1. Florida International University G-51 April 9, 2010

2. STATE REVENUES 2 No additional budget reductions expected in FY 10/11 outside of the approved 3 yr budget reductions submitted in prior years’ plans 2% Reduction Planned for FY 10/11 2% Contingency

3. FIU ASSUMPTION FOR FY 10-11 STATE APPROPRIATIONS 3

4. 4 Tuition Forecast Enrollment FTE 24,412 FTE 24,510 FTE 25,201 FTE 25,425 FTE 26,534 Preliminary Budget Base Forecast FTE – Annual Count based on Fiscal Year (Fall, Spring, Summer) College of Medicine based on 2009-10 projections submitted to the BOG Level mix projection is based on FY 2009-10 Forecast (Fall, Spring, Summer) BudgetActuals

5. BUDGET ASSUMPTIONS Tuition Fees Undergraduate: 8% Increase Graduate: 10% Increase Law/COM: 15% Increase Base Tuition Differential Tuition Applies to Undergraduate tuition only Rate Applies to new students as of Fall 2007 except students with prepaid contracts Increase of 7% bringing us to a maximum of 15% increase per year including base tuition. 30% directed towards need based Financial Aid 70% to be used towards undergraduate education expenses 5 Pending BOT/Legislature Approval

6. BUDGET ASSUMPTIONS Other Fees Health Fee Under consideration - Pending Committee Discussion 6 Parking Fee Under consideration – Proposed 5% increase - Pending Approval Activity & Service Fee Remains unchanged at $11.60 / Credit Hour Athletics Fee Remains unchanged at $14.51 / Credit Hour Aux Management Fee Increases to 6.5% from 5.5% except for Health and A&S which remain at 5% Technology Fee Remains unchanged at 5% of Tuition

7. Control Totals to Colleges/Schools E&G Budget control totals will be based on FY09-10 Final Budget adjusted for: –Recurring and nonrecurring legislative line items –Cuts for FY10-11, as approved in the 3-year Budget Reduction Plans, will be communicated during the budget process by EABMs –Adjustments in critical investments and unfunded operations/obligations Salaries No University wide recurring salary adjustments assumed –Departments should budget for individual salary actions Funding for new E&G positions approved based on Critical Investments & unfunded operations/obligations University will continue to use 50% salary float on vacant positions to mitigate impact BUDGET ASSUMPTIONS Expenses 7

8. 8 PERSONNEL Pooled Fringe Benefit Rate - Rationale Provides a simpler process for managing budgets No change to employee benefit plans or enrollment Actual benefits are difficult to determine and manage; Seven types (Health, Life, Retirement, Social Security, Medicare, Workers Compensation, Unemployment Compensation) with multiple variable rates Considered to be a best practice of leading research institutions Reduces questions on specific benefits allowed under grant funding Provides a more equitable method for paying out terminal leave Last department of record is not burdened with terminal leave payout Provides an opportunity to recover employee benefit costs currently funded and managed at the institution level, for example, Unemployment Insurance and Workers Compensation

9. 9 PERSONNEL Pooled Fringe Benefit Rate - Overview FIU will implement a University-Wide Pooled Fringe Benefit rate effective the first full payroll after July 1, 2010 and it will be applicable to all departments and projects The hybrid rate currently in place for Sponsored Research projects will be replaced by and expanded to the University-Wide Pooled Fringe Benefit Rate The Rate is calculated by developing an employee group rate, a pool of employee fringe benefit costs and dividing by the salaries and wages base for that group The rate is then applied to the employee’s salary and wage to determine the employee’s benefit cost Pooled Fringe Benefit Rate = Total Employer Paid Fringe Benefits for Employee Group Total Salaries and Wages Employee Benefits =Pooled Fringe Benefit Rate x Employee Salary

10. 10 PERSONNEL Pooled Fringe Benefit Rate - Proposed Rates Subject to final review and approval by the Department of Health and Human Services (external) Employee GroupPooled Fringe Benefit Rate Faculty / Administrative29.39% Staff42.28% Other OPS and Temporary Faculty2.09% Student OPS0.12% Cell-Phone & Miscellaneous Payroll Allowances and Other Earnings 7.65%

11. 11 PERSONNEL Pooled Fringe Benefit Rate - Process Rates are calculated annually by the Office of the Controller, Human Resources, Office of Sponsored Research and Office of Financial Planning in advance of the coming fiscal year Based on actual costs from previous fiscal year and includes under and over recovery from that year The rate is approved by the Department of Health and Human Services for use with grants and contracts Approved rates are built into the budget and are applied from the beginning of the coming fiscal year Units will be charged benefits at the approved pooled fringe benefit rate in account 771950 Actual benefits (including payouts, workers compensation and unemployment compensation) will be charged to a central fringe benefit pool department Employees will be paid salary and fringe benefits under normal payroll procedures. Actual benefits will be recorded in the detailed payroll ledger.

12. STIMULUS FUNDS 12 Funding expected to be received from State Fiscal Stabilization Fund (SFSF): University: $13.8M College of Medicine: $0.9M Requirements: Spend funds quickly to save and create jobs Use the funds for education and general expenditures Transparency, reporting, and accountability of one-time funds to be expensed by June 30, 2011 Restrictions: Only for modernization, renovation, or repair of university education facilities that are primarily used for instruction, research, or student housing Prohibited: modernization, renovation, or repair of: Stadiums / Facilities primarily used for athletics where admission is charged to the public Facilities used for religious activities For any project funded through the SFSF, the university will comply with, but not limited to: Section 1605 – Requiring the use of American iron, steel, and manufactured goods) Section 1606 – Requiring compliance with federal prevailing wage requirements ) FIU Process: SFSF Request Form (available on the OFP & Auxiliary Enterprise Development web page) Prioritized by alignment to University’s strategic objectives Requests were submitted to OFP by March 20, 2010