The Association of

Independent Kentucky Colleges and Universities

Partners for the Commonwealth

Annual Report 2005

Contents
1 Letter from the President 2 Facts 4 Scholarship Partners 6 Financial Aid 8 Business Services 10 Teaching and Learning 12 Government Relations

Letter from the President

Dear Friends of Independent Higher Education, The AIKCU mission is to promote the well-being of our members and support their efforts to deliver the highest quality postsecondary education services. A simple enough mission, but implementation evolves continuously given changing student and societal expectations coupled with ever-present fiscal realities. This 2004-05 AIKCU Annual Report is designed to provide a brief but comprehensive overview of the last fiscal years activities and initiatives ending June 30. We have sought to provide balance between the facts and faces that tell our story and descriptions of our evolving activities in support of our members. Our goal is to give you a sense of how we are fulfilling our mission. The information contained between these covers affirms the place of independent colleges and universities in the larger postsecondary education milieu. It depicts an independent collegiate sector that is a mosaic of productive and successful non-profit campuses striving to balance adherence to heritage while incorporating the latest learning strategies to effectively and efficiently educate a diverse range of students.

The Association of Independent Kentucky Colleges and Universities Alice Lloyd College Asbury College Bellarmine University Berea College Brescia University Campbellsville University Centre College Georgetown College Kentucky Christian University Kentucky Wesleyan College Lindsey Wilson College Midway College Pikeville College Saint Catharine College Spalding University Thomas More College Transylvania University Union College University of the Cumberlands

This report highlights our efforts to meet traditional and changing expectations for the Association. Traditional ways we are meeting these include raising funds in the business community for student scholarships, advocating for student access to an independent college education through support for federal and state student financial aid and loan programs, and representing our members in the policy-making process so they have a reasonable chance to meet their own students and constituents expectations. This report provides a vehicle to show how we are meeting fresh opportunities and challenges. Sustaining the unique, bedrock qualities associated with independent higher education in a changing fiscal and competitive environment has provided new focus for our efforts. They are driven by the realization that rapid shifts in areas such as technology and modes of communication are offering new opportunities and unsettling challenges. Changing expectations also present new fiscal challenges to leaders that make extraordinary efforts to keep an independent college education affordable. There is a growing realization that our sector contributes substantially to meeting the public policy expectations of postsecondary education. Kentuckys recently revised postsecondary education public agenda rightfully anticipates that we will continually contribute as positive partners in addressing the states educational needs. This report includes selected facts and figures that showcase our members contributions to the Commonwealths postsecondary expectations, such as our role in enrolling, educating and graduating students, especially in critically important academic disciplines. It shows how we are keeping our campuses affordable for students and families. It also contains information about collaborative member service initiatives developed to aid members meet their own traditional and emerging expectations. Thanks for your interest in and support of AIKCU and its members,

Gary S. Cox , Ph.D. President

Learn moreVisit AIKCU.org

Independent Colleges and Universities are Affordable

Things you might not know (or expect) about Kentuckys independent colleges and universities
Federal Aid (Pell Grants) State Aid (Avg. awards for KTG, KEES, CAP) Institutional Aid

Tuition and fees at Kentuckys independent colleges and universities are about 1/3 lower than the national average for private four year institutions.
2004-05 US average tuition and fees at private four year institutions was $20,045. Tuition and fees at Kentuckys private colleges and universities was only $13,480 (Source: College Board, AIKCU)

Thanks to grants and scholarships, most students at Kentucky private colleges and universities pay much less than the low published tuition.
97% of students at Kentuckys private colleges and universities receive some form of financial aid (Source: IPEDS, first-time, full-time students).
Sources of aid to AIKCU students by average aid amount and source
16000 14000 12000 10000 8000 6000 4000 2000 0 Average Aid Amount By Category Federal Aid (Pell Grants) State Aid (Avg. awards for KTG, KEES, CAP) Institutional Aid

Independent colleges and universities are the largest providers of financial aid to their students. 88% of AIKCUs entering freshmen receive institutional aid (Source: IPEDS). The majority of financial aid provided to AIKCU students, from campus resources and the Kentucky Higher Education Assistance Authority (KHEAA), is based on financial need.

Sources: IPEDS, KHEAA, NAICU

verage Aid Amount By Category

Independent Colleges and Universities are Diverse

Kentuckys independent institutions provide students with high quality choices in postsecondary education.
AIKCUs 19 institutions are diverse in mission, student population, and location. They range from small rural liberal arts colleges to comprehensive urban universities, from highly selective to open admissions, and from almost exclusively residential campuses to campuses offering flexible course delivery through online and extended campus programs. This diversity allows students to find the environment where they have the most potential for academic success and can grow into leaders and strong citizens.

AIKCU students receive some form of financial aid.

97% of

AIKCU institutions effectively serve minorities and low income students.

Nearly 8% of all AIKCU students are racial or ethnic minorities. 5.7% of AIKCU students are African-American (Source: IPEDS). 47% of AIKCU students receive federal Pell Grants, which serve students from the lowest income brackets.
AIKCU institutions enroll low income students in the same proportions as four year public institutions
50 45 40 35 30 25 20 15 10 5 0 Percent of Students Receiving Pell Grants AIKCU Four Year Public Universities

Source: Office of Student Financial Assistance, US Dept. of Education. Analysis by NAICU.

AIKCU institutions are meeting the needs of non-traditional students

26% of AIKCU students are 25 or older (Source: IPEDS). They are being served in traditional campus settings and through accelerated degree completion programs, extended campus offerings, partnerships with community colleges, distance learning programs, and other innovative delivery methods.

