University of Alaska Board of Regents Cost Effectiveness January - PowerPoint PPT Presentation

University of Alaska Board of Regents Cost Effectiveness January 18, 2019

Overview • Context • Unrestricted General Funds History • Operating Budget Revenue by Source • FY18 Operating Budget Revenues and Expenditures • Strategic Pathways • Roles & Responsibilities • Goals • What is our goal? • Why is it important? • How are we pursuing it? • Cost Effectiveness Strategies • Conclusion / Discussion • Next Steps 2

Context 3

Unrestricted General Funds History (in millions of $) $3 $27 $53 $51 $61 $378 $375 $351 $325 $327 $317 FY14 FY15 FY16 FY17 FY18 FY19 Unrestricted General Funds (UGF) Cumulative Impact = $195M 4

Operating Budget Revenue by Source FY14-FY19 Projection (in millions of $) 100% Other Restricted 6.0% 6.0% 6.1% 6.1% 6.3% 6.2% 90% 15.6% Federal Receipts 16.2% 15.7% 15.7% 16.1% 16.6% 80% 3.9% 3.8% 4.5% 4.4% 4.7% 4.6% Indirect Cost Recovery 70% 10.9% 11.5% 11.4% 12.0% 13.6% 13.3% Auxiliary, Designated, Match, & Other Unrestricted 60% 16.2% 15.6% 17.2% 17.8% 17.5% 17.9% Student Tuition & Fees 50% 40% 30% 47.2% 47.5% Unrestricted General Funds 45.0% 43.0% 42.0% 42.4% 20% 10% 0% FY14 FY15 FY16 FY17 FY18 FY19 Projection 5 $800.8 $789.3 $780.4 $755.7 $753.9 $771.8 * excludes UA-intra-agency receipts

FY18 Operating Budget Revenues and Expenditures (in millions of $) Travel, Auxiliary Funds, $15.8, 1.9% $40.7, 5.0% Contractual Services, $187.3, 22.8% Restricted Funds, Salaries & Benefits, $165.2, 20.1% $465.8, 56.8% Unrestricted Funds, $603.3, 73.5% Commodities, $56.3, 6.9% Capital Outlay, $34.2, 4.2% Misc. (Debt Service), Student Aid, $29.0, Designated Funds, $31.9, 3.9% 3.5% $4.6, 0.6% Match Funds, 6 $6.5, 0.8%

Strategic Pathways How to organize the UA system to strengthen its ability to meet the state’s higher education needs during period of budget cuts? • Context • Cumulative budget cut of $195M (FY14-19) • Head count reduction of 1,283 (FY15-19) • External conditions (demographics, economic, geographic) • Process • 22 teams (230 Alaskans) reviewed all aspects of UA operations • 100 options were submitted for consideration • Outcomes (some done, some in process) • Clarified areas for unity across UA system and areas for specialization at each university • Improved collaboration, course sharing, and credit transfer • Eliminated selected programs: low enrollment, those that are redundant across UA • Established UA system councils with regular reporting to ensure accountability • Establishing stronger public/private partnerships • Streamlining, standardizing, and automating administrative processes 7

Strategic Pathways “The University of Alaska inspires learning, and advances and disseminates knowledge through teaching, research, and public s ervice, emphasizing the North and its OUR MISSION diverse peoples." (Regents' Policy 01.01.01) Maximize value to Alaska through excellent, accessible, and cost effective higher education OBJECTIVE funded by diverse and growing revenue sources CORE PRINCIPLES Focus, Access, Diversity, Excellence, Consistency, Fiscal Sustainability STRATEGY Prepare, Restructure, Implement, Refine UA ANCHORAGE UA FAIRBANKS UA SOUTHEAST Comprehensive metropolitan university in Alaska’s Research university renowned for leadership in Arctic Comprehensive regional university focused on economic hub, with primary focus on workforce and the North, with additional focus on workforce interdisciplinary & marine-oriented programs, teacher WHO WE ARE development through its several regional community development and community and rural education education, e-Learning, and workforce development campuses Social and economic sciences, Arctic science and policy, physical, biological, and Research Interdisciplinary / environmental health policy social sciences, engineering and applied energy • Health professions • Physical, natural, and related sciences • Marine – oriented programs (including joint • Business and public policy • Arctic / Northern Studies programs with UAF) CAMPUS LEAD FOR THE • Economics • Rural development / tribal management • Teacher education (administration) STATE* • Logistics • Doctoral education • Interdisciplinary degrees/ degree completion Teaching • Project Management • Mine training • Emphasis on regional workforce priorities, e.g., • Fisheries and ocean sciences mine training • Aligned with Research and Teaching Focus Outreach • Common General Education Requirements • Alaska Native Studies • Liberal Arts and Humanities • Teacher Education • Social Sciences & Natural Sciences • Management • Nursing • Mine training COURSES / PROGRAMS AVAILABLE ACROSS • Engineering • Wide choice of non-major courses THE UNIVERSITY SYSTEM • Distance Education / E-Learning • Dual credit with K-12 • Career and Technical Education • Developmental Education * Research, teaching, and outreach at campuses other than the “lead” campus that are of high quality, cost effective, and cor e to mission, will continue to be provided. 8

