fy17 operating budget & 2015-17 capital budget...fy17 operating budget & 2015-17 capital...
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FY17 Operating Budget &2015-17 Capital Budget
FY17 Operating Budget & 2015-17 Capital Budget1st Read May 20, 2016
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BUDGET POLICY AND PROCESS
Board of Trustees Budget PrinciplesBudget Planning Process
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EWU Board of TrusteesStatement of Budget Principles
Utilize budget INVESTMENTS
in the strategic plan
to achieve the mission of the university
FOCUSon the
teaching mission of the
university
Investin Eastern’s COMMITMENT
to student access and
success
Place university PRIORITIESover unit priorities
Conduct a collaborative
and transparent
budget PROCESS
Evaluate and IMPLEMENTany and all
feasible revenue
enhancement strategies
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Budget Process Timeline
Fall 2014 Unit level planning started 15-17 bienniumJune 2015 Approved state biennial budget July 2015 Implement 15-17 Budget July 1, 2015Fall 2015 Supplemental budget requests - technical adjustmentsDecember 2015 Governor’s Budget releasedMarch 2016 House and Senate proposed budgets approvedApril 2016 Approved state supplemental budget
May 2016 1st Read FY17 Budget with Board of TrusteesJune 2016 2nd Read (Approval) FY17 Budget – June Board of
Trustees meetingJuly 2016 Implement FY17 Budget July 1, 2016
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Role of University Budget Committee• Presidential advisory body consisting of representatives from faculty,
classified staff, exempt staff, students, and administrators.
• The committee reviews and makes recommendations to the president in response to new budget proposals, including budget reduction plans in times of reversions.
• The committee works closely with the university president to consider the university’s finances, enrollment, tuition, financial aid, the legislative session, and priority funding programs, and their interaction and connection with Eastern’s values, mission, and vision.
• Committee members actively participate and represent their constituencies while applying a university wide perspective during budget deliberations to deliver comprehensive, thoughtful, and balanced recommendations to the university president.
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University Budget Committee
UBC members are appointed by the president based on recommendations from each appropriate member affiliation. The committee meets monthly, and is chaired by the VP for Business and Finance, who exercises no voting rights.
Voting Membership
Six faculty members nominated by faculty senate representing each college and libraryFaculty Senate TreasurerOne classified staff memberOne student representativeOne deanOne exempt staff memberOne professional staff member (PSE – Exempt represented staff)One representative from each of the Presidential/Vice Presidential divisionsOne representative from Intercollegiate Athletics
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Membership
Student Committees contribution to Operating Budget Services and Activities Fee Committee
• Proposes to the administration and governing board program priorities and budget levels for the Services and Activities Fees
• Comprised of 12 members: six students, four university members and two ex-officio members
Student Technology Fee• All students taking 6 or more credits are assessed the full student technology fee
(average 10,238 students) are charged $35 per quarter• Allocation of resources is recommended by the Student Technology Fee Committee• Fee funds general and open access student computing labs replacement and renewal of
equipment and operations, key technology services such as student email and other web services
• Annual replacement of 250-350 computers along with software, printers, storage, servers• Software renewal• Investment in the storage area network • New investment in the PUB renovation
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FINANCIAL PLANNING
Biennial Budget ProcessLong Term PlanningPlanning for Resource Sufficiency and Flexibility
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Budget Relationship and Impact
Mission
EWU expands opportunities for
personal transformation through excellence in
learning.
Strategic Goalso Student Successo Institution of
Innovationo Community
Engagement
Revenue and Expenditures Budgets
EnableAchieve
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Planning Cycle Relationship to Financial Reporting
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• 2 year budget with internal planning for future biennia
• Multi-year enrollment planning
• Revenue forecast and projections
• Future cost impacts• Analysis of reserves• Strategies for revenues
and funding• Link to Strategic Plan
Budget and Planning Process
• Monthly- various financial reports are produced
• Variance reporting• Benchmarking and
industry level analysis• Audited annual financial
statements• Audited fund level
financial statements for selected funds
Financial Reporting
On-going analysis of spend rate and cash balances Interim reporting Budget vs. Actual Revenues and ExpensesOngoing enrollment review Financial Aid review Capital Projects
Financial Management
Historical Budget View
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Retrospective
• EWU has successfully navigated through the economic downturn to retain a sound financial position.
