated workforce• Enhancing national security &

protection

• Publications• Invention disclosures• Patent applications• Patents issued• Signed licensing options• Spin-off companies• Signed licenses• Licensing revenue• Post-doctoral appointments• Post-doctoral researchers

entering workforce• Undergraduate students

engaged in research• Graduate students employed

by university• Graduate students earning degrees

and entering workforce• Know-how• University infrastructure &

operations• Faculty & staff salaries

• Highly opportunistic focus areas:

- Improving Health- Water, Environmental &

Energy Solutions- National Security

Systems- Space Exploration &

Optical Solutions• Students• Staff

- Faculty- Professionals- Support

• Facilities• Equipment

• Opportunity identification• Proposal processes • Award management• Research compliance• Facility planning & maintenance

process

Advancing Research – Advancing Arizona

leverage

• Collaborations among UA, ASU, NAU• Alignment with state research

funding organizations• Industry partnerships• New research awards from federal,

foundation & industry sponsors

11-30-10



Improving HealthName of Investment: Biodesign/Biosignatures Investment Timeframe: FY 2012-FY 2016Amount of Investment: $51 million

Investment Leverage:

Short Description of Investment: The Biodesign Institute at Arizona State University spurs scientific breakthroughs that improve health, protect lives and sustain our planet. One of the activities will be the Biosignatures Consortium Initiative (BCI). BCI will serve as an independent, national resource to support the development of biomarkers and molecular diagnostics for disease risk prediction, diagnosis and prognosis, that will meet the rigorous test requirements of the FDA, NIH, DoD and other government agencies.

Outputs:

•Collaborate with other research institutions to broaden the reach of the investment across Arizona (e.g., University of Arizona, TGen, Mayo Clinic, IGC, C-Path)

•Promote economic development through •Industry partnerships (e.g., Pfizer, Abcam Limited, Merck Research Laboratories, Agilent Technologies)

•Technology transfer through the Impact Accelerator (10 companies launched by 2016)

•Secure additional funding from federal agencies to multiply the outcomes to Arizona, with key focus on

•NIH : $200M•DoD: $30M•DoE: $10M

•Focus resources in a specific research area to improve thecompetitiveness of Arizona's universities

•Biosignatures and personalized medicine•Healthcare transformation

•Partner with other research funding organizations in the State to expand and improve the outcomes

•Flinn Foundation•Arizona Biomedical Research Commission•Piper Trust

•Establish a strategic hiring meta-plan•National and world-class leaders to drive key research components

•Cluster hires

Return on Investment•Federal and non-federal awards: $380M•Royalty income: $1MTechnology Transfer•New invention disclosures : 50•New patent applications filed : 25•Start up companies licensing ASU technology: 20Industry Outreach•Number of industry collaborations: 20•Number of Small Business Innovative Research (SBIR) Program/Small Business Technology Transfer (STTR) Program awards: 10Workforce Contributions•Post-doctoral appointments: 370•Postdoctoral researchers leaving to enter the workforce: 80Partnerships/Collaborations•Number of research grants/contracts involving funding from non-government entities: 210

•Number of research grants contracts involving subcontracts to non-university researchers: 70

Outcomes:•Arizona positioned as national leader in personalized medicine, with the potential of vastly improving the quality of human life

•More effective disease prevention and detection•Reduced cost of healthcare for Arizonans•Economic development and job creation



Water, Environmental & Energy SolutionsName of Investment: Global Institute of Sustainability/LightWorksInvestment Timeframe: FY 2012-FY 2016Amount of Investment: $24 million


Short Description of Investment: The Global Institute of Sustainability is the hub of Arizona State University’s sustainability initiatives, advancing research, education, and business practices for an urbanizing world.One of the key activities is LightWorks, which converges all light-inspired and renewable energy research at ASU to create innovative solutions that address challenges ranging from the environment and energy sources to rapid urbanization and water supply.

Outputs:Return on Investment•Federal and non-federal awards: $140M•Royalty income: $8MTechnology Transfer•New invention disclosures: 30•New patent applications filed : 15•Start up companies licensing ASU technology: 10Industry Outreach•Number of industry collaborations: 20•Number of SBIR/STTR awards: 10Workforce Contributions•Post-doctoral appointments: 140•Postdoctoral researchers leaving to enter the workforce: 60Partnerships/Collaborations•Number of research grants/contracts involving funding from non-government entities: 130


Outcomes:•Arizona positioned as solar-based energy capitol of the nation, spawning high-growth industries and ventures

•Protection against rising fuel costs; pocketbook savings for Arizonans

•Energy independence•Reduced pollution and increased quality of life•Economic development and job creation

•Collaborate with other research institutions to broaden reach of investment across Arizona (e.g., University of Arizona, NAU)

•Promote economic development through •Industry partnerships (e.g., APS, SRP, Fluidic Energy, First Solar, Sun Tech )

•Technology transfer (i.e., Venture Catalyst)•Secure additional funding from federal agencies to multiply the outcomes to Arizona, with key focus on

•DOE:$75M•NSF: $40M•EPA: $5M

•Focus resources in a specific research area to improve the competitiveness of Arizona's universities

•Low cost solar panel technologies•High-efficiency solar panel technologies•High-efficiency lighting and flexible display technology•Renewable biofuel and biohydrogen production•Sustainable manufacturing of products

•Partner with other research funding organizations in the State to expand and improve the outcomes

•Science Foundation Arizona•Establish a strategic hiring meta-plan

•National and world-class leaders to drive key research components

•Cluster hires



National Security SystemsName of Investment: Security and Defense Systems InitiativeInvestment Timeframe: FY 2012-FY 2016Amount of Investment: $22 million


Short Description of Investment: The Security and Defense Systems Initiative at ASU will combine a strong emphasis on technology solutions with legal/policy and root socio-economic analysis to identify and address growing unmet security needs at the state, national and global levels. The Flexible Display Center supports this initiative through comprehensive flexible electronics capabilities that bridge the high risk, resource intensive gap between innovation and product development in an information-secure environment.

Outputs:

•Collaborate with other Arizona research institutions to broaden the reach of the investment across Arizona

•Promote economic development through •Industry partnerships (e.g., Honeywell, Boeing, Raytheon, General Dynamics, L3, Lockheed Martin)

•Technology transfer (i.e., Venture Catalyst)•Secure additional funding from federal agencies to multiply the outcomes to Arizona, with key focus on

•DoD: $130M•DHS: $20M

•Focus resources in a specific research area to improve the competitiveness of Arizona's universities

•Flexible electronics and displays•Cyber warfare and cybercrime•Border security and immigration•Narcotics/ weapons trafficking•Cargo inspection and food inspection

•Partner with other research funding organizations in the State to expand and improve the outcomes (e.g., Science Foundation Arizona)

•Establish a strategic hiring meta-plan•Recruit national and world-class leaders to drive research growth in key thrust areas

•Cluster hires

Return on Investment•Federal and non-federal awards: $160M•Royalty income: $0.5MTechnology Transfer•New invention disclosures : 20•New patent applications filed : 10•Start up companies licensing ASU technology: 5Industry Outreach•Number of industry collaborations: 15•Number of SBIR/STTR awards: 10Workforce Contributions•Post-doctoral appointments: 80•Postdoctoral researchers leaving to enter the workforce: 50Partnerships/Collaborations•Number of research grants/contracts involving funding from non-government entities: 40


Outcomes: •Safer borders•Supports military and strengthens national defense•Supports first responders and saves lives•Enhanced security for Arizonans•Economic development and job creation



Improving HealthName of Investment: Health Innovation Project

Investment Timeframe: FY 2012 – FY 2016

Amount of Investment: $9.7 million


Short Description of Investment:

Improving health through biotechnology research

leading to technology transfer opportunities.

Outputs:

•Invest in key human resources, facilities, and

infrastructure to promote achievement in health-related

bio-technology projects.

•Encourage collaboration with UA and ASU as a

mechanism for broadening the reach of the investment

across Arizona and enhancing outcomes (e.g., through

Clinical Translational Science Institute)

•Partner with other research performing organizations

in Arizona (e.g., TGen) to leverage existing

collaborations in biotechnology research

•Partner with BioAccel to obtain technical assistance

and supplemental funding for late-stage research

projects and early stage start-up companies to

expedite outcomes

•Partner with local incubator to stimulate technology

transfer in Northern Arizona and to incubate NAU

biotechnology start-ups

•Secure additional funding from federal and state

agencies (especially NIH, ABRC) to multiply the

outcomes to Arizona

ROI

•Quadruple NIH awards/dollars for research and

for training ($2.5 M to $10 M)

•Establish stream of license revenues & royalties

•Double industry sponsored awards/dollars

Technology Transfer

•Increase number of university personnel

contributing invention disclosures

•Increase patents awarded (to 10 per year)

Industry Outreach

•Double number of industry collaborations

•University-related startups obtain SBIR/STTR


•Post-doctoral appointments

•Increase BS, MS graduates in science and

engineering by 30 %

Outcomes:•Northern Arizona increases concentration in

medical devices and diagnostics firms, jobs

•NAU and TGen innovations moved through

translational process to benefit Arizona population



Water, Environmental & Energy SolutionsName of Investment: Arizona’s Working Landscapes

Investment Timeframe: FY 2012 – FY 2016



Short Description of Investment: Translating NAU

research capacity and training programs into (a)

external funding for projects advancing sustainable

economic development in Arizona, and (b) production

of graduates prepared for “new economy” careers.

Outputs:

•Use existing and new strengths in environment and

sustainability to generate increased federal and other

funding, contributing toward the 2020 goal of doubled

research expenditures

•Encourage collaboration with UA, ASU, and other

governmental and non-profit entities to achieve

regional or statewide outcomes in sustainable

economic development

•Partner with incubator(s) to stimulate technology

transfer in rural Arizona and to incubate NAU

sustainable-technologies start-ups

•Integrate with university’s Academic Strategic Plan to

create and expand degree programs and student

opportunities in sustainability-related fields and skill

development

•Provide infrastructure investments in key areas (wind

energy, geospatial analysis) with high potential to

generate substantial increases in external funding

ROI

•Increase amount, ranking of university’s

awards/dollars for research and training in

environmental fields (move into top 100)

•Increase revenues from licenses and royalties

Technology Transfer

•Increase numbers of university inventors,

invention disclosures, patents, startups

Industry Outreach

•Double number of industry collaborations

•University-related SBIR/STTR awards


•Post-doctoral appointments, graduate and

undergraduate students mentored in research

•Number of graduates from new and existing

sustainability-related programs

•Number of working professionals in Arizona

provided continuing/professional education

Outcomes:•Increases in business enterprises and jobs in

Arizona related to energy, resource use efficiency

and management, working landscapes



Higher Education Access for Workforce

DevelopmentInvestment Timeframe: FY 2012-2016



Short Description of Investment: NAU’s Access and

Workforce Development initiative addresses the needs of

Arizona employers and their current and future employees

as defined by the Arizona Board of Regents and Arizona

public policymakers.

Outcomes:

• Provide higher education degree and certificate

programs and services to Arizona citizens who are

time or place-bound and otherwise would not have

access.

• Collaborate with community college partners,

businesses and public agencies to identify emerging

workforce needs and provide appropriate degree

programs to train employees.

• Expand efforts in health professions with the start-up

of the Physician Assistant program in 2011. This

collaborative program on the Phoenix biomedical

campus will leverage TRIF funds to increase the

productivity of both University of Arizona and Northern

Arizona University faculty and facilities since Physician

Assistant and medical students require many similar

courses such as anatomy and physiology.

• Augment Northern Arizona University institutional

funds with TRIF investments to reach more students

and increase baccalaureate and graduate degree

attainment. A better educated workforce provides

economic growth through new business and job

creation.

•Increase access for underserved populations

including Native American, Hispanic, nontraditional

adult and rural students.

Workforce Growth – 60% by 2016 (9% per year)

• Improve K-12 education through new teacher

preparation and alternative certification

• Increase advance-trained nurses, dental hygienists

and other health professionals

• Educate information-technology professionals

• Prepare business and non-profit managers to be

leaders in existing and new businesses

• Continue the development of the support and

physical infrastructure for degrees and certificates

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PROJECTED

Northern Arizona University

Access/Workforce DevelopmentNumber of Students Served, 2002-2016



Improving HealthThe investment will provide infrastructure for enhanced competitiveness in collaborative, interdisciplinary research to address

critical needs in medicine and food-production. It will place special emphasis on translational and clinical research and provide

incentives for applied research and tech transfer.

Investment Timeframe: FY 2012-FY 2016 Amount of Investment: $46 million


• Keep BIO5 Institute at the forefront of bioscience and

biotechnology research and hands-on education

• Establish NIH-funded Clinical and Translational Science

Award (CTSA) program

• Support and expand drug and medical device development

programs and stimulate application of research results

• Increase collaborations and partnerships with private sector

including local biotech and pharmaceutical companies (e.g.,

Ventana Medical and sanofi-aventis – Oro Valley)

• Increase the number of clinical trials, many of which will be

funded by pharmaceutical companies

• Stimulate collaborations with ASU and NAU in areas where

teamwork will yield novel research and/or enhanced funding

• Enable UA researchers to become more competitive for

NIH funding as well as in-state funding from organizations

including Science Foundation Arizona, Arizona Biomedical

Research Commission

Outputs:Financial ROI

• 10:1

• $460M federal research awards

• $3M industrial awards for research

• $20M local and other awards for research

• Ripple effect on spending in the community

Technology Transfer• 75 new invention disclosures

• 50 new licenses & options

Partnerships with Industry• Enhance industry collaborations

Workforce Contributions• 500 K-12 teachers/educators trained per year

• 360 undergraduate trainees per year

• 340 graduate trainees per year

• 140 postdoctoral trainees per year

Outcomes:• Improved health of citizens of Arizona and beyond

• Lowered costs of healthcare as personalized medicine

enhances therapeutic success

• Improved yields of cereal grain crops in arid lands

• Development of a high-tech economic environment



Water, Environmental & Energy SolutionsThe investment will support research and public policy studies related to local and global environmental challenges, including:

impacts and management of climate variability, engineering for a sustainable environment, water use and quality, solar energy,

algal biofuels, energy storage & distribution, and demo projects. It also will provide incentives for applied research & tech transfer.



• Enhance efficient utilization of Arizona’s limited natural

resources in homes, agriculture, and industry in support of

local populations and industries

• Develop understanding of climate variability and best

practices for dealing with this variability

• Collaborate with other AZ universities to maximize impact

of individual research strengths

• Partner with industry to facilitate AZ economic growth in

areas of solar energy, storage, integration, and distribution

• Develop policies to stimulate economic development

associated with the adoption of renewable energy

• Help to ensure adequate supplies of clean water for

Arizonans

• Leverage funding from agencies, both federal and local, for

science, technology, and policy studies

Outputs:

Financial ROI• 7:1 ROI

• $130M federal and non-federal awards

Technology Transfer• increase invention disclosures and patent applications

• produce educational material for the public; maintain

relevant information on Institute of the Environment

website

Workforce Contributions• 1,500 K-12 teachers/educators trained per year

• 450 students per year educated in new graduate

Water, Society and Policy program and interdisciplinary

environmental studies/earth sciences programs

Outcomes:• Sustainable development and use of Arizona’s lands

• Adequate supplies of clean water for Arizona’s growth

• Development of Arizona as a model for sustainable

growth

• Creation of a vibrant solar energy industry in Arizona




Space Exploration and Optical SolutionsThe investment will provide infrastructure and seed funding for maintenance of our leading-edge activities in: land and space-based

exploration of the universe and optical sciences and technology. It also will embed incentives for tech commercialization and

continued creation of new companies.



