Budget Forum January 30, 2020 Agenda Context and Overview FY2020 - - PowerPoint PPT Presentation

Budget Forum

January 30, 2020

Agenda

Context and Overview FY2020 Update Budget Balancing Ideas FY2021 Budget Development Process Revenue Overview Q&A

Context & Environment

• State environment: economy, rescission, funding
• No increases in undergraduate tuition and fees
• Continued use of reserves as we focus on enrollment and retention

growth strategies

• Limited opportunities for investment of new funds
• Focus on maximizing resources

Budget Development Process

Principle-Driven Agile & Iterative Collaborative

Goals of Budget Process

• Trust, transparency and inclusivity in budget development and

administration

• Maximization of University resources
• Budgeting and decision-making informed by strategic plans and priorities
• Budget structures that foster innovation and stewardship
• Growth through mission-focused student recruitment and retention
• Empowerment, mutual accountability, responsiveness and adaptation at

the local level

Engagement and Communication

• Meetings with unit leadership
• Engagement plans
• Faculty Senate
• Department and division meetings
• Drop In/Q&A sessions
• Budget forums
• Regular email communications
• Budget website and feedback forms

FY2020 Update

Structural Deficit $ ( 6 M)

………………………………………………………………………………………………………………………………...

State Rescission $ (.8 M) Enrollment Shortfall ~ $ ( 4 M) One-time savings from units: $ 3 M Salary savings, irregular, operating

Ongoing Budget Balancing Ideas

260 ideas received to date Leadership Council develop a process for reviewing submissions:

• New/Increased Revenue Streams
• Staffing and Human Resources
• Marketing and Recruitment
• Facilities
• Restructuring
• Policies and Procedures
• Efficiencies

FY2021 Balancing

State Appropriation Tuition & Fees Local Revenue One-Time Reserves Unit Budget Plans Strategic Investments Ongoing Budget Balancing Ideas One-Time Savings Resources Expenditures

Long-Term Balancing

• Address Student

Recruitment and Retention

• Promote Identity and

Culture

• Focus on Relationships
• Build Infrastructure

Increased State Appropriation Increased Tuition & Fees Increased Grant and Local Revenues Increased Efficiency Expenses Aligned with Student & Activity Levels Funding for Essential Needs and Strategic Investments Stable Fund Balances

Unit Budget Development

Each unit is developing a FY2021 budget plan and narrative:

• Salaried position lists
• Irregular and operating budgets – starting with FY2020 reset base
• Capital budgets
• Local revenue estimates
• Facilities and IT projects
• Strategic investments: personnel, operating

January 7-17, 2020 Budget Meetings with Units Budget development resources distributed to units January 17, 2020 Student Activity Fee Narratives due January 23 & 24, 2020 Budget Drop In Sessions/Q&A January 30, 2020 Professional Fee Recommendations Due January 30, 2020 Open Campus Forum February 7, 2020 Facilities and IT Project Materials Due February 14, 2020 Open Campus Forum February 28, 2020 Unit Budget Materials Due March 1-27, 2020 Budget Submission Review, Analysis, Organization April 6-24, 2020 Budget Prioritization and Recommendations May 15, 2020 Budgets Distributed to Units

Timeline

Revenue Overview

January 2020

• Dr. Glen Nelson, Vice President for Finance & Business Affairs

FY2019 Revenues

State Appropriations, $100.0 Tuition and Fees, $74.3 Grants and Contracts, $23.4 Sales and Services, $20.7 Title IV Grants, $16.2 Gifts, Capital Grants, $10.7 DPW Funding, $6.9 Other, $5.6

($ millions)

$257.8 million

Revenue Trends

FY2012-FY2019

150.0 170.0 190.0 210.0 230.0 250.0 270.0 290.0

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 $ millions

All Revenues

Revenue Trends

FY2012-FY2019 State Appropriations

40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 $ millions

Revenue Trends

FY2012-FY2019 Tuition & Fees

25.0 35.0 45.0 55.0 65.0 75.0 85.0 95.0

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 $ millions

Tuition & Fee Revenue

260 270 280 290 300 310 320 330 50 55 60 65 70 75 80 85 90 95

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Credit Hours (thousands) Tuition & Fees ($ millions)

Net Student Tuition and Fees Revenue at FY2012 Enrollment Levels Student Credit Hours

FY2012-FY2019

Tuition & Fee Revenue Adjusted for Rate Increases

$86 $74

Student Credit Hours

FY2012-FY2019

260,000 270,000 280,000 290,000 300,000 310,000 320,000 330,000

2012 2013 2014 2015 2016 2017 2018 2019

Student Credit Hours

FY2012-FY2019

260,000 270,000 280,000 290,000 300,000 310,000 320,000 330,000 2012 2013 2014 2015 2016 2017 2018 2019

All Students

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2012 2013 2014 2015 2016 2017 2018 2019

Non-Resident

5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 2012 2013 2014 2015 2016 2017 2018 2019

Early College

125,000 145,000 165,000 185,000 205,000 225,000 245,000 2012 2013 2014 2015 2016 2017 2018 2019

Undergraduate Resident

Grants and Contracts

FY2012-FY2019

15 18 20 23 25 28 30 33 35 50 100 150 200 250 300 350 400

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Revenue ($ millions) Proposals and Awards (count)

Proposals Submitted Awards Received Grants and Contracts Revenue

Revenue Summary

• Total annual revenues ~ $259 million
• State Appropriations have been steadily

increasing and comprise 39% of total revenues

• Tuition and Fee revenues, 29% of total:
• Returned to FY2012 levels
• 14% fewer total credit hours
• Large increase in dual enrollment
• Significant decrease in resident undergraduates
• Decreased research revenues
• All other revenue categories are flat

FY2012-FY2019

15.0 25.0 35.0 45.0 55.0 65.0 75.0 85.0 95.0 State Appropriations Tuition and Fees Grants and Contracts Other

Revenue ($ millions)

ISU Revenues

FY2012 FY2019

Q&A

nelsglen@isu.edu ♦ steejenn@isu.edu ♦ isu.edu/budget