• State funding for operational budget continues to be constrained.
• Tuition authority restriction continues to impact future opportunities.
• Enrollment: focus on market position, demand, and capacity. Historically strong demand yet demographics indicate current market sector will slow.
• Declining state investment in deferred maintenance and capital funding presents a major issue for the future.
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A Challenging Budget Environment
2015-17 Biennium• Tuition authority restriction
continues to impact future opportunities
• Revenue growth at a slower pace
• Enrollment stability continues• Campus initiatives provide
future opportunities
2011-13 Biennium• Decreasing funding• Increasing costs• $25M decline in State
support• Tuition impact• Continued budget
constraints and reductions
2013-15 Biennium• Transforming for the
future• Revenue growth at a
slower pace• More dependent on
tuition• New Strategic Plan
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2009-11 Biennium• Challenging economic
environment driven by recession• $33.4M loss of state funds• Tuition impact• Internal budget reductions• Staff reductions and salary
freeze
2017-19 Biennium• Tuition policy provides
minimal revenue growth• State revenues early
projection is relatively flat• Revenue growth at a slower
pace• Enrollment stability continues-
plan 2% growth Y/Y
State Funding HistoryEastern Washington University
2009‐11 Overview 2009‐11 Maintenance Level Funding $124,842,000 Reductions (33,424,000)
Total State Funding (Appropriation) $91,418,000
2011‐13 Conference Budget (5‐24‐2011) 2011‐13 Maintenance Level Funding $ 93,840,000 Reductions (25,751,000)
Total State Funding (Appropriation) $68,089,000
2013‐15 Conference Budget (6‐28‐2013) 2013‐15 Maintenance Level Funding Additions
$ 73,254,000 5,509,000
Total State Funding (Appropriations) $78,763,000
2015‐17 Conference Budget (4‐18‐2016) 2015‐17Maintenance Level Funding Additions
$ 82,387,000 21,118,000
Total State Funding (Appropriations) $103,505,000
State Funding Change ‐17%
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Key Funding Sources State Funds and Student Tuition
$0
$10
$20
$30
$40
$50
$60
$70
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mill
ions Student Tuition State Funding
63%
37%
56%
44%
Source: Enact Bass Report (2016 -5J) FY17 Tuition Projections
The reduction in Resident Undergraduate tuition increased the percentage of state funding due to College Affordability Act.
GF-State Funding per FTE Student
$6,4
47
$4,4
61
$5,3
80
$6,3
59
$3,7
44 $4,5
66
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
$6,000
$6,500
2008 2009 2010 2011 2012 2013 2014 2015 2016
Funding per Budgeted FTE
Funding per Actual FTE
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EWU’s GF-State funding per OFM Budgeted FTE declined by 67% ($2,577) between FY2008 and FY2013. The increased state funding resulted from resident undergraduate tuition decrease in FY16.
Source: Data based on GFS allocations and OFM budgeted state enrollments.2015 projections based on original budget. Actual FTE funding based on GFS allocations and Annual Average state enrollments.
Enrollment
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Academic Year EnrollmentsState Support (AAHC)
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Eastern’s enrollments remain stable with planned future growth. Future enrollment goals will consider access, capacity, and fiscal balance within the context of the strategic plan.