• Maintain national leadership in Space Sciences and Optical

Sciences

• Obtain major federal funding for large optics projects and

telescope instruments

• Support initiatives in photonics and imaging/sensor

components and increase their successful commercialization

through invention disclosures, license agreements, patent

applications, and creation of new companies that stay in

Arizona

• Strengthen collaborations with private industry, both local

and international

• Maintain partnership share in some of the largest

telescopes in the world

Outputs:

Financial ROI• 12:1 ROI

• $250M in federal and non-federal awards

Technology Transfer• 180 invention disclosures

• 250 new patent applications filed

• 10 new startup companies

Workforce Contributions• 150 undergraduate trainees per year

• 250 graduate trainees per year

Partnerships/Collaborations with industry• Increase number of master agreements and research-

oriented and educational collaborations with industrial

partners

Outcomes:• Better quality of life through IT and imaging advances

• Creation of more successful optics companies in

Southern Arizona

• Enhancement of Tucson’s reputation as one of the

nation’s premier centers for space sciences


that sustains a strong aerospace industry



ARIZONA REVISED STATUTES 15-1648. Technology and research initiative fund; purpose A. The technology and research initiative fund is established consisting of revenues

transferred to the fund pursuant to section 42-5029, subsection E, paragraph 2. The Arizona board of regents shall administer the fund. The monies in the fund are continuously appropriated to the Arizona board of regents for distribution pursuant to this section and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. The board shall adopt rules to administer the technology and research initiative fund in accordance with this section. The board may allocate up to twenty per cent of the monies in the fund to be used for capital projects relating to new economy initiatives, including debt service, for the universities under its jurisdiction, pursuant to chapter 13, article 5 of this title.

C. The Arizona board of regents shall receive requests from the individual universities and shall determine the amount and duration of each award. The criteria for the evaluation of each request shall be as follows:

1. The award must be related to one of the following: (a) A specific academic or research field. (b) Designed to expand access to baccalaureate or post-baccalaureate education for

time-bound and place-bound students. (c) To implement recommendations of the Arizona partnership for the new economy or

the governor's task force on higher education. 2. The award may be used to develop new and existing programs that will prepare

students to contribute in high technology industries located in this state. 3. The award may be used in conjunction with matching financial assistance from private

industry. 4. The Arizona board of regents shall give preference to requests that are developed in

conjunction with private industry, private entities or federal agencies. D. The Arizona board of regents shall submit a report to the governor, the president of the

senate and the speaker of the house of representatives on September 1 of each year on the technology and research award program and shall transmit a copy to the secretary of state and the director of the Arizona state library, archives and public records. The report shall include a description of the amount and duration of each new award distributed and a description of the purpose and goals for each award. For existing awards, the Arizona board of regents shall use a detailed set of performance measures to determine the overall effectiveness of each award.



Policy Number: 3-412 Policy Name: Administration of Technology and Research Initiative Fund

Policy Revision Dates: 3/01 Page 1

3-412 Administration of Technology and Research Initiative Fund

A. Authority

As authorized by Proposition 301 approved by the voters in November 2000, the Board shall establish and administer a technology and research initiative fund (TRIF), beginning July 1, 2001. The TRIF will consist of sales tax revenues generated through Proposition 301 and other private or public sources of funding which are received by the Board for purposes which are consistent with the proposed uses described herein.

B. Funding Criteria

The TRIF will be used to support projects and initiatives that meet one or more of the following criteria:

1. Promote university research, development and technology transfer related to the knowledge based global economy;

2. Expand access to baccalaureate or post-baccalaureate education for time-bound and place-bound students;

3. Implement final recommendations from the Governor's Task Force on Higher Education and/or the Arizona Partnership for the New Economy.

4. Develop programs that will prepare students to contribute in high technology industries located in Arizona.

C. Calendar and Guidelines

The Board shall establish an annual calendar for the allocation of Proposition 301 funding, including guidelines for the submission and evaluation of proposals, and final decisions by the Board. The calendar will incorporate a process to receive and consider input from the Arizona Partnership for the New Economy (APNE) or a successor agency as may be designated by the Governor.

D. Formats for Submission of Proposals

1. Funding requests shall be submitted by the university Presidents, or prepared by the Central Office on behalf of the Board, in a format to be approved by the Executive Director, to include the following elements: A description of the proposed need, purpose and goals for each proposed project or activity, an explanation as to the ways in which the project promotes the purposes of the legislation, and/or an explanation of the relationship of the proposed project or activity



to the foundation or clusters which are part of the state's overall economic development program;

2. The requested duration of the proposed project or activity;

3. Proposed detailed performance measures, desired outcomes, and proposed methodology for evaluating progress in attaining the desired outcomes; and

4. A detailed budget for each proposed project or activity, including the identification of funds which are intended to be either continuing, multi-year, or one time only.

E. Special Factors

The Board shall take into account several additional factors in determining its allocations from this fund:

1. Priority shall be given to proposals that involve collaboration between and among the universities and/or collaboration with private industry or public sector agencies.

2. The Board may authorize awards for an annual or multi-year basis, but in no event will the Board make an award on a multi-year basis without incorporating specific requirements regarding periodic review and assessment or progress in implementing the proposed project or activity and in attaining the desired outcomes.

3. Funding may be used to pay salaries only for persons directly involved in projects or activities funded under this program that would otherwise not be funded through general fund appropriations.

4. The Board may allocate up to 20% of annual funding for capital projects relating to new economy initiatives, including the payment of debt service; capital projects must be clearly identified with each university's submission of proposals.

5. The Board will honor the legislative intent as described in Proposition 301 that a portion of the revenues in the fund shall be allocated on an annual basis to pay Certificates of Participation costs for lease-purchase of buildings and associated infrastructure at ASU East and West campuses.




PROPOSED REDUCTION IN TECHNOLOGY AND RESEARCH INITIATIVE FUND (TRIF) SUPPORT FOR

ARIZONA UNIVERSITIES NETWORK - NAU LEADERSHIP

FY 2011 FY 2012-16 FY 2010

REVENUE:

ABOR-

APPROVED

BUDGET

PROPOSED

ONGOING TRIF

$ TO NAU

ACTUAL

NUMBER OF

STUDENTS

SERVED

New TRIF Revenue $1,569,293 $1,127,207

TRIF Carryforward $518,461 $0

SUBTOTAL REVENUE $2,087,754 $1,127,207

BUDGETED EXPENDITURES:

OPERATIONAL

Campus Coordinators Salary/ERE 175,831

Maintain Course Catalog Only (with ongoing cooperation from ASU/UA) 99,526 20,000

Needs Assessment Trend Data 27,500

Student Services 49,526 51,458 815

Marketing 74,450

Teacher Education Bachelor(2+2) 314,046 345,172 356

Speech Language Pathology Assistant Certificate 66,476 66,476 132

Law Enforcement Bachelor (2+2

upside-down) 92,232 125,307 55

Fire Science Bachelor Completion

(2+2 upside-down) 51,396 18,794 272

Master of Administration and Bachelor

in Public Agency Service 28,502

ARRO/AZUN: Advancing Arizona through a Web-Based Initiative 60,000

STEM Program - Direct High School Instruction 40,000

Assistant Dean for AZUN (Articulation

Planning/Coordination) 108,340

Develop/Deliver Short Format Web

Courses 205,432

Develop/Deliver High-Capacity

Undergraduate Web Courses 184,897

FF&E for Offices - New Distance Learning/AZUN Facility (new sign) 4,000

All Other Operating 5,600

SUBTOTAL OPERATIONAL EXPENDITURES $1,587,754 $627,207

CAPITAL

Debt Service - Distance Learning/AZUN Facility 500,000 500,000

TOTAL BUDGETED EXPENDITURES $2,087,754 $1,127,207

FY 2012-16 ANNUAL TRIF FUNDING RELEASED FOR BOARD

ALLOCATION TO UNIVERSITIES UNDER 2:2:1 SPLIT $442,086





Contact Information: Robert N. Shelton (UA), President 520-621-5511 [email protected] William Crist (UA), Vice President 520-626-1197 [email protected] for Health Affairs

Item Name: UA Healthcare, Inc. Business Plan Update

Action Item Discussion Item Information Item No written materials will be provided for this item. Recommendation to the Board This is an information item only, requiring no action by the Board.

Issue: The Board will receive an update from President Shelton on the progress of UA Healthcare, Inc. to integrate the University Medical Center Corporation and University Physicians Healthcare, Inc.



Contact Information: Contact: President John Haeger (928) 523-3232 [email protected]

Item Name: Multiple-Year Employment Contract for Head Football Coach (NAU)


Background

• Coach Souers is currently serving under a One-Year Contract Extension that will expire on December 31, 2010.

• Coach Souers is in his twelfth year at NAU and has had winning seasons in eight of those twelve years.

• His 2009 team played two FBS schools, University of Arizona and University of Mississippi, and defeated future Big Sky opponent Southern Utah.

• During his tenure, Souers has coached 100 student-athletes to All-Conference honors a combined 164 times with 37 first-team selections and, as of the end of the 2009 season, he has coached 36 All-American selections.

• Since its inception, Coach Souers has increased the Academic Progress Rate (APR) of the football team significantly.

• In 2008-2009, Coach Souers had a team multi-year APR of 937 and a one-year APR of 947, the latter of which was above the national average for all Division I schools. Those single-year and multi-year scores were both the second highest in the Big Sky Conference.

• The team GPA for AY 2009-2010 was 2.76.

• Coach Souers’ current base salary is $105,000 per annum. Multiple-year

contracts are customary in Division I schools and this extension offer is a retention strategy with the expectation of continued good results.

Issue: Northern Arizona University requests approval for a three-year Multiple-Year Employment Contract for Jerome Souers as the Head Football Coach, for the period January 1, 2011 through December 31, 2013.



Statutory/Policy Requirements Pursuant to Arizona Board of Regents (ABOR) Policies 6-1001 through 6-1003, Board approval is required for multiple-year employment contracts. Discussion

• The base salary for Coach Souers will be $130,000 per year.

• Coach Souers will be subject to the same salary increases and furloughs, if any, as other University employees serving under the Conditions of Administrative Service, and whatever merit or market increase the President deems appropriate for the remainder of his contract.

• Coach Souers is responsible for supervising, planning, and coordinating the activities of the Football Program. More specifically, Coach Souers shall:

(a) encourage academic progress, in conjunction with the faculty and University,

of student-athletes toward graduation; (b) teach the mechanics and techniques of football to team members;

(c) coach student-athletes, analyze their performance, and instruct them in areas

of deficiency;

(d) develop the Football Team for competition, and oversee daily practice of student-athletes;

(e) promote the University, the Athletic Department and the Football Program

through the Sports Information Office, and through such other activities as assigned pursuant to Paragraph (o);

(f) recruit student-athletes of high moral character that are athletically talented

and demonstrate a high level of academic success and promise for continued success for the Football Program who are qualified for participation;

(g) cooperate with Student Affairs for the benefit of student-athletes;

(h) assist the Strength Coach in designing and maintaining a strength program; (i) maintain responsibility for administrative duties pertaining to the Football

Program;

(j) supervise the conduct of assistant coaches and staff, and their activities,



including but not limited to compliance with ABOR, University, Big Sky Conference (Conference) and National Collegiate Athletic Association (NCAA) policies and legislation, and provide annual evaluations thereof;

(k) maintain responsibility for the fiscal and budgetary functions associated with

the Football Program;

(l) conduct and coach the Football Program in compliance with the Constitution and By-Laws of the Conference and the NCAA;

(m) uphold, comply with and enforce the NAU Athletic Code of Conduct and the

mission of the Athletic Department, with emphasis on sportsmanship, and student-athletes’ and employees’ personal conduct at all times, and serve as a role model for all NAU student-athletes;

(n) comply with all applicable ABOR and University policies, rules and

regulations; and

(o) perform other duties as head coach reasonably related to the improvement of the Football Program, as may be assigned by the President of the University (President) or Director of Intercollegiate Athletics (Director).

• Provided he is still a University employee at that time, the University will grant

Coach Souers a license to operate Football Camps using University facilities beginning with the Football Camp season in 2011 and concluding in July 2013. If for any reason the contract between the University and Coach Souers has been suspended or been terminated the camp provision will be null and void. The specific facilities and related services to be used, the fees to be paid by Coach Souers to the University for such use, if any, and any additional relevant items, shall be identified in a separate Licensing Agreement to be executed by the parties.

Outstanding Academic Achievement

Academic success is a major component of Coach Souers’ position and attaining a high team GPA is a basic function of the position. In addition, the NCAA has instituted an APR requirement with penalties for not achieving a minimum threshold. It is expected that a minimum four-year rolling average APR of 925 will be exceeded and if the APR or the team GPA exceeds certain levels, then the highest achievement set forth below will be rewarded as a bonus, and not added to base compensation.

Compensation rate Yearly APR rate Yearly GPA $5,000 950 2.8 $6,000 960 2.9



$7,500 970 3.0 $8,500 980 3.1 $10,000 990 3.2

Outstanding Athletic Achievement

There is an expectation of having a winning record and if the record exceeds certain levels, then the highest achievement set forth below will be rewarded as a bonus, and not added to base compensation.

Compensation Rate Number of Division I Wins

$6,000 7 $8,000 8 $9,000 9 $11,000 10

In addition, bonus(es) will be paid for winning a Championship.

NCAA Post Season Appearance

$ 5,000 Winning the Big Sky Conference, and $20,000 Winning the FCS Championship

Fringe Benefits

At the option of the University President:

• Use of one motor vehicle provided by Athletics Department through a

donation or lease. If for any reason the contract has been suspended or been terminated the vehicle provision is null and void; and

• Complimentary tickets for personal use as follows: 8 per football game.

Miscellaneous

• Subject to the President’s and Director’s written approval, Coach Souers may enter into agreements with other persons or entities to provide services not included within the contract for compensation as long as such services can be performed within the limits permitted by the Conference, NCAA, and state and federal law, except that Coach Souers may not enter into agreements with the Northern Arizona University Foundation and Coach Souers may not receive compensation from third parties for advertising, sponsorship, media speaking appearances or fundraising services unless such compensation is expressly allowed by the terms of the contract.



• The contract may be terminated by the NAU President for cause in which case NAU will be liable only for salary and other compensation earned as of the termination date. If the contract is terminated by NAU for cause and the cause is one or more material violations of NCAA or Conference rules, Coach Souers will 1) pay to NAU its actual damages up to $10,000 and 2) forfeit and repay to NAU any bonuses received for outstanding academic achievement and/or outstanding athletic achievement when those achievements are affected by any sanctions, whether self imposed or imposed by the Conference or the NCAA, as a result of those material violations.

• The contract may be terminated by the President at any time without cause. In the event of such termination, the University will pay Coach Souers the amount of salary remaining on the contract at the time of termination, (35% due within 30 days of termination and the balance payable in two equal annual installments on the anniversary date of the first payment) as liquidated damages in lieu of any and all other legal remedies or equitable relief.

• Coach Souers may terminate the contract for any reason on written notice to the University. Termination by Coach Souers prior to the completion of the contract shall, at the President’s discretion, obligate Coach Souers to pay the University liquidated damages in the sum of $10,000 within thirty (30) days of termination. Termination by Coach Souers due to reasons other than accepting another coaching job will not be subject to the $10,000 liquidated damages clause.

• The University and Coach Souers may, by mutual agreement, initiate

negotiations to renew the contract at any time after December 31, 2012.

• The contract has been reviewed by University counsel and will be available for review by Board counsel.

Recommendation to the Board

It is recommended that the Board authorize Northern Arizona University to enter into a Multiple-Year Employment Contract with Jerome Souers according to the terms and conditions set forth in this executive summary.




