State of the University
Curtis J. Tompkins, President

September 17, 2003

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We gather here today to honor some of our most outstanding faculty, staff and students. Those who are being recognized today and all of those who were nominated for recognition are among the best of the best. Our Staff Council calls these people “B-O-Bs”, that is, the Best of the Best, and this past year initiated an annual award event at which many B-O-Bs among our staff are honored. So today is another B-O-B recognition event.

It is also a time when I am given an opportunity to summarize the State of the University. I ask that you consider my message to be a supplement to the awards ceremony that will follow my presentation; for that reason, I will not talk about the honorees with us today. Please consider what is said about and by them later in the Convocation as key parts of the State of the University.

Enrollment
Enrollment seems to be a topic of particular interest these days, so I will begin with that item. This fall we have 134 more on-campus students than we had a year ago. Of those, 50 are undergraduate students resulting in an on-campus undergraduate enrollment of 5,303.

This year, 81 percent of last year's freshmen returned as sophomores compared to 78 percent the previous year and 76 percent the year before. Our retention goals are to have at least 85 percent freshmen retention by 2008 and 88 percent by 2010. We have much yet to do to improve student retention, but it is pleasing to note that we have surpassed the interim goals for both this and next year.

Retention is a team effort involving faculty, staff, students and their families. It is both challenging and encouraging to note that the University of Michigan at Ann Arbor retained 96 percent of its freshmen and Georgia Tech retained 89 percent compared to 78 percent at Michigan Tech this past year. We should be encouraged that Ann Arbor and Georgia Tech have shown that it is possible to have high retention rates, and I believe that we are capable of doing as well.

The University’s strategic plan calls for an undergraduate campus enrollment of 6,000 by 2010. I am confident that we will achieve and probably exceed that target, if we - recruiters, faculty, staff and alumni - all continue to work together.

Most entering freshmen this year were born in 1985, the year of the Michigan Tech Centennial. They are truly people of Tech’s second century.

Among the 15 public universities in Michigan, the ACT scores of our entering undergraduate students are second only to those attending the University of Michigan at Ann Arbor, with 25th-75th percentile scores of 26-30 at Ann Arbor and 23-28 at Michigan Tech.

There are 84 more on-campus graduate students enrolled this fall than a year ago, resulting in a total on-campus graduate student enrollment of 775. The strategic plan calls for a graduate on-campus enrollment of 1,000 by 2010. It appears that if we continue our current efforts, we will exceed that target.

This fall’s graduate enrollment represents the third consecutive term in which a record high graduate enrollment has been recorded – this fall’s total graduate enrollment includes 223 new students chosen from nearly 2,000 applicants. This accomplishment has been achieved through the efforts of the Graduate School, the Graduate Faculty Council, the academic departments, and the Graduate Faculty.

International Aspects
Our 6,078 on-campus students come from 80 countries and 45 states, making Michigan Tech one of the most cosmopolitan campuses in the Upper Midwest.

A national research university must have a strong international presence both at home and around the world. I am pleased to report that this year has seen another increase in international activity at Michigan Tech, including international student enrollment, study abroad, faculty teaching abroad and international research collaboration. This is particularly notable considering continued global economic uncertainty, tuition increases, concerns about terrorism, new U.S. government restrictions for international students and the SARS virus.

International student enrollments broke a university record for the third straight year. First-year international undergraduate student retention climbed to over 84 percent, setting the pace for the university.

This summer, Michigan Tech hosted 22 engineering and business students from Wuhan University of Technology in China to study technical English and learn more about our undergraduate and graduate programs. I believe that many will come back to complete a Michigan Tech degree. Programs for transfer and double degrees are being planned for both Wuhan University of Technology and Heilongjiang University in northern China.
The number of Michigan Tech students studying abroad continues to increase. This past year 214 Michigan Tech students studied in 35 countries. This represents a 23 percent increase over the previous year and a 378 percent increase over the past four years.

Curtin University of Technology in Perth, Australia has become our most successful international study-abroad partner.

According to a recent survey of major corporations by the American Society for Engineering Education, international experience and knowledge of world affairs rank among the top-10 skills that companies look for in new college graduates. The excellent education we provide on-campus combined with international experience allows our graduates to compete for the best opportunities in the domestic and global marketplaces.

A partnership program that was initiated by Professor Bruce Barna more than 12 years ago with the University of Sonora in Mexico has grown to exemplify the multi-tiered approach to international education that we are pursuing. Through this program, now led by Professors Alex Mayer and Bruce Barna, supported by both the U.S. and Mexican governments and in cooperation with private industry, Michigan Tech is training Mexican undergraduate and graduate students, pursuing collaborative research, and providing international study and teaching opportunities for our students and faculty. In the process, by creating the opportunity for universities, governments, and industries to pursue mutually beneficial objectives, Michigan Tech is demonstrating the economic contributions that high quality higher education makes to both the State of Michigan and the State of Sonora.

