Quality of LifePrivate Source Revenue

Develop Core of Nationally Recognized Programs

Improve Research and Intellectual Property Productivity

Recruit High Achieving Students from Diverse Backgrounds

Master Plan Honors CampaignProgram Investment/Reinvestment

Stem Cell Research Facility

New Program Development

Gateway PlanAthletics Campaign

New Program Development

Major Campaign

This Year and Beyond

Overall (n = 139)

4%

6%

10%

16%

17%

19%

24%

32%

62%

0% 10% 20% 30% 40% 50% 60% 70%

NJIT was too expensive

I wanted a smaller school

I wanted to be closer to home

I wanted a larger school

NJIT doesn't offer the program I want

I wanted to be farther away from home

The school I will be attending offered me morefinancial aid

I wanted to attend a more prestigious school

NJIT's location doesn't appeal to me

2005: Why did you decide not to attend NJIT?

I wanted to attend a more prestigious school.

Prestige: level of respect at which one is regarded by others

New Flexible Plastic Solar Panels Are Inexpensive

And Easy To Make

NJIT Campus Gateway Plan

NJIT Campus Gateway Plan Objectives

• Grow the Greek community to levels above 1990 on a normalized basis

Members/Greek org

1990 2006

30 18

• Enhance the physical/social/recreational environment of the Greek community

• Ensure viability of the Greek community

• Develop a “college town” neighborhood with amenities for students, faculty, staff, community

• Ensure a development effort that enhances NJIT and the community

0

5

10

15

20

25

30

1990 2006

Year

Greek Membership

Members/Org

Master Plan

Greek Village MLK Gateway

St. Michael’s

University Park

MLK Pedestrian “thread”

FINAL DRAFT

Conceptual Redevelopment Master Plan

for an Area in Need of Rehabilitation

September 2007

Financial Business Terms Book

Confidential Proprietary Commercial Information

September 2007

N J I T SUMMARY METRICS 10/4/07

incl Parking

Section Building Type Levels/ Size SF Hard Cost psf Hard Cost Stabilization Date

MLK Gateway A thru G Retail/ Housing see detail 809,550 $139.88 $113,236,532 Q-1/ Year 6Cinema

University Park H thru L Retail/ Housing( K excluded ) Hotel / Academic see detail 346,300 $288.28 $99,832,005 Q-1/ Year 6

Greek Village M thru R Retail/ Housing see detail 153,880 $273.93 $42,151,742 Q-1/ Year 5( M excluded ) Greek Houses

Academic

St. Michaels S Doctors Offc / see detail 116,250 $210.00 $24,412,500 Q-1/ Year 5( T & U excluded ) Retail

1,425,980 $196.10 $279,632,779

Plus Soft Costs, Financing, FFE $76,811,922Plus Marketing, T.I. & Brokerage for Retail Spaces $21,982,516

$265.38 $378,427,216

Assumed @ $100 x Footprint SF as applicable Plus MLK Gateway Site Acquisition Cost $22,680,700Plus University Park Site Acquisition Cost $10,475,200Plus Greek Village Site Acquisition Cost $0Plus St Michaels Site Acquisition Cost $2,500,000

GRAND TOTAL : $290.38 $414,083,116

P L U S - SF TOTAL COST

"Other" Brownstones on MLK 106,932 $40,626,250

Total w/ "Other MLK Brownstones" 1,532,912 $454,709,366

Next Steps

•City develops “top level” redevelopment plan encompassing NHA property, Gateway footprint, Westinghouse, area north of Orange to tracks by about Dec 1st for submission to Municipal Council

•JLL explores “incentive” funding to improve IRR•Tax abatement and exemptions•Federal assistance•State assistance•CRDA

•Establish governance structure

•Multiple redevelopers named (NHA, NJIT, others)

•NJIT redevelopment plan becomes part of RDA

Proposed Plan

Athletics / Recreation Facility

Potential Academic Tower

New Student Housing

Gateway Plan mixed use Greek Village

New Tiernan gateway

Academic Space Expansions

New Central Green

Library, CAB and service core expansion

York Center and parking garage expansion

New Academic Facility

Central High School

Gateway Plan hotel / conference center

Existing Plan 2007

Lock Street

Wa

rre

n S

tre

et

Martin Luther King Boulevard

Ce

ntr

al

Av

en

ue

Ra

ym

on

d B

lvd

.

