GEORGE MASON UNIVERSITY Board of Visitors Finance & Land Use Committee May 3, 2018

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1 R MASN UNIVRSITY Board of Visitors Finance & Land Use Committee May 3, 2018

2 Agenda I. Call to rder II. Approval of Minutes III. FY 2019 University perating Budget, Tuition and Fees IV. Capital Matters A. Capital Project Authorization Hylton HVAC Renovation B. Merten Hall Capital Lease and round Lease Resolution C. Six-Year Capital Plan V. perational Issue JLARC Span of Control VI. Strategic Matter West Campus Update VII. Adjournment

3 BRAKIN NWS Mason Upgraded A+ R MASN #54 out of 500 R MASN UNIVRSITY 3

4 FY 2019 University perating Budget, Tuition & Fees R MASN UNIVRSITY R MASN UNIVRSITY 4

5 The Financial Framework R MASN UNIVRSITY 5

6 FY 2019 Proposed Budget Amendments Mason Priorities overnor s FY 2019 Proposed Budget House FY 2019 Proposed Budget Senate FY 2019 Proposed Budget Provide Affordable Access for All Students Increase undergraduate financial aid $14.7M over the biennium No change to dollars, adds priority funding language Funds approximately half of the overnor s recommended amount Attract & Retain Top Talent 2% salary increase as of Dec 1, 2019 (FY 2020) 2% salary increase as of July 1, 2019, 1% merit increase for classified staff employees* liminated funding but directs funds (2% raise) to reserves, dependent on FY2018 revenue outcomes Career-ready graduates with equitable resources to support enrollment growth $4m year 1 and $10M year 2 for prior in-state enrollment growth Removes $14M, Adds $300k STP, $1.4M &M for Facilities, $7M for High Degree Awards Removes $4M year 1, keeps $10M year 2 Commonwealth Research $16M over 2 years for Virginia Research Investment Fund (VRIF) Maintains $16M for VRIF and adds $40M for CyberX Maintains $16M for VRIF R MASN UNIVRSITY 6

7 FY 2019 Proposed Budget Items of Note ***No State Budget *** CAPITAL: Bull Run IIIB: With a change of scope, added additional funding of $21.1M. Utility Infrastructure: Received additional Commonwealth funding and provides bond authority. Maintenance Reserves: Additional $1.8M per each year of biennium. LAR AP: $1B Differential between House & Senate Budgets Virginia House budget includes Medicaid expansion; Senate version does not CHALLNS: Compensation for Faculty and Staff nrollment rowth Funding Financial Aid New Requirements 4/11/2018 R MASN UNIVRSITY R MASN UNIVRSITY 7

8 FY In-State Tuition and Fees Comparison $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 W&M UVa VCU VT Mason = $1,047 per student Range of $1,306 to $10,120 per student $2,000 FY 2001 FY 2009 FY 2018 Source: SCHV , , Tuition and Fee Report Tuition and Total Mandatory Fees R MASN UNIVRSITY 8

9 Mason FY 2018 Financial Disparity $25,000 $24,239 $22,450 $20,000 $7,733 $8,640 $18,370 $18,252 $19,247 $15,000 $10,000 $5,000 $16,506 $13,810 $6,887 $6,989 $11,483 $11,263 $12,923 $6,275 $6,648 $7,305 Average w/o Mason $14,330 $5,658 $11,942 $8,672 $0 In-State Tuition eneral Fund R MASN UNIVRSITY 9

10 fficient: Faculty/Staff to Student Comparison Institution Faculty or Staff Students Ratio William and Mary 1 to 3.4 Doctoral Average 1 to 5.4 Virginia Commonwealth University eorge Mason University 1 to to 8.1 Mason would need to add over 1,000 people to be comparable with doctoral average. R MASN UNIVRSITY 10

11 Key Challenge How does MASN remain ACCSSIBL AFFRDABL HIH QUALITY with a great RI? Balanced Budget Moderate Tuition Increase 11

