DRAFT. FY 2016 Operating Budget Development Notable General Fund Budget Assumptions and Changes Scenario A

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1 FY 216 Operating Development Notable General Fund Assumptions and Changes Scenario A Revenues Change * 1 Across-the-board 3% tuition rate increase, Regular Session 6,67,7 2 Across the board 3% tuition rate increase, Summer Session 567, 3 Change in debt service (434,541) 4 Reduction in interest income (one-time increase in FY ) (1,,) 5 Other Revenues (44,264) Revenues Subtotal 5,695,895 Expenditures Change * 1 Increase in health insurance rates July-December 215: 7% increase 97, January-December 216: 1% increase 1,43, 2 Increase in Retirement, Social Security, and other fringe benefits 497, % Increase to central university Financial Aid Scholarships 973, 4 5.% increase in expected utility costs 1,147,92 5 State Fire and Tornado Premium increase 172,857 6 Continuing Annual Requirements (CAR) 533,5 7 Faculty promotions 5, 8 Staff promotions 25, 9 Debt service (312,41) 1 Other Expenditures 452,9 Expenditures Subtotal 6,614,727 Surplus/(Deficit) (918,832) * Excludes expenditure items offset by revenues. 1 of 11

2 General Fund Summary - Scenario A FY 214 FY 215 Scenario A FY 216 Changes Pct (%) Projected General Fund Revenue Tuition and Fees Total Tuition 25,123,26 264,846,1 7,365, % 272,211,378 Total Fees 2,91,94 23,337,2.% 23,337,2 Total Tuition and Fees 271,25,2 288,183,3 7,365, % 295,548,578 State Appropriation 164,186,3 139,896,9 1,339,4 1.% 141,236,3 Other Revenue 31,176,4 41,318,3 (1,626,139) 3.9% 39,692,161 Auxiliary Enterprises 16,238,9 14,655,9 (34,888).2% 14,621,12 Hospital Related Revenue 13,86,9 13,86,9.% 13,86,9 Total Projected General Fund Revenue 496,487,7 497,915,3 7,43, % 54,958,951 Projected General Fund Expenditures Fixed Costs Salary 254,76, ,51,39.% 262,51,39 Fringe Benefits 65,932,382 7,34,16 3,147, % 73,181,525 Physical Facilities (utilities) 21,849,367 22,941,835 1,147,92 5.% 24,88,927 Total Fixed Costs 342,542,39 355,486,33 4,294, % 359,78,841 Current Expenses 1 Supplies and Operating 91,384,643 8,15,175 2,2, % 82,17,466 Scholarships and Financial Aid 51,37,25 53,424,65 1,38,4 1.9% 54,463,5 Departmental Credits (35,694,793) (34,759,194).% (34,759,194) Equipment 26,24,224 22,45,568.% 22,45,568 Other Current Expenses 2,978,382 21,72,816 (1,684).% 21,71,132 Total Current Expenses 153,945, ,428,97 3,39,7 2.1% 145,467,977 CAR Salary and Fringe Changes (121,35) (121,35) Faculty promotions 5, 5, Staff promotions 25, 25, Total Projected General Fund Expenditures 496,487,7 497,915,3 7,962, % 55,877,782 Surplus / (Deficit) (918,831).2% (918,831) 1 Includes operating expenses for CAR changes and for expenditures that are offset by revenues 2 of 11

3 Projected General Fund Revenues - Scenario A FY 214 FY 215 Scenario A Changes Pct (%) FY 216 Tuition and Fees Regular Session Tuition Summer Session Tuition Continuing Education Distance Education Special Instructional Programs 21,63,4 18,41,4 3,381,6 15,299,76 2,797,1 22,255,8 18,9,5 3,732,7 17,768,2 4,188,9 6,798, , 3.1% 3.%.%.%.% 227,54,78 19,467,5 3,732,7 17,768,2 4,188,9 Subtotal Tuition 25,123,26 264,846,1 7,365, % 272,211,378 Fees Mandatory Student Fees Miscellaneous Fees Course & Unit Based Fees Course & Laboratory Fees 9,573,9 5,89,74 4,992,5 444,8 9,743,1 7,854,7 5,25, 489,4.%.%.%.% 9,743,1 7,854,7 5,25, 489,4 Subtotal Fees 2,91,94 23,337,2.% 23,337,2 Total Tuition & Fees 271,25,2 288,183,3 7,365, % 295,548,578 State Appropriation General Appropriation Hospital - QCCT E&G Debt Service 141,194,8 18,243,6 3,927,9 139,76,9 1,339,4.%.%.% 139,76,9 1,339,4 Subtotal Base Appropriation 163,366,3 139,76,9 1,339,4 1.% 14,416,3 Other State Funds Equine Industry Program Equine Trust Program KY Partners Pollution Prevention Program Subtotal Other State Funds Total State Appropriation 4, 6, 36, 4, 6, 36,.%.%.% 4, 6, 36, 82, 82,.% 82, 164,186,3 139,896,9 1,339,4 1.% 141,236,3 3 of 11

