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May 18, 2007

President Jischke provides update on Purdue's strategic plan

Good morning.

Throughout my time as president of Purdue, I have taken this opportunity at the beginning of your meetings to update you on issues relating to the university and events taking place. This morning I would like to expand on that.

Today and your meetings July 5 and 6 are the last scheduled board meetings in my term as president of Purdue University.

This has been the most exciting, rewarding seven years of my professional career. I have enjoyed every moment of it. I have greatly enjoyed working with you.

This board and the great working relationship among the board members is one of the major reasons Patty and I came to Purdue in the year 2000. It is one of the major reasons for the great success Purdue has enjoyed.

In November of 2001 this board approved strategic plans for Purdue. Every November since, we have given the board a progress report on the plans.

Our strategic plans and our Campaign for Purdue will end June 30. So this morning, I would like to give you a preliminary final report on our strategic plan progress, knowing that some numbers have not yet been compiled for our final year.

Even before I was recruited to Purdue, this board of trustees determined that the university was in good shape - excellent in many regards. You also concluded that business as usual was not what Purdue or the state of Indiana needed.

You decided the time was right to take Purdue to the next level. And to achieve that next level of excellence Purdue was going to have to think more strategically and take charge of its future.

I came to Purdue specifically to lead the university community in this process.

In drafting our plans, we benchmarked Purdue with 11 nationally prominent, public universities. We learned a great deal about ourselves and about our competitive environment.

We learned that we needed more faculty.

We learned that our research activity, while growing, was not keeping pace with peers.

We learned our faculty salaries were not competitive and we risked losing talented people.

We learned our infrastructure needed modernization.

We learned we needed to do more in economic development for our state.

We learned there was growing competition in our signature areas, and, if we didn't move quickly, we would be left behind.

Finally, we learned that Purdue was underfunded, relative to our peers.

Our strategic plan goal at Purdue was to become a preeminent university, a world leader.

We recognized we could not be all things to all people. We had to choose our priorities wisely. To realize our aspirations, we identified seven key areas in which to invest our resources:

First, we would add 300 new faculty members.

Second, we would expand our engagement efforts with Indiana, focusing on economic development.

Third, we would increase the diversity of our campuses.

Fourth, we would expand scholarships and financial aid.

Fifth, we would offer competitive salaries to recruit and retain the best faculty and staff.

Sixth, we would invest more than three-quarters of a billion dollars in the modernization and expansion of our infrastructure.

And seventh, we would invest in programs to expand our research capacity in interdisciplinary initiatives aligned with the needs of Indiana.

We knew this could not come free. A very important part of strategic planning is determining the cost of plans and revenue sources.

To help pay for our plans, we launched a private fund drive called the Campaign for Purdue.

When we started this, we set our goal at $1.3 billion. In fact, the response to our campaign was so great, in 2004 we raised our goal to an even more challenging level — $1.5 billion.

Now with a month, 13 days, a couple hours, minutes and seconds still left in our campaign, we have raised $1.65 billion. It is an incredible accomplishment, and thanks and congratulations to everyone involved.

You remember when we started, we broke the campaign down into five areas: student support, faculty support, facilities, programs and unrestricted funds.

You can see here that we have raised more than 100 percent of our goal in four categories. We have raised 92 percent of our goal in facilities.

This is an incredible accomplishment for a campaign that some people at the beginning believed was too aggressive for Purdue.

The Campaign will continue until the end of June, as planned. We want to discover just how far we can go. And we still need to raise more money for facilities to meet our objective in that area.

So even now, this is not a time to rest. It's time to keep moving forward.

We have five more buildings we are still working to accomplish: the Wayne and Mary Hockmeyer structural biology building, the Seng-Liang Wang Hall of Electrical and Computer Engineering, the Niswonger building for aviation technology, Hanley Hall for our Human Development Institute, and Marriott Hall for Hospitality and Tourism Management.

Additional revenue for our strategic plans has come from other sources, including a $1,000 tuition increase and at least a 2 percent reallocation of budgeted general funds each year.

When we started these plans, we were very careful to state where all of the money would be invested. In reports to the board every year, we have shown that the money was invested as we promised.

Our plans have initiatives in learning, discovery and engagement, as well as compensation and overarching efforts.

You can see here the total allocated in the six years of our plans is $273 million. The largest part of this is compensation at $96 million. Overarching initiatives received the second-largest share at $62 million, followed by learning, then discovery and finally engagement.