12 Proposed FY 2019 Revenue Budget $1.06B All ther Activities, 25% Sponsored Research, $115.3 Philanthropic Activities, $65.0 perating, $136.1 Financial Aid, $22.6 VA State Funding, 18% Capital Improvements, $33.7 Community & User Service Fee, $86.2 Mason Capital Funds, $17.1 Capital, 2% Room & Board, $76.5 nrollment Related Fees, 55% pie chart $ in millions Mandatory Student Services & Activity Fees, $97.1 Tuition, $409.3 R MASN UNIVRSITY 12

13 Key Increases of Proposed FY 2019 Revenue Budget $10.6M $15.2M Sponsored Research Compensation, mergency Retention, Promotion & Tenure and Healthcare $5.0M $4.7M $8.4M Philanthropy Undergraduate and raduate Financial Aid IT Infrastructure and Research $4.0M $3.6M Strategic Initiatives Student Services, perations & Athletics R MASN UNIVRSITY 13

14 Proposed FY 2019 xpense Budget $1.06B All ther Activities, 23% Community & User Service (Non-&), $65.7 Foundation Support for Mason, $65.0 Research Contracts and rants, $115.3 Capital, 5% nrollment Related, 72% Capital Improvements, $46.4 pie chart $ in millions Financial Aid, $22.6 Room & Board, $76.5 R MASN UNIVRSITY Student Services & Activity Fees, $97.1 ducational & eneral, $570.3 R MASN UNIVRSITY 14

15 Posted FY 2019 Tuition Increase Range 4.5% 5.5% Proposed 4.5% Tuition & Fees Increase IN-STAT UNDRRADUAT FY 2019 Increase over Prior Year % Increase Tuition & Fees $12,462 $ % Room and Board 11,460 $ % TTAL $23,922 $ % A 5.5% increase would have added ~$3M net tuition to fund IT Infrastructure, President s Strategic Fund, and Deferred Maintenance R MASN UNIVRSITY 15

16 Board Recommendation The Finance & Land Use Committee recommends approval by the Board of Visitors of the FY 2019 proposed Tuition and Fees increase as detailed on pages in the (PRPSD) xecutive Budget Summary; and approval of the proposed budget as provided in the (PRPSD) xecutive Budget Summary. MTIN: SCND: R MASN UNIVRSITY R MASN UNIVRSITY 16

17 Capital Matters R MASN UNIVRSITY R MASN UNIVRSITY 17

18 Capital Projects Authorization Hylton Performing Arts Center HVAC Repairs Modify temperature of supply air in Merchant Hall and increase return capacity. Add temperature control to the Merchant Hall stage. Modify air supply and return in the rand Foyer & Art allery. Various locations throughout building add cooling. Boiler #2 requires replacement Total Cost/Source: $4,025,000 University Funding R MASN UNIVRSITY 18

19 MUF Mason Administration LLC Capital Leases Amended capital and ground leases for Merten Hall 18 year term lease (2036) Decrease lease payments $2.7M over term Annual capital lease payments ~ $2.4M MUF Refinancing MUF will transfer the building to MU at the end of the term R MASN UNIVRSITY 19

20 Proposed Six Year Capital Plan: Proposed Projects for submission to DPB for Legislative Consideration Improve Telecomm/Network Infrastructure Fairfax F $11-13M Construct Academic VIII/Research IV-STM (200,000 SF) F NF Total $ M $ M $ M Renovate Planetary (S&T I) Hall (100,000 SF) F $65-75M Renovate and Addition David King Hall (86,000 SF Reno; 60,000 SF New) F $90-100M Improve Telecom/Network Infrastructure Phase II Improve Telecom/Network Infrastructure Phase III F NF Total F NF Total $ M $ M $24-26M $ M $ M $19-22M Renovate Fenwick Learning Commons Phase 2 (90,000 SF Reno; 35,000 SF New) F $50-55M Renovate nterprise Hall (100,000 SF) F $45-50M R MASN UNIVRSITY 20