Source: EWU Institutional Research
8543 8815 9141 9428 9551 9749 9733 9817
1224 11211114 1105 971 902 867 9089767 9936 10255 10533 10522 10651 10600 10725
0
2000
4000
6000
8000
10000
12000
2010 2011 2012 2013 2014 2015 2016 2017
GraduateHeadcountUndergraduateHeadcount
90% of all enrollments are recorded as state support. The remaining 10% are self support and
FY17 Projected Enrollment
FY16 State Enrollment
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Total HC – 10,600Total FTE – 10,332
Resident Undergraduate, 8782, 83%
Resident Graduate, 732, 7%
Domestic Undergraduate,
536, 5%
International Undergraduate,
415, 4%
Domestic Graduate, 113, 1%
International Graduate , 22, <1%
Nonresident, 10%
Resident Undergraduate Resident Graduate Domestic UndergraduateInternational Undergraduate Domestic Graduate International Graduate
Enrollment Mix
Legislative Session Impacts
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2016 Supplemental Budget Change
Eastern’s State Funding Approved Budget
2015-17 Biennium Funding Level* $102,699,000
Maintenance Level 59,000
Central Services 86,000
College Affordability Program (Tuition Reduction Backfill) 566,000
Moore vs HCA Settlement 120,000
PEBB Rate Adjustments (25,000)
New Funding Level, 2015-17 Biennium $103,505,000
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*EWU received $11.5M tuition backfill funding in the 15-17 Biennium Funding Level
State Budget Overview
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Policy implications
13-15 Resident Undergraduate tuition freeze15-17 Resident Undergraduate tuition freeze15-17 Resident Undergraduate tuition reduction to studentsCollege Affordability Act – additional state funding to backfill reduction Student success (degree completion) fundingSalary increase funded 3% FY16 and 1.8% FY17Related employee benefits mostly funded
OPERATING BUDGET
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Tuition & Fees
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2015-17 Tuition and Fees
• Tuition Rate Increases• Mandatory Fees• Housing and Dining Rates
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FY2016 & 2017 Tuition & Fee IncreasesFY2017
% ChangeFY2017
Annual TuitionResident Undergraduate – Operating Fee -15% $6,110Nonresident Undergraduate – Operating Fee 5% $22,502Resident Graduate – Operating Fee 0% $10,955Nonresident Graduate – Operating Fee 0% $25,438Building Fee 2.2%
Service & Activity Fees 5%
Housing & Dining Rates 6.7%
Transportation Fee $60.00
Comprehensive Health & Wellness Fee $285.50
Parking Permits – all lots 8% Rates Varies
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2015-17 Operating (Tuition) Fee Assumptions
FY2016 FY2017Budgeted HC – state supported 10,651 10,651Enrollment Growth over FY15 plan .75% 0.00%Operating Fee Decrease-Resident Undergraduate -5% -15%Operating Fee Increase-Nonresident Undergraduate 5%* 5%EWU Financial Aid 4% 4%
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* Non-WUE students only in FY16
2017 Operating (Tuition) Fee Revenue
FY2016 FY2017
Gross Operating (Tuition) Fee Revenue 80,971,006 75,920,022
Less: Tuition Waivers (12,318,608) *(12,318,608)
EWU Grant (2,729,096) (2,527,057)
Uncollectible Allowance (425,000) (425,000)
Plus: Interest Income 275,000 275,000
Net Operating (Tuition) Fee Revenue 65,773,000 60,924,000
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Ledger 1
*Waivers may decrease
Total State Funding and Operating Fees
FY2016 FY2017 2015-17 Total
General Fund State $38,689,000 $48,098,000 $86,787,000
Education Legacy Trust Fund 8,304,000 8,414,000 16,718,000
Operating (Tuition) Fees 65,773,000 60,924,000 126,697,000
Recharges 2,378,773 2,378,773 4,757,546
Total $115,144,773 $119,814,773 $234,959,546
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Ledger 1
Local Dedicated
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Significant Funding Sources• Running Start/High School Programs• Eastern On-line• Summer Session• Student Technology Fee/Health & Wellness Fee• Course Fees• Program Fees
Ledger 2
FY2015-17 Local Dedicated Funds Budgets
FY2016 FY2017Revenue/Additions
Expenditures/Deductions
Change in Fund Balance
Revenue/Additions
Expenditures/Deductions
Change in Fund
Balance
Academic Affairs* $27,176,181 $31,390,068 ($4,213,887) 27,363,140 30,233,788 (2,870,648)
Business & Finance** 8,185,964 9,219,394 (1,033,430) 8,150,955 7,847,589 303,366
Student Affairs*** 4,593,150 5,245,592 (652,442) 5,093,150 5,467,727 (374,577)
Information Technology**** 1,202,276 1,246,946 (44,670) 1,236,563 1,735,251 (498,962)
Student Tech FeeAll Other IT
1,111,789124,500
1,612,001123,250
Funds Total $41,157,571 $47,102,000 ($5,944,429) $41,843,534 $45,284,355 ($3,440,821)
These funds finance their own asset renewal and replacement.