Distance Learning
Closer to home, Michigan Tech has been the largest provider of distance learning courses to General Motors. The planned completion of a significant part of the GM program has reduced the number of individuals enrolled in distance learning this fall. Now, plans are underway to develop a network of community colleges through which students will receive Michigan Tech degrees.

In concert with Extended University Programs, directed by Marti Banks-Sikarskie, and the College of Engineering, two academic departments – Mechanical Engineering-Engineering Mechanics and Civil and Environmental Engineering – have made commitments to offer the BSE degree via distance learning at several of Michigan’s community colleges.

This fall, the program has been launched at Northwestern Michigan College in Traverse City, and plans are being solidified to offer the Bachelor of Science in Engineering degree at several additional locations across Michigan by fall of 2004 and beyond. Through this action, Michigan Tech will not only establish itself as a leader in the use of technology for science and engineering education, but will also greatly enhance our statewide presence as an institution that has a strong commitment to serve constituents across the entire state and region.

New Degree Programs
Since 1991, we have begun 26 new degree programs, many in disciplines other than engineering, and eliminated one program. It is important that we continue to add, and when appropriate, delete degree programs to stay current and responsive to the needs of our students, industry and the nation. We have to anticipate those needs as we plan future curricula and programs. Good program plans will always be encouraged and supported by Provost Wray and me and are also key components of our marketing efforts.

I mention marketing efforts because good marketing is based on anticipating our constituents’ needs and responding through our program offerings.

Rankings
Michigan, Michigan State and Michigan Tech were ranked recently by U.S. News in the top-50 public national universities. Only one state had more than three, top-50 public universities and that was California with eight campuses of its University of California system in the top 50. Virginia was the only other state with three top-50 public universities. This reflects well on the State of Michigan.

Once again, Michigan Tech is ranked second only to Georgia Tech among national public technological universities. My personal goal for Michigan Tech continues to be to exceed my doctoral Alma Mater, Georgia Tech. With commensurate and consistent support from the State of Michigan, we can accomplish that. Last year, Georgia Tech received $3,739 per student more state appropriation than Michigan Tech. That translates to an annual state appropriations funding gap of about $23 million that largely explains why Michigan Tech does not exceed Georgia Tech in the national rankings.

State Funding
State funding for higher education was on last year's agenda in virtually every state, and many states experienced larger cuts in university funding than did Michigan. Nevertheless, Michigan higher education received a substantial reduction in funding on an absolute basis and also relative to many other parts of the state general fund budget. Our elected leaders and representatives made very difficult decisions during the budget process, and we can appreciate how tough those decisions were. Now we need to have the state once again make higher education one of its highest priorities, to protect and preserve one of the best approaches to higher education in the nation.

The Michigan Economic Development Corporation reported last year that the state receives about $26 return on each dollar that it invests in our 15 public universities. There is no other part of the state budget that produces such a high return. It makes good economic and public policy sense to invest more, not less, in public higher education in Michigan. Even so, the proportion of the general funds of our 15 universities coming from state appropriations has diminished from 75 percent in the 1960s to less than 50 percent today, and it appears that higher education increasingly is being perceived as a "private good" rather than a "public good". That is, the burden of paying for higher education has been gradually shifted from the taxpayers to those paying tuition. That 40-year trend continues unabated and indeed was accelerated by the 10 percent cut in state appropriations for Fiscal Year 2004.

The uncertainties of our state's ability and willingness to support higher education continue to be of significant concern. At Michigan Tech, we will continue to take a conservative approach to budget planning while working hard to convince our elected leaders to invest more, not less, in higher education. Among the 15 Michigan universities, Michigan Tech receives the third highest funding per student, but we still need to realize that in the national context, Michigan should be expected to invest in Michigan Tech at the same rate that the State of Georgia invests in Georgia Tech. If it did so, we would be able to reduce tuition significantly.

Financial Aid and Student Debt
We will continue to increase the amount of financial aid available to our students, particularly from endowment gifts to the Michigan Tech Fund. General Fund-supported financial aid has been increased 27 percent in this fiscal year compared to the previous fiscal year to offset tuition increases for those who need it most. It is important to account for the effects of financial aid when considering the cost of attending college.

A related indicator is the amount of debt incurred by students. Among the national universities in Michigan, Michigan Tech students have the lowest personal debt upon graduation.

