1. Planning and Budget Committee February 12, 2016

2. Agenda How are we doing? How are we doing? – 1 st Qtr Results and a Year to Year Comparison What’s happening elsewhere What’s happening elsewhere? – Trends in funding, tuition Should we raise tuition? Should we raise tuition? – Historical review Does raising tuition affect enrollment? Does raising tuition affect enrollment? – Competitors Can we do what we need to do without raising tuition? Can we do what we need to do without raising tuition? – Alternative sources of revenue

3. 1 st Quarter Results

4. 1 st Quarter Results Budget Reflecting Sequester of Funds

5. Period Ending Jan 2015 to Jan 2016 Comparison

6. Trends in Higher Education - Funding Kentucky governor proposed budget would cut higher education by 9% in the next two fiscal years. (WDRB.com 2/8/16) Louisiana universities will have to cut $131 million from their budgets before June 30, if taxes are not raised. (The Times-Picayune– 1/25/16) West Virginia governor proposes a $14 million cut to higher education this year. (WV Public Broadcasting 1/19/16)

7. Trends in Higher Education - Tuition and costs Tuition/fees at public 4-yr institutions was 40% higher (adjusting for inflation) in 2015-16 than in 2005-06. (Trends in College Pricing 2015 – Collegeboard.org) Student Loan Debt - $1.2 trillion (EdSurge 1/19/2016) – Pell Grant maximum $5,815 per year – Leaves a gap for AUM students of over $1000 per year Tennessee Promise – “last –dollar scholarship” for students to attend a community/technical school for two years (Tennessee Promise.gov)

8. Data from ACHE Annual Tuition and Required Fees Analysis

11. Data from ACHE Institutional Enrollment Summary Reports

12. Alternative Sources of Revenue Increase external funding – Defray cost of base budget staff and expenses – Base budget then can be used for “wants” Increase retention

13. Alternative Sources of Revenue Increase Credit Hour Production

14. Needs vs. Wants Needs $297,000 - Faculty positions 500,000 - Deferred Maintenance 50,000 – Faculty Promotions Wants $386,760 – 1% Salary Increase 386,760 - 1% Salary supplement

15. Reminders No lay-offs have occurred since 2010 Salaries were increased in FY16 by 3% (1% merit and 2% supplement) No travel or hiring freezes are in place at this time

16. Questions?