National Municipal Bond Volum e 20 0 0 -20 0 7 Source: Thomson - - PowerPoint PPT Presentation

National Municipal Bond Volum e 20 0 0 -20 0 7

Source: Thomson Financial

Sources: Public Financial Management, Inc.; SDC (Years 2005 & 2006); Ipreo: Muni Data and Analytics System (Year 2007)

National Higher Education Volum e

$31,800,000,000 $29,500,000,000 $30,100,000,000

NJ Annual Bond Volum e

Sources: Public Financial Management, Inc.; SDC (Years 2005 & 2006); Ipreo: Muni Data and Analytics System (Year 2007)

$16,020,700,000 $9,991,900,000 $16,301,500,000

Public Institutions Project Amount

Montclair State University Refunding $ 6,150,000 New Jersey City University Refunding $ 17,910,000 Rowan University Refunding $ 121,355,000 Kean University (three issues) 2 residence halls; parking deck; $ 274,951,666 refunding; lease purchase Thomas Edison State College Lease purchase $ 2,700,000 The Richard Stockton College of NJ Various Capital Projects $ 40,250,000

Private Institutions Project Amount

Centenary College Refunding of a bank loan; $ 4,784,617 capital improvements Institute for Advanced Study Academic building addition; $ 20,000,000 network and utility upgrades; renovations to academic buildings Drew University Residence hall; renovations $ 29,135,000 to existing dorms; capital improvements; equipment Princeton University (two issues) Refunding; capital improvements $ 392,620,000 Rider University Residence hall; parking facility; $ 22,000,000 infrastructure improvements Georgian Court University Wellness center; refunding; office $ 28,030,000 (two issues) space Stevens Institute of Technology Refunding $ 71,060,000 Saint Peter’s College (two issues) Refunding $ 39,901,926

Grand Total: $ 1,070,848,209

20 0 7 Transactions

Princeton University

Butler College Dorm itory

Princeton University

Chem istry Building

Princeton University

Lewis Library

Princeton University

SEAS-ORFE Building

Princeton University

Soccer Stadium

Institute for Advanced Study

Sim ons Center for System s Biology

Drew University

New Student Housing

Kean University

New Residence Halls and Dining

Rider University

New Student Housing

Georgian Court University

Wellness Center

The Richard Stockton College

• f New Jersey

Housing V Phase II

NJEFA Issuance Overview

Source: NJEFA

By Number of Issues By Par Amount (in Million $)

* Includes par amount issued in 1969 ** Includes total par amount issued in 2007

Source: NJEFA

NJEFA Bonds Issued by Decade vs. Last 8 Years

1,000 2,000 3,000 4,000 5,000 6,000 7,000

In Million $

1970s* 1980s 1990s 2000s**

$6,613,668,956 $2,505,433,659 $884,117,000 $425,931,000

2,000 4,000 6,000 8,000 10,000 12,000 14,000 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06

$million

PRIVATES PUBLICS

Capital Investm ent Soars as Universities Com pete in Marketplace

U.S. Higher Education Debt ( $ m illion) Rated By Moodys

Source: Moody’s Investors Service

FACTORS DRI VI NG DEBT: States Cut Funding Low Borrow ing Rates Baby-boom 2 enrolls Research Funding Expanded Philanthropy/ Stock Gains More Sophisticated Managem ent

64,007 379,686

2005

65,105 385,612

2006

12,526 (23.82%) 49,682 (14.79%)

Cumulative Increase

61,428 379,447

2004

58,277 372,696

2003

55,866 361,757

2002

53,205 346,277

2001

52,579 335,930

2000 Total Degrees/ Certificates Total Enrollments

NJ Enrollm ent: Degrees Conferred 20 0 0 -20 0 6

Source: New Jersey Commission on Higher Education

Steady Dem and for College

Sources: NJ Association of State Colleges and Universities; National Center for Education Statistics, December 2007

Actual and Projected Num ber of NJ Public High School Graduates 2 0 0 1 -0 2 through 2 0 1 6 -1 7

Sources: The College Board; U.S. Census Bureau, 2006

Earnings Prem ium Relative to Price of Education

Education, Earnings and Tax Paym ents

Sources: The College Board; U.S. Census Bureau, 2006; Internal Revenue Service, 2006; McIntyre et al., 2003

Sources: The College Board; U.S. Census Bureau, Current Population Survey, 2006 Annual Social and Economic Supplement

Public Assistance Program s

Econom ic Benefits to Others

Sources: The College Board; Moretti, 2004

Sources: The College Board; Bureau of Labor Statistics, 2007

Volunteerism

Earnings Over Tim e by Education Level and Gender

Sources: The College Board; National Center for Education Statistics (NCES), 2007, Indicator 20

Ages 35-64 Ages 25-34

Adults holding a college degree

Measuring Up 20 0 6

Sources: “Measuring Up – 2006” – The National Center for Public Policy and Higher Education; Organisation of Economic Co-operation and Development (OECD). Data represent the percentage of adults with an Associate’s degree or higher in 2003

College Participation College Completion

Ages 18-24

Sources: “Measuring Up – 2006” – The National Center for Public Policy and Higher Education; Organisation of Economic Co-operation and Development (OECD). Data are for 2003.