21 Proposed Six Year Capital Plan: Proposed Projects for BV Approval only under Higher ducation Capital utlay (HC) New Business School Building (100,000 SF) NF (Donor) $70-80M Renovations to Center for the Arts Concert Hall NF (Donor) $25M Surface Parking Lot xpansion (Approximately 400 Spaces) NF (Auxiliary) $2M Pending Future Projects West Campus Arlington Campus R MASN UNIVRSITY 21

22 Board Resolution/Recommendations The Finance & Land Use Committee recommends approval by the Board of Visitors of the Hylton HVAC Repairs Capital Project Authorization; the Capital Lease Resolution for Merten Hall; and, approval of the Six-Year Capital Plan as detailed in the Board Book. The University hereby is authorized to enter into an amended capital lease and an amended ground lease with eorge Mason University Foundation Mason Administration LLC in conjunction with the Foundation s refinancing of their 2010A Fairfax County conomic Development Authority Tax-exempt Revenue Bonds (MUF Mason Administration LLC Project). MTIN: SCND: R MASN UNIVRSITY R MASN UNIVRSITY 22

23 perational Issues R MASN UNIVRSITY R MASN UNIVRSITY 23

24 JLARC Span f Control: Background & Context overnor & eneral Assembly Report: Support Costs and Staffing at Virginia s Higher ducation Institutions, ctober 2014 Study: Analyzed staffing levels and spans of control measured by the number of direct reports per supervisor Recommendations: Analyze span of control regularly Periodic BV reports Develop standards that establish and promote broader spans of control stablish a Span of Control policy R MASN UNIVRSITY 24

25 Mason s University Policy eorge Mason s Span of Control Policy Number 2233 The policy outlines the target average span of control, the minimum number of direct reports per supervisor, the process for exceptions, and information on the required mandatory annual reporting. (25) R MASN UNIVRSITY 25

26 Distribution of Mason s Workforce Mason has 10,938 employees, categorized as follows April 2018 MASN'S WRKFRC Category # I/R Faculty 1,548 Adjunct Faculty 1,143 A/P Faculty 822 Classified Staff 1,802 Student Workers 4,250 Non-Student Wage 1,373 All mployees 10,938 Non-Student Wage Workers 13% Student Workers 39% I/R Faculty 14% Adjunct Faculty 10% Classified Staff 16% A/P Faculty 8% R MASN UNIVRSITY 26

27 Proportion of Mason s Workforce in JLARC Study April 2018 JLARC s span of control recommendations cover only a portion of the workforce MASN S WRKFRC mployee Type Included as Supervisors # % A/P Faculty 822 7% Classified Staff 1,802 17% All mployees 2,624 24% mployee Type Not Included as Supervisor # % I/R Faculty* 1,548 15% Adjunct Faculty Ϯ 1,143 10% Non-Student Wage Ϯ 1,373 13% Student Workers Ϯ 4,250 38% All mployees 8,314 76% * I/R Faculty, as benefited employees, are included as direct reports in the remainder of the analysis. Not Included in Span of Control Analysis 8,314 76% Included in Span of Control Analysis 2,624 24% Ϯ Adjunct, Non-Student Wage, and Student Workers are not included in the analysis as direct reports. The exclusion of these employee types impacts the span of control statistics lowering it for those that supervise large numbers of students and wage employees. R MASN UNIVRSITY 27

28 Supervisory Status A/P Faculty April 2018 Classified Staff 14% 51% 49% 86% Supervisors Not Supervisors Supervisors Not Supervisors About half (49%) of A/P Faculty and 14% of Classified Staff have supervisory responsibilities. R MASN UNIVRSITY 28

29 Span of Control Span of Control A/P Faculty & Classified Supervisors Feb 2017 March 2018 Average Span of Control Median Span of Control Number of Supervisors with 1-2 Direct Reports Number of Supervisors with 3 or fewer Direct Reports Number of Supervisors with 6 or fewer Direct Reports R MASN UNIVRSITY 29

