FY 2010 Interim Plan WVU Board of Governors June 5, 2009

FY2010 Interim Plan Timeline June 5, 2009 – Adoption of an FY 2010 Interim Forecast November 6, 2009 – Adoption of the FY 2010 Forecast 2

Budget Uncertainty State Appropriations Revenues Budget Reduction – One-time reduction $6 million Use of Federal Stimulus Funding – pending Tuition and Fees Revenues – should be known by September Impact of Current Economic Conditions on Enrollment First –Time Freshman Transfer Students Returning Students Total Students – 28,500 Endowment Spend Revenues -evaluation of impact on colleges should be known by July 3

4 Anticipated Changes in State Appropriations Dollars in Thousands

First-Time Freshman Enrollment Projections Based on Admits 2,175 2,611 4,786 5

Freshman Enrollment Projections Based on Confirmations 1 4,557 2,431 2, Confirmations include academic deposits, housing deposits and or registration for orientation. If a prospective student Has taken any of these actions they are reflected a confirmed for purposes of this analysis. Total Non-Resident Resident

Freshman Enrollment Projections Based on Applications and Confirmations 1 7 4,557 4,785

Interim Plan - Planning Framework Maintain a balanced budget excluding unrealized investment losses and GASB 45 Liabilities. Encourage normal mission-driven operations to maintain academic quality and limit burdensome spending restrictions, e.g. hiring and travel freezes, additional approvals on capital items. Define strategic priorities and invest in those priorities during this uncertain financial environment; e.g. research enterprise, salary increases, new faculty and staff positions, and new programs. Focus on identifying new sources of revenue and operating efficiencies. Recognize that tuition revenue is paramount to the University’s long-term success. Therefore, we must be sensitive to changing market conditions. Limit the impact of permanent budget cuts until there is greater certainty about the level of state support and other revenue sources. Effectively manage cash and other resources needed to maintain financial stability and to deal with unforeseen events.

WVU Financial Plan FY2006 – FY2010 9

WVU Financial Plan Operating Revenues Dollars in Thousands 10

WVU Financial Plan Operating Revenue Highlights Dollars in Thousands 11 State Nongovernmental FederalState Nongovernmental

WVU Financial Plan 12 WVU Financial Plan Tuition Increase History

WVU Financial Plan Operating Expenses Dollars in Thousands 13

WVU Financial Plan Operating Expenses Highlights Dollars in Thousands 14 GASB 45

WVU Financial Plan Salary Increase History 15

WVU Financial Plan Non-Operating Revenues (Expenses) Dollars in Thousands 16

WVU Financial Plan Non-Operating Revenues (Expenses) Highlights State Appropriations All Other Non-Operating Revenues (Expenses) Dollars in Thousands 17

18 WVU Financial Plan FY2010 Interim Forecast Dollars in Thousands

19 WVU Financial Plan Dollars in Thousands Income Before Other Activity

WVU Financial Plan Dollars in Thousands Increase (Decrease) in Net Assets 20

WVU Financial Plan Dollars in Thousands Increase (Decrease) in Net Assets 21