Budget Planning Council Meeting Agenda August 30, :00am 1:00 pm Baker Center ~ Multicultural Center Room 219

Transcription

1 Budget Planning Council Meeting Agenda August 30, :00am 1:00 pm Baker Center ~ Multicultural Center Room 219 Meeting Objectives Provide members with an overview of the: o Role of BPC in the Ohio University budget process o BPC Charge o Responsibilities of BPC members Review Budget Planning Assumptions utilized in the Fall FY20 Budget Submissions 1. Welcome & Introductions 2. Budget Planning Council (PPT Presentation) 3. Fall FY20 Central Planning Assumptions 4. Enrollment Update for Fall 2018 and Future Planning Assumptions C. Cornell 5. Future Meetings: September 6, 2018 Orientation:

2 FY19 Budget Planning Council August 30,

3 Agenda BPC Charge BPC Membership Duties & Responsibilities Macro Budget Topics Role of Other Committees Budget Stakeholders Strategic Priorities and Supporting Initiatives Challenges Resource: FY19 Budget Book 2

4 Budget Planning Council Charge The Budget Planning Council is an advisory body that is a key component of the established governance mechanisms of Ohio University. Co-chaired by the Executive Vice President and Provost (EVPP) and the Vice President for Finance and Administration Guided by the priorities of the President s Strategic Pathways Advisory role to the President regarding current and multi-year budget issues, long-term financial policies and funding priorities Members serve as representatives of the entire University community and communicate to and provide feedback from their respective constituent groups on institutional budget policy and financial planning issues that impact the long-term health of the institution. The co-chairs communicate the Budget Planning Council's advisory recommendations to the president. 3

5 Budget Planning Council Representation 4

6 BPC Duties & Responsibilities Ensuring overall financial policies and budgetary guidelines are consistent with and promote institutional priorities. Recommending to the President the general assumptions and principles leading to the construction of the University budget. Reviewing and recommending approval of tuition, fee, and internal rate requests. Consider higher education enrollment, policies, and financial trends as part of the budget process. Receiving and reviewing the Student Fee Committee's recommendation(s), prior to submission to the Board of Trustees. 5

7 Macro Budget Topics Enrollments and Financial Aid Initiatives Tuition Rates State Subsidy Other Revenue Sources: Room & Board Compensation Capital Improvement Plan Strategic Investments 6

8 Roles of Other Committees Student Fee Committee Benefits Advisory Council Student Services Committee Strategic Enrollment Executive Committee (SEEC) *New* 7

9 Budget Stakeholders Board of Trustees Tuition and Fee Rate Approvals Budget Approval Academic Leadership (Colleges) Ownership of Revenues under OHIO Budget Model Investing and reallocating to meet priorities Academic Support Leadership Investment requests subject to financial reviews and college input Faculty Students 8

10 Strategic Priorities and Supporting Initiatives Student Affordability & Success Employee Compensation Facility Investment & Deferred Maintenance Program Quality & Revenue Growth Signature Financial Aid Faculty Comp Plan Deferred Maintenance Plan Innovation Strategy Endowed Scholarships Staff Equity Plan Utility Master Plan OHIO for Ohio Counseling & Psychological Services OHIO Honors Program Raise Pool Classroom Improvements IT Strategy & Investment Capital Plan Online Learning International Student Recruitment Global Strategy Advancement Strategy 9

11 FY20 Challenges Student Affordability Environment of Constrained Revenue Enrollments: FY19 Budget Assumption: +99 Athens UG Freshman Current Projection, Fall 2018 : -70 Athens UG Freshman Declining Ohio High School Population FY19 was the 4 th year of a freeze on Undergraduate Tuition & the 2 nd year of a freeze on all other fees State Operating Budget for FY20-21 will establish state support and tuition caps for the upcoming biennium Fall Assumption on Tuition and State Support - 0% Competitive Employee Compensation Deferred Maintenance 10

12 Resource: FY 19 Budget Book Summary of FY19 budget, investments, decisions Useful resource for definitions, detail, assumptions, etc Budget Book: Online 11

