Spring 2012 Budget Update March/April 2012 Robert Cramer -Assistant Chancellor Cathy Riedl-Farrey - Director, Financial Services

Tuition Target=$31,789,596Variance Original Estimate $32,507,000$717,000 Fall $33,396,000$1,606,000 Spring $33,990,000$2,200,000 Tuition Pooled Revenue Original Fall FTE Fall 2011 FTEOriginal Spring FTE Spring 2012 FTE Undergrad Resident5,3285,3754,7954,933 Undergrad NonRes Graduate Resident Graduate NonRes TOTAL5,5555,6475,0005,

TSI Revenue Original EstimateFall 2011Spring 2012 Revenue$12,512,350$12,970,970$12,312,950 +$458,620-$658,020 from Fall -$199,400 from Original Enrollment FTE1,2551,3011,

Summary of Items Funded DivisionFTEFY2012FY2013FY2014FY2015FY2016 AAC ,202,455 3,048,466 2,947,428 2,851,847 2,863,625 ADMIN ,151,235 1,120,170 1,004,955 1,033,292 1,035,182 CHANC , , , , ,145 SA , , , , ,700 UNIV WIDE - 2,542, , , , ,700 UR ,391, , , , ,490 TOTAL ,120,275 6,285,810 6,108,926 5,871,216 5,895,022 4

Budget Forecast Model Projected Closing Balances FY2012FY2013FY2014FY2015FY2016 With $300M Lapse but no plan 6,464,686 3,403,463 (600,465) (3,310,501) (5,032,630) With $174.3M Lapse and $1.6M plan 8,881,723 7,948,049 6,361,158 5,778,671 4,056,542 With $300M Lapse and $1.6M plan 8,064,686 6,603,463 4,199,535 3,089,499 1,367,370 Additional Requests 12,903,307 14,164,153 15,803,106 15,671,019 15,788,422 5

Budget Management Proposed Principles – Decision making is made by division leaders (1&2) – Ability to use monies from different sources to meet needs (3&4); – Communications with budget office on decisions that change allocations of funds (5); – Plans for lapse obligations (6); – Prohibition on creating new positions without confirmation of ability to fund them (7); – Ability or inability to ask for additional funds during the year versus reallocating funds (8); – Ability to carry over funds from one year to the next (9). 6

Auxiliary Rates – Segregated Fees Athl/Rec Fac Bond FY25 30 MPSC Bond FY WFH Bond FY WFH Bond FY Athl/Rec Fac Oper Child Care ID Systems Intercoll. Athletics Muni. Svc PAC/Intramural Oper Parking Transportation 0030 MPSC Operations Student Affairs Programming Student Health SUFAC Activity Textbook Total Seg. Fees 1,006 1,029 1,039 1,0431,047 7

Auxiliary Rates – Housing & Meal Plans ** Residence Halls Double 2,900 3,016 3,106 3,260 3,520 Single 3,524 3,660 3,876 4,1004,428 Suite 4,047 4,168 4,293 4,636 5,006 Avg % inc 3.88%3.56%3.00%6.13%8.00% Meal Plans Average Rate1,9092,0622,1022,1652,273 % Inc5.52%8.01%1.91%3.00%5.00% **Rates are as submitted. Needs final Board of Regent Approval 8

Final Budget (all funds) $157 M 9

Final Budget (less aid) $110 M 10

Summary of Fund 102 Reductions Base Budget Items Expected Budget Reduction (7.5.11) ($3,543,000) Tuition Offset & system redistribution of cut2,596,5003,680,300 Subtotal Reductions($946,500)$137,300 Cost to continue items$1,023,024TBD Fringe benefit reduction($1,174,417)- Total Base Budget Change for Fund 102($1,097,893)TBD Additional Budget Lapses (one-time dollars; $ M in also) $174.3 M ($65.8M for UWS)($1,305,136)($555,713) Potential $157.7 M More ($47.5M for UWS)($817,037)($527,549) Total Budget Lapses - $300 M ($113.3M)($2,122,173)($1,083,262)

Lapse Planning Options 3/19/12 handout 12

Questions and Next Steps Proceed with Strategic Planning Implementation of budget lapses 13