2.  Major Budget Policy Issues and Outlook o Tuition and Financial Aid o Endowed, Contract, Professional o Endowment Payout o Salary Improvement Plan  Elimination of Structural Deficit o Reduce Administrative Costs (Streamlining Program) o No new costs without funding or identified income sources  Budget Model Change

3. Budgeted Revenues for FY 2012

4. Budgeted Operating Expenditures for FY 2012

5. Five Year Total Capital Plan - $1.649B FY 2012 Expenditures$ 373.9 M Projects Approved and Underway 977.2 M Major Projects/ New Construction 157.6 M New York State 66.0 M Maintenance, Infrastructure, Unit 397.1 M Weill Cornell Medical Projects 51.0 M This Five Year Plan represents a 11% reduction in activity from FY 2011 plan. 24% reduction in activity from FY 2010 plan 37% reduction in activity from FY 2009 plan

7. OUTLOOK Quality & Access Competitive Salaries & Benefits Program Enrichment Undergraduate Tuition and Aid State Support Compliance Facilities/Utilities Increases in Security Supplies & Materials

8. University Comparison Group2011-12 Change % Columbia $ 45,2904.6% Dartmouth 42,9966.3% Chicago 42,7834.1% Duke 42,4104.3% Brown 42,2303.5% U. Pennsylvania 42,0982.8% Northwestern 41,9834.4% Cornell (Endowed & Nonresident) 41,5414.7% MIT 40,7323.9% Stanford 40,5692.6% Yale 40,5005.7% Harvard 39,5813.7% Princeton 37,8651.2% U. Virginia (nonresident) 36,578 8.9% UC-Berkeley (nonresident) 35,7135.6% IVY Average 41,5474.0%

9. Graduate Research - No Change Graduate School - Professional Degree 4.5% Market Based Changes set by Individual Colleges 3% Graduate Stipend Increase was approved with the campus Salary Improvement Program

10. Graduate School Tuition History

11.  Goal  Goal: Steady, predictable payout increase for operating budgets smoothed for budget and planning purposes with sensitivity to changes in market value.

12. The Budget Model Change Transparent, simple, data informed, and advance academic excellence Manage the cost pressures of the current environment Improve service, quality and reduce costs Improving processes to respond to: Deep cuts in state appropriations Decreasing parental and student ability to pay tuition bills Severely constrained revenues Declines in fundraising, investment income, and research grants Increasing operational costs, deferred maintenance, and other capital

13. Policy Building Committee Team Members VP P&B, Elmira Mangum Senior Vice Provost, Research Senior Vice Provost, Land Grant Vice Provost, Undergrad. Ed. Budget Model Steering Advisors Leadership Vice Provost, Dean of Graduate School Vice President, Facilities University Faculty Senate - FPC  Set direction  Provide guidance  Test alternatives  Make decisions  Advise and represent stakeholders  Champion redesign efforts  Address policy issues  Propose alternatives  Recommend specific solutions, policies and procedures  Determine budget impact of recommendations Provost, Kent Fuchs Deans (A&S, CALS, CIS, ENG. & DVM)

14. Next Steps & Implementation  Undergraduate Tuition and Financial Aid Pooled and distributed  Space Use – Space Study launched, guidelines developed  Cost Allocation Methodology  University Support Pool – to fund central costs  Facilities and Administrative Reimbursements – under development  New York State Appropriation – under development  Graduate Tuition – no change Cornell Abroad – moved to GP funding & CAM Endowed Professorships – centrally held – moved to Dean’s office