Budget Update January 15, 2019

Fiscal 2019 and 2020 Update FY19 Projecting a small deficit in FY19 (~$2.0M) Monitoring Spring enrollment for improvement/deterioration of revenue Utilizing variance reports to inform forecast Tracking known positive and negative variances Q1 Variance reports OBFP file summarizing all required variances & explanations OBFP contact individual areas if explanations are missing and schedule meetings in cases of significant variances requiring further discussion Looking at measures to close the gap Anything areas can do to support –Summer enrollment, retention efforts (add/drop ends 2/4), cost reductions, etc.

Fiscal 2019 and 2020 Update FY20 Budget templates/instructions/calendar to be finalized next week Look and feel similar to FY19 budget template FY16, FY17, FY18 and YTD FY19 actual, FY19 budget @12/31/2019 Subsidiaries will change due to Axiom design needs but totals will tie to history FY20 is in a deficit position ($5.0M+) Leadership team looking at strategic options to close gap Flat funding AND cut scenario templates (2) Cut scenario % will be across payroll and non-payroll spending and will augment the strategic options that campus leadership is reviewing Flat scenario will hold harmless for CB increases. Well researched and planned revenue options that have a net positive impact on FY20 will be considered