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AIKCU members enroll 11% of higher education students in Kentucky, but produce high percentages of the states bachelors degrees in fields critical to the growth of Kentuckys knowledge economy in the global market: 23% Computer Science 35% Economics 32% Foreign Language 34% Biology & Biochemical Sciences 33% Math 30% Chemistry 34% Physics
Source: CPE Comprehensive Database, 2004 Completions Data

AIKCU by the numbers:

19 non-profit institutions 95,000 alumni living in Kentucky Over 5,000 employees 25,000 students 18,000 in-state students 11% of Kentuckys postsecondary enrollment 86% undergraduates

Independent Colleges and Universities Complement State-Funded Institutions to Benefit the Commonwealth
In support of their broad public missions, Kentuckys state-funded community colleges and universities receive on average about $5600 per student in direct state financial support. AIKCU members, while not receiving similar state support, also meet state needs. Independent colleges and universities enroll about 11 percent of Kentuckys postsecondary students and produce about 22 percent of bachelors degrees, including one-fourth of the nursing degrees, more than one-third of teachers, and high proportions of degrees important to developing Kentuckys knowledge economy in the global market.
60 50 40 30 20 10 0 Graduate in 4 years Graduate in 5 years Graduate in 6 years AIKCU Students Public University Students

26% are 25 years old or older 8% minority 78% attend full-time 165 undergraduate degree programs More than 5000 degrees awarded annually 22% of KY bachelors degrees 1/3 of Kentucky teachers 1/4 of nursing degrees

Graduation rates by sector

Independent college and university students are more likely to graduate in four years. Less time spent as an undergraduate reduces the amount of tuition paid and can mean less forgone income.

Source: IPEDS

AIKCU members are building capacity in high demand areas adding programs and facilities in critical areas like nursing, allied health careers, special education, and the sciences. This growth, fueled by private contributions, allows the independent institutions to serve growing numbers of students and reduces the burden on the Commonwealth to invest in additional programs and facilities. AIKCU members continued emphasis on liberal arts in the context of workforce preparationas well as their commitments to study abroad programs, internships, student leadership, and serviceproduce graduates prepared to adapt to changing economic conditions and to thrive in the global marketplace.

Several AIKCU institutions are located in some of the states poorest and most underserved regions. Often they are among the largest employers, they serve as cultural centers, and their students and employees are vital providers of community service.

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Student Profile

Scholarship Partners
Since 1952, AIKCU has
worked on behalf of member institutions to pursue contributions and grants from corporations and foundations to support scholarships, student financial aid, and other activities that benefit students and learning at AIKCUs member institutions. Originally founded as the Kentucky Independent College Fund (KICF) in 1952, the fundraising organization converged with the states independent higher education policy group in 1997. The merger of the two organizations into AIKCU was completed in 2002. Giving through the Association remains an efficient way for donors to invest in independent higher education in Kentucky. The partners listed in this report have made a significant investment in the future of the Commonwealth through their contributions of $1000 or more in 2004-05. On behalf of our members and students, AIKCU values the commitment of every donor, regardless of amount, to independent higher education in Kentucky.

Jeanine Babbage Spalding University Anticipated Graduation: 006 Major: English Post-graduation plans: Pursue Doctorate LG&E Named Scholar
I am the youngest child, and only daughter, of a Baptist minister. College has not only been a dream of mine, but of my parents. And as large as the college dream was, the financial nightmare loomed behind it. I was always aware that my parents wouldnt be able to pay for college and that though they would support me in any way they could I was mostly on my own. The financial situation for my mother became worse when she and hundreds of others were forcibly retired from Phillip Morris when their Louisville area plant closed. My father had been retired from Phillip Morris only months earlier. It would be my sole responsibility to find a way to pay for college. Each semester the loan amount increases....Admittedly, it adds a terrible pall to this incredible experience that college has become for me. Recently I was diagnosed as having Lupus, an autoimmune disease, which has only added to the stress and worry of college. Yet, in spite of all this, I work hard and manage to maintain a 3.9 GPA. I have learned that the only way any dream will come true is if I work for it. I believe wholeheartedly that the education I am receiving is well worth every cent, but I am glad to know foundations like the LG&E Energy Foundation exist to help students, like myself, who are willing and eager to learn and maintain excellent grades but find the financial burden sometimes so cumbersome that it becomes scary.

The Named Scholars Program

($20,000 and above)
The AIKCU Named Scholars Program is designed to build meaningful partnerships between Kentuckys corporate community and students at independent colleges and universities throughout the Commonwealth. Companies that invest in the Named Scholars Program recognize the importance of encouraging and supporting students in their quest to obtain a four-year degree. The program is designed to assist deserving students by funding a portion of their educational costs at an AIKCU member college or university.

Toyota Motor Manufacturing

$3,200 per scholar at 19 institutions
Toyota Motor Manufacturing, Kentucky, Inc., proves its commitment to the community, as well as to the state, through both monetary contributions and personal involvement of TMMK team members in a variety of organizations. Toyota believes its responsibility is to support various organizations that improve the quality of life across the Commonwealth. Toyota has supported AIKCU students since 1986.

UPS Foundation
$2,750 per scholar at 18 institutions
UPS supports a wide range of scholarship programs to ensure students have the opportunity to pursue higher education. Each year, through the Foundation for Independent Higher Education (FIHE), UPS supports scholarships at each of the nations independent colleges.

The Gheens Foundation

$1,842 per scholar at 19 institutions
The Gheens Foundation is one of the largest private foundations in Kentucky. Trustees oversee the distribution of approximately four million dollars each year. Grants support a wide range of endeavors at all levels, including education, economic development, medical, arts, and social and health services. The Gheens Foundation is a longstanding supporter of Kentuckys independent colleges and universities, dating back to the 1950s.

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Student Profile

Ashland Inc.
$1,111 per scholar at 18 institutions
Ashland has a proactive, outcome-driven giving strategy. With average annual contributions of about $3 million, Ashland seeks, selects, supports and/or partners with organizations whose goals reflect the companys commitment to enhancing the quality of life in our communities. Because education has such a vital economic impact on society, a majority of Ashlands annual contributions target outstanding institutions of higher learning. Ashland also supports accredited postsecondary establishments, as well as numerous other education-related activities, including childhood/adult mentoring, literacy and diversity-related programs. Ashland has supported AIKCU since the late 1980s.

Keeneland Foundation
$1000 per scholar at 19 institutions
Since 1937, Keenelands tradition of sharing has benefitted the citizens and communities of the Bluegrass region. Through a charitable contributions program, Keeneland supports higher education, research, health and general welfare with a portion of its racing and sales profits. The Keeneland Association restricts its contributions to projects and organizations located primarily in Central Kentucky. The primary categories of funding for the Keeneland Association Contributions Program are Research, Higher Education, Health and General Welfare. Within these categories, the contributions program has historically supported projects with an emphasis in capital expansion and equipment purchases, as well as endowment programs for scholarship funds.

