Responses from The College of New Jersey

Discussion Points Responses from The College of New Jersey (Note: Questions 1 12 not applicable to individual institutions) Senior Public Institutions 13. On November 6, 2012, New Jersey voters approved the Building Our Future Bond Act, P.L.2012, c.41, to authorize the State to issue up to $750 million in general obligation bonds for higher education capital projects. Combined with the four higher education capital funding programs under which the New Jersey Educational Facilities Authority (EFA) issues bonds, a total of $1.3 billion in grants was made available for New Jersey s public and independent institutions of higher education to construct and equip higher education facilities. The four funding programs supported by EFA bonds are: the Higher Education Equipment Leasing Fund Act, P.L.1993, c.136, the Higher Education Technology Infrastructure Fund Act, P.L.1997, c.238, the Higher Education Facilities Trust Fund Act, P.L.1993, c.375, and the Higher Education Capital Improvement Fund Act, P.L.1999, c.217. Under regulations adopted by the Secretary of Higher Education, an institution is required to enter into a grant agreement with the secretary in order to receive funds under the Building Our Future Bond Act, and with the EFA in the case of the four EFAadministered capital funding programs. Question: For each project approved for funding during 2013 from the five capital programs cited above, please indicate which projects have grant agreements in place with the EFA or secretary, and for which projects the institution has requested funds pursuant to agreements that it has not received. The College of New Jersey was awarded $57.4 million in funding and the following grant agreements are in place with EFA: 1. BUILDING OUR FUTURE BOND ACT $40 million for the new STEM Complex. 2. Higher Education Technology Infrastructure Fund $1 million for the new STEM Complex. 3. Higher Education Equipment Leasing Fund Program $6.9 million to fund upgrades in research and learning equipment for the 1

Schools of Science, Engineering and Nursing, Health & Exercise Science. 4. Higher Education Technology Infrastructure Fund $3.55 million to expand technology infrastructure. TCNJ requested funding for the following projects which were not approved: 1. Higher Education Facilities Trust Fund $18 million for Armstrong Hall renovation 2. Higher Education Capital Improvement Fund 19.8 million for various asset renewal projects. Question: For projects without an executed grant agreement, please explain the delay. The College of New Jersey has not received the grant agreement for the Higher Education Facilities Trust Fund in the amount of $6 million that will help fund renovation to the Science Complex. The estimated construction start date for this project is July 2017. 14. In an era of low interest rates, financing capital improvement projects by issuing debt may be more feasible than in a high interest rate environment. Also, in the years between the 1988 and 2012 general obligation bond programs, the senior public institutions turned to the New Jersey Educational Facilities Authority to issue bonds for capital projects. The public research universities also used their own bonding authority to issue debt to fund capital projects. Question: Please list the amount of bonded indebtedness of the institution as of June 30, 2013 and specify whether the debt was issued either directly by the institution or through the EFA. For each year during the period July 1, 2009 to June 30, 2013, please provide the outstanding bonded indebtedness as of July 1, the additions caused by the issuance of additional bonds or refunding bonds, the amount of debt retired, and the outstanding bonded debt at June 30. TCNJ outstanding debt as of June 30, 2013 = $370,847,000 and all debt was issued through the New Jersey Educational Facilities Authority. 2