Though all aspects of our Plans are equally important, learning remains job number one on this campus. The student tuition increase was invested in areas that have immediate impact on students, such as recruiting and keeping top faculty.

The only aspect of our plans that did not go as anticipated was funding from the state. Our plans were based on the premise that our state would continue its support of Purdue, at least staying up with inflation.

As you can see, funding has remained virtually flat throughout my years at Purdue. Meanwhile, inflation measured by the Consumer Price Index and the Higher Education Price Index has continued to rise.

Since 2000, the Consumer Price Index has gone up 17.6 percent. The Higher Education Price Index, which is a more accurate measure of our costs, has gone up 27.9 percent.

State support for our peer institutions also dropped, but they rebounded ahead of us and we continue to lag behind.

Our state considers Purdue West Lafayette a mature campus. It is not funding undergraduate enrollment growth in West Lafayette.

In line with this, our undergraduate enrollment has remained steady. The 31,290 undergraduates on our campus this year is only 391 more than in 2000 when I arrived. Meanwhile, the professional and graduate student numbers have increased.

This is the area where Purdue West Lafayette is looking for growth. The 7,023 graduate students this year amount to a 15 percent growth from 2000. Professional enrollment, which is deliberately limited due to program criteria, has grown 7 percent.

I believe this is excellent progress.

Student diversity has grown every year of our strategic plans.

In 2000, when I arrived, total domestic diversity was 10.4 percent on our West Lafayette campus. Today it is 13.3 percent of a larger enrollment.

Our undergraduate domestic minority numbers have grown from 9.7 percent to 13.1 percent. Our international student numbers have grown from 4,458 in 2000 to 4,824 this year.

Though we are down from our peak year in 2003, we believe the trend is again turning upward. The drop in international enrollment was experienced nationally and had a great deal to do with the worldwide perception of the United States, as well as more restrictive visa application processes.

Purdue ranks third in the United States for the number of international students. Southern California, a private university, is number one. The University of Illinois ranks number two.

SAT scores for our incoming freshman classes are up 13 points from seven years ago.

Following a national trend, the average SAT score of 1142 this year represents a decrease of eight points from the previous year. This is due to a change in the examination. The national average is now 1021 and Indiana's average is 1007.

Purdue SAT scores are 40 points higher than eight years ago in 1999. That is a sea change.

Another point of interest here is the size of our freshman class. Our graduation rates have increased and are, in fact, at record levels. This results in larger freshman classes.

Our freshman class this year is 11 percent larger than in 2000. At the same time, the average SAT score is up. Applications to Purdue are up and the quality of applicants being accepted is up.

We have received more than 27,600 applications for next fall.

This year's freshman class includes 85 National Merit Scholars and 205 high school valedictorians.

We are also offering our students more academic opportunities. Seven new academic programs have been started in West Lafayette since 2001.

This is another impact of our strategic plans and strategic investments on Purdue.

Student financial aid and scholarship has increased every year of our strategic plans.

Total student financial aid at Purdue West Lafayette this academic year is estimated at $433 million. This is an increase of 66 percent from 2000-01.

This is an incredible response to the needs of our students.

Seventy-nine percent of Purdue West Lafayette students this year receive some form of assistance. Most of this aid is need-based.

Systemwide, our total financial aid program last year was $524 million. This year it is estimated at $551 million.

Growth and popularity of learning communities and programs such as Boiler Gold Rush are boosting student retention and graduation rates. The most recent six-year graduation rate is the highest ever recorded at Purdue.

This six-year rate of 72 percent is 8 percentage points higher than 1995. The five-year graduation rate is up 7 percent from 1995. And the four-year graduation rate is up 8 percent. Our first-year retention rate is 86 percent, a record high.

I believe this is incredible progress in a very short period of time.

Ninety-two percent of our graduates are studying for advanced degrees or have found employment within one year of graduation. And a large number of our graduates remain in Indiana.

Overall, about 52 percent remain in the state after graduation, about the same number as 2001. But if you look at students who were Indiana residents when they enrolled, the picture changes. Eighty percent of our students who graduated high school in Indiana remain in Indiana after graduating from Purdue West Lafayette. That is up 4.5 percent from 2001.

Intercollegiate athletics is a very important part of our campus environment. Our focus is on victories in competition and victories for our student-athletes in the classroom.

