1 / 17

Salisbury University

Salisbury University. Strategic Planning Team Financial - Environmental Scan October 2002. Trends - General. Declining State Support as % of Budget Competing with other social goods Change in philosophical reasons for public education Informed Citizens in a democracy Work Force Demands

skyla
Download Presentation

Salisbury University

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Salisbury University Strategic Planning Team Financial - Environmental Scan October 2002

  2. Trends - General • Declining State Support as % of Budget • Competing with other social goods • Change in philosophical reasons for public education • Informed Citizens in a democracy • Work Force Demands • Private Income Enhancement

  3. Trends - General • Higher Ed seen as cost not investment • Big Government vs. Privatization • Middle Class Entitlements • Culture of Evidence • Calls for outcomes assessment

  4. Trends - General • In economic downturns, enrollment usually increases • Revenue generated by this demand is usually offset by limited supply and marginal cost increases

  5. Other States

  6. Virginia • Projects at least a $2 billion deficit in FY 2003 • Has had consecutive 8% and 15% cuts in funding for FY 2003 • Education has been hit with layoffs and funding reductions • UVA has lost $23.4 million in general funds for FY2003, with another $33.3 million reduction expected in FY2004 • UVA had initial tuition increase of 8.9%, but has approval for a mid-year increase of $200 per full-time student • George Mason increased tuition and fees by almost 25% • Pennsylvania • Penn State University has had a 5% general fund reduction in FY 2003 ($16.7 million)

  7. West Virginia • Anticipate a $200 million state deficit • Preliminary 3% across the board general fund reduction • New Jersey • $3.8 million dollar reduction (6.59%) on Department of Education • North Carolina • For FY 2003 University of North Carolina system has increased tuition by 8% and 12% respectively for in-state and out-of-state students • Eliminated 1,070 positions • Reduced general funds by $131 million in recurring activities

  8. Maryland Economy • Estimated $400 million deficit in FY 2003 and $1.3 billion deficit in FY 2004 • State hiring freeze

  9. USM • Funding Guideline • Diminishing state allocation per FTES • Mandatory increases from the state • Debt Service ($107,024) • Health Benefits (≈ $200,000) • Workmens Compensation (varies)

  10. Possible Responses • Cost Containment • 80% of budget is wages and benefits • Re-engineering, streamlining operations • Economies of scale • Collaborative ventures with UMES • Incentives for good managers • Eliminate lower priority services, programs • Outsourcing

  11. Possible Responses • Revenue Enhancement • Enrollment Growth to fill unoccupied seats • Innovative delivery systems • Appropriate technology • Blended courses • New Markets • Off campus • Weekends

  12. Possible Responses • Revenue Enhancement • Non-credit activities • Grants • Contracts • Federal Earmarks • Non-credit courses, workshops

  13. Possible Responses • Revenue Enhancement • Private Giving • Corporate and Private Foundations • Planned Giving

More Related