Good afternoon, ladies and gentlemen, and thank you for coming today to review with me the state of this great University. I am pleased that during this past year we have, collectively, been able to take the University up yet another notch.

In the year in which we first welcomed Chancellor Robert Potts to North Dakota, we stand as the largest, most heavily endowed, most complete University in a very large region of the Upper Midwest. By multiple measures, we continue to be rated among America’s best colleges and universities, and nationally as one of the best values in higher education. I’m again proud to say that because our progress has so many elements I’m able to touch on only a few in this report. Here, today, I will only be able to talk about a few of the most important efforts we need to make this year. At year’s end, we will collectively present a comprehensive strategic picture of the University in our updated Strategic Plan.

We continue to make remarkable progress across a very broad front, including enrollment, research funding, program development, and the construction and renovation of our physical assets. Our enrollment continues to grow, the proportion of our graduate enrollment is getting larger, and we continue to become more of a national and international University.

We have again been able to make significant progress in salary increases, and have cut the gap between median faculty salaries here and nationally by nearly half in the past five years.

We’ve enjoyed another great year of progress in expanding our sponsored program base, particularly in research. Grant and contract expenditures continue to move at a steady, sustainable rate upward, and we have again achieved record levels in research funding. The most recent National Science Foundation data for federally financed science and engineering expenditures placed UND at number 158 at the end of fiscal year 2002, ranking us regionally behind only the University of Minnesota and Montana State University. In that same report, we ranked about in the middle of our set of peer institutions.

In a study done by our Bureau of Economic Research this year, it was shown that the total of $83 million in external support had (conservatively) a $135 million impact in North Dakota, and amounted to some 1,430 jobs and $2.6 million of state and local tax revenue.
UND has employed its first intellectual property specialist, Jim Petell. Jim has been hard at work evaluating discoveries for commercial potential. He projects that we could file more than 20 patents this year, and some 50 patent applications next year.

We continue to make great strides in connecting our research, development, demonstration and commercialization activities to our core mission of teaching and learning. Students are getting more and more opportunities to participate in research. We have had enormous amounts of help from members of our congressional delegation, as well as from the Governor and the North Dakota Legislature. Further framing for expansion of research development and commercialization has been provided by the Red River Valley Research Corridor concept, championed by Senator Dorgan. Additional stimulation of our research, development and commercialization enterprise has come from the Centers of Excellence concept, championed by Governor Hoeven and by the Legislature.

Because elements of the University’s Commercialization Complex are scattered across a large area of the campus and beyond, its magnitude is underappreciated. There are no fewer than a dozen key elements already present as part of this complex, including companies that have spun out of UND research as well as stalwarts like our Energy and Environmental Research Center. Bolstered by its internationally recognized centers of excellence in medicine, energy and the environment, and aerospace, UND serves as a hub for a substantial research/development/demonstration/ commercialization complex linking companies and commercial enterprises throughout the world. All of this serves as a lifelong learning laboratory and thus is integral to the University’s core mission.

Additional exciting commercial facilities are under consideration. We are about to dedicate the Ina Mae Rude Tech Incubator, and at the same time celebrate the support provided by Mr. Norm Skalicky. Congratulations to Bruce Gjovig for a successful 20-year history of operating what was one of the very first university-based tech incubators in the United States.

Many other kinds of facility improvements have been made this past year, or are currently under way. These include a new home for Integrated Studies and the Department of Geography in Ireland Hall, the renovation of the Memorial Union, a new Neurosciences Research Facility, plus many others. Future projects under consideration include new student housing, an Allied Health facility, and a parking ramp. I’m especially pleased that we have begun construction of a $20 million Wellness Center on the Bronson property.

You’ve read recently about the impressive developments on our Bronson property. This former corn and wheat field is soon to be the home of over $100 million in new projects, including 26 townhomes forming a core for the rapidly emerging University Village. The townhomes are but one component of a program of accommodation for early retirees, alumni, retired faculty, and others who wish to be co-located with the University and who might, among other things, wish to take advantage of programs like Summer Haven, organized and piloted by Deb Melby this past summer. Roughly half of the Bronson property is already under development, with additional facilities under consideration.

