University of New Orleans Cost Containment and Revitalization Committee Unrestricted Operating Budget Overview December 6, 2013 10:00a to 12:00p
Positive o Pi Principles i Despite this difficult situation, we have a bright future. The S/O part of the SWOT analysis is promising. Practical o However, first we have to accept the present reality and deal with the W/T aspect immediately. Paradigm shift o We live in a different world now and have a new operating model. Some old processes, behaviors and structures are counterproductive. Professional o A thoughtful approach is required. No room for personal animosity. Proactive o Habit One of Covey s Seven Habits of Highly Effective People.
FY2013 20142014 Projected Structural Deficit Unrestricted Revenue Projection as of October 7, 2013 $105,280,185 $106,000,000 $105,000,000 000 000 $104,000,000 $103,000,000 $102,000,000 000 000 Total Revenues $101,000,000 $100,000,000 $98,913,654 $99,000,000 $98,000,000 $97,000,000 $96,000,000 $95,000,000 Budgeted 2013 2014 Projected 2013 2014
FY2013 20142014 Realistic Revenue compared to a Realistic View of University s Spending Habits 115,000,000 111,499,180 110,000,000000 000 105,000,000 100,000,000 96,793,006 95,000,000 90,000,000 85,000,000 Projected Revenue 2013 2014 Projected Expenditures 2013 2014
Unrestricted Operating Budget (initial) FY2009 2010 2010 thru FY2013 2014 2014 $125,000,000 $120,000,000 $121,119,578 $122,669,203 $119,953,721 953 $115,000,000 $110,620,566 $110,000,000 Total Revenues $105,000,000 $105,280,185 185 $100,000,000 $95,000,000 2009 10 2010 11 2011 12 2012 13 2013 14 Between FY2009 10 and FY2013 14, 14 UNO s unrestricted operating budget was reduced by $15,839,293 (13%)
$112,000,000 Unrestricted Operating Budget Revenue FY2012 13 13 and FY2013 1414 Budget, Actual, Projected $110,620,566 $110,000,000 $108,000,000 $106,000,000 $105,280,185 $104,000,000 $102,922,935 $102,000,000 $100,000,000 $98,913,654 $98,000,000 $96,000,000 $94,000,000 $92,000,000 Budget 2012 13 Actual 2012 13 Budgeted 2013 2014 Projected 2013 2014
Revenue Budget
Unrestricted Budgeted Revenue FY2009 2010 2010 thru FY2013 2014 2014 By Source of Revenue $140,000,000 $120,000,000 $100,000,000 Budg get as of July 1st $80,000,000 $60,000,000, $40,000,000 $20,000,000 000 000 $0 2009 10 2010 11 2011 12 2012 13 2013 14 Self Generated Funds $55,898,840 $61,296,011 $72,277,400 $71,239,333 $72,566,669 State Funds $65,220,738 $61,373,192 $47,676,321 $39,381,233 $32,713,516 FY2013 14 State Funds include funding from Overcollections in the amount of $12,631,022
Unrestricted Budgeted Revenue By Source FY2009 2010 By Source FY2013 2014 General Fund Direct 38% General Fund Direct 17% General Fund Restoration Amount 0% Self Generated Funds 46% Self Generated Funds 69% Statutory Dedicated 14% Interagency Transfers ARRA 10% General Fund Restoration Amount 3% Statutory Dedicated 3% Interagency Transfers ARRA 0%
Adjustments to Revenue Between FY2012 2013 2013 and FY2013 20142014 Unrestricted Budget Approved Initial Budget Budget FY2012 13 Adjustments FY2013 14 State General Fund (Direct) 36,756,393 (19,189,715) 17,566,678 Self Generated 71,239,333 1,327,336 72,566,669 *Statutory Dedications 2,624,840 12,521,998 15,146,838 110,620,566 (5,340,381) 105,280,185 *Includes Overcollections of $12,631,022
