FY2017 Budget Discussion Administrative Council Presentation April

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1 FY2017 Budget Discussion Administrative Council Presentation April Boise State University 1

2 General State Appropriations College and University Allocation BSU ISU UI LCSC Systemwide Total Bachelor Degree Graduates AY ,971 1,123 1, Degree Graduates (Bachelor's and Higher) AY ,688 1,707 2,483 n/a FTE Enrollment (Fall 2015 PSR-1 Student Enrollment) 15,433 9,993 9,384 2,728 FY16 Base General State Appropriation 84,747,800 69,054,400 81,548,300 14,862,200 4,965, ,177,700 Plus: Benefit Rate Increases 876, , , ,500 2,722,800 Risk Mgmt/Controller/Treasure Cost Allocation 413, , ,500 53,900 1,185,700 CEC 1,846,800 1,661,100 1,901, ,300 5,733,900 EWA 63,800 (1,116,000) (364,600) (81,600) (1,498,400) Line Items: EWA Restoration 1,116, ,600 81,600 1,562,200 CCI 962, , , ,700 1,967,000 Material Science 617, ,100 Cyber Security INL initiative 360, ,000 Health Sciences Expansion - Meridian Campus 580, ,600 Occupancy Costs / Rent 998, ,700 Safety, Security, and Compliance 71,500 71,500 UI Computer Science program 600, ,000 Total Increase in Base General Fund Appropriation 5,139,300 3,522,100 5,314, ,900-14,301,100 FY17 Base General State Appropriation $89,887,100 $ 72,576,500 $ 86,863,100 $ 15,787,100 $ 4,965,000 $ 269,478,800 Plus: One-time Funds Repair / Replacement Items 839, ,300 27th Payroll 2,369,900 2,144,700 2,357, ,700 7,287,700 CEC 27th Payroll 71,100 64,200 70,800 12, ,400 CCI 8,500 16,000 8,500 33,000 Health Sciences Expansion - Meridian Campus* 1,160,000 1,160,000 Safety, Security, and Compliance - Cyber Security INL initiative 640, ,000 UI Computer Science program 350, ,000 Total One Time General Fund Appropriation 3,081,000 3,377,400 2,794,200 1,275,800-10,528,400 Plus: Research Infrastructure Funds 200, ,000 Less: Transfer SLDS position to OSBE (100,700) (100,700) Total Increase FY2017 State Appropriation $92,968,100 $75,953,900 $89,657,300 $17,062,900 $5,064,300 $280,106,500 * Funded from the Economic Recovery Reserve Fund

3 General State Appropriations College and University Allocation (cont.) Permanent Building Fund: Major Capital Projects Fine Arts Building (Set A) $2,500,000 Alterations and Renewal (Set B) $2,340,000 Base Appropriation Analysis BSU ISU UI LCSC % increase in ongoing base 6.1% 5.1% 6.5% 6.2% FY17 Base funding per Bachelor's Degree $30,255 $64,627 $49,159 $29,344 FY17 Base funding per Graduate (Bachelor's and above) $24,373 $42,517 $34,983 n/a FY17 Base funding per FTE student $5,824 $7,263 $9,257 $5,787 Line Item Appropriation Analysis Total line items as a % of FY16 base 2.3% 2.7% 3.0% 2.9% Total General Fund Appropriation Analysis (increase over FY16 General Fund Base) % increase in total general state appropriations 8.6% 8.5% 8.6% 8.8% Increase per Bachelor's Degree $2,487 $5,318 $4,016 $2,556 Increase per Graduate (Bachelor's and above) $2,003 $3,498 $2,858 n/a Increase per FTE student $479 $598 $756 $504

4 $6, Final Budget Increase in State General Fund Appropriation by University Based on Original General Fund Appropriation $5,318 BSU $5,000 ISU UI $4,000 $4,016 $3,498 $3,000 $2,487 $2,858 $2,000 $2,003 $1,000 $479 $598 $756 $0 Increase per Bachelor's Degree Increase per Graduate (Bachelor's and above) Increase per FTE student

5 Base General Fund Appropriation per FTE Student UI $86.9M GSA; 9,384 FTE students ISU $72.6M GSA; 9,993 FTE students BSU $89.9M GSA; 15,433 FTE students $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000

6 Base General Fund Appropriation per Graduate (Bachelor's Degree and above) UI $86.9M GSA; 2,483 graduates $34,983 ISU $72.6M GSA; 1,707 graduates $42,517 BSU $89.9M GSA; 3,688 graduates $24,373 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000

7 FY2017 Annual Budget Process 2015 Boise State University 7

8 Financial Challenges New state funds are earmarked for specific purposes The might be opportunities to write less restrictive and more strategic line item requests to give us more flexibility and address strategic priorities Tuition rate increases continue to be limited MOAs have committed unidentified future funding Financial ratios need to improve Commitments and positions funded with one-time funds put pressure on the net income ratio since these expenditures are not covered by operating revenues 27 th payroll will put additional pressure on the net income and other ratios in FY17 Enrollment growth that generates central funds remains limited 2015 Boise State University 8

