George Mason University. Board of Visitors. Finance and Land Use Committee. October 12, Office of the Senior Vice President

Transcription

1 George Mason University Board of Visitors Finance and Land Use Committee ctober 12, 2017 ffice of the Senior Vice President

2 Agenda I. Call to rder II. Approval of Minutes for May 11, 2017 III. New Business A. Financial and perational verview B. State Six Year perational Plan IV. Capital Matters A. Land Use Certification B. Robinson Hall verview and Schematic Design Approval C. ther Capital Budget Issues i. IABR Third Floor Fit-ut/Clean Room ii. Bull Run Hall IIIB iii. Utilities Infrastructure D. 9d Debt Resolution - Utility Infrastructure Project V. Adjournment GRG MASN UNIVRSITY 2

3 New Rankings! Times Higher ducation Young University Rankings of 200 colleges and universities worldwide. Most Innovative Schools by U.S. News Best Colleges of 97 institutions in a category U.S. News calls A+ Schools for B Students where spirit and hard work make all the difference. Best 4-Year College for Adult Learners, Washington Monthly 2018 U.S. News & World Report top-ranked institution in Virginia for campus diversity, tied for 22nd nationally. GRG MASN UNIVRSITY 3

4 G R G Who s Going to School at MASN? UNDRGRADUATS FULL-TIM 70% 69% IN-STAT 80% A S N Fall 2017 nrolled Student Population by Headcount: ~36,000 GRG MASN UNIVRSITY 4

5 Fall 2017 nrollment Update Total nrollment Total Undergraduate nrollment 36,247 Up 3.5% over last year to date 25,351 Up 5.1% over last year to date ut of State In State ut of State In State 7,254 28, % 3.6% 3,873 21, % 5.2% GRG MASN UNIVRSITY 5

6 New Business The Financial Framework GRG MASN UNIVRSITY 6

7 MASN INITIATIVS - UPDATS Mason Incentive Model Tuition Strategy Plan Capital Matters West Campus Development (December BV meeting) GRG MASN UNIVRSITY 7

8 Mason Incentive Model FY 2016: Launched MIM to run in parallel with Incremental Budget FY 2017: Implemented Incentive Base Budget Model Positive Results Growth in Fund Balances Next Steps Multidisciplinary and Indirect Committees Continued meetings with Deans and Assistant Deans Unit / Central nd of Fiscal Year Comprehensive Communication Plan Central / Unit Unit Two Main Levers Increase Revenue Decrease xpenses Model populated with actual revenue and expenses If revenue target exceeded, college shares gain with central If target missed, shortfall covered with unit fund balance nrollment Goals GRG MASN UNIVRSITY Revenue targets set for each college If college exceeds revenue target, college shares in the gain with central 8

9 FY 2019 Tuition Strategy Update Major Components: o Formulate model and assess impacts o Concurrent tuition strategy for all other returning students o Review and rationalize student fee structures o Review billing system and consider upgrades September, 2017 ctober November December stablish internal working group, initiate search for consultant Set-up university-wide working committee, hire consultant Begin drafting tuition strategy model Publish first-draft of tuition strategy model January through February, 2018 March May Finalize tuition policy model, draft communications campaign Communicate strategy publicly, review for BV Prepare for BV approval at May 3 meeting GRG MASN UNIVRSITY 9

10 Long Term Financial Shift from Taxpayer to Student % State Funded % % 70% 60% 50% 67% George Mason University General Fund vs. Tuition and ther as a Percent of the &G Budget State Appropriations Tuition & ther 75% 57% 40% 30% 33% % 10% 25% 25% 0% GRG MASN UNIVRSITY 10

11 Internal & xternal Pressures on Mason Federal & State Policy HS Graduates Disinvestment Strategic Plan Increased Diversity High Cost of Living nrollment Growth Mix Infrastructure Needs GRG MASN UNIVRSITY 11

12 FY 2018 RVNU BUDGT $1.0B All ther Activities, 25% Community & User Service Fee $84.3 Sponsored Research $104.7 Philanthropic Activities $60.0 perating $131.4 Financial Aid $22.6 VA State Funding, 20% Capital Improvements $48.9 Capital Room & Board $71.4 Mason Capital Funds $18.8 Mandatory Student Services & Activity Fees $91.5 Tuition $380.7 nrollment Related Revenue, 54% pie chart $ in millions GRG MASN UNIVRSITY 12

13 FY 2018 XPNS BUDGT $1.0B All ther Activities, 23% Community & User Service (Non-&G) $65.6 Research Contracts and Grants $104.7 Foundation Support for Mason $60.0 nrollment Related, 71% Capital, 6% Capital Improvements $63.3 ducational & General $535.2 Financial Aid $22.6 Room & Board $71.4 Student Services & Activity Fees $91.5 pie chart $ in millions GRG MASN UNIVRSITY 13

14 Six Year perating Plan Provide Affordable Access for All Students Support Salary Compensation Increases nrollment Growth & Degree Awards for VA Residents Multidisciplinary Institutes GRG MASN UNIVRSITY 14

