1 January 24, 2020 Money Matters Presentations Arts & Sciences
2 Institutional Revenues State Appropriations Tuition (minus Financial Aid) Room and Board Grants Gifts/Endowment Distributions Misc. (e.g. Royalties, Leases)
3 Tuition (minus Financial Aid) Factors Influencing Budget Planning Recruitment • New freshmen & transfers • Resident/Non-resident/International • Grad/UG; Athens, Regionals, Dublin, eLearning • Financial Aid Strategy Retention & Completion Rates • % of students returning • Time to degree Tuition Rates • Tuition caps • OHIO Guarantee: cohort increases; Tuition cap + CPI • Peer/Competitive benchmarks
4 Athens UG Multi-Year Enrollment FY16-23 Change -14.6% Factors Impacting Enrollments: Incoming Students, Time to Degree, CCP 18,500 FY16-FY19: 18,209 3.6% Decline 17,965 17,925 17,500 17,325 FY19-20: FY20-FY23: 6.0% Decline 5.7% Decline 16,127 16,500 16,278 15,735 15,681 15,349 15,414 15,500 14,500 FY16 FY17 FY18 FY19 FY20 Proj FY21 Proj FY22 Proj FY23 Proj FY24 Proj FY25 Proj Athens Headcount - Actual Athens Headcount - Spring 2019 Proj Athens Headcount - Fall 2019 Proj
5 Academic Operating Reserve: Impact of SEEC Update Fall Budget Scenario Planning (will change with planning assumption changes) Fall Budget Planning Priorities: $140.0 • Measure progress on strategies to balance • Align reserve use to committed levels Fall Submission Status: • Revenue strategies not projected to reach goals (not $105.0 incorporated in graph below) * -$129.4M Updated $70.0 $35.0 $- $(35.0) FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Academic Reserves $104.1 $114.6 $119.6 Spring 2019 Proj $110.5 $80.3 $62.7 $50.5 $48.8 $56.9 $75.5 Fall 2019 Proj *Impact of Central Fall Planning Assumptions, only $84.6 $60.1 $37.5 $17.3 $0.4 $(9.8)
6 FY20 Operating: Budget vs Forecast In millions Expenses Revenues 758.9 757.4 750.0 743.3 57.1 73.5 66.4 49.1 105.5 104.2 116.7 116.0 594.8 590.1 568.7 567.6 Budget Forecast Budget Forecast Academic Auxiliary Central & Reserves Revenues Academic Auxiliary Central & Reserves Total Expenses Revenue Variances: Expense Variances: • Central & Reserves : SSI & UG Tuition • Central & Reserves : Compensation & Supplies/Services • Academic : UG OHIO Online & Grad Prof/OHIO Online • Academic : Compensation & Supplies/Services
7 FY20 Operating Reserves: Budget vs Forecast In millions Net Transfer/(Draw) on Reserves FY20 Budget FY20 Forecast January Forecast vs. Budget: Significant Variances State Line Items: $3.7M more - Restricted Net Tuition: $6.8M less – Grad/On-line/Fellowship offset Athens Colleges & Schools (29.8) (27.0) Compensation: $6.4M less Expenses: $2.5M more Net Tuition: $1.0M less RHE 0.5 (0.2) Compensation: $1.5M less Expenses: $1.0M more Room & Board: $1.1M less Auxiliaries (3.6) (2.5) Compensation: $0.6M less Supplies & Services: $0.8M more Admin Operations Internal/External Sales: $1.0M more 6.8 14.8 & Central Institutional Reserves Compensation Expenses: $2.9M less (WC/HC/Fundraising Adj $5M) Supplies & Services (Net of Transfers): $2.5M less SOR (SSI): $3.9M more Reserves, Inst/Prov/SOR 0.0 1.5 SOR (Net UG Tuition): $6.8M less SOR Investment Transfers: $4.4M less (evolving) Total (26.2) (13.5)
8 OU Budgeted Enrollments Comparison: June BOT Approved Budget vs FY21 Fall Budget Athens Undergraduate Regional Campuses 18,209 17,965 12,696 17,925 12,144 11,513 10,927 17,325 10,207 16,278 9,697 9,406 9,406 9,406 9,406 9,406 16,492 16,127 15,735 15,681 15,414 15,349 FY16 FY17 FY18 FY19 FY20 Proj FY21 Proj FY22 Proj FY23 Proj FY24 Proj FY25 Proj FY26 Proj FY16 FY17 FY18 FY19 FY20 Proj FY21 Proj FY22 Proj FY23 Proj FY24 Proj FY25 Proj FY26 Proj Athens Headcount - Actual Athens Headcount - Fall Proj Athens Headcount - June Proj RHE FTEs - Actual RHE FTEs - Fall Proj RHE FTEs - Spring Proj Graduate (Excluding HCOM): Traditional, OHIO Online & Outreach OHIO Online: Undergraduate 660 1,593 873 393 7,734 7,736 7,487 7,734 7,736 7,487 5,559 5,602 5,632 5,345 5,275 4,972 5,396 5,406 5,406 6,950 4,705 4,482 4,133 4,089 3,289 3,437 3,437 3,030 3,030 3,289 3,738 3,610 7,724 7,724 7,724 7,480 7,614 7,317 7,416 6,927 6,806 6,514 6,242 5,984 5,742 5,514 4,807 4,835 4,838 4,829 4,813 4,817 4,711 4,682 4,747 4,516 4,807 4,711 4,682 4,682 4,621 4,664 4,608 4,412 4,421 4,412 4,412 