Summit St.

Colden

Ne

w S

t.

Lock Street

Wa

rre

n S

tre

et

Martin Luther King Boulevard

Ce

ntr

al

Av

en

ue

Ra

ym

on

d B

lvd

.

Summit St.

Colden

Ne

w S

t.

The Newark Institute

Product & Process R&D

Pilot-scale Bio-production Center

Technology Showcase

Business Development Support

Clinical Trial Support

Academic Research Stimulus

www.newarkinstitute.org

FY2008 Revenue Operating Budget

Restricted Programs, $64,600

24%

Other Revenue Sources, $34,792

13%State Appropriations,

$71,097 27%

Tuition and Fees, $95,038 36%

Revenue = $265,527($000's)

Comparion of CPI Adjusted Value of Base Appropriation and Tuition &

Fee Inc ome per FTE FY94-FY07 (000's)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

FY 94 FY 95 FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07

CPI Adjusted Value of State Base Appropriations Per Full-Time Equivalent Students

CPI Adjusted Value of Tuition & Fee Income Per Full-Time Equivalent Student

CPI Adjusted Value of Tuition, Fee & Base State Appropriation Per Full-Time Equivalent Student

Comparison of Base Appropriation and Tuition & Fee Income

per FTE FY94-FY07 (000's)

$5,000

$7,000

$9,000

$11,000

$13,000

$15,000

$17,000

$19,000

$21,000

$23,000

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

Base Appropriation $ Per Full-Time Equivalent Student

Actual Tuition & Fee Income Per Full-Time Equivalent Student

Tuition, Fee & Base State Appropriation Per Full-Time Equivalent Student

State appropriations per student have not changed in real $$; very best case is they stay flat; pressure on state budget is to higher ed appropriations

Corzine to Cabinet: Find $3 billion in budget cutsOnly school aid, rebates appear safe as governor looks to avert fiscal disaster next year Saturday, October 13, 2007

FY2008 Revenue Operating Budget

Restricted Programs, $64,600

24%

Other Revenue Sources, $34,792

13%State Appropriations,

$71,097 27%

Tuition and Fees, $95,038 36%

Revenue = $265,527($000's)

Percent of Educational Costs FY94-FY07

30%

35%

40%

45%

50%

55%

60%

65%

70%

FY94 FY96 FY98 FY00 FY02 FY04 FY06

State Percentage Student Percentage

Comparison of Base Appropriation and Tuition & Fee Income

per FTE FY94-FY07 (000's)

$5,000

$7,000

$9,000

$11,000

$13,000

$15,000

$17,000

$19,000

$21,000

$23,000

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

Base Appropriation $ Per Full-Time Equivalent Student

Actual Tuition & Fee Income Per Full-Time Equivalent Student

Tuition, Fee & Base State Appropriation Per Full-Time Equivalent Student

About 65% of the revenue to deliver the educational program comes from tuition and fees.

Pressure is to

tuition increases; additional revenue comes from additional enrollment

Enrollment increase through

•Marketing

•Recruiting

•MS programs

•“New” programs (I want a larger school; NJIT does not offer the program I want)

"Peer" Enrollments

Institution Name Fall 00 Fall 05 Fall 06% Chng 00 to 05

% Chng 05 to 06

% Chng 00 to 06

Drexel University 13128 18466 19845 40.7% 7.5% 51.2%University of Missouri-Rolla 4626 5600 5858 21.1% 4.6% 26.6%Georgia Institute of Technology 14805 17135 17935 15.7% 4.7% 21.1%Stevens Institute of Technology 4121 4690 4829 13.8% 3.0% 17.2%Carnegie Mellon 8514 10017 9841 17.7% -1.8% 15.6%Illinois Institute of Technology 6003 6472 6795 7.8% 5.0% 13.2%Florida Institute of Technology 4248 4745 4741 11.7% -0.1% 11.6%NYIT 9307 10203 10212 9.6% 0.1% 9.7%Cooper Union 906 1008 990 11.3% -1.8% 9.3%University of Alabama in Huntsville 6563 7084 7091 7.9% 0.1% 8.0%University of Delaware 19072 20982 20380 10.0% -2.9% 6.9%University of Maryland-Baltimore 5337 5526 5498 3.5% -0.5% 3.0%Virginia Tech 27869 27979 28470 0.4% 1.8% 2.2%Clemson University 17465 17165 17309 -1.7% 0.8% -0.9%New Jersey Institute of Technology 8820 8058 8209 -8.6% 1.9% -6.9%Rensselaer Polytechnic Institute 8022 6514 7433 -18.8% 14.1% -7.3%