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Ledger 2
• *Academic Affairs – PTOL, Equipment Replacement and Other Operating Expenses• **Business & Finance – Interfund Loan to Athletics • *** Student Affairs – Operating Expenses• **** Information Technology – Technology for PUB Renovation
Budget spending approximately 10% of Unrestricted net assets
General and Educational Base Funding
FY2016 FY2017 2015-17 Total
General Fund State $38,689,000 $48,098,000 $86,787,000
Education Legacy Trust Fund 8,304,000 8,414,000 16,718,000
Operating (Tuition) Fees 65,773,000 60,924,000 126,698,000
Dedicated local Funds 41,157,571 41,843,534 83,001,105
Total $153,923,571 $159,279,534 $313,204,105
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Use of New Funding• Faculty and staff compensation increases• Faculty, Senior Lecturers and Quarterly Faculty• Fixed costs increases
FY2015-17 Service Funds Budgets
FY2016 FY2017Revenue/
RechargesExpenditures/
Deductions
Change in Fund
Balance
Revenue/Recharges
Expenditures/Deductions
Change in Fund
Balance
Workforce Construction 1,590,000 1,776,490 (186,509) 1,862,000 1,862,330 (330)
Telecommunications 1,051,342 1,032,241 19,101 1,104,732 1,086,691 18,041
Motor Pool 536,000 455,715 80,285 545,000 554,002 (9,002)
Service Funds Total $3,177,342 $3,264,465 ($87,123) $3,511,732 $3,503,023 $8,709
• Service funds provide goods and services to other university units.• The funds finance their own asset renewal and replacement.• Budget gaps may be mitigated with cash reserves.
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Ledger 3
FY2015-17 Auxiliary Funds Budgets
FY2016 FY2017Revenue/Additions
Expenditures/Deductions
Change in Fund
Balance
Revenue/Additions
Expenditures/Deductions
Change in Fund
Balance
Housing & Dining $26,965,320 $22,925,046 $4,040,274 $27,715,523 $23,405,836 $4,309,687
S&A Fee Fund (net of Housing debt and financial aid)
11,932,384 9,360,442 2,571,942 11,358,047 11,642,034 (283,984)
Recreation Center Fees 224,250 224,250 - 210,000 230,156 (20,156)
Intercollegiate Athletics* 5,566,800 6,647,622 (1,080,822) 6,849,162 6,835,974 13,188
Bookstore 5,854,612 5,787,231 67,381 6,166,061 6,162,011 4,050
Pence Union Building 1,075,181 1,107,048 (31,867) 1,075,184 1,146,298 (71,117)
Parking 933,315 870,788 62,527 963,385 954,281 9,104
Auxiliary Funds Total $52,551,862 $46,922,427 $5,629,435 $54,337,362 $50,376,590 $3,960,722
These funds finance their own asset renewal and replacement.
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Ledger 3
* Interfund loan ($500,000) from Administrative Cost Recovery to cover FY17 Athletics deficit.
