Budget Update. Fiscal Year and

Transcription

1 Budget Update Fiscal Year and

2 PASSHE 2013/2014 E&G Appropria4on - Base and Performance Funding FY 2013/2014 Performance Funding System Wide: BU is 4 th out of 14 for E&G Base Appropriation BU is 6 th out of 14 for Performance Funding dollars received and 7 th for points alained

3 University Combined U/G % Change Diff Bloomsburg 9,993 10, % California 8,629 8,254 (375) - 4.3% Cheyney (6) - 0.6% Clarion 6,531 6,111 (420) - 6.4% East Stroudsburg 6,882 6,819 (63) - 0.9% Edinboro 7,530 7,273 (257) - 3.4% Indiana 15,210 14,477 (733) - 4.8% Kutztown 9,796 9,080 (716) - 7.3% Lock Haven 5,387 5,323 (64) - 1.2% Mansfield 3,163 3,001 (162) - 5.1% Millersville 8,299 8,244 (55) - 0.7% Shippensburg 7,845 7,635 (210) - 2.7% Slippery Rock 8,606 8,398 (208) - 2.4% West Chester 14,625 15, % Total Preliminary 113, ,848 (2,637) - 2.3% Source: Preliminary Enrollment Submission BU is the 3 rd largest of the PASSHE institutions and only one of two with a combined enrollment increase this year

4 BU enrollment increased by 177 (headcount) over last year influenced mostly by First- time/full- time Freshman and Summer/ Fall Freshman

5 PASSHE Key Challenges Unlikely return of State appropriation to former levels given current economic conditions in the Commonwealth Stagnant enrollment demographics/statewide high school seniors trending down Increased fixed costs in salaries/benefits (hospitalization, retirement, etc ) Funding for facilities renewal PASSHE institutions retrenching faculty, furloughing staff/ administrators, and eliminating programs Unfunded liabilities for post- retirement health benefits and pensions

6 Actual Current Year Request Year Budget Budget FY FY FY E&G Revenues Tuition $76,578,488 $79,411,635 $79,646,238 Fees 14,070,237 15,002,439 15,030,743 Total Tuition and Fees $90,648,725 $94,414,074 $94,676,981 State Appropriation- Base 30,002,570 30,148,443 30,148,443 State Appropriation- Performance Funding 3,522,485 2,846,116 2,846,116 All Other Revenue 4,354,329 4,218,438 4,218,438 Use of Carryforward Fund Balance (Unrestricted Net Asset Reduction Plan) (1,042,102) 4,774,111 1,546,045 Total Revenues $127,486,007 $136,401,182 $133,436,023 E&G Expenditures and Transfers Compensation Summary: Salaries & Wages $66,228,244 $71,445,460 $75,598,882 Benefits 27,830,736 33,090,642 37,018,819 Estimated Salary and Benefit Savings 0 (3,985,858) (4,897,852) Subtotal, Compensation $94,058,980 $100,550,244 $107,719,849 Services & Supplies 25,009,052 29,526,047 28,699,245 Capital Expenditures 1,830,736 4,558,926 3,202,270 Transfers 6,587,239 4,161,548 4,057,428 Total Expenditures and Transfers $127,486,007 $138,796,765 $143,678,792 Revenue/Source less Expenditures/Transfers $0 ($2,395,583) ($10,242,769)

7 Key Revenue Considera4ons Actual Current Year Request Year Budget Budget FY FY FY E&G Revenues Tuition $76,578,488 $79,411,635 $79,646,238 Fees 14,070,237 15,002,439 15,030,743 Total Tuition and Fees $90,648,725 $94,414,074 $94,676,981 FY 2013/2014 Tuition & Fees: Enrollment increase of 0.9% (annualized FTE) Approved tuition increase of 3% Academic Enhancement and BOG Technology Tuition fee increased 3% FY 2014/2015 (request year)tuition & Fees: Assumes enrollment increase of 0.3% (annualized FTE) Assumes no tuition increase - 0.0% No anticipated fee increases

