Arizona State University

Strategic Enterprise Plan:2018 Update & Operational and Financial Review

Arizona Board of Regents

February 9, 2018

The ASU Enterprise Plan is one which has

transformed an institution that is critical to

the success of the region and the State.

The Enterprise Plan will continue to drive

ASU’s capability to improve its performance

and meet its metric targets.

1

Underperforming Public Agency Model

ASU in 1985

$8,755*per FTE student

High State Investment

$238 millionNo Budget for Improvement

13.8% four-year graduation rate

Inadequate Student Outcomes

* = 2017 Dollars

2

Underperforming Public Agency Model

ASU in 1985

$2,577*

<2%

Low Price and Low Aid

84.9% White

Low Freshman Diversity

9.9% underrepresented minority

$28 millionin annual research expenditures

Small Contribution

to Knowledge Generationresident undergraduate

tuition and fees

undergraduates received

Pell Grants

* = 2017 Dollars

3

Performing Public Agency Model

ASU in 2002

$9,230*per FTE student

High State Investment

28.4% four-year graduation rate

Improving Student Outcomes

$750 millionBudget for Growth and Quality

* = 2017 Dollars

4

Performing Public Agency Model

ASU in 2002

$3,527*

22%

Medium Price and Medium Aid

71.2% White

Medium Freshman Class Diversity

17.2% underrepresented minority

$123 millionin annual research expenditures

Growing Contribution

to Knowledge Generationresident undergraduate

tuition and fees

undergraduates received

Pell Grants

* = 2017 Dollars

5

Established Public Enterprise Model

ASU in 2018

$3,141 per FTE student

Low State Investment

51.6% four-year graduation rate

High Student Outcomes

70.7% for A-students and 46.0% for B-students

$3.1 billionBudget for Consistent Growth and Quality

6

Established Public Enterprise Model

ASU in 2018

$10,792

34.2%

Medium Price and High Aid

50% White

High Freshman Class Diversity

35.2% underrepresented minority

$545 million in annual research expenditures

Large Contribution

to Knowledge Generationresident undergraduate

tuition and fees

undergraduates received

Pell Grants

7

8

ASU is a comprehensive public research

university, measured not by whom it

excludes, but by whom it includes and how

they succeed; advancing research and

discovery of public value; and assuming

fundamental responsibility for the

economic, social, cultural, and overall

health of the communities it serves.

ASU Charter

The charter is a promise to the citizens of Arizona.

ASU has a responsibility to fulfill the requirements of the Arizona

Constitution to provide public education.

The responsibility is not one that is conditional upon the actions

of the legislature; it is ASU’s responsibility to find the means to

fulfill its charter while seeking appropriate and fair public

investment in the costs of education for Arizona resident

students.

Responsibility and The Public Trust

9

10

US and Arizona Population by Race/Ethnicity, 2016

0%

10%

20%

30%

40%

50%

60%

70%

Black American Indian Asian Hispanic Other Pacific Islander White

Source: Table B03002, American

Community Survey, US Census Bureau

United StatesArizona

The current age demographics make it clear that there will soon be no

majority race in the traditional college-age population. Arizona is further

along with this trend than the country as a whole.

Arizona’s changing demographics

drive ASU’s planning

11

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100+

Year of Age Data: Table PEPALL5N, American

Community Survey, US Census Bureau

American Indian

Asian

Black

Hispanic

White

US Population by Race/Ethnicity, 2016

Arizona’s changing demographics

drive ASU’s planning

Source: Table S1901, American Community Survey, US Census Bureau. Nominal data.

12

$40,000

$42,000

$44,000

$46,000

$48,000

$50,000

$52,000

$54,000

$56,000

$58,000

$60,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

United States

Arizona

Arizona household income began lagging behind that of the country as a whole during the

recession and has not recovered. Because the access mission remains paramount, financial aid

becomes even more critical and this places an extra burden on ASU’s finances.