Joy Beth Mills University of the Cumberlands Anticipated Graduation: May 006 Major: English/Secondary Education Career Plans: High School English Teacher Toyota Named Scholar I will be the first in my family to become a college graduate. I live in the rural mountains of Eastern Kentucky. My dream is to become a high school English teacher. Without financial assistance, I would be unable to attend college. Your gift has helped to make my dream possible. I am grateful that businesses such as Toyota Motor Manufacturing recognize and reward academic excellence. I feel that my hard work and dedication has been rewarded by your concern in my education. This scholarship has made my dreams of becoming the first college graduate in my family a reality. Thank you for your support and recognition.

LG&E Foundation/Kentucky Utilities

Because of changes in fiscal years, LG&Es most recent gift did not fall in AIKCUs 2004-05 fiscal year. They have committed to continuing their support in 2005-06.

Education is LG&E Foundations primary emphasis and includes innovative educational programs within public elementary, middle and secondary schools and public and private postsecondary schools. Programs involving math, science and technology receive priority. LG&E and its sister company, Kentucky Utilities (KU) are longstanding supporters of AIKCU. KU served as one of the Kentucky Independent College Funds founding donors in 1952.

Other Major Donors ($1000-$15,000)

Estate of Mary Evelyn Rogers PACCAR Foundation Mansbach Foundation Don & Mira Ball Delta Natural Gas East Kentucky Power Cooperative E.M. Ford & Company HNI Charitable Foundation The MacLean Foundation Governor Paul E. Patton Anonymous

$28,410 in student scholarships in calendar 2004

In 2001 the General Assembly approved legislation to provide a special license plate series for AIKCU members. Each plate carries the phrase Independent Higher Education and a decal and slogan selected by the member campus. Each plate registered at local county clerks offices across the state requires payment of a special $10 fee that is redirected to the general scholarship fund of the designated campus. In calendar year 2004, the total number of Independent Higher Education plates issued and renewed was 2,841, providing $28,410 in scholarship monies back to campuses based upon sales. Each year AIKCU holds a competition among its member campuses to see who can generate the most money for student scholarships. The winning campus sold 551 plates in 2004.

AIKCU License Plate Program

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Student Profile

Student Financial Aid

AIKCUs member campuses are committed to keeping a high quality education affordable and providing access and opportunity to students from all socioeconomic backgrounds. Many partnerships exist that help make a college education a reality for students across the Commonwealth. AIKCU CAmpUses Are the lArgest sIngle soUrCe of stUdent fInAnCIAl AId to theIr stUdents.
Sources of Financial Aid for AIKCU Students

Kari McAllister Berea College Anticipated Graduation: May 008 Majors: Womens Studies and Sociology Career Plans: Advocate for Women and Children UPS Named Scholar
I am a twenty-six year old single mother of two beautiful little girls. After working many dead end jobs I decided to go to college not just for myself but for my daughters. I wanted to show them that no matter what kind of curve balls life might throw them that they could achieve and fulfill all their goals and dreams in life. I had Kayla, my oldest daughter, when I was in high school but never lost sight of my dreams and goals to graduate high school and go to college. When Danielle, my youngest daughter, came into the picture I was twenty-one and wondering if I would ever go to college. One day I decided it was time so at twentyfour I enrolled at Jefferson Community College in Louisville. I worked on my basics while I was there and managed to maintain a 3.75 GPA. I transferred to Berea College in the spring of 2005, where I managed to get a 3.11 GPA. I moved to Berea in order to be a great mom and a successful college student. I am currently a double major in Womens Studies and Sociology. However, this may change to either Psychology or Child and Family Studies. I hope to find ways to change many policies concerning single parents.... I want this type of job because I feel that our children are our future and we must ensure good education and health for them to ensure it for ourselves and for future generations.

100 90 80 70 60 50 40 30 20 10 0 Percentage of AIKCU Students Receiving Institutional aid State Aid Federal Grant Aid

Partnerships with foundations, alumni, and other private donors allow AIKCU campuses to significantly invest in their own students through grants and scholarship programs (Source: IPEDS).

Source: IPEDS

Percent of firstAid By Aid Source undergraduates receiving year, first-time financial aid by source.

the CommonweAlth of KentUCKy provIdes fInAnCIAl AId to AIKCU stUdents throUgh the KentUCKy hIgher edUCAtIon AssIstAnCe AUthorIty (KheAA).
KHEAA distributed approximately $41 million to AIKCU students in 2004-05, or about 3.5 percent of the states total spending on higher education. Because an educated populace has numerous long term benefits for the Commonwealth (increased household income and quality of life, greater lifetime earnings and contributions to the states tax base, lower incarceration rates, and many others), this relatively small investment in AIKCU students will pay large dividends for Kentucky down the road.
Dollars Awarded AIKCU to AIKCU Awards Students KEES Scholarships CAP Grants KTG Grants KHEAA Teacher Scholarships KHEAA Work Study Early Childhood Development Scholarships Osteopathic Medicine Scholarships Grand Totals 8406 $13,152,456 5211 $6,345,836 8948 $20,585,115 198 25 7 85 $774,351 $32,000 $0 $10,420 $888,080 Total Dollars Awarded in Kentucky Percentage of State Awards to AIKCU Students 16.26% 12.66% 78.47% 38.23% 3.79% 0.00% 1.23% 100% 25.42%

Total Awards in Kentucky

63641 $80,872,626 44244 $50,133,217 11681 $26,232,595 521 1042 1064 962 85 $2,025,533 $843,274 $2,607,094 $846,539 $888,080

Kentucky National Guard Tuition Scholarships Ineligible

22,880 $40,981,907

123,240 $164,448,958

the need-bAsed KentUCKy tUItIon grAnt (Ktg) Is the prImAry soUrCe of stAte stUdent fInAnCIAl AId for AIKCU stUdents.
The KTG provides need-based grants to qualified Kentucky residents to attend the Commonwealths independent (private) colleges and universities. The program is designed to assist students with the higher tuition charges at the independent colleges. Students must be full-time undergraduates enrolled in an associate or baccalaureate degree program and have no past-due financial obligations to KHEAA or to any Title IV program. The maximum award is set by statute at 50 percent of the state per-student subsidy provided to public colleges and universities. For the 2004-2005 academic year, KTG awards ranged from $200 to $2,600.

