The Association of Independent Kentucky Colleges and Universities is required by statute to make an annual report to the Council on Postsecondary Education. This presentation was delivered by AIKCU President Gary S. Cox, along with AIKCU Board Chair John Roush (Centre College President) and Vice Chair Bill Huston (St. Catharine College President) at the 9/10/09 CPE meeting in Bowling Green Kentucky.

1. Kentucky’s Independent Colleges and Universities
The Association of Independent
Kentucky Colleges and Universities
Gary S. Cox, Ph.D
President
(502) 695-5007
gary@mail.aikcu.org
http://aikcu.org

2. Annual Economic Impact of Kentucky’s Independent
Colleges and Universities = more than $1.48 billion
Total economic impact (in millions), by spending category
Direct Indirect
800
700
600
500
400
300
200
100
0
Institutional Expenditures Capital Expenditures
Source: Private Colleges, Public Benefits: The Economic and Community Impact of Kentucky’s Independent Colleges and Universities on
the Commonwealth of Kentucky. Human Capital Research Corporation, 2006. http://www.aikcu.org/wp-content/uploads/2007/08/Private
%20Colleges,%20Public%20Benefits%20-%20AIKCU%2011-1-06.pdf

3. Kentucky’s investment in AIKCU students
is less than 4% of total state postsecondary spending
AIKCU student aid: $52.3 million
(AIKCU KTG: $28 million, or 2.2%)
3.9%
Non-AIKCU student aid:
9.4% $127.5 million
Other postsecondary spending:
$1.17 billion
86.7%
Sources: 2007-08 postsecondary budget data - CPE
2007-08 KY Student aid lottery funded program (CAP, KTG, KEES) data - KHEAA

4. Average 2008-09 Independent College Published Tuition and Fees
(Note: very few students at independent colleges actually pay this “sticker price” after financial aid is factored in.)
$30,000
$25,000 $25,143
$21,773
$20,000
$17,256
$15,000
$10,000
$5,000
$0
Kentucky South National
Source: AIKCU 2008 Tuition Survey; College Board’s Trends In College Pricing 2008

5. State financial aid to independent college
students, 1998-2008
State financial aid to AIKCU students through Kentucky’s “big three” aid programs
(CAP, KTG, and KEES) totaled $52.3 million in 2007-08, up from $11.9 million in
1997-98.
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
KTG CAP KEES
Source: KHEAA

6. Average Kentucky independent college costs
and financial aid awards by source, 2006-07
AIKCU Average total 2006-07 costs = $21,285
(Average tuition = $15,245; Estimated average room/board = $6,040)
$25,000
$20,000
$6,217
$15,000
$3,503
$10,000 $3,868
$5,000
$7,697
$0
Avg. Institutional aid Avg. State aid Avg. Federal aid Avg. Student share
Sources: Aid Data: Integrated Postsecondary Education Data System (IPEDS), 2006-07. First-time, full-time student cohort; Tuition: AIKCU 2006-07
Tuition/Fees Survey; Room/board: IPEDS, 7 campuses reporting an average of $6040.

7. Average Debt of Graduates, 2007
$17,000
$12,750
$8,500 $16,663 $16,963
$4,250
$0
AIKCU Public Universities
Source: ProjectOnStudentDebt.org. Debt data as reported by campuses to
Peterson’s Undergraduate Financial Aid and Undergraduate Databases.
17 of 20 AIKCU campuses and 7 of 8 Kentucky public university campuses
reporting data.

8. Independent colleges promote timely graduation
Percent of first-time, full-time students who graduate in...
50
40
30
20
10
0
4 years 5 years 6 years
AIKCU KY Public Universities
Source: IPEDS, Fall 2000 GRS Revised Cohort of first-time, full-time bachelor’s degree seeking students

9. AIKCU Total Headcount Fall Enrollment, 1999-2008
30,411
29,041
27,440
26,908
26,151
25,252 25,532
24,764
23,836
23,206
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: CPE Comprehensive Database

10. AIKCU Bachelor’s Degrees, 2000-2008
4,200
4,191
3,902 3,881
3,779 3,801
3,575 3,555
3,453
3,150 3,271
2,100
1,050
0
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08
AIKCU enrolls about 19% of KY’s bachelor’s degree seeking students and
produces 22% of bachelor’s degrees.
Source: CPE Comprehensive Database

11. Growth in transfer from KCTCS to AIKCU
1,100
1,093
926 938
825
550 583
514
402
358 351 365
275
0
99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08
Source: CPE Comprehensive Database

