FY 2020 Operations Budget Summary Presentation to the Board of - PowerPoint PPT Presentation

FY 2020 Operations Budget Summary Presentation to the Board of Trustees September 2019

F I S C A L Y E A R 2 0 2 0 SYSTEM-WIDE OPERATING BUDGET $6.97 billion +$141M (+2.1%) from FY2019 Includes Benefit Payments Made by State 2

B U D G E T D E V E L O P M E N T Consolidation of Budgets Developed by Individual Departments, Colleges and Units Follows Legislative Guidelines on Use of Funds Driven by Institutional Priorities 3

B U D G E T P R I O R I T I E S Student Faculty Physical Maintain Innovation & Scholarships Excellence Infrastructure Affordability Econ. Dev. 4

B U D G E T C O M P R I S E S F O U R T Y P E S O F F U N D S Total FY20 Budget: $6,970 M General Operating Hospital $2,343 M $838 M (+7.1%) (+5.2%) Payments on Behalf Restricted $1,716 M $2,073 M (-3.0%) (+1.1%) 5

F Y 2 0 2 0 P R O J E C T E D U N I V E R S I T Y R E V E N U E S Total Budget $6,970M Payments on Behalf (POB) $1,716M Budget w/o POB $5,254M +194M +3.8% 6

K E Y R E V E N U E C H A N G E S State Hospital Tuition & Appropriation Fund Fees +4.7% +7.1% +3.7% Sponsored Auxiliary Program Facilities +3.7% +2.5% 7

G E N E R A L O P E R A T I N G F U N D State Appropriation $594.2 M Tuition and Fees $1,327.2 M Cost Recovery $266.3 M Royalties $40.6 M Allowances $77.9 M Misc. Income $37.3 M Total $2,343.5 M Tuition Accounts for 57% of General Fund State Appropriation Provides 25% of General Fund 8

R E S T R I C T E D F U N D S Sponsored Programs $762.3 M Gift Income $179.7 M Auxiliaries $810.5 M Medical Service Plans $250.7 M Other $69.4 M Total $2,072.6 M Sponsored Programs Account for 37% of Restricted Funds Auxiliaries Account for 39% of Restricted Funds 9

DIVERSIFIED REVENUE SOURCES State Aux./Dept. 12% Tuition 15% 25% Hospital/MSP 20% Total $5,254 M Excludes Payment on Behalf Other 1% Inst. Funds Gifts/Endow Inc. 8% 4% Sponsored Programs 15% Institutional Fund includes cost recovery, royalties, allowances and misc. income 10

FISCAL YEAR 2020 – BUDGET BY UNIVERSITY $5,254 Million (excluding payments on behalf) System Office + System Wide Programs, 3.7% Hospital, 16.0% 45.2% UIC Total 49.4% 33.4% 1.7% 11

FISCAL YEAR 2020 – TUITION BY UNIVERSITY TOTAL $1,327 Million 36.2% 61.2% 2.6% 12

S A L A R I E S & B E N E F I T S B I G G E S T C O M P O N E N T O F E X P E N S E $2,689.5 M +4.0 % over FY19 51% OF TOTAL Note: Total excludes payments on behalf 13

M A J O R E X P E N S E B U D G E T C A T E G O R I E S Percent of Category Amount Total Salaries & Benefits $2,689.5 M 51.2% Supplies, Services, Equipment $1,693.9 M 32.2% Scholarships $334.3 M 6.4% Utilities/Maintenance $283.5 M 5.4% Debt Service $122.7 M 2.3% Transfer to Capital $130.5 M 2.5% 14

E X P E N D I T U R E B Y F U N C T I O N Auxiliary, 9.1% Instruction, 19.8% Hospital, 16.1% Plant Operations, Research, 15.3% 5.6% Institutional Support, 5.9% Public Service, 7.9% Scholarships, 5.9% Student Services, 3.1% Academic Support, 11.3% 15

K E Y C H A L L E N G E S • Stable State Funding • Enrollment & Tuition Growth • Maintain Fund Raising Momentum • Expense Control 16