Financial Overview and Budget Recommendations

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Financial Overviewand Budget Recommendations
David Cummins Vice President for Financeand
Administration/CFO Mike Sherman Senior Vice
President and Provost Chief Operating Officer
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Overview FY12 General Fund Revenues

• Investment/endowment income, 1 2M
• Departmental sales, 4 14M
• Other, 2 6M
• Indirect cost recovery
• Quaker Sq. lease payments
• Overhead reimbursement from foundation

Tuition and fees, 69 271M State
appropriations, 23 90M Transfer-in from FY11
underspend, 2 8M

• General Fund revenue comes from two primary
  sources Tuition/fees and state appropriations.
  UA expects about 15M less in state
  appropriations.
• The General Fund pays for instruction, research,
  public service, academic support, student
  services and other activities.
• The general fund does not pay for
• Auxiliary Services (parking, dining, retail,
  etc.)
• Residential Life and Housing
• Most Capital projects

GENERAL FUND REVENUE, FY12 BUDGET
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Overview FY12 Proposed Expenditures
Personnel, including Dept. Sales, 42 164M
Fringe benefits, including Dept. Sales, 15
60M Scholarships, including GA fee
remissions, 10 39M Auxiliary support, 9
37M Central funded operational support, 8
29M Non-personnel academic, 3 11M
Non-personnel academic support, 3 13M
Operations supported with dedicated fees, 3
13M Departmental sales, non-personnel only,
2 10M Debt retirement, 2 9M Transfer
to reserves, 2 6M
GENERAL FUND EXPENDITURES, FY12 BUDGET
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Overview State Support and Tuition since 1987
2012
1987
Since 1987, the cost of higher education has
shifted from the state to the student.
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Budget Recommendations for FY2012
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Major Changes in Revenue, FY11 vs. FY12

• 15M reduction in state funding
• Increase in tuition of 3.5
• Projected increase in student credit hours of
  instruction 3.5
• Transfer from FY11 to FY12 under-spending of 8.4
  million

Image (to come)
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FY12 Budget Effect on Units
Colleges average reduction of 2 Academic
Support Units average reduction of 4

• UNIT BUDGETS TO BE DETERMINED STRATEGICALLY BY
• Alignment with the strategic-plan priorities
• Enrollment growth in recent years
• Growth in budget over recent years

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Major Changes in Expenditures, FY12 vs. FY11
CAPACITY AND EXCELLENCEASSURANCE, 51
FUNDING ENHANCEMENTS 20 million
STRATEGICINVESTMENTS, 39
FISCAL INTEGRITY, 10
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FY12 Budget Priority I

• CAPACITY AND EXCELLENCE ASSURANCE
• Compensation adjustments
• Support for extended locations Lakewood, Medina,
  etc.
• Additional graduate student fee remissions

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FY12 Budget Priority II

• STRATEGIC INVESTMENTS
• Increase scholarship pool proportionally to
  tuition increase
• New student scholarships
• Pell-eligible continuing students who were
  ineligible for general scholarships on admission,
  but since have earned a cumulative 3.0 with a
  two-semester, full-course load
• Select new freshmen with an ACT of 21 and a 3.0
  or better
• New freshmen with ACT between 22-26
• Increase full-time faculty
• Start-up funds

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FY12 Budget Priority III

• FISCAL INTEGRITY
• Ensure appropriate reserves Ohio Senate Bill 6
  ratio of 2.5 or greater
• Build the reserve
• Build a fund to enhance facilities

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FY12 budget New investments
Funding enhancements 20M

• NEW INVESTMENTS TO BE WEIGHED BY
• Alignment with the strategic plans priorities
• Viability of units proposal to meet criteria of
  Fiscal Integrity, Capacity and Excellence
  Assurance, and Strategic Investments

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Our Budget Selected Cost Containment Measure
Our move to self-insurance in FY11 has helped
contain healthcare costs.
Change from FY10 5.6
GROUP INSURANCE ANNUAL EXPENSES
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Questions?