13 Ohio University Fall FY20 Budget Planning Assumptions NOTE: Figures represent change from the prior year planning assumption (unless otherwise noted) 8/30/2018 Change from Spring BPC Discussion Fall Planning Topic Item FY19 Planning Assumption FINAL FY20 Initial Planning Assumption FALL FY20 Planning Assumption Guarantee Student Rates 1 Cap Calculation: (Budget Bill (0%) + 5 year CPI (1.3%)) Cap Calculation: (Budget Bill (2%) + 5 year CPI (1.3%)) Cap Calculation: (Budget Bill (0%) + 5 year CPI (1.3%)) 2 Tuition Increase: 1.3% Tuition Increase: 3.3% Tuition Increase: 1.3% 3 Room Increase: 3.5% Room Increase: 3.5% Room Increase: 3.5% 4 Board Increase: 2.0% Board Increase: 2.0% Board Increase: 2.0% 9 Freshman Enrollment Total : 3,971 Freshman Enrollment Total : 4,144 Freshman Enrollment Total : UG Enrollment 10 Transfers Enrollment Total: 461 Transfers Enrollment Total: 461 Transfers Enrollment Total: 11 Retention Rate: 3 year avg. Retention Rate: 3 year avg. Retention Rate: 3 year avg. 12 Graduation Rate: 3 year avg. Graduation Rate: 3 year avg. Graduation Rate: 3 year avg. Central Student Financial Aid 13 SOR Funding for Enrollment Volatility: $1.3M SOR Funding for Enrollment Volatility: $1.3M SOR Funding for Enrollment Volatility: $1.3M 14 Student Financial Aid: $0.9M + $1.6M for Strategic Leveraging Model Student Financial Aid: +$1.3M 1st cohort Scholarship Leveraging Model, ONLY Student Financial Aid: +$1.3M 1st cohort Scholarship Leveraging Model, ONLY 15 ICA: Correlates to Tuition, Room & Board ICA: Correlates to Tuition, Room & Board ICA: Correlates to Tuition, Room & Board 17 Auxiliary Support: $1.5M ($5.5M total) Auxiliary Support: $0.5M ($6.0M total) Auxiliary Support: $0.5M ($6.0M total) Endowment Distributions 19 Market value growth per Foundation investment return forecast Market value growth per Foundation investment return forecast Market value growth per Foundation investment return forecast SSI Healthcare 20 State Appropriation Growth: 0% State Appropriation Growth: 0% State Appropriation Growth: 0% 21 OHIO Share: 10.6% OHIO Share: 10.6% OHIO Share: 10.6% 24 Cost Growth: 7% Cost Growth: 7% Cost Growth: 7% 25 University Contribution Growth: 2.5% ($1.25M) University Contribution Growth: 5.0% ($2.5M) University Contribution Growth: 2.5% ($1.25M) 26 Raise Pool: 1.5% Raise Pool: 2.0% Raise Pool: Raise Pool 27 Faculty Compensation Plan (FCI): 0% Faculty Compensation Plan (FCI): 1.0% Faculty Compensation Plan (FCI): 1.0% 28 Staff Compensation Initiative (SCI): 0% Staff Compensation Initiative (SCI): 1.0% Staff Compensation Initiative (SCI): 1.0% 29 Compliance: $500K Compliance: $500K Compliance: $500K Central Costs 30 Utilities: $0.2M Utilities: $0.6M Utilities: $0.6M 31 Plant Operation & Maintenance: $0.2M Plant Operation & Maintenance: $0.2M Plant Operation & Maintenance: $0.2M 32 Base Admin Control Totals: $2.3M Base Admin Control Totals: $2.0M Base Admin Control Totals: $2.0M Capital Cost Model 33 Deferred Maintenance: $1.3M Deferred Maintenance: $1.3M Deferred Maintenance: $1.3M 34 Capital Plan Debt: $0.8M Capital Plan Debt: $0.15M Capital Plan Debt: $0.0 M 35 Net Change in Central Debt Service: $0.5M Net Change in Central Debt Service: $1.45M Net Change in Central Debt Service: $1.3M

14 1 Enrollment Update BPC 8/30/2018 Craig Cornell, SVP, Strategic Enrollment Management

15 Fall Enrollment Projections Preliminary Overview - Undergraduate Enrollments 2 Many enrollment groups have significant changes throughout the month of August leading to the opening of Fall term. For example, there are still two more orientation days in late August that will affect final numbers for freshman and transfers alone. In addition, our online program students enroll all the way until the start of the term. Therefore, we will populate these next two slides to be as accurate as possible for the meeting: Note: All numbers on the next 2 slides represent August 17, 2018 to August 17, 2017 comparisons: New Students: Freshmen Currently at 3,955, down by 45 students (-1.1%). With late Bobcat Student Orientation date registrations, expect this number to be down by fall start by students from last year s class of 4,405. Transfer Students Currently at 358 students, down by 23 students. With late Bobcat Student Orientation date registrations, expect this number to be flat with last year. Returning Undergrad: Currently at 12,443, down 546 students (-4.4%). Undergrad Online: Currently at 4,747, down 394 students (-7.6%). Retention: Currently at 81.1% which is up by 1.1%, which would account for 45 additional students.

16 Fall Enrollment Projections Preliminary Overview Graduate Students: Athens: Currently at 1,284 students, down 247 students (-16%). We generally pick up an additional 1,000+ students from this time of the year to final fall numbers. Other Graduate: o Graduate online is currently at 2,180, up by 55 students (2.5%). We anticipate this number to climb a bit further due to the nature of online enrollments as we generally grow more than 500 students for fall starts. o Dublin is currently at 83, down 8 students (-9.6%) o Outreach Programs are currently at 223, down 75 (-25%) RHE: RHE enrollments are currently at 5,500 students, down 432 (-7.3%) Medical: HCOM enrollments are currently at 971 students, up 58 (6.4%) Total All University Enrollments: Therefore, all in, we are currently 31,699, down 1,657 (-4.9%) compared to this point in time last year. Historically, we add approximately 3,000 (10%) more students from this point to final enrollments by term end. 3

17 FY19 Revenue Driver Enrollments Enrollment - Athens Athens - Undergraduate Incoming Cohort (Fall) August 2018 FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Planning Assumption FY19 Budget FY19 Forecast Resident 3,788 3,756 3,774 3,530 3,629 3,425 3,425 Non-resident Total New Freshmen 4,377 4,423 4,309 4,045 4,144 3,971 3,975 Budget Book Section 4 Athens UG Freshman: FY19 vs FY18 Change = Resident Non-resident Total Transfers Total Incoming Cohort 4,922 4,986 4,854 4,506 4,605 4,432 4,436 Athens - Cohort Duplicated Headcount (Fall; excluding ecampus) August 2018 FY16 Actual FY17 Actual FY18 Actual FY19 Planning Assumption FY19 Budget FY19 Forecast Continuing Students 12,987 9,009 5,344 2,764 2,764 2,764 OHIO Guarantee ,978 4,304 3,986 3,195 3,195 3,195 OHIO Guarantee ,896 4,118 3,512 3,512 3,512 OHIO Guarantee ,478 3,597 3,597 3,597 OHIO Guarantee ,605 4,432 4,436 Total 17,965 18,209 17,926 17,673 17,500 17,504 Athens - Undergraduate Resident/Non-Resident Headcount (Fall; excluding ecampus) FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Planning Assumption FY19 Budget August 2018 FY19 Forecast Resident 14,921 15,157 15,627 15,527 15,329 15,125 15,125 Non-resident 2,739 2,808 2,582 2,398 2,344 2,375 2,379 Total 17,660 17,965 18,209 17,925 17,673 17,500 17,504 % Non-resident 15.5% 15.6% 14.2% 13.4% 13.3% 13.6% 13.6%