The work of UND faculty and staff and student leaders continues to be favorably regarded by our graduates. We receive great evaluations of the UND experience by alumni and employers, as indicated by the results of surveys conducted by our Office of Institutional Research.

We continue to receive strong financial support from alumni and other friends and benefactors. I’ve already mentioned the doubling of our business incubator made possible by gifts from Mr. Rude and Mr. Ray; we have also expanded our first-class athletic facilities, thanks to the support given by the Engelstad family. The College of Business and Public Administration, which is well along in a $20 million capital campaign, has already seen tremendous improvement in its facilities. These include the Lanterman Financial Center, the Page Marketing Center, and the Helland Family Advising Center.

All of the above is but a partial listing of the general accomplishments and indications of quality that come from the work of individual faculty, staff, and students. What I would like to do now is recognize additional individuals and teams whose accomplishments of the past year are especially noteworthy.

John Watson and faculty in Engineering who recently won a $2.8 million Department of Defense contract in cooperation with Alion, Inc. to develop new finishes to reduce wear in aircraft engines. They also continue to work collaboratively with the Odegard School of Aerospace Sciences to place a camera on the International Space Station.

I would like to recognize Dr. Peter Alfonso, since he’s worked almost two years to take our research enterprise up to the next level. He has really helped us get our research and development enterprise better organized and focused, and has, among other things, brought the University’s first Tech Transfer Officer on board.

Because of Laurie Betting’s efforts, “wellness” here and throughout the state, is “on fire.” She has led the way in not only coordinating the design of the $20 million Wellness Center, but also developed, in cooperation with Student Government, a comprehensive wellness concept for our University, and now for the State of North Dakota. She chairs a “work site wellness” group as part of Healthy North Dakota.

I urge you all to get to know Ray Lagasse, the relatively new Director of the Office of International Programs. Ray presides over a very vibrant enterprise that now brings to campus nearly 700 student scholars and their dependents. This continues to do much to advance diversity in Grand Forks.

I would like to recognize Mary Wakefield for her tireless, creative work in enhancing rural health. The work of the Center for Rural Health ranged from placement of automatic defibrillators in places throughout our state, through the ongoing identification of major health issues and impediments, to serving as a resource on rural health and on American Indian aging.
Phillip Parnell and Nancy Krogh carried out a heroic effort in the Registrar’s Office to develop 756 program agreements with 47 institutions — 307 of these on North Dakota campuses, 419 in Minnesota.

Jim Shaeffer, with Dorette Kerian and others, has taken our Information Technology program to another level. In his capacity as Dean of Continuing Education, Jim has led the way in making possible the development of 22 degree programs at a distance. Jim also presides over UND Conference Services, which is clearly the best in this wide region of the Upper Midwest.

John Shabb and colleague faculty members received a $16.5 million INBRE grant, bringing significant financial support to all of the state’s four-year institutions. John and his colleagues have done much to facilitate collaborative research between and among the State’s institutions.

Phil Harmeson’s work established Operation Enduring Friendship, a wonderfully important community link with the Grand Forks Air Force Base, bringing enlisted personnel and their dependents to the campus for athletic and cultural events.

Dr. Mike Ebadi and colleagues have brought our capacity for deep brain research in the neurosciences to the highest national levels.

Alice Hoffert, Kenton Pauls, and associates provided us with yet another record enrollment for the University. They would be the first to point out that the work of recruiting is a campus-wide responsibility, but clearly they and their colleagues have done outstanding work in recruiting the student body called for in our Strategic Plan.

Dave Vorland, Chuck Kimmerle, Jan Orvik, and the University Relations staff, for their work in enhancing the image of the University through high-quality photography, high-quality publications, and work toward achieving both Internet and print-media graphic standards, and don’t forget Chuck Kimmerle’s “Photographer of the Year” recognition by CASE.

