Budget Town Hall. May 27, 2014

Transcription

1 Budget Town Hall May 27, 2014

2 Review

3 All Funds Budget Dollars in 000's Education and General Designated Operations Service Departments Auxiliary Enterprises Restricted Funds Rev enue Student Tuition and Fees $ 1 94,861 $ 2,97 7 $ - $ 47,258 $ - $ 245,096 Gov ernment Resources & Allocation 58, ,409 Gift Grants and Contracts 8,989 2, , ,27 7 Inv estment/debt/debt Serv ice 3, ,665 Sales and Serv ices Rev enue 1,080 4, , ,300 Other Rev enue , ,532 Internal Sales 3, ,993 9, ,7 38 Rev enue Total $ 27 0,601 $ 9,984 $ 2,484 $ 101,814 $ 113,134 $ 498,017 Total Ex pense Instruction & Dept Research $ 1 45,1 26 $ 5,553 $ - $ - $ 61 $ 150,7 40 Research 5, , ,7 69 Public Serv ices 2,1 26 3, ,07 5 Academic Support 33, ,305 Student Serv ices 1 6, ,322 Aux iliary Serv ices 2, , ,063 Phy sical Plant Oper & Maintenance 33, ,298 Institutional Management & Suppor 44,1 66-2, ,940 Financial Aid ,298 51,290 Ex pense Total $ 282,227 $ 9,7 13 $ 2,805 $ 107,7 59 $ 106,298 $ 508,802 Net from Operations and Transfers $ (1 1,626) $ 27 1 $ (321) $ (5,945) $ 6,836 $ (10,7 85)

4 Budget Education and General Dollars in 000's Fiscal Y ear 2014 Change from Budget to Forecast Budget Forecast Dollars Percent Revenue Student Tuition and Fees $1 94,861 $1 97,1 54 $2,293 1% Gov ernment Resources & Allocations 58,625 60,506 1,881 3% Grant Indirect Cost Rebate 8,989 9, % Inv estment/debt/debt Serv ice 3,000 3, % Internal Sales 3,7 31 4, % Other Rev enue 1,395 1,299 (96) -7 % T otal Revenue $27 0,601 $27 5,7 7 2 $5,17 1 2% Expense Salaries & Wages 1 53, ,654 (3,1 48) -2% OPE (fringes) 7 5, ,334 (1,554) -2% Serv ice & Supplies (net of transfers) 52,537 55,41 2 2,87 5 5% T otal Ex pense $282,227 $280,400 ($1,827 ) -1% Net ($11,626) ($4,628) $6,998-60%

5 Budget Designated Operations Dollars in 000's Fiscal Y ear 2014 Change from Budget to Forecast Budget Forecast Dollars Percent Revenue Sales and Serv ices $4,052 $4,21 8 $1 66 4% Student Fees 2,97 7 2,51 0 (467 ) -1 6% Other Revenue 2,955 4,17 6 1,221 41% T otal Rev enue $9,984 $10,904 $920 9% Expense Salaries & Wages 3,307 3, % OPE (fringes) 1,261 1, % Serv ice & Supplies (net of transfers) 5,1 45 6,37 5 1,230 24% T otal Ex pense $9,7 13 $11,031 $1,318 14% Net $27 1 ($127 ) ($398) -147 %

6 Budget Service Centers Dollars in 000's Fiscal Y ear 2014 Change from Budget to Forecast Budget Forecast Dollars Percent Revenue Internal Sales $1,993 $1,623 ($37 0) -1 9% Sales and Serv ices (1 39) -28% T otal Rev enue $2,484 $1,97 5 ($509) -20% Expense Salaries & Wages (320) -33% OPE (fringes) (1 47 ) -33% Service & Supplies (net of transfers) 1,389 1, % T otal Expense $2,805 $2,359 ($446) -16% Net ($321) ($384) ($63) 20%

7 Budget Auxiliary Operations Dollars in 000's Fiscal Y ear 2014 Change from Budget to Forecast Budget Forecast Dollars Percent Revenue Student Fees $47,258 $42,1 00 ($5,1 58) -1 1% Sales and Serv ices 40,590 40, % Other Rev enue 1 3, ,7 03 (263) -2% T otal Rev enue $101,814 $96,7 36 ($5,07 8) -5% Expense Salaries & Wages 16,536 17, % OPE (fringes) 7,931 8, % Serv ice & Supplies (net of transfers) 83, ,045 (5,247 ) -6% T otal Ex pense $107,7 59 $103,490 ($4,269) -4% Net ($5,945) ($6,7 54) ($809) 14%