18 FY19 Revenue Driver Enrollments Undergraduate FTE FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Planning Assumption FY19 Budget Regional Campuses Chillicothe 1,476 1,392 1,369 1,281 1,243 1,243 Eastern Lancaster 1,571 1,503 1,390 1,293 1,254 1,254 Southern 1,296 1,237 1,208 1,245 1,208 1,208 August 2018 Zanesville 1,243 1,224 1,107 1, Total Regional Campuses 6,173 5,962 5,650 5,389 5,227 5,227 4,960 ecampus - Resident/Non-Resident Duplicated FTE (Fall; Athens and Regionals Undergraduate) August 18 FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Budget FY19 Proj Resident 2,224 2,167 2,197 1,986 2,005 1,853 Non-resident Total 2,931 2,979 3,060 2,926 2,954 2,730 % Non-resident 24.1% 27.3% 28.2% 32.1% 32.1% 32.1% Graduate Programs Duplicate Headcount 5 Budget Book Section 4 RHE FTE: FY19 vs FY18 Change = - 8.0% ecampus FTEs: FY19 vs FY18 Change = - 7.6% HCOM Headcount FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Budget August 2018 FY19 Forecast Traditional Graduate Programs 2,738 2,641 2,628 2,586 2,586 2,336 Professional Masters (Outreach) 2,298 2,383 2,558 2,719 2,950 2,864 Total 5,036 5,024 5,186 5,305 5,536 5,200 FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Budget August 2018 FY19 Forecast Athens Campus Dublin Campus Cleveland Campus Total

19 FY18 Revenue Driver: Tuition & Financial Aid Net UG and Grad Tuition (in millions) FY15 Actuals FY16 Actuals FY17 Actuals FY18 Budget FY18 Forecast FY19 Budget August 2018 FY19 Forecast Gross Undergraduate Tuition & Fees $ $ $ $ $ $ $ Undergraduate Financial Aid (51.3) (57.8) (60.1) (62.5) (58.9) (63.0) (62.5) Net Undergraduate Tuition & Fees $ $ $ $ $ $ $ % of University Revenues 33.9% 33.0% 31.2% 32.3% 31.9% 31.5% 30.8% 6 Budget Book Section 4 Gross Graduate Tuition & Fees Graduate Financial Aid (29.9) (28.5) (29.0) (28.2) (27.8) (28.7) (28.7) Net Graduate Tuition & Fees $ 64.2 $ 71.6 $ 79.2 $ 87.1 $ 86.3 $ 96.3 $ 96.3 % of University Revenues 8.8% 9.6% 10.1% 11.7% 11.5% 12.8% 12.9% Net UG Tuition by Campus (in millions) FY15 Actuals FY16 Actuals FY17 Actuals FY18 Budget FY18 Forecast FY19 Budget August 2018 FY19 Forecast Athens Campus $ $ $ $ $ $ $ Regional Campuses ecampus Other Student Fees Total - Net Undergraduate Tuition & Fees $ $ $ $ $ $ $ 230.4

20 Budget Planning & Enrollment Trends Multi-Year Budget Planning: Athens UG Enrollments 7 FY13 TO FY22 PROJECTION Actual Enrollment Fall Projection - August 18,500 18,000 17,500 17,000 17,007 17,375 17,660 17,965 18,209 17,936 17,504 17,110 16,817 16,673 16,500 16,000 15,500 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

21 Strategic Alignments 8 Strategic Pathways Become a National Leader for Diversity and Inclusion Enhance the Overall Academic Quality of the University Build a University Engagement Ecosystem Become a Place Where Dialogue and Rigorous, Civil Debate are Institutional Hallmarks The effective alignment of the over-arching Presidential Strategic Pathways, the goals of the Strategic Enrollment Management Plan and the long term Budget Planning efforts as they relate to the revenues generated through our multimodal enrollments are efforts we are continually striving to achieve.

22 The Strategic Enrollment Executive Committee (SEEC) In alignment with Ohio University s priorities and pathways, the Strategic Enrollment Executive Committee (SEEC) will provide high level, executive oversight of the university s strategic enrollment priorities and initiatives and will report to the President. To that end, this executive committee will: 9 Review the strategic enrollment management plan and provide recommendations to update the plan to reflect a holistic approach to strategic enrollment recruitment of students Provide strategic recommendations and prioritization of desired outcomes in an effort to shape and strengthen the enrollment portfolio of Ohio University Ensure strategic positioning of the university in response to changing demographics of Ohio and assess needs relative to the enhanced recruitment and retention of students in both key and new markets Assess the procurement and utilization of consultants, ensuring the strategic use of these advisors is providing the university with the greatest return on investment relative to our desired enrollment goals and outcomes

23 The Strategic Enrollment Executive Committee (SEEC) 10 Membership will consist of senior executive representation from: EVPP, Chair Deans, Athens and RHE Student Affairs Diversity and Inclusion Strategic Enrollment Management Instruction and Innovation Academic Budgeting University Budget August Ideal University Enrollment Mix SEEC University Revenues and Long Term Budget Planning

24 FY20 Enrollment Drivers for Consideration in Budget Planning 11

25 12 Current and Future Enrollments in Ohio 140, , , , , , , , Source: Knocking at the College Door, Projections of High School Graduates, December, 2016; WICHE

