www.uwplatt.edu uw-platteville convocation robert cramer vice chancellor august 2012
TRANSCRIPT
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UW-Platteville Convocation
Robert CramerVice Chancel lor
August 2012
h t t p : / / w w w. u w p l a t t . e d u / b u d g e t /p re s e n t a t i o n s . h t m l
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Financial Results 2011-12
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General Purpose Revenue (GPR) – includes general funding, specific purpose funding, and earmarked funding from the state, primarily from state sales and income taxes
Program Revenue (PR) – includes tuition, auxiliaries, and segregated fees, as revenues received for services or from users
Federal Revenue (PR-F) – includes federal grants, financial aid, direct loans, as revenues from a federal agency
Segregated Funds (SEG) – includes transportation fund and other separate state accounts, credited by law to a specific state fund
Gifts and Grants – includes revenues from the Foundation, non federal grants
Budget Definitions
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All Funds Summary (Cash Basis)Beginning Cash $ 23,128,452Total Revenue $127,981,774 Total Expenses $126,913,276Net Income $ 1,068,498
Excluding direct student loan amountsClosing Balance $ 24,196,950
Preliminary Ending Financial Position
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Fund 102 $4,426,218(General operations, tuition revenue, base of $47 million)
Fund 123 $4,001,400 (Debt service, $4 M base)Fund 128 $4,096,650
(Dining, housing, parking, base of $25 million)Fund 131 $8,474,838
(DLC, School of Ed Cost Recovery, TSI, base of $15 million)Fund 136 $1,693,089
(Similar to 128, HTCP, camps & conferences, base of $3.7 million)
Select Fund Balances
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Carry Over Balances by College/Division
Chancellor & Diversity 15,487.00 Provost 109,389.00 Administrative Services 189,992.00 Graduate Studies & Library 40,518.00 Student Affairs 22,800.00 Advancement/Development 153,796.00 Admissions & Enrollment Services 48,262.00 LAE 40,212.00 BILSA 171,683.00 EMS 699,780.00 Budget Lapse 312,841.00
Grand Total Carryover***1,804,760.0
0 ***Excludes accounts that automatically carryover (i.e. Fund 128, 136, some 131)
New Budget Tool – Carry Overs
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Financial Metrics Expense Ratio – the annual expenses divided by annual
revenue – less than one means that all of the current year’s income was not spent
Composite Financial Index – four financial ratios, weighted and combined into one, with values between -4 and 10 that measure the overall financial health of an institution
Primary Reserve Ratio – expendable net assets divided by annual expenses – measures how long the institution could rely on reserves to meet operational costs
Financial Health Measures
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Expense Ratio is an indication of the University’s ability to cover the expenses endured by cash inflow.
(less than 1.0 is desirable)
2010-11 2011-12 (PRELIM) 0.9000
1.0000
1.1000
1.0110.992
Expense Ratio – Spending / Revenue
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Combines 4 weighted ratios to provide a snapshot of overall financial health of the University
1) Primary Reserve Ratio: Are resources sufficient and flexible enough to support the mission?
2) Net Operating Revenue Ratio: Do operating results indicate the institution is living with available resources?
3) Return on Net Assets Ratio: Does asset performance and management support the strategic direction?
4) Viability Ratio: Are resources, including debt, managed strategically to advance the mission?
Composite Financial Index
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2007 2008 2009 2010 2011
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
0.970.7 0.75 0.88 0.84
0.01
-0.1
0.660
-0.08
1.81
0.38
0.92
0.47
0.06
0.5
0.32
0.37
0.42
0.45
CFI Trend with Benchmark
Viabililty RatioReturn on Net Assets RatioNet Operating Revenue RatioPrimary Reserve Ratio
HLC Benchmark = 3.00
CFI Trend and Components
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Computed by comparing expendable net assets, including those invested in plant, to total expenses. Results represent the fraction of a year, showing
how long the University could function without income.
