General Fund Budget Fiscal Year 2003

Oakland University Proposed General Fund Budgets FY 2003 Revenue Sources Overview Key Operating Environment Measures FY 2003 Budget Assumptions Non-Discretionary Budget Increases Academic Affairs Highlights and Priorities Other Budget Priorities

Revenue Sources Overview

FY 2001 Unrestricted Education and General Revenue Sources Oakland Peer Average Compared to its peers, Oakland University is relatively more reliant on tuition and fees to support its Education and General Expenditures than on state appropriations. Source: FY 2001 Financial Statements of OU & Peer Institutions

Oakland University Peer Institutions Wichita State Cleveland State Indiana State Wright State Akron University of Missouri – St. Louis University of Nevada Las Vegas

FY 2001 Unrestricted Education and General Revenue Sources Oakland Michigan Average Source: FY 2001 Financial Statements from OU and Michigan Institutions Compared to other Michigan institutions, Oakland University is relatively more reliant on tuition and fees to support its Education and General Expenditures than on state appropriations. Michigan data does not include three major research universities (MSU, UM & WSU).

Source: OU Financial Statements Comparison of General Fund Revenue Sources FY 1991 and FY Since 1991, Oakland University’s relative reliance on tuition and fees in the General Fund has grown from 39% to 51% in 2001.

Michigan Public Universities % Growth in Appropriation/FYES from FY 1997 to FY 2002 Source: FY Higher Education Appropriations Report

Appropriation per FYES FY 2002 (Ranked) Source: FY Higher Education Appropriations Report

Comparison of State Appropriation Increase with Tuition and Required Fees Increase

Key Operating Environment Measures

FY 2001 Unrestricted Education and General Expenditures Oakland Peer Average Compared to its peers, Oakland University spends more of its Education and General Funds on Instruction, Institutional Support and Student Services, and less on Plant Maintenance, Public Service, and Academic Support. Source: Financial Statements OU and Peer Institutions Institutional Support 11% Institutional Support 14%

FY 2001 Unrestricted Education and General Expenditures Oakland Michigan Average Compared to other Michigan institutions, Oakland University spends more of its Education and General Funds on Instruction, Student Services, and Research and less on Public Service, Financial Aid, Plant Maintenance, and Academic Support. Michigan data does not include three major research universities (MSU, UM & WSU). Source: Financial Statements OU and Michigan Institutions Institutional Support 13%

Fiscal Year Equated Students (FYES) Per Full-Time Equivalent Faculty (FTEF) FY 2001 UNIVERSITYFYES/FTEF NMU20.86 OU19.60 SVSU19.30 EMU19.05 CMU18.65 GVSU18.02 UMF16.65 UMD16.26 LSSU16.26 FSU15.61 WMU15.01 MTU12.40 MSU12.01 UMAA11.37 WSU10.99 AVERAGE 11 (Excluding OU, MSU, UMAA, WSU)17.10 Source: Heidi Data Base

Michigan Universities General Fund Expenditures Per FYES FY 2001 UMAA$27,619 MTU 17,971 Dollars WSU 17,122Median$ 9,534 MSU 15,101Average 15 12,328 FSU 12,391Average 12 10,423 NMU 11,240 UMD 10,649 UMF 9,534 OU 9,418 (9 th ) GVSU 9,231 WMU 9,207 LSSU 9,070 EMU 8,883 CMU 8,846 SVSU 8,628 Source: Heidi Data Base

Ratio of Credit Hours per Headcount at Michigan Public Universities FY 2001 Source: Heidi Data Base

Gross Sq Feet Per FYES in Michigan FY 2001 Univ.Ft 2 /Student UMAA351.8 MTU348.3 MSU327.9 NMU293.8 WSU293.6 LSSU274.4 FSU183.6 WMU162.6 UMD159.1 SVSU149.8 EMU141.6 CMU137.1 OU117.6 GVSU109.1 UMF107.9 Classroom space, in modules, expanded from 1,200 in Fall 1999 to 1,305 in Fall 2000 with addition of Elliott Hall. Module utilization in Fall 1999 was 75.9%. Available modules were almost all during the day. Night class schedules are close to 100% of module utilization. Source: Heidi Data Base