26 13 Updated: August 2018 Enrollment Projections: Fall 2018 for BPC Discussion Based on High School Graduates and Proportional Market Share for New Freshman Classes, Fall Terms * 2019* 2020* 2021* Ohio High School Graduates 136, , , , , , , , , , , ,808 Graduates Attending College or University 52,647 52,489 51,627 46,151 48,749 48,453 47,050 46,644 47,173 46,408 45,292 45,027 Graduates Attending University 38,432 38,842 37,688 35,075 36,074 36,340 34,817 34,583 34,976 34,408 33,581 33,384 Ohio University Freshman Class - Projected 3,540 3,394 3,292 3,629 3,789 3,756 3,774 3,530 3,450 3,394 3,313 3,293 OU Share of Graduates attending University 9.2% 8.7% 8.7% 10.3% 10.5% 10.3% 10.8% 10.2% 9.9% 9.9% 9.9% 9.9% Freshman Cohort for Budget Planning * 2019* 2020* 2021* In-State 3,540 3,394 3,292 3,629 3,789 3,756 3,774 3,530 3,450 3,394 3,313 3,293 Out-of-State Total 3,978 3,883 3,887 4,244 4,378 4,423 4,309 4,045 3,966 3,910 3,829 3,809 Scholarship Leveraging Initiative (Recommended by BPC in Fall 2017) Enrollments With Scholarship Leveraging 4,144 4,144 4,144 4,144 Enrollments in Excess of Historical Projection Revised OU Share of Ohio Grads, Based on Scholarship Leveraging Initiative which assumes students are Ohio Residents 10.4% 10.5% 10.8% 10.9% Footnotes: * Projected based on high school graduates attending public colleges and OHIOs proportional share of that population equal to OU's average share of Ohio Graduates Actual 9.8% as of 8/28 Enrollment Management's Updated Freshman Enrollment Projections, Fall 2018 As of: August 2018 Freshman Cohort for Budget Planning In-State 3,540 3,394 3,292 3,629 3,789 3,756 3,774 3,530 3,425 Out-of-State Total 3,978 3,883 3,887 4,244 4,378 4,423 4,309 4,045 3, Change: August 2018 Enrollment Projection vs FY19 Planning Assumption -169

27 14 FY20+ Drivers for Consideration Freshman Enrollments 11.0% OHIO Share of Graduates 10.5% 10.0% 10.3% 10.5% 10.3% 10.8% 10.2% 9.5% 9.8% 9.0% 8.5% 8.0% 7.5% 9.2% 8.7% 8.7% 7.0% OHIO Share of Graduates

28 15 FY20+ Drivers for Consideration Freshman Enrollments ,530, 10.2% 3,440, 10.0% ,425, 9.8% ,372, 9.8% ,234, 9.4% In State Enrollments Continued Decline Projection In State Enrollments Flat Projection In State Enrollments Growth Projection What do we anticipate our capture of the in-state market will be for budget planning purposes? Loss = 191 less students Equal to this year = 53 less students Growth (rolling average is 9.9% in 2018) = +15 students

29 16 FY20+ Drivers for Consideration Freshman Enrollments 800 Out-of-State Enrollment - Freshman Classes year rolling average year rolling average Out-of-State Enrollment - Freshman Classes

30 17 FY20+ Drivers for Consideration Freshman Enrollments 700 Transfer Student Enrollment Transfer Student Enrollment

31 18 FY20+ Drivers for Consideration Freshman Enrollments prelim planning Freshman (in) 3,529 3,425 3,234 3,440 Freshman (out) Transfers New Total 4,506 4,436 4,214 4,505

32 Fall Enrollment Update- BPC Meetings 19 Next Update Census enrollments Enrollment enhancements for 2018 and expectations on enrollment impacts Name-buys Application Waivers Preliminary Scholarship planning Outreach efforts Anticipated enrollment impacts

33 1 Enrollment Update BPC 8/30/2018 Craig Cornell, SVP, Strategic Enrollment Management

34 Fall Enrollment Projections Preliminary Overview - Undergraduate Enrollments 2 Many enrollment groups have significant changes throughout the month of August leading to the opening of Fall term. For example, there are still two more orientation days in late August that will affect final numbers for freshman and transfers alone. In addition, our online program students enroll all the way until the start of the term. Therefore, we will populate these next two slides to be as accurate as possible for the meeting: Note: All numbers on the next 2 slides represent August 17, 2018 to August 17, 2017 comparisons: New Students: Freshmen Currently at 3,955, down by 45 students (-1.1%). With late Bobcat Student Orientation date registrations, expect this number to be down by fall start by students from last year s class of 4,045. Transfer Students Currently at 358 students, down by 23 students. With late Bobcat Student Orientation date registrations, expect this number to be flat with last year. Returning Undergrad: Currently at 12,443, down 546 students (-4.4%). Undergrad Online: Currently at 4,747, down 394 students (-7.6%). Retention: Currently at 81.1% which is up by 1.1%, which would account for 45 additional students.

35 Fall Enrollment Projections Preliminary Overview Graduate Students: Athens: Currently at 1,284 students, down 247 students (-16%). We generally pick up an additional 1,000+ students from this time of the year to final fall numbers. Other Graduate: o Graduate online is currently at 2,180, up by 55 students (2.5%). We anticipate this number to climb a bit further due to the nature of online enrollments as we generally grow more than 500 students for fall starts. o Dublin is currently at 83, down 8 students (-9.6%) o Outreach Programs are currently at 223, down 75 (-25%) RHE: RHE enrollments are currently at 5,500 students, down 432 (-7.3%) Medical: HCOM enrollments are currently at 971 students, up 58 (6.4%) Total All University Enrollments: Therefore, all in, we are currently 31,699, down 1,657 (-4.9%) compared to this point in time last year. Historically, we add approximately 3,000 (10%) more students from this point to final enrollments by term end. 3

