1. Oregon State University 2013-14 Budget Overview Faculty Senate, December 12, 2013

2. The Oregon State University Our mission is to serve the people of the State of Oregon, and we have a presence in every part of the State— that fact influences our financial planning, structures, and practices. a a

3. How large is the whole institution? Fiscal Year 2014 (in thousands) Budgeted Operations Education and General Funds:418,193 Statewide Public Services:72,899 Auxiliary Enterprises:141,435 Other Operations:46,299 Research Funds:198,237 Gift Funds:65,034 Cascades Campus:9,656 TOTAL:951,753 Auxiliaries: provide services to students, faculty as individuals (Athletics, Housing, Student Health) Other Operations: Service Centers (self-support providing services to OSU academic community, Telecom for example); Designated Operations (self-support with >80% of revenue from external sources, testing services for example)

4. In addition, major capital projects: FY2014 Major Capital Projects ($ in thousands): Austin Hall56,000 Classroom Building65,000 Student Experience Center43,600 Johnson Hall (construction 2015)40,000 Cultural Centers* Asian and Pacific Cultural Center2,400 Lonnie B. Harris Black Cultural Center2,400 Centro Cultural César Chávez2,400 Memorial Union Renovation9,178 New Student Residence29,000 Strand Hall Renovation24,870 Cascades Campus Expansion24,000 TOTAL:292,848 *the new Native American Cultural Center is completed and open

5. Net revenue sources for the FY2014 E&G Budget ($418.2M)

6. 2012-2013 E&G Expenditures by type

7. What is the relative contribution of the State? The State of Oregon remains an important partner to OSU, but the relative contribution of the State varies significantly across the university FY14 State Funding of Various OSU Operations: Operation: Budgeted Operations: Estimated State or State Agency Funding:% of Category: E&G Corvallis:418,19384,22620.1% E&G Cascades Campus:9,6563,88140.2% Statewide Public Services:72,89949,56768.0% Athletics:45,2694401.0% Grants, contracts:198,2377,0003.5% Other:207,49900.0% TOTAL:951,753145,11415.2% *estimated from FY13 research and sponsored activity awards from the State Total Annual Debt ServicePaid by State:% of Category Debt Service:40,99811,83128.9%

8. The role of tuition in funding the institution has shifted dramatically : In this year, the budget is about $14,700 per student headcount; in 2003-2004 it was $11,100 per headcount in 2003 dollars, or $14,150 in 2014 dollars.

9. Corvallis Campus FY12, FY13, FY14 Initial E&G Budgets (in 1000s)

10. Institutional Management Distribution Institutional Management Fund Allocations:FY13FY14 Settle up to units (ICR, remissions, etc) 11,627,008 11,244,748 Raises, faculty hires, setup: 11,840,828 8,553,871 Access & Enrollment Management funding: 3,000,000 3,780,000 Foundation, Capital Campaign 3,535,000 5,035,000 Facilities, IT, Research Investments 5,154,032 1,250,000 TRF Funding 7,527,021 Payments outside OSU* 11,326,029 14,882,252 Budget Reserve - 1,383,077 Due from Other Funds (5,132,143) (6,532,143) Internal Short-Term Loan (14,615,900) - Totals: 34,261,875 47,123,826 *Debt service, payments to OUS, INTO, City, other Orange shows pools with major academic components

11. Fund Balance Distribution, Closing FY13

12. Key FY14 E&G Budget Changes Some major budget changes in FY14 $ (in M) Salary increases:9.52 New faculty and staff hires:3.43 Access and enrollment management:0.78 OSUF support to finish $1B campaign1.50 Facilities, moves and minor renovation1.25 Change in F&A recovery:-3.00 Growth in Graduate Remissions:2.70 INTO revenue to Colleges:1.70 Provost Faculty Match Program:1.40 SWPS support:2.00 Ecampus revenue:12.30

13. Outlook and Key Challenges Enrollment and retention: by far the most important factors in financial health and long-term investment Governance changes—some known, some still evolving; biggest changes on the management, financial, and legal fronts Research dollars and F&A recovery—challenges for competitive grants and formula funded programs Advancing the four-year campus in Bend—a major part of our role in the State’s 40:40:20 goal and our visibility in the State Managing the phase-out of the tuition plateau and the consequent impact on our students Finding strategies to make the infrastructure investments we need while balancing affordability and financial viability Planning for the Statewide Public Services as State and Federal funding environments change

15. Following slides additional for questions