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       "If we have this tuition increase that we are asking you for today, that would bring
in $20 million which means that we still have to reallocate $12 million internally to get a
flat bottom line. So, what we are asking for in this tuition is not enough to cover the
needs that we have, and so we are continuing to look at other segments.

       "We are still a very good deal! I don't like talking about percentages because that
can be misleading. In some states their tuition is a lot higher than ours. A small
percentage of increase will give them more money than we get for a large percentage
increase. But if you look at Kiplinger's Report, based on actual annual cost per student,
we are 4th out of 500 best deals. And among our benchmarks, we are the best deal.

       "What we are trying to do as we go through the process is to figure out ways that
we can increase the tuition and fees that we feel we can justify and rationalize. So, we
are looking at cost price of value this year. We are aligning the cost with the price. It
costs more to teach upper-level students than lower-level students. It costs more to teach
engineering than it costs to teach other disciplines. We are charging differential tuition
and fees for those programs that have the higher costs. In addition, we are taking one
differential tuition and fees and returning those to the departments so that they can use
those to increase the number of faculty, increase the number of teaching assistants, so that
they can do what they need to do - to do their job. And we want to decentralize that
decision and give them the ability to enhance their programs in the way they see fit, so
we had to come up with ways to give them some additional revenue.

       "But to teach more students with less state funds, here are some of the things that
we've done, not an exhaustive list, but we went to the Provost Model which saved us $2
million per year. Since July 1, 2001 we have eliminated 293 staff positions, including at
the hospital. We have not eliminated any faculty positions, but we have had to keep
several faculty lines open in departments in order to meet budgets.

       "We have allocated costs out to self-supporting units so they can charge them out
in contracts so they can cover those in their pricing. We have refinanced bonds. We
have initiated a campus improvement to reengineer the Physical Plant Department, which
is one of our largest financial investments on this campus. We teach lean manufacturing
techniques around the world; why not use those same lean techniques on our campus, and
so that process has been going on.

       "Mitch Barnhart gave us a million dollars from athletics for scholarships. And,
we have been controlling our health costs. That's another place if you look at us in a box,
any money we have to send to outside health insurance agencies just goes away, and we
need to retain it.

       "We have done, I think, a spectacular job with this. We initiated a Health
Literacy Program. We initiated a Reach Program, where we hired three pharmacists to
go around and work with our employees and our retirees to keep their prescription drug
costs down. We have a Wellness Program that is picking up. If you look at this slide and