University of Massachusetts Boston F&A Advisory Group Planning & Budgeting Update May 2015 Office of Budget & Financial Planning

F INANCIAL & C APITAL P LANNING (M ULTI -Y R F CST )

Key findings Expense growth will outpace revenue, leading to a structural deficit

Key findings Enrollment growth continues

Key findings Fixed costs will continue to limit discretionary resources Cumulative expense change FY20 vs FY14

A NNUAL BUDGET (FY16)

Planning & Boston

FY16 Budget Requests

New positions$7.1 million Operating expense$6.7 million Highest value$1.6 million (Executive MBA/MS Acctg) Lowest value$2.5 thousand (operating costs for new hire) 145 requests; 80% under $100.0 thousand 36 items comprise $10.7 million of the $13.8 million total

Available resources Baseline Funding for fixed costs (collective bargaining, depreciation, debt, new building operating costs) Discretionary Option A $1.4 million No new collective bargaining, FY15 one-time spending Option B Revenue options new collective bargaining funds$1.9 million UG enrollment exceeding fcst$1.0 to $4.1 million Increase graduate effective net revenue Pricing of fall/spring online Option C Expense reductions/ cost avoidance Avg class size Use of RTF Other funding for graduate waivers

Schedule for Annual Budget Feb/early Markick-off meetings with VC areas Mar/AprVC area budget development Apr 30completed VC budget requests May 7consolidated request complete May 21–Jun 11 Chris, Provost, Ellen Mid Junfinal recommendations to Chancellor

Schedule for Annual Budget Closing FY15 Clear expense errors Opening FY16 May 22Organization unit (OU) changes May 27Base operating budget review May 29PAs moving to a different funding source in FY16 Jun 3Position mgmt. review