B. Glenn George 520/621-5150, Vice President for Legal Affairs and General Counsel, [email protected] Greg Byrne, 520/621-4622, Director, Intercollegiate Athletics, [email protected]

l

Item Name: Extension of Multiple-year Employment Contract for Head Baseball

Coach (UA)

Action Item Discussion Item Information Item Background • The Board approved the Multiple-year Employment Contract ("Contract") of Andrew

Lopez (hereinafter “Lopez”) as University of Arizona Head Baseball Coach at its meeting on June 22-23, 2009. The Contract expiration date is June 30, 2013. The University now requests approval to extend the Contract for an additional two years, through June 30, 2015.

• Lopez's proposed Contract base salary will remain unchanged (currently $128,750) and will continue to be capped at $170,000, subject to annual employee increases as described below. Lopez has been the head baseball coach at The University of Arizona for 9 years. His coaching record includes leading the team to six post-season appearances in the last 9 years, including two Super Regional appearances and one College World Series appearance.

Statutory/Policy Requirements Board Policies 6-1001 through 6-1003 require approval for multiple-year employment contracts. Discussion I. New Contract Terms

Only two provisions in Lopez contract are changed with the requested contract extension:

Issue: The University of Arizona requests approval to extend the Multiple-Year Employment Contract for Andrew Lopez as Head Coach of its Baseball Team, from its present expiration date of June 30, 2013, through June 30, 2015.



• The contract expiration date is extended for two years, from June 30, 2013 to June 30, 2015.

• The contract contains a new term regarding Termination for Cause: The

University may terminate Lopez for cause if the NCAA imposes penalties upon the Team under Bylaw 23.2 of the NCAA Manual that result in ineligibility for postseason competition or placement on restricted membership status.

II. Summary of Continuing (Unchanged) Contract Terms

A. Base Salary

• Lopez’s salary will be paid entirely from revenue generated by the Athletic Department. No part of his salary will be paid from appropriated funds.

• Lopez’s base salary for duties related to coaching the Baseball Team will

remain at $128,750 per annum (the base salary last approved by the Board was $125,000; this sum was adjusted upward by 3% [$3,750] based upon the Team's 2010 NCAA postseason appearance). His salary may be increased by an amount not to exceed the percentage increase available annually to employees of the University subject to the Conditions of Professional Service.

• In addition to the annual increase noted above, Lopez may receive

adjustments to his base salary for attaining “Athletic Performance Milestones.” Adjustments are for the highest-ranked Milestone and are not cumulative to any lower-ranked Milestone achieved. In no event shall adjustments to base salary for Athletic Performance Milestones exceed 15% during any given contract year. The Milestones are as follows:

NCAA National Champion 15% NCAA College World Series (Top 8) 10% NCAA Super Regionals (Top 16) 5% NCAA Postseason Appearance or

Pac-10 Champion 3%

• If Lopez’s base salary reaches $170,000, it may not be increased further based upon the achievement of Athletic Performance Milestones, but can only be increased by an amount not to exceed the percentage increase available annually to employees of the University subject to the Conditions of Professional Service.



B. Bonuses

Lopez may receive annual incentive bonuses for Team Academic and Athletic Performance achievements. Such bonuses are contained in Lopez's current contract and their amount is not being changed. The following payments are one-time bonuses which may be awarded on an annual basis and will not increase Lopez's base salary:

• Academic Achievement Incentives (Adjusted for Updated APR and GSR

Data)

Lopez may receive annual bonuses for achieving the following Academic Progress Rate (APR) and Graduation Success Rate (GSR) team achievements in a given year. Payments are for the highest-ranked achievement attained in each respective category and are not cumulative to any lower-ranked achievement in that category:

1. APR

- $ 7,500 if the APR is 1,000; - $ 5,000 if the APR meets or exceeds 961.

2. GSR - $ 7,500 if the GSR is 100%; - $ 5,000 if the GSR is greater than 70%.

• Athletic Achievement Bonuses

Lopez may also receive annual bonuses for achieving the following Team Athletic Performance achievements in a given year. Payments are for the highest-ranked achievement attained in each respective category and are not cumulative to any lower-ranked achievement in that category:

1. Regular Season Competition:

Pac-10 Champion $ 5,000 2. Postseason Competition:

NCAA National Champion $ 15,000 NCAA College World Series (Top 8) $ 10,000 NCAA Super Regionals (Top 16) $ 7,500 NCAA Postseason Appearance $ 5,000



C. Additional Terms

• Lopez will receive all employee-related benefits that are normally available to other University employees in the professional service. He will receive additional benefits, including tickets to UA sporting events, use of one automobile or a stipend therefor, and guests to post-season baseball events.

• To the extent required by NCAA and Pacific-10 Conference regulations or

University policy, Lopez must disclose all outside income to the Athletics Director, the University President, and the ABOR President annually.

• The contract may be terminated by the University President or his

designated representative for cause, in which case the University shall be liable only for salary and incentive payments due as of the date of termination. Additionally, if Lopez violates NCAA or Pacific-10 Conference regulations, he may be liable to the University for damages up to $100,000.

• If the University President or his designated representative terminates the

contract without cause, the University shall pay Lopez liquidated damages for each year or portion thereof (pro rata) remaining in the Contract, calculated using 60% of Lopez’s annual base salary as of the date of termination, plus 28.9% of his then base salary (the agreed value of employee-related expenses [ERE]), plus the sum of $7,200 (the agreed value of an automobile provided by the University or by outside entities for Lopez’ use during the term of this contract).

• In the event Lopez terminates the contract during its term, he must pay the

University $ 50,000 in liquidated damages at the University President’s discretion.

Recommendation to the Board It is recommended that the Board approve the extension of the Multiple-Year Employment Contract of Andrew Lopez, Head Baseball Coach, according to the terms and conditions set forth in this executive summary.

Board of Regents Meeting December 9 - 10, 2010


Contact Information: Robert R. Smith, Interim Senior Vice President for Business Affairs, (520) 621-5977, [email protected] B. Glenn George, Vice President for Legal Affairs and General Counsel, (520) 621-5150, [email protected],)

Item Name: Trust Agreement Between the University of Arizona and the University of Arizona Foundation for Pooled Endowment Investment Management and Stewardship Services (UA)


Background

• Over the years, private donors have made permanent endowed gifts for the benefit of the University of Arizona. Some of these gifts have been made directly to the University. Others have been given to the University of Arizona Foundation (Foundation), a nonprofit tax-exempt charitable corporation. Both the University and Foundation invest their endowments and declare a payout (currently 4%) to support University activities as designated by the donor.

• As of September 30, 2010, the market value of all the endowed gifts was

$498,074,359, of which $164,952,092 (33.1%) is held by the University and $333,122,267 (66.9%) by the Foundation.

• The combined endowment, while substantial, is relatively small in comparison

with the University’s peer institutions. ABOR and the University have placed a priority on increasing the endowments, both by new gifts and by responsible investment growth, to enhance the University’s long-term financial stability.

• Currently the University’s endowment funds are held and managed by the UA

Financial Services (Investment Office) and investment committee appointed by the President of the University. The Foundation’s endowment is managed under a model portfolio approach by Foundation staff, the Foundation’s independent Investment Consultant, and the Foundation’s investment committee and trustees.

Issue: The University of Arizona requests approval to enter into a trust agreement under which the University of Arizona Foundation will manage the investment of University and Foundation pooled endowment funds for the long-term benefit of the University, and provide stewardship services to beneficiary departments and donors of endowed gifts.

Board of Regents Meeting December 9 and 10, 2010


• Both University and Foundation administrations believe that consolidation of the endowments for investment purposes would enable them to eliminate duplication of effort, provide costs savings, and provide all University donors with the highest level of stewardship. ABOR approved a similar arrangement for Arizona State University in 2002.

Statutory/Policy Requirements ABOR Policy 3-301 governs University investments. Discussion

• The University wishes to engage the Foundation to provide endowment investment management and stewardship services for the University endowment pooled funds. The Foundation is the only provider that can provide University pooled endowment donors with an identical investment performance and stewardship experience as donors to the Foundation. The University believes that all donors to the University enterprise, whether their gift was made to the University or to the Foundation, should enjoy the same endowment performance and same endowment stewardship experience.

• Under the proposed agreement, the endowments will be placed in a unified

investment pool, under the supervision of the Foundation’s investment committee. The President of the University will appoint four members of the Foundation investment committee, which will be designated under ABOR Policy 3-301(C) as the University investment committee for purposes of the endowment accounts.

• The University believes that it will directly benefit from these services in many

ways, including but not limited to, additional donations to existing University endowment accounts and substantial improvement in the timeliness and consistency of reporting on endowment accounts to University departments and donors.

• During the ongoing challenge of budget cutbacks, the arrangement will eliminate

duplication in the management of funds with similar purposes and will allow the University to reduce the time and cost devoted to managing the University-held endowment by an estimated $60,000. The Foundation will not be compensated for these services, but will pass through incremental third party costs of $100,000 per year. By comparison, the best proposal under a recent University RFP for third-party endowment investment consultants for the University’s endowment was $150,000, yielding a net savings of $50,000 in management costs.

Board of Regents Meeting December 9 and 10, 2010


• The University will have the right to terminate the trust arrangement with the

Foundation at any time.

• Detailed terms of the arrangement will be contained in an amendment to the existing Development Management Services Agreement that substantially mirrors the existing trust agreement between ASU and the ASU Foundation. The form of agreement will be subject to approval by the University’s Office of General Counsel.

Recommendation to the Board It is recommended that the Board approve the University of Arizona’s request to enter into an agreement with the University of Arizona Foundation, as trustee, to manage the assets of present and future University pooled endowments, as presented in this executive summary.

Board of Regents Meeting December 9–10, 2010


Contact Information: Robert Shelton, President, (520) 621-5511, [email protected] William Crist, Vice President for Health Affairs, (520) 626-1197, [email protected] B. Glenn George, Vice President and General Counsel, (520) 621-3175, [email protected]

Item Name: Executive Committee for UA Healthcare, Inc. Board of Directors


Background On June 11, 2010, the Arizona Board of Regents (ABOR) approved a number of measures for the restructuring of the academic health center at the University of Arizona College of Medicine-Tucson, including the formation of UA Healthcare, Inc. (“UAH,” designated in prior Board documents as “NewCo”). Under the bylaws of UAH, the election of the Executive Committee of the Board of Directors is subject to approval by the Board of Regents. Statutory/Policy Requirements Article VI, Sec. 1 of the Bylaws of UAH: “Members of the Executive Committee are subject to approval by the Arizona Board of Regents.” Discussion At its meeting on September 23, 2010, the ABOR approved the following members of the UAH Board Executive Committee:

1. Granger Vinall, Chairman of the Board 2. Steve Goldschmid, Vice Chair 3. Kevin Burns, CEO of UAH 4. William Crist, Vice President for Health Affairs 5. Fayez Ghishan 6. Rick Myers 7. Bruce Nordstrom

At its meeting on August 26, 2010, the UAH Board approved Joseph Cesare as an additional member of the UAH Board Executive Committee.

Issue: The Board is asked to approve the election of Joseph Cesare as a member of the Executive Committee of the UA Healthcare, Inc. Board of Directors.



Recommendation to the Task Force It is recommended that the Board approve the election of Joseph Cesare as a member of the Executive Committee of the UA Healthcare, Inc. Board of Directors, as presented in this Executive Summary.



Contact Information: Gale Tebeau (ABOR) 602-229-2522 [email protected]

Item Name: Tuition-Setting Calendar for the 2011-12 Academic Year

Action Item Discussion Item Information Item Background: < Each year the Board adopts a process and calendar for setting tuition, fees, and

residence hall rates.

< Prior to 2006, tuition and fees were set in the spring (March/April) in order to coincide with the state budgeting process. The process was moved to the fall in 2006 to provide students earlier notice of tuition increases. In 2010, the Board returned to the spring cycle for setting tuition and fees, in order to consider all the latest, relevant data that is used to make informed decisions, including better estimates of student enrollments for the upcoming year, and outcomes of legislative actions on the university system.

< The calendar below outlines a proposed schedule to permit the Board to set the

2011-12 academic year tuition, mandatory fees, and all other fees requiring Board action at its April 7-8, 2011, meeting.

< The Board is required to meet specific legislative requirements during the tuition and fee setting process, including: provide at least one public hearing at each university; publication of the notice of public hearing; and public disclosure by each university of any proposed increases in tuition or fees. The following calendar is intended to meet the legislative requirements.

Statutory/Policy Requirements: < A.R.S. §15-1626 General Administrative Powers of the Board authorizes the

Board to set tuition, and outlines public notification requirements. < Board Policy 4-101 through 4-105 authorizes the Board to set tuition.

Issue: The Board is asked to approve a tuition-setting process and calendar to set

the 2011-12 academic year tuition and fees in April 2011.


Agenda Item #22 EXECUTIVE SUMMARY Page 2 of 2

TUITION AND FEE SETTING PROCESS AND CALENDAR FOR ACADEMIC YEAR 2011-2012

University presidents meet with student leadership Ongoing

< Review and approve the FY 2010 Annual Student Financial Aid Report and Student Financial Aid Plans for FY 2011 and FY 2012

February 17-18, 2011

Board Meeting

< Public disclosure by each university of proposed tuition and fee increases

< Public Notice of Tuition Hearing

March 18-21 (must be at least ten days prior to the tuition hearing

< Tuition Hearing (one week prior to Board meeting via interactive video) Week of March 28-31

< Set 2011-12 Academic Year Tuition and Fees

< Review and approve Residence Hall Rates

April 7-8, 2011

Board Meeting

Recommendation to the Board: It is recommended that the Board approve the tuition-setting process and calendar for the 2011-12 academic year, as presented in this Executive Summary.



Contact Information: William Crist, Vice President for Health Affairs, (520) 626-1197, [email protected] B. Glenn George, Vice President for Legal Affairs and General Counsel, (520) 621-5150, [email protected],)

Item Name: Intergovernmental Agreement (IGA) between the University of Arizona and the Arizona Health Care Cost Containment System (AHCCCS) for Disproportionate Share Hospital Program Funding (UA)


Background

• The State’s Medicaid program, the Arizona Health Care Cost Containment

System (AHCCCS), has been working with local governments and universities to expand participation in programs in which the federal Medicaid program matches funding raised from local governmental sources. Once such program was for Graduate Medical Education (clinical teaching program funding) that the Board previously approved in August of this year.

• Another opportunity now exists to further support our teaching hospitals involving

the Medicaid Disproportionate Share Hospital (DSH) program. Congress established the DSH program in 1981 to provide financial support to hospitals that serve a significant number of low-income patients with special needs. AHCCCS may make disproportionate share payments to eligible hospitals pursuant to A.R.S. 36-2903.01 and Attachment D of the Special Terms and Conditions of the AHCCCS Section 1115 Medicaid demonstration project.

• This year the match rate for DSH funding is roughly $2 in federal funds for every $1 in local funds. Without this program, federal draw-down funds would remain unused.

• Several of the University of Arizona’s Colleges of Medicine in Tucson and

Phoenix teaching hospitals are eligible to receive disproportionate share funds.

