Campus Budget Meeting

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Transcription:

Campus Budget Meeting Fourteenth in a series March 21, 2016

Today s Meeting Preview of core content Foundation for budget decisions and progress How we got here and challenge in front of us Actions we will take now Actions we will not take Forecast of a balanced budget Next steps and closing comments Q & A Open discussion budget questions@uwm.edu

Foundation for Budget Decisions Significant progress reducing operational deficit Approaching ½ of total cuts However, difficult decisions needed to preserve future We must continue our momentum R 1 designation Carnegie Classification in community engagement All time highs in development Hundreds of supportive community partner organizations We can maintain, possibly elevate, but it will require adaptation Goal of budget decisions is to provide clear & realistic direction to support strategic drivers

Brief Summary Historic developments contributing to UWM s operating deficit $300M capital expenditures No increase in base budget after $10M DIN Growth in enrollment peaked in 2010 Tuition increases from FY02 FY13 (avg 6.8%) Decline in state funding AND enrollment, 2011 Tuition freezes, 2013 15 and 2015 17 Largest budget cuts in history o $15M, 2013 15 o $30M, 2015 17

Brief Summary, continued Recent developments $19M net operating deficit (spring 2015) $15M in cuts for 2016 17 $4M drop in 2015 16 fall enrollment $38M total deficit $15 16M (est) savings created in past year: o Administration, S/C cuts 202 fewer FTEs to date Progressing with actions/decisions ~ $18 20M in deficit remains

Brief Summary, continued

Beyond Budget Cuts: Larger Scale Sources of input: BPTF, BMWG, CEMAT, CCOET, governance, schools, colleges, units, and individuals Recommendations address large scale efficiencies and organization issues Considerable campus input and discussion

Guidance for Budget Decisions Vision: UWM will be a top tier research university Strategic drivers Student success Research excellence/r 1 standing Community engagement Balance competing priorities A whole UWM Carnegie Classifications of Higher Education Institutions UWM in 2015 UWM in 2010 R2 R1

Budget Package: Administrative Cuts What we WILL do now: Reduce senior level campus administration (VC/AVC) Reduce other administration (limited appts) Examine student services administration consolidation Accelerate integrated shared services (ISS) Reduce/eliminate certain administrative operations Space utilization policy & plan Metrics for efficiency & effectiveness Aggregate Savings by FY19 $5M

Budget Package: Academic Efforts What we WILL do now: Advance School/College alignment o Use inclusive process to study natural alignments Academic efficiencies o Workload Faculty doc: uwm.edu/secu/docs/faculty/2027.pdf Existing workload policy: 50/50 mix Consistent application of policy o Course alignment Avoid course duplication, extra sections Aggregate Savings by FY 19: $3-4M

Budget Package: Strategic Position Control What we WILL do now: Review all open positions Target elimination of 50% of all open positions in FY17 Target 50% of open positions for strategic recruitments Mandatory 3 6 month hold open period Position control for 3 years; reduced rate each year Review group and process TBD with governance input Externally funded positions exempted Reduce UWM s vacant FTE count with UWS Aggregate Savings by FY 19 $19M

Budget Package, continued What we are NOT going to do now Implement furloughs Credit plateau o BOR would need to approve o Legally prohibited during tuition freeze Close campus over fall and winter breaks o Costs associated in some cases o State not UWM would recoup utilities savings Change sabbaticals

Summary of Base Savings Administrative Cuts $5M Academic Efforts $3-4M Position Control $19M TOTAL: $27-28M

UWM SAVINGS PLAN (FY 2016 - FY 2019) One-Time Savings in FY 2016 Base and One-Time Savings in FY 2017 More Base and One-Time Savings in FY 2018 More Base and One-Time Savings in FY 2019 Cumulative Base* Savings Administrative Savings Reduce VCs and AVCs by 25% $350,000 $150,000 $500,000 Reduce Limited Appointments by 10% $1,000,000 $1,000,000 $2,000,000 Examine Student Services Consolidation $200,000 $200,000 Accelerate ISS Project $200,000 $400,000 $600,000 Reduce or Eliminate Certain Admin. Operations $400,000 $350,000 $750,000 Space Utilization Policy $200,000 $400,000 $600,000 Academic Savings Examine School/College Reorg $500,000 $800,000 $1,300,000 Enforce Faculty Workload Policy $500,000 $250,000 $750,000 Other Academic Efficiencies $500,000 $500,000 $500,000 $1,500,000 Payroll Savings Eliminate Portion of Future Vacancies $5,000,000 $7,500,000 $3,750,000 $16,250,000 Mandatory Delay in Hiring - One-Time Savings $1,000,000 $1,000,000 TBD Give up 154 Positions for Fringe Benefits Credit $3,000,000 TBD TBD $3,000,000 School/College/Division Savings One-Time Savings $15,000,000 $4,000,000 TBD TBD Base Savings $13,800,000 TBD TBD $13,800,000 Total Savings $15,000,000 $29,550,000 $11,850,000 $5,850,000 $41,250,000+ Cumulative Base* Savings $24,550,000 $35,400,000+ $41,250,000+ *Note: Savings in BLUE are one time savings and do not cumulate. All other savings are base and therefore cumulate from year to year.

CARRY FORWARD BALANCES, IN $ MILLIONS 100 80 60 40 20 0-20 2012 2013 2014 2015 2016 2017-40 -60 2018-80 -100 2019 Pre-Savings After Savings Without Actions

Upholding Strategic Drivers Administrative efficiencies and reorganization Enrollment management efforts School/College realignment Strategic position control 1. Student Success 2. R1 - Research Excellence 3. Community Engagement

Future We will re position ourselves to be successful Difficult times but we will utilize our solid foundation to grow Revenue generation will be key: enrollments, external research and funding, etc. Choices will poise UWM for the future Compensation increases Growth & re investment in schools/colleges/units Ability to showcase UWM in a new way High quality education, research, and engagement

Next Steps Today s presentation posted: uwm.edu/budget Things underway and t/b immediately undertaken Administrative re structuring Integrated shared services Development of position control process & group Planning & consultation with deans, governance groups and others / Provost charges: o o o Academic alignment School/college alignment Workload policy April 18, 2 p.m. Campus Budget Meeting, Fireside Lounge

Questions & Answers Open Discussion budget-questions@uwm.edu