Ohio University Cost Diagnostic

Cost Diagnostic Where we were… Significant Budget Cuts between 2004-2010 2006-2010 costs covered in this diagnostic totaled over $37M Reinvestments after 2011 due to compliance, capacity & infrastructure Information Technology Instructional Capacity Human Resources Data Driven Advising Estimated Time for Slide = 2 min. NOTES: Safety Infrastructure

Cost Diagnostic Where we are today… Reviewing cost & revenue drivers and trends 2006-2015 Impacts of Board of Trustees and Institutional priorities Salaries Benefits Financial Aid Facilities (Investment & Funding) Revenue Mix (Tuition, SSI, etc.) Headcount (Student & Employee) Estimated Time for Slide = ??? 15 min??? NOTEs: Student Affordability Compensation Deferred Maint & Space Renewal Program Quality & Revenue Growth

FY 06 Revenue Grown by CPI to FY15 vs. FY 15 Actuals Operating Revenue FY 06 Revenue Grown by CPI to FY15 vs. FY 15 Actuals Total Actual Revenue

FY 06 Expenses Grown by CPI to FY15 vs. FY 15 Actuals Operating Expenses FY 06 Expenses Grown by CPI to FY15 vs. FY 15 Actuals Total Actual Expenses

Cost Diagnostic Dashboard Drivers: Variables which impact the metric. Metric: Presents and compares the stated metric based on each presentation scenario shown below: FY06 grown by CPI (Status Quo) Actual results Normalized actuals (in FY06 $$) Levers: Indicates directionally which way the data will likely move over time. Short term (1-5 yrs) Long term (6-10 yrs.) FY06 Grown by CPI: Presents 2006 data and adjusts only based on CPI. For example: Salaries per student headcount 2006 salaries would grow based on CPI No change projected in headcount. Actual Results: Displays actual data as shown on the financial statements. Normalized Actuals (in FY06 $): Displays actual financial results restated in FY06 dollars for comparability. Data may be normalized based on CPI. Estimated Time for Slide = 3 min NOTEs: Thought process/philosophy of establishing the goal SMART goals Emphasize that goals works in conjunction with vision and priorities BOT has set.

Dashboard: Salary Cost (per student headcount) all salaries/all students Drivers: Student headcount Employee raise pools Employee headcount ST LT BOT competitive salary priority Increase student headcount of non-traditional & non-residential students Faculty make-up continues to shift (i.e. retirements) Normalized

Healthcare Drivers: Rate of Growth * Plan Design Changes (in Millions) Health care costs Health care experience Employee demographics Employee headcount Benefit plans Self vs fully insured Rate of Growth $ * $ $ $ $ Designates significant plan changes (excludes AFSME changes) Unexpected employee utilization and health care experience caused unusual OTO growth Plan Design Changes (in Millions) Estimated Time for Slide = 1 min. NOTEs: Brief overview

Dashboard: Benefits Costs (as a % of Salary) Drivers: Health care costs Health care experience Employee Demographics Employee headcount Benefit plans Self vs. fully insured ST LT Benefit Plan Changes Affordable Care Act (ACT) Normalized

FY17 Expense Drivers Compensation: Healthcare Three Year PPO Plan Premium and Plan Design Strategy Cost Avoidance Impact ($ Millions)

Dashboard: Institutional Financial Aid (per Athens Undergrad Student Headcount) Drivers: Financial Aid Student Headcount – Athens UG Signature Awards Matching Scholarship Program Competitive environment to maintain enrollments Non-traditional increased enrollment Federal/State financial aid Normalized

Dashboard: SSI (per Total Athens Student Headcount) Drivers: SSI Student Headcount – Athens Total (Undergrad + Grad) Performance formula State funding OHIO Share of pool Normalized

Dashboard: Tuition Drivers: Tuition State cap Ohio Guarantee ST LT Reduction of SIS Increasing cost vs. efficiencies Institutional investments in priorities New revenue Normalized

Dashboard: Capital Investments per Gross Square Feet Athens (includes extension campuses) Drivers: Capital additions (investments) Gross square feet (includes extension campuses) ST LT Updating Facilities BOT Priority CIP/CMP Century Bond EIP Extension Campus growth Normalized

Dashboard: Debt (per Athens Total Student Headcount) Drivers: Debt service Student headcount – Athens total LT CIP Plan Century Bond Program EIP Enrollments Deferred Maintenance Backlog Normalized

Dashboard: Utility Costs (per Gross Square Feet) Drivers: Utility costs Gross square feet (includes extension campuses) ST Adding sq. footage Century Bond Program EIP impact CIP Energy Contracts Normalized Figure out a way to compare application numbers for us vs. others who did not make investments in bilding

Academic Metrics