University Planning and Budget Committee May 26, 2016

Committee Membership Jordan Bates, Chair, Vice President for University Planning and Budget of the Professional and Scientific Council. Tera Lawson, President of the Professional and Scientific Council, University Budget Advisory Committee Clayton Johnson, President-Elect of the Professional and Scientific Council Amy Tehan, Past-President of the Professional and Scientific Council Darin Wohlgemuth, Assistant Vice President, Financial Planning and Budgets Bart Dobson, Business and Finance Advisory Committee Camille Schroeder, Student Affairs Advisory Committee Soma Mitra, Fiscal Officer, College of Business, Division of Academic Affairs Josie Six, Fiscal Officer, College of Agriculture and Life Sciences, Division of Academic Affairs The current membership of the Professional and Scientific Council University Planning and Budget Committee includes: Jordan Bates, Chair, Vice President for University Planning and Budget of the Professional and Scientific Council Tera Lawson, President of the Professional and Scientific Council, University Budget Advisory Committee Clayton Johnson, President-Elect of the Professional and Scientific Council Amy Tehan, Past-President of the Professional and Scientific Council Darin Wohlgemuth, Assistant Vice President, Financial Planning and Budgets Bart Dobson, Business and Finance Advisory Committee Camille Schroeder, Student Affairs Advisory Committee Soma Mitra, Fiscal Officer, College of Business, Division of Academic Affairs Josie Six, Fiscal Officer, College of Agriculture and Life Sciences, Division of Academic Affairs These individuals are both representatives on this committee and the other budget advisory committees across campus. We have representation from the President’s Office, Business and Finance Advisory Committee, the Student Affairs Advisory Committee, and two fiscal officers from the division of academic affairs as there is not an advisory committee within academic affairs.

Budget Discussions Iowa State will receive $2.2 million in new money from the state. 2016-2017 tuition rates Salary increases for Professional and Scientific Employees and Faculty Main topics being discussed include: Iowa State will receive $2.2 million in new money from the state. Although this may not be the $8.2 million that we asked for, I’d like to stress that it is the fifth consecutive year of increased funding and we are definitely in a better position than some of our peers if you look at the level of state funding in some of the surrounding states and nationally. That being said, a necessary tuition increase proposal for 2016-2017 tuition rates will go before the Board of Regents during the June 8th meeting for the first read and a second read will be required. These would be in addition to the tuition increases that were approved by the Board of Regents last December. Salary increases for Professional and Scientific Employees and Faculty

Budget Discussions Utilization of revenue generated from the international student tuition increase Fringe Benefit Pool Utilization of the revenue generated from the international student increase A total increase of $1,500 per year will be charged to international student tuition. This is a three year ramp-up. Meaning $500 in Year 1, $1,000 in Year 2, and $1,500 in Year 3. The revenue generated will be held centrally and passed through to areas of the university that provide services to directly address the needs of international students. For Year 1, the Senior Vice Presidents submitted proposals to the President’s Office of programs that serve international students that need funding. These proposals were submitted in priority order. It is my understanding that these are existing programs and costs were being absorbed by the areas providing the services. Funding is needed to continue or improve operations. Proposals for Year 2 and Year 3 will be accepted in the future and show focus on new and expanded programs for international students. There should be a communication coming out that will detail the priorities being funded, stay tuned for that communication.   Another topic discussed is that Iowa State will move to a fringe benefit pool model. This is pending approval, but should be effective July 1st. From an employee perspective, nothing changes. But what a fringe benefit pool model does is more appropriately charges grants their portion of health insurance for 9 month employees. This will save the university approximately $3.5 million from the general fund. This money can then be used for other priority purposes. The Committee plans on meeting again in mid-July to discuss the financial environment as we should have a better picture of funding at that time.