2016-17 EOU Budget Overview October 5, 2016 EOU Board of Trustees - PowerPoint PPT Presentation

2016-17 EOU Budget Overview October 5, 2016 EOU Board of Trustees Finance and Administration Committee

Budget Process: 2016-17 • Meetings with Department Unit leaders regarding changes to the FY16 general fund operating budget April • Draft acceptance by President and Executive Team • Review changes with Department Unit leaders. • Beginning of new fiscal year, load of prior year budgets with adjustments in the Banner Finance System. July • Prepare first draft/ read of University Budget Septem ber • BOT F&A Committee • EOU Budget and Planning Committee • Prepare second draft/ read of University Budget October • BOT F&A Committee • EOU Budget and Planning Committee • Presentation to EOU BOT Novem ber • Enter budget adjustments into the Banner Finance System • Notify campus of final 2016-17 budget

2016-17 EOU E&G Operating Budget The 2016-17 EOU Operating Budget portrays a reasonable and balanced budget, given the moderate tuition increases, enrollment realities and state allocations. The budget addresses needs associated with increased on- campus enrollment and efforts to increase overall university enrollment. This budget builds on the 2015-16 success and invests in priorities, it also provides for flexibility for new initiatives and investments.

EOU E&G Operating Budget Realities What is guiding the budget process at EOU? Current Fiscal Year 2016-17  HECC Sustainability Plan  Enrollment Projections for 2016-17  Moderate tuition rate increases for 2016-17  Increases in efficiencies  Fund balance policy  On campus, on line, on site enrollment mix  Collective Bargaining Agreements  Investment and growth opportunities Future Biennium 2017-19  Increased PERS Costs  State Allocation for 2017-19  Minimum wage increases  Fair Labor Standards Act

EOU E&G Operating Budget Realities What is known?  Tuition will increase by 3.9% for all categories  Revenue budget based on projected 3% decline in enrollment Fall 2016  Invest a minimum of 11.25% of tuition in fee remissions  Classified staff will receive a 2.25% COLA in December 2016  Faculty salary increase 5.8% effective 9/16/16 – pending CBA ratification  State allocation for FY17 $20,741,864 (includes targeted funding wrestling, shared service, ETIC and SELP)

2016-17 Proposed E&G Operating Budget FY20 17 Revenue $39,883,000 Expenditures $39,789,797 Change in Fund Balance $93,203 YE 2016 Ending Fund Balance $4,661,000 YE 2017 Projected Ending Fund Balance $4,755,000 % of Revenues 11.9 %

2016-17 E&G Operating Revenue FY16 Approved FY17 Proposed Delta Budget Budget State Allocation $20,046,000 $20,742,000 $696,000 Gross Tuition Revenue * $19,061,000 $20,097,000 $1,036,000 Less: Tuition ($2,200,000) ($2,042,000) ($158,000) Remissions Course Fee Revenue* $836,000 $485,000 ($351,000) Other Revenue $585,000 $601,000 $16,000 Net Operating Revenue $38,328,00 $39,883,000 $1,555,000 * Business Differential fees were budgeted as course fees in FY16, however the revenue was accounted for in the tuition account type, therefore budget was aligned accordingly in FY17

Proposed E&G Operating Expenditure Budget increases over FY16 • FY16 Expense Budget $37,660,000 • FY17 Expense Budget $39,789,000 Increase $2,129,000 5.8% over prior year budget ▫ FY16 Unfunded Budget Expenses $490,000 (1.3%) ▫ FY16 Salary/OPE Increases Rolled to FY17 $437,000 (1%) ▫ FY17 Efficiencies/Reallocations ($190,000) ▫ FY17 New Initiatives/Investments $694,000 (1.8%) ▫ FY17 Salary/OPE Pool – Faculty, Classified, Administrative Professionals, Students $698,000 (1.8%)

2016-17 Proposed E&G Operating Expenditure Budget FY20 17 Personnel Wages $20,294,505 OPE $10,791,105 Direct Expenses $8,702,603 Internal Reimbursements -$696,416 Operating Expenditures $39,091,797 Projected Salary/ OPE Pool $698,000 TOTAL Expenditure Budget $39,789,797

Changes by Expense E&G Budget Categories Expense FY16 FY17 Delta Category Approved Proposed Budget Budget Personnel $30,268,000 $31,085,610 $817,610 Wages Direct $7,392,000 $8,006,187 $614,187 Expenditures Salary/ OPE $0 $698,000 $698,000 Pool TOTAL $37,660,000 $39,789,797 $2,129,797

