the university of michigan communication subject: …

THE UNIVERSITY OF MICHIGAN REGENTS COMMUNICATION

Action Item

Subject: FY 2019-2020 Budgets

Action Requested: Approval of Revenue and Expenditure Operating Budgets for FY 2019-2020

Background and Summary:

The three campuses of the University of Michigan have developed budgets for the 2019-2020 fiscal year. At this time, we are presenting summary revenue and expenditure budgets for the General Fund, Designated Fund, Auxiliary Activities, and Expendable Restricted Fund. These budgets conform to all University policies.

We recommend that the following summary revenue and expenditure budgets be approved effective July 1, 2019 for the period July 1, 2019 through June 30, 2020.

Revenue Bud!et: Ann Arbor Dearborn Flint Total

General Fund $ 2,307,881 $ 162,300 $ 117,657 $ 2,587,838 Designated Fund 232,028 1,020 1,340 234,388 Auxiliary Activities 5,699,783 1,770 5,260 5,706,813 Expendable Restricted 1,398,915 22,500 21,730 1,443,145

Totals $ 9,638,606 $ 187,590 $ 145,987 $ 9,972,183

ExJ!nditure Budget: Ann Arbor Dearborn Flint Total General Fund $ 2,307,881 $ 162,300 $ 117,657 $ 2,587,838 Designated Fund 232,028 1,020 1,340 234,388 Auxiliary Activities 5,730,165 1,770 5,260 5,737,195 Expendable Restricted 1,383,915 22,500 21,730 1,428,145

Totals $ 9,653,988 $ 187,590 $ 145,987 $ 9,987,565

Note: Budget amounts are shown in thousands. Detail may not add exactly to totals due to rounding.

President and Chief Financial Officer

June 2019

Pro st and Executive Vice President for cademic Affairs

MarschaU S. Runge Executive Vice President for Medical Affairs and Dean of the Medical School

cshankle

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Approved by the Regents June 20, 2019


ACTION REQUEST

Subject: Proposed Ann Arbor fiscal year 20 19-2020 General Fund Operating Budget and Student Tuition and Fee Rates

Action Requested: Approval

Background:

The attached document includes the fiscal year 2019-2020 General Fund budget proposal for the Ann Arbor campus. This budget proposal incorporates the proposed 2019-2020 student tuition and fee rates for the Ann Arbor campus as listed in the attached fee schedule.

It is recommended that the Board of Regents approve this General Fund operating budget effective July 1, 2019 for the period July 1, 2019 through June 30, 2020, and the schedule of tuition and required fees.

Prov stand Executive Vice President for Academic Affairs

June 20, 2019 Attachments

cshankle

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FY2020 BUDGET NARRATIVE

Executive Summary The University of Michigan continues its focus on academic excellence and affordability in FY2020. The FY2020 budget recommendation is crafted to provide a balanced budget while meeting the university’s top priorities. Academic Excellence. Our FY20 budget proposes key investments in the undergraduate experience, hiring and retention of faculty, and additional priorites that increase excellence across the Ann Arbor campus. Accessibility. The budget recommendation continues our commitment to provide all in-state students with a financial aid package that meets 100 percent of demonstrated financial need. Fiscal Discipline. The university maintains a steady focus on cost containment. In addition to finding low-priority areas to discontinue, we strategically employ philanthropy to relieve general fund expenses and continue to develop alternative revenue streams. Our budgetary goals are attainable with a modest tuition increase. Our proposed tuition plan is as follows: An undergraduate tuition increase of 1.9 percent – $296 a year in many cases – for in-state students. The increase for out-of-state undergraduate students would be 3.7 percent. Tuition for most graduate programs would increase 3.2 percent. A limited number of differential increases also are recommended for specific programs. Introduction & Context The 2020 fiscal year general fund budget recommendation for University of Michigan-Ann Arbor maintains our longstanding focus on academic excellence, access and affordability, and fiscal discipline. The context of the fiscal year 2020 budget is shaped by several factors: FY20 State funding. At this time the FY20 state appropriation has not been determined. Annual support from the state is critical to our budget, and increases in appropriations are typically allocated to help the university to meet mandatory and inflationary cost increases. While we await a final appropriation decision we have modeled a modest 1.5 percent increase. Growth in enrollment. Enrollment in FY20 is projected to grow modestly at the undergraduate level. We also expect graduate enrollment to increase, including students joining new online programs. This growth requires some new investments to accommodate student needs and investments in staff and infrastructure to support online courses.