United States and Arizona Median

Household Income 2005-2016

13

$2,684

$2,913

$4,626

$4,949

$5,727 $5,632$6,201

$6,476

$7,175$6,779

$5,967$6,334

$7,976

$5,902

$4,134 $4,307$3,338

$3,208

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

State Investment per FTE Student

Nominal dollars not adjusted for inflation

ASU is addressing these challenges with state

investment well below the levels of the 1980’s

$12,246

$14,739

$17,496

$20,989

$24,206$25,400

$24,144

$25,549$27,058

$29,234$28,301

$24,895

$27,606

$33,431

$23,807

$16,624$16,647

$13,204

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

State Investment per Degree Awarded

Nominal dollars not adjusted for inflation

ASU is addressing these challenges with state

investment well below the levels of the 1980’s

14

15

79.5%

13,784

67,082

55.8%

11,229

4,381

$53,298

3,995

$281.6M

49

$43.1M

5,127

Freshman Retention Rate 90.0%

Undergraduate Enrollment 98,200

Graduate Enrollment26,805

Total Enrollment125,005

6-year Graduation Rate75.0%

Bachelor's Degrees Awarded21,430

Graduate Degrees Awarded10,670

Education & Related Expenses perdegree$63,918

AZ CC Transfers Awarded Bachelor'sDegree 5,346

Research Activity$815.0 million

Licenses & Options Executed100

Public Service Activity$50.6 million

Degrees in High Demand Fields15,071

ASU’s performance at the time that the metrics were

established was already improving, but needed to be

enhanced rapidly to achieve its targets.

53,298

2008 Performance

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2008-09actual

2012-13actual

2016-17actual

2020-21metric

2024-25metric

Share of Total Enrollment

ASU UA NAU

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2008-09actual

2012-13actual

2016-17actual

2020-21metric

2024-25metric

Share of High Demand Degrees

ASU UA NAU

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

2008-09actual

2012-13actual

2015-16actual

2020-21metric

2024-25metric

$ m

illio

ns

Research Expenditures

ASU UA NAU

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2008-09actual

2012-13actual

2016-17actual

2020-21metric

2024-25metric

Share of Total Degrees

ASU UA NAU

The 2025 metrics require ASU to increase its proportional share of performance

16

72.2%

78.1%

81.2%

78.5%

75.5%

80.5%

85.2%

81.1%

60.0% 65.0% 70.0% 75.0% 80.0% 85.0%

NAU

UA

ASU

ABOR

First-Year Retention Rate Changes

50.0%

58.4%

55.8%

56.0%

53.3%

59.9%

67.0%

61.5%

40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0%

NAU

UA

ASU

ABOR

Six-Year Graduation Rate Changes

17

Arizona Public Universities

Freshman Cohorts 2009-10 vs. 2016-17

2016-2017

2016-2017

2016-2017

2016-2017

2016-2017

2016-2017

2016-2017

2016-2017

2009-2010

2009-2010

2009-2010

2009-2010

2009-2010

2009-2010

2009-2010

2009-2010

18

2016 actual = 996,375 adults aged 20-65 with four-year degrees

2025 goal = 1,300,000? (there are many ways to calculate the goal)

Achieve60AZ Degree Attainment Challenges

ABOR metrics will result in 400,000 new degrees by 2025

but there may still be a 200,000 degree shortfall

19

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

ASU = $65,447

Median = $81,109

PAC-12 schools shown in yellow source: IPEDS

ASU's uses 19.5% fewer resources per degree awarded than the

national median. At current levels of degree production, the

difference in costs ($343M) is $50M more than the FY16 state

appropriation.