8 Development of the Fiscal Year Budget Proposal

9 PBB in FY 2015 University Performance Requirement A $15M budget rebalance Process Began 3 years ago with 5 year planning Strategic Enrollment Management (SEM) Faculty Senate Budget Committee Student Budget Advisory Committee PSU Board of Trustees

10 Balancing the Budget Measured and balanced approach: $5.7M budget reduction for FY 2014 Modest tuition increases Actions to close remaining gap: Actions Taken Maintain online fee $ 2.1 Unclassified/Unrepresented Pay Plan 2.1 Updated revenue forecast 1.5 Athletic Efficiencies 0.8 Eliminate debt placeholder 0.5 Hold inflation flat 0.5 Unit Budget Reductions Academic Units 5.4 Finance and Administration 2.0 President's Office 0.2 University Advancement 0.4 Enrollment and Student Affairs 0.1 Research and Strategic Partnerships 0.1 $7.5M $8.2M Revenue Supporter performance requirement Total Actions Taken $ 15.7

11 Balancing the Budget Academic Affairs Performance Requirement School/College/Unit Base Budget Change Forecasted Revenue Increase Combined Impact REVENUE GENERATORS University Studies ($97,742) $150,000 $247,742 Honors College 79, , ,974 College of Liberal Arts & Sciences (1,319,821) 289,653 1,609,474 School of Social Work (308,496) 329, ,865 College of the Arts (60,809) 400, ,809 Graduate School of Education (607,811) 220, ,634 Masseh College of Engineering & Computer Science 940,000 1,007,379 67,379 College of Urban & Public Affairs (593,799) 0 593,799 School of Business Administration (270,443) 434, ,454 School of Public Health 400,000 0 (400,000) Subtotal ($1,839,895) $3,031,235 $4,871,130 REVENUE SUPPORTERS Office of Academic Affairs ($170,232) 170,232 Academic Discretionary Investment Fund $250,000 (250,000) Office of International Affairs (113,515) 113,515 Library (500,000) 500,000 Subtotal ($533,747) $0 $533,747 Total ($2,373,642) $3,031,235 $5,404,877

12 Operating Budget Potential Issues Enrollment Growth Collective Bargaining Unknowns regarding shared services

13 Budget What if enrollment/revenue increase falls short? OAA Contingency plan Funds identified to fill any shortfall for FY15

14 Budget 5- Year Forecast (E&G) Dollars in 000's Biennium Biennium Biennium FY13 Actual FY14 FY15 FY16 FY17 Beginning Fund Balance $ 49,933 $ 35,036 $ 26,508 $ 23,515 $ 12,702 Revenues: Gross Tuition and Fees 213, , , , ,182 Tuition Remissions (15,527) -7.3% (16,835) -7.9% (17,300) -7.9% (17,300) -7.7% (17,300) -7.5% Net Tuition and Fees 197, , , , ,882 State General Fund (includes SELP) 56,243 60,506 66,001 63,804 66,025 Other (F&A recovery, interest, misc. income) 13,926 18,112 20,159 20,204 20,247 Total Revenues 267, , , , ,154 Expenditures: Personnel Services 213, , , , ,569 Operating Expenses & Net Transfers 61,784 55,412 55,487 57,241 59,250 Total Expenditures & Net Transfers 274, , , , ,819 Net from Operations and Transfers (7,160) (4,628) (2,882) (11,782) (13,665) Use of Fund Balance for one-time items (7,737) (3,900) (2,000) (1,000) (500) Estimated Unexpended Current Year Budget (Carryforward) 1,889 1,969 2,030 Change in Fund Balance (14,897) (8,528) (2,992) (10,813) (12,135) Change as a % of Expenditures -5.4% -3.0% -1.0% -3.8% -4.1% Ending Fund Balance 35,036 26,508 23,515 12, Fund Balance as % Operating Revenues 13.1% 9.6% 8.1% 4.4% 0.2%