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other KheAA progrAms thAt benefIt AIKCU stUdents

Kentucky Educational Excellence Scholarship (KEES)Provides the opportunity for Kentucky residents to earn awards based on good grades and ACT/SAT scores to help pay higher education costs. High school students can earn scholarships for college or vocational training based on their GPAs for each year of high school, plus a bonus award based on their highest ACT (or equivalent SAT) composite score achieved before they graduate. These awards range from $125 (2.5 GPA) to $500 (4.0 GPA) each year and from $36 (ACT score of 15) to $500 (ACT score of 28 or above). Award amounts may change depending on the funds available. The maximum annual award is $2,500. College Access Program (CAP) GrantHelps Kentuckys financially needy undergraduate students attend public and private colleges and universities, proprietary schools, and community and technical colleges. CAP Grants are awarded to Kentucky residents enrolled for at least six semester hours (half-time) in academic programs that take at least two years to complete. The maximum award for the 2004-2005 academic year was $1,400 ($700 each semester). Eligible part-time college students received an amount calculated on $58 per credit hour. KHEAA Teacher ScholarshipProvides financial assistance in the form of a conversion scholarship/ loan to highly qualified, financially needy Kentucky students who are pursuing initial teacher certification at participating institutions. Scholarships are awarded in amounts up to $5,000 an academic year (excluding summer term), $2,500 a semester, and $1,250 a summer term for full-time juniors, seniors, post-baccalaureate, and graduate students. If funds remain, freshmen and sophomores may receive an annual maximum of $1,250 an academic year (excluding summer term), $625 a semester, and $325 a summer term. Recipients who do not complete an eligible program of study or do not render qualified teaching service must repay the scholarship with 6 percent interest that accrues from the date of disbursement of each Teacher Scholarship. Osteopathic Medic ScholarshipAwarded to Kentucky students accepted into Pikeville Colleges School of Osteopathic Medicine. The award is equal to the difference between the average amount charged for in-state tuition at the state medical schools and that charged at Pikeville College School of Osteopathic Medicine. The recipient is required to render one year of qualified service for each year the scholarship was awarded. In the event a recipient fails to complete an eligible program of study or fails to render qualified service as a primary care physician, the recipient must repay the total amount of the scholarship plus 6 percent interest from the date of disbursement. KHEAA Work-Study Program (KWSP)Provides career-related work experience for eligible Kentucky residents attending approved in-state postsecondary institutions. The jobs are provided by Kentucky employers, at least 75 percent of which are in the private sector. Students must be enrolled at least half-time and be making satisfactory academic progress. Priority for jobs is given to undergraduates. Students are paid at least the federal minimum wage. The most students can earn from KWSP is an amount equal to the total cost of education minus financial aid received from all sources. Early Childhood Development ScholarshipProvides scholarships to promote the professional development of persons who are employed or provide training in child-care or early childhood settings. Students must be pursuing an eligible early childhood education program of study and be employed at least 20 hours weekly in an early childhood setting. For 2004-2005, the award amount was the cost of tuition, not to exceed $1,400 per year.

Student profile

Jeremy Shane Fields Kentucky Christian University Major: Education Middle Grades Anticipated Graduation: May 007 Career Goal: Teach in Eastern Kentucky Ashland Named Scholar, Eagle Scout, Navy Veteran
I graduated from Russell High School in 1996 and during my 11th grade year I was able to go on an exchange program to study in Australia for 10 months. This was one of the greatest opportunities I have had in my educational career to date. In doing this though my parents were unable to help financially when it came time for me to go to college the fall after graduation. After trying to work several jobs and take a full load at ACC, I gave up and dropped out of school because I was unable to work the hours I needed to pay for school and still spend the time in the books I needed to make the grades. But my Scouting history and ROTC training encouraged me to find other means of working and getting an education. So I went down to the recruiters office and enlisted in the Navy. I spent four years onboard the USS Carl Vinson (named after a Kentucky boy!).. While in the Navy I was able to take some classes through an education program on the ship. Though the GI Bill is helping with costs it certainly doesnt cover all my school and living expenses. I hope to be able to find a teaching job in the area when I graduate. After teaching for a year I plan to start on my masters as I continue teaching. I believe the only way to reach the future generations, and prepare them for their future roles as leaders of our nation, is through God and education.

AIKCU StUdentS AlSo qUAlIfy for All federAl StUdent AId progrAmS.
Student loans play a key role in helping many AIKCU students and their families finance the portion of their higher education investment not covered by other forms of financial aid. AIKCU partners with the Student Loan People, KHEAAs sister organization, to offer low loan rates and outstanding borrower benefits to students and parents utilizing their loan services. In 00-0, AIKCU students were the beneficiaries of 7,67 Federal Family Education Plan (FFELP) loans through The Student Loan People for a total loan volume of $,97,80 (note that students may utilize more than one loan). These include subsidized (need-based) and unsubsidized Stafford loans and PLUS (parent) loans. Additionally, AIKCU students benefited from these special programs offered by The Student Loan People in 00-0. Best Start: 13,637 loans for $1,997,373 in borrower benefits to AIKCU students in 2004-05
Student Loan Peoples BestStart Stafford Loans offer competitive discounts on origination and guarantee fees in addition to repayment discounts.

Best in Class (For Kentucky Educators): 3,766 loans for $2,348,691 in borrower benefits to
AIKCU students in 2004-05 Students with Stafford or PLUS Loans who become teachers and work in Kentucky get the BestStart loan benefits, plus: Interest forgiveness for each year of service in Kentucky Up to 0% principal forgiveness for each year of service for: math teachers, science teachers, ESL teachers, special education teachers, minority teachers, foreign language teachers.

Best in Care (for Kentucky nurses): 746 loans for $423,688 in borrower benefits to AIKCU
students in 2004-05 Students with Stafford or PLUS loans who become RNs, LPNs or LVNs and work full-time in Kentucky get the BestStart loan benefits, plus: Interest forgiveness for each eligible year of service Up to 0% loan principal forgiveness for each eligible year of service for nurses working in one of the following critical care areas: Hospitals, long-term care, public health care, college nursing instructor.

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AIKCUs Office of Business Services implements

procurement strategies that bring value to member campuses through collaboration. The Business Services Office works with campus Business Officers to establish priorities, review products and services, negotiate with and establish vendor partners, promote participation among institutions, seek Association based marketplace pricing and evaluate products and programs. Participation by AIKCU members is voluntary. These business partnerships are increasingly important to AIKCUs mission of supporting our member campuses, allowing them to concentrate on providing high quality, affordable educational services to students.