FY17 Additional Budgeted Expenses- $694,000 • Human Resources Specialist $53,614 • Athletics Eligibility Coordinator $59,232 • Human Resources Salary Adjustments $23,887 • Men’s Basketball Coach Salary Adjustment $14,127 • Training and Development Program Expenses $25,000 Increases with Associated Revenue Stream • Head Wrestling Coach $71,362 • Assistant Wrestling Coach $47,127 • Manager, Organizational Transformation/Capital Projects $144,012 • Wrestling Program Expenditures $157,252 • College of Business Program Expenditures $14,500 • Student Affairs Personnel $83,887

Distribution of FY17 Operating E&G Expenditure Budget by Unit President-includes athletics Library Services • • ▫ ▫ 8.4% 4.4% Student Services University Advancement* • • ▫ ▫ 6.2% 3% Finance and Administration-includes Academic Affairs-Central • • Information Technology and Facilities and ▫ 10.5% Planning • College of Business and Education* ▫ 25.4% ▫ 19.8% Campus Wide Services • College of Arts and Sciences • ▫ 3.7% ▫ 16.8% FY17 Salary/OPE Pool • ▫ 1.8% *COBE to fund – one time marketing efforts $100K in FY17

FY06-FY16 Ending E&G Fund Balance

FY17-Auxiliary, Designated Operations and Service Department Proposed Budget

FY17-Auxiliary Service Proposed Budgets FY20 17 Revenue $6,706,621 Expenditures $6,402,628 NET/ Change in Fund Balance $303,993 YE 2016 Ending Fund Balance $8,012,328 YE 2017 Projected Ending Fund Balance $8,316,321

FY17-Designated Operations Proposed Budget FY20 17 Revenue $236,000 Expenditures $179,804 NET/ Change in Fund Balance $56,196 YE 2016 Ending Fund Balance $360,134 YE 2017 Projected Ending Fund Balance $416,330

FY17-Service Department Proposed Budget FY20 17 Revenue $112,500 Expenditures $94,750 NET/ Change in Fund Balance $17,750 YE 2016 Ending Fund Balance $120,381 YE 2017 Projected Ending Fund Balance $138,131

Recommended 2016-17 University Operating Budget –E&G, Auxiliary, Designated Operations and Service Departments. (Does not include grants, financial aid or capital construction) Eastern Oregon University All Funds Budget Fiscal Year 2016-17 FY17 All Funds Budget Designated Service Auxiliary E&G Operations Departments Enterprises Total All Funds Revenue Student Fees $ 18,540,000 $ 14,000 $ - $ 1,758,834 $ 20,312,834 Government Resources & Allocations $ 20,742,000 $ - $ 728,704 $ 21,470,704 Gift Grants & Contracts $ 216,500 $ 52,000 $ - $ - $ 268,500 Investment/Debt Service $ 226,000 $ 4,700 $ 7,040 $ 237,740 Sales and Service $ 100,400 $ 99,400 $ 17,000 $ 4,134,595 $ 4,351,395 Other Revenue $ 58,100 $ 23,900 $ 77,450 $ 159,450 Internal Sales $ - $ 42,000 $ 95,500 $ 137,500 Total Revenue $ 39,883,000 $ 236,000 $ 112,500 $ 6,706,623 $ 46,938,123 Expenses Salaries & Wages $ 20,294,505 $ 94,656 $ 45,374 $ 985,938 $ 21,420,473 OPE $ 10,791,105 $ 26,867 $ 25,270 $ 463,523 $ 11,306,765 Direct Expenses, includes transfers $ 8,702,603 $ 58,281 $ 24,106 $ 4,330,952 $ 13,115,942 Depreciation $ 622,215 $ 622,215 Internal Sales Reimbursements $ (696,416) $ (696,416) Total Expenses $ 39,091,797 $ 179,804 $ 94,750 $ 6,402,628 $ 45,768,979 Salary Pool $ 698,000 $ 698,000 NET $ 93,203 $ 56,196 $ 17,750 $ 303,995 $ 471,144

The future 2017-19 • Although EOU is improving financially and trending in a positive direction, the university must continue to increase enrollment, both through recruitment and retention, seek other sources of revenue and contain costs. • In order to improve, EOU must continue to focus on fundamentals of the sustainable resource pillars: Performance, Efficiencies, Philanthropy and Public support • In the next biennium, 2017-19, EOU will incur significant increases related to PERS Employer Contributions. If the legislature does not fund EOU at its projected Current Service Level, tuition increases and reductions in services will be necessary to sustain the required fund balance level.

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