30 Board Recommendation The Finance & Land Use Committee recommends approval by the Board of Visitors of the annual report on Span of Control, as detailed in the Board Book: MTIN: SCND: R MASN UNIVRSITY R MASN UNIVRSITY 30

31 Strategic Matters R MASN UNIVRSITY R MASN UNIVRSITY 31

32 R West Campus Update A S N (32) R MASN UNIVRSITY FFIC F TH SNIR VIC PRSIDNT

33 R A S N Topics Student Housing: o Update Capstone Collegiate Communities Proposal City of Fairfax ne University Proposal Fairfax County West Campus Capacity Update YP ngagement and Process verview (33)

34 R ne University A S N (34)

35 R A S N (35) Capstone Democracy Lane verview 760 beds in 240 Units Mix of 1, 2 and 4 bedroom units 730 structured parking spaces 10,000 SF clubhouse Shuttle service Timeline Due Diligence through Sept 2018 Land Closing May 2019 Construction pening July 2021

36 R 35 Acres 25 Acres A S N West Campus Innovation District Site: 60 Acres (36)

37 R Traffic Capacity xisting Conditions D/C B/C B/B A S N (37) F/F Intersection Levels of Service AM Peak Hour/PM Peak Hour

38 R Traffic Capacity Future Forecasted Conditions D/D C/D B/B A S N (38) F/F Intersection Levels of Service AM Peak Hour/PM Peak Hour

39 R A S N Traffic Capacity Conclusions Future Forecasts based on campus population growth Does not apply specific programmatic elements of Master Plan Reserve capacity exists at the x Road/University Drive and Braddock Road/Campus Drive intersections May need to consider spot improvements (e.g., turn lane extension) Regional improvements needed at the x Road/Braddock Road intersection to improve levels of service County Comprehensive Plan recommends grade-separated interchange xtension of Shirley ate Road to Fairfax County Parkway (39)

40 R Utilities - Water New 24 Transmission Main Tank Replacement Improved pressure and service Capacity for additional development A S N xisting Tank New Tank Concept (40)

41 R Utilities - Sanitary ast Campus gravity West Campus pump station No anticipated significant challenges Fairfax County Sewer Map ast Campus City of Fairfax Sewer Shed to West Campus Pump Station A S N (41)

42 Slopes R A S N nvironmental- Soils Pockets of steep slopes Soils common to region Clay and silty sand No recognized environmental hazards or contaminants No significant challenges to development (42) Soils (B and D)

43 R A S N nvironmental Potential Wetlands Wetlands Resource Protection Areas (RPAs) (43)

44 R Stormwater Three outfalls xisting facilities No significant challenges to development A S N xisting Drainage Areas (44)

45 Next Steps West Campus Master Plan Phase 1- Stakeholder Information athering Phase 2- Concept Ideation Phase 3- Concept Refinement Flexible framework plan adaptable over time rderly development of the district (phasing) Street grids, land uses Transportation/utilities/landscape Basic design guidelines Cost estimates Renderings CMPLT BY JUN 30 (45)

46 R West Campus 216 Acres A S N (46) R MASN UNIVRSITY FFIC F TH SNIR VIC PRSIDNT 46

47 R A S N (47) West Campus Planning Vision: eorge Mason University recognizes the potential for new University development on its Fairfax West Campus. Desire is to develop an Innovation District that will offer opportunities for public-private development, research collaboration, innovative funding streams, attractive public open space, and University amenities. Recommendations & Timeline: A year vision Identify possible partners Develop Administration & Management Structure Campus Programming Budgeting & ntitlements Infrastructure Planning Community Private Sector I overnment Fairfax City Fairfax County Commonwealth of Virginia eorge Mason University Next Steps: Capacity Study Review Market Analysis / Proforma Master Planning Study

48 May 18 Commencement July Annual Planning Conference July 27 BV Annual Meeting 2018 R MASN UNIVRSITY 48

49 nergy and persistence alter all things. Benjamin Franklin