1. CALS Faculty Senate Financial Review – April 2017
…CALS Priorities: Food and Energy Systems, Social
Sciences, Life Sciences, & Environmental Sciences…

2. Agenda Priorities Challenges – 2008 – 2018 How we got here
Revenue sources and spending plans
Fiscal Year 16 final results
Controllable vs Non-controllable Costs
CALS strategies for controlling costs in light of reduced revenues, capped enrollments, reduced subsidies and increased costs
Looking ahead

3. Fund capital needs and make progress on deferred maintenance
Priorities
Hire faculty
Fund capital needs and make progress on deferred maintenance
Retain faculty and staff
Enhance student experience
Enable research and outreach

4. Challenges – 2008 – 2018
How did we get here?

5. Significant Changes to Revenues and Expenses
Elimination of deficit spending at the University level
CALS subsidy reduced from $33M in FY14 to $20.5M in FY18, representing a cut of nearly 38%
After University Support Pool (USP) tax is paid (10% of net tuition revenue on undergraduate and graduate professional tuition), the net subsidy as of FY17 to CALS is $12.6 million
Over 30% State reduction since 2008
Flat State Appropriation Still had to pay SIP on state positions resulting in a further decrease in purchasing power
Change in Financial Aid policy, increase costs
Increase in administrative charge (CAM) reflecting full allocation of expenses to responsible units

7. Significant Changes to Revenues and Expenses
Elimination of deficit spending at the University level
CALS subsidy reduced from $33M in FY14 to $20.5M in FY18, representing a cut of nearly 38%
After University Support Pool (USP) tax is paid (10% of net tuition revenue on undergraduate and graduate professional tuition), the net subsidy to CALS is $12.6 million% State reduction since 2008
Over 30% State reduction since 2008
Flat State Appropriation Still had to pay Salary Improvement Program (SIP) costs, resulting in a further decrease in purchasing power
Change in Financial Aid policy, increase costs
Increase in administrative charge (CAM) reflecting full allocation of expenses to responsible units

8. Red line represents reduction in buying power of State funding due to SIP expenses

9. Significant Changes to Revenues and Expenses
Elimination of deficit spending at the University level
CALS subsidy reduced from $33M in FY14 to $20.5M in FY18, representing a cut of nearly 38%
After University Support Pool (USP) tax is paid (10% of net tuition revenue on undergraduate and graduate professional tuition), the net subsidy to CALS is $12.6 million
Over 30% State reduction since 2008
Flat State Appropriation Still had to pay SIP on state positions resulting in a further decrease in purchasing power
Change in Financial Aid policy, increased costs
Increase in administrative charge (CAM) reflecting full allocation of expenses to responsible units

10. Cornell Grant Aid Expenditures (gray boxes = recessions; dotted lines = Cornell financial aid policy changes)

11. Gross and Net Undergraduate Tuition Growth (FY08-FY16)
CALS financial aid bill consumed 19% of Undergraduate tuition in FY08; it consumed 31% in FY16

12. Significant Changes to Revenues and Expenses
Elimination of deficit spending at the University level
CALS subsidy reduced from $33M in FY14 to $20.5M in FY18, representing a cut of nearly 38%
After University Support Pool (USP) tax is paid (10% of net tuition revenue on undergraduate and graduate professional tuition), the net subsidy to CALS is $12.6 million
Over 30% State reduction since 2008
Flat State Appropriation Still had to pay SIP on state positions resulting in a further decrease in purchasing power
Change in Financial Aid policy, increase costs
The budget model has fully allocated expenses to all units based on various formulas. This has greatly increased our administrative expenses.

13. FY14 increase due to change in University Budget Model and full allocation of costs

14. Revenue sources and spending plan
Fiscal Year 16 Actual Results
Controllable vs Non-controllable costs

15. CALS Revenue and Expense – All Sources

16. Total Revenue – FY16 (all fund groups)
Educational Activities and Other Sources includes things such as rental income, sales of products/services, conference & workshop revenue, etc.
Large portion of Educational Activities and Other Sources is related to Lab of Ornithology fees
Interdepartmental Revenue examples:
Internal billing (i.e. depts. Bill each other for services)
Re-charge centers (i.e. CNAL)

17. Total Expenses – FY16 (all fund groups)
-General Expenses include supplies, travel, conferences/seminars, leases, etc.
-Purchased Services include payment for consulting services to vendors, technical services, CIT virtual servers and internal services, etc.
-Indirect cost expense includes the indirect cost paid on grant and restricted gift accounts. These dollars are assessed based on the expense activity in a grant or restricted gift account and go back to the college.

