Winter 2018 FAC Interim Report Philip Hatcher, CEPS Committee: William Knowles, PCBE Christine M. Shea, PCBE, chair John Lacourse, CEPS Kenneth Baldwin, CEPS Stephan Shipe, PCBE Stephanie Clarke, COLSA Charli Valdez, COLA Michael Gass, CHHS

Charge 1: Communication VPFA Meeting October 17: Focused on RCM and Funding Gap Recovery Board of Trustees Investments and Financial Affairs meetings attended or planning to attend: 10/19/17, 2/1/18, 5/19/18, 6/21/18 Budget Advisory Committee Meetings - 10/26/17 focused on AY2017 year end - 3/9/18 focused on AY 2018 - next meeting early May focused on AY 2019

Charge 1: Communication (cont’d) UNH Financial Update: 2018 operating margin target changed from 3% ($18M) to 2% ($12.6M). Best estimate now is $10M/$622M = 1.5%. In 2018, Revenues increased 2.3% but Expenses increased 3.6% (salary increases, COLSA hiring after a long period of no hiring, insourced maintenance, $1M less Navitas-related revenue, $15M more in employee compensation) FY2019 – Anticipate revenues to increase by 2% and expenses to be “a challenge”. By March 9th: Undergraduate applications up 3%, deposits down 2%, Graduate applications down but admits up 17%, Great Bay Community College down resulting in 13% reduction in transfer students, UNHM applications down 13% and admits down 19% (demographics)

Charge 2: RCM Goal Achievement Goals: Decentralize financial authority and accountability to the college level; Simplify budget process and improve quality of forecasting and financial planning; Clarify financial condition of UNH and its units. Methodology: Allocate revenues and facilities expenses; Fund central administration costs and strategic initiatives. Verdict: Yes, a significant portion of financial authority has been decentralized to the college level, but understandably, freedom to spend reserves is often limited by UNH operating margin and UNH reserve requirements.

Charge 3: Central Administration Funding Gap Recovery. FY 11 state appropriation cut from $68M to $36M 80% of cut absorbed centrally ($25.6M) RCM tweaked to increase retention rate by 1% per year to resolve the gap 1% reduction in retention rate planned in 2022

Charge 4: Honors Program Residential Program Communications with Jerry Marx: September 20th: “no funds raised to date” February 13th: “The future of the project rests in the Provost’s Office. No substantial support has been received to my knowledge.”

Charge 5: (a) Tuition Increases and (b) Enrollments Determine what factors are driving tuition increases and how this impacts enrollments, both in-state and overall, retention and graduation rates.

Charge 5a: FY 17 Tuition Compared Compared to other Northeast Public Institutions, in 2017, UNH had the: 2nd highest out of 8 for in-state tuition, fees, housing and board ($28,562) after UVM at 5th highest out of 8 for out-of-state tuition, fees, housing and board ($42,272) after UMaine and URI Highest fees of any comparator school

Charge 5a: Published and Net Tuition Increases Average Published and Net Prices in 2017 Dollars, Full-Time In-State Undergraduate Students at Public Four-Year Institutions, 1997-98 to 2017-18 ----- Net tuition and fees increase at a much slower rate Source: The College Board, Trends in College Pricing 2017

Charge 5a: Factors Driving Tuition Increases Low & declining NH State Appropriation at $55.3M (~ $4,500 UG student in FY17) – second lowest in the nation HEPI at 3.7% in FY 17 (highest since 2008 (5%); Fringe benefits at +5.9% But student to faculty ratio is 19-1 at UNH compared to 14-1 nationally Add info from slide 10 here

Charge 5a: Factors Driving Tuition Increases Nationally

Charge 5b: Change in Enrollments Nationally Percent Change from Previous Year, Enrollment by Sector 4% 2% 0% Fall 2014 Spring 2015 Fall 2015 Spring 2016 Fall 2016 Spring 2017 -2% - 4% - 6% - 8% - 10% -10.1% - 12% - 14% - 16% All Sectors 4-Year Public 4-Year Private Nonprofit 4-Year For-Profit 2-Year Public 12 12

Charge 5b: Impact on Enrollment at UNH No substantial impact (yet) as evidenced by steady UG enrollment growth (9.9% from FY08 through FY16), historically high (54.5%) out of state enrollment, and high 1st year retention rate (~86%) and high graduation rate.

Charge 5a: Tuition Increases Average Published Tuition and Fees in 2017 Dollars by Sector, 1987-88 to 2017-18 Public Four-Year cost tripled in 30 years. Source: The College Board, Trends in College Pricing 2017, Figure 3.