1. Budget Update for Administrative Leadership Team February 16, 2018
Stephen R. Turner
Vice Chancellor
Finance and Administration

2. Budget Reduction Plan for Current Fiscal Year
Recurring
Percent of
Revenue Shortfall
Funding
Division
Base
$3.0 Million
Chancellor
$2,984,330
2.86%
$85,945
VC Advancement
$2,737,045
2.63%
$78,824
VC Enrollment Management and Student Affairs
$9,849,400
9.46%
$283,652
VC Finance and Administration
$16,789,751
16.12%
$483,526
VC Information Services
$9,090,988
8.73%
$261,810
VC Academic Affairs
$60,042,359
57.64%
$1,729,154
Athletics
$2,676,774
2.57%
$77,088
Total General Fund Base
$104,170,647
100.00%
$3,000,000

3. Current Status of Budget Reductions
Division
Salary
Benefits
S&E
Total
Chancellor
$31,200
$15,034 $0
$46,234
VC Institutional Advancement
$23,750
$9,694
$11,936
$45,380
VC Enrollment Mgmt & Student Affairs
$181,560
$76,481
$258,041
VC Finance & Administration
$124,268
$38,001
$208,381
$370,650
VC Academic Affairs
$1,106,559
$139,736
$13,598
$1,259,893
VC Information Services
$142,720
$41,101
$183,821
Athletics
$77,088
Totals
$1,610,057
$243,565
$387,484
$2,241,106
Eliminated 13 vacant positions
Reduction in force of 7 positions
Excludes the Early Retirement Incentive Plan (ERIP) for faculty
ERIP deadline is March 19th
To date, 6 faculty members have submitted applications

4. Good News!…Spring 18 Enrollment is Better Than Expected
Tuition Revenue Projections
October 2017
(based on Fall census)
February 2018
(after Spring census)
Enrollment Decline
4.5%
3.9%
Recurring Deficit
$3.0M
$2.5M

5. Revenues Expenses FY2019 Budget Assumptions
State Appropriation (Operating) increase 1.6%
Tuition rate increase of 1.4%
Banded tuition: revenue gain
Domestic non-resident tuition rate: revenue loss
Enrollment decline of 3%
Expenses
Proposed merit salary plan of 2% (pending BOT approval)
Fringe benefit increases (medical)
S&E operational costs increases

6. Risk Analysis for FY 19 Budget
Projected revenue increase due to banded tuition
Enrollment
Rate of increase among non-resident domestic population (more Illinois students!)
Accelerated budget planning time line

7. My Recommendations for Next Year
As long as our planning projections are close, no cuts should be needed
Units should have a contingency plan in case reductions do become necessary
Do everything you can to help improve retention and increase enrollment!!!

8. Comments or Questions?