12. How are AIKCU members
changing to deal with
current economic realities?

13. ASSOCIATION OF INDEPENDENT KENTUCKY COLLEGES AND UNIVERSITIES
REPRESENTATIVE COST SAVINGS ACTIVITIES
• Combine 2 full-time office positions into one (Business Office and Registrar)
September, 2009 • Allowed our discount rate to rise slightly.
• Reduced faculty professional development funding and professional memberships
• Waived admissions fees for adult programs.
• Suspend TIAA CREF match
• Tuition rates for summer classes reduced by 50 percent
• Departmental operating budget reductions
MANAGING PERSONNEL COSTS • Waived tuition for seats in classes that had not been filled for those recently unemployed
• Renegotiated physical plant contract
• Placement helped students in partners with “Let’s Go 2 Work.” The program provided
• Installed water saving devices in residence halls 16-24 year olds, several in college family, with six-week summer jobs at local
• Staff right sizing
• Promoted more efficient utilization of utilities (lights, equipment, etc.) businesses and organizations using American Recovery and Reinvestment Act funds to
• Faculty hiring deferrals
• Reduced A/C and heating levels in buildings pay their salaries
• Non-Faculty staff hiring postponements
• Strategically utilized technology tools and programs to reduce postage costs • Lowest Tuition increase in 20 years
• Salary Freezes
• Re-negotiated contracts to effect savings in telecom services and hardware
• Reduced paid faculty overloads
maintenance ACADEMIC CREDIBILITY
• Reduce utilization of adjunct faculty
• Reduced printing costs by limited publications and/or size of pieces
• Placed full time faculty members in overload (without additional compensation) to cut
• Initiated student printing controls with charges for excessive pages printed on college • Maintain goal of low student/faculty ratio
adjunct salary expense
systems • Concentrating on student retention and graduate recruiting.
• Employee Furloughs and Voluntary Salary Cuts
• Networking printers in offices. • Tuition/room/board rates were frozen at 2008-2009 levels.
• Reduce Fringe Benefits
• Careful monitoring of accounts receivables • Three-hour courses offered free to unemployed adult learners.
• Manage Effective Development and Marketing Strategies
• Renegotiated student athletic insurance contract • Offering job fair and student placement services regularly in community
• Delayed upgrading academic instructional technology and health sciences
SHORT & LONG RANGE PLANNING
Reduced credit card usage and carriers – only business office, President and
We asked, and the list is long
•
Advancement
• Postpone Capital Spending
• Changed purchasing procedures – CFO to review each check request and
• Regular financial update and suggestion sessions across campus, with students, with
P.O./President to review purchases over $500.
faculty, and with staff
• Dining hall savings from eliminating trays (water)
• Promoted efficient utilization of college health insurance benefits
• Added a winter term in January (increased revenue)
• Working smart by making more phone calls and less travel.
• Mountain Outreach – Plans to build only 2 homes next summer.
• Utilizing student labor as much as possible; this helps the students and helps to control
• For Church Relations/Alumni/Media Relations/Student Services – No unbudgeted
costs.
expenditures
• Work study done at the same place as presidential work.
• Reducing and/or controlling expenditures in Business Services such as: purchased 4
• Maximized utilization of additional federal and state student scholarship funds (Yellow
busses instead of 8 as originally budgeted
Ribbon, etc.)
• Refunded bonds saving about $700K in total over next 10 years.
• Awarded over $10 million in scholarships for 2008-09 academic year, and over
• Reworked physical plant staffing schedules by staggering shifts (reduced overtime
$11,500,000 for 2009-10
saving approximately $100K per year)
• Working with students to apply for loans
• Signed contract with eCampus.com to sell textbooks, spirit items on-line
• Maximize Student Financial Aid Opportunities.
• Analysis of the Spirit Shop to increase sales, improve quality, launch internet sales
• Consolidating scholarship offerings to award only academic and athletic scholarship
• Change accounting system to improve communication and efficiency
except for students in our service area who may be eligible for an additional scholarship
• Planning for summer housing for next summer
based on need
• Working with agencies to do international recruiting therefore cutting out some
• Semester of free tuition for unemployed workers
international travel.
• Gold incentive program for returning students, early registration and filing FAFSA
• New endowment spending formula provides a more stable return to keep tuition • Yellow Ribbon program for veterans
increases minimized • Multicultural Scholarship $1,500 a semester for full time students
!" !"
" !"
"

14. Questioning and evaluating
everything...
• Operations
• Personnel and staffing
• Administrative costs
• Tuition and aid policies
• Strategic plans

15. You can count on me wearing you
out with ideas and questions - some
of them tough ones - about how we
conduct our business.
Centre College President John Roush
in a recent address to faculty and staff

16. ...except fundamental
commitments to
• supporting students
• academic integrity
• individual missions

17. AIKCU: Building strength
through collaboration
• Business partnerships for cost containment and
increased efficiencies: office supplies,
insurance, information technology, fuel, many
more
• Resource and information sharing
• Low cost professional development
• Relationships with public institutions (KCTCS
transfer, KYVL, MoSU-EKU-AIKCU project, etc.)

18. Issues and opportunities:
How can CPE work with AIKCU to maximize state
resources, maintain quality and diversity, and
further the Public Agenda?
•Support student financial aid
•Ensure quality
•Recognize and value contributions of
independent sector
•Encourage innovative collaborations

19. Questions?
Gary S. Cox
gary@mail.aikcu.org
502.695.5007
www.aikcu.org