Budget Budget Financial Proposed Discussion Recommendations - PowerPoint PPT Presentation

FY17 FY2017-FY2021 Unified E&G Final Multi-Year Budget Budget Financial Proposed Discussion Recommendations Analysis

2 2 June 2, 2016 Susan J. Hunter President Jeffrey E. Hecker Executive VP for Academic Affairs & Provost Claire Strickland Chief Business Officer FY17 Education & General Budget Finalizing the Discussion

3 3 Agenda • Recap FY17 Budget Process • Final Budget • Enrollment Update and Projections • Multi-Year Financial Analysis, FY17-FY21 • Unified Budget Recommendation Overview November 9, 2015 FY17 Campus Budget Presentation

4 4 Key Dates - Timeline FY17 Budget Prep 2 0 1 5 2 0 1 6 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Finalize 1 st iteration Initial • FY17 budget Consolidated BOT final Campus preliminary campus of FY17 budget & budget FY17 Budget materials to FY17 Gap budget & budgets Development CBOs MYFA review approval MYFA updated by BOT • Review of review by into (FF&T) allocations & Chancellor’s MaineStreet assumptions Office by 01/31/16 • Enrollment management Develop draft FY17 update consolidated budget

5 5 Credit Hour Enrollment In-Sta In tate 225,000 Credit Hours UMaine Enrollment 175,000 300,000 125,000 FY13 FY14 FY15 FY16 FY17 Credit Hours Budget 211,600 205,265 209,850 191,907 189,172 FY17 enrollment budget: Actual 207,753 206,354 198,920 193,966 200,000 Budget: 0.4% above FY16 Actual: 0.3% above FY16 100,000 0 FY13 FY14 FY15 FY16 FY17 Out-of of-Stat State Budget 260,000 263,000 279,800 274,287 275,508 100,000 Actual 261,690 270,011 273,568 274,788 Credit Hours 75,000 50,000 Fall 2016 Projected Headcount 25,000 2,200 First-year Students 0 FY13 FY14 FY15 FY16 FY17 9,149 Continuing Students Budget 48,400 57,735 69,950 82,380 86,336 Actual 53,937 63,657 74,648 80,822 11,349 Total Students

6 6 Total Gap & Target Cuts Total Gap $ -5,838,327 2,447,140 VP Academic Affairs 248,855 VP Research & Dean of Graduate School VP for Innovation and Economic 25,000 Development 240,000 VP Student Affairs 610,000 Chief Business Officer 120,000 Presidential Areas • Athletics 275,000 $ 1,872,332 Projected New State Resources Total Gap $ 0

7 7 FY17 FTE Summary Classified/ Faculty Professional Service Total Vacancies (2.47) (4.19) (5.38) (12.04) Resignations/ Retirements (4.62) (1.00) (1.38) (7.00) Work Year Reduction (0.08) (2.16) (2.24) Move to other Funding (1.12) (3.11) (0.75) (4.98) Layoffs (1.00) (1.48) (2.48) End of Appointments (0.50) (0.50) Investments 15.00 1.60 16.60 Subtotal 6.79 (8.28) (11.15) (12.64) MEIF 4.00 2.00 6.00 Total 10.79 (6.28) (11.15) (6.64)

8 8 FY17 Approved Unrestricted Budget Summary In Thousands Education FY17 & General Auxiliaries Designated Total R EVENUE Tuition & Fees $147,212 - - $147,212 Dining & Residence - 37,314 - 37,314 Waivers & Scholarships -45,593 -1,149 -330 -47,072 State Appropriation 82,498 - - 82,498 Indirect Cost Recovery 8,371 - - 8,371 Other 932 - 723 1,655 Sales & Services 13,947 13,437 3,277 30,660 $207,366 $49,602 $3,670 $260,638 E XPENSE Personnel Expense $134,609 $16,457 $651 $151,717 Operating 67,322 27,732 2,914 97,969 Capital 5,435 5,413 105 10,953 $207,366 $49,602 $3,670 $260,638 FY17 Base Unrestricted NET: $0 $0 $0 $0

9 9 Projected Student Annual Costs for AY16-17 In-State Out-of-State Undergraduate AY15-16 AY16-17 AY15-16 AY16-17 (30 credits per year) Tuition $8,370 $8,370 $26,640 $27,240 Fees 2,240 2,258 2,240 2,258 Room & Board* 9,575 9,864 9,575 9,864 Total $20,185 $20,492 $38,455 $39,362 Combined Increase $307 1.5% $907 2.4% In-State Out-of-State Graduate AY15-16 AY16-17 AY15-16 AY16-17 (18 credits per year) Tuition $7,524 $7,524 $23,940 $24,498 Fees 1,124 1,142 1,124 1,142 Room & Board* 9,575 9,864 9,575 9,864 Total $18,223 $18,530 $34,639 $35,504 Combined Increase $307 1.7% $865 2.5% * Based on meal plan and room type with greatest projected number of students

10 10 Projected Land Grant Prices U NDERGRADUATE T UITION , F EES , R OOM & B OARD C OMPARISON 2016-2017 New England Land Grant Universities $45,000 $40,364 Out-of-State In-State R&B $40,000 $35,944 $35,000 $31,424 $31,419 $29,498 $28,874 $30,000 $25,000 UMaine $20,000 $17,624 $17,300 has the $14,596 $14,152 lowest $15,000 $12,884 combined $10,628 $13,478 cost $10,000 $12,300 $11,849 $11,578 $10,938 $9,864 In-State $5,000 and Out- of-State $0 UVM UConn UNH UMass URI UMaine Total In-State $28,878 $27,630 $28,562 $26,445 $25,184 $20,492 Tuition + R&B Total Out-of-State $51,942 $49,422 $42,362 $43,268 $41,174 $39,362 Tuition + R&B