• The University of Arizona (UA) wishes to support those teaching hospitals and further strengthen its hospital teaching programs by providing funding to qualify

Issue: The Board is asked to approve an agreement between the University of

Arizona and AHCCCS for disproportionate share hospital program funding.



for additional federal matching monies for DSH payments for hospitals designated by the University, as provided for in Laws 2009, third special session, chapter 10, section 23, paragraph 4, as added by H.B. 2116. This legislation permits the funding entity to designate specific providers it intends to be recipients of the resulting federal matching funds. The UA College of Medicine - Tucson has designated University Medical Center and University Physicians Hospital to receive funds as provided in the ABOR-Pima County-UA Healthcare Agreement approved by ABOR on June 11, 2010. The UA College of Medicine - Phoenix has designated Phoenix Children’s Hospital to receive funds as provided in the ABOR-Phoenix Children’s Hospital Affiliation Agreement for Clinical Academic Education and Research approved by ABOR on August 5, 2010 (PCH Affiliation Agreement).


• ABOR Policy #3-204: Board approval of this Agreement is required because the dollar amount exceeds the $1,000,000 threshold.

Previous Board Actions

• ABOR approved at its August 5-6, 2010 meeting the intergovernmental agreement with AHCCCS for Graduate Medical Education. This proposed item deals specifically with DSH funding.

Discussion

• Under this IGA, the UA will provide local funds to AHCCCS to generate additional new federal funding. Under the pending amendment to AHCCCS’ Medicaid waiver under Section 1115 of the Social Security Act (Waiver Amendment) that AHCCCS has submitted to the Centers for Medicare and Medicaid Services (CMS), the federal agency that oversees Medicare and Medicaid services, the UA match funds plus new federal funding will be made available to University Medical Center, UPH Hospital and Phoenix Children’s Hospital. This IGA will not be executed unless and until CMS approves the Waiver Amendment.

• The UA funds used as local matching funds are (a) new funding received from

Pima County under the ABOR-Pima County-UA Healthcare Agreement and (b) general state appropriation funding that UA is providing in support of its affiliation with Phoenix Children’s Hospital in accordance with the PCH Affiliation Agreement.



• The UA Healthcare Task Force reviewed this item at its November 23, 2010 meeting and recommends approval by the Board.

The Intergovernmental Agreement Between ABOR and AHCCCS for Disproportionate Share Hospital Program Funding is attached. Recommendation to the Board It is recommended that the Board approve the IGA between ABOR and AHCCCS for Disproportionate Share Hospital Program Funding, and authorize execution of the agreement upon CMS approval of the Waiver Amendment, as presented in this executive summary and accompanying appendix.



INTERGOVERNMENTAL AGREEMENT

BETWEEN

ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM ADMINISTRATION

(AHCCCS) And

THE ARIZONA BOARD OF REGENTS, ACTING ON BEHALF OF THE UNIVERSITY OF ARIZONA (UA)

For

DISPROPORTIONATE SHARE HOSPITAL PROGRAM FUNDING

This Intergovernmental Agreement (IGA) is entered into by and between the

Arizona Health Care Cost Containment System (“AHCCCS”) and the Arizona Board of Regents, acting on behalf of The University of Arizona (“UA”), a body corporate, created by the Arizona Constitution, pursuant to A.R.S. § 11-952.

RECITALS WHEREAS, Congress established the Medicaid Disproportionate Share Hospital (DSH) program in 1981 to provide financial support to hospitals that serve a significant number of low-income patients with special needs; and WHEREAS, AHCCCS may make disproportionate share payments to eligible hospitals pursuant to A.R.S. 36-2903.01 and Attachment D of the Special Terms and Conditions of the AHCCCS Section 1115 Medicaid demonstration project; and WHEREAS, the University of Arizona’s Colleges of Medicine in Tucson and Phoenix use certain hospitals as their teaching hospitals for their graduate medical education programs; and WHEREAS, many of those teaching hospitals also service a large number of Medicaid and uninsured patients and are thus eligible to receive DSH funds; and WHEREAS, the University of Arizona (UA) wishes to support those teaching hospitals by providing funding to qualify for additional federal matching monies for DSH payments for hospitals designated by the University, as provided for in Laws 2009, third special session, chapter 10, section 23, paragraph 4, as added by H.B. 2116; and



WHEREAS, AHCCCS is duly authorized to execute and administer Agreements under A.R.S. § 36-2903 et seq.; and WHEREAS, UA is duly authorized to enter into this Agreement under A.R.S. §§ 15-1625 et. seq; and WHEREAS, AHCCCS, and UA are authorized by A.R.S. § 11-951 et seq. to enter into Intergovernmental Agreements for cooperative action pertaining to reimbursement or advancements of funds for services performed; and WHEREAS, as authorized by Laws 2009, third special session, chapter 10, section 23, paragraph 4, as added by H.B. 2116, the UA and AHCCCS wish to enter into this Agreement in order to establish procedures to fund the non-federal share of the Medicaid payment for DSH Program funding in Maricopa and Pima Counties. NOW, THEREFORE, UA and AHCCCS (collectively, the “Parties”), pursuant to the above, and in consideration of the matters and things hereinafter set forth, do mutually agree as follows:

1.0 DEFINITIONS: Unless otherwise defined in this Agreement, all terms have the

same meaning as set forth in Title 36 of the Arizona Revised Statutes or Laws 2009, third special session, chapter 10, section 23, paragraph 4, as added by H.B. 2116, as appropriate.

1.1 Agreement: This document, together with any and all attachments,

appendices, exhibits, schedules and future amendments as agreed to by the Parties.

1.2 AHCCCS: Arizona Health Care Cost Containment System. 1.3 CFR: Code of Federal Regulations – the official compilation of Federal

rules and requirements.

1.4 CMS: Centers for Medicare and Medicaid Services, a Federal agency within the U.S. Department of Health and Human Services.

1.5 Day: A calendar day, unless specified otherwise. 1.6 Designated Maricopa and Pima County Hospital(s): Those teaching

hospitals located in Maricopa and Pima Counties that UA has designated pursuant to Laws 2009, third special session, chapter 10, section 23, paragraph 4, as added by H.B. 2116 to receive DSH payments funded



with UA Non-Federal Share Payments, specifically University Medical Center, University Physicians Healthcare Hospital at Kino Campus and Phoenix Children’s Hospital.

1.7 Disproportionate Share Hospital (or DSH) Payment: A payment to a

hospital that serves a disproportionate share of low-income patients as described by 42 United States Code Section 1396r-4 and Attachment D of the Special Terms and Conditions of the AHCCCS Section 1115 Medicaid demonstration project.

1.8 FFP: Federal Financial Participation refers to the Federal matching

payments that the Federal government makes to the Title XIX program portion of AHCCCS, which are the monies that AHCCCS can claim from CMS for the Federal share of AHCCCS Program service and administration costs.

1.9 State: The State of Arizona. 2.0 Non-Federal Share: The percentage of DSH Payments contributed by the

State or paid to AHCCCS by UA or another permissible local entity to qualify for FFP.

2.1 Non-Federal Share Payments: Funds provided by UA or another

permissible local entity for the Non-Federal Share of DSH Payments. 2.0 PURPOSE:

The purpose of this Agreement is to provide a framework that complies with Federal and State laws, regulations, rules and appropriate CMS approval for AHCCCS and the UA to fund the Non-Federal Share of DSH Payments to Designated Maricopa and Pima County Hospitals for the period of October 1, 2009 through September 30, 2010. The Agreement is entered into pursuant to Laws 2009, third special session, chapter 10, section 23, paragraph 4, as added by H.B. 2116 to provide AHCCCS with funds to cover the cost of the Non-Federal Share of DSH Payments to Designated Maricopa and Pima County Hospitals.

3.0 SCOPE:

3.1 ELIGIBILITY REQUIREMENTS.

Monies generated through this Agreement may only be utilized for the Non-Federal Share of DSH Payments to Designated Maricopa and Pima County Hospitals. AHCCCS Administration will determine which



Designated Maricopa and Pima County Hospitals are approved and eligible to receive distribution of DSH Payments for the period of October 1, 2009 through September 30, 2010 and the amount of any distribution. Eligibility and distribution amount determinations will be consistent with applicable Federal statutes, regulations and rules, Laws 2009, third special session, chapter 10, section 23, paragraph 4, as added by H.B. 2116, and this Agreement.

3.2 CONTACT INFORMATION.

3.2.1 AHCCCS.

Questions, comments and concerns regarding the duties and responsibilities of the AHCCCS are to be directed to: Michael Veit, Contracts Administrator AHCCCS 701 E. Jefferson, MD 5700 Phoenix, AZ 85034 Phone: 602-417-4762 Fax: 602-417-5957 E-Mail: [email protected]

3.2.2 THE UA

Questions, comments and concerns regarding the duties and responsibilities of the UA are to be directed to: Jerry Miron Chief Financial Officer, Arizona Health Sciences Center P.O. Box 245202 Tucson, AZ 85724-5202 Phone: 520-626-7728 Fax: 520-626-1460 E-Mail: [email protected]

3.3 AHCCCS RIGHTS AND OBLIGATIONS. 3.3.1 Receipt and Distribution of funds.

AHCCCS will utilize the funds provided by UA pursuant to Section 3.5.1.1 to obtain FFP and distribute the combined funds to Designated Maricopa and Pima County Hospitals for DSH Payments for the period of October 1, 2009 through September 30,



2010. AHCCCS will obtain FFP funds and distribute the combined funds to the Designated Maricopa and Pima County Hospitals within 10 (ten) working days of receipt of the UA funds. AHCCCS will not retain any portion of the Non-Federal Share Payments or the FFP under this Agreement. Both the Non-Federal Share Payments and the FFP may only be used for DSH Payments.

3.3.2 AHCCCS Payment Recoupment from Designated Maricopa and

Pima County Hospitals.

3.3.2.1 AHCCCS will require hospitals receiving distributions as a result of this Agreement to reimburse AHCCCS upon demand and, if not reimbursed upon demand, AHCCCS will deduct from future payments to the receiving hospital(s) any amount:

3.3.2.1.1 Received by the hospital from AHCCCS for

DSH payments that have been inaccurately reported or paid or are found to be for an excluded expense;

3.3.2.1.2 Paid by AHCCCS for which a hospital’s books,

records, and other documents are not sufficient to clearly confirm that the hospital was entitled to the amount paid;

3.3.2.1.3 Identified as a disallowed cost as the result of a

financial management review or audit.

3.3.2.2 AHCCCS is responsible to satisfy any reporting or FFP reimbursement requirements imposed by CMS as a result of a recoupment made as a result of the paragraph 3.3.3.1 of this Agreement or applicable Federal laws, regulations and rules. In the event AHCCCS recoups DSH monies from a Designated Maricopa or Pima County Hospital, AHCCCS will return to UA, without demand, that portion of the recoupment representing the Non-Federal Share contributed under this Agreement.

3.3.2.3 Except as provided in the forgoing provisions of this

paragraph, neither AHCCCS nor UA will require a receiving hospital to reimburse or otherwise compensate or return any of the funds provided to the hospital as a result of this Agreement. Designated Maricopa and Pima County



Hospitals will receive one hundred percent (100%) of all Medicaid DSH payments and those hospitals are not required by this or any other Agreement to return any portion of the payment to AHCCCS or the UA.

3.3.3 Monitoring.

AHCCCS will monitor expenditures covered by this Agreement and notify UA as soon as practicable regarding any irregularities, disallowed expenses or recoupments.

3.4 THE UA’S RIGHTS AND OBLIGATIONS.

3.4.1 Payment of funds

3.4.1.1 The UA will pay AHCCCS the funds, derived from University funds including general State appropriation funds and local government funds transferred from Pima County as shown on Exhibit A, attached hereto, representing the Non-Federal Share of DSH Payments for the Designated Maricopa and Pima County Hospitals, on or before __________.

3.5 GENERAL FINANCIAL RESPONSIBILITIES

3.5.1 AHCCCS Reporting

3.5.1.1 Expenditure Report.

AHCCCS will submit to the UA a report showing actual distribution of funds to the Designated Maricopa and Pima County Hospitals. The distribution report shall be submitted within fifteen (15) days after the date of distribution.

3.6 GENERAL PROVISIONS.

3.6.1 Entire Agreement.

This document, its attachments and appendices, including any approved subcontracts, amendments and modifications made thereto, shall constitute the entire Agreement between the Parties, and supersedes all other understandings, oral or written.



3.6.2 Exercise of Rights.

Failure to exercise any right, power or privilege under this Agreement will not operate as a waiver thereof, nor will a single or partial exercise thereof preclude any other or further exercise of that or any other right, power, or privilege.

3.6.3 Contract Term.

The term of this Agreement is for one (1) year beginning October 1, 2010 and ending September 30, 2011 and is not effective until signed by both parties. This Agreement must be filed with the Secretary of State.

3.6.4 Compliance with Laws, Rules and Regulations.

AHCCCS, the UA and their subcontractors must comply with all applicable Federal and State laws, rules, regulations, standards and Executive Orders, without limitation to those designated within this Agreement. The laws and regulations, of the State of Arizona govern the rights of the Parties, the performance of this Agreement, and any disputes arising from the Agreement. Any action relating to this Agreement must be brought by arbitration to the extent required by A.R.S. § 12-1518 or in an appropriate court. Any arbitration award will be enforced in an appropriate court. Non-Discrimination. The parties shall not discriminate against any employee, client or any other individual in any way because of that person’s age, race, creed, color, religion, sex, disability or national origin in the course of carrying out their duties pursuant to this IGA. The parties shall comply with the provisions of Executive Order 75-5, as amended by Executive Order 2009-09, which is incorporated into this IGA by reference, as if set forth in full herein. ADA. The parties shall comply with all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101-12213) and all applicable federal regulations under the Act, including 28 CFR Parts 35 and 36.



3.6.5 Amendments.

This Agreement, including its term, may be modified only through a duly authorized written amendment, executed with the same formality as the Agreement.

3.6.6 Section 3.6.5, above, notwithstanding, AHCCCS and the UA will

give notice to each other of any change:

3.6.6.1 of address; 3.6.6.2 of telephone number; 3.6.6.3 authorized signatory or designee; or

3.6.6.4 name and/or address of the person to whom notices are to be sent.

3.6.7 Termination.

3.7.7.1 Pursuant to A.R.S. § 38-511, either party to this

Agreement may terminate this Agreement without penalty or further obligation if any person significantly involved in initiating, negotiating, securing, drafting or creating the Agreement is or becomes at any time while the Agreement or an extension of the Agreement is in effect an employee of or a consultant to any other party to this Agreement with respect to the subject matter of the Agreement. The cancellation will be effective when AHCCCS or the UA receives written notice of the cancellation unless the notice specifies a later time.

3.6.8 Records.

The parties agree to retain all financial books, records, and other documents and will contractually require each subcontractor to retain all data and other records relating to the acquisition and performance of the Agreement for a period of five (5) years after the completion of the Agreement. All records are subject to inspection and audit by the parties at reasonable times. Upon request, the parties will produce a legible copy of any or all such records.



3.6.9 Severability.

The provisions of this Agreement are severable. If any provision of this Agreement is held by a court to be invalid or unenforceable, the remaining provisions continue to be valid and enforceable to the full extent permitted by law.

3.6.10 Indemnification.

Each party (as Indemnitor) agrees to indemnify, defend and hold harmless the other party (as Indemnitee) from and against any and all claims, losses, liability, costs or expenses (including reasonable attorney’s fees) (hereinafter collectively referred to as “claims”) arising out of bodily injury of any person (including death) or property damage, but only to the extent that such claims which result in vicarious/derivative liability to the Indemnitee, are caused by the act, omission, negligence, misconduct, or other fault of the Indemnitor, its officers, officials, agents, employees, or volunteers.

3.6.11 Notices.

Notices to the UA should be sent to the person indicated by the UA stated in this Agreement. The UA will send notices required by this Agreement to the AHCCCS Contact person indicated in this Agreement. An authorized Procurement Officer or an authorized UA representative may change the respective person to whom notice is required by providing the other with written notice and an amendment to the Agreement is not necessary.