FY2016 Average Quarterly
Rate
FY 2016Annual
Rate
FY2017 Average Quarterly
Rate
FY2017 Annual
Rate
Double Room/Gold Meal Plan $3,422 $10,266 $3,648 $10,944
Single Room/Gold Meal Plan $3,722 $11,166 $3,948 $11,844
Housing and Dining Rates
$211
$211
$226
* Ave increase over PY 6.6% 6.7%
$
$226
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$
Increases in accordance with Housing & Dining long-term financial plan
Student Service and Activity Fee Fund
Sources FY2016 FY2017
S&A Fees (part of tuition) $6,717,484 7,026,102
Recreation Center Fee 2,200,000 2,200,000
PUB Renovation 2,200,000 2,200,000
Transportation Fee 609,000 609,000
Clubs (use of activity generated revenue) 205,900 205,900
Total Revenues $11,932,384 $12,241,002
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Ledger 3
Student Service and Activity Fee
Uses: As Recommended by Student Service and Activity Fee Committee
FY2016 FY2017
Debt Payments $2,929,918 $3,932,718
S&A Fee Allocation 3,146,992 3,351,118
PUB Fee Revenue to Renovation 3,000,000
PUB renewal and replacement 150,000 -
Transportation Contract 609,000 609,000
Transfer to Athletics 2,256,000 2,256,000
Financial Aid, Admin Cost 489,174 514,672
Clubs (use of activity generated revenue and reserve) 205,900 205,900
URC equipment replacement and facility improvements 445,000 455,000
Total Uses $10,231,984 $14,324,408
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Ledger 3
Athletics Budget
Revenue Expenses
Ledger 1 Support $5,247,895 $5,247,895
Ledger 3
Department Revenue 3,178,162
Student Support 2,256,000
Interfund Loan 500,000
Operating Expenses 5,920,974
Athletic Camps 915,000 915,000
Total $12,097,057 $12,083,869
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Ledger 1 and 3
Scholarships and Fellowships (Ledger 5)FY2016Budget
FY2017Budget
Federal Financial Aid Grants (includes Pell grant and the Supplemental Educational Opportunity Grant – SEOG)
$21,250,000 $21,750,000
State Financial Aid Grants (includes State Need Grant)
21,000,000 21,250,000
EWU Financial Aid Grants(includes EWU grant, endowed scholarships and license plate)
3,460,000 3,560,000
Private Financial Aid Grants (foundation endowed scholarships)
925,000 950,000
Total $46,635,000 $47,510,000
• Scholarships and Fellowships include funds for student aid programs, some federal and state aid programs and privately endowed scholarships.
• Funding levels assumed to remain relatively flat year-to-year.• Total increases driven by assumed enrollment growth rates.
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Sponsored Programs (Grants & Contracts)
FY2016Budget
FY2017Budget
Federal Research 5,155,000 5,205,000
State Research 2,690,000 3,505,000
Local Research 1,805,000 2,275,000
Private Research 2,905,000 2,670,000
Total 12,555,000 13,655,000
Funding and contracts are dependent on state and federal agency funding levels as well as the ability of local governmental and private agencies need for contracted services.