Tuition and State Appropriation per Degree Awarded

in FY2016 Public Very High Research Universities

UC

Berk

ele

y

UC

LA

U o

f W

ash

ing

ton

U o

f A

rizo

na

Uta

h

Co

lora

do

Ore

go

n S

tate

U o

f O

reg

on

Wash

ing

ton

Sta

te

20

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Ru

tge

rs

UC

Be

rke

ley

Ge

org

ia T

ech

Pu

rdu

e

Ne

bra

ska

NC

Sta

te

UC

San

ta C

ruz

Ind

ian

a

Um

ass

Ge

org

ia

VP

I

Mar

ylan

d

Texa

s A

&M

UC

San

ta B

arb

ara

LSU

Cle

mso

n

Co

lora

do

Ore

gon

Sta

te

KSU

Ore

gon

Iow

a St

ate

WSU

Texa

s Te

ch

Okl

aho

ma

ASU

Ark

ansa

s

Alb

any

UI u

rban

a

GSU

Ho

ust

on

UT

-Au

stin

CSU

UW

-Milw

auke

e

UT

- D

alla

s

Ge

org

e M

aso

n

No

rth

Te

xas

UT

-Arl

ingt

on

Median

ASU

ASU's use of resources per degree is 11% below the median for

universities without medical schools. Its research activity is almost

four times greater than the median of the lower cost schools, and 1.5

times the median of the higher cost schools.

PAC-12 schools shown in Gold

Tuition, Fees, and State Appropriations per Degree

Awarded Very High Research Public Universities

without Medical Schools IPEDS FY2016

21

FY12 FY13 FY14 FY15 FY16

Arizona State University 12.91 12.93 12.92 12.85 12.42

Florida State University 15.33 15.81 16.10 16.05 16.14

Indiana University-Bloomington 20.11 20.53 20.07 20.77 20.35

Michigan State University 22.75 21.47 21.29 21.59 21.92

Ohio State University-Main Campus 24.34 22.97 23.02 22.92 22.70

Pennsylvania State University-Main Campus 28.58 28.79 28.75 29.04 29.61

Rutgers University-New Brunswick 23.01 23.90 25.67 24.98 24.72

The University of Texas at Austin 28.77 32.77 26.00 26.70 27.38

University of California-Los Angeles 27.35 26.67 28.43 26.37 26.94

University of Connecticut 26.92 28.08 28.32 27.59 27.19

University of Illinois at Urbana-Champaign 24.25 24.44 25.14 25.23 25.18

University of Iowa 23.22 23.32 23.50 24.08 24.22

University of Maryland-College Park 24.91 25.75 26.00 27.37 25.47

University of Minnesota-Twin Cities 29.62 30.30 30.85 31.24 31.56

University of Washington-Seattle Campus 25.60 24.44 25.29 25.60 21.70

University of Wisconsin-Madison 26.42 26.85 26.91 27.59 27.48

Peer Median 24.91 24.44 25.67 25.60 25.18

0.0

5.0

10.0

15.0

20.0

25.0

30.0

FY12 FY13 FY14 FY15 FY16

Peer Median

Arizona State University

Through a combination of cost discipline and strategic use of partnerships to control

costs, ASU has consistently operated with about half the staff per student as its peers.

FTE Employees Per 100 FTE Students

(Excludes Medical School Employees)

22

Resources

23

$11,750

$14,158

$13,526

$15,335

$15,996 $16,093

$17,302 $17,231

$13,240

$12,330

$13,294 $13,464 $12,945

$13,604 $13,225

$11,000

$12,000

$13,000

$14,000

$15,000

$16,000

$17,000

$18,000

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Tuition, Fees and State Appropriations per FTE Student

Per Reported FTE Adjusted to FY04 $

$44,321

$48,905

$59,278 $57,316

$59,165 $58,104

$63,686 $66,218

$47,476

$54,037

$49,688 $49,800

$46,737

$50,074 $50,823

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Tuition, Fees and State Appropriations per Degree Awarded

Per 1st and 2nd Degree Adjusted to FY04 $

ASU has increased its

performance in ways that

allow it to serve more

students and to grant more

degrees despite inflation.

Given that the state

investment component of

the available resources is

less than half of the FY04

level, the cost effectiveness

improvements have

moderated the rate of

tuition increase.

24

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Resident UG Immersion Resident UG Online Non-Resident UG Immersion Non-Resident UG Online

International UG Immersion International UG Online Resident G Immersion Resident G Online

Non-resident G Immersion Non-resident G Online International G Immersion interntional G Online

Metric Goals

Resident UG

Non-resident UG

International UG

International G

Resident G

Non-Resident G

Enrollment capacity is critical to the

ability to meet the access mission as

well as to creating the resources

needed in the Enterprise Plan. ASU is

prepared to expand resident

enrollment beyond the metric levels

shown. It should be noted that the non-

resident and online metrics are based

on slower rates of growth than those of

the last five years.

