1. REVENUE GENERATION TASK
FORCE MEETING
March 22, 2013 | 3 to 5 p.m.
LSU AgCenter, 214 Efferson Hall

2. Lee Griffin, Finance and Revenue Sub-Committee Co-Chair
WELCOME AND
INTRODUCTIONS

3. Meeting Information
3
 This meeting is streaming live at:
www.lsu.edu/tat
 For more information about this task force and the
Transition Advisory Team visit:
www.lsu.edu/lsu2015

4. Today’s Objectives
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 Hear from LSU Vice-Provost for Academic Affairs Gil Reeve
about online learning
 Discuss other universities’ revenue enhancement initiatives
 Review the Department of Residential Life’s Vision 2020
Strategic Plan
 Discuss Vice Chancellor for Student Life & Enrollment Services Dr. Kurt
Keppler’s comments about the current and future state of LSU-BR’s on-
campus housing
 Examine LSU property management
 Public private partnership trends in higher education
 Identify key priorities and recommendations to date

5. Gil Reeve, LSU Vice-Provost for Academic Affairs
ONLINE LEARNING

6. Dr. Christel Slaughter, SSA Consultants
REVENUE ENHANCEMENT
INITIATIVES AT OTHER
UNIVERSITIES

7. “Responding to Budget Cuts with Alternative
Sources of Revenue” | Research Questions
7
 What initiatives are institutions planning on to generate
revenue given changing budget dynamics?
 What efforts have institutions already implemented?
 How successful have these programs been at generating
revenue?
 What was the process involved in implementing these
initiatives; who was involved, what was the timeline, what
were the costs?
 How have institutions identified and assessed potential new
revenue streams?
Source: Education Advisory Board

8. Ideas for Enhancing Alternative Revenues for
Higher Education

9. New Educational Revenues
Capturing High-Growth Student Populations and Instructional Services
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 International student recruitment
 Applied and professional master’s
 Distance learning and course licensing
 Summer and intersession blended learning
 Customized corporate training
 Testing and certification
 Distance learning articulation agreements
 Senior enrichment programs
 Faculty consulting
Source: Education Advisory Board

10. Academic Entrepreneurship Infrastructure
Critical Capabilities for Identifying, Launching and Scaling Viable Programs
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 Business planning support
 Fast-cycle program launch
 Cost-effective marketing
 Curriculum development
 Enrollment management
 Outsourcing and joint venture models
Source: Education Advisory Board

11. Branding, Licensing and Affinity
Expanding Product Categories and Sellable Space
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 Increasing branded merchandise demand
 Alumni, parent and community affinity programs
 “STEALTH” advertising and sponsorship
 Diversifying athletics revenues
Source: Education Advisory Board

12. Auxiliary Services
Increasing Demand While Reducing Fixed Costs
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 Premium-priced healthy and convenient foods
 Future bookstore
 Shared-cost luxury amenities
 Favorable vendor rebates
Source: Education Advisory Board

13. Student Fees
Charging for Convenience and Choice
13
 Convenience fees
 Sharing costs of inefficient scheduling
 Differential instructional cost
Source: Education Advisory Board

14. Campus Operations
Turning Cost Centers into Revenue Producers
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 Campus health center
 Selling administrative services
 Surplus goods disposal
 Sustainable energy purchase power agreements
Source: Education Advisory Board

15. Facilities and Real Estate
Generating Cash Flow from Underutilized Space
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 Event rentals
 Development of joint ventures
 Long-term leasing
 Asset acquisition and disposal
Source: Education Advisory Board

16. Dr. Christel Slaughter
LSU TODAY

17. Department of Residential Life

18. Department of Residential Life
 6,000 students live on
campus
 85 percent of
freshmen live on
campus
 Residence halls have
reached full capacity
 700 students on waiting
list
 Revenue neutral
 Would require
upperclassmen and
graduate students to
move off campus
LSU-BR Campus Housing Snapshot
Current Issues with Requiring
Freshmen to Live on Campus

19. Department of Residential Life
Vision 2020 Strategic Plan
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 Housing master plan
 Identified residence halls to renovate – as one
renovation completes, another hall is taken “offline”
to begin its renovation.
 Fall 2012: Laville Honors College
 Fall 2013: Annie Boyd Hall (adding 160 beds)
 New Residence Hall Project
 660 new beds
 August 2015: 330 beds
 2016: 330 beds

20. LSU Property Management

21. An Analysis of Public Private Partnerships in
Higher Education

22. Public Private Partnership Overview
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 Contractual agreement between a public agency
and private partner to achieve all, one or a
combination of the following:
 Monetize an existing infrastructure asset
 Design, construct, finance, and/or operate and
maintain an infrastructure project
 Transfer risks
 A public private partnership is not an outright sale
of a public asset.
Source: William Blair & Company

23. Advantages and Benefits
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 Private sector financing
 Equity, longer-term debt and wide array of financing tools
 Design-build
 Reduced construction costs and faster project delivery
 Operations and Maintenance Savings
 Long-term Risk Allocation and Transfers that allow the
public agency to better concentrate on its core functions
 Access to the best operational expertise and innovative
technology
 Long-term contract provides tax benefits to private partner
that can flow through savings to public agency
Source: William Blair & Company

24. Public Private Partnership
Lessons Learned
Valuation Execution Use of Proceeds
Internal due diligence Thorough internal and external due
diligence
Long-term: debt reduction,
capital projects, pension
funding, revenue replacement
Upfront analysis/modeling Gradual increases in user fees Hybrids possible
Understand value-drivers Customer service impact Avoid spending upfront
proceeds for short-term
purposes
Robust and transparent bidding
process
Don’t rush operational and
technology transitions
Create stakeholder value
Manage bidder and stakeholder
expectations
Value for Money (VFM)
Understand value of risk transfer
Source: William Blair & Company 24

25. Public Private Partnership
Lessons Learned (continued)
Source: William Blair & Company 25
 Knowledge is power
 Transparency, terms and timetable
 Stakeholder communications strategy
 Managing the message and expectations
 Monetary value + favorable market conditions +
political will = SUCCESS

26. Group Discussion
KEY FINDINGS AND
RECOMMENDATIONS TO DATE

27. Save the Date
Next Meeting:
April 15, 2013
LSU AgCenter, 212 Efferson Hall
LSU-Baton Rouge

28. Lee Griffin, Finance and Revenue Sub-Committee Co-Chair
ADJOURNMENT