36 FY19 Revenue Driver Enrollments Enrollment - Athens Athens - Undergraduate Incoming Cohort (Fall) August 2018 FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Planning Assumption FY19 Budget FY19 Forecast Resident 3,788 3,756 3,774 3,530 3,629 3,425 3,425 Non-resident Total New Freshmen 4,377 4,423 4,309 4,045 4,144 3,971 3,975 Budget Book Section 4 Athens UG Freshman: FY19 vs FY18 Change = Resident Non-resident Total Transfers Total Incoming Cohort 4,922 4,986 4,854 4,506 4,605 4,432 4,436 Athens - Cohort Duplicated Headcount (Fall; excluding ecampus) August 2018 FY16 Actual FY17 Actual FY18 Actual FY19 Planning Assumption FY19 Budget FY19 Forecast Continuing Students 12,987 9,009 5,344 2,764 2,764 2,764 OHIO Guarantee ,978 4,304 3,986 3,195 3,195 3,195 OHIO Guarantee ,896 4,118 3,512 3,512 3,512 OHIO Guarantee ,478 3,597 3,597 3,597 OHIO Guarantee ,605 4,432 4,436 Total 17,965 18,209 17,926 17,673 17,500 17,504 Athens - Undergraduate Resident/Non-Resident Headcount (Fall; excluding ecampus) FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Planning Assumption FY19 Budget August 2018 FY19 Forecast Resident 14,921 15,157 15,627 15,527 15,329 15,125 15,125 Non-resident 2,739 2,808 2,582 2,398 2,344 2,375 2,379 Total 17,660 17,965 18,209 17,925 17,673 17,500 17,504 % Non-resident 15.5% 15.6% 14.2% 13.4% 13.3% 13.6% 13.6%

37 FY19 Revenue Driver Enrollments Undergraduate FTE FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Planning Assumption FY19 Budget Regional Campuses Chillicothe 1,476 1,392 1,369 1,281 1,243 1,243 Eastern Lancaster 1,571 1,503 1,390 1,293 1,254 1,254 Southern 1,296 1,237 1,208 1,245 1,208 1,208 August 2018 Zanesville 1,243 1,224 1,107 1, Total Regional Campuses 6,173 5,962 5,650 5,389 5,227 5,227 4,960 ecampus - Resident/Non-Resident Duplicated FTE (Fall; Athens and Regionals Undergraduate) August 18 FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Budget FY19 Proj Resident 2,224 2,167 2,197 1,986 2,005 1,853 Non-resident Total 2,931 2,979 3,060 2,926 2,954 2,730 % Non-resident 24.1% 27.3% 28.2% 32.1% 32.1% 32.1% Graduate Programs Duplicate Headcount 5 Budget Book Section 4 RHE FTE: FY19 vs FY18 Change = - 8.0% ecampus FTEs: FY19 vs FY18 Change = - 7.6% HCOM Headcount FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Budget August 2018 FY19 Forecast Traditional Graduate Programs 2,738 2,641 2,628 2,586 2,586 2,336 Professional Masters (Outreach) 2,298 2,383 2,558 2,719 2,950 2,864 Total 5,036 5,024 5,186 5,305 5,536 5,200 FY15 Actual FY16 Actual FY17 Actual FY18 Actual FY19 Budget August 2018 FY19 Forecast Athens Campus Dublin Campus Cleveland Campus Total

38 FY18 Revenue Driver: Tuition & Financial Aid Net UG and Grad Tuition (in millions) FY15 Actuals FY16 Actuals FY17 Actuals FY18 Budget FY18 Forecast FY19 Budget August 2018 FY19 Forecast Gross Undergraduate Tuition & Fees $ $ $ $ $ $ $ Undergraduate Financial Aid (51.3) (57.8) (60.1) (62.5) (58.9) (63.0) (62.5) Net Undergraduate Tuition & Fees $ $ $ $ $ $ $ % of University Revenues 33.9% 33.0% 31.2% 32.3% 31.9% 31.5% 30.8% 6 Budget Book Section 4 Gross Graduate Tuition & Fees Graduate Financial Aid (29.9) (28.5) (29.0) (28.2) (27.8) (28.7) (28.7) Net Graduate Tuition & Fees $ 64.2 $ 71.6 $ 79.2 $ 87.1 $ 86.3 $ 96.3 $ 96.3 % of University Revenues 8.8% 9.6% 10.1% 11.7% 11.5% 12.8% 12.9% Net UG Tuition by Campus (in millions) FY15 Actuals FY16 Actuals FY17 Actuals FY18 Budget FY18 Forecast FY19 Budget August 2018 FY19 Forecast Athens Campus $ $ $ $ $ $ $ Regional Campuses ecampus Other Student Fees Total - Net Undergraduate Tuition & Fees $ $ $ $ $ $ $ 230.4

39 Budget Planning & Enrollment Trends Multi-Year Budget Planning: Athens UG Enrollments 7 FY13 TO FY22 PROJECTION Actual Enrollment Fall Projection - August 18,500 18,000 17,500 17,000 17,007 17,375 17,660 17,965 18,209 17,926 17,504 17,110 16,817 16,673 16,500 16,000 15,500 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22

40 Strategic Alignments 8 Strategic Pathways Become a National Leader for Diversity and Inclusion Enhance the Overall Academic Quality of the University Build a University Engagement Ecosystem Become a Place Where Dialogue and Rigorous, Civil Debate are Institutional Hallmarks The effective alignment of the over-arching Presidential Strategic Pathways, the goals of the Strategic Enrollment Management Plan and the long term Budget Planning efforts as they relate to the revenues generated through our multimodal enrollments are efforts we are continually striving to achieve.

