1. University Budget
Review and Update

2. Today’s Goals General understanding of the university’s budget
Shared understanding about the current fiscal reality
Defined strategies undertaken to address financial challenges
Share a vision for the future

3. Budget Review
FY18 Operating Budget
Revenue Sources
$207,706,722

4. Current Financial Reality
Declining state support
Tuition rate freeze – six consecutive years
Declining enrollment
Depleting cash “savings”

5. “Budget 101” Review budget scenarios: Balanced Operations
Impact of Cash Savings “Burn Down”
Impact of Enrollment Decline
Current Financial Reality

6. Scenario: Balanced Operations
General Fund Operations
Authorized
Spending
Carryover
Carryover
“Budget”
“Savings”
SPENDING
Tuition
Revenue
Tuition
Revenue
Authorized
Spending
State
State
Scenario: Balanced Operations

7. Out Scenario: Burn Down General Fund Operations Fiscal Year 16
Carryover
Carryover
SPENDING
SPENDING
SPENDING
Tuition
Revenue
Tuition
Revenue
Tuition
Revenue
Authorized
Spending
State
State
State
Out
Scenario: Burn Down

8. Scenario: Enrollment Decline
General Fund Operations
Fiscal Year 15
Fiscal Year 16
Fiscal Year 17
Carryover
SPENDING
SPENDING
SPENDING
Carryover
Tuition
Revenue
Tuition
Revenue
Tuition
Revenue
Authorized
Spending
State
State
State
Scenario: Enrollment Decline

9. Overspending Authorized Budget Spending Carryover Tuition Revenue
Enrollment
Shortfall
Tuition
Revenue
Authorized Budget
SPENDING
Tuition
Revenue
State

10. Current Financial Reality
FY18 Projections for General Fund (102)
Structural Deficit
$4,166,810

11. Budget Strategies
Costs
Revenue

12. Cost Reduction Strategies
Align budget with enrollment
Invest in efficiencies
FY19
$2.5 Million Reduction
FY20
$2.0 Million Reduction
Streamline Processes
Electronic Forms
Technology Enhancements

13. Revenue Growth Strategies
Strategic Recruitment
Retention
Marketing
Fundraising
Market-based Programs

14. Foundational Strategies
Strategic Investment Fund
Academic Budget Allocation Model
Non-Academic Budget Allocation Model

15. Vision for the Future Self-Reliance – we define our financial future
Financial Sustainability- sufficient reserves, ability to invest in innovation
Balanced Budget – aligned with enrollment projections

16. Business Affairs
FY19 Reduction Plan

17. FY19 Reduction Plan
$294,701
12%

18. FY19 Reduction Planning Process
Guiding Principles
20% Reduction Exercise
Reduction Decisions
Divisional Staff Retreat

19. FY19 Budget Reduction Plan
Division Reductions

20. FY19 Budget Reduction Plan
Division Investments