Fund Raising
I am pleased to report that giving to the Michigan Tech Fund exceeded $22 million during the past fiscal year compared to about $11 million the year before. A major influence on the increase in private giving is reflected in a five-fold increase in planned gifts which will generate nearly $8 million for Michigan Tech's endowment. This commitment by our alumni and friends will allow Michigan Tech to continue investing in our people assets through the establishment of endowed chairs, professorships, scholarships and fellowships. Currently, 83 percent of Michigan Tech's endowed assets are designated for this investment in our faculty, staff and students.

Planning for the next comprehensive fund-raising campaign is underway, and the Michigan Tech Fund is being restructured to prepare for that campaign. Changes include opening an office in Detroit to make access to donors more economical and efficient. One significant aspect of the next campaign will be to increase substantially the permanent endowment for scholarships and fellowships.

We can take pride in the fact that last year, 19 percent of our alumni contributed to the Tech Fund compared to 15 percent alumni contributions to the University of Michigan and 16 percent to Michigan State University. We should also take note that 32 percent of Georgia Tech alumni contributed. Being the best in Michigan is not good enough in this case; we will work with the alumni association to raise the aspiration level among our alumni. We must do so to achieve our endowment goals.

It is encouraging that, in a recent survey, 95 percent of Michigan Tech graduates stated that they would attend Michigan Tech if they had to do it all again. This is an incredibly high percentage and another testament to the overall great feeling alumni have for Tech.

The upcoming comprehensive fundraising campaign will include substantial endowments for scholarships, fellowships, faculty chairs and professorships. That campaign is expected to be completed by Michigan Tech's 125th anniversary in 2010.
It is imperative that we have endowed distinguished faculty chairs and professorships to reward, recruit and keep outstanding faculty. We have a very dedicated faculty which deserves compensation and recognition, part of which can be supported by the endowment.

Building the permanent endowment is a vital necessity, not an option. The upcoming campaign will have this as a very high priority.

Alumni Association
Our alumni association plays important roles in keeping alumni informed and connected. The outstanding Michigan Tech ALUMNUS magazine and Dean Woodbeck's weekly email news are important components in alumni relations. The Alumni Association Board of Directors recently decided to hire an individual to prepare and coordinate alumni volunteers to assist in recruiting prospective students across the nation. The fact that 95 percent of our alumni will testify to prospective students that they would come here again is powerful.

I participated in about three dozen alumni gatherings annually during my first 12 years as president. Those 36 dozen meetings have given me a thorough perspective on how positively our alumni view their Alma Mater. The fact that they contributed $146 million in the most recent comprehensive fundraising campaign is tangible evidence of their appreciation for this special place.

Our alumni reside in some 100 nations. We have developed alumni chapters in several countries and continue to expand our international alumni activities steadily, with the help and guidance of the International Advancement Advisory Committee, chaired by Jim Klungness (Class of '49). Elsie White has done a remarkably fine job of developing alumni relations in Europe, Asia and South America, and our international alumni will play increasingly important roles for their Alma Mater in the years ahead.

Athletics
It is always special to be ranked number 1 nationally, and that is what Coach Kevin Luke and the men's basketball team accomplished this past season. The team was ranked # 1 nationally at the end of the regular season and finished with a record of 29 wins and 3 losses and a team GPA of 3.42. Coach Luke was named the Basketball Times National Coach of the Year as well as regional coach of the year.

Michigan Tech has a strong tradition of fielding nationally-competitive teams and doing so with true STUDENT-athletes (as opposed to athletes who pose as students). Our student athletes are thoroughly integrated into all aspects of university life. Many other universities envy this fine tradition.

This past year, three of our student-athletes achieved the high distinction of being named Academic All-Americans:

1. In women's volleyball, senior Sarah Ahnen was named to the Academic All-America First Team, one of just six players in the entire country to earn the honor. She finished her career at Michigan Tech with a perfect 4.00 cumulative grade point average in business administration.
2. In women's Nordic skiing, senior Jennifer McConville was named to the Academic All-America At-Large Second Team with her 3.99 cumulative grade point average in environmental engineering.
3. And senior J. T. Luginski of the men's basketball team did something no other student-athlete at Michigan Tech had previously accomplished. He not only was a First-Team Academic All-American, but he was also selected as THE Academic All-America Player of the Year in men's basketball among all Division II and III and National Association of Intercollegiate Athletics (NAIA) institutions across the country. He carried a 3.91 cumulative grade point average in mechanical engineering while helping the men's basketball team achieve its #1 national ranking.