Measuring Up 20 0 6

Sources: Jobs for the Future, Organisation of Economic Co-operation and Development (OECD), Education at a Glance 2006; Data were analyzed by the National Center for Higher Education Management Systems and the Delta Project on Postsecondary Costs for Making Opportunity Affordable, an initiative supported by Lumina Foundation for Education

Differences in College Attainm ent

Sources: Jobs for the Future; U.S. Bureau of Labor Statistics; Data were analyzed by the National Center for Higher Education Management Systems and the Delta Project on Postsecondary Costs for Making Opportunity Affordable, an initiative supported by Lumina Foundation for Education

Changing Workforce Needs

US Losing Role as Leading Destination for Foreign Students

Sources: Moody’s Investors Service, 2008 Higher Education Outlook; “International Student Mobility: Patterns and Trends” as published by The Observatory on Borderless Higher Education in September 2007

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 US UK Australia Germany France China Japan Canada New Zealand

% of Students Studying Abroad in Top Destination Countries

The Degree Gap

Sources: Jobs for the Future; U.S. Census Bureau: 2005 American Community Survey; Data were analyzed by the National Center for Higher Education Management Systems and the Delta Project on Postsecondary Costs for Making Opportunity Affordable, an initiative supported by Lumina Foundation for Education

New Jersey

Sources: The College Board; Snyder et al., 2006; U.S. Census Bureau, 2005

College Enrollm ent by Race/ Ethnicity

Sources: Jobs for the Future; U.S. Census Bureau 2005 ACS, Population Projections, NCES, IPEDS Completions Survey; Data were analyzed by the National Center for Higher Education Management Systems and the Delta Project on Postsecondary Costs for Making Opportunity Affordable, an initiative supported by Lumina Foundation for Education

The Degree Gap

Sources: Jobs for the Future; U.S. Bureau of Labor Statistics; The College Board; Data were analyzed by the National Center for Higher Education Management Systems and the Delta Project on Postsecondary Costs for Making Opportunity Affordable, an initiative supported by Lumina Foundation for Education

The Price of College is Going Up

• 5%

0% 5% 10% 15% 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

% Change State Approps % Change Tuition and Fees

Tuition Increases Com pared to Changes in State Appropriations

* Moody’s rated public institutions

Sources: Moody’s Investors Service; Center for the Study of Education Policy, Illinois State University; The College Board

New Jersey Higher Education Spending

Source: Chronicle of Higher Education

• FY 2007 - $1.97 billion - operating expenses
• FY 2006 - $401 million - student aid
• FY 2005 - $867 million - research and development

$190,000 $210,000 $230,000 $250,000 $270,000 $290,000 $310,000 F Y 1 9 9 8 F Y 1 9 9 9 F Y 2 F Y 2 1 F Y 2 2 F Y 2 3 F Y 2 4 F Y 2 5 F Y 2 6 F Y 2 7 F Y 2 8

Appropriation Inflation Adjusted

State Support is Declining

Source: New Jersey Association of State Colleges and Universities; Governor’s Budget Recommendations; US Department of Labor’s CPI Detailed Report

$249,911,000 $224,932,000

Direct State Appropriations Adjusted for Inflation

3.1 1.11 1.52 62 2,806

All Privates

2.6 .71 1.35 67 3,772

NJ Privates

3.1 1.02 1.52 63 2,802

All Privates

5.6 3.7 1.9 Annual Operating Margin (%) .87 1.17 .89 Expendable Resources to Operations 1.43 1.67 1.56 Expendable Resources to Direct Debt 76 58 70 Primary Selectivity (%) 3,892 2,845 4,164 Median FTE Enrollment (number may be estimated)

NJ Privates All Privates NJ Privates

2006 2005

Private Institutions

Source: Moody’s Investors Service

2004

2.2 .4 1 75.3 13,570

All Publics

6.5 .41 .4 50.8 6,558

NJ Publics

2 .4 1 74.5 13,756

All Publics

6.5 1.9 3.4 Annual Operating Margin (%) .41 .41 .37 Expendable Resources to Operations .3 .9 .4 Expendable Resources to Direct Debt 50 72.8 53.2 Primary Selectivity (%) 6,745 13,788 6,896 Median FTE Enrollment (number may be estimated)

NJ Publics All Publics NJ Publics

2006 2005

Public Institutions

Source: Moody’s Investors Service

2004

Moody’s 20 0 8 Outlook - Stable

Strengths

• Strong financial performance
• Stable to growing enrollments
• Strong investment returns
• Balanced operating performance
• Philanthropic support

Challenges

• Regional demographic shifts
• Increased governmental scrutiny focused on

accountability, affordability and transparency

• Restricted/ declining governmental support

for operations and research

• Growing competition

Source: Moody’s Investors Service

* Moody’s rated public institutions

“One Ph.D. will generate em ploym ent of 10 engineers. Ten engineers will generate em ploym ent for 150 technicians and skilled workers.”

Jesse Hobson, Former President of the Armour Research Foundation and the Stanford Research Institute

Quoted in A Call to Action by The Citizens Committee for Higher Education in New Jersey, Princeton, New Jersey, January 1966

“The key strategic resource necessary for prosperity has become knowledge itself in the form of educated people and their ideas.”

J.J. Duderstadt and F.W. Wom ack Beyond the Crossroads: The Future of the Public University in America

Quoted in Rising Above the Gathering Storm: Energizing and Employing America for a brighter Economic Future, by National Academy of Sciences, National Academy of Engineering, and Institute of Medicine of the National Academies, 2007

Thank You