1. January 15, 2009 Kyle R. Carter Provost and Senior Vice Chancellor

2.  Budget 101  The Budget Shortfall  Actions to Date  WCU’s Unique Problem  Corrective Actions  Questions and Discussion

3.  The University’s E&G (Education and General) budget ◦ Funds that pay for core personnel and operations related to the university’s mission ◦ Sources  State appropriations  Tuition  Capital budget ◦ Funds specifically earmarked for construction  Auxiliary and fee budgets ◦ Self-supporting budgets that exist on revenues generated ◦ Outside the E&G budget  Examples: Book Store, Housing, Athletics, University Center operations

4. ComponentPercentSource State Appropriation80%Legislature: Enrollment (SCH) Tuition20%Students

5.  See Handout 1: SCH – Enrollment Change Funding Model

6.  State revenue shortfall expected to be 10% or more of 2008-09 budget  Reductions to E & G budget ◦ Reversion for 2008-09 ◦ Anticipated permanent reductions for next year

7. Budget Reductions: Essential Points  Applies only to state appropriation  WCU’s state appropriation is approximately $95.5 million  Every 1% equates to approximately $955,000

8.  What is a reversion? ◦ State sends a lesser amount than promised ◦ One-time cut  Effect on 2008-09 WCU’s E&G budget ◦ 5% less than expected ◦ Institution $4.8 million ◦ Provost Division $3.5 million  Handled centrally—So far  Held back 20 new faculty positions  Academic support dollars  Reserve funds

9. Scenarios Reductions in Millions of Dollars 3%5%7%8% Institution$2.9$4.8$6.7$7.6 Provost$2.1$3.5$4.9$5.6

10.  Identified criteria to guide decisions  Brainstorming session to identify possible cost savings strategies  All Deans and Directors (and VCs from other areas) have prepared 8% scenarios that are under review  See Handout 2

11.  Institutional Criteria ◦ Strategic initiatives including UNC-T  QEP  Millennial Campus  Quality students ◦ Infrastructure ◦ Retention and graduation  Provost Division ◦ Production of distinguished graduates ◦ Quality relationships that support core mission ◦ Core programs, services and talent ◦ Long-term productivity trumps short-term gains

12. SCH production not aligned with budget

13. Understanding the Problem  New faculty positions are earned separately ◦ SCH through distance education ◦ SCH through resident instruction

16.  Over budgeted by 25 to 30 faculty lines  Over budgeted in support dollars that accompany faculty lines in areas like ◦ Academics ◦ Library ◦ IT ◦ Finance ◦ Development

17. Student/Faculty Ratio WCU13 to 1 ASU17 to 1 UNC-W17 to 1

18.  Number of faculty  Class size  Size of curriculum  Class scheduling  Concentration in major  Faculty load

19. WCU’s Average Instructional Salary = $73,983 InstitutionAmount Above WCU Pembroke$1,100 App. State$1,540 UNC-A$3,308 UNC-W$3,613 Question: What would happen to future budgets if WCU increased its AIS?

20.  Reduce current instructional FTE (582.25) by at least 30 FTE  Increase S/F ratio to 17 to 1  Increase average instructional salary Cautions  Move toward 3/3 faculty load  Focus on quality

21. FALL CLASS SCHEDULE is due January 29 th See Handout 3: Strategies for Fall Semester 2009

22.  Size of the major  Size and flexibility of Liberal Studies See Handout 4: Actions

23.  More efficient curriculum ◦ Better retention ◦ Better graduation rates  Higher future levels of funding  Increased faculty salaries  More appropriate faculty loads  Increased quality in academic programs