Roles & Responsibilities 9

The Hierarchical Reality Exec. & Legislative Branches of Govt. Governing Board Resources Goal Setting Policy System President Accountability University Chancellors Governance Groups Deans & Directors Implementation Department Heads Faculty and Staff 10

What How 11

Goals 12

What is our goal? 2017 2018 2019 2020 Change 2025 Baseline Observed Target Target 2019-2020 Goal 1. Contribute to Alaska’s economic development Increase STEM graduates 1,628 1,691 1,776 1,875 +99 (6%) 2,460 Increase # invention disclosures 17 34 23 25 +2 (9%) 34 2. Provide Alaska’s skilled workforce Increase % of educators hired 30% 33% 37% 43% +6% (16%) 90% Double number of health program completions 874 939 986 1,086 +100 (10%) 1,760 3. Grow our world class research Lead the world in Arctic related research 1 1 1 1 1 Increase research expenditures $159.4m $150.7m $157.4m $168.3m +$10.9m (7%) $235m 4. Increase degree attainment Fiscal Year Student Full Time Equivalent (FTE) 18,492 17,555 18,433 19,825 +1,392 (8%) 28,526 Increase completions 4,594 4,554 4,781 5,442 +661 (14%) 10,400 5. Operate more cost effectively Decrease total cost of education (indirect and direct) per $107.3 $108.4 $103.0 $93.9 -$9.1 (-9%) $59.0 completer Increase annual completions per Full Time Equivalent (FTE) 23/100 23/100 24/100 26/100 +1.6 (6%) 35/100 13

Why is our goal important? • How do we attain our goals in service to the state’s needs for higher education and our students’ success while our state funding is being cut? • If we are to serve our mission for the state and contribute to our students’ success in this environment of continued fiscal uncertainty, we must redouble our efforts for both cost reduction, which provides an internal source of revenue for investment in our goals, along with external revenue diversification and generation. • Effective use of our resources will strengthen our claim for additional needed resources. • As well, we have a fiduciary and even moral obligation to use the resources provided to us by our state, our students, funding agencies, and donors in the most prudent and effective way possible. 14

How are we pursuing our goal? • Simplify, automate, and streamline processes • Increase use of technology • Reduce facility operating costs • Streamline policies and regulations • Share resources across universities and campuses • Prioritize programs, revise and reduce • Program delivery • Optimize workloads • Increase enrollment • Increase and diversify revenue • Reduce employee headcount 15

Cost Effectiveness Strategies While it is the Board’s role to establish our goals, the “what,” and the university’s role to determine and implement the “how,” it is important that the Board see and understand the many ways the university is pursuing its goals. 16

Simplify, automate, and streamline processes Done In Process Future Work • • • Simplified employee tuition waiver process (UA) Automating Journal Voucher Improved student billing (UA) • • Single e-mail platform (UA) (JV) Workflow (UA) Improve customer service, increase • • Changed Wellness Rebate to one time per year Improving the scholarship processing speed and accuracy, and (UA) process (UAF) reduce duplication of effort (UAF) • • • Created online process for employees to update New vendor payment method Automate HR processes and data entry HR address (UA) using virtual credit card (UA) in Banner (UAF) • • • Redesigned health care deduction structure and New travel system (UA) Streamline FMLA system (UAS) • created new HSA codes to eliminate errors (UA) Automate the employee onboarding • Improved scholarship process and earlier between PageUp and Banner (UAS) • packaging and notification of aid (UAA) Streamline credit transfer (UA) • • Increased automation and paperless Examine credit for prior learning administrative processes (UAA) process (UA) • • Train and use of LEAN (UA) Consider increasing procurement levels • Developed IT automation and “self - service” tools (UA) • (UAS) Consider minimizing approval levels • Implemented PageUp - UA HR Enterprise System (UA) (UA) • Campus-wide initiatives and efficiency projects (UAF) 17