The young people I just mentioned represent just three shining examples of the tremendous scholar-athletes we have at Michigan Tech. It is remarkable that 76 of our student-athletes earned the right to be on their conference All-Academic Team last year. And together as a group -- and this number is really something we can be proud of – all of our student-athletes achieved an impressive 3.17 cumulative grade point average.

As far as I have been able to determine during my 12 years here, Michigan Tech is the only college or university in the nation at which student athletes have a higher grade point average than the student body. This reflects the high standards of the University and is a tribute to our coaches and athletic director who recruit and guide our remarkable scholar athletes. By this measure, Michigan Tech is number 1 in the nation.

Leadership
Several individuals have recently accepted leadership positions. Dr. Les Cook is the new Vice Provost and Dean of Student Affairs, succeeding Dr. Marty Janners who has returned to the Biological Sciences faculty. Dr. Mark Plicta is the new chair of the Department of Materials Science and Engineering, succeeding Dr. Cal White who is currently on Sabbatical Leave in Norway. Dr. Michael Neuman, M.D. is the new chair of the Department of Biomedical Engineering succeeding Dr. David Nelson who was the founding chair. Lt. Col. Eric Batway is the new head of AFROTC. Dean Tim Collins retired as head of the School of Technology, and a national search is underway for his successor; meanwhile, Dean Glenn Mroz is serving as acting dean. John Barnes has replaced Darla Olson as head coach of the women's basketball team, and Jamie Russell has replaced Mike Sertich as head coach of the hockey team.

Dan Branagan
In the December 23, 2002, issue of Forbes Magazine, Daniel Branagan, a 1990 metallurgical engineering graduate, was selected as one of the "top 15 people who will reinvent your future." Dan developed a powder metallurgy process that applies a microscopic coating which makes steel much harder and extends engine life and durability. Dan, at age 35, was awarded the Michigan Tech Alumni Association's Outstanding Young Alumnus Award last month. At that time, he stated how several of his faculty mentors at Michigan Tech had helped shape his aspirations and direction. On the surface, what those faculty did and said sounded pretty fundamental, and yet, their words and actions were credited by Dan Branagan as being significant to his success.

This, I believe, is the essential nature of what we do here. It is often not apparent at the time how much impact one has on an individual's life. But Dan Branagan is an example of hundreds and thousands of Michigan Tech students who go on to lead extraordinarily productive lives, in part because of what our faculty and staff do for them. Why do 95 percent of our graduates say they would attend Michigan Tech again if they could live life over? Because, in part, this is a people place where lives are shaped and directed in positive ways. Where faculty and staff go beyond the call of duty on behalf of the students. Where students excel and participate in the production of intellectual properties. In fact, 69 percent of the intellectual properties created last year at Michigan Tech involved either graduate students (42 percent) or undergraduate students (27 percent).

And Michigan Tech is a place where students win national awards and make lifelong friends. It is what we do, the seemingly little things, like taking some extra time to communicate with a student, being there when the student needs you, that make the difference. The willingness of faculty to participate in the Student Enterprise Program, because it is in the students' best interests, even though it is time consuming, makes a tremendous difference.

Student Enterprise Program
I believe that history will show that the Student Enterprise Program was one of the most important innovations in Michigan Tech's first 125 years. This semester there are 17 enterprises with interdisciplinary teams involving 442 students developing products and processes that are of benefit to society. Two additional enterprises are expected to start operations in Spring 2004.

Student Enterprise partner and sponsor corporations for 2003-04 include Cummins Diesel Corporation, Daimler Chrysler Corporation, DENSO North America Foundation, Ford Motor Company, General Motors, Keweenaw Bay Indian Community and the EPA, Kimberly Clark Corporation, Robert Bosch Corporation, the U.S. Army’s Tank and Automotive Command, the Thompson Scholars Program, and Visteon Corporation.

The Student Enterprise Program is a key reason that 27 percent of the intellectual property disclosures at Michigan Tech last year involved undergraduate students. And giving sophomores, juniors and seniors a unique opportunity to learn to establish, manage and develop an entrepreneurial enterprise while still in college is one special reason why students will want to attend Michigan Tech in the years ahead.

Regional Accreditation
At the time of our last North Central Accreditation visit, our new General Education program and plans to improve the library were in states of flux. As a result, NCA required interim progress reports which were developed by Dr. Mary Durfee and the General Education Council and by University Librarian Phyllis Johnson and her staff this past year. I am pleased to report that the Higher Learning Commission of the NCA approved these reports and that no further reports on General Education or the library are required until the next regularly scheduled NCA visit in 2007-08. I want to thank all of the faculty and staff who have made our General Education program a success and thereby added to the vitality and quality of Michigan Tech’s undergraduate program. Likewise, I thank Phyllis Johnson and the outstanding library staff for planning the addition of the Opie Library which is now under construction and the attendant improvements in our library’s systems and capabilities.