Viron energy service agreement Energy metering and monitoring system Medical Insurance: $500,000 $160,000 - Prescription drug co-pays - Increase stop-loss level - Reduce rate stabilization reserve $163,000 $33,000 $157,000 School of Nursing partnerships Electronic distribution of reports $69,000 $50,000 Cost Containment Strategies

Outsourcing - Custodial services (annual) - Central Stores - St. John’s / MBHEI partnership $150,000 – 175,000 $164,000 $150,000 Reorganizations - Purchasing - Facilities Management $71,000 $55,000 Cost Reduction Efforts

Revenue Generation Pepsi exclusive beverage agreement $ 346,000 Bookstore (lease revenue) $ 400,000 Meadow Brook Music Festival $ 105,000 Food Service $ 111,000

FY 2003 Budget Assumptions

FY 2003 Revenue Assumptions State appropriation projected to remain at FY 2002 level. Average full-time resident undergraduate tuition and fees rate proposed to be increased by 8.47%. Increase in Recreation Center Fee by $2 per semester to cover operational cost increases that occurred since Increase the General Service Fee by $5 per semester, to support improvements in parking. A FYES target enrollment of 13,300. This is 8.13% above the FY 2002 budget and 5.6% above the projected actual FYES for FY Other revenue increases include $65,000 associated with growth in Charter School activities, and $200,000 in projected Indirect Cost Recovery growth based on actual FY 2002 increases continuing into FY 2003.

Oakland University General Fund Budget Revenues Fiscal Year 2002 Total Proposed Revenues: $111,634,751 Note: Effective FY 2001, Financial Aid is reported as a tuition discount. This has the effect of reducing the percentage of revenues generated by tuition and fees. Gross tuition and fees (before the offset) would be 53.1% of the gross total and state appropriation would drop to 44.5%.

Oakland University General Fund Budget Revenues Fiscal Year 2003 Total Proposed Revenues: $121,074,037 Note: Effective FY 2001, Financial Aid is reported as a tuition discount. This has the effect of reducing the percentage of revenues generated by tuition and fees. Gross tuition and fees (before the offset) would be 56.5% of the gross total and state appropriation would drop to 41.0%.

Non-Discretionary Budget Increases

Non Discretionary Increases Compensation increase pool School of Education and Human Services building operating costs Parking structure operating costs Property insurance increase Debt service for Series 2001 bonds $3,900,000 $538,855 $67,725 $303,393 $304,146

Academic Affairs Highlights and Priorities

New faculty funding$500,000 Reallocation of faculty position funding$1,500,000 CE/Incentive programs faculty growth$507,000 CE/ Incentive operating support$348,000 Part-time faculty increase$88,000 Operating support to meet growth$100,000 Increase in Course Fee allocation$105,000 Enhancing Instruction Programs

Library acquisitions$168,600 Advising staff in SEHS$53,500 Financial Aid technology support$73,500 Other support staff$192,000 Additional Academic Support

Oakland University Full-Time Faculty Headcount The Part-time faculty budget has increased by $4 million since 1995.

Comparison of Total General Fund Budget to Academic Affairs Allocation 64.2% 66.6%65.6% 68.6% 67.1% 67.2% * While FY 2003 compensation increases have not yet been determined, $2.5 million of the total compensation pool has been estimated to be part of Academic Affairs.

Comparison of Academic Affairs Budget Percent Increase to FYES Percent Increase FYES Increase is actual, FY 2002 is estimated actual, FY 2003 is budgeted. * While FY 2003 compensation increases have not yet been determined, $2.5 million of the total compensation pool has been estimated to be part of Academic Affairs. $3.9 $2.3 $4.4 $4.7 $ (In Millions)

Other Budget Priorities

Student Financial Services customer service enhancements Commencement and new student convocation $97,400 $49,802 Student Affairs technology support$55,944 Placement and Career Services – Resume Expert$35,782 Retention Specialist – Office of Equity$22,414 Counseling Services$13,196 Increase supplemental instruction sections$13,000 Athletics Division I enhancements$50,000 Improved Service to Students

Four additional police officer positions Fire safety code compliance Improved training, equipment for OUPD $188,000 $22,700 $12,400 Health and Safety Improvements

University Relations staffing and support for Capital Campaign Strategic Initiatives fund $250,000 $300,000 Contingency fund$200,000 Budget monitoring process staffing$48,800 Other Priority Budget Allocations

FY 2003 General Fund Budget - END-