3.6.12 No Third Party Beneficiaries

Nothing in the provisions of this IGA is intended to create duties or obligations to or rights in third parties not parties to this IGA or effect the legal liability of either party to the IGA.

3.6.13 No Joint Venture

Nothing in this Agreement is intended to create a joint venture

between the Parties and it will not be so construed. Neither AHCCCS’ nor UA’s employees will be considered officers, agents or employees of the other or be entitled to receive any employment-related fringe benefits from the other.



3.7 COMPLIANCE WITH ADMINISTRATIVE REQUIREMENTS FOR STATE

FINANCIAL PARTICIPATION

3.7.1 UA certifies that, consistent with 42 C.F.R. Part 433, Subpart B, no portion of the funds transferred to AHCCCS are derived from (1) provider-related donations other than bona fide provider-related donations or (2) health care-related taxes other than as permitted in Subpart B.

3.7.2 If applicable, UA agrees to provide AHCCCS with supporting

documentation that provides a detailed description including but not limited to the amount, source, and uses) and the legal basis for (1) each provider-related donation received by the UA, including all bona fide and presumed-to-be bona fide donations, and (2) all healthcare-related taxes collected.

3.7.3 If UA fails to provide supporting documentation, or if any funds

transferred by UA are determined to be derived from provider-related donations or health care-related taxes such that the Centers for Medicare and Medicaid Services adjusts future grant awards to AHCCCS or disallows any expenditures claimed by AHCCCS, then UA agrees to reimburse AHCCCS, upon demand by AHCCCS, in the amount of the adjustment or disallowance that is attributable to the impermissible provider-related donation and/or health care-related tax.

3.7.4 UA certifies that, consistent with 42 C.F.R. § 433.51(c), the funds

transferred to AHCCCS under this Agreement are not federal funds, or are federal funds authorized by federal law to be used to match federal funds. If any funds transferred to AHCCCS under this Agreement are determined to be federal funds such that the Centers for Medicare and Medicaid Services adjusts future grant awards to AHCCCS or disallows any expenditures claimed by AHCCCS, then UA agrees to reimburse AHCCCS, upon demand by AHCCCS, in the amount of the adjustment or disallowance that is attributable to the transfer of federal funds.

3.7.5 UA certifies, consistent with 42 U.S.C. § 1396d(cc), that the funds

transferred to AHCCCS as described in this Agreement are made voluntarily by UA and that neither the State nor AHCCCS has through statute, rule, or otherwise required UA to provide the funding.



NOW THEREFORE, AHCCCS and the UA agree to abide by the terms and conditions set forth in this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year specified below. UA ARIZONA HEALTH CARE COST CONTAINMENT

SYSTEM (AHCCCS) ___________________________________ __________________________________ BY: Robert R. Smith Date BY: Michael Veit, Contracts Administrator Date Interim Senior Vice President for Business Affairs In accordance with A.R.S. § 11-952, this Agreement has been reviewed by the undersigned who has determined that this Agreement is in the appropriate form and is within the power and authority granted to UA. University Attorney

In accordance with A.R.S. § 11-952, this Agreement is in the proper form and is within the power and authority granted to AHCCCS under A.R.S. §§ 36-2903 et seq. and 36-2932 et seq. Legal Counsel for AHCCCS



EXHIBIT A

This Exhibit A sets forth the amount of local funds UA will pay to AHCCCS for the benefit of the hospitals identified below: Hospital Local Funds University Medical Center $ 850,000.00 University Physicians Healthcare Hospital $ 1,000,000.00 Phoenix Children’s Hospital $ 1,711,000.00 ______ ____________ TOTAL $ 3,561,000.00



Contact Information Dr. David Coon, Associate Dean for Scholarship and Research Collaborations, College of Nursing and Health Innovation, principal investigator, (480) 496-0763, [email protected].

ITEM NAME: Intergovernmental Agreement (IGA) between the Arizona Department of Economic Security (ADES) and Arizona State University (ASU)


Background The Arizona Department of Economic Security, Division of Aging and Adult Services (ADES-DAAS), in a three-year collaborative partnership with the Arizona Area Agencies on Aging, the local Alzheimer Association, and Arizona State University, will achieve the following goal: Translate the program tools and strategies of the group intervention for family caregivers of persons with dementia known as Coping with Caregiving (CWC) into a community based program named Care Partners Reaching Out (CarePRO) and assure intervention is accessible to diverse populations of caregivers throughout Arizona.

In furtherance of this goal the original version of the subject IGA between ADES-DAAS and the Board was executed in June 2009 without need for Board approval. However, in 2010 the parties sought to modify the IGA through an amendment (Amendment), primarily to increase the funding provided by ADES-DAAS from $195,327 to $746,967. In addition, the Amendment increases the matching requirement from $117,503 to $435,822.

Due to an ADES-DAAS deadline, requiring that the Amendment be executed by mid-September 2010, the Amendment was executed in September with the intent to submit the Amendment to the Board for ratification in the December 2010 consent agenda. This approach was authorized by Board’s General Counsel.

Statutory/Policy Requirements ABOR Policy 3-204: Board ratification of this Amendment is requested because the dollar amount potentially exceeds the $1,000,000 threshold.

Issue: Arizona State University requests ratification of an amendment to an IGA with ADES whereby ASU will provide services for the ReachOut and CarePRO Program in exchange for $746,967. ASU and its parties will also provide $435,822 in match for a total of $1.18 million.



Discussion

Under this amended IGA, which will expire approximately March 2013, the State will provide $746,967 to ASU as a sub-contract for two grants (ReachOut and CarePRO) the State received from the Administration on Aging. ASU and its parties will provide an additional $435,822 in match. ASU will provide 5 key research and assessment services to enable the City to meet the requirements of the grant. The services provided by ASU are:

1. Expand the reach of empirically based caregiver interventions in Arizona by ensuring that CarePRO is available and accessible to diverse and underserved caregivers.

2. Ensure CarePRO’s effectiveness by faithfully rendering the core elements of CWC that were used in REACH, while making the intervention more accessible and practical.

3. Utilize formative evaluation to obtain ongoing feedback regarding ways to improve the delivery and adoption of CarePRO within the community.

4. Assure the consistent delivery of the intervention through implementation of standardized training, focused workshop site selection, and supervised workshop delivery.

5. Maintain and expand delivery of the CarePRO intervention to allow caregivers throughout Arizona an opportunity to learn the coping skills afforded.

Recommendation to the Board It is recommended that the Board ratify the Amendment between ADES-DAAS and ASU relating to the CarePRO project.



Contact Information: William Crist (UA) 520-626-1197 [email protected] Sally Reel (UA) 520-626-6767 [email protected] Kathy Bedard (ABOR) 602-229-2546 [email protected]

Item Name: Arizona Area Health Education Centers (Arizona AHEC) Revised FY 2011 Program Budget


Background/Statutory Requirements • A.R.S. §15-1643 requires the Arizona Board of Regents to establish the Arizona

Area Health Education Centers (Arizona AHEC) system in the University of Arizona College of Medicine. The system consists of five area health education centers, each representing a geographic area of the state.

• Consistent with statute, the Board appoints an Arizona AHEC Program Director, a

statewide Arizona AHEC advisory commission, and a governing board for each of the five centers. As a sponsored project of the University of Arizona, the Arizona AHEC is administered under the direction of Sally J. Reel, PhD, RN, FNP, BC, FAAN, Associate Dean for Academic Practice, College of Nursing. Dr. Reel’s appointment was effective July 1, 2006.

• Proposition 203 (Healthy Arizona 1), an initiative measure passed by Arizona voters

in 1996, requires the Arizona State Lottery to allocate funds to six public health programs specified in A.R.S. §5-522(E) when annual lottery revenues reach a specified threshold. Arizona AHEC is one of the six designated programs and is to receive $4 million annually from the State Lottery. Arizona Lottery revenues reached the specified threshold for the first time in FY 2004, resulting in a partial allocation to Arizona AHEC. Since FY 2005, Arizona AHEC has received at least $4 million annually.

Strategic Implications • The mission of the AHEC Program is to improve the recruitment, diversity,

distribution, and retention of culturally competent personnel providing health services in rural and urban medically underserved communities by addressing the following goals:

Grow our own healthcare workforce Promote community health Serve as a bridge between communities and resources

Issue: The Board is asked to approve the Revised FY 2011 budget for the Arizona Area Health Education Centers (Arizona AHEC) Program.



• The AHEC Program has implemented an evidence-based statewide program format. Programs are implemented through five community-based centers. These programs include statewide recruitment of rural and minority students into health professions; community-based clinical training for health professions students; partnering with local health systems and employers to recruit, train, and retain health care providers and educators; and the delivery of critical continuing professional education and community health education programs.

• Arizona AHEC initiated new undergraduate and graduate interprofessional health

education programs in FY 2007 that focus on underserved and rural populations. The purpose of these programs is to provide education and training for interprofessional teams of students from all four Arizona Health Sciences Center colleges—Medicine, Nursing, Public Health, and Pharmacy—and the regional AHEC Centers. The objectives include:

Introducing these teams of students to populations within Arizona needing a

stronger health professions workforce Developing new approaches to improving health within these populations Demonstrating the rewards for the health professionals who choose to serve

these populations throughout their careers Discussion • The Revised FY 2011 Arizona AHEC Program budget projects total revenue of

$15,074,289, total expenditures of $7,975,461, and a carry forward into FY 2012 of $7,098,828. With the funding stability experienced over the last five years with regular allocations to the AHEC Program of State Lottery funds, Program management will develop a multi-year strategic program plan to expend funds and reduce the unobligated carry forward balance. Strategic planning for 2011 to 2015 is in progress and a vision document is anticipated to be complete by February 1, 2011.

• The revised FY 2011 program budget includes $4.7 million to sustain and continue

interprofessional and primary care training initiatives, including physician residencies. The focus is on training primary care teams in rural and urban medically underserved sites, with emphasis on educational capacity building particularly at the community level, long-term sustainability, and evaluation. These teams also include Medicine, Nursing, Public Health, and Pharmacy. In addition to sustaining and continuing interprofessional training programs, in FY 2011 the Arizona AHEC program will explore development of new discipline-specific initiatives including rural medical residencies, nursing, pharmacy and/or public health programs that target health professions student training related to serving underserved and health disparity Arizona populations.

• In federal FY 2011, the Arizona AHEC Program received $495,075 in federal funds

from the Bureau of Health Professions, Health Resources and Services



Administration (HRSA), U.S. Department of Health and Human Services. Funding is a result of a successful federal two-year competing continuation application that was submitted in May 2010 (AHEC Point of Service Maintenance and Enhancement award). Continued eligibility for federal funds is contingent upon the ability to document a non-federal source of matching funds of $495,075.

• The Patient Protection and Affordable Care Act of 2010 (Public Law 111-148)

provides new emphasis for developing a health care workforce that meets the needs of communities for primary care. Title VII, Part D, comprising of Sections 750-757, of the Public Health Service (PHS) Act authorizes several grant programs to support interdisciplinary, community-based health workforce training. Section 751 authorizes the AHEC program, which provides grants to medical schools and nursing schools to establish and maintain community-based, primary care training programs in off-campus rural and underserved areas. Section 751 authorizes two types of Area Health Education Centers (AHEC) awards: Subsection 751(a)(1) AHEC Infrastructure Development awards replace Basic/Core Area Health Education Centers (BAHEC) Program awards; and Subsection 751(a)(2) AHEC Point of Service Maintenance and Enhancement awards replace Model State Supported Area Health Education Centers (MAHEC) Program awards. Henceforth, the Arizona AHEC program will apply for federal support under Subsection 751(a) (2) with the next competitive application anticipated in 2012.

• The matching funds requirement has been modified under the new legislation. To

be eligible for assistance under Section 751, an entity shall make available (directly or through contributions from state, county or municipal governments, or the private sector) recurring non-federal contributions in cash or in kind, toward such costs in an amount that is equal to not less than 50 percent of such costs. At least 25 percent of the total required non-federal contributions shall be in cash.

• This FY 2011 revised AHEC Program budget is submitted to reflect the revenues

and expenditures anticipated for FY 2011. Recommendation to the Board It is recommended that the Board approve the revised FY 2011 budget for the Arizona Area Health Education Centers Program, as presented in this Executive Summary.



FY 2010 FY 2011 FY 2011Revised Budget and

Total FY 2010 Expend/Encumb Preliminary Budget Revised Budget

REVENUE:CARRY FORWARD BALANCE 10,906,389 11,018,400 9,975,000 5

FEDERAL MODEL AHEC 464,680 464,680 495,075ARIZONA STATE LOTTERY FUNDS 4,384,959 3 4,000,000 4,604,214 7

TOTAL REVENUE 15,756,028$ 15,483,080$ 15,074,289$

EXPENDITURES:PROGRAM ADMINISTRATION 389,383 729,595 729,595

PROGRAM OPERATIONS 33,194 35,000 35,000

AREA HEALTH EDUCATION CENTERS SUBCONTRACTS:SEAHEC 347,383 416,667 420,467WAHEC 415,704 416,667 420,467NAHEC 328,653 416,667 420,467EAHEC 420,634 416,667 420,467GVAHEC 391,105 416,667 420,467

Total AHEC Subcontracts 1,903,479 2,083,335 2,102,333 2

UNLIQUIDATED OBLIGATIONS FOR SUBCONTRACTS IN FY09:(remainder of FY 09 federal year-based subcontracts)

SEAHEC 82,884WAHEC 81,723NAHEC 98,128EAHEC 84,563GVAHEC 136,786

Total Federal FY 08 Subcontracts 484,084 0 0

UNLIQUIDATED OBLIGATIONS FOR SUBCONTRACTS IN FY10:(remainder of FY 10 federal year-based subcontracts)

SEAHEC 83,334 89,093 6

WAHEC 83,334 84,093NAHEC 83,334 84,093EAHEC 83,334 84,093GVAHEC 83,334 84,093

Total Federal FY 09 Subcontracts 0 416,670 425,467

STATEWIDE PROGRAM SUPPORT (Salary Only) 61,196 0INTERPROFESSIONAL EDUCATION PROGRAMS (FY10) 0 4 1,200,000 1,500,000INTERPROFESSIONAL EDUCATION PROGRAMS (FY09) 351,093 4 731,753 568,038INTERPROFESSIONAL EDUCATION COCER (FY09) 0 4 1,704,315 1,630,109INTERPROFESSIONAL EDUCATION PROGRAMS (FY08) 1,408,325 4 1,472,287 820,070INTERPROFESSIONAL EDUCATION PROGRAMS (FY07) 228,319 4 200,162 159,849CLINICAL COMMUNITY PROGRAMS (Salary Only) 67,026

Rural Health Conference Sponsorship 5,000TOTAL EXPENDITURES 1 4,926,099$ 8,573,117$ 7,975,461$

CARRY FORWARD 10,829,930$ 6,909,963$ 7,098,828$

1 Expenditures balanced through June 30, 20102 Subcontracts are 10 months of federal year-based subcontract amounts.3 Payment from the State Lottery funds is contingent on FY 2010 lottery performance (payments usually received after close of fiscal year).4 FIFO method used to record expenses.5 State Lottery fund balance as of Nov. 2010 $9,975,0006 Includes $5,000 approved carryforward from FY2010.7 Projected payment from the State Lottery fund is $4,604,214 for FY2011. Not actual revenues

Revised FY 2011 ARIZONA AHEC BUDGET



Contact: R. F. Shangraw, Jr., Ph.D., Vice President for Research and Economic

Affairs (480) 965-4087 [email protected] Augustine V. Cheng, Managing Director, Arizona Technology Enterprises

(480) 884-1985 [email protected]

Item Name: Disclosure of Substantial Interest of University Employees in Neural Micro Devices LLC (ASU)


Background

• Dr. Bruce Towe Professor in the School of Biological and Health Systems Engineering at Arizona State University.