Adjustments to Revenue Between FY2012 2013 2013 and FY2013 20142014 Unrestricted Budget FY2012 2013 Initial Budget 110,620,566 Mid Year Budget Reduction Made Permanent (948,120) State General Fund (18,241,595) Statutory Dedication Overcollections 12,631,022 Statutory Dedication SELF (109,024) Grad Act Tuition Increase 4,327,336 336 Self Generated (3,000,000) Total Adjustments (5,340,381) FY2013 2014 Approved Budget 105,280,185 Additional Adjustments Needed (6,366,531) FY2013 14 14 Projected Revenue 98,913,654
Budgeted vs. Actual Headcounts FY2008 09 09 thru FY2012 13 13 UNIVERSITY OF NEW ORLEANS Budgeted and Actual Headcounts for Fiscal Years 2009 2014 Undergraduate / Graduate FALL Compare Actual to Budget Headcount SPRING Compare Actual to Budget Headcount Fiscal Years Budgeted Headcounts *Actual Headcounts Increase (Decrease) Budgeted *Actual Headcounts Headcounts Increase (Decrease) 2008 09 11,774 11,180 (594) 10,867 10,320 (547) 2009 10 11,335 11,390 55 10,462 10,625 163 2010 11 11,656 10,996 (660) 10,893 10,222 (671) 2011 1212 11,250 10,606 (644) 10,380 9,612 (768) 2012 13 10,476 9,858 (618) 9,765 8,765 (1,000) Projected 2013 14 9,445 9,020 (425) 8,595 * Excludes non paying students
Expenditure Budget
Unrestricted Budgeted Expenditures FY2009 2010 2010 thru FY2013 2014 2014 By Function $60,000,000 $50,000,000 Instruction $40,000,000 Research Public Service Academic Support $30,000,000 Student Services Institutional Services Plant Operations/Maintenance $20,000,000 Scholarships/Fellowships Athletics $10,000,000 $0 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014
Unrestricted Budgeted Expenditures By Function FY2009 10 By Function FY2013 14 Plant Operations/ Maintenance 12% Scholarships/ Fellowships 10% Athletics 0% Instruction 41% Scholarships /Fellowships 10% Plant Operations/ Maintenance 11% Athletics 1% Instruction 37% Institutional Services 17% Student Services 5% Academic Support 12% Research 1% Public Service 2% Institutional Services 18% Student Services 6% Academic Support 11% Research 3% Public Service 3%
Unrestricted Budgeted Expenditures FY2009 2010 2010 thru FY2013 2014 2014 By Object $70,000,000 $60,000,000 Salaries $50,000,000, Other Compensation Related Benefits $40,000,000 $30,000,000 $20,000,000 Travel Operating Services Supplies Professional Services Other Charges General Acquisitions Library Acquisitions $10,000,000 $0 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 Fiscal Year
Unrestricted Budgeted Expenditures FY2009 2010 2010 thru FY2013 2014 2014 By Object $90,000,000 $80,000,000 000 000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 Salaries and Benefits $81,204,490 490 $83,742,072 $80,766,829 829 $75,317,156 156 $73,492,417 417 Other Expenditures $39,915,088 $38,927,131 $39,186,892 $35,303,406 $31,787,768
General Acquisitions 0.45% Unrestricted Budgeted Expenditures FY2013 2014 2014 By Object Library Acquisitions 1.16% 16% Professional Services 0.95% Supplies 2.40% Operating Services 9.02% Travel 0.21% Other Charges 16.01% Related Benefits 19.30% Salaries 46.07% 60 Other Charges Budgeted 2013 14 Scholarships $10,211,865 Athletics $1,340,000 Bad Debt Expense $300,000 Banking Services $279,000 Civil Service $35,751 Risk Management Insurance $4,008,104 UL System Allocation $293,259 External Audit Expense $145,735 Other $241,918 Total $16,855,632 Other Compensation 4.44%
