1. University Budget Update Faculty Senate Briefing May 2012 Roy W. Koch Provost and Vice President for Academic Affairs 1

2. Starting point Recall “Base case (or do nothing) scenario” – Purpose: starting point for building budget plans – Based only on what was known 2011-13 salary and benefit cost increases 2011-12 tuition increases 2011-12 enrollment – Required 4% reduction to close budget shortfall by 2015

3. Major actions to avoid base case scenario Tuition increase SCH increase Expenditure reductions 3

4. 3.8% Undergraduate resident 1.1% Undergraduate non resident 0.9% Graduate resident 1.0% Graduate nonresident Differential Tuition Increases: MCECS, FPA, SBA, Honors (new) Reduced differential tuition request for FPA and Honors for undergraduate resident such that no undergrad resident would see 7% or higher tuition increase Tuition Update 4 NB: Diff Tuit

5. 2-3% overall increase in SCH growth for 2012-13: UG Res +3% UG Non-res +6% Grad Res -2% Grad Non-res +2% Assume +2% for fundable (resident) SCH NB: Uncertainty of SCH projections Projected 2012-13 Enrollment 5

6. Current status Tuition increases have been proposed to the State Board of Higher Education Enrollment growth is uncertain (last year we had a growth in headcount but were flat in SCH) and may relate to tuition increase Tuition increase and enrollment growth mitigate the need for 4% expenditure reduction but still require a reduction UBT has made a proposal for a smaller reduction that has been reviewed by the Executive Committee and is currently being reviewed the Senate Budget Committee

7. Next steps Adjust the budget proposal based on input from the Executive Committee and Senate Budget Committee Revision of proposed reductions by the Deans Presentation of final budget proposal to campus at an all-campus forum (date TBA) Presidential forum (June 5) to discuss the year’s accomplishments