• Dr. Towe and Ms. Laura Perryman (the “Founders”) are the co-founders of a

company called Neural Micro Devices LLC, a Delaware Limited Liability Company (the “Company”). Subject to ABOR approval, AzTE will transfer certain technology in the field of neurostimulation technology developed for the purpose of medical therapeutics pursuant to the License Agreement. The technology transferred by ASU/AzTE will provide the basis to develop and market a new class of medical technologies.

• Under the License Agreement (the “Agreement”), AzTE will receive royalty of

1.15% to 3.6% for the sale of any Patent Products developed by the Company based on cumulative sales of such products and 1% of the sale of any Other Products based on use of materials and technical information licensed to the Company.

• Under the Agreement, AzTE will receive 15% of any other gross revenue

(excluding royalties from the sale of Products and funds for research and development) received by the Company relating to the licensed technology within the first two years, 10% between two and four years, and 6% thereafter.

• Under the Agreement, the Company has the option to receive a fully paid-up

royalty waiver for a one-time payment of $75 Million dollars.

Issue: Arizona State University requests Board approval to transfer

technology to Neural Micro Devices LLC pursuant to a License Agreement between AzTE and Neural Micro Devices LLC.




• The Arizona legislature made provision for university employees to act on behalf of a university while also owning an interest in a private sector business having contractual arrangements with the university (Laws 1986 Ch. 240 Section 2, A.R.S. Section 15-1635.01). The present cases have been reviewed by Arizona State University, undergone Regent review pursuant to the provisions of ABOR 3-901, and are now presented for Board approval.

• ABOR 3-901.B.1 provides that, subject to Board approval, a university may

license or otherwise transfer board owned technology developed by an employee of the university to that employee or to a private entity in which the employee maintains a substantial interest. As required by ABOR 3-901 B.2.e, the ASU President certifies the following to the best of his knowledge:

• (1) The nature of the proposed agreement has been fully described to

the president. (2) The proposed agreement will benefit the economies of the state or

the nation. (3) The proposed agreement does not violate any existing state or

university contract. (4) University instructional activities, research and public service will

not be adversely affected. (5) No employee interest will adversely affect any state interest. (6) The proposed agreement is not in violation of board policy on

competition with private enterprise. (7) The president is satisfied that the proposed agreement provides for

adequate consideration to compensate the university for the transfer of the technology.

(8) The agreement has been approved by university counsel. Recommendation to the Board It is recommended that the Board approve Arizona State University’s request to transfer technology to Neural Micro Devices LLC pursuant to a License Agreement between AzTE and Neural Micro Devices LLC.




Affairs (480) 965-4087 [email protected] Augustine V. Cheng, Managing Director, Arizona Technology Enterprises

(480) 884-1985 [email protected]

Item Name: Disclosure of Substantial Interest of University Employees in Daylight Solutions, LLC (ASU)


Background

• Dr. Mark Henderson is a Professor and Dr. Bradley Rogers is an Associate Professor in the College of Technology & Innovation at Arizona State University. Mr. John Takamura is an Assistant Professor at the School of Architecture and Landscape Architecture at Arizona State University. Mr. Michael Pugliese is a graduate student with a Master’s degree in Mechanical Engineering from the College of Technology & Innovation at Arizona State University.

• Dr. Henderson, Dr. Rogers, Mr. Takamura, and Mr. Pugliese (the “Founders”) are

the co-founders of a company called Daylight Solutions, LLC, an Arizona limited liability company (the “Company”). Subject to ABOR approval, AzTE will transfer certain technology in the field of energy generation using waste heat developed for the purpose of off-grid energy applications by Dr. Henderson, Dr. Rogers, Mr. Takamura, and Mr. Pugliese to Daylight Solutions, LLC pursuant to the license agreement. The technology transferred by ASU/AzTE will provide the basis for Daylight Solutions, LLC to develop and market an energy generator using waste heat.

• Under the License Agreement (the “Agreement”), AzTE will own 4% of the

outstanding equity and will receive a royalty of 4% for the sale of Patented Products and 3% on Other Products.

• It is contemplated that the remainder of the Company’s equity will be owned by the

Founders and present or future Company members.


technology to Daylight Solutions, LLC pursuant to a License Agreement between AzTE and Daylight Solutions, LLC.







(1) The nature of the proposed agreement has been fully described to the president.

(2) The proposed agreement will benefit the economies of the state or the nation.

(3) The proposed agreement does not violate any existing state or university contract.

(4) University instructional activities, research and public service will not be adversely affected.

(5) No employee interest will adversely affect any state interest. (6) The proposed agreement is not in violation of board policy on



(8) The agreement has been approved by university counsel. Recommendation to the Board It is recommended that the Board approve Arizona State University’s request to transfer technology to Daylight Solutions, LLC pursuant to a License Agreement between AzTE and Daylight Solutions, LLC.




Affairs (480) 965-4087 [email protected] Augustine V. Cheng, Managing Director, Arizona Technology Enterprises (480) 884-1985 [email protected]

Item Name: Disclosure of Substantial Interest of University Employees in Matteren, LLC (ASU)


Background

• Dr. Dong-Kyun (Don) Seo is an Associate Professor in the Department of Chemistry and Biochemistry at Arizona State University.

• Dr. Seo is the co-founder of a company called Matteren, LLC (the “Company”), a

Delaware Limited Liability Company and a subsidiary of NanoVoltaix, Inc., a Tempe-based CleanTech company. Subject to ABOR approval, AzTE will transfer certain technology in the field of nanomaterials technology developed for the applications in energy and environment by Dr. Seo to Matteren, LLC pursuant to the License Agreement. The technology transferred by ASU/AzTE will provide the basis for Matteren, LLC to develop and market nanotechnologies for energy and environmental applications.

• All additional co-inventors and contributors at ASU have consented to the use of IP

that was collectively created and to which they have contributed in the context of the formation of the company with Dr. Seo and NanoVoltaix, Inc. as founders. The full list of inventors and co-inventors will be listed by name in materials where detailed attribution of development is discussed by the company. The founders of the company will endeavor to retain the attribution of inventors and co-inventors in the case of a future merger or acquisition event.

• Under the License Agreement (the “Agreement”), AzTE will own 3½% of the

outstanding LLC Units and will receive a royalty of 2½% for the sale of any Licensed Products.

• It is contemplated that the remainder of the Company’s equity will be owned by the

Founders and present or future Company members.


technology to Matteren, LLC pursuant to a License Agreement between AzTE and Matteren, LLC.







• (1) The nature of the proposed agreement has been fully described to

the president. (2) The proposed agreement will benefit the economies of the state or

the nation. (3) The proposed agreement does not violate any existing state or

university contract. (4) University instructional activities, research and public service will

not be adversely affected. (5) No employee interest will adversely affect any state interest. (6) The proposed agreement is not in violation of board policy on



(8) The agreement has been approved by university counsel. Recommendation to the Board It is recommended that the Board approve Arizona State University’s request to transfer technology to Matteren, LLC pursuant to a License Agreement between AzTE and Matteren, LLC.

Board of Regents Meeting December 9-10, 2010 Item #29

EXECUTIVE SUMMARY Page 1 of 4

Contact Information: Dr. R.F. Shangraw, Senior Vice President for Knowledge Enterprise Development, (480) 965-4087, [email protected]

Item Name: Authorization to Approve Various New and Continuation Awards (ASU)


Statutory/Policy Requirements:

Pursuant to ABOR Policy 3-203 (B) Research and Public Service Agreements, ABOR approval is required for any new agreements in excess of $1 million and continuation of existing agreements involving more than $1.5 million

Strategic Implications:

Approval of these awards is critical to the continuation and enhancement of ASU’s increased visibility with research activities, promotes ASU’s research reputation and increases research expenditures.

New Awards 1. New award from NSF-Division of Social and Economic Sciences # 0951366

• This new award will support the project entitled “Decision Center for a Desert City II – Urban Climate Adaptation”.

• The Decision Center for a Desert City (DCDC) at Arizona State University was established in 2004 by the National Science Foundation (NSF) to advance the scientific understanding of environmental decision making in the face of climate variability and change. Under newly awarded NSF funding, DCDC II will expand its already extensive research agenda in urban resource decision making and engage the policy-making community to build stronger links between scientific knowledge and action. New DCDC research will inform urban climate adaptation decisions locally, nationally, and globally.

Issue: Arizona State University requests Board approval for acceptance of new and continuation awards of grants and research contracts from various sponsors in the amount of $26,468,356 with an anticipated total amount of $48,536,714 throughout the life of the projects.



• The ASU project director is Patricia Gober, GIOS: Global Institute of Sustainability.

• The project period is September 1, 2010 through August 31, 2015. • The obligated amount is $1,300,000 with a total anticipated funding amount of

$6,499,999 for the life of the project. • Matching or cost sharing is not required.

2. New award from Johnson (Robert Wood) Foundation # 67970

• This new award will support the project entitled “Building the Field of Public Health Law”.

• The Public Health Law Network connects and serves individuals and organizations committed to applying the law to improve public health. Working with and for public health practitioners; local, tribal, state and federal officials; lawyers; policy-makers and public health advocates, the Network provides: (1) innovative legal technical assistance; (2) training materials and programs on public health law; and (3) connections among the public health law field. Located jointly at the Sandra Day O’Connor College of Law at Arizona State University and at the University of New Mexico School of Law, the Western Region leads the legal technical assistance and research efforts on: (a) Emergency Legal Preparedness and Response; and (b) Tribal Public Health Law.

• The ASU project director is James Hodge, Sandra Day O’Connor College of Law. • The project period is July 20, 2010 through March 14, 2013. • The obligated amount is $1,325,000 with a total anticipated funding amount of

$1,325,000 for the life of the project. • Matching or cost sharing is not required.

3. New award from DOEd - Elementary & Secondary Education # S385A100163

• This new award will support the project entitled “Arizona Ready-for-Rigor Project”.

• The Arizona Ready-for-Rigor Project, led by ASU in collaboration with the Arizona Department of Education and the National Institute for Excellence in Teaching, is a statewide network of schools in partner districts serving high-need students. The goals of the project include increasing student achievement, retaining highly effective educators and fostering exemplary school culture in the highest-need communities across Arizona.

• The ASU project director is Dale Scott Ridley, College of Teacher Education and Leadership

• The project period is October 1, 2010 through September 30, 2015. • The obligated amount is $20,007,590 with a total anticipated funding amount of

$35,225,166 for the life of the project.



• Matching or cost sharing is required. • Total amount of Cost Share is $12,890,862. All Cost share is being met by

school district partners.

4. New award from Science Foundation of Arizona # SRG0438-09 • This new award will support the project entitled “Arizona Center for Algae

Technology and Innovation (AzCATI)”. • AzCATI, a collaborative partnership between Science Foundation Arizona,

Arizona State University and the developing algae industry, will position Arizona as a leader in research, development and commercialization of next generation biofuel technologies spurring a new industry cluster. AzCATI will function as a critical hub in the global exploration for renewable bioenergy sources and technologies, tapping into increasing global demand for solutions and innovation. Assembling multidisciplinary teams from biological, chemical, and engineering disciplines across academic, governmental, and industry boundaries will enable scientific discoveries, development of cutting-edge technologies, and generation of innovative solutions to key biological, engineering and economic problems critical for transformation and translation of algae into cost-affordable, sustainable sources of feedstock for biofuels and bioproducts and for carbon capture and wastewater bioremediation.

• The ASU project director is Gary William Dirks, LightWorks. • The project period is September 1, 2010 through August 31, 2010. • The obligated amount is $1,830,000 with a total anticipated funding amount of

$1,830,000 for the life of the project. • Matching or cost sharing is required. • Total amount of cost share is $2,000,000 and is being met by a 3rd party industry

partner. There is a $170,000 plant fund set up in relation to this award.

Continuation Awards

5. Continuation award from DOEd - U.S. Department of Education # U363A080114 • This new award will support the project entitled “URBAN-EXCEL”. • The Arizona Ready-for-Rigor Project, led by Arizona State University in

collaboration with the Arizona Department of Education and the National Institute for Excellence in Teaching, is a statewide network of schools in partner districts serving high-need students. The goals of the project include increasing student achievement, retaining highly effective educators and fostering exemplary school culture in the highest-need communities across Arizona.

• The ASU project director is Dale Scott Ridley, College of Teacher Education and Leadership.

• The project period is October 1, 2008 through September 30, 2013.



• The obligated amount is $2,005,766 with a total anticipated funding amount of $3,656,549 for the life of the project.

• Matching or cost sharing is not required. Recommendation to the Board:

It is recommended that the Board approve Arizona State University’s new and continuation awards in the proposed amount of $26,468,356 with a total anticipated funding amount of $48,536,714, as presented in this executive summary.

Board of Regents Meeting December 9-10, 2010 Item #30 EXECUTIVE SUMMARY Page 1 of 3

CONTACT INFORMATION: Dr. L.F. Huenneke, Vice President for Research (928) 523-4340 [email protected]

Item Name: Authorization to Approve Various New and Continuation Awards (NAU)


Statutory/Policy Requirements: Pursuant to ABOR Policy 3-203 (B) Research and Public Service Agreements,

ABOR approval is required for any new agreements in excess of $1 million and continuation of existing agreements involving more than $1.5 million.

Strategic Implications: Approval of these awards is critical to Northern Arizona University’s progress in

meeting the 2020 Silver goal of doubling research expenditures. The financial support received from these awards is essential to the university’s successful execution of its research, educational, and public service missions.

Continuation Awards

1. Continuation award from the University of Arizona,Y502677, for a project funded by the Arizona Early Childhood Development and Health Board (First Things First). - The award supports the project “First Things First” under project director Dr.

Larry Gallagher of the College of Education. - The objective is to provide a multi-focused evaluation of the First Things First

Initiative in collaboration with the University of Arizona and Arizona State University. NAU will conduct longitudinal, cross-sectional, and GIS studies of the services and impact of First Things First programs.

- The project period is January 1, 2009 through June 30, 2011. - The proposed amount is $1,082,541 for the period July 1, 2010 through June

30, 2011, for a total award of $1,844,461. - There is no required institutional cost share or matching.

Issue: Northern Arizona University requests Board approval for acceptance of new and continuing awards of grants and research contracts from various sponsors in the amount of $1,530,000, with anticipated total amount of $7,666,250 throughout the life of the projects.


2. Continuation award from the National Science Foundation, DGE-0549505.

- The award supports the project “IGERT: Integrative Biosciences: Genes to Environment Program” under project director Dr. Maribeth Watwood of the Department of Biological Sciences.

- The objective is to provide a graduate research and education program that addresses fundamental and applied questions of how ecosystems function and respond to environmental perturbation, working with scientists whose expertise spans molecular genetics to ecosystem sciences, to spatial and temporal modeling.

- The project period is July 1, 2008, through June 30, 2011. - The proposed amount is $601,873 for the period July 1, 2010 through June

30, 2011, for total to date of $2,869,440. - There is no required institutional cost share or matching.

3. Continuation award from the Corporation for National and Community

Service, 08SFWAZ003 - The award supports the project “NAU Foster Grandparents Program” under

project director Dr. Carole Mandino of the Civic Service Institute. - The objective is to recruit low-income senior volunteers aged 55+ to mentor

children with special needs throughout the State of Arizona. - The project period is July 1, 2008 through June 30, 2011. - The proposed amount is $580,613 for the period July 1, 2010 through June

30, 2011, for a total over the life of the project of $1,484,799. - There is required institutional cost share of $135,106.

