1

FY13 Student Tuition Consultation

SFMC – March 22, 2012

2

Up Front Summary

• State and University have just finished addressing the largest budget deficits in history

• State continues trend of reduced investment in Higher Education

• Tuition Increase of 3% for FY13

3

WSU Total Budget Composition – FY12

• General Fund $81M, 65%– (Tuition $56M, State Appropriation $25M)

• Residence Halls $20M, 15%• Laptop Program $7M, 6%• Auxiliary Enterprises $5.5M, 5%• Student Fees $4.5M, 4%• Student Union $2M, 2%• Miscellaneous $3M, 2%• Grants and Contracts $2M, 2%• TOTAL $125 Million

General Fund65%

Residence Hall15%

Laptop Program6%

Auxiliary En-terprises

4%

Student Fees4%

Student Union2%

Misc2%Grants

2%

Innovation Fund = $400,000 or about ½ of 1% of the Total University Budget

4

General Fund Budget by Nature – FY12

• Employee Salaries 60%• Fringe Benefits 18%• Student Employment 2%• Equipment 2%• Operating (Supplies & Expenses) 14%• Repair and Replacement 1%• Fuel and Utilities 2%• Debt Service 1%

Employee Salaries60%

Fringe Benefits18%

Student Employment

2%

Equipment2%

Operating (Supplies and

Expenses)14%

Repair and Replacement

1% Fuel and Utilities2%

Debt Service1%

80% of the General Fund Budget is Invested in People

5

FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY1325%

35%

45%

55%

65%

75%

34%

69%66%

31%

Tuition State Appropriation

Era of double digit tuition increases. FY03-12%, FY04-15%, FY05-15%

Era of inverted budget reductions. Support units took 2x their share, Academic

units took 1/2 their share.

Era of selective investment and development.

Era of shared responsibility. All units take a propor-

tional share of the reduc-tions. Tuition held to reason-

able levels.

6

WSU Budget Principles(Adopted December 2008)

• Winona State University will be guided by its mission statement and look at the good of the whole. Budget decisions will be based on a consistent set of data and communication will be transparent and inclusive. Winona State University will:1. Provide classes that allow students to complete their educational programs in a timely manner2. Maintain its commitment to our faculty and staff

As we strive to accomplish the above during these hard times, we will: Maintain a physical environment that meets the health and safety needs of the University community Provide services and activities that support student success Remain committed to high quality affordable education Work to increase the efficiency and effectiveness of our operations Create and enhance revenue stream Not exempt any unit of the university from making needed sacrifices

7

Budget Strategies Implemented in FY10-11-12

• Retirement Incentives• Reduce Administration• Reduce faculty/staff positions • 7% Operating Reduction• Educational Lean and Restructuring• Maintain Enrollment• Tuition Increase

• Revenue Fund Cost Shifts• Review Programmatic Scans• Summer Session Restructure• Reduce Faculty Reassigned Time• Energy Savings• New Graduate and OCED Programming• Non Traditional Funding Sources

8

FY2012/13 Budget Planning Factors State of Minnesota

• February 2012 state budget forecast– FY12-13 surplus projected at $323 million

• Surplus will be used to repay the K-12 funding shift and build reserves at the State level

• Good News – No further unallotment or appropriation reduction for FY12 or FY13

9

FY2013 Budget Planning Factors - WSU

• FY13 Budget Scenario Calculator on Fiscal Affairs / Budget ToolKit page http://www.winona.edu/adminaffairs/budget_101.asp

• Increases in employee wages and health insurance continue to be the largest cost drivers at the University

• Enrollment growth from FY11 to FY12 has helped the University budget

10

Tuition Costs at Selected Institutions – FY12

MN State U - Mankato

Winona State University

Bemidji State University

UW - La Crosse UW - Madison U of M - Twin Cities

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$6,350 $6,660 $6,840$8,324

$9,436

$11,650

Annual Undergraduate Tuition – Full Time Student

11

History – Tuition and Budget Reductions

• Tuition Increases • FY03 – 12% • FY04 – 15% • FY05 – 15%• FY06 – 7%• FY07 – 9%• FY08 – 4%• FY09 – 5%• FY10 – 5% (with assistance from Federal stimulus of 2%)• FY11 – 5% (with assistance from Federal stimulus of 2%)• FY12 – 5%

• Budget Reductions• FY02 - $1.0M• FY04 - $1.2M • FY10 - $1.8M• FY12 - $2.5M

12

FY2013 WSU Tuition Proposal

• Tuition increase of 3%– Annual increase to a full time, MN resident student will be $200.00

MN Undergraduate

FY12Board Approved

FY13Amount of Increase

FY13 (Proposed)

Per Credit $220.40 $6.60 $227.00Banded

(Semester) $3,333.00 $100.00 $3,433.00

Banded (Annual) $6,666.00 $200.00 $6,866.00

13

Resources

• Most current information on budget at• President’s page:• www.winona.edu/president/index.asp

• Fiscal Affairs page:• www.winona.edu/adminaffairs/budget_101

• MnSCU Finance page:• www.finance.mnscu.edu

14

Questions