Business Partners
advocacy, consultation, information, professional development and district support services for local school board members as well as district and school staff. Established in 1936, KSBA is a private, nonprofit service organization composed of almost 900 members of local boards of education. As such, KSBA is the largest organization of elected officials in Kentucky. AIKCU has partnered with Kentucky School Boards Association Insurance Trust to market and support its property, casualty and liability insurance products to member campuses. KSBIT offers competitive rates and provides any AIKCU campus with risk management training, including assessments of buildings and grounds, OSHA training, sexual harassment seminars and other topics upon request. AIKCU or one of its member campuses is also represented on the KSBIT Board. program has been extended to AIKCU campuses providing per gallon discounts of at-the-pump products at Marathon, SuperAmerica, Speedway, and Pilot fuel centers across the country. In addition, participating campus tax-exempt certificates have been encoded, providing for allowed base price purchases of fuel products for campus use. Online record keeping, student employment opportunities, and discounts for students, faculty and staff, and alumni are all a part of this program design. largest quick-lube chain. Valvoline Instant Oil Change was created in 1986 and is a business group of Valvoline, a division of Ashland Inc. VIOC provides consistent, outstanding service, performed strictly according to each vehicles manufacturers recommendations. As a part of the SuperFleet program, discounts and tax-exempt recognition are provided to campuses choosing to utilize VIOC for their fleet service needs. Online record keeping, student employment opportunities, and discounts for students, faculty and staff, and alumni are all a part of this program design. business designed to provide the highestquality products and services to students and campus communities wherever they happen to be. Their mission is to provide the easiest, fastest, cheapest way for college and university students to buy textbooks and stuff. Whether substituting for on-campus 8 Learn moreVisit AIKCU.org

The Kentucky School bookstores or providing on-line ordering services, they offer new Boards Association provides and used textbooks, trade books, college emblematic and Greek

apparel for men and women, electronics, computers, gifts and other services traditionally associated with the college experience. AIKCU campuses benefit from direct marketing agreements with eCampus. com in a variety of ways. Some choose to close unprofitable oncampus bookstores in favor of on-line services while others limit their association to the eCommerce/Distance Learning portion of their campus trade. Each association pays dividends to campuses, students and administrators. comprehensive eLearning services company that creates online degree and professional development courses, creates customized content in multimedia format, builds online campuses, leases online degree and professional development courses and sells online courses and products from its eStore. A long-term partner of AIKCU and its members, The Learning House provides highly professional on-line course development to campuses participating in distance learning activities. The Learning House also manages the Associations Web site, AIKCU.org, and provides significant in-kind support for the Associations mission and goals. the 1978 Kentucky General Assembly as an independent municipal corporation to make, finance, service, and collect educational loans. Its mission is to promote Kentuckys higher education opportunities by providing the lowest cost loan programs and related services.The Student Loan People is the sister agency of the Kentucky Higher Education Assistance Authority and is the states only public, nonprofit student loan provider. The Student Loan People offers the lowest cost student loans in Kentucky and provides millions of dollars annually for borrower benefit programs and for additional student awards for the College Access Program (CAP) Grant, Kentucky Tuition Grant (KTG), and other KHEAA student aid programs for Kentucky students. puses access to a national higher education nofee procurement card program. This MasterCard product utilizes Smart Data OnLine, a web-based card management system. Each campus sets its own spending limits, controls types of purchases, and has access to electronic expense reporting. Online training, use of the web-based system, cards and numerous reports are provided free to the member campus. Yearly rebates based on the aggregate spending of all participating institutions are a part of the program.

The Learning House, Inc. is a

Marathons SuperFleet fuel discount

The Student Loan People was created by

Valvoline Instant Oil Change is the nations second

JPMorgan Chase provides participating cam-

eCampus.com is a national e-commerce

Business Services Activities

Ongoing activities:
A continuing program of utility cost reviews, designed to match each campus utility contract with the most price advantageous tariffed rate offered by the utility. This program has been highly successful in achieving both short and long term savings for campuses that have been evaluated and a waiting list exists for many others. A review of campus initiatives in Information Technology and related hardware and software vendor agreements. A review and consolidation of wireless agreements providing pooled campus voice minutes and broadened campus data access. An analysis of campus printing and copying needs and opportunities to collaborate on cost of equipment and maintenance as well as out-sourcing of projects.

New initiatives under development:

A comprehensive student health insurance program providing campus health management and basic medical care at reasonable rates. An agreement with a national company offering prospective employee background checks. A partnership with a national vendor for office products and supplies. A partnership with a national travel management organization. A partnership with vendors of campus related furniture and furnishings. An agreement with a national moving and storage provider. An agreement with an Executive/Professional Search company. A partnership with a wireless voice and data vendor.

Health Insurance Initiative

The AIKCU Business Services Office helps campuses contain costs and leverage the collective size of the Association, so they can concentrate on providing high quality, affordable educational services to students.

In response to escalating health care costs on member campuses, the AIKCU Board has unanimously supported the development of the AIKCU Benefit Trust, a pooled, partially self-funded approach to health care for campus employees. A highly qualified committee of campus representatives received proposals from ten of the twenty TPA and healthcare networks invited to bid services through an RFP issued in February, 2005. In April the committee selected Commonwealth Administrators, a Lexington TPA firm specializing in the management of association driven health care plans. The final Trust Plan has received tentative approval from the Kentucky Office of Insurance. Each campus will be presented with its options under the AIKCU Benefit Trust plan for consideration during the latter part of 2005.

