1. FY13 Student Tuition Consultation SFMC – March 22, 2012 1

2. Up Front Summary State and University have just finished addressing the largest budget deficits in history State continues trend of reduced investment in Higher Education Tuition Increase of 3% for FY13 2

3. WSU Total Budget Composition – FY12 General Fund $81M, 65% – (Tuition $56M, State Appropriation $25M) Residence Halls $20M, 15% Laptop Program $7M, 6% Auxiliary Enterprises $5.5M, 5% Student Fees $4.5M, 4% Student Union $2M, 2% Miscellaneous $3M, 2% Grants and Contracts $2M, 2% TOTAL $125 Million Innovation Fund = $400,000 or about ½ of 1% of the Total University Budget 3

4. General Fund Budget by Nature – FY12 Employee Salaries 60% Fringe Benefits 18% Student Employment 2% Equipment 2% Operating (Supplies & Expenses) 14% Repair and Replacement 1% Fuel and Utilities 2% Debt Service 1% 80% of the General Fund Budget is Invested in People 4

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6. WSU Budget Principles (Adopted December 2008) Winona State University will be guided by its mission statement and look at the good of the whole. Budget decisions will be based on a consistent set of data and communication will be transparent and inclusive. Winona State University will: 1. Provide classes that allow students to complete their educational programs in a timely manner 2. Maintain its commitment to our faculty and staff As we strive to accomplish the above during these hard times, we will: Maintain a physical environment that meets the health and safety needs of the University community Provide services and activities that support student success Remain committed to high quality affordable education Work to increase the efficiency and effectiveness of our operations Create and enhance revenue stream Not exempt any unit of the university from making needed sacrifices 6

7. Budget Strategies Implemented in FY10-11-12 Retirement Incentives Reduce Administration Reduce faculty/staff positions 7% Operating Reduction Educational Lean and Restructuring Maintain Enrollment Tuition Increase 7 Revenue Fund Cost Shifts Review Programmatic Scans Summer Session Restructure Reduce Faculty Reassigned Time Energy Savings New Graduate and OCED Programming Non Traditional Funding Sources

8. FY2012/13 Budget Planning Factors State of Minnesota February 2012 state budget forecast – FY12-13 surplus projected at $323 million Surplus will be used to repay the K-12 funding shift and build reserves at the State level Good News – No further unallotment or appropriation reduction for FY12 or FY13 8

9. FY2013 Budget Planning Factors - WSU FY13 Budget Scenario Calculator on Fiscal Affairs / Budget ToolKit page http://www.winona.edu/adminaffairs/budget_101.asp http://www.winona.edu/adminaffairs/budget_101.asp Increases in employee wages and health insurance continue to be the largest cost drivers at the University Enrollment growth from FY11 to FY12 has helped the University budget 9

10. Tuition Costs at Selected Institutions – FY12 10

11. History – Tuition and Budget Reductions Tuition Increases FY03 – 12% FY04 – 15% FY05 – 15% FY06 – 7% FY07 – 9% FY08 – 4% FY09 – 5% FY10 – 5% (with assistance from Federal stimulus of 2%) FY11 – 5% (with assistance from Federal stimulus of 2%) FY12 – 5% Budget Reductions FY02 - $1.0M FY04 - $1.2M FY10 - $1.8M FY12 - $2.5M 11

12. FY2013 WSU Tuition Proposal Tuition increase of 3% – Annual increase to a full time, MN resident student will be $200.00 12 MN Undergraduate FY12 Board Approved FY13 Amount of Increase FY13 (Proposed) Per Credit$220.40$6.60$227.00 Banded (Semester) $3,333.00$100.00$3,433.00 Banded (Annual)$6,666.00$200.00$6,866.00

13. Resources Most current information on budget at President’s page: www.winona.edu/president/index.asp Fiscal Affairs page: www.winona.edu/adminaffairs/budget_101 MnSCU Finance page: www.finance.mnscu.edu 13

14. Questions 14