Bob Gallager, Larry Zitzow, Rick Tonder, Paul Clark, and the entire Facilities staff, for their absolutely outstanding work in enhancing and maintaining our campus physical plant.

Denny Elbert, Tim O’Keefe, Blanche Abdallah, and Deanna Carlson Zink, for their work in implementing a Capital Campaign in our College of Business and Public Administration, which has already brought nearly $15 million toward so many exciting projects. I also want to recognize Tim and his colleagues for their work bringing the University Deans and Department Chairs into the development enterprise.

Lillian Elsinga and associates in Student Services, for exemplary handling of the Dru Sjodin tragedy last year — and the quiet, competent handling of other crises throughout the year.

Dr. Kanishka Marasinghe, Associate Professor of Physics, who is typical of the new cadre of research-minded faculty being drawn to UND. In the fall of 2000, Kanishka was given an empty room and some modest start-up funding for his lab. Today, thanks to two grants from EPSCoR and the assistance of the Faculty Research Seed Money fund, Kanishka and his team enjoy state-of-the-art equipment and have become important national players in the study of high-energy lasers.

Dr. David Wilson and his colleagues in the School of Medicine and Health Sciences, generally, for their outstanding curricular innovations and for taking the sponsored research enterprise up by nearly $20 million in the past five years.

Dr. George Seielstad and his colleagues in the Upper Midwest Aerospace Consortium, for continued innovation and free thinking that helps make the University of North Dakota a vibrant organization. George’s latest project is a proposal to bring NASA’s DC-8 research aircraft to UND and the Grand Forks Air Force Base.

Roger Thomas, Dale Lennon, and all the coaches and athletes for our world-class intercollegiate athletic program.

Barry Brode and associates on the occasion of Studio One’s 300th program.

Dr. Gerry Groenewold and company at the Energy and Environmental Research Center, for taking the image of the University of North Dakota into the world as force in achieving energy independence for our country and a cleaner environment for everyone. The EERC has served some 778 clients over the last few decades, including clients in all 50 states and 47 foreign countries.

Jordan Schuetzle and Christina Sambor, President and Vice President of our vibrant Student Government, for their full engagement in campus governance, and especially their advocacy for students.

Sergio Gallo, who, as an internationally known pianist, has vastly increased UND’s visibility across the globe. He composes original music and performs in recitals several times each year around the world.

Student Kristine Carlson, graduate student in Chemistry, selected as one of a few American students invited to participate in the annual gathering of Nobel Laureates in Lindau, Germany.

Student Allison Baker, McNair Scholar in Counseling, completed an outstanding academic record at Mandaree High and as a UND undergraduate. She is now zeroing in on a topic having to do with the complex interaction between belief structures and behaviors of reservation-dwelling American Indians.

Others whose good work I would like to recognize today are Van A. Doze, Assistant Professor of Pharmacology, Physiology and Therapeutics, recipient of a prestigious career award from the National Science Foundation, and a leader in bringing the COBRE research program here to North Dakota; Tom Mohr, whose Department of Physical Therapy developed an online doctoral program; Mike Anderegg, a prolific scholar whose most recent book, Cinematic Shakespeare, was one of many books published by English faculty last year; Shan deSilva and the faculty in the Department of Space Studies, for many important developments including the offering of a master’s degree, and soon a doctoral program, online; Wayne Bruce, who developed a cooperative program in Clinical Laboratory Sciences with the Mayo Clinic; and Bob Rubeck, who has helped pioneer video conferencing and telemedicine throughout the Upper Midwest and the nation.

It continues to be noteworthy, I think, that we get the results we do and that we are able to match the accomplishments of our peer institutions with a fraction of the support per student available to these other institutions. The State Board of Higher Education indicates that UND’s state appropriation on a per-student basis places us at about 56 percent of the median of our peer institutions. The general fund appropriation UND would need to reach 85 percent of its peers is approximately $60 million per biennium, or $30 million annually. If we were to reach 100 percent — and actually match the median of our peers — UND would need an additional $45 million annually.