41 The Strategic Enrollment Executive Committee (SEEC) In alignment with Ohio University s priorities and pathways, the Strategic Enrollment Executive Committee (SEEC) will provide high level, executive oversight of the university s strategic enrollment priorities and initiatives and will report to the President. To that end, this executive committee will: 9 Review the strategic enrollment management plan and provide recommendations to update the plan to reflect a holistic approach to strategic enrollment recruitment of students Provide strategic recommendations and prioritization of desired outcomes in an effort to shape and strengthen the enrollment portfolio of Ohio University Ensure strategic positioning of the university in response to changing demographics of Ohio and assess needs relative to the enhanced recruitment and retention of students in both key and new markets Assess the procurement and utilization of consultants, ensuring the strategic use of these advisors is providing the university with the greatest return on investment relative to our desired enrollment goals and outcomes

42 The Strategic Enrollment Executive Committee (SEEC) 10 Membership will consist of senior executive representation from: EVPP, Chair Deans, Athens and RHE Student Affairs Diversity and Inclusion Strategic Enrollment Management Instruction and Innovation Academic Budgeting University Budget August Ideal University Enrollment Mix SEEC University Revenues and Long Term Budget Planning

43 FY20 Enrollment Drivers for Consideration in Budget Planning 11

44 12 Current and Future Enrollments in Ohio 140, , , , , , , , Source: Knocking at the College Door, Projections of High School Graduates, December, 2016; WICHE

45 13 Updated: August 2018 Enrollment Projections: Fall 2018 for BPC Discussion Based on High School Graduates and Proportional Market Share for New Freshman Classes, Fall Terms * 2019* 2020* 2021* Ohio High School Graduates 136, , , , , , , , , , , ,808 Graduates Attending College or University 52,647 52,489 51,627 46,151 48,749 48,453 47,050 46,644 47,173 46,408 45,292 45,027 Graduates Attending University 38,432 38,842 37,688 35,075 36,074 36,340 34,817 34,583 34,976 34,408 33,581 33,384 Ohio University Freshman Class - Projected 3,540 3,394 3,292 3,629 3,789 3,756 3,774 3,530 3,450 3,394 3,313 3,293 OU Share of Graduates attending University 9.2% 8.7% 8.7% 10.3% 10.5% 10.3% 10.8% 10.2% 9.9% 9.9% 9.9% 9.9% Freshman Cohort for Budget Planning * 2019* 2020* 2021* In-State 3,540 3,394 3,292 3,629 3,789 3,756 3,774 3,530 3,450 3,394 3,313 3,293 Out-of-State Total 3,978 3,883 3,887 4,244 4,378 4,423 4,309 4,045 3,966 3,910 3,829 3,809 Scholarship Leveraging Initiative (Recommended by BPC in Fall 2017) Enrollments With Scholarship Leveraging 4,144 4,144 4,144 4,144 Enrollments in Excess of Historical Projection Revised OU Share of Ohio Grads, Based on Scholarship Leveraging Initiative which assumes students are Ohio Residents 10.4% 10.5% 10.8% 10.9% Footnotes: * Projected based on high school graduates attending public colleges and OHIOs proportional share of that population equal to OU's average share of Ohio Graduates Actual 9.8% as of 8/28 Enrollment Management's Updated Freshman Enrollment Projections, Fall 2018 As of: August 2018 Freshman Cohort for Budget Planning In-State 3,540 3,394 3,292 3,629 3,789 3,756 3,774 3,530 3,425 Out-of-State Total 3,978 3,883 3,887 4,244 4,378 4,423 4,309 4,045 3, Change: August 2018 Enrollment Projection vs FY19 Planning Assumption -169

46 14 FY20+ Drivers for Consideration Freshman Enrollments 11.0% OHIO Share of Graduates 10.5% 10.0% 10.3% 10.5% 10.3% 10.8% 10.2% 9.5% 9.8% 9.0% 8.5% 8.0% 7.5% 9.2% 8.7% 8.7% 7.0% OHIO Share of Graduates

47 15 FY20+ Drivers for Consideration Freshman Enrollments ,530, 10.2% 3,440, 10.0% ,425, 9.8% ,372, 9.8% ,234, 9.4% In State Enrollments Continued Decline Projection In State Enrollments Flat Projection In State Enrollments Growth Projection What do we anticipate our capture of the in-state market will be for budget planning purposes? Loss = 191 less students Equal to this year = 53 less students Growth (rolling average is 9.9% in 2018) = +15 students

48 16 FY20+ Drivers for Consideration Freshman Enrollments 800 Out-of-State Enrollment - Freshman Classes year rolling average year rolling average Out-of-State Enrollment - Freshman Classes

49 17 FY20+ Drivers for Consideration Freshman Enrollments 700 Transfer Student Enrollment Transfer Student Enrollment

50 18 FY20+ Drivers for Consideration Freshman Enrollments prelim planning Freshman (in) 3,529 3,425 3,234 3,440 Freshman (out) Transfers New Total 4,506 4,436 4,214 4,505

51 Fall Enrollment Update- BPC Meetings 19 Next Update Census enrollments Enrollment enhancements for 2018 and expectations on enrollment impacts Name-buys Application Waivers Preliminary Scholarship planning Outreach efforts Anticipated enrollment impacts

