FY17 UConn Draft Budget Presentation Board of Trustees Financial Affairs Committee May 25, 2016
Agenda FY17 UConn Draft Budget Presentation 1. FY17 UConn Health Draft Budget Presentation 2. Capital Budget Presentation 3. 2
Overview Protect academic excellence, provide strong student support, 1. and support the research mission of the University. Keep commitment to accessibility through increased student 2. financial aid in the face of fiscal constraints. UConn’s FY17 budget is a balanced budget due to careful 3. management of expenses, operational efficiency gains, tuition increases and enhanced external revenues to mitigate against cuts in State funding. 3
UConn Budget by the Numbers UConn Storrs and Regional Campuses • $1.3B Operating Budget • 5 Campuses (Storrs, Avery Point, Hartford, Stamford & Waterbury) • 12 Schools and Colleges • 392 distinct departments • 70 Centers and Institutes • 7 Bargaining Units - Covering 90% of employees • 23,407 Undergraduate Students (Fall 2015) • 7,332 Graduate Students (Fall 2015) • 4,801 Faculty and Staff (Fall 2015) 4
FY16 UConn Operating Budget vs. Forecast Despite $17.2M of State cuts, with careful management, UConn will end FY16 with a small net gain of $1.1M. FY16 FY16 Favorable / Revenues: Budget ($M) Forecast ($M) (Unfavorable) Appropriation 243.1 240.6 (2.5) Fringe Benefits Reimbursements 153.5 145.8 (7.7) Total State Support $ 396.7 $ 386.4 $ (10.2) Tuition 346.8 353.0 6.2 Fees 117.4 122.0 4.6 Grants & Contracts 68.8 78.3 9.5 Foundation/Endowment 18.4 20.0 1.6 Sales & Service Education 18.4 19.5 1.1 Auxiliary Enterprise Revenue 215.7 210.1 (5.6) Other Revenue 10.7 16.0 5.3 Total Operating Fund $ 1,192.8 $ 1,205.3 $ 12.5 Research Fund 101.8 102.0 0.2 Total Current Funds Revenues $ 1,294.6 $ 1,307.3 $ 12.7 Expenditures: Personal Services 507.8 500.3 7.5 Fringe Benefits 259.3 247.4 11.9 Other Expenses/Equipment 212.1 221.8 (9.7) Energy 24.5 23.5 1.0 Student Financial Aid 146.5 153.3 (6.8) Debt Service/Projects 38.0 56.3 (18.2) Total Operating Fund $ 1,188.2 $ 1,202.5 $ (14.3) Research Fund 104.2 103.7 0.5 Total Current Funds Expenditures $ 1,292.4 $ 1,306.3 $ (13.8) Net Gain/(Loss) Loss $ 2.2 $ 1.1 $ (1.1) Note: Use of decimals may result in rounding differences . 5
FY17 Updated Budget Gap UConn has solved the FY17 Budget Gap through the following: Updated Budget Gap $M Projected December 2015 Budget Gap $ (40.2) Current FY17 State Budget (29.2) Lower fringe costs than previously budgeted 7.1 Undergraduate tuition increase 12.8 Graduate tuition and other increases 1.2 No Union/Staff increases 19.0 FY17 - Strategic 3% cut from University units 18.0 Full-Year Impact of FY16 mid-year cuts 9.2 Other changes 2.5 Total Changes $ 40.6 Revised Funding Gap $ 0.4 Note: Use of decimals may result in rounding differences . 6
How has UConn met fiscal challenges? Cuts have been made to almost every unit within UConn over the last few years. In FY17, units across campus have had to reduce costs with most taking a 3% cut. Some cuts have been in positions (largely not filling vacancies) but also through proactively looking at ways to manage expenses while improving services. The University initiated a program (Spend Smart) to identify areas where expense reductions and/or operational efficiencies occurred. To date, more than 200 initiatives have been implemented. Below are two examples: College of Liberal Arts and Sciences – Continuous and comprehensive analysis of undergraduate student course needs to ensure effective instructional planning and optimal instructor/student ratio. • Fiscal resources are maximized and high demand courses are available and accessible to more students. Temporary and instructional support costs are minimized while maintaining academic quality. One Card Office (Student IDs) - Incoming freshman students submit their ID card pictures online during the summer instead of coming to the office to have them taken by student office staff during orientation. • Reduction in One Card Office staffing needs. • Enhances the student experience - allows more time during orientation for students to participate in orientation programming. 7
