1. Winter 2018 FAC Interim Report
Philip Hatcher, CEPS
Committee:
William Knowles, PCBE
Christine M. Shea, PCBE, chair
John Lacourse, CEPS
Kenneth Baldwin, CEPS
Stephan Shipe, PCBE
Stephanie Clarke, COLSA
Charli Valdez, COLA
Michael Gass, CHHS

2. Charge 1: Communication
VPFA Meeting October 17: Focused on RCM and
Funding Gap Recovery
Board of Trustees Investments and Financial Affairs meetings attended or planning to attend: 10/19/17, 2/1/18, 5/19/18, 6/21/18
Budget Advisory Committee Meetings
- 10/26/17 focused on AY2017 year end
- 3/9/18 focused on AY 2018
- next meeting early May focused on AY 2019

3. Charge 1: Communication (cont’d)
UNH Financial Update:
2018 operating margin target changed from 3% ($18M) to 2% ($12.6M). Best estimate now is $10M/$622M = 1.5%.
In 2018, Revenues increased 2.3% but Expenses increased 3.6% (salary increases, COLSA hiring after a long period of no hiring, insourced maintenance, $1M less Navitas-related revenue, $15M more in employee compensation)
FY2019 – Anticipate revenues to increase by 2% and expenses to be “a challenge”. By March 9th:
Undergraduate applications up 3%, deposits down 2%,
Graduate applications down but admits up 17%,
Great Bay Community College down resulting in 13% reduction in transfer students,
UNHM applications down 13% and admits down 19% (demographics)

4. Charge 2: RCM Goal Achievement
Goals: Decentralize financial authority and accountability to the college level; Simplify budget process and improve quality of forecasting and financial planning; Clarify financial condition of UNH and its units. Methodology: Allocate revenues and facilities expenses; Fund central administration costs and strategic initiatives. Verdict: Yes, a significant portion of financial authority has been decentralized to the college level, but understandably, freedom to spend reserves is often limited by UNH operating margin and UNH reserve requirements.

5. Charge 3: Central Administration Funding Gap Recovery.
FY 11 state appropriation cut from $68M to $36M
80% of cut absorbed centrally ($25.6M)
RCM tweaked to increase retention rate by 1% per year to resolve the gap
1% reduction in retention rate planned in 2022

6. Charge 4: Honors Program Residential Program
Communications with Jerry Marx: September 20th: “no funds raised to date” February 13th: “The future of the project rests in the Provost’s Office. No substantial support has been received to my knowledge.”

7. Charge 5: (a) Tuition Increases and (b) Enrollments
Determine what factors are driving tuition increases and how this impacts enrollments, both in-state and overall, retention and graduation rates.

8. Charge 5a: FY 17 Tuition Compared
Compared to other Northeast Public Institutions, in 2017, UNH had the:
2nd highest out of 8 for in-state tuition, fees, housing and board ($28,562) after UVM at
5th highest out of 8 for out-of-state tuition, fees, housing and board ($42,272) after UMaine and URI
Highest fees of any comparator school

9. Charge 5a: Published and Net Tuition Increases
Average Published and Net Prices in 2017 Dollars, Full-Time In-State Undergraduate Students at Public Four-Year Institutions, to
Net tuition and fees increase at a much slower rate
Source: The College Board, Trends in College Pricing 2017

10. Charge 5a: Factors Driving Tuition Increases
Low & declining NH State Appropriation at $55.3M (~ $4,500 UG student in FY17) – second lowest in the nation
HEPI at 3.7% in FY 17 (highest since 2008 (5%); Fringe benefits at +5.9%
But student to faculty ratio is 19-1 at UNH compared to 14-1 nationally
Add info from slide 10 here

11. Charge 5a: Factors Driving Tuition Increases Nationally

12. Charge 5b: Change in Enrollments Nationally
Percent Change from Previous Year, Enrollment by Sector 4% 2% 0%
Fall 2014
Spring 2015
Fall 2015
Spring 2016
Fall 2016
Spring 2017
-2%
- 4%
- 6%
- 8%
- 10%
-10.1%
- 12%
- 14%
- 16%
All Sectors
4-Year Public
4-Year Private Nonprofit
4-Year For-Profit
2-Year Public
12 12

13. Charge 5b: Impact on Enrollment at UNH
No substantial impact (yet) as evidenced by steady UG enrollment growth (9.9% from FY08 through FY16), historically high (54.5%) out of state enrollment, and high 1st year retention rate (~86%) and high graduation rate.

14. Charge 5a: Tuition Increases
Average Published Tuition and Fees in 2017 Dollars by Sector, to
Public Four-Year cost tripled in 30 years.
Source: The College Board, Trends in College Pricing 2017, Figure 3.