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Ledger 5
FY2016 FY2017 2015-17Education and General
General Fund State 38,689,000 48,098,000 86,787,000
Education Legacy Trust 8,304,000 8,414,000 16,718,000
Tuition Operating Fees 65,773,000 60,924,000 126,697,000
Recharges 2,378,773 2,378,773 4,757,546
Dedicated local Funds 41,157,571 41,843,534 83,001,105
Service Funds 3,177,342 3,511,732 6,689,074
Total Education and General 159,479,686 165,170,039 324,649,725
Auxiliary Enterprises 52,551,862 54,337,362 106,889,224
Scholarships & Fellowships 46,635,000 47,510,000 94,145,000
Sponsored programs 12,555,000 13,655,000 26,210,000
2015-17 Operating Revenues 271,221,548 280,672,401 551,893,949
FY2017 University Operating Budget
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Revenues- All Funds
FY2017 University Operating Budget
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Near General Fund State (001 & 08A)
18%Tuition Operating Fees23%
Recharges1%
Dedicated Local Funds17%
Service Funds1%
Auxiliary Enterprises18%
Scholarships & Fellowships
17%
Sponsored Programs5%
Expenditures
Near General Fund State (001 & 08A)Tuition Operating FeesRechargesDedicated Local FundsService FundsAuxiliary Enterprises
FY2016* FY2017 2015-17Education and General
General Fund State 38,689,000 48,098,000 86,787,000
Education Legacy Trust 8,304,000 8,414,000 16,718,000
Tuition Operating Fees 65,773,000 60,924,000 126,697,000
Recharges 2,378,773 2,378,773 4,757,546
Dedicated local Funds 47,102,000 45,284,355 92,386,355
Service Funds 3,264,465 3,503,023 6,767,488
Total Education and General 165,511,238 168,602,151 334,113,389
Auxiliary Enterprises 46,922,427 50,376,590 97,299,017
Scholarships & Fellowships 46,635,000 47,510,000 94,145,000
Sponsored programs 12,555,000 13,655,000 26,210,000
2015-17 Operating Budget 271,623,665 280,143,741 551,767,406
FY2017 University Operating Budget
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Expenditures- All Funds
For approval at June Board Meeting
*FY16 Budget includes adjustments in 2016 Supplemental Budget
Student Financial Impact
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Cost of Attendance – Resident Undergraduate On-Campus
FY2016 FY2017Tuition & Fees (Operating, Building and S&A Fee) $7,052 $6,110Course Fees 150 150Technology Fee 105 105Transportation Fee 45 60Comprehensive Health & Wellness Fee 274 286Student Recreation Center Fee 195 195Pence Union Building Fee 195 195Books & Supplies 1,095 900Total Educational Costs $9,111 $8,001Room & Board 10,263 10,945Transportation 1,350 1,125Personal Expense 1,860 2,055Total Living Costs $13,473 $14,125Total Cost of Attendance $22,584 $22,126
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ReappropriationsNew AppropriationsLocal Capital
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2015‐17 CAPITAL BUDGET
2015-17 Capital Budget
2015-17 BudgetReappropriation $8,126,000
New Appropriation $30,474,000
Total State Capital $38,600,000
Local Capital $47,660,000
FY2016 Capital Budget $86,260,000
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Capital Budget – Reappropriations
2015-17 Reappropriations
Upgrade/Repair Campus Water – 057,061 $5,453,000
Minor Works Preservation – 057, 061 2,673,000
Total Reappropriations $8,126,000
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Capital Budget – New Appropriations
2015-17 New Appropriations
Interdisciplinary Science Center (ISC)– design $4,791,000
Infrastructure Renewal 9,949,000
Science Building Renovations – pre-design 350,000
Minor Works Preservation 057,061 11,667,000
Minor Works Program 1,500,000
Preventive Maintenance 2,217,000
Total New Appropriations $30,474,000
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PUB Renovation
2015-17 Budget
Total Project Cost $44,300,000
Funding to the Project $9,300,000
Estimated Financed Amount $35,000,000
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2015-17 Capital Budget – Local Capital
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Local Capital 2015-17 FY2016 FY2017 2015-17
*PUB Renovation $2,600,000 $41,700,000 $44,300,000
Housing Renewal and Replacement 700,000 735,000 1,435,000
Dining Renewal and Replacement 420,000 400,000 820,000
EWU Recreation Center 295,000 330,000 625,000
URC Facility Improvements 150,000 125,000 275,000
Parking Lot Repair and Maintenance 70,000 35,000 105,000
Telephone Upgrade & Improvements 100,000 - 100,000
Total $4,335,000 $43,325,000 $47,660,000
*FY16 - PUB Design
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