Iowa State University's Strategic Plan for 2000-2005 is based on the following revenue assumptions:
State Appropriations: Increases in state appropriations, beyond inflation and employee compensation increases, will be pursued for targeted initiatives that directly address state needs and/or national priorities of vital interest to the state. New and/or major increases will be pursued for bold visionary initiatives.
Tuition Revenue/Enrollment: In accordance with the Board of Regents policy adopted in 1999, tuition revenue will reflect annual increases based on the Higher Education Price Index (HEPI) and a premium for improving quality (to date, maintained at 2%). This represents an increase above annual inflation level. Iowa State's enrollment is projected to grow from 26,110 students in 1999-2000 to nearly 27,250 students in the next five years based on current estimations and an aggressive recruitment campaign. In particular, significant increases are projected for nonresident enrollment.
Reallocations: Iowa State has demonstrated a culture of significant internal reallocations for many years. Since 1996, Iowa State has been annually reallocating at least 2% of its general fund budget in accordance with the directive of the Board of Regents, State of Iowa. Similar reallocations will continue during this strategic plan period involving both centralized reallocation and decentralized reallocation with various units.
Sponsored Funding: Following a record level of $199.2 million in 1988-1999, sponsored funding is assumed to grow by an average of at least 10% per year due to major programmatic initiatives-in research, instruction, pubic service, student aid, fellowship and training, facilities and equipment-supported by aggressive and entrepreneurial activity of faculty and staff. While increase in reimbursement of indirect cost is difficult to project, it can be assumed at an average of at least 5% per year due to increased sponsored funding, coupled with greater efforts to obtain full indirect cost reimbursement.
Private Funding: Following record private fundraising of $124 million and record gift income of $108 million in 1998-1999, private funding (gift income) is assumed to stay above $100 million per year, and possibly grow based on campaign initiatives as they develop, and/or opportunities that might occur. Most private funds will be targeted to new programmatic initiatives; scholarships, internships, and fellowships; endowed chair/professorships, and new facilities and equipment. An emphasis would be placed on securing endowed funds.
Revenues from Licenses/Patents: Revenues from licenses and patents showed remarkable growth during the 1995-2000 strategic plan period, exceeding the target of $1.5 million per year by nearly 50%. A new target will be established commensurate with the prospects for technology transfer resulting from visionary initiatives in discovery and innovation.
Funding from these sources will be utilized in concert to achieve the goals of the strategic plan. In various cases, one source of funds may leverage another in order to build strategic partnerships in launching new initiatives.
The strategic plans of the University, colleges, and major support units will provide the overall framework that will guide all major budget decisions of the university. This intrinsic relationship between planning and budgeting, along with performance indicators to measure outcomes and progress, reflect Iowa State's commitment to the Regents' expectation of effective stewardship of institutional, state, federal, and private resources.