4. Continuation award from the National Institutes of Health, 3R01DK082568-02S1 - The award supports the project “TsDM and Obesity in Mexican Pima Indians:

Gene-Environment Interactions” under project director Dr. Leslie Schulz of the College of Health and Human Services.

- This project is funded under the American Recovery and Reinvestment Act (ARRA) of 2009.

- The objective is to compare diabetes and obesity prevalence in two genetically related groups of Pima Indians living in different environments in Mexico.

- The project period is September 20, 2009 through August 31, 2011. - The proposed amount is $682,193 for the period September 1, 2010 through

August 31, 2011, for a total over the life of the project of $1,259,352. - There is no required institutional cost share or matching.


5. Continuation award from the U.S. Department of Energy, DE-FC02-06ER64159 - The award supports the project “Western Center for the National Institute of

Climatic Change Research,” under project director Dr. Bruce Hungate of the Department of Biological Sciences.

- The objective is to conduct research on climate change and the impacts of that change in the western region which encompasses thirteen western states including Hawaii and Alaska.

- The project period is December 1, 2005 through November 30, 2010. - The proposed amount is $1,712,851 for the period January 5, 2010 through

November 30, 2010, for a total over the life of the project of $8,925,668. - There is no institutional cost share.

6. Continuation award from the National Science Foundation, DGE-0742483

- The award supports the project “Biotechnology Integration Opportunities for Teacher Education and Content (BIOTEC),” under project director Dr. Catherine Ueckert of the Center for Science Teaching and Learning.

- The objective is to enhance inquiry-based science teaching while expanding the interdisciplinary preparation of graduate students in biotechnology. The innovative components of this program are the use of biotechnology as a means to add relevancy and interest in STEM concepts in K-12 classrooms, and the use of existing cyber-infrastructure to reach teachers and students in remote areas (specifically Navajo reservation schools).

- The project period is March 1, 2008 through February 29, 2012. - The proposed amount is $599,995 for the period July 20, 2010 through

February 29, 2012 for a total to date of $2,284,362 and an anticipated total over the life of the project of $2,884,359.

- There is no institutional cost share. Recommendation to the Board: It is recommended that the Board approve Northern Arizona University’s new and continuation awards in the proposed amount of $1,530,000 with a total anticipated funding amount of $7,666,250 throughout the life of the projects, as presented in this executive summary.

Board of Regents Meeting Date December 3-4, 2009 Item #31



Dr. Leslie P. Tolbert, Vice President for Research, Graduate Studies, and Economic Development, (520) 621-3513, [email protected].

Item Name: Authorization to Approval Various New and Continuation Awards (UA)

Action Item Discussion Item Information Item Statutory/Policy Requirements:

Pursuant to ABOR Policy 3-203 (B) Research and Public Service Agreements, ABOR approval is required for any new agreements in excess of $1 million and continuation of existing agreements involving more than $1.5 million

Strategic Implications:

Approval of these awards is critical to the continuation and enhancement of UA’s national leadership role in conducting ground-breaking research and providing top-ranking educational programs.

New Awards 1. New award from Health Resources and Services Administration, UB6HP20159

• This new award will support the project entitled “Public Health Training Center.” • The objective of this project is to increase the number and quality of trained public health

workers, to promote and support programmatic and public health policy changes and expand and strengthen partnerships to improve the public health infrastructure and health for all Arizonans.

• The UA project director is Dr. Douglas Taren, Health Promotion Sciences, College of Public Health.

• The project period is September 1, 2010, through August 31, 2015. • The proposed amount is $647,637 for the first year of the project with a total anticipated

funding amount of $3,236,045 for the life of the project. • Matching or cost sharing is not required.

Issue: The University of Arizona requests Board approval for acceptance of new and continuation awards of grants and research contracts from various sponsors in the amount of $15,311,981 with an anticipated total amount of $37,745,767 throughout the life of the projects.



2. New award from National Institute of Environmental Health Sciences, R01ES016578

• This new award will support the project entitled “Retinoid Mediated Protection Against Reactive Oxygen Species Induced Cytotoxicity.”

• The objective of this project is to enhance the understanding of retinoid mediated cytoprotection at the molecular and cellular level, which can provide insights into novel therapeutic strategies effective for clinical interventions during chemical induced tissue injury or hypoxia/ischemia-reperfusion injury.

• The UA project director is Dr. Serrine Lau, Pharmacology and Toxicology, College of Pharmacy.

• The project period is September 1, 2010, through April 30, 2015. • The proposed amount is $337,976 for the first year of the project with a total anticipated


3. New award from National Institute of Neurological Disorders and Stroke,

R01NS069572 • This new award will support the project entitled “Mechanism of Medication Overuse,

Headache and Chronic Migraine Pain.” • The objective of this project is to use the triptan-induced sensitized state to investigate

possible mechanisms underlying medication overuse and by which episodic headache pain may transform into chronic migraine (CM).

• The UA project director is Dr. Frank Porreca, Pharmacology, College of Medicine. • The project period is September 1, 2010, through July 31, 2015. • The proposed amount is $496,445 for the first year of the project with a total anticipated


4. New award from National Cancer Center, U01CA153086

• This new award will support the project entitled “Epigenetic Features of Pregnancy-Associated Breast Cancer in Hispanic Women.”

• The objective of this project is to elucidate possible mechanisms that play a role in pre-menopausal early onset of breast cancer (EOBC), particularly those mechanisms that are temporally related to a recent pregnancy in Hispanic women.

• The UA project director is Dr. Maria Martinez, Cancer Center Division, College of Medicine.

• The project period is September 17, 2010, through August 31, 2015. • The proposed amount is $321,936 for the first year of the project with a total anticipated




5. New award from National Heart, Lung, and Blood Institute, R01HL105280

• This new award will support the project entitled “Blocking Hypertension by Regulatory T-lymphocytes.”

• The objective of this project is to demonstrate that early or pre-hypertensive states are due to TH17/TH1 (T helper 17 cells / T helper cells – a sub group of lymphocytes) mediated alteration of the vascular matrix composition.

• The UA project director is Dr. Douglas Larson, Sarver Heart Center, College of Medicine.

• The project period is September 20, 2010, through June 30, 2014. • The proposed amount is $376,050 for the first year of the project with a total anticipated


6. New award from Jet Propulsion Laboratory, 1407200

• This new award will support the project entitled “Cassini Solstice.” • The objective of this project is to act in the capacity of a team leader for the Visual and

Infrared Mapping Spectrometer (VIMS) Team to perform research and provide deliverables for the Cassini Solstice Mission.

• The UA project director is Dr. Robert Brown, Lunar and Planetary Laboratory, College of Science.

• The project period is September 27, 2010, through September 26, 2012. • The proposed amount is $1,979,000 for the life of the project. • Matching or cost sharing is not required.

7. New award from National Institute of Diabetes and Digestive and Kidney Diseases,

R01HDK080801 • This new award will support the project entitled “Molecular Organization of the Organic

Cation-Proton Exchanger, (MATE1).” • The objective of this project is to establish models that accurately predict and, ideally,

preempt unwanted interactions of cationic drugs in both the kidney and liver. • The UA project director is Dr. Stephen Wright, Physiology, College of Medicine. • The project period is September 30, 2010, through July 31, 2015. • The proposed amount is $590,428 for the first year of the project with a total anticipated


8. New award from National Institute of Child Health and Human Development,

P41HD064559 • This new award will support the project entitled “GEISHA (Gallus Expression in Situ

Hybridization Analysis): A Chicken Embryo Expression Resource.” • The objective of this project is to enhance an important existing gene expression

resource for the chicken embryo, a recognized biomedical model of human disease. This study will generate information that will assist efforts across a wide variety of fields towards the identification of mechanisms underlying human diseases.



• The UA project director is Dr. Parker Antin, Cell Biology and Anatomy, College of Medicine.

• The project period is September 30, 2010, through July 31, 2015. • The proposed amount is $735,667 for the first year of the project with a total anticipated


9. New award from Centers for Disease Control, U90TP000405

• This new award will support the project entitled “Mountain Preparedness and Emergency Response Learning Center.”

• The objective of this project is to develop Mountain West Preparedness and Emergency Response Learning Center (MWPERLC), expanding the current Arizona Center for Public Health Preparedness to provide training in the intermountain west region.

• The UA project director is Dr. Jefferey Burgess, Community, Environment, and Policy; College of Public Health.

• The project period is October 1, 2010, through September 30, 2015. • The proposed amount is $937,657 for the first year of the project with a total anticipated


10. New award from United States Department of Education, P407A100036

• This new award will support the project entitled “Project Focus: Focused Opportunities With University and Community Supports Transition Programs for Students with Intellectual Disabilities into Higher Education.”

• The objective of this project is to design and implement a nationally recognized program that promotes the successful transition of students with intellectual disabilities, ages 18 to 21, into inclusive on-campus classes and associated environments.

• The UA project director is Dr. Stephanie McFarland, Disability and Psychoeducational Studies, College of Education.

• The project period is October 1, 2010, through September 30, 2015. • The proposed amount is $500,000 for the first year of the project with a total anticipated

funding amount of $2,499,999 for the life of the project. • Cost sharing in the amount of $975,743 is required for the life of the project.

11. New award from Hughes Research Laboratories

• This new award will support the project entitled “Theory and Implementation of a High Speed Robotic Cheetah.”

• The objective of this project is to construct the fastest, most agile and most energetically efficient legged robot ever conceived. This robot will be modeled on biological principles gained from the study of the Cheetah and other terrestrial mammals and will incorporate a biologically inspired neural controller. Results of this research will have an impact on a wide range of medical and military applications."

• The UA project director is Dr. M. Anthony Lewis, Electrical and Computer Engineering, College of Engineering.

• The project period is October 1, 2010, through September 30, 2014.



• The proposed amount is $2,600,000 for the life of the project. • Matching or cost sharing is not required.

12. New award from United States Geological Survey, G11AC90008

• This new award will support the project entitled “Southwest Climate Science Center.” • The objective of this project is to partner with the Department of the Interior in the

creation of the Southwest Climate Science Center (SWCSC) to provide an improved scientific basis for climate-related decision-making in the Southwest."

• The UA project director is Dr. Jonathan Overpeck, Institute of the Environment, Office of the Vice President for Research, Graduate Studies, and Economic Development.

• The project period is November 1, 2010, through October 30, 2015. • The proposed amount is $3,128,439 for the life of the project. • Matching or cost sharing is not required.

13. New award from National Cancer Institute • This new award will support the project entitled “Preventing Human Prostate Cancer

Metastasis by Laminin Binding Intergrins.” • The objective of this project is to block human prostate cancer from spreading to the

bones. • The UA project director is Dr. Anne Cress, Cancer Center, College of Medicine. • The project period is December 1, 2010, through November 30, 2015. • The proposed amount is $375,007 for the first year of the project with a total anticipated


Continuation Awards 14. Continuation award from Health Resources and Services Administration, U77HP03034

• This continuation award will support the project entitled “Model State-Supported AHEC (Arizona Area Health Education Centers) Program.”

• The objective of this project is to improve access to quality healthcare for Arizona’s rural and urban medically underserved communities.

• The UA project director is Dr. Sally Reel, Nursing Instruction, College of Nursing. • The project period is September 1, 2010, through August 31, 2012. • The proposed amount is $495,075 for the first year of the project with a total anticipated

funding amount of $1,629,641 for the life of the project. • Cost sharing in the amount of $1,629,641 is required for the life of the project.

15. Continuation award from General Services Administration

• This continuation award will support the project entitled “Asymmetric Threat Response and Analysis Program IV.”

• The objective of this project is to build upon the Asymmetric Threat Response and Analysis Program (ATRAP) that has been developed by the University of Arizona as an advanced data fusion and visualization environment that is intended to augment commanders’ situational awareness and decision-making capabilities. ATRAP IV will



enhance these extant capabilities, as well as introduce new game-theoretic decision modeling tools and machine learning algorithms, to maximize both usability and user adoption.

• The UA project director is Dr. Jerzy Rozenblit, Electrical and Computer Engineering, College of Engineering.

• The project period is January 1, 2011, through December 31, 2011. • The proposed amount is $1,790,664 for the life of the project. • Matching or cost sharing is not required.


It is recommended that the Board approve the University of Arizona’s new and continuation awards in the proposed amount of $15,311,981, with a total anticipated funding amount of $37,745,767, as presented in this executive summary.



Contact Information: Christine M. Thompson, 602.229.2520, [email protected] Katie Paquet, 602.229.2543, [email protected]

Item Name: Report from the Governance Committee


Issue: The Board will receive a report from Regent DeConcini on the December 8, 2010 Governance Committee meeting.

Discussion

• The Board will receive an oral report on the outcomes of the December 8, 2010 Governance Committee meeting. The main agenda item that will be discussed at the meeting concerns the Board’s annual assessments of Presidents.




Contact Information: Stephanie Jacobson [email protected] 602-229-2529

Item Name: Proposed Revision to ABOR Policy 2-203 “Academic Degree Program Planning and Implementation” (Second Reading)

Action Item Discussion Item Information Item Background • The Board is asked to review a revision to ABOR Policy 2-203 which would delegate

responsibility for approving each university’s annual Academic Strategic Plan to the Academic Affairs Committee.

• Through the Academic Strategic Plans, the universities are authorized to make changes to their academic program inventories (establish new programs and eliminate others) and academic units. Under the current policy, the Committee reviews the Plans and makes recommendations to the Board for approval.

• As proposed in the new Academic Affairs Committee charter, presented in a separate item, approval of the Academic Strategic Plans would be delegated to the Committee. The Board is asked to modify Board policy to support this change.

Statutory/Policy Requirements ABOR Policy 2-203, “Academic Degree Program Planning and Implementation” Recommendation to the Board It is recommended that the Board approve the proposed revisions to ABOR 2-203, “Academic Degree Program Planning and Implementation.”

Issue: The Board is asked to approve a revision to ABOR Policy 2-203 that

would delegate authority for approving Academic Strategic Plans to the Academic Affairs Committee.



2-203 Academic Degree Program Planning and Implementation

The establishment of any Academic Degree Program requires approval by the Academic Affairs Committee (“the Committee”) prior to announcement and implementation.

A. The Academic Strategic Plan

1. Annually each university shall present an academic strategic plan

to the Academic Affairs Committee for review and for recommendation to the full Board for approval.

2. The academic strategic plan shall define the key academic

initiatives planned by the institution and describe how they support both the university’s strategic plan and the strategic plan of the Arizona Board of Regents.

3. The academic strategic plan shall include an Academic Degree

Program Inventory of all academic degree programs that are expected to be planned, implemented, merged with other programs or eliminated in the upcoming year. The plan will also address the actions completed from the previous year’s plan, specifically addressing programs that have been implemented and are enrolling students.

B. Implementation

1. A university may implement any program listed on the approved

academic strategic plan that will not require additional state resources or a program fee for the initial three years of a new program.

2. An academic program that will require additional state resources or

a program fee to implement must be submitted to the Committee for approval prior to advertising the program and enrolling students.

3. After collective review by the Chief Academic Officers, a university

may request authorization from the Academic Affairs Committee to implement, merge or eliminate a program not listed on the academic strategic plan.