Tuition revenue from sources other than residents drives

the enterprise resource strategy

ASU Online programs generate over $200 million

in gross revenue which supports faculty hiring

that benefits both immersion and online students.

EdPlus has developed a range of student

support technologies that are used in different

ways to support all students.

Online courses are offered to immersion and to

online students, and enhances student outcomes

and time to degree.

Adaptive courseware developments benefit all

students.

ASU is recognized as a leader in online

education, innovation, and applications of

technology to improve educational outcomes.

25

ASU’s online and digital programs support the

mission in many ways

Partnerships with municipalities, private

sector housing developers, and commercial

firms supporting research.

Philanthropy - Campaign ASU 2020 seeks

>$1.5 billion in new support, and also is the

basis for building an organization capable of

more philanthropic support after the

campaign ends.

Compatible development of university-owned

land to support athletic facilities and to relieve

pressure on tuition rates.

Development also enhances ASU’s environs

and will increase student opportunities for

internships and post-graduation employment.

26

In the enterprise model, ASU seeks resources from a

wide range of activities related to the mission

27

In the enterprise model, ASU seeks resources from a

wide range of activities related to the mission

28

$491$322 $295 $320 $373 $453

$162$332 $356 $378

$432$515$182 $241 $288 $296

$341

$448

$136$155

$157

$207

$71$113

$147$170

$188

$235

$25$5

$5

$6

$70$86

$170$210

$229

$255

$45

$181

$251

$472

$616

$10

$10

$10

$104

$183

$296

$356

$423

$528

$75

$74

$112

$129

$145

$170

$43

$63

$106

$85

$139

$197

$136

$106

$150

$165

$181

$205

$152

$281

$310

$350

$425

$505

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

FY08: $1.5B FY12: $1.9B FY16: $2.6B FY18: $2.9B FY21: $3.6B F25: $4.3B

ASU University Gross Revenue Sources: All Funds ($ millions)

State appropriations Resident UG tuition Non-Resident UG tuition

International UG tuition Graduate tuition Thunderbird

Fees and summer session ASU Online tuition (gross) New revenue sources

Scholarship allowance Other E&G sources Gifts

Auxiliary TRIF Research including F&A (external only)

Gross revenueas of 7/1/02 was $775M. 41% ($320M) came from state investment

The Enterprise Plan has

led to an increasingly

diverse range of revenue

sources.

29

$15,658

$14,057

$16,277 $16,143$16,143$16,588

$16,286

$13,004

$14,357$14,116$14,116 $14,050

$13,645

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

$16,000

$17,000

$18,000

$19,000

$20,000

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

E&G Expense Net of Scholarship Allowance per FTEABOR Methodology

ABOR E&G actual ABOR E&G projected

Actual adjusted to FY08 $ Projected adjusted to FY08 $ (low inflation)

Cost discipline, application of technology, and economies

of scale are projected to maintain current cost levels

Net Position ($ in Millions)

$725.5 $665.9

$661.7 $634.3 $643.0 $664.9 $695.6 $718.6 $778.9 $852.2

$141.5

$120.2 $139.8$136.7 $145.6

$160.4$173.4 $174.5

$188.5

$198.8$27.4

$165.9$235.3

$359.4

$463.0$511.3

$563.3

$161.6

$253.7

$282.8

$473.9

$503.5

$537.0

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Invested in capital assets, net Restricted Unrestricted GASB 68 and GASB 45 Adjustment

$1,251.6

30

$894.4$952.0

$1,036.8

$1,130.4

Fiscal year ended June 30

$1,724.6

$1,870.8

$1,336.6

$1,432.3

$1,528.6

ASU’s financial strength led to a bond rating

upgrade in 2017

31

$0 $10 $20 $30 $40 $50 $60

Thousands of dollars

USC Market PriceResident Tuition

Merit & Need

Scholarship

The market (measured by non-resident and international student demand) values an ASU

education at $30,000 per year.

Residents receive excellent value at $10,000 less substantial financial aid.

Building the brand quality and recognition will allow further revenue opportunities in the

non-resident markets.