8 Key Revenue Considera4ons Actual Current Year Request Year Budget Budget FY FY FY E&G Revenues State Appropriation- Base 30,002,570 30,148,443 30,148,443 State Appropriation- Performance Funding 3,522,485 2,846,116 2,846,116 FY 2013/2014 State Appropriation: Base - Allocation formula results in an increase of $146K over prior year Performance Funding Performance results in allocation decrease of ($676K) FY 2014/2015 (request year) State Appropriation : Assumes no change in base allocation Assumes no change in performance funding allocation

9 E&G Revenues Key Revenue Considera4ons FY 2013/2014 increase in total revenue from 2012/2013 Increases in tuition & fees and net reduction in state appropriation Spending plan for excess unrestricted net assets Actual Current Year Budget Request Year Budget FY FY FY Tuition $76,578,488 $79,411,635 $79,646,238 Fees 14,070,237 15,002,439 15,030,743 Total Tuition and Fees $90,648,725 $94,414,074 $94,676,981 State Appropriation- Base 30,002,570 30,148,443 30,148,443 State Appropriation- Performance Funding 3,522,485 2,846,116 2,846,116 All Other Revenue 4,354,329 4,218,438 4,218,438 Use of Carryforward Fund Balance (Unrestricted Net Asset Reduction Plan) (1,042,102) 4,774,111 1,546,045 Total Revenues $127,486,007 $136,401,182 $133,436,023 FY 2014/2015 (request year) Decrease in Revenue: Unrestricted Net Asset Reduction Plan - spending plan reduced significantly

10 FY 2013/2014 E&G Revenue Sources

11 Trends in E&G Revenue Sources

12 Key Expense & Transfer Considera4ons E&G Expenditures and Transfers Compensation Summary: Actual Current Year Budget Request Year Budget FY FY FY Salaries & Wages $66,228,244 $71,445,460 $75,598,882 Benefits 27,830,736 33,090,642 37,018,819 Estimated Salary and Benefit Savings 0 (3,985,858) (4,897,852) Subtotal, Compensation $94,058,980 $100,550,244 $107,719,849 FY 2013/2014 Salary, Wages, & Benefits: Overall increase from prior year of $6.5MM Mandatory salary and wage increases, hospitalization, and retirement increases Increased staffing of 21 new positions costing $1.9MM Faculty VRIP positions managed through overload 11 faculty positions frozen (no associated budget for the year) FY 2014/2015 (request year) Salary, Wages, & Benefits : $1.9MM in VRIP and prior year frozen positions projected to be filled Mandatory salary and wage increases, hospitalization, and retirement increases (see next chart)

13 Key Expense & Transfer Considera4ons FY Manadated Salary/Benefit Increases Highlights: Salaries Compounded Impact APSCUF 4.55%- 7.10% AFSCME 4.87% Nonrepresented 3.50% SCUPA 4.04% Coaches 4.16% SPFPA 0.38% OPEIU 3.48% Benefits % Increase Hospitalization 7.1%- 7.6% Supplemental Heath Care (Health and Welfare) 7.00% Annuitant Hospitalization: AFSCME 9.50% Faculty, Nonrep, SCUPA, Coaches 2.20% Retirement: SERS 32.20% PSERS 26.60%

14 Key Expense & Transfer Considera4ons FY 2013/2014 Expenses and Transfers: Services, Supplies & Utilities: Budget includes $2.2MM use of carry forward funds No reductions to base operating budgets Remaining increase alributed to costs associated with new programs and activities and contracted cost increases Offset by slight reduction in utilities decrease in coal and wood contracted cost Capital Expenditures: Includes $1.52MM use of carry forward funds No reductions to base capital budgets Remaining increase alributed ISIS hardware costs and anticipated increases in equipment purchases through academic enhancement fund Transfers: Includes $104K of carry forward funds $1.23MM for debt service Actual Current Year Budget Request Year Budget FY FY FY Services, Supplies & Utilities 25,009,052 29,526,047 28,699,245 Capital Expenditures 1,830,736 4,558,926 3,202,270 Transfers 6,587,239 4,161,548 4,057,428 $1.56MM for planned transfers to plant (capital infrastructure/annual renewal commitment, maintenance of plant contingency reserve, etc ) $1.0MM to fund capital project priorities