FY16 FY16 FY17 FY17 FY18 FY18 FY19 FY19 Proj FY20 Proj FY20 Proj FY21 Proj FY21 Proj FY22 Proj FY22 Proj FY23 Proj FY23 Proj FY24 Proj FY24 Proj FY25 Proj FY25 Proj FY26 Proj FY16 FY17 FY18 FY19 FY20 Proj FY21 Proj FY22 Proj FY23 Proj FY24 Proj FY25 Proj FY16 FY17 FY18 FY19 FY20 Proj FY21 Proj FY22 Proj FY23 Proj FY24 Proj FY25 Proj FY26 Proj Graduate FTE Grad Outreach FTE (Prof/OHIO Online) Graduate FTE - Projected Grad Outreach FTE (Prof/OHIO Online) - Proj Grad Outreach FTEs - New Programs UG OHIO Online FTEs - Actual UG OHIO Online FTEs - Projected UG OHIO Online FTEs - New Programs UG eLearning FTEs - Actual UG eLearning FTEs - Fall Proj UG eLearning FTEs - Spring Proj Graduate FTE Grad FTE (Prof/Online) Graduate FTE - Fall Proj Grad FTE (Prof/Online) - Fall Proj Graduate FTE - Spring Proj
9 Projected: OHIO Total Undergraduate Net Tuition FY21-26 Forecasted Growth UG Net Tuition: 20% (in millions) Forecasted Growth: FY21-26 $245.2 $249.3 $239.0 $238.4 $231.5 $17.1 -24% $27.5 $224.9 $26.3 $18.0 $213.3 $213.2 $26.0 $207.1 $207.5 $25.8 1% $19.0 $25.9 $30.8 $23.8 $20.1 $29.9 $22.4 $21.2 $29.4 $27.2 58% $46.2 $26.4 $27.6 $25.5 $25.7 $43.6 $39.7 $35.8 $33.9 $37.4 $33.1 $31.1 $29.3 $30.5 $151.4 $143.9 $143.6 $143.1 19% $138.8 $133.1 $127.1 $126.8 $125.6 $127.2 FY17 FY18 FY19 FY20 Forecast FY21 Forecast FY22 Forecast FY23 Forecast FY24 Forecast FY25 Forecast FY26 Forecast Athens Resident Net Athens Non-Resident Net Regional UG Net Tuition UG OHIO Online Net Tuition UG Net Tuition
10 Enrollment Trends
11 State Appropriations Factors Influencing Budget Planning State Support of Instruction (SSI) • Funding to subsidize the cost of education • Legislature determines statewide subsidy pool • Individual university share determined via formula- based allocation (SSI Model) • Performance-based – Course & Degree Completions • Medical, Doctoral components • SSI Model has been volatile
12 Enrollment Impact of SSI FY20-21 Increases: One-Time-Only Revenue from SSI Appropriation (in Millions) Additional 1% Appropriation from State of Ohio in FY20 & FY21 not previously budgeted Growth : Peak UG enrollments, Decline : UG Enrollments (Athens, HCOM, & accelerated graduation Regionals, & OHIO Online) 21.3 21.7 21.2 19.4 22.4 17.1 22.6 22.5 15.4 22.1 22.4 $153.6 $150.2 $149.3 $147.4 $144.6 $143.8 $140.0 $139.3 $136.6 $135.2 $135.5 FY17 FY18 FY19 FY20 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Actuals Actuals Actuals Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast OU SSI - UG & Grad HCOM
13 Athens UG Net Tuition : SEEC Investments Investments in Financial Aid and Impact on Net Tuition $250.0 $54.7 $67.8 $53.8 $56.5 $200.0 $57.1 $65.9 $64.0 $57.7 $62.0 $150.0 Multi-Year $100.0 $186.1 $181.6 $175.7 $173.2 $169.5 Decline $163.7 $159.1 $157.7 $156.3 $50.0 in millions $- FY17 FY18 FY19 FY20 Budget FY20 Forecast FY21 Proj FY22 Proj FY23 Proj FY24 Proj Total Headcount (Fall) 18,197 17,936 17,323 17,120 16,278 15,735 15,414 15,349 15,681 Financial Aid $54.7 $53.8 $56.5 $57.1 $57.7 $62.0 $64.0 $65.9 $67.8 Net Tuition $186.1 $181.6 $173.2 $169.5 $159.1 $156.3 $157.7 $163.7 $175.7 Discount Rate 22.7% 22.9% 24.6% 25.2% 26.6% 28.4% 28.9% 28.7% 27.8% Non-Guarantee Growth* 0.0% 0.0% 0.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Guarantee Growth* 1.7% 1.3% 1.3% 3.5% 3.5% 4.1% 3.5% 3.5% 3.5%
14 Institutional Revenues Challenges/Constraints Financial Aid / Level of State Tuition Caps Subsidy Discount Rate Declining high Out-of-state, school International Regional graduates in student Enrollments Ohio enrollments
15 Academic Strategies Integrating the Academic Strategies into the Strategic Framework • Developing new online and hybrid graduate programs , as well as online completion degrees and workforce development credentials • Examining academic efficiencies, such as developing more equitable faculty workload across colleges and redeploying faculty teaching resources across OneOHIO • Reforming GenEd , emphasizing the need to streamline curriculum and meet modern students' learning needs • Reimaging the academic enterprise to pivot in response to needs of students, employers, and the community
16 Academic Strategies: Framework
17 Strategic Framework Priorities
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