TCNJ Outstanding Debt (amounts in thousands) July 1, 2009 Additions Deductions June 30, 2010 Bonds payable 337,639 44,500 (4,353) 377,786 Other long-term obligations 8,931 (506) 8,425 Total Debt Outstanding $ 346,570 44,500 (4,859) 386,211 July 1, 2010 Additions Deductions June 30, 2011 Bonds payable 377,786 (4,696) 373,090 Other long-term obligations 8,425 (526) 7,899 Total Debt Outstanding 386,211 (5,222) 380,989 July 1, 2011 Additions Deductions June 30, 2012 Bonds payable 373,090 30,133 (36,102) 367,121 Other long-term obligations 7,899 (543) 7,356 Total Debt Outstanding 380,989 30,133 (36,645) 374,477 July 1, 2012 Additions Deductions June 30, 2013 Bonds payable 367,121 (3,181) 363,940 Other long-term obligations 7,356 (449) 6,907 Total Debt Outstanding 374,477 (3,630) 370,847 In fiscal year 2010, TCNJ issued $44.5 million in new debt to finance a new state of the art School of Education building. Majority of this debt ($41 million) was taxable Build America Bonds as part of the American Recovery and Reinvestment Act 2009. Each year, TCNJ will receive cash subsidy from the US Treasury equal to 35% (approximately $1 million) of the interest payable on these bonds. No additional debt was issued during fiscal year 2012, however with interest rate at an all time low, TCNJ refinanced $33 million in debt and realized present value debt service savings of $3.65 million. The College has strategically refinanced outstanding debt in an effort to accelerate the pay down of principal and lower the overall interest costs incurred. Over the next five years, the College will pay down $55 million in principal, and within 10 years it will have paid down $130 million. The strategy to pay down debt has been reviewed favorably by all three rating agencies. 15. According to an analysis brief published by The College Board in July 2012, entitled Trends in Tuition and Fees, Enrollment, and State Appropriations for Higher Education by State, total enrollment at public institutions has generally increased from 2000 to 2010. In New Jersey, public two year fall enrollment increased from 124,585 in 2000 to 180,406 in 2010, an increase of 44.8%. Public four year fall enrollment for the same period increased from 142,336 to 177,850, an increase of 25%. 3

Capacity, such as the lack of adequate research labs or dormitory space, has long been an issue at the institutions of higher education. However, even with long standing capacity issues, overall enrollment continues to climb. Question: Of the students who apply for admission to the institution, how many meet the admissions standards at the institution but are denied admission due to the lack of capacity? During the 2013 2014 admissions cycle, approximately 300 students met the admissions standards but were denied admission due to the lack of capacity. Approximately 90% of these students fell within the areas of Science, Engineering or Nursing. Question: Based upon funding awards under the Building Our Future Bond Act and the four EFA capital funding programs, to what extent will capacity, however measured, increase when the funded projects are completed? Based upon funding awards under the capital funding programs, the capacity for our undergraduate cohort will increase by approximately 200 students over the next five years. Capacity increases will occur primarily in the Science, Engineering and Nursing areas. Question: What does the institution feel is the appropriate size of its student body, given currently available facilities and staffing levels? Based on currently available facilities and staffing levels, the appropriate size for our undergraduate student body is approximately 6,700 students. Based on currently available facilities and staffing levels, the appropriate size for our graduate student body is approximately 700 students. Question: Given the institution s unique mission, if greater resources were available to the institution, what does the institution consider to be its optimum academic capacity, such as the maximum number of enrolled students? 4

Considering TCNJ s unique mission, if greater resources were available to the institution, our optimum academic capacity for all enrolled students would be 7,500 8,000 students. The College has steadily grown its full time undergraduate population over the last 10 years from roughly 5600 in 2003 to 6455 in 2013 (an increase of 15%). In 2013, TCNJ enrolled 1402 full time freshman, 224 more than in 2003. The College puts great emphasis on time degree completion and increasing graduation rates. TCNJ s 4 year graduation rate has increased by over 11 percentage points since 2003, enabling the College to enroll more students over time. 16. Full time undergraduate in State tuition and fees at the senior public institutions of higher education averaged $10,634 in academic year 2008 2009, rising to $12,481 in academic year 2012 2013. This is an increase of $1,847 or 17.4% over the past four academic years or an annual average increase of 4.1%. Over the past few years, State appropriations to the public institutions have remained relatively level, following declines at the onset of the Great Recession in 2008. Student enrollment at the institutions has steadily increased. Question: What is your institution doing to combat the rise in tuition and fees, in order to prevent prospective students from being priced out of attending your institution or carrying high debt loads? Revenue Diversification Strategies TCNJ is continuously identifying new ways to diversify revenue. Some examples include: Recruitment of international and out of state students Establishment of English as a Second Language programs Enhanced summer, January term and Maymester offerings Implementation of RN BSN degree programs, which are open to nontraditional students and are held off site (i.e., School of Nursing partnership agreements with area medical centers). In addition to revenue enhancements, every year TCNJ budget salary savings that are realized through position turnover due to retirements and 5