15 Key Expense & Transfer Considera4ons Actual Current Year Request Year Budget Budget FY FY FY Services, Supplies & Utilities 25,009,052 29,526,047 28,699,245 Capital Expenditures 1,830,736 4,558,926 3,202,270 Transfers 6,587,239 4,161,548 4,057,428 FY 2014/2015 Expenses and Transfers: Services, Supplies & Utilities: Budget includes $723K use of carry forward funds No reductions to base operating budgets Overall cost projected to remain consistent with 13/14 except for modest increase in utilities and lease obligation increase Capital Expenditures: Includes $376K use of carry forward funds No reductions to base capital budgets Overall cost projected to remain consistent with 13/14 except for anticipated cost reduction related to ISIS hardware Transfers: Overall cost projected to remain consistent with 13/14

16 FY E&G Expenditures

17 Summary Current Year and Request Year Budgets Actual Current Year Request Year Budget Budget FY FY FY E&G Revenues Tuition $76,578,488 $79,411,635 $79,646,238 Fees 14,070,237 15,002,439 15,030,743 Total Tuition and Fees $90,648,725 $94,414,074 $94,676,981 State Appropriation- Base 30,002,570 30,148,443 30,148,443 State Appropriation- Performance Funding 3,522,485 2,846,116 2,846,116 All Other Revenue 4,354,329 4,218,438 4,218,438 Use of Carryforward Fund Balance (Unrestricted Net Asset Reduction Plan) (1,042,102) 4,774,111 1,546,045 Total Revenues $127,486,007 $136,401,182 $133,436,023 E&G Expenditures and Transfers Compensation Summary: Salaries & Wages $66,228,244 $71,445,460 $75,598,882 Benefits 27,830,736 33,090,642 37,018,819 Estimated Salary and Benefit Savings 0 (3,985,858) (4,897,852) Subtotal, Compensation $94,058,980 $100,550,244 $107,719,849 Challenges Ahead Services & Supplies 25,009,052 29,526,047 28,699,245 Capital Expenditures 1,830,736 4,558,926 3,202,270 Transfers 6,587,239 4,161,548 4,057,428 Total Expenditures and Transfers $127,486,007 $138,796,765 $143,678,792 Revenue/Source less Expenditures/Transfers $0 ($2,395,583) ($10,242,769)

18 Bloomsburg Financial Challenges Impact 2015 Strategic Issue #2: Achieving Excellence While Ensuring Financial Sustainability FY 2013/2014 Budget Shortfall ($2.4MM): PASSHE s system wide shortfall for this year is over $50MM which can only be corrected going forward through changes to cost structure at the university level Bloomsburg was able to cover the $2.4MM funding gap with it s unrestricted net assets (savings) this year temporary solution not sustainable FY 2014/2015 (request year) Budget Shortfall ($10.2MM): Assumes no increase in appropriation and tuition No significant increase in enrollment Significant increases in salary increases, healthcare cost and retirement

19 Bloomsburg Financial Challenges FY 2014/2015 Deficit Analysis FY 2013/2014 Identified Funding Challenge ($4,272,718) Developing plans to address this immediately though evaluation of programs and service to reduce our cost structure and/or increase net revenue FY 2014/2015 Revenue Requirement with Current Cost Structure ($5,970,051) Total FY 2014/2015 Request Year Challenge ($10,242,769) Impact of Tuition Increases- Additional Revenue: 3% $ 2,382,349 4% $ 3,176,466 5% $ 3,970,582 6% $ 4,764,699 7% $ 5,558, % Needed to balance $ 5,955,879 8% $ 6,352,931 9% $ 7,147,048 FY 2014/2015 (request year) Budget Shortfall ($10.2MM): $4.22MM of the $10.2MM is continuation of FY 14 deficit ($2.4MM), funded VRIP ($827K) and funded frozen faculty position ($1.05MM) Balance of ($5.9MM) would require a 7.5% authorized tuition increase to cover likelihood = 0%