9 New FY17 State General Fund Allocations FY17 Budget Benefit Cost Increases (mandatory) $876,100 Risk Management Cost Increases (pass through) $363,200 Controller s Fee Increase (pass through) $49,900 CEC (earmarked) $1,917, th Payroll (one-time) 2,369,900 Complete College Idaho (BSU submitted priorities and restrictions) $962,400 Material Science / Engineering (BSU submitted priorities and restrictions) $617,100 Cybersecurity Lab (INIL request: $360,000 permanent, $640,000 one-time) $1,000,000 Total new earmarked state general fund allocations $8,156,500 Enrollment Workload Adjustment (discretionary) $63,800 Total increase in General State Appropriation for FY17 (overall ~ 8.6% increase) $8,220, Boise State University 9

10 FY17 Proposed FT and PT Budgeted Tuition Revenue* FY17 Budget Tuition revenue from change in budgeted enrollment growth $382,000 Tuition revenue from rate change $2,566,600 Total new tuition revenue $2,948,600 Uses of Funds Change in benefit costs (fund shift) $843,200 Inflationary adjustments library $34,400 CEC (fund shift) and faculty promotions $2,071,000 Total uses of new tuition revenue $2,948,600 * Proposed rate increase = 3.75%. Indications are that the SBOE likely won t approve any rate increase over 3.0% Boise State University 10

11 FY17 Proposed NR / Graduate / Summer FY17 Budget Central tuition revenue from summer $270,568 Tuition revenue from graduate $234,100 Tuition revenue from non-resident fee and WUE $805,500 Tuition revenue from overload fee $22,800 Total new fee revenue $1,332,968 Uses of Funds Increase in graduate assistant waivers $73,000 Utility increases $75,000 Estimated funding of FY17 MOA commitments - TBD $475,615 Held in reserve for investing in strategic priorities and improving financial ratios $709,353 Total uses of new fee revenue $1,332, Boise State University 11

12 Division FY16 Permanent Budget Perm. Budget as of 3/17/16 Academic Affairs & Library $116,711,757 Finance and Administration 23,341,919 Operations 11,926,053 President & Athletics 9,440,148 Student Affairs 8,212,230 Research 3,886,036 Advancement 2,238,947 Central accounts and operating reserves (< 1% of total)* 1,722,410 Committed central funds yet to be transferred 250,000 Total 177,729,500 * Includes for funding FMLA / extended sick leave backfill, classified staff over/under pool, accrued leave payouts from separation, retiree life insurance payments, affirmative action employee recruitment costs, etc. Best practice would suggest operating reserves at 3% - 5% depending on the financial stability of the university / State Boise State University 12

13 One-time Funds / Reserves Spending reserves in a given year may be okay with a good explanation; spending reserves in multiple years is a trend which can be viewed as a negative indicator for both the SBOE and rating agencies Current central one-time funds / reserves: $12.3 million as of 2/29/16 Given recent trends, one-time expenditures should come from current year permanent budget savings rather than funded from central reserves Salary and benefit savings from personnel is currently the largest source of central one-time funds Current SFR commitments: $2.8M in FY17; $2.2M in FY18, $1.9M in FY19 FY15 into FY16 departmental carryforwards: $17.7 million An increase in departmental carry forwards increases the university s overall reserves on the financial statements; a decrease reduces the university s overall reserves Once carry forwards are allocated, there is no control centrally whether departmental carry forwards will increase or decrease which is one of our financial risks (Bronco Budget 2.0 will look to address) Local / auxiliary fund balances Considered to be part of the university s overall reserves on the financial statements Use of local fund balances is also not controlled centrally which adds to financial risk (Bronco Budget 2.0 will look to partially address) Use of auxiliary fund balance is typically planned during the budget process and is used to maintain facilities 2015 Boise State University 13

14 Current MOA Commitments Estimated FY17 Permanent Estimated FY17 One-time Funds Future Permanent Commitments Future One-time Commitments CID 33,000 33,000 COAS 550, , ,495 COBE 374,463 COEN 378, ,141 PROV 97, ,230 Provost 210, ,000 SPS 30,152 81,974 VPRes 228, ,546 Grand Total $475,615 $1,659,445 $1,014,104 $1,301, Boise State University 14

15 Other Known Budget Issues Athletics Gender Equity and Institutional Support Insufficient permanent budget Funded through annual one-time transfers $500,000 of annual dining revenue budgeted in Student Affairs Dining auxiliary has moved to Campus Operations Additional items requiring one-time funds and/or permanent budget Occupancy costs for Alumni & Friends and City Center to be funded with one-time funds in FY17 and requested for FY18 Disability services permanent budget insufficient to cover necessary accommodations Alumni and Friends lease payments Emergency repairs and small projects Existing SFRs with monies still due 2015 Boise State University 15

16 Approach to FY17 Budget 1. Identify and prioritize investments in strategic priorities and budget issues 2. Monitor enrollments, revenues, and financial ratios 3. Allocate funds as they become available in FY17 based on the agreed upon priority order of investments in strategic priorities and budget issues 4. Needs not on the prioritized list of investments in strategic priorities or priorities that require funding prior to central funds being available to be funded through reallocation within the Division The majority of institutional funds are already allocated across Divisions Permanent budget transfers may be used to realign your FY17 budget 5. FY18 line item requests to the State to be based on investments that align with identified investments in strategic priorities and are considered to be a viable budget request 6. Any limited additional investment of central funds not on the priority list to be considered on an exception basis only 2015 Boise State University 16