15 Budget 5- Year Forecast (E&G) Dollars in 000's Biennium FY16 FY17 Revenues: Tuition Increases (UG Res 3.5%, UG Non Res 1%, G 3.5%) $ 4,880 $ 5,363 Change in % distribution of state appropriation (49%/51%) (2,197) 2,221 Increase on Other Revenues Change in Revenues $ 2,728 $ 7,627 Expenditures: Full Roll-up of Collective Bargaining 2,842 2,260 3% mid-year increase on all salaries 2,260 2,328 PEBB/PERS increase on all salaries* 4,772 2,913 Sub-total Salaries and Benefits 9,874 7,501 Inflation on Services and Supplies 1,668 1,714 Change in Academic Leases, Debt and Building Operations Change in Expenditures $ 11,628 $ 9,510 Change in Net from Operations $ (8,900) $ (1,883) FY 14 Net Operating from 5-year forecast $ (2,882) Change from above (8,900) FY 15 Net Operating from 5-year forecast (11,782) Change from above (1,883) FY 15 Net Operating from 5-year forecast (13,665)

16 Budget E&G Cash Balances and Expenditures

17 Budget E&G Fund Balance as a percent of Revenue

18 Operating Budget Total University Fiscal Year Budget Designated Service Auxiliary Restricted Total All Dollars in 000's E&G Operations Departments Enterprises Funds Funds Revenue Student Fees $ 202,639 $ 2,748 $ - $ 42,514 $ - $ 247,901 Government Resources & Allocations 66, ,974 Gift Grants and Contracts 9,505 2, , ,925 Grant Indirect Cost Rebate Internal Sales 5, ,105 6,539-14,311 Sales and Services Revenue - 3,731 1,039 42,677-47,447 Investment/Debt/Debt Service 2, ,629 Other Revenue 2, ,806-5,821 Total Revenue $ 288,799 $ 9,499 $ 3,144 $ 96,726 $ 116,840 $ 515,008 Expense Salaries & Wages 158,194 3,229 1,130 18,345 13, ,889 OPE (fringes) 78,000 1, ,687 6,798 95,300 Service & Supplies (net of transfers) 55,487 4,855 2,028 73,906 96, ,327 Total Expense $ 291,681 $ 9,422 $ 3,635 $ 100,938 $ 116,840 $ 522,516 Net $ (2,882) $ 77 $ (491) $ (4,212) $ - $ (7,508)

19 Budget Education & General (E&G) Dollars in 000's Change from FY 14 to FY15 Budget FY13 Actual FY14 Budget FY15 Budget Dollars Percent Revenue Student Tuition and Fees $ 197,667 $ 194,861 $ 202,639 $ 7,778 4% Government Resources & Allocations 56,243 58,625 66,001 7,376 13% Grant Indirect Cost Rebate 9,235 8,989 9, % Investment/Debt/Debt Service 3,063 3,000 2,980 (20) -1% Internal Sales 3,731 5,659 1,928 52% Other Revenue 1,629 1,395 2, % Total Revenue $ 267,837 $ 270,601 $ 288,799 $ 18,198 7% Expense Salaries & Wages 145, , ,194 1,452 1% OPE (fringes) 67,920 72,948 78,000 5,052 7% Service & Supplies (net of transfers) 61,786 52,537 55,487 2,950 6% Total Expense $ 274,996 $ 282,227 $ 291,681 $ 9,454 3% Net $ (7,159) $ (11,626) $ (2,882) $ 8,744-75%

20 Budget Designated Operations Dollars in 000's Change from FY 14 to FY15 Budget FY13 Actual FY14 Budget FY15 Budget Dollars Percent Revenue Sales and Services $ 4,221 $ 4,052 $ 3,695 $ (357) -9% Student Fees 3,078 2,977 2,748 (229) -8% Gifts, grants and contracts 2,330 2,239 2, % Investment/Debt/Debt Service % Internal Sales (330) -98% Other Revenue (15) -100% Total Revenue $ 10,234 $ 9,984 $ 9,463 $ (521) -5% Expense Salaries & Wages 2,459 3,307 3,194 (113) -3% OPE (fringes) 1,046 1,261 1, % Service & Supplies (net of transfers) 5,390 5,145 4,855 (290) -6% Total Expense $ 8,895 $ 9,713 $ 9,386 $ (327) -3% Net $ 1,339 $ 271 $ 77 $ (194) -72%