20 Unrestricted Net Assets Summary As of June 30, /30/13 - $36.16MM excess unrestricted net assets as defined by University Financial Health Indicators per PASSHE BOG Policy University Financial Health Majority, $26.08MM, resides in E&G plant fund for maintenance and repair work, multi-year capital projects, and reserves Spending plans for E&G excess unrestricted net asset balances obtained from President/VPs/ AVPs/Deans FY 13/14 Plan to expend $4.77MM plus $2.4MM to cover projected FY 13/14 shortfall; Total = 7.17MM FY 14/15 Plan to expend $1.55M Subject to change pending the results of ongoing strategic enrollment management efforts, master plan completion, and the evaluation of financial sustainability of university programs and services

21 Unrestricted Net Assets E&G Total Unrestricted Net Assets All Uses Designated for Educational & General Activities: Reserves Multi- Year/Strategic Planning Seed Money Cover Projected FY 13/14 Shortfall FY 2013 Residual Budget Carryforwards: President $ 50,000 $ 108,473 $ - $ - $ 158,473 Academic Affairs 377,641 1,185, ,746-1,899,304 Administration 299, , ,010 Student Affairs - 432, ,399 University Advancement 71,909 64, ,829 Total FY 2013 Residual Budget Carryforwards $ 799,442 $ 2,020,827 $ 335,746 $ - $ 3,156,015 Total Academic Enhancement $ 878,800 $ 2,987,267 $ - $ - $ 3,866,067 Technology Fee $ - $ 431,415 $ - $ - $ 431,415 FY 2014 BOG Waivers Increase $ - $ 172,146 $ - $ - $ 172,146 Central Scheduling System - 100, ,000 Balance FY 2014 E&G Budget ,395,582 2,395,582 Total Strategic Planning Initiatives $ - $ 272,146 $ - $ 2,395,582 $ 2,667,728 PEPSI Bonus- Trustee Scholarships Sustainability Initiatives $ - $ 269,079 $ - $ - $ 269,079 $ - $ 129,470 $ - $ - $ 129,470 Total Designated for Educational & General Activities $ 1,678,242 $ 6,110,204 $ 335,746 $ 2,395,582 $ 10,519,774 Designated for E&G Plant Activities: Unrestricted E&G Plant Funds $ 1,709,281 $ 24,371,288 $ - $ - $ 26,080,569 Total Designated for E&G Plant Activities $ 1,709,281 $ 24,371,288 $ - $ - $ 26,080,569 Grand Total $ 3,387,523 $ 30,481,492 $ 335,746 $ 2,395,582 $ 36,600,343

22 Unrestricted Net Assets E&G Plant Ac4vi4es Unrestricted Net Assets Designated for E&G Plant Activities Maintenance and Repair $ 489,777 Capital Projects: Replacement of Coal Boilers (Steam Plant Upgrade) $ 11,000,000 Relocate Phone Switch/Computing Backup 3,586, Acre Land Purchase 2,500,000 Early Learning Center 2,375,848 Off Campus Educational Delivery Site 1,837,337 Pedestrian Bridge 851,953 Magee Center Demolition 262,321 Electrical Distribution System 220,432 Update Master Plan 212,375 Office Renovations- MCHS 187,492 Carver Hall- Exterior Lighting, Sidewalk/Landscape Renovation 150,000 Nelson Fieldhouse- Replace Shower Floor 150,000 Athletic Field- Replace Artificial Turf (Design) 50,000 Boiler Feedwater Controls 50,000 Other 447,374 Total Capital Projects $ 23,881,511 Reserves: Contingency 1,517,914 Project Planning 7,300 Annual Renewal Reserve 184,067 Total Reserves $ 1,709,281 Total Designated for E&G Plant Activities $ 26,080,569