15 G R G A S N Provide Affordable Access for All Students Mason Priority 1 Virginia Plan Goal 1 Strategy 1: Mason must make available additional student aid resources at both the undergraduate and graduate level. Biennium Request: $4M General Fund, $1M Nongeneral Fund GRG MASN UNIVRSITY 15

16 G R G A S N PRIRITY N: Increase Student Financial Aid % of Mason undergraduate, degree-seeking, in-state students receiving Pell Grants 35% 30% 25% 20% 15% 10% 5% 0% 18.7% 18.3% 30.3% 31.9% Mason Pell Grant Recipients $80 $70 $60 $50 $40 $30 $20 $10 $0 $2.4 Virginia Student Financial Aid Program Funds Needed to Achieve 100% of the Model $6.0 W&M UVA VT DU MASN VCU Total FY 2018 Need $25.5 $39.3 $47.5 Total FY 2018 Funded $49.9 GRG MASN UNIVRSITY dollars in millions SCHV perating Budget Amendments 16

17 G R G Support Salary Compensation Increases Mason Priority 2 Virginia Plan Goal 3, 4 Strategy 8: Mason must recognize high-quality faculty and staff by providing an annual merit based salary increase. A S N Biennium Request: $12.7M General Fund, $12.7M Nongeneral Fund

18 G R G $110,000 $90,000 Priority Two: Salary Compensation Increases $101,589 Mason Average Faculty Salary and Percentile Rank Among Peer Institutions - All Ranks $102,896 $94,716 $94,194 $105,948 $108,360 $95,508 $95, % 80% 60% 57% below Salary Average for classified staff 40% A S N $70, % 29.2% 22.6% 16.4% Fall 2013 Fall 2014 Fall 2015 Fall 2016 SCHV Conventional Goal (60th Percentile of Peers) Mason Average Salary Mason Salary Percentile Rank Percentile Rank 20% 0% Based on DHRM Position Titles, a majority of Mason employees are below the northern Virginia classified salary average GRG MASN UNIVRSITY 18

19 G R G A S N Priority Two: Salary Compensation Increases $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 dollars in millions Required % Increase in Funds Needed to Achieve 100% of Salary Goal $45.8M 24.4% $25.3 $ % 12.3% $ % 11.4% 8.8% $9.8 $10.1 VCU VT DU UVA W&M MASN Total Required Funding Required % Increase to Goal 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% GRG MASN UNIVRSITY SCHV perating Budget Amendments 19

20 G R G nrollment Growth & Degree Awards for VA Undergraduate and Graduate Residents Mason Priority 3 Virginia Plan Goal 1, 2, 4 Strategy 2: Mason seeks equitable resources for past enrollment growth. A S N Biennium Request: $10M General Fund, $6M Nongeneral Fund GRG MASN UNIVRSITY FFIC F TH SNIR VIC PRSIDNT 20

21 G R G A S N Priority Three: quitable Resources for Past Growth nrollment Growth, Fall Student Growth (Head Count) 5,000 4,000 3,000 2,000 1, ,000-2,000-1, GRG MASN UNIVRSITY enrolled ~48% of growth! ,236 2,431 2,816 4,475 Virginia Public Institutions of Higher ducation GRG MASN UNIVRSITY 21

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

23 G R G Multidisciplinary Institutes Mason Priority 4 Virginia Plan Goal 3, 4 Strategy 11: To promote innovation and job creation, Mason will establish additional multidisciplinary institutes. A S N Biennium Request: $2.75M General Fund, $1.25M Nongeneral Fund GRG MASN UNIVRSITY FFIC F TH SNIR VIC PRSIDNT 23

24 G R G Priority 4: Multidisciplinary Institutes The Institute for Biomedical Innovation (IBI) will continue to focus on driving advances in technologies and interventions designed to improve the health and wellbeing of the citizens of the Commonwealth and beyond. A S N The University will serve as a founding member of the Global Genomics and Bioinformatics Research Institute (GGBRI), in partnership with the University of Virginia and the Inova Health System. The institute will offer cutting-edge translational research and training in domains such as proteomics, systems biology, bioengineering, bioinformatics, and related public policy. GRG MASN UNIVRSITY 24

25 FY 2019 Mason Budget Requests to Commonwealth Provide Affordable Access for All Students Additional student aid for both undergraduate and graduate students. Support Salary Compensation Increases Annual salary increases for faculty and staff. nrollment Growth & Degree Awards for VA undergraduate and graduate residents Provide equitable resources for past enrollment growth. Multidisciplinary Institutes Make available funds to establish additional multidisciplinary institutes. GRG MASN UNIVRSITY 25

26 G R G BARD RCMMNDATIN The Finance & Land Use Committee recommends approval by the Board of Visitors of the University s 2017 Six-Year Plan. A S N MTIN: SCND:

