UC Berkeley Budget and Financial Outlook Office of the Vice Chancellor Finance August 2017 cfo.berkeley.edu
To thrive in the future, Berkeley must pivot to revenue generation while maintaining cost efficiency 20,000 Target Ta $0 (30,000) Cumulati tive rev even enue e generation ion (80,000) Net Surplus/(Deficit) In Thousands (130,000) Cumulati tive cost s t savings gs (180,000) (230,000) Base se (280,000) (330,000) 2015 2016 2017 2018 2019 2020 Actual Actual Forecast Projection Projection Projection * Base (114,389) (149,323) (172,452) (212,143) (242,398) (266,630) ** Target (114,389) (149,323) (110,000) (57,000) (20,000) 8,000 *Base: bottom line with no corrective actions taken **Target: bottom line with impact of revenue generation and cost savings initiatives 2 Source: Office of the CFO analysis
To prepare for FY18, each division was responsible for comprehensive budgets driven by a strategic plan and metrics Sample strategic plan 3
Customized dashboards guided budget discussions with divisional leaders, the EVCP, and the CFO Sample dashboard 4
Academic and administrative divisions collectively helped UC Berkeley meet its FY18 $54M budget improvement target through revenue generation and expense reductions Private Gifts Academic Academic $5M Revenue by Revenue by Category Division Letters & Science $3.8M Private Gifts $7M Reserve Investments $11M Colleges 20% $5.1M PDST* Academic Expense $7M Academic Revenue Reductions $3.7M Schools 7% Generation $25.2M $10.4M SSGPDP** $1.2M 47% Research Expense Concurrent Reductions $3.8M Enrollment*** $3M 7% Executive Education, University Extension Summer Sessions, Administration Expense $5.9M Sales & Services Reductions $7.6M $7M 14% Administration Revenue Generation *PDST: Professional Degree Supplemental Tuition $2.4M, 5% **SSGPDP: Self-Supporting Professional Graduate Degree Programs ***Concurrent Enrollment: a program for University Extension students to enroll in UC Berkeley campus courses without being formally admitted to the university 5 Source: Office of CFO analysis
Private giving to UC Berkeley reached record highs in the past two fiscal years Dollar Value of Gifts Number of Gifts and and Pledges Pledges $500 105 $463 $479 $470 100 96 100 $450 88 88 $395 $400 82 82 $366 $348 80 $350 $316 In Thousands $300 In Millions 60 $250 $200 40 $150 $100 20 $50 0 $0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Source: University Development & Alumni Relations 6
Between 2015-16 and 2017-18, the campus will add a projected 2,600 undergraduates 29,38 29, 388 30,000 26, 26,78 787 Transfer er 25,000 20,000 15,000 Fresh shmen 10,000 5,000 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Source: Office of Planning & Analysis 7
The latest student registration data for Fall 2017 show increases in underrepresented minority and first generation college students 24.00% 25% 20.90% 20% 17.70% 16.60% 15% 13.50% 12.00% 10% 6.70% 6.30% 5% 0% All UREM* CA Resident UREM* Out of State UREM* 1st Generation College Class Starting in Fall 2016 Class Starting in Fall 2017 *UREM: underrepresented minority, including African Americans, Chicanos/Latinos, and Native Americans Source: Office of Planning & Analysis 8
Recent capital investments have supported UC Berkeley’s core mission and seismic priorities ~$2.9B of capital assets placed in service FY07 Actual - FY18 Estimated Administrative Residential 1% 15% Non-Seismic Seismic/Life 43% Academic Safety 54% 57% Auxiliary* 30% Source: Office of the CFO analysis 9 *Auxiliary: Athletics, Student Union
To meet the instructional needs of new enrollment, we are modeling growth based on student credit hours (SCH) and targeting resources to courses to reflect demand shifts Growth in Undergraduate SCH 2015-16 to 2017-18 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 College of Chemistry College of Engineering College of Environmental Design City & Regional Planning L&S Arts & Humanities L&S Biological Sciences L&S Math & Physical Sciences L&S Social Sciences L&S Undergraduate Division College of Natural Resources Goldman School of Public Policy Graduate School of Education 2015-16 Actual TAS Eligibe SCH 2017-18 Projected TAS Eligibe SCH Graduate School of Journalism School of Information School of Optometry School of Public Health School of Social Welfare Source: Office of Planning & Analysis 10
UC Berkeley’s 10-year capital needs exceed projected financial capacity 10-year Projected Capital Need and Estimated Resources 2017-2027 Projec ected ed Cat ategor ory Pote tenti tial F Funding Funding G g Gap Needs Figures are Gifts State Cash P3* directional Aca cademic: c: teaching and research programs $2,000M $300M $200M $100M - $1,400M Infrastr tructure: deferred maintenance and capital renewal of physical plants $700M - $50M $150M - $500M Athleti tics: intercollegiate sports $110M $40M - - - $70M Auxili iliarie ies: parking, student services, etc. $400M $300M - $50M - $50M Housing: g: student residence halls and dining facilities $450M - - $200M $250M $0 TOTA TAL G GAP ~$2B 2B *P3: funding provided by third parties via public-private partnerships Source: Draft 10-year Comprehensive Capital Plan 11
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