0. The Citadel Foundation Volunteers Conference
The Citadel’s Financial Update
The Citadel Foundation
Volunteers Conference
Colonel Sue Mitchell, CPA, MBA
Vice President of Finance and Business Affairs
March 13, 2010

1. Overview
Successes at The Citadel
Current funding picture
How you can help

2. We’re #1 in the U.S. News and World Report
No. 1 best value among master’s degree-granting colleges in the South
No. 2 best public master's degree-granting institution in the South
No. 5 among all master's degree-granting colleges and universities in the South
No. 26 undergraduate engineering
program (34 last year)

3. The Citadel 4-year Graduation Rate Tops SC
Represents efficiency and effectiveness by maximizing value to students and parents.

4. The Citadel is priced competitively
Ref: Commission on Higher Education Analysis of Tuition & Required Fees for Full-time
Undergraduate and Graduate Students, AY 09-10

5. State Appropriations History
SC Higher Education appropriation per capita for FY09 is
42nd in the nation*
*Per The Center for the Study of Education Policy at Illinois State
Percent State Appropriations of Budget

6. State Funding Doesn’t Last Very Long…
With our FY10 $88M expense budget, State appropriations (with stimulus) only cover us for 56 days! Till Aug 25th
Projected FY11
with cuts =
47 days!
Till Aug 16th
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun

7. *Per The Center for the Study of Education Policy at Illinois State
State Funding
% Changes* *
Over last 10 years:
SC = %
lowest in the Nation+
Avg. = +48.5%
+ Prior to FY11 proposed 21% cut
*Per The Center for the Study of Education Policy at Illinois State

8. State Appropriations*
The Citadel’s
State Appropriations*
Base state appropriation $16,287,740
FY08/09 Reductions ($3,940,592)
FY 09/10 Reductions (so far) ($1,090,924) Total reduction ($5,031,516)
Revised state appropriation $11,256,224
Total percent reduction taken %
FY10/11 HW&M “proposal” $ 8,892,417
Add’l cut = 21.00% ($2,363,807)
Possible 3-yr cuts ($7,395,323) %
* Without one-time stimulus funds. 8 8 8

9. FY09 & FY10
Budget Reductions

10. State Appropriation Cuts Demanded Painful Decisions in FY10
Enacted 10 reductions-in-force
Have not filled 71 positions currently vacant
Established a six-month hiring freeze
Cut adjunct budget by 25%
Increased student/faculty ratio
Decreased course sections by 3%
Delayed implementation of strategic plan initiatives

11. Debt Service
Repayment Timeline

12. A New Fiscal Environment
Operate more like a business
Improve efficiencies
Enhance revenues
Be entrepreneurial
Maximize auxiliary revenue
Increase Citadel Graduate College enrollment
Build new relationships
Boeing
SPAWAR
SCANA

13. Steps We Are Taking Closed non-profitable print shop
Laundry operations under new management
Combined buying power with other universities
Savings = over $200,000
Auxiliaries adding new profitable services
Monogramming, laser engraved name tags
Exploring business partnering & outsourcing options
Launching campus One-Card (purchasing convenience)

14. Foundation Fund Balances
Total $252.2M
$8.4M
Total $193.6M
$7.3M
Millions
$173.9M
$130.5M
$69.9M
$55.8M
Total Reduction in FY08/09 = $58.6M
Potential for student scholarship impact

15. How You Can Help Set the Example Understand our Needs
Unrestricted Gifts
Blueprint Strategic Initiatives
Tell our Story

16. Thank You! Your contributions preserve our traditions and
build the legacy for
The Principled Leaders
of the Next Generation!

17. Questions