I once again acknowledge the fact that North Dakota citizens continue to support higher education at a rate near the top of the 50 states. On a per-dollar personal income basis, North Dakotans provide about 166 percent of the national average. This apparent paradox is a consequence of the facts that we have relatively few North Dakotans and a relatively low per capita income — and that such a large percentage of North Dakota students avail themselves of post-secondary education.

Nonetheless, our successes are noteworthy, and here comes another year in which we must redouble our efforts once again to get the kind of results that our stakeholders have come to expect from the University of North Dakota. As we move the University upward, it gets more difficult. We will, thus, have to work even harder to move the University forward.

As we continue to move forward, we must lay a substantial foundation that enables this University to move into and remain in the absolute top echelon of doctoral research universities. We must do this while preserving the sense of community that is unique to this institution and while preserving the core values of a liberal arts education. Our ability to do this will depend on what each of us does during our daily work.

For historic reasons, we’ve come to depend on units like the Energy and Environmental Research Center, the School of Medicine and Health Sciences, and Aerospace for most of our external funding. If we are to move on up from here, we must depend, increasingly in the years to come, on other Colleges and units throughout the University.

Whatever our enrollment target, retention will continue to be a key strategic element. Faculty often think that student affairs or student services has the biggest role to play in retention. However, all the literature I’ve ever seen indicates that faculty have the single most influential role to play in helping students be successful. Students stay in school because they find their educational experiences meaningful. Sure, other factors come into play, but this is the heart and soul of retention. I am asking all faculty to redouble their efforts — not to lower standards and not to pander, but to give students all that you’ve got to give in helping them achieve their goals. We have had a few indications in recent surveys that some students find some of our faculty relatively inaccessible. This must change.

Today, throughout the country, governors and economic development authorities are deliberately and pointedly designating universities as not only key components in generating new economic wealth and activity, but as THE drivers for economic development. It appears that universities like ours are doing just that. I would like UND to become the most effective university in the United States in linking research, development and commercialization to the core teaching and learning mission. We can do this by building innovative linkages through experiential learning.

Strategic Planning. THE test of leadership in each organizational unit this year will be the engagement of all faculty and staff in forging a well-thought-out unit strategic plan. This is doubly important now because of the need for compelling case statements in fundraising and development. A college, school, department, or other unit, simply must have a clearly expressed idea of where an outside investor — or an inside one, for that matter — will help take that unit.

Among the things every unit plan should address, in order to be in sync with the rest of the University, are the following:

1. Faculty involvement in recruiting and retaining good students.

2. The development of exciting new programs and the rejuvenation or elimination of some old ones.

3. Development of Centers of Excellence.

4. Strategies for pursuing outside funding.

5. Defining, and then achieving, optimal enrollment in each academic program or optimal service delivery in each support program.

As strategic plans take shape, three fundamental questions should be posed and addressed: What can/should we do differently? What can we do to find external funding? What front-end investment should we ask the University to make as part of a well-considered business plan?

Among some of the other specific things I would like to see are:

1. The development and marketing of a full array of environmental sciences programs.

2. The development of ways to serve and/or direct students who do not meet our new automatic admission standards, including provision for conditional admission.

3. Continued review and tightening of our general education program such that its goals and approaches are more clearly assessable.

4. The exploration of better ways of celebrating highly successful graduates of UND.

5. Expansion of our Commercialization Complex with its component research parks.

6. Building some new student housing complexes.

Even if we accomplish only some of things mentioned here, we will have another great year. If we accomplish all or nearly all of them, it will be a spectacular year. In any case, we are going to need a lot of good, hard work and a lot of outside support across a broad front if we are to be successful in continuing to move the University toward the top.

Ambitious? Maybe, but nothing will create success more than believing in it. Franklin Roosevelt once said, “We have nothing to fear but fear itself.” A reverse paraphrasing of this, just as true, might read: Nothing will influence our ultimate success more than our collective belief that we can succeed . . . and the degree to which our goals are expressed with conviction, in a compelling way, to those who would support us.