Cooperative Programs
AIKCU promotes collaboration and resource sharing between its member institutions whenever possible. Activities include the facilitation of regular meetings and information sharing between campus leaders with similar job functions, AIKCU-sponsored collaborative projects, shared professional development, and cost saving measures. Cooperative programs in 2004-05 included: Library Services AIKCU coordinates shared purchasing agreements and consolidated billing for library databases and services that enhances library holdings and significantly reduces operational costs for individual campuses. Products and services acquired under this arrangement include a partnership with the Kentucky Virtual Library and a variety of database and book purchasing agreements. AIKCU also serves as a liaison between members and other partners that allow members to take advantage of consortial agreements, such as those coordinated by the Appalachian College Association. The AIKCU librarians meet regularly for resource sharing and professional development. Public Relations With the help of partner The Learning House, Inc. AIKCU is completely reconstructing its Web site, AIKCU.org, to make it a more dynamic and comprehensive resource for both internal and external audiences to learn about Kentuckys independent colleges and universities. Enhancements include a weblog with RSS syndication, downloadable reports and publications, a password protected member area, and a web-based professional development delivery system. Cooperative Research AIKCU serves as a resource to its member campuses in the area of research and data collection, producing a variety of internal reports and acting as a liaison and resource during various data collection projects. In 2004-05 AIKCU also commissioned and coordinated a comprehensive study of the independent sectors economic, cultural, and social impact in Kentucky. Human Capital Research, Inc., conducted the study, which will be available on AIKCU.org in late 2005. Career Development AIKCU supports collaborative programs in career development through group purchasing agreements for career development software, like ACT Discover; by cultivating new internship partnerships, like recent agreements between The Washington Center and The Kentucky Society of Washington; and by sponsoring collaborative programs like the Frankfort Semester Internship Program and Spotlight on Employment. The Frankfort Semester Internship Program is a major AIKCU initiative that seeks to enhance students academic, civic, and professional skills through internship experiences, public policy symposia, academic seminars and exposure to the ideas and perspectives of a variety of notable citizens. In even years, students work directly with state legislators in responding to constituent inquiries and in the crafting and passage of legislation. In odd years, students are assigned to a variety of administrative offices within state government. Students work approximately 30 hours a week providing assistance in areas such as program administration and management. All students enrolled in the Frankfort program also enroll in two upper division seminars that meet in the evening.

his experience has been one of the most invaluable experiences I could have ever hoped to do while in college. The networking was very valuable, and from this I ended my internship with a (full-time) job offer.

-Colene Eldridge Transylvania University 00 AIKCU Frankfort Semester Intern

Spotlight on Employment is a collaborative career fair that provides AIKCU students the opportunity to meet with prospective employers from a diverse cross-section of industries. The 20th annual Spotlight on Employment was held at Georgetown College in February, 2005. More than 200 students representing fifteen AIKCU campuses participated in Spotlight. Private College Week is a shared recruitment and public relations event that provides students and their families a convenient way to explore AIKCU campuses. Twice daily open houses at all AIKCU campuses provide an opportunity to tour up to 10 campuses in a week. Associated promotional and outreach activities through the media, high schools, and other venues seek to raise the overall awareness of independent institutions around the Commonwealth.

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Teaching and Learning Initiatives

eacher preparation programs at Kentuckys independent colleges and universities are vital to public education in the Commonwealth. AIKCU campuses produce more than one-third of Kentuckys public school teachers. 18 AIKCU campuses have education programs, with another program under development. AIKCU coordinates a mounting array of initiatives that support teaching and learning on its member campuses.

Grant Administration
AIKCU leads, supports, and manages two major grants on behalf of Kentuckys independent colleges and universities. These grants include: The Teacher Quality Enhancement Grant: Funded under the provisions of the National Higher Education Amendments (HEA), enacted by Congress in 1998, the Teacher Quality Enhancement Grant responds to the nations critical need for high quality teachers. The federal dollars that fund this grant flow through the Kentucky Educational Professional Standards Board (EPSB). AIKCU contracts with EPSB to make Teacher Quality Enhancement Grant funding available to the independent colleges and universities that participate in this grant program. By the end of fiscal year 2006 over $238,496 will have been made available to participating institutions for the three year grant program. AIKCU received additional support under the grant to extend the Teacher Work Sample Project to independent institutions. Commonwealth Consortium for Teacher Education Model Programs Grant (TEMP): The Kentucky General Assembly, through the Kentucky Educational Professional Standards Board (EPSB), provided $2 million statewide for grant implementation to improve education preparation and encourage inter-institutional cooperation, including both public and private institutions. AIKCU contracts with EPSB on behalf of independent colleges and universities that participate in the TEMP Grant. By the end of fiscal year 2006 over $342,000 will have been made available to participating AIKCU institutions for the three year grant program. Other Areas of Support Current professional development initiatives managed by AIKCU include conferences on Teacher Work Samples and Math Achievement Initiatives scheduled for fall of 2005. AIKCU is in the initial planning stages of developing a comprehensive Center for Teaching and Learning Excellence to expand services to members in the areas of teaching and learning. AIKCU facilitates regular meetings of deans, education department chairs, and faculty to to discuss opportunities and challenges centered on teaching and learning. AIKCU also provides technical and advisory support to campuses in areas like distance learning, legislative regulatory mandates, and other topics. Additionally, AIKCU acts as a liaison between the member private colleges and universities and the Kentucky General Assembly, the Council on Postsecondary Education, the Educational Professional Standards Board, and other governmental agencies. AIKCU also seeks to form partnerships with outside agencies that share goals of improving teacher education and the P-16 education system in Kentucky. AIKCU currently assists the Partnership for Successful Schools (formerly the Partnership for Kentucky Schools) by serving as a fiscal agent for one of their programs.

0

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Alumni Profile AIKCU members have used TEMP grant funds to improve education programs and reach out to local education communities. Selected highlights include:
Spalding University is working with local middle schools to recruit minority students to teacher education. The plan has created a long term relationship with these students designed to extend into the students high school experience, well beyond the life of the grant. Career as a Teacher Day at University of the Cumberlands gave 26 middle-school students a chance to visit campus for a day to explore career options in education and experience college life. Pikeville College and Bellarmine University created programs to engage arts and sciences faculty with P-12 educators. Faculty held workshops on campus and visited the schools to observe and provide feedback. Campbellsville University and Lindsey Wilson College collaborated to establish four new Future Educator of America Chapters in local high schools. Transylvania education students offered a free, week-long day camp for neighborhood children during the summer. Union College and Georgetown College have used grant monies to develop additional online courses in special education.

Billie Travis 7th Grade Math Teacher Georgetown Middle School MA and Rank I, Georgetown College 00 Kentucky Teacher of the Year I completed both my Masters and Rank I (30 hours above the Masters) at Georgetown College. I really appreciated the opportunity to be a student there. I was exposed to a lot of great teachers in the Scott County School System and that is why I wanted to come back home and teach. Then when I had the opportunity to continue my education, I was honored and blessed to be able to do that at Georgetown. The professors were great. Their expertise in the classroom and their willingness to work with me really made me appreciate my profession even more. I have always had an open door policy to the college so that I can help others who desire to teach. I love working and living in this community. I grew up here and learned so much and want to continue to share my knowledge with others to continue this cycle.