2007 2008 2009 2010 20110.2
0.25
0.3
0.35
0.4
0.45
Primary Reserve Ratio HLC Benchmark
Primary Reserve Ratio
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Total Cost per Student FTE
Cost Per Student FTE
Definition: Fund 102 & 131 (less Distance Learning) divided by number of full-time equivalent students
2007-08 2008-09 2009-10 2010-11 2011-12 $6,000.00
$6,500.00
$7,000.00
$7,500.00
$8,000.00
$8,500.00 $
8,0
96
.13
$7
,86
5.5
1
$8
,17
0.2
0
$8
,08
6.9
2
$8
,14
4.5
9
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2007-08 2008-09 2009-10 2010-11 2011-12 $-
$1,000.00
$2,000.00
$3,000.00
$4,000.00
$5,000.00
$6,000.00
$7,000.00
$5
,56
3.4
5
$5
,75
8.5
6
$5
,30
9.4
1
$5
,18
9.8
2
$4
,29
6.9
8
Per
Resi
dent
Stu
dent
Am
ount
Annual Average: $5,224
State Funds / Resident FTE
Definition: All GPR Funds Expenses / Resident FTE
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State funding of 40%
Final 2001-2002 UW-Platteville Budget $73.6 Million
2001-02 Budget
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General Purpose Tax Dollars17013631
11%
Specific Purpose Tax Dollars10913119
7%
Tuition48544731
30%Federal
4915571031%
Gifts and Grants1216604
1%
Auxiliary Enter-prises
32967056.995430221%
Extension591846
0%
StateFundingof 18%
2011-12 Budget - $160.4 million All Funds
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2012-13 Budget
Final 2012-2013 UW-Platteville Budget $172.6 Million (all funds)
Final 2012-2013 UW-Platteville Budget$126.1 Million (excluding federal aid)
General Pur-pose Tax Dol-
lars17004951
13%
Specific Pur-pose Tax Dol-
lars11452271
9%
Tuition53804157
43%
Federal1646700
1%
Gifts and Grants
13149001%
Auxiliary En-terprises
4024233532% Extension
6161850%
State Funding of 22%
State Funding of 17%
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Total enrollment is approaching 7,700 students this year (1,650 new freshmen)
TSI enrollment approaching 1,400 students with revenues of $13.5 million (510 new students)
Registrations for online programs are now over 2,900
UW-Platteville is now a tuition-driven institution - $53 million this year (almost twice the amount provided by the state)
Enrollment and Finances
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Looking Forward
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Regulations and State / Federal Oversight Continue
Slow Economic Growth Continues Pressure on State Funding and Tuition
Disruptions From New Education ModelsDemographic ChangesLearner Expectations
Key Challenges
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Flexibility provided in 2011-13 biennial budget turns out to be modest and slow to implement
Modest recommendations from the statewide UW System Restructuring Task Force
Federal regulations will expand following Penn State and the focus on student debt and tuition
Universities create own regulatory environment internally as pressures mount
Regulatory Environment
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United States
EU-15 Japan China India Latin America
World-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Real GDP Growth 2012 Real GDP Growth 2013-2016Real GDP Growth 2017-2025
Source: The Conference Board Global Economic Outlook 2012
Projected US and Global Economic Growth Rates
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Disruptions continue and new educational models will be tried UDACITY, Coursera, and other MOOCS (massive
open online courses) UW System Flexible Degree Program “Flipping” the Classroom
Interesting Description of the Future - http://epic2020.org/
New Educational Models
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The number of high school graduates will continue to change by region
Nontraditional students will be a larger percentage of students in higher education
Hispanic students represent the fastest growing group of high school graduates
Continuing Demographic Changes
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Projected High School Graduates by Region
2008-09
2020-21
- 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000
SouthNortheastMidwestWest
Source: The College of 2020: Students Chronicle Research Services
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Growing Number of Nontraditional Students
2009
2017
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000
Over 29 years old25-29 years old18-24 years old
Source: The College of 2020: Students Chronicle Research Services
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Changing Ethnic Make-up of High School Graduates
American Indian/Alaska Native
Asian/Pacific Islander
Black non-Hispanic
Hispanic
White non-Hispanic
0% 10% 20% 30% 40% 50% 60% 70%
2021-222010-11
Source: The College of 2020: Students Chronicle Research Services
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Bring Your Own Device World (BYOD)Anytime Anywhere Access to MaterialseBooks coming to a high school near youKhan Academy has content for K-12
studentsQuick feedback via learning
management systems such as D2L
Learner Expectations
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Acknowledge the brutal reality of the situation and move forward: Strategic Planning Expanding Our Sources of
Revenue Controlling Existing Costs
Opportunities to Control Our Own Destiny
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Draft plan presented in April and MaySteering Committee is updating drafts based
on feedbackAdditional sessions in August and September
including offer to meet with every departmentCampus forums in September and OctoberFinalize plan in NovemberDetails at http://www.uwplatt.edu/planning/
Strategic Planning
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Proposing a new mission, vision and four strategic priorities
Ensure plan leads to action through a steering committee that connects planning with budgets
Initiate a review of how we need to budget so that we allocate funds based on the plan and not past practices
Strategic Planning (continued)
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DRAFT Strategic Priorities
Provide a Distinctive EducationFoster a Community of
Achievement and RespectControl Our Own DestinyEnrich the Tri-State Region
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Robert Cramer, Vice Chancellor for Administrative Services – Executive Sponsor
Donna Anderson, Academic Staff Wendy Brooke, College of BILSA Dennis Cooley, Assistant
Chancellor for University Development
Dawn Drake, Director of Distance Education
Melissa Gormley, College of LAE
Annie Kinwa-Muzinga, College of BILSA
Mittie Nimocks, Provost Kassie Popp, Student
Senate David Schuler, College of
LAE Yan Shi, College of EMS Becky Troy, Classified Staff Angela Udelhofen,
Assistant Chancellor for Admissions
Joanne Wilson, Interim Assistant Chancellor for Student Affairs
Timothy Zauche, College of EMS
Strategic Planning Steering Committee
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Targeted growth through enrollment management
Identifying new opportunities and markets
Leveraging our strengths with new partners
Expanding Our Sources of Revenue
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Huron review of information technology and classroom management
Energy efficiency auditsPartnering with the Real Estate
FoundationBusiness Process Improvements to free
up time
Controlling Existing Costs
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UW-Platteville cannot stand still
Conclusion