January 7, 2008 With the start of the new year, I would like to bring you up to date on some of the exciting developments at UNF that promise to make 2008 one of the most challenging and interesting years in our history. Education is an economic engine Florida¿s system of higher education is often referred to as an economic engine for the state. While the earning potential of our graduates is one measure of such an engine, the actual economic impact of a university is another. Recently, Drs. Paul M. Mason and Louis A. Woods of the Coggin College of Business completed a study on UNF¿s direct economic impact. With about 1,800 employees and more than 16,000 students, UNF had an annual $1 billion economic impact on the region. UNF is easily one of Northeast Florida¿s 10 largest businesses and directly influences the economic health of the region. There is no doubt, as UNF flourishes and grows it bolsters the economic prosperity of the region. Coggin makes Princeton Review Speaking of the Coggin College of Business, it¿s important to note that the Princeton Review placed the college among the ¿Best 290 Business Schools¿ in its recent 2008 edition. The editors describe the business program as ¿an excellent choice for the sensible business student.¿ The lists are based on surveys of 18,000 students attending business schools across the country. There are about 1,500 business schools in the United States. The mention in this national publication once again underscores the quality of a UNF education and our commitment to making students our first priority. Construction begins on residence hall The economic impact of UNF must also take into account the building projects that are transforming our campus. We recently broke ground on Osprey Fountains, the tallest, largest-capacity and most expensive building project in University history. This $86 million project is scheduled to open in 2009 and will house 1,000 students in two five-story towers. The towers will be connected to a two-story commons building, which will feature a fitness center, game room, activities room and convenience store. Osprey Fountains will be located on a new roadway called Osprey Ridge Road on the eastern edge of campus near Kernan Boulevard. This project is financed by long-term bonds to be paid from housing revenues. When the residence hall is completed, we will be able to increase the number of on-campus residents to about 3,300. We¿re excited by the opportunity to expand the UNF experience to an increasing number of our students. We invite you to visit campus and see some of the exciting new developments. Progress continues on the Student Union and the addition to the Brooks College of Health. We expect to break ground this year on a new College of Education and HumanServicesBuilding and will be finalizing the purchase of the AuchterBuilding on Kernan Boulevard. The building will be re-named Alumni Hall and will be the future home of Institutional Advancement including Alumni Services. This is your University, and you can be proud of what we are accomplishing together. State Budget contraints affect UNF We are all aware that the downturn in the housing market has slowed the rate of growth in Florida and negatively affected state revenues. This has a ripple effect on all public universities which rely on the state for about 75 percent of the cost of educating each student. Anticipating a reduction in revenues from Tallahassee, UNF was well positioned this fiscal year to trim operations without affecting the basic academic functions of the University. However, if the downturn continues through this year, which is predicted by most state officials, UNF will face more significant cutbacks. We have already limited employee travel and professional development opportunities. Sadly we have also had to forego pay increases for faculty and professional staff who work so hard to make UNF the best. Last year¿s budget constraints forced UNF to reduce the number of freshmen we enrolled for the first time since we became a four-year institution in 1984. Continued state cutbacks for education may force us to examine additional enrollment limits this year. This is unfortunate considering our obligation to expand access to higher education and increase the percentage of our residents with bachelor¿s degrees. The expected reduction in state revenues highlights our increasing reliance on private dollars. The more than 200 endowed accounts held by the UNF Foundation total nearly $90 million. The growth in these accounts provides scholarships, professorships and program enhancements we could not accomplish without your continued help. A UNF education is still a bargain Because of the economic realities we are facing, UNF, along with all other state universities, increased tuition by 5 percent effective Jan. 1. While we hate to increase tuition, a UNF education remains a bargain. Among the 50 states, Florida ranked last in tuition charged for its public universities. Some Florida families actually pay more for child care than they do for college tuition at a state university. This tuition level must change if the state¿s public universities are to educate the workforce of tomorrow. What may appear to be a bargain today could end up being very costly to our future if our young people are unable to compete in the global economy. Despite the challenges we face in the new year, I¿m convinced UNF will make significant strides in enhancing the educational experience we offer our students. I¿m convinced of this because I know how deeply you care about the University and the students we serve. Sincerely, John A. Delaney University of North Florida