NSF Career Awards
This past year, two Michigan Tech faculty members joined 15 of their colleagues who since 1995 have received the prestigious National Science Foundation Career Award. They are Assistant Professor Gerry Tian in the Department of Electrical and Computer Engineering and Assistant Professor Chandrashekhar Joshi in the School of Forest Resources and Environmental Science.

Facilities
To support the Enterprise Program, the Advanced Technology Development Center (ATDC) is under construction on the southwest corner of campus, funded entirely by the Ford Motor Company Fund and the U.S. Economic Development Administration. The $3.5 million ATDC will be the home of the Enterprises as well as other aspects of Michigan Tech's research and corporate services, will be part of the Michigan Tech Enterprise SmartZone, and is expected to be completed next spring.

Also under construction are the Opie Library and the Rehki Computer Science Hall which comprise the $35 million Phase I of the Center for Integrated Learning, contiguous to the Van Pelt Library and Fisher Hall. Completion of Phase I is expected in the spring of 2005. Phase II of the Center for Integrated Learning will begin when we have additional funding of approximately $35 million from the state and private sources; that will involve adding another wing on the east end of Fisher Hall and completely renovating Fisher Hall.

We also expect to build a cross walk over Route 41 connecting Fisher and Wadsworth Halls. Meanwhile, Wadsworth Hall will be completely renovated over a 21-month period, with the construction activity phased to allow continuous occupancy. The renovations will cost approximately $31 million, to be funded by a bond issue, debt serviced by student room fees.

Planning is underway for expansion of the Memorial Union Building which will include connecting it to the Library, which is in the process of being connected to the west end of Fisher Hall as part of the current Center for Integrated Learning construction project. The Memorial Union project will be a self-liquidating project financed with student fees.

Planning is also underway for a new home for the School of Business and Economics adjacent to its current home, a new home for the Seaman Mineralogical Museum on Quincy Hill and a Child Care Center on campus.

Budget Process
This past year was a time of extraordinary anxiety and stress for all of us, given the economic forces at work. I thank all who participated in the arduous budget development process, who were willing to put in the extra time and effort on behalf of the institution. I especially thank the members of the Budget Reduction Advisory Committee, chaired by Provost Kent Wray, for their invaluable yet often thankless efforts that led to a balanced budget for this fiscal year.

We do have a balanced budget. Among the 15 public universities in Michigan, we also have the lowest long-term institutional debt, and the lowest administrative costs and operating and maintenance costs as percentages of our general fund budget. We have a strategic planning process that is working and getting better each year. We will continue to use the strategic plan to guide our decisions and to make steady progress toward our goals.

Accomplishing Our Mission
Faculty and staff this week are receiving a booklet outlining scores of success stories at Michigan Tech over the past year. Time limitations today have prevented me from even making a dent into all of our points of pride. I encourage you to read the Points of Pride publication and celebrate the outstanding achievements of our colleagues.
Those points of pride clearly support Michigan Tech’s mission to prepare our students to create the future. That mission is being accomplished through the Student Enterprise Program, senior design projects, our fine arts programs and dozens of other special opportunities provided to Michigan Tech students that develop creative as well as analytical and critical thinking skills.

Our research activities enhance the accomplishment of Michigan Tech’s mission. It is essential that research and graduate programs continue to grow steadily. Moving from 15-week to 14-week semesters next fall should contribute to our capacity to pursue research and scholarship.

We will continue to enhance facilities that support research, scholarship and learning, develop endowed faculty chairs and professorships, increase endowed scholarships and fellowships, and increase compensation for faculty and staff to nationally competitive levels.

Seven years from now, the Michigan Tech community will celebrate the 125th anniversary of the founding of this institution. What we do between now and 2010 will effectively determine Michigan Tech’s trajectory for decades to come. Each of us has important roles to play as we work together to be the Best of the Best, and we'll get the job done one deliberate step followed by the next deliberate step. The pace of those steps will continue to accelerate as we march together, in step, toward the bright horizon awaiting Michigan Tech.

It has been my privilege to serve as a member of the Michigan Technological University team for the past 12 years. This is a remarkable institution with a wonderful history and set of traditions. It is also an increasingly agile and innovative university that is making its mark internationally as well as in the Upper Midwest. Yes, 95 percent of our alumni say that they would choose to attend Michigan Tech if they could do it all over again, and I too would choose to be a member of the Michigan Tech team if I could do it all over again.

Let’s Go, Tech !!