March 22, 2013 Revenue Generation Task Force Meeting
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Transcript of March 22, 2013 Revenue Generation Task Force Meeting
REVENUE GENERATION TASK FORCE MEETINGMarch 22, 2013 | 3 to 5 p.m.
LSU AgCenter, 214 Efferson Hall
Lee Griffin, Finance and Revenue Sub-Committee Co-Chair
WELCOME AND INTRODUCTIONS
3
Meeting Information
This meeting is streaming live at:
www.lsu.edu/tat
For more information about this task force and the Transition Advisory Team visit:
www.lsu.edu/lsu2015
4
Today’s Objectives
Hear from LSU Vice-Provost for Academic Affairs Gil Reeve about online learning
Discuss other universities’ revenue enhancement initiatives Review the Department of Residential Life’s Vision 2020
Strategic Plan Discuss Vice Chancellor for Student Life & Enrollment Services Dr.
Kurt Keppler’s comments about the current and future state of LSU-BR’s on-campus housing
Examine LSU property management Public private partnership trends in higher education Identify key priorities and recommendations to date
Gil Reeve, LSU Vice-Provost for Academic Affairs
ONLINE LEARNING
Dr. Christel Slaughter, SSA Consultants
REVENUE ENHANCEMENT INITIATIVES AT OTHER UNIVERSITIES
“Responding to Budget Cuts with Alternative Sources of Revenue” | Research Questions
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What initiatives are institutions planning on to generate revenue given changing budget dynamics?
What efforts have institutions already implemented? How successful have these programs been at generating
revenue? What was the process involved in implementing these
initiatives; who was involved, what was the timeline, what were the costs?
How have institutions identified and assessed potential new revenue streams?
Source: Education Advisory Board
Ideas for Enhancing Alternative Revenues for Higher Education
9
New Educational RevenuesCapturing High-Growth Student Populations and Instructional Services
International student recruitment Applied and professional master’s Distance learning and course licensing Summer and intersession blended learning Customized corporate training Testing and certification Distance learning articulation agreements Senior enrichment programs Faculty consulting
Source: Education Advisory Board
10
Academic Entrepreneurship InfrastructureCritical Capabilities for Identifying, Launching and Scaling Viable Programs
Business planning support Fast-cycle program launch Cost-effective marketing Curriculum development Enrollment management Outsourcing and joint venture models
Source: Education Advisory Board
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Branding, Licensing and AffinityExpanding Product Categories and Sellable Space
Increasing branded merchandise demand Alumni, parent and community affinity programs “STEALTH” advertising and sponsorship Diversifying athletics revenues
Source: Education Advisory Board
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Auxiliary ServicesIncreasing Demand While Reducing Fixed Costs
Premium-priced healthy and convenient foods Future bookstore Shared-cost luxury amenities Favorable vendor rebates
Source: Education Advisory Board
13
Student FeesCharging for Convenience and Choice
Convenience fees Sharing costs of inefficient scheduling Differential instructional cost
Source: Education Advisory Board
14
Campus OperationsTurning Cost Centers into Revenue Producers
Campus health center Selling administrative services Surplus goods disposal Sustainable energy purchase power agreements
Source: Education Advisory Board
15
Facilities and Real EstateGenerating Cash Flow from Underutilized Space
Event rentals Development of joint ventures Long-term leasing Asset acquisition and disposal
Source: Education Advisory Board
Dr. Christel Slaughter
LSU TODAY
Department of Residential Life
Department of Residential Life
6,000 students live on campus
85 percent of freshmen live on campus
Residence halls have reached full capacity 700 students on waiting
list Revenue neutral
Would require upperclassmen and graduate students to move off campus
LSU-BR Campus Housing Snapshot Current Issues with Requiring Freshmen to Live on Campus
19
Department of Residential Life Vision 2020 Strategic Plan
Housing master plan Identified residence halls to renovate – as one
renovation completes, another hall is taken “offline” to begin its renovation. Fall 2012: Laville Honors College Fall 2013: Annie Boyd Hall (adding 160 beds)
New Residence Hall Project 660 new beds
August 2015: 330 beds 2016: 330 beds
LSU Property Management
An Analysis of Public Private Partnerships in Higher Education
22
Public Private Partnership Overview
Contractual agreement between a public agency and private partner to achieve all, one or a combination of the following: Monetize an existing infrastructure asset Design, construct, finance, and/or operate and
maintain an infrastructure project Transfer risks
A public private partnership is not an outright sale of a public asset.
Source: William Blair & Company
23
Advantages and Benefits
Private sector financing Equity, longer-term debt and wide array of financing tools
Design-build Reduced construction costs and faster project delivery
Operations and Maintenance Savings Long-term Risk Allocation and Transfers that allow the public
agency to better concentrate on its core functions Access to the best operational expertise and innovative
technology Long-term contract provides tax benefits to private partner
that can flow through savings to public agency
Source: William Blair & Company
Public Private Partnership Lessons Learned
Valuation Execution Use of Proceeds
Internal due diligence Thorough internal and external due diligence
Long-term: debt reduction, capital projects, pension funding, revenue replacement
Upfront analysis/modeling Gradual increases in user fees Hybrids possible
Understand value-drivers Customer service impact Avoid spending upfront proceeds for short-term purposes
Robust and transparent bidding process
Don’t rush operational and technology transitions
Create stakeholder value
Manage bidder and stakeholder expectations
Value for Money (VFM)
Understand value of risk transfer
Source: William Blair & Company 24
Public Private Partnership Lessons Learned (continued)
Source: William Blair & Company 25
Knowledge is power Transparency, terms and timetable Stakeholder communications strategy Managing the message and expectations Monetary value + favorable market conditions +
political will = SUCCESS
Group Discussion
KEY FINDINGS AND RECOMMENDATIONS TO DATE
Save the Date
Next Meeting:
April 15, 2013LSU AgCenter, 212 Efferson Hall
LSU-Baton Rouge
Lee Griffin, Finance and Revenue Sub-Committee Co-Chair
ADJOURNMENT