The graduation rate for student-athletes last year was 69 percent. That is three points higher than the all-campus average.

Here is another very interesting statistic.

Our students athletes have maintained a higher grade point average than the overall student body the entire time I have been at Purdue. It is now 2.97, getting very close to a 3.0.

Our strategic plans call for hiring 300 new faculty. To date, we have hired 265 strategic plan faculty and we will reach 300 by fall. I know of no other university growing its faculty at this rate over the past seven years.

At the same time, we are in a period of high faculty turnover. A number of our professors are retiring and some leave for other reasons.

We have hired a total of almost 800 new faculty since I arrived at Purdue. That is 43 percent of our total faculty. We are literally changing the face of this university.

In 2000, when I arrived, we had 1,694 tenure/tenure-track faculty. This year the number is 1,832. That is a 7 percent increase.

A number of faculty positions are in the process of being filled. Our student-to-faculty ratio has gone from 15.7 in 2000 to 14.2 today.

We continue to make progress with faculty diversity.

From the 2001-02 academic year through September of 2006, 57 percent of our faculty hires have been women and/or minorities. This includes 63 percent of our strategic plan hires.

Since the start of our strategic plans, we have hired 247 minority faculty members. The single largest group is Asians. The second-largest is African-Americans. We are also having success hiring faculty from other underrepresented groups.

Our expectation is that these numbers will continue to rise throughout this academic year and beyond.

Faculty diversity has grown from 13.3 percent in 2000 to 19.7 percent this year. This is a sea change.

Diversity for non-tenure-track faculty, lecturers and postdoctoral students has gone from 32.6 percent to 38.6 percent. Diversity in all other areas has grown from 20.5 percent to 22.9 percent. Total faculty and staff diversity is at 23.4 percent, up from 20.1 percent in 2000.

As we reported to the board in detail last month, we have made substantial progress in diversity. But more work needs to be done.

Efforts now under way in the Office of the Provost and the Executive Vice President and Treasurer should have a very positive impact on diversity in the years ahead.

One of the ways we are working to attract and keep great faculty is through named and distinguished professorships. This has become a regular and very popular part of your meetings.

We have doubled the number of named and distinguished faculty since 2000, from 66 to 132 as of April. With those on your agenda today, the total is 137.

As of today we will have more than doubled the number.

At the same time, our efforts to improve faculty salaries compared with our peers has been a difficult area with limited state funding. You will hear more about this in a detailed governance report later today.

Our research enterprise is growing dramatically.

In academic year 1999-2000 — the year before I arrived — research awards at Purdue West Lafayette totaled $119 million. By 2004-05, with our strategic plans well under way, we had doubled that. Our research awards reached $240 million that year.

Last year, our research and total sponsored program extramural awards dropped. But this year we are on a record-setting pace. Our total sponsored program awards through March of this year totaled $211 million. That is $32 million more than last year at the same time.

We are on a pace where we could reach a record $300 million in sponsored programs this year. In fact, $300 million is our target for this year.

In 2000, 49.3 percent of our faculty received awards. The average award per faculty member receiving awards was $89,000.

Today, 59.2 percent of our larger faculty receive awards. The average is $200,469.

The average award has more than doubled in seven years. This is phenomenal growth, and it shows not only the strength and quality of our faculty, but their enthusiasm for what is taking place at Purdue.

The Purdue Research Foundation is positioned for continued growth and development thanks to the success of our strategic plans. Consider just a few of our accomplishments these past seven years:

* September, 2002 - A partnership among Purdue, the Purdue Research Foundation and the city of West Lafayette was announced for a $2.2 million development of 50 acres in the Purdue Research Park.

* October, 2002 - Construction officially began in Merrillville on the Purdue Technology Center of Northwest Indiana. In January 2005, the facility opened and now houses 18 clients.

* May, 2003 - the Purdue Research Park was designated as the state's first Certified Technology Park.

* April, 2004 - The university and Purdue Research Foundation partnered to help INTECH Park become Indianapolis' second state-certified technology park.

* September, 2004 – the Purdue Research Park was named the best in the country by the Association of University Research Parks.

* November, 2005 - The Association of University Research Parks recognized Purdue Research Park for Excellence in Technology Transfer.

* February, 2007 - The Purdue Research Foundation board of directors approved plans to add a $14.5 million, 113,000-square-foot facility to the Purdue Research Park's incubation complex.