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Ongoing SES Aid initiatives. U-M has made substantial commitments to keep U-M affordable for families from Michigan. This includes programs such as the Go Blue Guarantee, which promises free tuition for students from families at or below $65,000 in income and tuition support for students from families with incomes up to $180,000. The FY20 budget includes funds to meet the growing costs of these commitments. Compliance. U-M’s commitment to safety, integrity, and legal and regulatory compliance leads us to provide increased resources for these areas in FY2020. Strategic funding for new initiatives. New investment in strategically important areas is a top annual budget priority. We have identified key areas for new and increased funding that will strengthen our tradition of academic excellence. Units will continue to rely on their long practice of reallocating and finding alternative revenue to fund their highest priority initiatives. Investments in Academic Excellence U-M stands as one of the world's leading teaching and research universities. We take seriously our responsibility to preserve the university’s stature through investments that foster excellence. With our ongoing commitment to affordability, we must be focused and strategic in our efforts to innovate and pursue increasing levels of academic excellence and impact. The FY2020 budget recommendation therefore includes resources for several major initiatives that further enhance the university’s academic excellence. Foremost among them are:

• Investments in undergraduate education and student success • Additional faculty investments • Research and Discovery • Compliance • Other critical investments in excellence

We discuss below the impetus for several initiatives and share examples of new and ongoing investments. Investments in undergraduate education Engaged learning. The University continues to invest in valuable opportunities for students to integrate learning and apply their coursework to complex real-world problems. Michigan Ross is extending their successful Impact Studio initiative to undergraduates. The Studio brings together students from multiple schools to translate insights from Michigan faculty research into practical solutions for the world’s most pressing challenges. The University will also be increasing its investment in living learning communities such as the innovative Living Arts on North Campus, which promotes creative innovation across disciplinary boundaries. Underclassmen who

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participate in the university’s Undergraduate Research Opportunity Program (UROP) will see new opportunities this year to conduct research with governmental and community organizations. Quantitative Methods and Social Sciences (QMSS) initiative. The College of Literature, Science, and the Arts is offering a new minor for undergraduates as part of its ongoing QMSS program. Students can leverage U-M’s strengths in data science and social sciences, developing proficiency in data-intensive analyses of social phenomena. U-M is in a unique position to provide undergraduates students with this credential and skills that are in high demand in industry and academe. Student success. The university continues to offer a broad array of services to promote student success. They ensure students persist and graduate on time with a college experience that reflects involvement, personal and professional development, and academic accomplishments. One important academic resource is the Science Learning Center, where the university is increasing funding for peer tutoring and other student-to-student support. Investments in faculty Faculty hiring to keep pace with growth. As enrollment grows, the university must also add to its faculty ranks to maintain appropriate class size. Several units will be adding faculty to contribute to the strength and vitality of scholarship on campus, maintain a favorable student-faculty ratio and preserve student access to the exceptional teaching, scholarship and mentoring they expect at U-M. Key strategic hires are planned in Biosciences, Computer Science & Engineering, Data Science, and Environment and Sustainability. Faculty retention. Our world-class faculty are highly sought-after by other institutions, particularly in growth areas like engineering and computer science. Increasingly we also compete with industry for top faculty scholars in these fields as well as in business and artificial intelligence. To retain faculty and maintain its excellence, the university must be proactive about providing competitive compensation and research facilities for faculty, and be prepared to offer strong retention packages. Innovative research and discovery. Our $1.5 billion in total research expenditures places U-M as the top public research university in the nation. The FY2020 budget aims to make strategic, targeted investments across campus that provide key infrastructure and resources to sustain U-M’s research strength into the future. For example, in FY20 the School of Social Work is increasing investment in the Child and Adolescent Data lab, which promotes evidence-based decision making in children’s policy in Michigan. The College of Engineering is adding $2.5 million in support in FY20 for “Blue Sky” Initiatives, designed to advance daring and transformational ideas. The Institute for Social Research is dedicating funds to launch the first Virtual Branch of the Federal Statistic Research Data Centers. The virtual FSRDC will provide Michigan

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researchers and their collaborators around the country with state-of-the art access to data and secure U-M’s centrality in secure virtual research computing. Compliance. The university operates in an increasing complex regulatory environment. We maintain an unwavering commitment to operating with accountability and maintaining a culture of compliance, integrity, and ethical conduct. In FY2020, we are strengthening our investments in key areas of compliance and risk management. We are adding staff in research compliance and hiring additional investigators for the office responsible for reviewing allegations of harassment, discrimination and sexual misconduct. The university is also launching mandatory online training for all faculty and staff to emphasize our strong commitment to eliminating sexual misconduct.