Professional Services 0.95% Operating Services 9.02% General Acquisitions 0.45% Supplies 2.40% Travel 0.21% Unrestricted Budgeted Expenditures FY2013 2014 2014 By Object Library Acquisitions 1.16% 16% Budgeted Operating Services 2013 14 Facility Services $1,352,142 Johnson Controls $1,177,405 Other Charges Utilities (incl. restricted support 16.01% of $2,150,592) 592) $3,435,120 MBA & EMBA Programs $261,529 Related Benefits 19.30% Other Compensation 4.44% Salaries 46.07% 60 Lakefront Arena $256,350 Campus Mail $215,000 UCC $584,202 Communications, Marketing, and Public Relations $525,420 Enrollment Management and Student Affairs $490,344 CERM $325,000 Conference Services $129,800 Other $744,743 743 Total $9,497,055
Timeline o o PthF Path Forward Cost Containment recommendations forwarded to president no later than February 3 rd. Revitalization effort continuous. Sub-group formation for Cost Containment o o o o One: focus on non-personnel costs (recognize that potential amount and timing are problematic) Two: ancillary and auxiliary units (acknowledge overlap personnel) Three: personnel costs staff Four: personnel costs academic Revitalization ti efforts o o Academic program priorities identified Staff business process review and structural changes
Lagniappe
FY2013 2014 2014 Unrestricted Expenditure Budget % to Expenditure FY13 14 14 Budget Budget Fixed Costs (includes utilities) 32,098,055.00 30.49% Self Supporting 8,931,273.00, 8.48% Scholarships 10,211,865.00 9.70% Contingency 948,565.00 0.90% Attrition (1,128,000.00) 128 00) 1.07% 1 Utilities Support Indirect Cost (600,000.00) 0.57% Utilities Support Fuel Recovery Charge (2,150,592.00) 2.04% Eligible for Reduction 56,969,019.00 54.11% Total 105,280,185.00 100.00%
FY2013 2014 2014 Unrestricted Expenditure Budget Fixed Costs Unfunded Mandates Civil Service CPTP 35,751 External Audit Expense 145,735 Related Benefits 19,370,089 Risk Management Insurance 4,008,104 UL System Allocation 293,259 Unfunded Mandates 23,852,938 Other Fixed Costs Bad Debt Expense 300,000 Banking Services 279,000 Building Leases 80,000 Collection Services 53,000 Johnson Controls 1,177,405 Legal 40,000 Campus Mail 220,000 CERM 325,000 Utilities 5,585,712 National WWII Museum 140,000 Ogden Museum 45,000 Oh Other Fixed Costs 8,245,117 Total Fixed Costs 32,098,055
FY2013 2014 2014 Unrestricted Expenditure Budget Self Supporting Executive MBA Program 782,294 MBA Program 700,000 Summer 2,533,758 Conference Services 349,400 Lakefront Arena 3,088,163 Global UNO 821,050 Continuing Education 534,608 Facility Rental/Event Coord 122,000 Total Self Supporting 8,931,273
FY2013 2014 2014 Unrestricted Expenditure Budget Other Scholarships 10,211,865 Contingency 948,565 Attrition (1,128,000) Utilities Support Indirect Cost (600,000) Utilities Support Fuel Recovery Charge (2,150,592) Eligible for Reduction Salaries* 47,410,718 Eligible for Reduction Non Salaries 9,558,301 *Includes Student Wages, Grad Assts, Overtime, Transient Wages, etc.