resignations and by filling the replacement positions at a lower salary range than the incumbent. This strategy is another key reason why TCNJ is able to moderate its annual tuition and fees increases, keeping the cost affordable to our students. TCNJ has successfully pursued opportunities to re bid a variety of longstanding contracts to achieve more favorable pricing, execute multi year terms at lower annual rates, refinance outstanding debt to lower interest cost, as well as to secure investments in major campus programs and facilities. Some of the successes of TCNJ s efforts include: Upfront debt service savings from refinancing $3.65 million Federal interest subsidy on the Build America Bonds approximately $1M annually Upfront fuel and utilities savings (including expiration of natural gas futures contracts) $1.7 million Multi year goods and services contracts $224,000 annually Keeping Net Costs Low TCNJ recognizes the importance of time to degree in determining the cost effectiveness of a student s education and is committed to keeping students net costs as low as possible. The College s efforts to improve time to degree have increased the 4 year graduation rate over 11 percentage points since 2003 and is currently among the highest in the nation for a public institution. Question: Please describe any efforts to outsource or privatize any of the institution s functions, including any cost savings. TCNJ has out sourced some of its auxiliary service contracts, such as dining service, bookstore and vending operations. As part of these multi year service contracts, TCNJ receives guaranteed commissions annually (totaling approximately $2 million), in addition to funding for capital investments. In the most recent bid for dining services, TCNJ secured $31 million in capital funding 6

to support a major renovation of its student center building that was built in 1976. Utilizing the public private partnership provision contained in the New Jersey Economic Stimulus Act of 2009, TCNJ is partnering with a private developer to build Campus Town. Financed by the developer, this project will add an additional 446 beds for TCNJ students, a new fitness center, bookstore, and multiple retail opportunities. Additionally, the developer will provide the College with an annual ground lease payment beginning in 2018 at $425,000 and increasing by $25,000 annually. Question: Please provide five year tables showing the number of administrative staff and faculty staff at the institution. TCNJ Staff 2009 2013 IPEDS Year Full Time Staff Part Time Staff Total TCNJ 2013 683 13 1517 2012 677 12 1482 2011 646 19 1419 2010 637 20 1390 2009 646 19 1415 TCNJ Full Time Faculty 2009 2013 # Tenure Track # On Tenure Track Total FT Faculty IPEDS Year #Tenured Total TCNJ 2013 283 47 17 347 1517 2012 238 85 26 349 1482 2011 244 75 32 351 1419 2010 257 75 16 348 1390 2009 247 81 20 348 1415 7

Question: Please provide a five year table showing the number of adjunct faculty at the institution. TCNJ Adjuncts/Part Time Faculty 2009 2013 IPEDS Year PT Faculty Adjuncts Total TCNJ 2013 17 457 1517 2012 20 424 1482 2011 18 385 1419 2010 21 364 1390 2009 24 378 1415 17. The Educational Opportunity Fund (EOF) Grant Program, pursuant to N.J.S.A.18A:71 28 et seq., provides access to higher education for economically and educationally disadvantaged students. EOF grants assist low income residents who are capable and motivated, but lack adequate preparation for college study. A student may be awarded $200 to $2,500 per academic year to fund undergraduate, graduate, and professional study at public and independent institutions of higher education in New Jersey. For the 2014 2015 academic year, the Secretary of Higher Education estimates that 17,947 EOF grants would be awarded, totaling $38.8 million. Question: Please provide the four, five, and six year graduation rates for students in the EOF Program. If the graduation rates are collected in a different manner, please explain and provide the data. 2007 Entering Cohort Graduated in 4 years: 47% Graduated in 5 years: 78% Graduated in 6 years: 85% Question: Are there students who apply for the Educational Opportunity Fund Program who are rejected due to the lack of available EOF Program funds? If so, please provide information on the number of affected students and how much funding would be required to provide those students with EOF grants. 8

Given the large number of students in the State of New Jersey who fall within the EOF economic guidelines, demand does outpace available funding. 9