52 Updated: August 2018 Based on High School Graduates and Proportional Market Share for New Freshman Classes, Fall Terms * 2019* 2020* 2021* Ohio High School Graduates 136, , , , , , , , , , , ,808 Graduates Attending College or University 52,647 52,489 51,627 46,151 48,749 48,453 47,050 46,644 47,173 46,408 45,292 45,027 Graduates Attending University 38,432 38,842 37,688 35,075 36,074 36,340 34,817 34,583 34,976 34,408 33,581 33,384 Ohio University Freshman Class - Projected 3,540 3,394 3,292 3,629 3,789 3,756 3,774 3,530 3,450 3,394 3,313 3,293 OU Share of Graduates attending University 9.2% 8.7% 8.7% 10.3% 10.5% 10.3% 10.8% 10.2% 9.9% 9.9% 9.9% 9.9% Freshman Cohort for Budget Planning * 2019* 2020* 2021* In-State 3,540 3,394 3,292 3,629 3,789 3,756 3,774 3,530 3,450 3,394 3,313 3,293 Out-of-State Total 3,978 3,883 3,887 4,244 4,378 4,423 4,309 4,045 3,966 3,910 3,829 3,809 Scholarship Leveraging Initiative (Initial Projection in Fall 2017, Fall 2018 Scholarship Funding Approved by BPC) Enrollments With Scholarship Leveraging 4,144 4,144 4,144 4,144 Enrollments in Excess of Historical Projection Revised OU Share of Ohio Grads, Based on Scholarship Leveraging Initiative which assumes students are Ohio Residents 10.4% 10.5% 10.8% 10.9% Footnotes: * Projected based on high school graduates attending public colleges and OHIOs proportional share of that population equal to OU's average share of Ohio Graduates Enrollment Management's Updated Freshman Enrollment Projections, Fall 2018 Enrollment Projections: Fall 2018 for BPC Discussion As of: August 2018 Freshman Cohort for Budget Planning In-State 3,540 3,394 3,292 3,629 3,789 3,756 3,774 3,530 3,425 Out-of-State Total 3,978 3,883 3,887 4,244 4,378 4,423 4,309 4,045 3, Change: August 2018 Enrollment Projection vs FY19 Planning Assumption ,144-4,144-4,144

53 Budget Planning Council Meeting Notes August 30, 2018, 11:00 AM 1:00 PM Baker Center MCC MPR Room 219 BPC Members In Attendance: Deb Shaffer (via phone), Chaden Djalali, Joe Shields, Matthew Shaftel, Maria Modayil, Madison Sloat, Hans Meyer, Joe McLaughlin, Sarah Helfrich, Susan Williams, Faith Voinovich, Jason Pina, Amanda Graham, Dale Masel BPC Members Absent: Randy Leite, Tim Epley Staff: Katie Hensel, Dawn Weiser, Kayla Righter, Bob Kissell, Jim Sabin, Rosanna Howard, Jen Kirksey, Craig Cornell, Austin McClain, Chad Mitchell, Nico Karagosian Welcome and Introductions o Members introduced themselves o Katie advised there will be a BPC orientation session held next Thursday, September 6, for any member interested; the session will provide a general review of the larger budget line items; FY19 Budget Books are available to members as they leave and will be referenced in the orientation and throughout the year Budget Planning Council (BPC) o Katie reviewed the BPC charge, roles and responsibilities BPC acts in an advisory role to the President for current and multi-year budget issues o Provost Djalali reminded that communications out of BPC can be critical to campus morale; communications should be clear, fairly representing the Council discussions and goals; members should encourage feedback from their constituent o Planning assumptions and processes being undertaken throughout the budget planning timeframe will be reviewed with BPC throughout their meeting cycle o Macro assumptions are regularly reviewed, discussed and considered for the major revenue and expense budgets; ie. assumptions regarding enrollments, tuition rates, subsidy, financial aid, compensation, etc o Other campus committees involved with the budget process include o Student Fee Committee reviews fee proposals from campus units report recommendations to BPC o Benefits Advisory Committee (BAC) examines benefit plan designs, annual cost accelerators, national trends and move recommendations forward through BPC Goal is to manage cost increases to no more than 5% annually and for plan costs to stay within federal guidelines to avoid Affordable Care Act penalties BAC provides updates of their recommendations to BPC twice per year o Student Services Committee Student Senate President is the Chair; committee reviews student support services on campus to understand their cost drivers and provides feedback on student priorities related to respective services o Strategic Enrollment Executive Committee (SEEC) this is a new Presidential committee to provide executive oversight of and establish strategic enrollment management goals and desired outcomes across all enrollments (Athens traditional residential in-state, out-of-state, international, transfers, etc; e-learning; etc) o Budget Stakeholders o The Board of Trustees approves tuition and fee rates and the annual operating and capital budgets based on a multi-year presentation o Academic Leadership (Colleges) own the University revenues under the OHIO Budget Model

54 o o The annual budget must be balanced, it is a shared process to balance projected revenues against priority investments and any reallocations o Support units, Faculty, Staff and Students Strategic Priorities and Supporting Initiatives the Strategic Priorities and the Presidential Pathways are the basis for prioritization of initiatives and investments Specific FY20 budget challenges discussed include o student affordability o enrollments less than budgeted for Fall 2018; partially a function of enrollment drivers and demographics o constrained revenues 0% tuition and state support planned; state support has remained flat and FY20 will be the 4 th year of UG tuition freezes and 2 nd year of freeze for all other fees o expenditures increase annually making it difficult to advance the board priorities for addressing competitive faculty and staff compensation and deferred maintenance for aged facilities FY20 Budget Planning o Budget planning assumptions are continually being communicated during the annual budget process o FY20 Initial Planning Assumptions were developed and published during the last budget cycle and included in the FY19 Budget Book and they serve as the starting point for today s discussion. Recommendation for discussion was to revise several of those assumptions: o Guarantee tuition rate FY19 increase was held to CPI of 1.3%; FY20 initially set at CPI + an assumed 2% tuition for 3.3% the FY20 plan assumption has been reduced to just the 1.3% CPI; prudent to start off conservative since the state is expected to continue the 0% cap in the next budget each 1% fee increase for freshmen enrollments is approximately $1.1M impact to FY20 tuition revenue; that $1.1M runs through each of the next four year s revenue projections o Freshmen enrollment our drop in Fall 2018 freshmen enrollments required the use of $1.3M from Strategic Opportunity Reserve (SOR) funds more on the Fall 2018 enrollments and Fall 2019 projections in Craig Cornell s upcoming presentation Discussion of SOR o SOR is supported by annual unallocated resources including the unallocated 2% of projected SSI and tuition revenue and $4.5M of working capital investments. The accumulated reserves are used for investments in new programs that will eventually sustain themselves and to fund priorities of the Presidential Pathways o The Board has restricted the use of SOR to support annual budget shortfalls from changes in budgeted assumptions (i.e. the 2018 enrollment shortfall) to one-time only meaning that successive year budgets must reflect these costs being funded through the operating budget; SOR is not to be used for long-term or base funding o o FY20 UG Enrollment assumptions will be based on a 3-yr average of retention rates o Retention data suggests that our rate could be up by 1% o Transfer assumptions are flat with Fall 2017 and FY19 budget Student Financial Aid projections will be driven by Enrollment projections

