Summer Term A Sustainable Approach to Growth Dr. Chula King Interim Provost May 2, 2008

Why Is Summer Term Always a Budget Item? 2  Unlike other divisions, Academic Affairs is only partially budgeted for a 12 month operation. Faculty, our largest resource and expense, are budgeted for only 9 months.  The E&G budget established for summer term years ago is helpful, but is not nearly sufficient to teach the robust 12 month program summer term is on the way to creating.  The goal today is to share with you what summer term actually costs, how summer term is presently funded, and how summer term contributes to the UWF bottom line.  From there, we have a sustainable model to propose.

Summer Term 2007 What Did It Cost? 3

4 3 Month Faculty 9/10 Month Faculty 12 Month Faculty Adjuncts Visiting Faculty Operating Expenses Total Expense by College CAS $1,077,555 $0 $7,049 $183,755 $0 $27,099 $1,295,458 38% COB $849,756 $0 $15,567 $53,642 $3,337 $1,162 $923,465 27% COPS $988,144 $36 $11,995 $99,915 $84,959 $0 $1,185,048 35% How Was The Money Spent? $923,465 $1,295,458 Total Divisional Expense $3,403,971

5 CASCOBCOPS Total Expense$1,295,458$923,465$1,185,048 Provost Office$944,032 73% $685,989 74% $756,378 64% College Funds Includes President’s Opportunity Fund money as per below note $351,426 27% $237,476 26% $428,670 36% How Was Summer 2007 Funded? Total $2,386,399 70% $1,017,572 30% The Provost Office also provided the colleges with $300,000 of non-recurring incentive money at the end of summer term, funded from divisional carry forward dollars. The President’s Opportunity Fund provided $300,000 non-recurring dollars to jump start Summer This was allocated to Marketing ($30,000); CAS ($105,000); COB ($80,000); and, COPS ($85,000). The entire amount was repaid to the President’s Opportunity Fund from incremental summer term revenue. If Summer Term is to be maintained and grown beyond Summer 2007 enrollment levels, each college will need to spend at least as much as the totals shown above.

6 The Bottom Line $666,293 Positive Margin19.4% Return on Investment Less Direct Expenses $3,433,971 Marketing = $30,000 Labor & Expense = $3,403,971 Revenue Generated $4,100,264 Total Amount Due

 Create a new division specifically for Summer Term.  The new division is: › Under the leadership of the Provost; › A self contained revenue and expense unit; › Managed by the Deans and their college business officers; › Open and transparent from the very beginning; › Reported on by Budget & Financial Planning. The Proposal For: A Sustainable Summer Term 7

 The Charge: › Cover all direct costs needed to provide a pedagogically sound, curriculum driven, summer term that meets the needs of our students and of our faculty. › Serve as an exemplary university model for decentralized autonomy and responsibility supported by centralized reporting and analysis. › Generate a positive margin to continue academic growth initiatives, to fuel other investments, and to provide budget relief.  Without margin, there is no mission The Proposal For: A Sustainable Summer Term 8

 Transfer $2,443,131 from Academic Affairs into the new Summer Term Division. › This amount represents the existing E&G budget allocated for Summer Term.  Add $1,000,000 recurring dollars from the University. › This amount represents the FY08 revenue generated in the Student Fee Trust Fund over and above what was budgeted, with an additional $50,000 from centrally held recurring funds. › For this to work, it is essential that enrollment levels be fully maintained.  Use this recurring base money to fund a self contained revenue and expense unit. The Funding Plan 9

 Recurring Appropriation: › Academic Affairs Transfer $2,443,131 › University Supplement $1,000,000 › Total Recurring Budget $3,443,131  Modeled Expenditures: › College of Arts & Sciences $1,295,458 › College of Business $923,465 › College of Professional Studies $1,185,048 › University Advancement $30,000 › Total Expense Budget $3,433,971  Budget (Over)/Under $9,160 Summer Term Budget 10

 By budgeting faculty costs for a full 12 months, it provides immediate budget relief to the colleges thereby improving the faculty and student experience.  Incremental revenues will be shared across divisions in ways that will fuel additional summer term growth: › Academic Affairs – 50% › University Affairs, Student Affairs, University Advancement – 50%  We all win! Why Do It? 11

12 Questions and Answers