FY17 Draft University Budget Despite fiscal challenges, UConn is presenting a balanced budget for FY17. Revenues ($M) Expenditures ($M) Appropriation 229.9 Personal Services 502.2 Fringe Benefits & Adjustments 151.4 Fringe Benefits 258.3 Total State Support $ 381.3 Other Expenses 226.9 Tuition 372.7 Equipment 13.9 Fees 124.5 Energy 25.2 Grants & Contracts 79.3 Student Financial Aid 161.6 Foundation/Endowment 20.0 Debt Service/Projects 36.4 Sales & Service Education 19.8 Total Operating Fund $ 1,224.6 Auxiliary Enterprise Revenue 210.7 Other Revenue 18.3 Research Fund 106.3 Total Operating Fund $ 1,226.6 Total Operating Expenditures $ 1,330.8 Research Fund 104.6 Net Gain/(Loss) $ 0.4 Total Operating Revenues $ 1,331.2 Note: Use of decimals may result in rounding differences . 8
FY17 Draft Revenue Budget Total revenue is expected to increase $24M or 1.8% over FY16. Revenues ($M) Grants & Sales & Appropriation 229.9 Contracts Service Foundation Fringe Benefits & Adjustments 151.4 6% Research Education 2% Other Total State Support $ 381.3 Fund 1% Revenues Tuition 372.7 8% 1% Fees 124.5 Auxiliary Grants & Contracts 79.3 Enterprises State Foundation/Endowment 20.0 16% Support Fees Sales & Service Education 19.8 29% 9% Auxiliary Enterprise Revenue 210.7 Tuition Other Revenue 18.3 28% Total Operating Fund $ 1,226.6 Research Fund 104.6 Total Operating Revenues $ 1,331.2 37% of total revenue is funded by The following slides will breakdown each category students and their families through listed above. tuition and fees. Note: Use of decimals may result in rounding differences . 9
State Support UConn was able to balance the FY17 budget despite a reduction of $29.2M from the original FY17 adopted budget. This was done through strategic expenditure reductions, judicious hiring, careful spending and additional tuition revenue. ($M) Appropriation Appropriation w/ Inflation $295 $268.4 $255 $240.6 $233.0 $232.6 $229.9 $215 $222.2 $205.6 $202.6 $195.8 $175 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Due to the Governor and legislative authority to make mid-year reductions, UConn is at risk for up to a maximum of $30.4M in additional cuts in FY17. 10
State Support UConn has sustained $75.3M in state reductions*, lost fringe and fund sweeps since 2010. UCONN - Reductions, Fringe (lost) and Fund Sweeps ($M) Lost Fringe Appropriation Reduction due to Fund Sweeps Total Cut Reduction FY10 $ 235.3 $ (2.3) $ (1.2) $ (8.0) $ (11.5) FY11 $ 233.0 $ (0.4) $ (0.2) $ (15.0) $ (15.6) FY12 $ 207.7 $ (2.1) $ (1.1) $ - $ (3.2) FY13 $ 206.1 $ (10.3) $ (5.2) $ - $ (15.5) FY14 $ 203.4 $ (0.8) $ (0.4) $ - $ (1.2) FY15 $ 229.6 $ (7.4) $ (3.7) $ - $ (11.1) Largest cut in FY16 $ 243.2 $ (2.6) $ (1.6) $ (13.2) $ (17.4) UConn history. TOTAL $ (25.9) $ (13.2) $ (36.2) $ (75.3) UConn tuition, fees, other revenues, expense reductions and operational efficiencies must make up for cuts to protect academic excellence and provide strong student support. Note: Use of decimals may result in rounding differences . 11 *Reductions = lapses, rescissions and deficit mitigation
NextGenCT Operating Funding Given the State’s fiscal challenges, NextGenCT operating funds were significantly less than the original plan. Actual/ Percent $M Original Plan Proposed* Change Reduction FY15 $ 17.4 $ 7.6 $ (9.8) 56.3% FY16 33.8 9.6 (24.2) 71.6% FY17 54.0 19.2 (34.8) 64.4% Total $ 105.2 $ 36.4 $ (68.8) 65.4% • Reduction in funding has impacted our ability to hire new faculty. • In FY17, we will hold freshmen enrollment steady and plan to enroll 3,800 new Storrs freshmen. • NextGenCT capital funding is more critical than ever to ensure faculty have labs/equipment needed to compete for grants, STEM students and faculty have great facilities to support research & education, and STEM scholarships and financial aid are funded. *Due to mid-year reductions in FY15 & FY16, UConn has utilized one-time funds to fulfill the financial commitments of this initiative in those years. 12
UConn NextGenCT Student Growth Since FY13, total undergraduate enrollment has increased by 1,106 students or 5% and is above the NextGenCT planned increase, despite NextGenCT operating fund shortages. Undergraduate Enrollment • 30,000 Storrs undergraduate STEM 28,829 enrollment increased by 22% 28,000 27,456 since FY13. • 809 of the STEM students 26,000 25,049 are in engineering which has increased by 41%. 24,000 23,407 22,301 23,192 22,000 • FY17 freshmen enrollment is FY13 FY16 FY19 FY22 FY24 NGC not expected to grow. Goal Actual NGC Goal 13
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