1. Faculty Senate Report Wesley Stites Financial Advisory Committee Robert Brady COMM ARSC Michael Thomsen AEAB AFLS Fran Hagstrom RHRC EDHP Lonnie Beard LAW LAW Dan Worrell MGMT WCOB Robert Babcock CHEG ENGR Wesley StitesCHBCARSC VacantJARCH Judy SchwabADMNEx-OFFicio Kathy Van LaningHamADMNEx-OFFicio January 15, 2014

2. Advancement Meeting with Don Pederson, Nov. 13, 2013 Caused by spending increase without budget increase Cumulative Deficit at end of FY12 $3.8 million Reserve Funds from Global Campus used

3. Advancement Budget must increase by ~$2 million to meet expenses Projected two years to accomplish Shortfalls to be met with reserve funds until then

4. Advancement Hires that caused shortfall were approved, but approvers didn’t check to see if funds were available Funds won’t always be there when hiring Assoc. VC for Budget and Financial Planning hired – Tim O’Donnell

5. Advancement No serious spending reduction in Advancement contemplated From 2009 to 2013, spending in Advancement increased by ~10% every year

6. UNRESTRICTED E&G (0102) BUDGET ALLOCATION SUMMARY FY-2009FY-2010FY-2011FY-2012FY-2013FY-2014 Chancellor & Gov't. Relations1,735,8741,760,7051,630,1481,759,2461,443,6201,636,541 Advancement3,990,3094,046,9004,072,9714,557,6984,790,4176,048,700 Finance & Administration12,202,94412,125,21512,234,99313,388,59514,844,22216,871,984 Information Technology7,087,1527,082,3817,064,0137,470,8529,546,38911,428,894 Scholarships/Waivers5,418,146 5,666,9846,013,7486,734,0817,426,307 Debt Service6,321,8316,629,202 8,108,8678,277,783 Contingency Reserves7,144,1909,538,5109,256,4327,030,6086,385,53112,326,658 Facilities Management12,270,04712,143,85812,334,91114,260,91216,108,03717,079,120 Utilities13,369,10714,083,66314,549,67015,622,58116,772,86618,019,652 Academic Affairs9,989,1529,906,2068,488,4379,502,22610,051,75610,478,878 Misc. Scholarships3,829 Summer School 3,472,0373,507,5813,719,3793,772,227 Mullins Library8,054,3228,070,9927,944,1488,423,8498,818,3058,911,340 Diversity 1,075,768 Student Affairs3,867,2003,840,3313,161,2443,131,1283,468,0843,335,591 Arkansas Union151,309 1,254,6691,240,444 Enrollment Services3,853,7953,846,2244,841,1395,395,2666,305,8636,357,246 Undergraduate Scholarships9,669,8169,969,81610,269,81610,569,81611,143,81611,282,645 Honors College1,734,6691,739,2831,692,0341,611,0791,767,4211,868,181 Graduate School7,498,4687,371,7237,740,0042,652,4462,780,6413,430,030 Graduate Fellowships1,771,899 1,815,4921,872,1641,974,5102,019,148 Vice-Provost for Research 6,300,2426,690,9227,050,496 Agriculture7,456,4337,489,9807,852,7127,808,3288,451,3158,636,103 Architecture3,626,1483,605,6723,664,7184,310,0244,592,9354,877,970 Arts & Sciences41,230,50841,236,15842,011,71644,725,77151,976,59955,145,882 Band, Music, I.S. Scholar.722,091 750,293787,808933,518963,415 Business Administration16,998,77617,033,38817,527,63718,581,10120,699,17721,655,280 Undergraduate Scholarships8,985 Education11,969,97012,074,16812,289,78214,280,31418,352,02519,063,265 Engineering17,043,60416,924,57717,434,86518,231,99020,117,97020,787,670 Law (includes Legal Educ)8,736,8418,642,7188,770,0089,521,7339,914,8409,988,508 Law Scholarships832,892 867,275958,059999,2531,064,452 Utility Costs484,000496,894443,100476,735424,371346,715 Debt Service520,587521,162521,987523,057480,942463,998 Continuing Education3,650,9773,643,5843,660,7133,586,9903,765,7742,985,708 Subtotals Academic & Academic Support 150,999,380151,047,961156,260,672167,240,506186,759,141193,990,183 Non-Academic 78,416,49181,684,50082,558,10386,410,93796,667,959111,935,401 Total229,415,871232,732,461238,818,775253,651,443283,427,100305,925,584 Development Spending 7,939,51110,835,24511,858,57613,227,051

7. From FY09 to FY12, Advancement expenditures rose by 66.59%; an average increase of 18.54% every year. In comparison, the overall University budget grew by 10.56% over the same period, only 3.40% a year.

8. It takes money to raise money, but… CASE/NACUBO study “Expenditures in Fund Raising, Alumni Relations, and other Constituent (Public) Relations” 1990 –Mean of 16 cents spent per dollar raised. –Median of 11 cents spent per dollar raised. California State University system 2001- 2003 –Mean of 16 cents spent per dollar raised. –Median of 16 cents spent per dollar raised.

9. Overall Budget – FY 15 Meeting with Don Pederson, Chancellor, Provost, Senate Executive Committee Dec. 3, 2013 Minimal growth in student body this year No appropriation increase this year Tuition increase is only means for funding increase Budget increase of $13.1 to 15.4 million results in FY15 - FY14 increase was $25.5

12. If this projection is correct, the total University budget will grow overall by about 39% in FY15 from the FY09 basis, an annualized rate of 6.8%.

13. Proposed major increases in personnel spending 9 new TT faculty lines across entire University, $992K 3 new NTT faculty lines, $100K (2 are one-time money next FY) 2% pool for raises; perhaps 2.5% faculty, $3.5M Expansion of UAPD, $358K

14. Other proposed major spending increases Utilities $1.1M Development $500K Garvan Gardens $300K Start up $750K Library $928K Intersession $474K Univ Perspectives, Office of Retention, Pathway to Graduation $832K FAMA non-utility $717K ARSC prior growth $750K