18. Controllable, Semi-controllable and Non-controllable Expenses
Red – Non-controllable
Yellow – Semi-controllable
Blue – Controllable
Non-controllable – 44.5%
Semi-controllable – 18.9%
Controllable – 36.6%
-General Expenses include supplies, travel, conferences/seminars, leases, etc.
-Purchased Services include payment for consulting services to vendors, technical services, CIT virtual servers and internal services, etc.
-Indirect cost expense includes the indirect cost paid on grant and restricted gift accounts. These dollars are assessed based on the expense activity in a grant or restricted gift account and go back to the college.
Note: Percentages differ from those on Slide 11 due to exclusion of Contracts & Grants

19. CALS strategies for controlling costs in light of reduced revenues, capped enrollments, reduced subsidies and increased costs

20. College Response to Impacts on Revenue and Expenses
CALS has implemented various steps:
Closed Education department in 2010
2 Faculty Retirement Incentive Programs
Closed redundant facilities and outsourced operations
Slowed faculty hiring
2009/2010 Staff Retirement Incentive – approx. 10% reduction

21. Department-level steps
18% assessment on unrestricted revenue sources
Minimum F&A on grants and contracts – 18%
Product testing – 18%
Continuing Education & Summer Session
School of Continuing Education takes 40%
Remaining 60% split 1/3 college, 2/3 department
University assessments on reserves (partially passed to depts.)
Funds Functioning as Endowment (FFE) assessment – FY10
Gannett assessment – FY15
Operating budget cuts
no SIP funded for Admin units in FY17 ~2.3% reduction
5% budget cut to all CALS units in FY10.

22. Fund capital needs and make progress on deferred maintenance
What we still must do
Hire faculty
Fund capital needs and make progress on deferred maintenance
Retain faculty and staff
Enhance student experience
Enable research and outreach

23. Renewed focus on Revenue Enhancement Methods
Professional programs
Summer School targeted at high school students
Increased transfers
Target junior transfers – recent University option
Increased enrollment
Positioning for strategic state appropriations:
Plant Innovation and Data Analytics Institute (NYS Life Science initiative; CALS proposal $54 million)
Plant Innovation and Data Analytics Institute (Southern Tier Regional Economic Development Council URI funds, CALS proposal $26 million)

24. Professional Programs
Currently, CALS shares gross tuition revenue on professional degree programs if department develops a cohort model with a target of at least 10 students enrolled. The revenue sharing varies by the tuition tier rate as follows:
Tier 2 tuition: $33,200/year (FY17)
$2,500 per student, with no maximum cap on enrollment
Tier 1 tuition: $50,712/year (FY17)
Proportion of Gross Tuition Revenue Provided to Program
Number of Students
10-19
20-29
30-59
60-99
100+
30% X
35%
40%
45%
50%

25. Department Yield per Student – based on Tier 1 Rate of $50,712/year
Amount to Department per Student based on Enrollment
% Provided to Dept
10-19
20-29
30-59
60-99
100+
30%
15,214
35%
17,749
40%
20,285
45%
22,820
50%
25,356
Example: Tier 1 program with 50 students would yield $1,014,250 ($20,285 x 50) for the department

26. Engineering MEng program
Engineering shares 30% of revenue with departments
College of Engineering no longer gets any University subsidy; now, all departments pay 10% of faculty salaries and 10% of all building costs including utilities
30% share was capped at FY 15 tuition rates (university took all revenue increases in FY 16 and decreased subsidy to all in FY 17). Engineering will revisit cap in FY19
Engineering has almost 500 paying masters students – yielding approximately $7M gross funds to departments and $17M to the college
funds have allowed building renovations for Kimball, Upson and BME

27. Two submitted questions from CALS faculty

28. Annus horribilis I have 2 words for you:
Observation: Only 23% of tenure track faculty are confident in central administration leadership (recent work-life faculty survey).
I have 2 words for you:
Annus horribilis

29. But, CALS is moving on with great confidence, in alignment with University priorities vetted with and supported by President Pollack

30. University’s Strategic Priorities

31. Next question: A&S and Vet had a net loss of tenure track faculty during the recession, but have bounced back. CALS numbers are down. Will we bounce back?

33. Hiring in Key Focal Areas

34. Questions/Comments/Concerns