ASU Market Price

Funding goal for

tuition plus state

investment

Tuition and financial aid

policies are critical to

both access and the

Enterprise Plan revenue

strategy.

Market Price Model

$2,328

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Tuition andmandatory

fees

< $20K $20K -$34.999K

$35K -$49.999K

$50K -$64.999K

$65K -$79.999K

$80K -$119.999K

>= $120K Unknown All FTResident

UG

Tuition & Mandatory Fees Institutional Gift Aid Federal Gift Aid (All)

State Gift Aid Private/External Gift Aid Average Student Payment

32

Institutional gift aid is awarded as both merit

aid and gift aid, which results in opportunities

for aid to all students.

Arizona Resident Undergraduates in 2016-17

Average Gift Aid Awards by Family Income

33

$10,391

$10,957

$11,424

$11,769

$12,248

$9,692

$9,990

$10,358

$10,764

$11,059

$10,002$10,157

$10,478

$10,640$10,790

$9,000

$9,500

$10,000

$10,500

$11,000

$11,500

$12,000

$12,500

Enter Fall 13 Enter Fall 14 Enter Fall 15 Enter Fall 16 Enter Fall 17

UA Pledge NAU Pledge ASU

Tuition, Surcharge, and Mandatory Fees:

New Resident Freshmen Actual FY2014 to FY2018

$35,000

$37,000

$39,000

$41,000

$43,000

$45,000

$47,000

$49,000

$51,000

Enter Fall 13 Enter Fall 14 Enter Fall 15 Enter Fall 16 Enter Fall 17

NAU Pledge ASU @ 1.5% ASU @ 3.0% UA Pledge

Note: UA pledge program began in FY15. Rates for fall 13

entrants are for non-guaranteed tuition. ASU rates after FY18

are estimated at annual increases of 1.5% and 3%.

34

Tuition, Surcharge, and Mandatory Fees:

Four-Year Total Students Entering as Resident

Freshmen Actual FY2014 to FY2018

35

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Tuition rate increases have been

low for the last six years– ASU

pledges to hold annual resident

tuition rates to < 3% for 12 years.

Annual Resident UG Tuition and Fee Increases

Actual FY04 to FY18

$0

$200

$400

$600

$800

$1,000

$1,200

FY04 to FY08 Average FY09 to FY13 Average FY14 to FY18 Average FY19 to FY25 AverageRange

Higher range Goal Actual

The planning parameters for FY19

to FY25 are to hold annual increase

as close to zero as possible, with

increases not to exceed 3% in any

year.

This would result in increases of

zero to $160-$175 per year or

12 years at less than inflation.

Average Annual Resident UG Tuition and Fee Increases

Actual FY04 to FY18 Planning Range FY19 to FY25

36

0

200

400

600

800

1,000

1,200

1,400

1,600

Fre

sh

ma

n E

nro

llm

en

t

Fall 2002

Fall 2009

Fall 2017

All data adjusted to 2017 dollars using CPI. Analysis limited to dependent students.

Source: ASU analysis of FAFSA data

ASU has become far more accessible and attractive to

students from families with lower and modest incomes

during a period of tuition increases. This has been

achieved at the same time that ASU has become a

school of choice for students for whom affordability is

not an issue.

ASU First-Time Full-Time Freshmen Enrollment by

Adjusted Family Income

37

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

International

White

Hispanic

Asian

Black

Two or More

American Indian

Unknown

First-Time Freshmen Enrollment,

Fall 1980-Fall 2017

In fall 2017, while the absolute number of

white freshmen increased, the proportion

of white freshmen was less than 50% of

the class for the first time in ASU history.

38

0

5,000

10,000

15,000

20,000

25,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

39

Source: ASU analysis of FAFSA data. UOIA #9390.Fall Term

ASU’s access and outreach efforts, combined

with, financial aid policies and student success

programs have resulted in a doubling of the

numbers of first generation students in the last

decade.