4 Projected General Fund Revenues - Scenario A FY 214 FY 215 Scenario A FY 216 Changes Pct (%) Other Revenue Transfers from Affiliated Corporations Series A-27: General Receipts 2,526,2 2,527,7.% 2,527,7 Series A-28: General Receipts 4,92,3 4,92,3.% 4,92,3 Series A and B-21: General Receipts 885, 885,.% 885, Series N-Research Foundation 1,131,2 1,133,1.% 1,133,1 Debt Service Reserve 2,.% 2, Annual Transfer from ULH, Inc. 2,.% Transfers from UofL Foundation 2,, 4,1,.% 4,1, Retirement Fee Revenue 48,2.% 48,2 Subtotal Transfers from Affiliated Corporations 1,834,7 13,418,3.% 13,418,3 Indirect Cost Transfers 11,632,1 12,232,1.% 12,232,1 Interest Income (and Sinking Fund Reserve) 3,517,8 6,291,744 (2,773,941) 44.1% 3,517,83 Sales & Services of Educational Activities 712,4 786,6.% 786,6 Organized Activities Related to Instruction 1,133,7 1,14,7.% 1,14,7 Other (includes Expenditures Offset by Revenue 3,345,7 7,448,856 1,147, % 8,596,658 Total Other Revenue 31,176,4 41,318,3 (1,626,139) 3.9% 39,692,161 Auxiliaries Auxiliary Enterprises 7,843,6 6,373,2 (34,888).5% 6,338,312 Service Centers 1,572,2 795,8.% 795,8 University Housing 6,823,1 7,486,9.% 7,486,9 Subtotal Auxiliaries 16,238,9 14,655,9 (34,888).2% 14,621,12 Hospital Related Revenue 13,86,9 13,86,9.% 13,86,9 Total Projected Revenue 496,487,7 497,915,3 7,43, % 54,958,951 4 of 11

5 Projected General Fund Expenditures - Scenario A FY 214 FY 215 Scenario A Changes Pct (%) FY 216 Personnel Services Salary Faculty Professional Classified Student Administrators Other 134,11,24 65,847,616 34,82,872 12,524,125 11,378,695 4,586, ,26,482 68,494,273 35,162,829 13,252,932 11,959,71 4,477,765.%.%.%.%.%.% 137,26,482 68,494,273 35,162,829 13,252,932 11,959,71 4,477,765 Salary before Adjustments 263,241,419 27,67,982.% 27,67,982 CAR and EOBR Salary Adjustments (113,154) (113,154) Faculty Promotion Fund salary 357,5 357,5 Staff Promotion Fund salary 178,75 178,75 Subtotal Salary 263,241,419 27,67, ,96.2% 271,31,78 Fringe Benefits Health Insurance (includes ACA expansion) 26,44,64 27,621,35 2,65, 9.6% 3,271,35 Retirement Benefit 2,441,292 21,432,58 3, 1.4% 21,732,58 FICA 19,137,228 2,338,911 1,.5% 2,438,911 Other Fringe 8,394,386 8,739,694 97, % 8,837,113 Fringe before Adjustments 74,413,51 78,131,698 3,147,419 4.% 81,279,117 CAR and EOBR Fringe Adjustments (7,881) (7,881) Faculty Promotion Fund Fringes 142,5 142,5 Staff Promotion Fund Fringes 71,25 71,25 Subtotal Fringe 74,413,51 78,131,698 3,353, % 81,484,986 Salary and Fringe Credits (16,962,257) (16,195,185).% (16,195,185) Total Personnel Services 32,692, ,544,495 3,776, % 336,32,879 5 of 11