AIKCU campuses produce more than one-third of Kentuckys public school teachers.
(Source: KY EPSB)

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Founder Profile

Government Relations
Government relations and public policy advocacy are cornerstones of AIKCUs mission. AIKCU represents its members in a myriad of ways at the state and national levels. Historically, student financial aid has been the public policy issue that impacts the independent sector most. In recent years, other public policy issues have gained in importance and demanded more time and attention. Carrying out AIKCUs mission at the state level centers on sharing information with policy makers, responding to requests for information, monitoring legislative activities during the session and interim, monitoring and serving on executive organizations and committees and generally advocating for our members. State leaders expectations of postsecondary education changed in 1997 with the passage of postsecondary education reform legislation. This legislation and 1998 legislation that established a firm and growing funding source for state student financial aid programs ushered in a new public policy era for AIKCU. These events served as the catalyst for AIKCU and its members to emerge as partners in the states efforts to improve its educational standing. The reform legislation recognizes the critical role postsecondary education must play in building a positive future for the state and its citizens and redirects policies and resources to achieve articulated goals. This approach offers an opportunity for independent campuses to assist the state in meeting its goals. The period since 1998 has been marked by an integration of AIKCU into the postsecondary education decision-making process and growing AIKCU involvement in the states efforts to achieve stated goals. The AIKCU President now serves on the Council on Postsecondary Educations Conference of Presidents and the Higher Education Assistance Authority & Student Loan Corporation. AIKCU represents its member campuses with these organizations and before the Educational Professional Standards Board, as well as before many other committees and executive state agencies. The AIKCU commitment to partner with the state where mutually beneficial is expected to grow based on the mutual respect that has developed between state and AIKCU leaders. A revised series of postsecondary education goalsstated in the form of five questionshave been adopted by the Council on Postsecondary Education in the last year. AIKCU is committed to aiding the Commonwealth in achieving these goals. AIKCU staff recently joined with the Council in establishing a series of key indicators to measure our progress in meeting the goals. AIKCU involvement at the national level revolves around federal student aid and regulatory policy. AIKCU activity over the last year has centered on Congressional efforts to reauthorize the Higher Education Act. AIKCU staff has joined with colleagues in sharing information with the states Congressional delegation about the impact of various reauthorization strategies.

John Frazer (99-00) Executive Director of the Council on Independent Kentucky Colleges and Universities (CIKCU), 97-99 Tireless Advocate for Independent Higher Education and Student Financial Aid
John Frazer served as Executive Director of the Council on Independent Kentucky Colleges and Universities (the Government Relations organization that became AIKCU) for over two decades. He was the voice of independent higher education in Kentucky and was instrumental in the development and passage of the Kentucky Tuition Grant Program. Nationally, he was influential in the founding of the National Association of Independent Colleges and Universities (NAICU) and played a key role in the establishment of what is today known as the Pell Grant program. John Frazer was a man of highest integrity and intellect totally committed to the cause of independent higher education. He laid the groundwork for AIKCUs current efforts in the area of government relations. Shortly after Johns untimely death, the AIKCU Board of Directors voted unanimously to name the AIKCU Board Room in his honor. The Board also commissioned the portrait above which hangs in the Board Room in his honor.

00 by the Association of Independent Kentucky Colleges and Universities Special thanks to those campuses that provided photos for use in this report: Cover: Pikeville College. Inside cover (clockwise from top left): Asbury College, Centre College, University of the Cumberlands, Alice Lloyd College. Page : Saint Catharine College. Page  (clockwise from top): Centre College, Transylvania University, Pikeville College, University of the Cumberlands. Page 9: Lindsey Wilson College, Campbellsville University. Page 0: Bellarmine University. Page : Asbury College. Back cover: Campbellsville University, Bellarmine University, Lindsey Wilson College, Alice Lloyd College. All student profiles courtesy of campus financial aid offices. Billie Travis photo on page  courtesy of Betsy Falk/Georgetown College,



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Addendum to 2005 AIKCU Annual Reportt

The Association of Independent Kentucky Colleges and Universities Alice Lloyd College Asbury College Bellarmine University Berea College Brescia University Campbellsville University Centre College Georgetown College Kentucky Christian University Kentucky Wesleyan College Lindsey Wilson College Mid-Continent University Midway College Pikeville College Saint Catharine College Spalding University Thomas More College Transylvania University Union College University of the Cumberlands

n the day this 2005 Annual Report was released, the AIKCU Board of Directors voted to welcome Mid-Continent University into the Association. The addition of Mid-Continent unifies all twenty nonprofit, SACS-accredited four year colleges and universities in Kentucky. We provide this addendum to the 2005 AIKCU Annual Report to introduce you to Mid-Continent University and highlight the attributes that Mid-Continent brings to postsecondary education and to the Association. With the addition of Mid-Continent, AIKCU now serves more than 26,000 students in all regions of the Commonwealth.

Mid-Continent University
President: Dr. Robert Imhoff Established: 1949 Location: Mayfield, Kentucky Web site: www.midcontinent.edu Total enrollment: 1,088 Adult students enrolled through Advantage Program: 62% State student financial aid awards in 2004-05: $1.5 million

Licensed to confer Baccalaureate and Associate degrees by the Commonwealth of Kentuckys Council on Postecondary Education (CPE). Elementary Education certification by Kentuckys Educational Professional Standards Board (EPSB). Accreditation by the Southern Association of Colleges and Schools (SACS). Mid-Continents Elementary Education program is highly ranked in the Kentucky Educational Professional Standards Boards Report Card on Educator Preparation. Mid-Continents Advantage Adult Program provides access to postsecondary education for working adults by offering both Baccalaureate and Associate degrees at over 30 locations in western Kentucky, southern Illinois and northwestern Tennessee. Mid-Continents mens soccer team is the 2005 National Christian College Athletic Association division I champion. Mid-Continent has been chosen by the NAIA as a Champions of Character center to help develop integrity in sport regionally.