27 Capital Matters Land Use Certification Schematic Design Approval Robinson Capital Budget Matters: Modification of Project Scope IABR, Utilities Infrastructure and Bull Run IIIB Debt Issuance Utility Infrastructure GRG MASN UNIVRSITY 27

28 Land Use Certification 2017 Virginia Code requires agencies and institutions to submit a Land Use Plan annually for all Commonwealth/University-owned land: Principal information desired by Department of General Services is last column identifying what land the Commonwealth may be able to surplus. The significant change since last year s report is the addition of the Potomac Science Center Campus. Additionally there has been one easement added to the Main Campus at Fairfax. GRG MASN UNIVRSITY 28

29 Robinson Hall Replacement Project Schematic Design - Approval Area: 240,887 GSF Budget: $113,040,000 Schedule Design Complete: Fall 2018 Construction NTP: Fall 2018 ccupancy: Spring 2021 Harris Complete: Spring 2022 GRG MASN UNIVRSITY 29

30 Robinson Hall Replacement GRG MASN UNIVRSITY 30

31 IABR Third Floor Fit-ut Life Sciences Building Major Modification - Approval Major Modification Add Clean Room Increase Project Budget from $3.8M to $6.2M Modification financed with Mason Funds GRG MASN UNIVRSITY 31

32 Bull Run Hall IIIB Capital Budget Request Reauthorization - Approval Resubmitted Capital Budget Request riginal Authorization Biennium Changes in enrollment since % Increase Volgenau School of ngineering 14.3% Increase College of Science 2017 Program Changes liminate Library 30k gross square feet (gsf) Reduce ffice 30k gsf liminate Growth 15k gsf Increase Lab 75k gsf Budget 2012 Authorization $43.7M 2017 Request $67M GRG MASN UNIVRSITY 32

33 Improve Utility Distribution Infrastructure Fairfax Capital Budget Request Reauthorization - Approval Resubmitted Capital Budget Request Adjustment to the fund split between Agency (Mason) Funds and the Commonwealth Additional Scope GRG MASN UNIVRSITY 33

34 Utilities Infrastructure GRG MASN UNIVRSITY 34

35 Utilities Infrastructure GRG MASN UNIVRSITY 35

36 G R G A S N BARD RCMMNDATIN The Finance & Land Use Committee recommends approval by the Board of Visitors of the Capital Matters as described: 1) Land Use Certification 2) Robinson Hall Schematic Design Approval 3) IABR Third Floor Fit-ut Project Modification 4) Capital Budget Submission for Bull Run IIIB 5) Capital Budget Submission for Utilities Infrastructure MTIN: SCND: GRG MASN UNIVRSITY 36

37 Utilities Infrastructure Project Bond Issuance (9d) Utilities Distribution Infrastructure Project 9d Bond Resolution This Bond Financing issued through the Virginia College Building Authority (VCBA) is scheduled to close December VCBA will sell Revenue Bonds for the aggregate principal amount of $3.50M (plus financing costs) for the design phase of the project.

38 G R G A S N BARD RSLUTIN The Finance & Land Use Committee recommends approval by the Board of Visitors of the financing resolution as included in the Board Book that includes the following: 1. The University is hereby authorized to enter into the Loan Agreements and Promissory Notes with the Virginia College Building Authority (VCBA) for the aggregate principal amount of $3,500,000 for Utilities Distribution Infrastructure capital project. 2. The Senior Vice President for Administration and Finance is hereby authorized and directed to approve, execute and deliver all documents necessary to effectuate this Bond Financing through VCBA. MTIN: SCND: GRG MASN UNIVRSITY 38

39 Summary FINANCIAL INITIATIVS Tuition Pricing Strategy Student Billing System Budget Model Redesign, Next Phase Year Two of Tier 2.5 CAPITAL INITIATIVS Secure construction funding for Robinson Academic Building and Utility Infrastructure Plan and secure construction funding for IT Infrastructure Secure construction funding for Life Sciences Bull Run Addition Complete site survey for Fairfax: West Campus GRG MASN UNIVRSITY 39

40 WHAT S N TH HRIZN Peterson Hall 1 2 IT Network pen Spring 2018 Planning 3 Mason Global Center Classrooms 4 West Campus 5 CHIPTL!! GRG MASN UNIVRSITY 40

41 BARD F VISITRS Upcoming Meeting Schedule WDNSDAY December 13, 2017 THURSDAY March 1, 2018 THURSDAY May 3, 2018 Thursday - Friday July 26-27, 2018 Financial verview Governor s Budget Capital Update/West Campus Investment Policy Unaudited Financial Statements Room & Board Rates Commonwealth Budget Update Human Resources & Payroll Annual Report FY 2019 Financial verview perating Budget, Tuition & Fees Six Year Capital Plan Span of Control Audited Financial Statements FY 2018 & FY 2019 Financial verview Annual Planning Conference FY 2018 & FY 2019 Financial verview Winter Graduation: Thursday, December 21, aglebank Arena GRG MASN UNIVRSITY 41

42 Be kind whenever possible. IT IS ALWAYS PSSIBL. ~Dalai Lama~