Financial Overviewand Budget Recommendations

David CumminsVice President for Financeand Administration/CFO

Mike ShermanSenior Vice President and Provost; Chief Operating Officer

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Overview: FY12 General Fund Revenues

Investment/endowment income, 1% [$2M]

Departmental sales, 4% [$14M]

Other, 2% [$6M]• Indirect cost

recovery

• Quaker Sq. lease payments

• Overhead reimbursement from foundation

Tuition and fees, 69% [$271M]

State appropriations, 23% [$90M]

Transfer-in from FY11 underspend, 2% [$8M]

General Fund revenue comes from two

primary sources: Tuition/fees and state

appropriations. UA expects about $15M

less in state appropriations.

The General Fund pays for instruction,

research, public service, academic

support, student services and other

activities.

The general fund does not pay for:

1. Auxiliary Services (parking, dining,

retail, etc.)

2. Residential Life and Housing

3. Most Capital projects

GENERAL FUND REVENUE, FY12 BUDGET

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Overview: FY12 Proposed Expenditures

Personnel, including Dept. Sales, 42% [$164M]

Fringe benefits, including Dept. Sales, 15% [$60M]

Scholarships, including GA fee remissions, 10% [$39M]

Auxiliary support, 9% [$37M]

Central funded operational support, 8% [$29M]

Non-personnel academic, 3% [$11M]

Non-personnel academic support, 3% [$13M]

Operations supported with dedicated fees, 3% [$13M]

Departmental sales, non-personnel only, 2% [$10M]

Debt retirement, 2% [$9M]

Transfer to reserves, 2% [$6M]

GENERAL FUND EXPENDITURES, FY12 BUDGET

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Since 1987, the cost of higher education has shifted from the state to the student.

Overview: State Support and Tuition since 1987

19872012

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Budget Recommendations for FY2012

• $15M reduction in state funding

• Increase in tuition of 3.5%

• Projected increase in student credit hours of instruction 3.5%

• Transfer from FY11 to FY12 under-spending of $8.4 million

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Major Changes in Revenue, FY11 vs. FY12

Image (to come)

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FY12 Budget: Effect on Units

Colleges = average reduction of 2%

Academic Support Units = average reduction of 4%

UNIT BUDGETS TO BE DETERMINED STRATEGICALLY BY:

1. Alignment with the strategic-plan priorities

2. Enrollment growth in recent years

3. Growth in budget over recent years

STRATEGICINVESTMENTS, 39%

CAPACITY AND EXCELLENCE

ASSURANCE, 51%

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FISCAL INTEGRITY, 10%

Major Changes in Expenditures, FY12 vs. FY11

FUNDING ENHANCEMENTS

$20 million

CAPACITY AND EXCELLENCE ASSURANCE

• Compensation adjustments

• Support for extended locations: Lakewood, Medina, etc.

• Additional graduate student fee remissions

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FY12 Budget: Priority I

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FY12 Budget: Priority II

STRATEGIC INVESTMENTS

• Increase scholarship pool proportionally to tuition increase

• New student scholarships:

• Pell-eligible continuing students who were ineligible for general scholarships on admission, but since have earned a cumulative 3.0 with a two-semester, full-course load

• Select new freshmen with an ACT of 21 and a 3.0 or better

• New freshmen with ACT between 22-26

• Increase full-time faculty

• Start-up funds

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FY12 Budget: Priority III

FISCAL INTEGRITY

• Ensure appropriate reserves [Ohio Senate Bill 6 ratio of 2.5 or greater]

• Build the reserve

• Build a fund to enhance facilities

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FY12 budget: New investments

Funding enhancements = $20M

NEW INVESTMENTS TO BE WEIGHED BY:

1. Alignment with the strategic plan’s priorities

2. Viability of unit’s proposal to meet criteria of Fiscal Integrity, Capacity and Excellence Assurance, and Strategic Investments

Change from FY10: – 5.6%

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Our Budget: Selected Cost Containment Measure

Our move to self-insurance in FY11 has helped contain healthcare costs.G

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Questions?

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