21 Budget Service Centers Dollars in 000's Change from FY 14 to FY15 Budget FY13 Actual FY14 Budget FY15 Budget Dollars Percent Revenue Internal Sales $ 6,527 $ 1,993 $ 2,105 $ 112 6% Sales and Services , % Total Revenue $ 7,413 $ 2,484 $ 3,144 $ % Expense Salaries & Wages 3, , % OPE (fringes) 1, % Service & Supplies (net of transfers) 2,767 1,390 2, % Total Expense $ 8,082 $ 2,805 $ 3,635 $ % Net $ (669) $ (321) $ (491) $ (170) 53%

22 Budget Auxiliary Operations Dollars in 000's Change from FY 14 to FY15 Budget FY13 Actual FY14 Budget FY15 Budget Dollars Percent Revenue Student Fees $ 46,623 $ 47,258 $ 42,514 $ (4,744) -10% Sales and Services 37,054 40,590 42,713 2,123 5% Internal Sales 8,810 9,676 6,539 (3,137) -32% Government Resources & Allocations % Investment/Debt/Debt Service (27) -11% Other Revenue 3,438 3,073 3, % Total Revenue $ 96,895 $ 101,814 $ 96,762 $ (5,052) -5% Expense Salaries & Wages 17,743 16,536 18,380 1,844 11% OPE (fringes) 7,523 7,931 8, % Service & Supplies (net of transfers) 76,554 83,292 73,906 (9,386) -11% Total Expense $ 101,820 $ 107,759 $ 100,974 $ (6,785) -6% Net $ (4,925) $ (5,945) $ (4,212) $ 1,733-29%

23 Budget Restricted Funds Dollars in 000's Change from FY 14 to FY15 Budget FY13 Actual FY14 Budget FY15 Budget Dollars Percent Revenue Gifts, Grants, & Contracts $ 119,832 $ 112,041 $ 116,840 $ 4,799 4% Government Resources & Allocations (811) -100% Other Revenue (282) -100% Total Revenue $120,340 $113,134 $116,840 $3,706 3% Expense Salaries & Wages 25,754 16,536 13,991 (2,545) -15% OPE (fringes) 10,040 7,931 6,798 (1,133) -14% Service & Supplies (net of transfers) 84,517 81,831 96,051 14,220 17% Total Expense $ 120,311 $ 106,298 $ 116,840 $ 10,542 10% Net $ 29 $ 6,836 $ - $ (6,836) -100%

24 Budget A Few Other Items University Place Hotel The Broadway Athletics

25 State Appropriation Request to the HECC

26 State Appropriation: The Ask The Request to the HECC Current service level Improvement in student outcomes Strategic initiatives

27 State Appropriation - CSL Current Service Level for the Biennium Salary and wage increases PERS increases PEBB increases Other fringe benefit increases Operations and maintenance of buildings Rentals and leases Utilities All other services and supplies Classroom and study space upgrades (deferred maintenance) Total Estimated Current Service Level $9.8M $4.3M $1.9M $0.8M $0.6M $0.7M $0.3M $1.5M $1.5M $21.4M

28 State Appropriation Funding CSL In its 5-year forecast PSU is carrying an assumed 3.5% resident undergraduate tuition increase for the biennia, which generates $8.4M towards covering CSL The state could buy-down this increase in addition to funding the remaining CSL costs

29 State Appropriation: Improving Student Outcomes Completion Rate Gap Initiative 5% Biennium request 10% Biennium request 25% Biennium request Bridge programs $526,000 $526,000 $1,124,000 Summer U and Math Boot Camps $250,000 Transfer Center $930,000 $930,000 $1,790,000 Flexible Degrees and Additional Faculty $5,000,000 $12,850,000 Advising, Analytics, and Course Redesign $1,790,000 $3,250,000 $6,500,000 Recruiting $512,000 $460,000 $986,000 Unmet Need $834,000 $4,000,000 Total $5,548,000 $11,000,000 $27,500,000 Student Impact 1,300 2,600 6,500

30 Strategic Initiatives Completion Rate Gap - $27.5 million over the biennium to help close the gap between current completion rates and Oregon s goal Information Technology Connectivity - $10 million over the biennium, to fund a second installment of upgrades to the technology connectivity linking Oregon s four research universities, their publicand private-sector partners, and business incubation facilities

