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Spring 2014 Budget Update

Spring 2014 Budget Update. March 2014. Agenda. Current Budget Status Discussion Items Proposed Auxiliary Rates. Total Price of Attendance. Total Price of Attendance Detail. FY2012-13 Closing Balances. All Funds Summary (Cash Basis) Beginning Cash $ 24,495,297 ( July 1, 2012)

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Spring 2014 Budget Update

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  1. Spring 2014 Budget Update March 2014

  2. Agenda • Current Budget Status • Discussion Items • Proposed Auxiliary Rates

  3. Total Price of Attendance

  4. Total Price of Attendance Detail

  5. FY2012-13 Closing Balances All Funds Summary (Cash Basis) Beginning Cash $ 24,495,297 (July 1, 2012) Total Revenue $149,680,085 Total Expenses $145,363,000 Net Income $ 4,317,085 (Excluding direct student loan amounts) Closing Balance $ 28,812,382 (June 30, 2013)

  6. Board of Regents Policy Regarding Cash Balances • Four categories – Tuition, Auxiliaries, General Operations, and Other • Minimum of 10% of current year expenses to be held as UNPLANNED Reserves for Tuition & Auxiliaries • Max of 15% of total current year expenses to be held by each campus • This leaves ONLY 5% of current year expenses for planned spending

  7. Budget Forecast ModelProjected Closing Balances Current Scenario Above scenario assumes: $3M base on-going reduction; Additional $1.1M and approx. 14 positions are reduced due to lower enrollment projections in 14-15; Another $425,300 & 5 positions in 15-16 Assumes 0% tuition increase in 2014-15, 2% thereafter Assumes no continuing TSI incentive grants ($530,000 impact) UW-Platteville’s Reserve Goal per Board of Regents 10% recommendation: $6,100,000

  8. Tuition Revenue Note – these figures exclude distance learning, study abroad, and school of education cost recovery students

  9. Enrollment

  10. Enrollment Projections

  11. TSI Incentive Grants Discussion: We need to address the TSI incentive grants for continuing students. • Are we going to eliminate the continuing incentive grant of $500/year as we had planned? • The TSI Budget model assumes FY2013-14 is the final year of those grants.

  12. Summary of Current & FutureBudget Reductions This table summarizes the current base budget reduction, the base TSI reduction built into the budget model beginning in FY15, and the possible future base budget reductions that would be necessary to meet the Board of Regent’s 10% reserve policy.

  13. Current Budget Reductions

  14. Projected Additional Budget Reductions • Notes: • The budget for Admissions and Fin Aid excludes Federal financial aid. • This is just one example of how future budget reductions could be allocated out to the divisions.

  15. Plan for TSI $1M Reduction The budget model currently includes an ongoing reduction of just over $1 Million from the TSI budget for 2014-15. Options A-C: Reduce the base budgets going into FY2014-15. • Option A: Based on Salary & Fringe as a % of Total Salary & Fringe • Option B: Based on Salary, Fringe & Supplies as a % of Total Budget • Option C: Based on a % of Salary, Fringe & Supplies – weighted more heavily towards non-college budgets (See the following slide for $ impact) Option D: Wait until the end of Q1 in FY2014-15 and take cash from available TSI savings as a one-time reduction.

  16. Plan for TSI $1M Reduction:Options A-C Options A-C: Reduce the base budgets going into FY2014-15. Reduction Target: $1,054,100 Note: TSI Debt Service was excluded from the budget.

  17. One-Time Compensation Increases Discussion: Do we want to pay out one-time compensation in the current year to address inequities using available balances? How much?

  18. Possible Re-establishment of Capital/Lab Mod/Classroom Upgrade Funding Discussion: Do we want to re-establish a central pool for funding Capital/Lab Mod/Classroom upgrade requests? If so, where will the funds come from? How much? FY13 Amounts: Lab Mods: $271,321 Capital: $103,560 (each college received $25,000)

  19. Budget Management Principles • Possible Changes: • Carryover 80/20 (with the possibility for exceptions?) • Fringe Savings within TSI will be returned to improve the core model • Position Control: Academic Affairs and Colleges • Vacancies revert to Dean or Provost. • New positions will be approved by Dean or Provost, in consultation with the budget office. • Position Control: Non Colleges • Vacancies revert to the Provost. • New positions will be approved by the Provost, in consultation with the budget office. • For NEW positions, salary savings do not accrue to departments until the position is filled. • Carryover funds that are not spent/encumbered within Q2 will be taken centrally and reallocated. • Internal campus loans can be used to fund large purchases to allow departments/divisions to repay the loan over a period of years rather than saving funds and carrying them over from year to year to make the large purchases.

  20. Proposed Room & Board Rates

  21. Proposed Room Rates

  22. Proposed Board Rates

  23. Proposed Segregated Fees

  24. Proposed Segregated Fees

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