55 o o The aid budget for FY19 includes the first cohort of the scholarship leveraging plan approved for Fall 2018 enrollments; a second cohort has not been included in budget assumptions and modeling at this time Funding for the second cohort of the Scholarship Leveraging plan is an open discussion between the President and the Provost there is concern over the continuation of the leveraging plan each new cohort is a 4-year commitment of financial aid the SEEC will analyze and delve into the FY19 cohort success and determine whether to continue the program SSI projections assume no new money for SSI in the Budget Bill; we will budget SSI flat and assuming we retain our proportionate share of total state SSI (10.6%) o to continue the 10.6%, degree and course completions must remain at the same level o to garner more SSI would require outperforming our peers in completions or the state increasing the SSI budget o Healthcare o FY19 budget increase of 2.5% (5% increase funded 2.5% from reserves) will be used again in FY20 as reserves continue to be sufficient to absorb a portion of the expense growth. We will continue to monitor the actuarial forecasts of our healthcare expenditures and adjust as necessary in future assumptions. o o Central Costs no change from the Initial Planning Assumptions reflects increases from university raise pools, debt costs, energy costs, and increase square footage, offset by administrative reductions o o Capital Cost Model o $150K reduction in Initial Planning due to elimination of the increase to fund debt Raise Pool - Katie teed up this BPC discussion topic to gather recommendations for changes to guidance for Fall Planning Assumptions for Raise Pool to be sent out for Fall Financial Reviews: What is the best timing and way to consider raise pool in budget planning? RAISE POOL DISCUSSION o There is not enough information about FY20 budget planning to set a raise pool % this Fall the concern is that leaving it blank may send the incorrect message that we are planning for zero o The Budget office recommends releasing iterative budget assumptions throughout the year; considering other variables impacts and building the budget over the planning timeline based on knowns o The group recommends communicating there will be a raise pool, but an amount has not yet been set take Raise Pool % off the Fall FY20 Budget Planning Assumptions matrix; replace with a note providing the date by which final raise pool % will be provided provide units with information for their budget impact of a 1% increase for faculty and for staff this will allow units to intelligently discuss impacts of a raise pool o each unit s raise pool budget is the total for that unit s salary/wage increases for the year; decisions on individual raises are made by planning unit leadership; HR provides guidance on application of that pool to individual employees within the unit based on performance; units must manage within the overall pool for their unit FY20 PLANNING ASSUMPTIONS DISCUSSION

56 o o o The group recommended including information on expected dates for when each of the planning assumptions will be finalized and communicated so units know which levers might continue to impact their iterative planning The group recommended including equivalency metrics for planning assumptions ( 1% in enrollments = # students and $ in revenue; 1% retention = # students and $ revenue;, 1% raise pool = $, etc.) John Day has started communicating with academic units about their Fall Financial Reviews o Deb would like to continue the practice started last year with BPC reviewing and providing input on budget communications before distribution to campus; the committee agreed o Chaden commented that communication around the evolving budget gap be discussed when the time comes, that discussing such extraordinarily high amounts can be discouraging to campus Enrollment o Craig Cornell reviewed the preliminary enrollment information for Fall 2018 that was shared with the Board last week o Retention is up 1.1% o The Strategic Enrollment Executive Committee (SEEC) charge and membership were discussed. o Enrollment Drivers o Ohio High School (HS) graduates projections show continual decline for the next several years; model was developed last year, based on past graduate actuals, to project the number of Ohio graduates estimated to matriculate to 4-year universities in Ohio and then to OHIO - Katie and Craig will be working with the model to re-project based on updated information o Brutal competition is a huge factor impacting OHIO s recruiting success - other states are trying to keep their HS graduates at home - other Ohio institutions are ramping up their out-of-state marketing - out of state institutions are heavily marketing to a decreasing number of Ohio HS graduates o Craig assured there are enrollment strategies in play that have been developed that should positively impact our projected enrollments related to both in- and out-of-state markets o SEEC will likely charge sub-committees with tasks to drill down into the impacts of enrollment drivers and competition o Next steps for FY 20 o Final enrollment assumptions will be shared with BPC by Enrollment Management in future meetings o Budget Office to calculate tuition revenue based on Enrollment Management s projected enrollments o do not want to build an aspirational budget, rather start from a realistic baseline enrollment upon which to build the revenue budget, with an understanding of how much additional revenue is generated from incremental enrollments and a corresponding conversation on the impacts of budgeting for lower enrollments Commented [WD1]: Chaden suggested the preliminary projection info not be spelled out in the BPC minutes at this date; actuals can be shared once the census data is presented Next Meeting Thursday, September 6, 2018, 11:00-1:00, Baker MCC MPR Rm 219 ORIENTATION optional Thursday, September 20, 2018, 11:00-1:00, Baker Rm 2