* 2006 was a record-breaking year for startup companies formed from Purdue University-licensed technologies. Fourteen companies were launched that year based on Purdue researchers' innovations in the fields of medical devices, life sciences, information technology, agriculture, advanced manufacturing, telecommunications and engineering design.

* March, 2007 - Purdue broke ground on a new child-care facility to open at Purdue Research Park in August 2007.

Our investments in physical facilities have changed the face of this university. Since the launch of our strategic plans in 2001, $786 million in new and remodeled facilities have been completed or are now in progress, or planning.

Our strategic plans and Campaign for Purdue in West Lafayette have resulted in the Beck Agricultural Center, the Belin Volleyball Court, the Bindley Bioscience Center, the Biomedical Engineering Building, the Birck Nanotechnology Center, the Blake Wrestling Training Center, the Boilermaker statue, the Burton D. Morgan Center for Entrepreneurship, the Chao Center for Industrial Pharmacy & Contract Manufacturing, the Class of '53 Purdue Memorial Union South Lawn, the classes of 1958-59 Gateway to the Stadium Mall, the Class of '79 High Ropes Course, the Crew Club Boathouse facility, the CVS Pharmacy Practice Laboratory, the David C. Pfendler Hall of Agriculture, the Dennis J. and Mary Lou Schwartz Tennis Center, the Dick and Sandy Dauch Alumni Center, Forney Hall of Chemical Engineering, the Fred and Mary Ford Food Court, the Gerald D. and Edna E. Mann Hall, the Hageman Student Achievement Center in agriculture, the IPFW Music and Performing Arts Center, the IPFW residence halls, Jerry S. Rawls Hall, the Lambert Baseball Field renovation, the Libraries Archives and Special Collections, the Linda and William Fleischhauer Radiation Therapy Facility, the Mackey Arena video board, the  Mollenkopf Schleicher Field renovation, the Purdue Calumet residence halls, the Purdue Technology Center of Northwest Indiana, the Richard and Patricia Lawson Computer Science Building, the Robert L. and Terry L. Bowen Laboratory for Large-Scale Civil Engineering Research, the Roger B. Gatewood Wing of the Mechanical Engineering Building, the Ross-Ade Stadium renovation, the Tom Spurgeon Golf Training Center, and Yue-Kong Pao Hall of Visual and Performing Arts.

Our $53 million Neil Armstrong Hall of Engineering will open next fall. A $10 million Discovery Learning Center is in progress.

Phased renovations at Cary Quad are complete, and a similar $53 million refurbishing is under way in Windsor Halls. University dining facilities are undergoing a $48 million makeover that is melding 11 cafeteria operations into five major dining courts. In another multi-year renovation project, all residence halls are getting sprinkler systems and air conditioning. Since July of 2000, repair and rehabilitation expenditures by Housing and Food Services exceed $151 million.

Discovery Park has transformed Purdue.

Through the course of our strategic plans, it has grown from an idea to a $350 million interdisciplinary research, learning and engagement complex. One thousand Purdue faculty have taken part in Discovery Park along with thousands of students.

Sponsored research funding at Discovery Park now totals $208.5 million. There are now 10  interdisciplinary centers in Discovery Park.

Again, I know of no other university in the nation that has developed a complex comparable to Discovery Park over the past six years.

Just this spring we had one of the most exciting announcements in the history of Purdue.

The Alfred Mann Foundation for Biomedical Engineering, in California, is funding an Alfred Mann Institute at Purdue University with an incredible endowment commitment of $100 million. This is the largest single endowment gift ever in the history of Purdue.

This university-based institute in Discovery Park will enable the commercialization of innovative biomedical technologies that improve human health and life.

Through the Purdue Alfred Mann Institute for Biomedical Development, we are creating a new model of university technology transfer for the 21st century. This institute will speed our best discoveries out of the laboratories and into the marketplace, where they can improve lives and bolster our economy.

What we are accomplishing at Purdue today will set a new vision and standard for higher education in the 21st century.

Our strategic plans and Campaign for Purdue positioned us to win this institute.

Our strategic plans have helped us launch a new concept for 21st century land-grant university engagement.

It is one in which every college, school and program at Purdue works to use its learning and discovery capacities for our state. Engagement accomplishments of the strategic plan include:

* August, 2001 - The Office of Engagement is created as part of Purdue's statewide efforts to address economic development.