11 11 Credit Hour Enrollment Historical and Projected Credit Hour Enrollment 300,000 21% 24% 27% 29% 31% 34% Credit Hours 36% 38% 39% 200,000 79% 76% 73% 71% 69% 66% 64% 61% 62% 100,000 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Total Budget 260,000 263,000 279,800 274,287 275,508 280,888 287,032 293,207 299,096 Actual 261,690 270,011 273,568 274,788 In-State 207,753 206,354 198,920 193,966 189,172 185,546 183,600 182,625 182,154 Out-of-State 53,937 63,657 74,648 80,822 86,336 95,342 103,432 110,582 116,942 Projected

12 12 Enrollment Data Historical and Projected Headcount Enrollment 12,500 12,200 11,982 Fall Census Data 11,756 12,000 11,531 11,349 11,500 11,286 11,247 11,000 10,922 10,500 Projections 10,000 9,500 9,000 Fall Fall Fall Fall Fall Fall Fall Fall 2013 2014 2015 2016 2017 2018 2019 2020

13 13 Investments that Accompany Enrollment Growth New Investments in Faculty and Staff * • Instruction – tenure, non-tenure, and adjunct hires • Student Affairs / Student Life Staff • Enrollment Management / Admissions / Student Services Staff Increased Investments • Financial Aid discounts for new students • Marketing • Facilities and classroom improvements Auxiliary Enterprise Capacity issues • Housing • Dining • Bookstore * In the Multi-Year Analysis for FY2018 through FY2021, $1.5M have been imbedded in increased costs of faculty and staff positions.

14 14 Questions

Multi-Year Financial Analysis June, 2016 R YAN L OW C HIEF F INANCIAL O FFICER

GAP U NIVERSITY OF M AINE S YSTEM 100 FY16 - FY20 Structural Gap Scenario 90 $89.6 Original 80 $75.6 70 $62.5 Original 60 MILLIONS $50.2 50 As presented, $42.3 November 2014 40 30 Last Year’s Starting Point 20 10 0 FY16 FY17 FY18 FY19 FY20 Tuition/Unified Fee 0% 0% 0% 0% 0% Appropriation 0% 0% 0% 0% 0% Compensation 2% 2% 2% 2% 2% Medical 7% Trend 7% Trend 7% Trend 7% Trend 7% Trend Depreciation 100% 100% 100% 100% 100%

GAP U NIVERSITY OF M AINE S YSTEM 100 FY16 - FY20 Structural Gap Scenario 90 $89.6 Original 80 v2 FY16 – FY20 $75.6 Enrollment Structural Gap 70 reduced through $62.5 60 a combination of MILLIONS $50.2 spending 50 reductions, $42.3 revenue 40 Last Year’s Final Version increases (tuition 30 and $26.4 Adjusted for $20.8 Enrollment Projections appropriation), $22.4 20 $16.1 and other $12.1 $11.0 $16.8 reallocations at 10 $12.1 the campus level $7.0 $8.1 0 FY16 FY17 FY18 FY19 FY20 Tuition/Unified Fee 0% CPI CPI CPI CPI Appropriation 1.7% 1.9% CPI CPI CPI Compensation 1% 1% 2% 2% 2% Medical 7% Trend 7% Trend 7% Trend 7% Trend 7% Trend Depreciation 79% 85% 90% 95% 100%

Dashboard

UMS Credit Hour Enrollment (all campuses) UMS Credit it Hour r Enrol ollment lment 800,000 700,000 14% 16% 18% 600,000 19% 19% 20% 21% 22% 23% Credit Hours 86% 84% 82% 500,000 81% 81% 80% 79% 78% 77% 400,000 300,000 200,000 100,000 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Total Budget 699,273 701,707 686,561 666,253 658,844 671,461 683,318 694,021 703,459 Actual 696,101 681,810 665,019 656,867 In-State 596,250 574,463 547,768 532,830 531,283 534,638 536,958 539,156 541,225 Out-of-State 99,851 107,347 117,251 124,037 127,561 136,823 146,360 154,865 162,234 Projected

UMS Credit Hour Enrollment: UMaine UMaine Credit Hour Enrollment 300,000 21% 24% 27% 29% 31% 34% Credit Hours 36% 38% 39% 200,000 79% 76% 73% 71% 69% 66% 64% 62% 61% 100,000 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Total Budget 260,000 263,000 279,800 274,287 275,508 280,888 287,032 293,207 299,096 Actual 261,690 270,011 273,568 274,788 In-State 207,753 206,354 198,920 193,966 189,172 185,546 183,600 182,625 182,154 Out-of-State 53,937 63,657 74,648 80,822 86,336 95,342 103,432 110,582 116,942 Projected

Dashboard: Tuition & Fees

Revenue: Tuition Includes Tuition & Fees 280,000 276,553 275,000 272,975 270,340 268,703 268,667 270,000 267,453 265,000 266,206 263,470 260,000 260,877 259,774 255,000 250,000 FY12 FY13 FY14 FY15 FY16 FY17 Actual/Budgeted Expenses "Real" (adjusted for inflation)

Dashboard: Appropriation