1. Building the Campus Reserve to support a sustainable financial future.
Todd Foreman
Vice President Finance and Administration
College senate
December 4, 2017

2. Strategic Plan 2015: Scholarship, Service, Strength
Goal #4
Strengthen the college’s financial sustainability.
Objective C.
Restore annual operating reserve to 15% of State support by increasing revenue and operating more efficiently.
STRENGTHEN THE COLLEGE'S FINANCIAL STABILITY

3. Why do we need reserves? Revenue shortfalls Unforeseen expenditures
Campus Reserves
Why do we need reserves?
Revenue shortfalls
Unforeseen expenditures
State Budget cuts
Strategic investments

4. What is a reserve?
Recurring Reserves:
Expected annual operating surplus held in reserve, not distributed or allocated for regular spending.
1-time Reserves:
Accumulated balance of unspent reserve funds, including carryover, where possible, of prior year balances.

5. Campus Reserves Summary
All-funds; $ in $1,000s
as of 10/23/2017
Recurring
1-time
FY17-18 Beginning Reserves (7/1/2017)
$1,028.0
$7,927.9
…as % of $13.0m FY17-18 State Tax Support
7.9%
61.2%
Projected , Activity & Plans
Commitments/Costs: Contractual, salary & other operational needs; New/increased program investments; Reorganization/restructuring costs; Renovations
($2,030.4)
($3,456.1)
Savings: Contractual; Reorganization/restructuring savings; Reserve Restoration Efforts
$729.4
$650.7
Revenue Plans/Adjustments: Tuition and Other Revenue Gains or Losses
$1,123.9
($172.1)
Released for StAR
$0.0
Projected Uncommitted Reserve Balance, 7/1/2019
$850.9
$4,950.4
6.6%
38.2%
Campus Target %:
15.0%
20.0%
Campus Target $:
$1,944.4
$2,592.6
Difference v. Target $:
($1,093.5)
$2,357.8
*assumes 2% ATB + 0.5% discretionary salary increases after 7/1/2017 (annualized cost ~$1.1m)
**includes Resident UG tuition $200/yr (except Excelsior students)

8. Apply to any type of expenditure
How and when do we get there?
Savings targets…
Effective July 1, 2018
Must be recurring
Apply to any type of expenditure

9. Spending by Major Function - IPEDS