6 Projected General Fund Expenditures - Scenario A FY 214 FY 215 Scenario A Changes Pct (%) FY 216 Current Expenses Supplies and Operating (primarily EOBR) 91,384,643 8,15,175 2,2, % 82,17,466 Scholarships and Financial Aid 51,37,25 53,424,65 1,38,4 1.9% 54,463,5 Departmental Credits (35,694,793) (34,759,194).% (34,759,194) Equipment 26,24,224 22,45,568.% 22,45,568 Other (Debt Service, IT, Maintenance, Travel) 2,978,382 21,72,816 (1,684).% 21,71,132 Total Current Expenses 153,945, ,428,97 3,39,7 2.1% 145,467,977 Physical Facilities Electricity Steam/Chilled Water Natural Gas Water Utilities Total Physical Facilities Total Projected Expense 9,681,58 5,44,255 2,91,11 2,684,262 1,142,169 1,233,51 5,573,425 3,195,993 2,796,738 1,142, , , ,8 139,837 57,18 5.% 5.% 5.% 5.% 5.% 1,745,186 5,852,96 3,355,793 2,936,575 1,199,277 21,849,367 22,941,835 1,147,92 5.% 24,88, ,487,7 497,915,3 7,962, % 55,877,782 6 of 11

7 Support Materials to Develop Projected Revenues and Expenditures Debt Service - Scenario A FY 214 FY 215 Scenario A FY 216 Changes Pct (%) Debt Service 27 Series A General Receipts Bonds 2,981,2 2,983, (1,).% 2,982, 28 Series A General Receipts Bonds 6,456,825 6,456,325 3,9.1% 6,46, Series A and B General Receipts Bonds 2,733,244 2,732,18 (1,56).1% 2,73, Series A General Receipts - SRC 2,643,325 2,643,15 (2,5).1% 2,64, Series A General Receipts Bonds Consol Educ Bldg Rev Bonds (Series M) 1,717,799 1,725,249 (5,).3% 1,72,249 University portion 88.5% 4,178,573 2,24,616 (268,487) 13.3% 1,756,129 Consol Educ Bldg Rev Bonds (Series M) Parking portion 11.5% 542, ,86 (34,888) 13.3% 228,198 Consol Educ Bldg Rev Bonds (Series P) 322,487 32,313 (2,56).8% 317,753 Revenue Refunding Bonds (Series E) - Housing 76% 27,655.% Revenue Refunding Bonds (Series E) - Miller Renovation+Shelby 24% 85,47.% Revenue Refunding Bonds (Series F) - Housing 968,459.% Total Debt Service 22,91,15 19,147,757 (312,41) 1.6% 18,835,716 7 of 11

8 Continuing Annual Requirements (CAR) - Scenario A Description Salary Fringe* Current Expense Total Total CAR Revisions 314,5 114, 15, 533,5 * Used 28.5% for Fringe Benefits 8 of 11

9 Expenditures Offset by Revenue (EOBR) - Scenario A Description Neonatal transfer to Hospital Program (KY One) Various other salaries Salary (456,24) 28,586 Fringe (13,28) 8,147 Current Expense Total (586,268) 36,733 Additional UMC rent National Scholars Program Various other current expenses 1,694,4 19,578 12,313 1,694,4 19,578 12,313 Total Adj to E&G Expenditures Offset By Revenue (427,654) (121,881) 1,897,291 1,347,756 * Used 28.5% for Fringe Benefits 9 of 11

10 University Wide Balancing Strategies - Scenario A 1. Institutional Financial Aid Amount Subtotal Institutional Financial Aid 2. Compensation and Benefits Subtotal Compensation and Benefits 3. Chargeback's to UofL Corporations Subtotal Chargeback's to UofL Corporations 4. Miscellaneous Cost Savings Subtotal Miscellaneous Cost Savings Total University-Wide Balancing Strategies 1 of 11

11 Strategic Initiatives - Scenario A Amount Student Initiatives Financial Aid Programs Financial Aid 3% (centrally funded scholarships) 973, Additional Merit-based Scholarships Additional Need-based Scholarships Subtotal Student Initiatives 973, Faculty and Staff Initiatives Retirement base budget increase 3, FICA base budget increase 1, Other fringe benefits base budget increase 97,419 Health Insurance Increase (7% July-December 215) 97, Health Insurance Increase (1% January to June 216) 1,43, Affordable Care Act (required expanded health insurance coverage to workers) 25, Faculty Promotions Fund 5, Staff Reclassification / Promotion Fund 25, Subtotal Faculty and Staff Initiatives Research Initiatives <Research Initiative> <Research Initiative> Subtotal Research Initiatives 3,897,419 Total Strategic Initiatives 4,87, of 11