Other critical components of excellence The proposed FY2020 budget includes additional investments in ongoing programs and initiatives that cross broad categories and are judged essential for our excellence. Library collections. Our world-class library collections are fundamental to scholarship and teaching. Our broad-reaching archives and collections, together with well-qualified librarians and curators, support and accelerate new discoveries. They also fulfill the essential mission of preserving our knowledge, our culture and the university’s considerable intellectual heritage for future students and scholars. The university is providing an additional investment for collections in FY2020. Learning technology. The University of Michigan is committed to providing a top academic technology environment to the U-M community. Cutting-edge resources increase engagement, efficiency, and flexibility in teaching and learning while allowing students to engage with material in innovative ways. The university’s substantial ongoing investment in this area includes FY2020 funding to locate a hub for Augmented and Virtual Reality (AVR) Technologies in the Duderstadt Center. As a central resource located in a high-traffic teaching and learning center, the hub aims to advance the use of hands-on, immersive technology across the curriculum. Access and affordability The FY20 budget proposal supports the university’s unflagging commitment to making a U-M education accessible to all, regardless of financial means. Strengthening socioeconomic diversity. The budget includes continued funding for HAIL Scholarships, the Go Blue Guarantee, and Wolverine Pathways. Our financial aid commitments ensure that a U-M degree is in reach for all families in Michigan. The FY20 budget recommendation includes an 11.2 percent increase in the undergraduate aid budget to ensure we can cover our aid commitments for all who qualify for the Go Blue Guarantee and other need-based aid.

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Net price. Many students pay less than the published cost of attendance. “Net price” captures what families pay after grant aid has been applied. In the last decade, our central undergraduate financial aid budget has seen a compound annual growth rate of 12 percent, allowing us to reduce the net price for families with need. The success of this investment, and our long-standing policy of meeting full demonstrated need for in-state students from all income levels, has had a striking effect on net price over time, making U-M increasingly affordable. We have done this by replacing loan dollars – money that students must eventually repay – with grant dollars, which are not repaid, decreasing student debt. Sticker price. All in-state students, regardless of their aid status, qualify for a heavily discounted resident tuition rate. This makes the world-class U-M experience a substantial bargain for Michigan families. Non-resident students are not entitled to the state-subsidized discount represented in our resident rates. However, the university weighs carefully the value of a U-M degree and nonresident tuition rates compare favorably to private peers. Fiscal discipline The goals of this budget plan could not be attained without ongoing fiscal discipline. The university typically faces unavoidable cost increases in areas such as compliance, insurance, health care benefits and supplies, and the FY2020 budget is no exception. However, U-M mitigates these budget pressures with a focus on cost containment and a holistic approach to reducing the cost of operations. These strategies allow the university to meet its increased costs and make new investments, without making the cost of a U-M education unaffordable. The FY2020 budget recommendation contains substantial savings realized through

• reductions and reallocations • shifting general fund expenses to other sources of income • cultivating new revenue streams

For example, the Medical School will be saving $300,000 through work redesign, enabling the school to leave open administrative positions unfilled. The Office of Research is planning similar strategy to save $250,000. The School of Nursing is reducing redundant course offerings and eliminating low-enrollment electives, freeing up $340,000 for higher priorities. Philanthropic giving plays a critical role in providing units the flexibility to shift costs off the general fund. Gift funds help cover variety of costs, such as support for engaged learning opportunities and increased aid that attracts the very best talent to U-M’s campus. Units also continue their work in increasing revenue from a range of initiatives such continuing education and online learning.

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Through these strategic efforts schools, colleges, and units across the campus have identified $27 million in funds to direct toward new, high-priority initiatives in FY2020. Once implemented, these reductions will mean that since 2004, over $433 million in recurring expenses will have been trimmed from the general fund budget, allowing resources to be reallocated to higher priorities and substantially reducing the pressure for higher tuition increases. Budgeted 2020 General Fund Revenues Components of the General Fund. The general fund is the primary source of support for the academic mission of the university. The general fund has three main sources: Tuition, the state appropriation, and indirect cost recovery on sponsored research. Indirect cost recovery pays specifically for the indirect costs of research, so it cannot be allocated for other uses. Amidst the uncertainty in the state appropriations decision at the time of our budget development, the university is planning its budget based on an FY2020 state appropriation of $325.5 million, a 1.5 percent increase over FY2019 funding. In incremental terms, this would provide an additional $4.7 million in funds. We are grateful for this state support. However, state funding has been in long-term decline when measured in real dollars. This has put increasing pressure on our other sources of funding, including tuition. Tuition is, in most years, the last part of the budget to be determined. The university models expected tuition revenue based on projected enrollment and residency, and proposes the lowest tuition rate increases necessary to meet the university’s priorities, to preserve its excellence, and maintain fiscal stability. Moderate increases in tuition. The budget recommends a lower-division, undergraduate tuition increase of $296 a year – 1.9 percent – for in-state students. The increase for out-of-state undergraduate students would be 3.7 percent. Tuition for most graduate programs would increase 3.2 percent. A limited number of differential increases also are recommended for specific programs. (See Tuition and Fee Schedule) Additionally, beginning in FY2020 international students will be levied a $500-per-term fee. Revenue from the fee will assist in covering the costs of compliance and sustaining services associated with international students. We note that while our tuition recommendation is driven by carefully calculated budgetary needs, we consider resident tuition rates in context of state governance, economic conditions, and families’ ability to meet any increased cost of attendance. Our recommended in-state tuition increase is well below the three-year average annual growth rate in Michigan personal income of 3.1 percent. Our aid policies mean that most in-state undergraduates with need will experience no net increase in tuition costs.