First-Generation Undergraduates at ASU

40

94.6%

65.7%

93.3%

70.7%

83.6%

46.0%

72.3%

26.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

1-Year Retention 4-Year Graduation

Freshmen Entering in Fall 2013Retention and Graduation by Entering High School GPA

UT-Austin ASU >3.67 ASU 3.00-3.66 ASU <3.00

41

78.0%

87.8%

76.7%

85.2%

76.0%

78.0%

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

Freshman First Year Retention

Arizona Freshmen All Freshmen

Cohort Entry Year

Access and cost effectiveness are meaningful only

if they are accompanied by improved performance in

student success, research, and reputation

42

Resident Freshman Graduation Rates

28.4% 28.7%

31.0%32.2%

34.2%

38.8%

43.6% 47.3%

50.8%

49.0%

53.3%

52.6%

49.3%51.2%

53.0% 53.2%54.5%

56.9%

61.4%

63.8%65.7%

63.0%

67.8%

57.0%58.1%

60.2% 60.3% 60.8%62.5%

66.3%

69.3%70.2%

67.1%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Re

sid

en

t Fr

esh

man

Co

ho

rt G

rad

uat

ion

Rat

e

Cohort Year

4 Year ASU Graduation Rate 5 Year ASU Graduation Rate 6 Year ASU Graduation Rate Projected RateX 4 Year rates

X 50-55% MSU UC Riverside

X <35% Oregon State

Georgia State

X 40- 45% Kansas, ISU,Central Florida

X 45-50% Purdue

X 55-60% Ohio State

FOUR-YEAR GRAD RATES

X 65-67% UT-Austin

43

Research expenditures have doubled every

six to eight years

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$ M

illi

on

Actual Metric Goal

FY13 =$405.2M

FY06 =$202.0M

FY98 =$92.0M

FY25 Metric= $815M

(similar to MIT's research activity)

FY17 =$546.5M

44

2016 National Science Foundation (NSF) Higher

Education Research and Development (HERD) Rankings

Direct and induced economic activity from ASU operations provided over

49,000 jobs and $3.76 billion in gross state product. This does not include

the wages earned by ASU graduates shown on the next slide.

Economic Impact of Arizona State University, FY2017

Gross state product Labor income Employment

(in mill $) (in mill $)

University payroll & employment $1,386 $1,195 16,992

University non-payroll operating expenditures 315 196 4,616

University construction 166 129 2,246

Spending by faculty & staff 611 363 7,692

Student spending 1,194 617 16,238

Visitor spending 88 57 1,537

Total economic impact $3,760 $2,557 49,321

ASU is a major economic driver for the

metropolitan area and the State

Source: Center for Competitiveness and Prosperity Research, L. William Seidman Research Institute,

W.P. Carey School of Business, Arizona State University

45

Wages paid to ASU graduates in Arizona in 2015 totaled $8.9 billion.

Arizona taxes on those wages were almost $650 million.

Wages Earned and Taxes Paid in Arizona in 2015 by ASU Graduates 1990-2015

Resident UG Resident G Non-Resident UG Non-Resident G

Degrees awarded 1990-2015 167,971 52,021 43,664 30,430

Number employed in Arizona 99,881 29,795 8,714 5,481

% employed in Arizona 59% 57% 20% 18%

Wages earned $5,589,572,900 $2,368,837,600 $488,130,400 $410,455,300

Estimated State tax revenue $401,926,600 $166,677,600 $35,266,900 $29,108,600

ASU’s graduates are a major economic driver

for the metropolitan area and the state

46

47

85.2%

20,016

103,567

67.0%

16,4506,884

$53,537

4,629

$540.0 M

97

$35.4 M

8,477

Freshman Retention Rate 90.0%

Undergraduate Enrollment 98,200

Graduate Enrollment26,805

Total Enrollment125,005

6-year Graduation Rate75.0%

Bachelor's Degrees Awarded21,430

Graduate Degrees Awarded10,670

Education & Related Expenses perdegree$63,918

AZ CC Transfers AwardedBachelor's Degree 5,346

Research Activity$815.0 million

Licenses & Options Executed100

Public Service Activity$50.6 million

Degrees in High Demand Fields15,071

Goal % 2008/09 Actual % 2016/17 Actual %

2008 vs. 2017 PerformanceASU’s has made substantial progress since the metric targets were established in 2008-09. The Enterprise Plan provides the strategy for continued progress.

48

Discussion