Budget Increases/Decreases
$70,000,000 Budget Increases/Decreases By Object FY2009 10 vs. FY2013 1414 Budgeted Personnel $60,000,000 $60,170,304 19% $50,000,000 $48,498,216 $40,000,000 $30,000,000 000 000 23% $20,000,000 $16,556,531 $20,321,651 $10,000,000 $4,477,655 $4,672,550 $0 Salaries Other Compensation Related Benefits 2009 2010 2013 2014
$14,000,000 $12,615,474 Budget Increases/Decreases By Object FY2009 10 vs. FY2013 1414 Budgeted Non Personnel (Except Other Charges) $12,000,000 $10,000,000 000 000 $9,497,055 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 $884,958 $216,843 $3,032,875 $2,528,243 $1,387,513 $999,807 Travel Operating Services Supplies Professional Services $996,699 $470,307 General Acquisitions $1,717,459 $1,219,881 Library Acquisitions 2009 2010 2013 2014
Budget Increases/Decreases By Object FY2009 10 vs. FY2013 1414 Budgeted Other Charges $19,500,000, $19,280,110 110 $19,000,000 13% $18,500,000 $18,000,000 $17,500,000 000 $17,000,000 $16,855,632 $16,500,000 000 $16,000,000 $15,500,000 500 000 Other Charges 2009 2010 2013 2014
FY2013 2014 2014 Auxiliary Analysis Auxiliary Services FY 2013 14 Projection Summary as of 10/30/13 Unit Beginning Fund Balance Budgeted Revenue Projected Revenues Budgeted Expenditure Projected Expenditures Projected Auxiliary Management Overhead Allocations Projected Debt Services Allocations Projected Total Expenditures Revenues Less Expenditures Projected Ending Fund Balance Auxiliary Services 776,715715 Athletics* (4,804,137) 5,018,898 4,852,476 5,018,898 4,855,549 4,855,549 (3,073) (4,807,210) Bookstore 250,000 450,000 450,000 15,000 40,000 51,093 35,571 126,663 323,337 573,337 Bookstore (old) 22,697 22,697 (22,697) (22,697) Pontchartrain Hall** 2,450,801 3,833,172 3,871,785 3,674,969 3,760,903 63,866 23,998 3,848,767 23,018 2,473,819 Lafitte Village 888,029 666,365 848,320 396,113 396,113 25,546 7,915 429,574 418,746 1,306,775 ARA Meal Plans 0 2,104,550 2,214,859 2,104,550 2,214,859 2,214,859 0 0 Cove 168,536 25,000 25,000 25,000 25,000 12,773 1,534 39,307 (14,307) 154,229 Copy Center 24,524 24,000 24,000 0 12,773 1,496 14,269 9,731 34,255 University Center 2,281,575 240,962 228,381 554,702 554,702 554,702 (326,321) 1,955,254 UC Food Service 0 155,000 155,000 42,000 42,000 63,866 105,866 49,134 49,134 Vending 25,633 90,000 90,000 0 25,546 4,294 29,840 60,160 85,793 Parking 1,126,706 672,000 620,683 672,000 287,458 325,000 612,458 8,226 1,134,931 2,411,666 13,279,947 13,380,504 13,279,947 12,199,281 255,463 399,807 12,854,551 525,953 2,937,620 *includes 1,340,000 ** include 2,000 for Privateer Place
FY2013 2014 2014 Restricted Fee Analysis
Unrestricted Budgeted Revenue FY2009 2010 2010 thru FY2013 2014 2014 By Source of Revenue $80,000,000.00 $70,000,000.00 000 000 00 $60,000,000.00 Budget as of July 1st $50,000,000.00 $40,000,000.00 $30,000,000.00 $20,000,000.00 000 000 00 $10,000,000.00 $0.00 2009 10 2010 11 2011 12 2012 13 2013 14 General Fund Direct $46,520,309.00 $41,779,723 $45,100,735 $36,756,393 $17,566,678 General Fund Restoration Amount $4,042,440.00 $0 $0 $0 $0 Statutory Dedicated $3,072,841 $2,592,740 $2,575,586 $2,624,840 $15,146,838 Interagency Transfers ARRA $11,585,148 $17,000,729 $0 $0 $0 SlfG Self Generated dfunds $55,898,840.00 840 00 $61,296,011 $72,277,400 277 $71,239,333 333 $72,566,669 669 FY2013 13 Statutory Dedication include funding from Overcollections in the amount of $12,631,022