4. The implementation proposal shall address the criteria provided in

the implementation for new academic degree programs”, provided on the above website (www. azregents.edu/faculty), including:

a. Purpose of the program b. Relation to the university mission and strategic direction c. Defined learning outcomes and a description of how those

outcomes will be addressed d. The state’s need for the program, including student demand e. Analysis of similar programs offered in the state and region f. Expected faculty and resource requirements g. Financing and 3-year budget




Nancy Tribbensee 602-229-2510 [email protected]

Item Name: Proposed Revisions to ABOR Policies 1-120 “Equality of Opportunity,” 3-901 “Conflict of Interest,” 6-804 “Sick Leave,” and 6-810 “Furloughs” (Second Reading)


Background:

• The Board has replaced the Human Resources Committee as a standing committee of the Board with system level oversight by the Board President.

Discussion:

• Board policies 1-120 (Equality of Opportunity), 3-901 (Conflict of Interest), 6-804 (Sick Leave), and 6-810 (Furloughs) are updated to remove references to the Human Resources Committee and to provide for review by the Board President.


It is recommended that the Board approve the revisions to ABOR policies 1-120 “Equity of Opportunity,” 3-901 “Conflict of Interest,” 6-804 “Sick Leave,” and 6-810 “Furloughs” to reflect new committee and task force structures as set forth in this executive summary.

Issue: The Board is asked to approve revisions to ABOR Policies 1-120, 3-901, 6-804, and 6-810 to remove references to the Human Resources Committee.


Item #34 EXECUTIVE SUMMARY Page 2 of 4 1-120 Equality of Opportunity

…

B. Responsibility for Implementation of Policy

The BOARD PRESIDENT executive director of the Board and each university president have primary responsibility for the administration of this policy in carrying out this responsibility, these individuals, their vice presidents and other administrators will:

1. Publicly state their support for and commitment to fully complying with all laws relating to equality of opportunity and affirmative action in employment, educational programs, and other board or university programs and activities.

2. Periodically review and provide AN ANNUAL PERSONNEL REPORT AND OTHER INFORMATION AS REQUESTED TO data to the Board’s Human Resources Committee MEMBERS OF THE BOARD AND THE BOARD PRESIDENT on the statistical composition of their workforces. in an effort to achieve a comparable presentation of females and minorities in the relevant labor markets. If the workforce or job groups are underutilizing females and minorities in comparison with relevant labor markets, these individuals will establish and maintain proactive programs which comply with applicable laws.

3. Provide an environment that follows applicable law in fostering the advancement of females and minorities to higher level and non-traditional job opportunities.

…



I. CONFLICT OF INTEREST

3-901 Conflict of Interest

…

B. Conflict management for transactions involving transfer of technology to employees or regents.

1. Subject to board approval, a university may license or otherwise transfer board owned technology developed by a regent or employee of the board or a university to that regent or employee or to a private entity in which the regent or employee maintains a substantial interest.

2. Prior to board consideration of a proposed license or other agreement for approval:

a. The university must review the proposed terms with Board counsel and with the chair of the Human Resources Committee or a regent or regent(s) designated by the chair AT LEAST ONE REGENT to undertake the review. The review will fully describe the consideration (including monetary and, if applicable, non-monetary elements) for the license or transfer.

…


Item #34 EXECUTIVE SUMMARY Page 4 of 4 6-804 Sick Leave

…..

C. Subject to the approval of the chair of the Board’s Human Resources Committee and the Board’s executive director, BOARD PRESIDENT AND BOARD COUNSEL, universities and the Board central SYSTEM office may adopt policies to temporarily allow the limited advancement of sick leave to employees who have otherwise exhausted other forms of paid leave. Decisions to advance sick leave during periods of serious contagious illness, such as a pandemic, will consider public health benefits and continuance of institutional, instructional, research and service functions while minimizing disruption and delay that would otherwise be occasioned by an ill workforce.

…

6-810 Furloughs

1. The purpose of this policy is to provide an option for university presidents and the executive director to respond to severe budget constraints, including those that arise from substantial reductions in state appropriations, the occurrence of natural or physical disasters, terrorism, or a public health emergency.

2. A university president or executive director who wishes to implement or amend a furlough plan must first provide a copy of the furlough plan to and receive approval from the Human Resources Committee of the Board BOARD CHAIR AND BOARD PRESIDENT. Once approved by the Human Resources Committee, a university THE president or executive director may implement the furlough plan, in accordance with applicable law.

3. Under a furlough plan, categories of university and central office employees (which may include administrative, faculty, professional, and staff as determined by the university president or executive director) are required to take time off work without pay, which will effectively reduce the compensation of these employees during the fiscal years when the furlough plans are in effect

4. Employees shall not be required to work in their areas or perform official duties during a period of furlough.

…



Contact Information: Nancy Tribbensee 602-229-2510 [email protected]

Item Name: Proposed Revisions to ABOR Information Technology Policies 9-101 through 9-108 to Reflect New Tri-University Information Technology Council Responsibilities (Second Reading)


Background:

• The Board created the Technology Oversight Committee as a standing committee in response to a 2001 Auditor General Performance Audit, which recommended that the Board increase its oversight of information technology (IT) projects. Specifically, the audit recommended the Board increase its oversight over significant IT projects, including development costs, operating costs, alternatives, and benefits.

• Since its creation, the Technology Oversight Committee has advised the Board regarding IT projects and the development of detailed IT oversight policies. In addition, the Committee reviewed annual IT Expense Reports, IT Strategic Plans and became more involved in the universities information security planning and operations.

• Reflecting the need for substantive expertise in the ongoing oversight of complex IT projects in the university system, the Board has replaced the Technology Oversight Committee with a Tri-University Information Technology Council led by the Board President, with membership which includes the Chief Information Officers and Chief Financial Officers of the universities.

Discussion:

• The policy revisions described in this executive summary and set forth in the attached document amend Board policy to outline the responsibilities of this Council.

Issue: The Board is asked to approve revisions to ABOR Information Technology Policies 9-101 through 9-108 to Reflect New Tri-University Information Technology Council Responsibilities.


Item #35 EXECUTIVE SUMMARY Page 2 of 6 Committee Approval:

• The members of the Council have reviewed and recommend the attached policy revisions.


It is recommended that the Board approve the revisions to ABOR policies revisions to ABOR Information Technology Policies 9-101 through 9-108 to reflect new Tri-University Information Technology Council responsibilities.



CHAPTER IX – INFORMATION TECHNOLOGY

A. INFORMATION TECHNOLOGY PLANNING AND OVERSIGHT PROCESSES

9-101 TRI-UNIVERSITY INFORMATION TECHNOLOGY COUNCIL Arizona Board of Regents Technology Oversight Committee Charter (ATOC) A. The purpose of THIS COUNCILATOC is to provide oversight for major

Information Technology (IT) initiatives at the Arizona University System (AUS) campuses. This oversight involves reviewing and approving plans for major campus investments to ensure that they are effectively planned and managed and that they are aligned with major ABOR and university goals.

B. The focus of THIS COUNCILATOC will be to: 1. Guide, establish, and approve IT strategic plans, technology-based

standards, applications and services in support of future ABOR and University needs.

2. Operate as a forum for the discussion of major issues related to technology, collaborative applications and IT services.

3. Evaluate, approve and monitor significant systems development, collaborative projects and technology infrastructure expenditures AS SET FORTH BELOW.. in excess of $1 million.

4. Facilitate appropriate technology collaboration in support of ABOR’s mission and business goals.

5. Provide policy direction for the Arizona Universities Network (AZUN) and approve AZUN annual program budgets.

9-102 Definitions

Definitions for this Chapter are included in the ABOR Information Security Program Guidelines. These Guidelines may be amended as necessary by the ATOC BOARD PRESIDENT IN CONSULTATION WITH THE TRI-UNIVERSITY IT COUNCIL without the need for full Board review.

9-103 Tri-University Information Technology Architecture The universities will participate in the creation and development of a Tri-

University IT Architecture to guide the design, implementation, maintenance and organization of information technology management at each institution. The Tri-



University IT Architecture will be submitted to the ATOC TRI-UNIVERSITY IT COUNCIL for review and approval.

9-104 Information Technology Strategic Plans

A. University IT strategic plans should identify major initiatives and costs and should align with ABOR System and University five-year plans. These strategic plans should also take into account best practices, the Tri-University IT Architecture, and the ABOR Information Security Program Guidelines.

B. The plans should identify the current status of university IT initiatives and

plans for achieving future initiatives including quantitative goals, performance measures, benefits, costs, time frames, resources, sponsorship, and user involvement.

C. The IT Strategic Plans will be submitted to ATOC THE TRI-UNIVERSITY IT COUNCIL for review and approval.

D. IT strategic plans will follow a common format approved in advance by the ABOR Executive Director PRESIDENT.

9-105 Project Approval Process

A. IT project budget of $100K-$1M: 1. Requires approval of university president and CIO; 2. University must report status annually with the IT Strategic Plan.

B. IT project budget of $1M-$10M: 1. University must complete IT Project Justification Summary and

submit it for ATOC approval OF THE IT COUNCIL; 2. Prior ATOC IT COUNCIL approval is necessary before THE project

is initiated. 3. University must report status annually with the IT Strategic Plan or

quarterly at the ATOC’s IT COUNCIL’S request.

C. IT project budget over $10M: 1. University must submit complete AN IT Project Justification

Summary and submit it for ATOC REVIEW BY THE IT COUNCIL AND THEN REVIEW BY THE CAPITAL AND PROJECT FINANCE



COMMITTEE BEFORE SUBMISSION TO THE FULL BOARD FOR APPROVAL; review and recommendation to the Board;

2. Prior ATOC CAPITAL AND PROJECT FINANCE COMMITTEE review and Board approval is necessary before project is initiated.

3. University must report on project status to ATOC THE IT COUNCIL quarterly;

4. Project may be subject to external monitoring if required by ATOC THE CAPITAL AND PROJECT FINANCE COMMITTEE.

D. Project Justification Summaries should summarize the anticipated project budget for five years; projects may not be divided into smaller projects to affect the approval process.

E. The Board may retain independent consultants to monitor significant projects. All projects are subject to audit.

F. If a University president believes that an emergency situation requires immediate action, the president may contact the Chair of ATOC or THE Executive Director PRESIDENT of the Board to request either a special meeting of ATOC THE CAPITAL OR PROJECT FINANCE COMMITTEE or permission to take immediate action and submit a Project Justification Summary Sheet for ATOC CAPITAL AND PROJECT FINANCE COMMITTEE review and ATOC CAPITAL AND PROJECT FINANCE COMMITTEE or Board ratification at the next regularly scheduled meeting according to the preceding dollar thresholds.

9-106 Annual Reports Each university will provide an annual expense report to ATOC THE IT COUNCIL for capital, operations, and personnel expenses. The report will be provided to ATOC THE IT COUNCIL in a fall meeting to be determined by ATOC in a format approved by the Executive Director of the Board PRESIDENT and will reflect data for the prior year.

9-107 Budget Overrun Protocol If an IT project APPROVED BY THE IT COUNCIL over $1 million is anticipated to exceed the Board approved budget by 25% or $1 million dollars, whichever is less, the project must be resubmitted to the ATOC THE CAPITAL AND PROJECT FINANCE Committee for review and to ATOC THE CAPITAL AND PROJECT FINANCE COMMITTEE or the Board for approval according to the preceding dollar thresholds.


Item #35 EXECUTIVE SUMMARY Page 6 of 6 9-108 Regents’ IT Innovation Fund

The Regent’s IT Innovation Fund primarily supports central SYSTEM office and university collaborative IT projects. Requests for ATOC approval for the use of these funds are to be submitted TO on a form approved by the Executive Director of the Board PRESIDENT. Annual progress and expenditure reports for collaborative projects will be submitted to ATOC THE BOARD PRESIDENT at the same time as the IT annual reports.



Contact Information: Katie Paquet (602) 229-2543, [email protected]

Item Name: Approval of Regents Awards for Outstanding Service to Higher Education


Background In 1996, a Regents Award for Outstanding Service to Higher Education was established by the Arizona Board of Regents to provide special recognition for Arizona citizens and/or organizations that provide exceptional service to higher education in Arizona. Current and former Regents have contributed to a fund to cover the cost of designing, sculpting, and casting a suitable art object to present to recipients. The guidelines for the Award are listed below:

1. The Award is to be presented in recognition of outstanding service to a single Arizona university, more than one of the State’s universities, or higher education in general, by a member of the Arizona community. A recipient may be an individual, group, organization, or company.

2. Former Regents are not eligible to receive an Award.

3. Any current or former Regent may nominate an individual or organization to receive an Award. Nominations from other parties may be sent to current or former Regents for their consideration.

The Regents Award Selection Committee met on October 26, 2010, reviewed six nominations and unanimously recommends that the 2011 Regents Award be presented to Bruce and Robert Crozier, Stevie and Karl Eller, Stephen Evans and the Arizona Students’ Association. Upon Board approval, Arizona State University will host a celebratory event honoring the Award recipients. This event will be held in conjunction with the February 2011 Board meeting.

Issue: The Board is asked to approve the recommendations of the Regents

Award Selection Committee to present the 2011 Regents Awards to Bruce and Robert Crozier, Stevie and Karl Eller, Stephen Evans and the Arizona Students’ Association.



Bruce and Robert Crozier Bruce Crozier is the owner of Crozier & Corbett Realty, Inc. He founded the A. Bruce and Margaret Crozier Scholarship Endowment in memory of his wife, Margaret, to honor her service to NAU and the Flagstaff community. He has been a member of the NAU Foundation Board of Directors and a member of the Skyjacks. Robert (Bob) Crozier, during his nearly 40-year career with NAU, worked in the offices of Alumni Relations, Student Services, Career Services and the NAU Foundation. Bob has been instrumental in helping the university secure lifetime relationships with Flagstaff’s business and residential community, NAU alumni, statewide organizations and educational facilities, and legislative leaders. He has also been a consistently enthusiastic booster at athletic events and key alumni functions. He was recently appointed a Lifetime Member of the NAU Alumni Association National Board of Directors. Stevie and Karl Eller Mr. and Mrs. Eller have primarily devoted their support of higher education to the University of Arizona, from which they both graduated from in the 1950s. Their generosity of time and resources exemplifies what concerned and dedicated, private individuals can do to enhance higher education opportunities for residents across the state of Arizona. In particular, they have each dedicated time, leadership and personal resources to benefit students who come to the University of Arizona to hone their entrepreneurial business skills, as well as their skills in the performing arts through the Eller School of Management and the Stevie Eller Dance Theatre. Stephen Evans Mr. Evans has been a supporter of higher education for more than a quarter of a century. His selfless commitment of time, leadership, and philanthropy is transforming the educational landscape in Arizona and strengthening the connection between higher education and the economic and social progress of our state. Mr. Evans is one of Arizona’s leading business executives, and in 1998 he was inducted to the W.P. Carey School’s Hall of Fame, and, in 2005, he received the School’s Distinguished Achievement Award in recognition of his acumen, leadership and success. Today, Mr. Evans generously shares his wealth of expertise and experience with Arizona State University, its business students and the community as a member of the W.P. Carey Advisory Board – Division of Real Estate, the Dean’s Council of 100 and as a director of the ASU Foundation.



Arizona Students’ Association For more than 35 years, ASA has advocated on behalf of current and future Arizona university students and supported higher education throughout the state. Recently, ASA has actively supported and coordinated efforts to help pass Proposition 100 – the one-cent sales tax initiative benefitting education. There are few organizations that have had the same time-tested commitment to the university system, its mission and its students. ASA has and continues to leave an indelible mark on Arizona’s higher education system. Recommendation to the Board It is recommended that the Board approve the recommendations of the 2011 Regents Award Selection Committee that Bruce and Robert Crozier, Stevie and Karl Eller, Stephen Evans and the Arizona Students’ Association be presented with the 2011 Regents Award for Outstanding Service to Higher Education, as presented in this Executive Summary.

abor mission - Arizona Board of Regents

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