Licensure and Accreditation

Notable

Mid-Continent University Joins AIKCU (continued)

Mission
Mid-Continent University is a Great Commission, Baptist, four-year, teaching institution whose primary purpose is to provide Christ-centered quality higher education. Instruction in the Bible and liberal arts is provided to traditional and non-traditional students through on-campus and off-campus programs that equip them for Christian leadership and service in a diverse society. Furthermore, the university seeks to:
Equip and train students for carrying out the Great Mid-Continent President Robert Imhoff Commission of our Lord (Matthew 28:18-20). with students on the Mayfield campus. Imbue students with a knowledge and understanding of other cultures and international events. Provide a quality education in both the arts and sciences and Biblical Studies from a Christian worldview. Facilitate student development by promoting the synthesis of academic knowledge and Christian values for spiritual, intellectual, social, and physical maturation. Encourage adult lifelong learning for people of diverse ages and educational levels in our communities. Provide leadership and service opportunities for our students in our communities. Foster competency in writing, reading, oral communication, fundamental mathematical skills, analytical reasoning, computer literacy, and library research.

Academics
Baptist College of Arts and Sciences
Degrees: Bachelor of Arts, Bachelor of Science, Associate of Arts, and Associate of Science.
Majors: Elementary Education, Psychology & Counseling, Business Management, English, Social Studies and General Studies. Minors: Psychology and Counseling, Business Management, English, Social Studies and Recreation/Wellness/Leisure.

James W. Cecil Baptist College of the Bible

Degrees: Bachelor of Ministry, Bachelor of Arts, Bachelor of Science, Associate of Arts, Associate of Science.
Majors: Biblical Studies, Church Leadership Development, Evangelism and Missions, Christian Ministry, Ministry. Minors: Same as majors above.

Advantage Adult Program

Degrees: Associate of Arts and Bachelor of Science.
The Advantage Program is designed to help adult students 25 years of age or older complete their Associate of Science degree in General Studies or a Bachelor of Science in Business Management through innovative program delivery models designed to remove the barriers that commonly prevent busy adults from reaching their educational goals.

AIKCU
Association of Independent

The Association of Independent Kentucky Colleges & Universities 484 Chenault Road Frankfort, Kentucky 40601 502.695.5007 502.695.5057 (Fax) www.aikcu.org

AIKCU is located in Frankfort, just off Interstate 6.

The Association of Independent Kentucky Colleges and Universities 8 Chenault Road Frankfort, KY 060 (0) 69-007 (0) 69-07 (fax) www.aikcu.org Gary S. Cox, Ph.D. President gary@mail.aikcu.org Meg Link Assistant to the President and Fundraising meg@mail.aikcu.org Bob Johnston Vice President, Business Services & Chief Operating Officer bob.johnston@mail.aikcu.org Mason Dyer Director of Communications and Research mason@mail.aikcu.org Richard Downey, Ph.D. Director of Teaching and Learning Initiatives dick@mail.aikcu.org Marsha Clark Administrative Assistant marsha@mail.aikcu.org
Dr. William T. Luckey, Jr. Lindsey Wilson College www.lindsey.edu Dr. William B. Drake, Jr. Midway College www.midway.edu Dr. Jo Ann Rooney Spalding University www.spalding.edu William D. Huston St. Catharine College www.sccky.edu Sister Margaret Stallmeyer Thomas More College www.thomasmore.edu Dr. Charles L. Shearer Transylvania University www.transy.edu Ed de Rosset Union College www.unionky.edu Kim Menke Manager, Community Relations Toyota Motor Manufacturing Kentucky, Inc. www.toyotageorgetown.com

About AIKCU
The Association of Independent Kentucky Colleges and Universities is a nonprofit, 501(c)(3) organization composed of the nonprofit, non-tax supported, regionally accredited four year colleges and universities in Kentucky. AIKCU consolidated the missions of two earlier organizations: the Kentucky Independent College Foundation, a fundraising organization founded in 1952, and the Council on Independent Kentucky Colleges and Universities. AIKCU supports its member institutions and their students through: Government relations AIKCU acts as the voice of Kentuckys independent higher education community before state agencies and legislators Fundraising AIKCU provides an efficient vehicle for corporate partners to provide consolidated scholarship and program support Business services AIKCU works with members and business partners to leverage collaborative opportunities that help campuses control operating costs Cooperative programs AIKCU sponsors professional development and meetings to facilitate inter-institutional cooperation and resource-sharing, and partners with other similar organizations throughout the United States to share good practices that benefit institutions and students Education initiatives and grant administration AIKCU coordinates and acts as the administrative agent for collaborative grant opportunities that benefit its member institutions. Currently AIKCU manages federal and state grants in the area of teacher education preparation. Research AIKCU works with members, national organizations, and the Council on Postsecondary Education to provide relevant, accurate research and analysis to inform discussions of the role independent higher education plays in Kentucky. Public Relations AIKCU works closely with its members, the media, and its constituents to provide information and materials that highlight the contributions that independent higher education makes to the betterment of Kentucky. AIKCU is funded primarily by member dues. The Association also receives some support from revenue generated by business services activities. AIKCU is governed by a board of directors comprised of the presidents of its member institutions and representatives from the Kentucky business community. AIKCU is an affiliate member of the Council on Independent Colleges (CIC.org) and a member of the Foundation for Independent Higher Education (FIHE.org) and the National Association of Independent Colleges and Universities (NAICU.edu).

AIKCU Board of Directors

Dr. James A. Taylor University of the Cumberlands www.cumberlandcollege.edu

Chair

Vice Chair

Harold H. Smith Pikeville College www.pc.edu

Treasurer

John S. Weber Chief Financial Officer Graeters Ice Cream, KY Dr. Joseph A. Stepp Alice Lloyd College www.alc.edu Dr. Paul A. Rader Asbury College www.asbury.edu Dr. Joseph J. McGowan Bellarmine University www.bellarmine.edu

Dr. Larry D. Shinn Berea College www.berea.edu Sister Vivian M. Bowles Brescia University www.brescia.edu Dr. Michael V. Carter Campbellsville University www.campbellsville.edu Dr. John A. Roush Centre College www.centre.edu Dr. William H. Crouch Georgetown College www.georgetowncollege.edu Dr. Keith P. Keeran Kentucky Christian University www.kcu.edu Dr. Anne Cairns Federlein Kentucky Wesleyan College www.kwc.edu

The Association of

Independent Kentucky Colleges and Universities 502.695.5007 502.695.5057 (fax) www.aikcu.org