31 Summary of Request State Appropriation Request Biennium Cost Biennium Appropriation Request Option 1 Option 2 Option 3 Option Biennium Estimated Current Base State Appropriation 1,2 $ $ $ $ Permanency of Current Biennium Tuition Buy-down Revised Base with Tuition Buy-down $ $ $ $ Additional Investment for Biennium: A. Current Service Level (see #2, below) B. Improving Student Outcomes (see #3, below) - (0%) 5.5 (5%) 11.0 (10%) 27.5 (25%) C. Strategic Initiatives (see #4 below) 1. Completion Rate Gap Information Technology Connectivity Total Additional State Appropriation Investment Request $ 58.9 $ 58.9 $ 58.9 $ State Appropriation with Additional Funding Request $ $ $ $ Includes estimate for level of State Appropriation. The HECC will determine actual level in July. 2 - Excludes tuition buy-down for

32 Capital Request Neuberger Extended Studies Building (XSB) The Broadway University Center Building (UCB)

33 Deeper Dive into Academic Affairs Budget and Budget Process

34 Principles (established by FSBC)» OAA reductions not across the board» Protect as much as possible activities that support student success and student services» Protect instruction, programs, and activities that support access to a rounded liberal arts education

35 » Consider impact of reductions on teaching, research, and service» Commit to invest in programs that have a high potential for increasing enrollment.» Avoid reductions that will have a negative enrollment/revenue impact

36 Process» Began in July 2012» Adopted budget balancing approach (a combination of reductions and revenue growth)» Initial planning target 8% balancing (budget reduction) + revenue growth= 8%

37 » FSBC school/college liaisons» Revised planning target in late Fall to 6% based on other institutional reductions (budget reduction) + revenue growth= 6%» Iterative school/college enrollment management planning» ALT input» President s ExCom input» Final budgets and revenue requirements set by Provost

38 In the context of PBB» OAA revenue supporter performance requirement: FY15 expenditure budget = Reductions from FY14 expenditure budget + efficiencies» OAA revenue generator performance requirement: FY15 expenditure budget= Reductions from FY14 expenditure budget + efficiencies + revenue enhancements Revenue requirement

39 PBB video

40 OAA FY 15 Budget FY 14 Expenditure Budget FY 15 Reductions *FY 15 Revenue Enhancement *FY 15 Revenue requirement *FY 15 Expenditure budget $ 162,876,060 $ (3,023,642) $ 3,031,235 $ 232,022,624 $ 171,712,724 reinvestment $650,000 Total ($2,373,642) *Additional minor adjustments are possible

41 Balancing the Budget Academic Affairs Performance Requirement School/College/Unit Base Budget Change Forecasted Revenue Increase Combined Impact REVENUE GENERATORS University Studies ($97,742) $150,000 $247,742 Honors College 79, , ,974 College of Liberal Arts & Sciences (1,319,821) 289,653 1,609,474 School of Social Work (308,496) 329, ,865 College of the Arts (60,809) 400, ,809 Graduate School of Education (607,811) 220, ,634 Masseh College of Engineering & Computer Science 940,000 1,007,379 67,379 College of Urban & Public Affairs (593,799) 0 593,799 School of Business Administration (270,443) 434, ,454 School of Public Health 400,000 0 (400,000) Subtotal ($1,839,895) $3,031,235 $4,871,130 REVENUE SUPPORTERS Office of Academic Affairs ($170,232) 170,232 Academic Discretionary Investment Fund $250,000 (250,000) Office of International Affairs (113,515) 113,515 Library (500,000) 500,000 Subtotal ($533,747) $0 $533,747 Total ($2,373,642) $3,031,235 $5,404,877

42 OAA Revenue Supporter Requirements UNIT REDUCTION* FY15 BUDGET* OAA $ (170,232) $ 3,762,564 OIA $ (113,515) $ 2,146,027 Library $ (500,000) $ 9,616,582 Total $ (783,747) $15,525,173 *Additional minor adjustments are possible Does not include investment fund and SPH initiative

43 OAA Revenue Generator Requirements *FY 15 Revenue Requirement *FY 15 Expenditure Budget UNST $ 13,043,917 $ 8,031,085 HON $ 1,431,359 $ 890,821 CLAS $ 105,658,147 $ 65,710,712 SSW $ 9,997,716 $ 6,806,762 COTA $ 17,125,987 $ 11,069,651 GSE $ 17,291,847 $ 13,079,788 MCECS $ 20,206,061 $ 17,203,734 CUPA $ 22,219,531 $ 16,045,810 SBA $ 25,048,059 $ 16,621,752 Subtotal Academic Units $ 232,022,624 $ 155,460,115 *Additional minor adjustments are possible Does not include investment fund and SPH initiative

44 Questions and Comments