EOU Financial Presentation to Associated Academic Professionals May 31, 2016
EOU Education and General (E&G) Budget Structure – FY16 2
E&G Major Budget Units - FY16 3
Major Budget Units - Detail 4
Total Salaries and % of Budget FY16 5
History of Sources of Revenue 6
History of Revenue & Expenses 7
History of Fund Balance 8
University Goals/Approach Achieve and maintain financial sustainability • Keep tuition affordable to encourage enrollment growth and access • for students Invest in our people to aid in recruitment and retention of quality • faculty and staff Build enrollment to help offset annual cost escalation • Maintain adequate level of reserves to help further EOU’s mission • and growth, and to absorb unforeseen expenses and/or reductions in state allocation Build efficiencies in programming and delivery • Achieve operational stability to allow for investment • Achieve and maintain best value proposition for students • 9
Enrollment/Retention Realities • TLT Charter Team, Fall 2016 Goal: +6.7% • Current IR Projection, Fall 2016: -3% • Cohort Retention – Fall to Winter: 95.5% – Fall to Spring: 89.4% (04/18/16) – Projected 71% retention for Fall 2016 10
Average Revenue Per Student 11
2017-19 Biennium State Allocation Uncertainty *Funding scenarios presented by the universities to the HECC for funding level consideration in 2017-19 biennium.* 13
2017-19 Biennium Cost Escalation Realities • PERS – The overturning of the court ruling will result in an estimated $1.3M increase in PERS cost for EOU beginning in the 2017-19 biennium. • Minimum Wage – Minimum wage increases will result in a projected $170,000 of additional annual expense for EOU in the 2017-19 biennium. 13
Current AAP Economic Proposal • Base Salary Increase = $1,787,604 • Overload Increase = $545,000 (est) • OPE Increase = $536,281 • Professional Development Increase = $123,000 • Travel Increase = $60,000 • Total Cost of Proposal/Increase over Current Costs = $3,041,885 OR approximately 8 percentage points of fund balance • Base Salary increase over contract period = 28.24% 14
Current AAP Economic Proposal Implications To meet the current cost of AAP’s economic proposal, EOU would need to: • Increase student FTE by approximately 125 each year of the contract (based on average annual tuition) OR • Receive an increase in state funding of approximately $1M each year of the contract – an additional 5% increase in funding annually. 15
Principles of EOU’s Current Economic Offer EOU Economic Proposal - 5/31/16 • Consider competitive market adjustments to faculty base salary • Recognize connection between enrollment growth and ability to afford competitive market adjustments • Increase investment in professional development • Connect contractual COLA increases to industry standard cost of living measurement 16
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