* February, 2002 - We announced a partnership with Indianapolis Public Schools to form Science Bound, a program that mentors eighth- through 12th-grade IPS students, encouraging them to enroll in classes and pursue careers in science, engineering, technology and math/science education. IPS students who complete the five-year program and gain acceptance to Purdue receive a full-tuition scholarship for eight semesters. Thirty seniors in the program have been accepted at Purdue for next fall, the other two will enroll in other educational opportunities. Science Bound is an unqualified success.

* September, 2002 - We launched a series of daylong visits to communities in Indiana as part of the university's commitment to engaging the state's citizens.

* May, 2006 - A gift of 40 acres in New Albany enabled Purdue, in cooperation with Indiana University Southeast, to open a new technology park and expand Purdue's College of Technology academic programs in New Albany.

* August, 2006 - The Richard G. Lugar-Purdue Summit on Energy Security calls together leaders nationwide to work toward a strategy to reduce American dependence on imported oil, with an emphasis on policy and alternative fuels.

To summarize:

We said we would build more than three-quarters of a billion dollars in new facilities. We did it.

We said we would add new faculty. We did it.

We said we would step up efforts to recruit and keep top faculty for our students and state. We did it.

We said we would increase our research program. We doubled it.

We said we would increase student financial aid and scholarships. We increased it 66 percent in six years.

We said we would increase diversity. We did it.   Diversity is at record levels. The number of African-Americans in our freshman class this fall is 30.4 percent higher than five years ago.

We said we would increase engagement with our state. We did it. Purdue is now perceived around Indiana and the nation as a leader in university engagement, especially when it comes to K-12 education and economic development.

We said we would launch interdisciplinary, cutting-edge research that would impact our state. We did it.

At Purdue today, we are receiving record numbers of applications for admissions. We are enrolling the academically best-prepared classes in our history.             Study abroad and internships are up. Our graduation rate at Purdue is at its highest point in history.

A Purdue education has never been better. A Purdue degree has never been worth more.

We said when we started our strategic plans and Campaign for Purdue that we would transform Purdue into an even more world-renowned university.

We did it, and more.

Strategic plans at our regional campuses have also succeeded.

At IPFW full-time student enrollments have grown by 33 percent. Support for first-year students has been expanded with the creation of a First Year Experience program in the Center for Academic Support and Advancement.

Six new bachelor's programs have been established, along with three new master's programs. Three more master's programs have received trustee approval and are awaiting action by the Commission for Higher Education.

Faculty development programs have been enhanced with the establishment of the Center for the Enhancement of Learning and Teaching.

IPFW's role in economic development has become a hallmark, most notably through the establishment of the Northeast Indiana Innovation Center, a series of research Centers of Excellence and participation in area economic development organizations.

At Purdue North Central, strategic plan accomplishments include:

* Expansion of the Purdue North Central-Porter County site — two buildings housing both graduate and undergraduate offerings.

* A public-private partnership between Purdue North Central, the Purdue School of Veterinary Medicine and a group of area veterinarians creating the North Central Veterinary Emergency Clinic.

* Campus autonomy that was granted by the trustees on February 3, 2006.

* The addition of seven new baccalaureate degrees and the MBA degree.

* Economic development partnerships in LaPorte, Porter and Starke counties.

* Development and implementation of the Purdue North Central College Bound Program in both Michigan City and LaPorte Schools.

At Purdue Calumet our strategic plans led to creation of the Purdue Technology Center Northwest and the Academic Learning Center in Merrillville.

Other strategic plan accomplishments include: experiential education courses are now a graduation requirement, additional internship experiences, on-campus housing, eight new academic programs, creation of programs supporting student retention and success, and an increase in scholarship funding.

Strategic plans at IUPUI have also resulted in more opportunities for our students. We have expanded our partnerships with Indiana University focused on research, learning and engagement.

Thank you to this board for everything you have done to make all of this possible. Your leadership —your vision — has been the key.

I believe we have succeeded enormously in what we set out to do. We have accomplished a great deal together. Even more will be done in the years ahead.

It is my hope that the legacy of these nearly seven years is that we have positioned Purdue to reach even further for its heightened promise.

My hope is that the legacy of our work is a university that is a world-class international community of research, learning and understanding, impacting education and economic development in our state and far beyond.

This has been the opportunity of a lifetime for all of us. Thanks to each one of you.

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