Town Hall Meeting: Development of Next Two-Year Budget and Strategic Initiatives Implementation (FY2010 and FY2011) January 21, 2009 Presented by: Scott Bass, Provost and Don Myers, Vice President of Finance

2 University Budget Committee Members (FY ) Co-chairs Scott Bass Don Myers Members John DouglassEric Goldstein Stacy SnellingAlexis Bawden Jim GirardKativa Parker Janice FlugGail Hanson Khalid Resource Persons Nana An Vi Ettle Karen Froslid-Jones

3 INTRODUCTION  General environment  AU strategic planning  AU budget planning

4 Freshmen Admissions Statistics Fall /21/081/21/09% Change Applications15,13214,667(3.1%) Early Decision Applications % Early Decision Admits % Source: Office of Enrollment

5 TIME TABLE December 1, 2008President issues call to the provost and vice presidents for development of strategic objectives, action steps and budget proposals. December 2 – 19, 2008 Provost and vice presidents develop an initial set of university- wide objectives and action steps, priced and prioritized; The University Budget Committee (UBC) begins construction of enrollment and revenue models and conducts outreach, including town meeting(s); The Strategic Planning Steering Committee (SPSC) requests community comment and input on existing inventory of suggested action steps; The President’s Council and SPSC review and discuss possible action steps for the first two-year phase of plan implementation.

6 TIME TABLE (continued) December 20, 2008 – January 5, 2009 Provost and vice presidents refine objectives, action steps for each goal, prioritized and priced; President meets with Provost and vice presidents individually to review objectives, action steps and proposed budgets; Provost and vice presidents submit budget proposals, incorporating prioritized action steps to the President. January 5 – 23, 2009 President reviews objectives and action steps and other elements of proposed budgets; President sends a preliminary summary of strategic plan action steps to the community for input (Jan. 16); President transmits proposed budgets to Budget Office and UBC for further processing and deliberation; UBC continues deliberations and outreach.

7 TIME TABLE (continued) January 24 – February 11, 2009 Faculty Senate issues recommendations on the two-year budget to the Provost; UBC develops proposed budget and transmit to President for review; President formulates strategic plan objectives, action steps and final budget for the next two years for submission to the Board. February 26 – 27, 2009 Board of Trustees approves the strategic plan objectives, action steps and the FY budget.

8 TIME TABLE (continued) March, 2009 President communicates final versions of objectives, action steps and budget to the campus community; President communicates budget allocations to the provost and vice presidents. May 1, 2009New fiscal year begins.

9 Campus Constituencies Strategic Planning Steering Committee Faculty Senate Student Government Graduate Leadership Council Student Bar Association Staff Council Or

10 TUITION AND OTHER PRICING SummerMarket competitive particularly graduate level Undergraduate4.5% - 6.5% Graduate4.5% - 6.5% MBA and Business Graduate Proposed at 3% Law4.5% - 6.5% Distance Learning in Summer $2,400 per course Residence Halls4.5% - 6.5% Technology Fee (per semester) Full-time: $95 to $120 Part-time: $30 to $40 Parking FeeSame as salary pool increase

11 ENROLLMENT MODELING SummerBased on Summer 2008 actual level Undergraduate1,375 freshmen; 350 transfers; 4,372 returning AU Abroad 350 – 360 for fall; 280 for spring GraduateSteady state as FY2009 budget Washington Semester 300 credit; 115 international; 100 mentorship students Nondegree and Institutes Steady state as FY2009 budget Law1,185 full-time; 3,000 part-time credit hours

12 BUDGET MODELING Salary Pool 3% in September 2009 and 2010 pending market conditions Benefits Health insurance Auto-Enroll 403(b) Plan effective May 2009 Fed/D.C. Regulations Minimum wage increase to $8.25/hour Financial Safeguards Tuition management: 1.5% of tuition and fee; Quasi-endowment: 2% of operating budget; CRDM (Capital Renewal and Deferred Maintenance); Pre-funding salary increase; PC Replacement Facilities New SIS building operations & CRDM; Facilities Modernizations; Furnishings & Equipment; Utilities

13 IMPLEMENTATION OF STRATEGIC PLAN INITIATIVES Please see President Kerwin’s summary of the Strategic Plan objectives and action plans for the next two years.