New Jersey Enrollments

2002 2006 % Change

Stockton 6,538 7,212 10.3%Montclair 14,673 16,076 9.6%Kean 12,779 13,050 2.1%Ramapo 5,494 5,499 0.1%TCNJ 6,948 6,934 -0.2%Rowan 9,685 9,578 -1.1%Wm. Pat 10,924 10,599 -3.0%Rutgers 51,480 49,760 -3.3%NJCU 9,097 8,522 -6.3%NJIT 8,828 8,209 -7.0%

136,446 135,439 -0.7%

Community Colleges 138,924 154,085 10.9%

Independents 60,315 65,508 8.6%

Data from CHE report

Program Changes from 2000 to 2006

Institution Name Added RemovedDrexel University 21 1University of Missouri-Rolla 15 0Georgia Institute of Technology 7 2Stevens Institute of Technology 12 0Carnegie Mellon 51 2Illinois Institute of Technology 22 6Florida Institute of Technology 17 3NYIT 10 8Cooper Union 0 0University of Alabama in Huntsville 3 0University of Delaware 8 0University of Maryland-Baltimore 6 1Virginia Tech 9 3Clemson University 12 1New Jersey Institute of Technology 3 0Rensselaer Polytechnic Institute 13 0

Competitor Programmatic Strategies

Expand into sub-disciplines: subdividing

Extend program range into non-technical areas: broadening

Measured development toward new, “traditional” degrees

In addition

Invigorate/reinvigorate programs

Conclusions

“Business” is different than 15 years ago

We need to behave as a tuition driven institution

Need to be competitive

Environmentally (campus physical plant/college neighborhood/student life)

Programmatically

Intended Major Interest

Business Management 17%

Health Professions 16%

Education 11%

Visual and Performing Arts 9%

Engineering 7%

Biological and Biomedical Sciences 5%

Total 65%

NJ 2007 College-Bound SeniorsIntended Majors

NJSOA Digital Design (BS)

Interior Design (BS)

Art (BFA)

Graphic Design (BA/BS)

Landscape Architecture (BS)

SOM Health Systems Management (BS)

Financial Engineering (BS)

Financial Engineering (MS)

International Business (BS)

International Business (MS)

New Media Business Development (BS)

New Media Business Development (MS)

Management Information Systems (MS)

Enterprise Development (BS)

Enterprise Development (MS)

CCS Computing and Business (BS)

Computing and Business (MS)

Business Informatics (BS)

CSLA Computational Sciences (BS)

Biophysics (BS)

Biochemistry (BS)

Pharmaceutical Chemistry (MS)

Biostatistics (MS)

Law, Technology and Culture (BA)

NCE Healthcare Systems Management (EMS)

Energy and Power Systems (MS)Pharmaceutical Processing and Manufacturing (MS)

Pharmaceutical Management (MS)Pharmaceutical Materials Science and Engineering (MS)

Bioelectronics (MS)

Program Development

Enrollment/Resource Development

•30 “new” (many subdivided and/or repackaged) programs over three years)

•26 tenure –track hires over two years

•All “Early Retirement” funds folded back into tenure-track positions

•Additional faculty hires dependent on enrollment increases

Quality of LifePrivate Source Revenue

Develop Core of Nationally Recognized Programs

Improve Research and Intellectual Property Productivity

Recruit High Achieving Students from Diverse Backgrounds

Master Plan Honors CampaignProgram Investment/Reinvestment

Stem Cell Research Facility

New Program Development

Gateway PlanAthletics Campaign

New Program Development

Major Campaign

This Year and Beyond