Funding the Plan

Purdue's vision to become a preeminent University and a world leader in engineering, the sciences, and other technology-intensive areas will require a carefully constructed funding scheme to support and implement the strategic plan. The plan would recognize the interdependence of various funding sources, and the importance of a partnership of these funds in supporting key initiatives, with the following assumptions:

• State Appropriations: Annual increases beyond inflation (based on the Higher Education Price Index) and compensation will be targeted toward focused initiatives that are of highest priority to realize the University's vision and of vital interest to the state.
  
  
• Federal Appropriations: Annual appropriations to the Agriculture Experiment Station (AES) and Cooperative Extension Service (CES) are assumed to stay stable over the plan period.
  
  
• Fees and Tuition: Revenues will grow based on annual increases that would take into consideration competitiveness with the peers (and within the region), providing access to academically qualified students, and impact on enrollment.
  
  
• Sponsored Funding: Revenues will increase commensurate with growing sponsored funding initiatives. Annual targets will be established based on an aggressive program to increase the funding level.
  
  
• Internal Reallocation: An annual reallocation target (of an adjusted general fund base) will be determined and sustained throughout the plan period. The sequestered funds will be annually redeployed to strategic plan priorities.
  
  
• Private Giving: Expendable revenues will be generated from an annual private giving program. This will be based on the implementation of a major fundraising campaign with well-crafted goals in alignment with the goals of the strategic plan.
  
  
• Revenues from Licenses and Patents: With heightened attention to technology transfer and commercialization, revenues will be expected to increase. The expendable revenues will be determined annually.
  
  
• Revenues from Other Sources: The revenue growth in other sources including Intercollegiate Athletics, and auxiliary enterprise units such as the Purdue Memorial Union, the Residence Hall system, and other campus services will be determined annually.

Key Investment Areas
Achieving the vision will require targeted investments in several key areas of initiatives. Revenue increases from the various sources of funds, along with redirection of existing resources, will be used to leverage opportunities and thus maximize impact.

The University strategic plan, along with the strategic plans of the schools and other major units, will establish the framework for setting annual priorities and guiding the major budgetary decisions. Thus, strategic planning and concomitant resource allocations will be intertwined to advance the University.

Many of the strategies identified in this plan will be addressed within the scope of existing resources, by reassigning priorities and working in concert with the schools and other major units. In addition, a small number of key investment areas are identified based on the very substantial scope of new and/or additional funds that would need to be invested during the next five years. The key investment areas will include:

• Learning excellence for students:

• Increasing faculty numbers and their participation in undergraduate instruction while reducing reliance on graduate teaching assistants
• Experiential, collaborative, and interdisciplinary learning opportunities
• Creating new academic and support programs as well as initiatives in support of excellence in teaching and learning

• Expanding research capacity along with developing and implementing visionary interdisciplinary initiatives at signature areas in research
• Promoting engagement activities in Indiana to advance economic development and to improve quality of life
• Advancing human and intellectual diversity among faculty, staff, and students
• Preserving student access to education through expanded financial aid
• Assuring faculty and staff excellence through competitive compensation and supportive resources
• Strengthening the infrastructure including facilities and information technology

Together with the Board of Trustees, and the constituents it serves, Purdue will be committed to building the critical resources for implementing this strategic plan.

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