FY 2012/13 Budget Update Board of Governors Finance, Administration, and Facilities Committee April 4, 2012

Agenda  2012/13 Budget Request  Governor’s Recommendations  Revised PASSHE Projections PASSHE Budget Status

2012/13 E&G Budget as Approved by Board Dollars in Millions Note: Numbers may not add due to rounding. Revenue/Sources2011/122012/13$ Change% Change Tuition$841.1$868.4$ % Fees % State Appropriation % All Other Revenue (0.3)-0.4% Use of Carryforward Funds (7.3)-37.9% Total Revenue/Sources$1,517.9$1,549.1$ % Expenditures & Transfers Salaries & Wages$783.9$788.9$5.00.6% Benefits % Subtotal, Compensation$1,100.8$1,133.0$ % Utilities % Services & Supplies (1.8)-0.7% Capital Expenditures & Transfers (0.3)-0.2% Total Expenditures & Transfers$1,517.9$1,549.1$ % Revenue/Sources Less Expenditures/Transfers $0.0

Commonwealth Outlook  “Pennsylvania economy is still in recovery and has not yet emerged from the ‘Great Recession.’”  Mandatory expenditure increases are projected to eclipse revenue projections. Pensions, healthcare, corrections, debt service State Revenues $386.9 million or 1.9% below estimate -3.4% -6.1% -3.5% *Estimates are not provided for July * -3.6% -5.9% -0.5% 0.9% 2.4%

$ in Millions 18% Reduction PASSHE Appropriations *E&G appropriation of $412.8 million. Governor has asked PASSHE to set aside 5% for the Commonwealth budget, if needed. **Based upon Governor’s Recommended Commonwealth Budget. Potential 5% “Give Back” 20% Reduction

1988/ /13

Note: Other Revenue includes Federal appropriations; Line Items are excluded from chart. $13,809

2012/13 Governor’s Recommendation Dollars in Millions Note: Numbers may not add due to rounding. Revenue/Sources2011/122012/13$ Change% Change Tuition$841.1$847.3$6.10.7% Fees % State Appropriation (82.6)-20.0% All Other Revenue (0.3)-0.4% Use of Carryforward Funds (7.3)-37.9% Total Revenue/Sources$1,517.9$1,435.0($82.9)-5.5% Expenditures & Transfers Salaries & Wages$783.9$788.9$5.00.6% Benefits % Subtotal, Compensation$1,100.8$1,133.0$ % Utilities % Services & Supplies (1.8)-0.7% Capital Expenditures & Transfers % Total Expenditures & Transfers$1,517.9$1,556.0$ % Revenue/Sources Less Expenditures/Transfers $0.0($121.0)

Note: Numbers may not add due to rounding. Revised Enrollment Projections Annualized FTE Students 2011/12 % Change2012/13 FTE Change % Change Original Undergraduate99,7580.3%100, % Graduate11, %11, % Total111, %112, % Revised Undergraduate98, %99, % Graduate11, %11,303(12)-0.1% Total110, %110, % Difference(1,497)(1,596)

2012/13 Expenditure Assumptions, Revised  Address staffing needs with existing funds Reductions due to enrollment decreases  Salaries No change for bargaining units without contracts  Benefits Healthcare rates: 0–10% increase  PASSHE program rate increases: 0–5.6% Retirement increases: SERS—52%; PSERS—81%  Operating Utilities: 3% increase; all other: similar to current year Capital/Transfers: similar to current year; fund Key ’93 projects from E&G budget

2012/13 Revised Budget Projections Dollars in Millions Note: Numbers may not add due to rounding. Revenue/Sources 2012/13 Feb Tuition$847.3 Fees175.3 State Appropriation330.2 All Other Revenue70.2 Use of Carryforward Funds12.0 Total Revenue/Sources$1,435.0 Expenditures & Transfers Salaries & Wages$788.9 Benefits344.1 Subtotal, Compensation$1,133.0 All Other Expenditures/Transfers423.0 Total Expenditures & Transfers$1,556.0 Revenue/Sources Less Expenditures/Transfers ($121.0)

2012/13 Revised Budget Projections Dollars in Millions Note: Numbers may not add due to rounding. Revenue/Sources 2012/13 Feb /13 April 2012 Tuition$847.3$835.5 Fees State Appropriation330.2 All Other Revenue70.2 Use of Carryforward Funds12.0 Total Revenue/Sources$1,435.0$1,421.9 Expenditures & Transfers Salaries & Wages$788.9$786.9 Benefits Subtotal, Compensation$1,133.0$1,124.2 All Other Expenditures/Transfers423.0 Total Expenditures & Transfers$1,556.0$1,547.2 Revenue/Sources Less Expenditures/Transfers ($121.0)($125.3)