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Summary The budget recommendation for the Ann Arbor campus is a carefully balanced spending plan. It aims to provide the resources necessary to advance the academic excellence of a world-class institution while maintaining access for a wide range of students. The proposed FY20 budget leverages our revenue sources through our commitment to financial discipline, the accumulating benefits of cost containment, continuing to demand efficiency, and strategic development and use of new revenue streams. The $2.31 billion FY2020 general fund budget, detailed in Table 1, is based on a state appropriation of $325.5 million, an incremental $27 million in cost containment and reallocation and a recommended lower-division, undergraduate tuition increase of 1.9 percent for in-state students and 3.7 percent for out-of-state undergraduate students with an increase for most graduate programs of 3.2 percent.

Table 1

FY 2019 Proposed General Fund Budget

Table 1

The University of Michigan - Ann ArborProposed General Fund Budget

Fiscal Year 2019-20

Average AnnualizedFY 2019 Recommended FY 2020 3 Year

Adjusted Budget ** Change Budget % Change % ChangeRevenue BudgetsState Appropriation 320,782,400 4,749,100 325,531,500 1.5% 1.8%Tuition and Fees 1,597,253,524 97,233,628 1,694,487,152 6.1% 6.7%Indirect Cost Recovery 253,194,825 23,922,354 277,117,179 9.4% 6.9%Other Revenue 9,845,000 900,000 10,745,000 9.1% 3.8% Total Revenues 2,181,075,749 126,805,082 2,307,880,831 5.8% 6.0%

Expenditure Budgets by UnitA. Alfred Taubman College of Architecture & Urban Planning 21,727,648 (157,700) 21,569,948 -0.7% -0.7%Penny W. Stamps School of Art & Design 13,858,859 1,023,608 14,882,467 7.4% 5.6%Stephen M. Ross School of Business 116,414,165 7,863,494 124,277,659 6.8% 9.5%School of Dentistry 36,222,850 1,439,541 37,662,391 4.0% 4.5%School of Education 19,415,472 (224,594) 19,190,878 -1.2% -0.3%College of Engineering 240,790,528 8,537,424 249,327,952 3.5% 7.0%School of Information 25,681,785 5,178,276 30,860,061 20.2% 15.6%School of Kinesiology 18,635,791 1,339,633 19,975,424 7.2% 6.6%Law School 49,709,407 4,722,671 54,432,078 9.5% 8.4%College of Literature, Science and the Arts 423,292,736 24,907,755 448,200,491 5.9% 4.7%Medical School 93,282,774 12,884,312 106,167,086 13.8% 8.1%School of Music, Theatre & Dance 41,129,964 54,356 41,184,320 0.1% 2.4%School for Environment and Sustainability 17,941,591 1,747,547 19,689,138 9.7% 15.3%School of Nursing 22,509,024 911,675 23,420,699 4.1% 7.1%College of Pharmacy 17,740,460 1,842,808 19,583,268 10.4% 7.3%School of Public Health 42,880,548 4,792,306 47,672,854 11.2% 11.1%Gerald R. Ford School of Public Policy 15,239,373 749,322 15,988,695 4.9% 8.4%School of Social Work 25,474,157 846,621 26,320,778 3.3% 5.8%Horace H. Rackham School of Graduate Studies 10,301,937 191,053 10,492,990 1.9% 3.2%University Academic Units 75,788,607 3,891,715 79,680,322 5.1% 4.0%Research Units 5,548,980 844,695 6,393,675 15.2% 7.5%Academic Program Support 86,157,606 444,628 86,602,234 0.5% 2.1%Capital Renewal Fund 49,765,625 903,973 50,669,598 1.8% 2.4%TOTAL ACADEMIC 1,469,509,887 84,735,119 1,554,245,006 5.8% 5.9%

President 2,416,290 54,607 2,470,897 2.3% 2.5%Provost & Executive Vice President for Academic Affairs 38,479,524 1,960,813 40,440,337 5.1% 4.2%Executive Vice President & Chief Financial Officer 128,240,898 5,912,141 134,153,039 4.6% 4.5%Division of Public Safety & Security 11,733,424 739,378 12,472,802 6.3% 5.5%Vice President for Communications 7,770,488 358,348 8,128,836 4.6% 3.7%Vice President & General Counsel 4,513,286 272,434 4,785,720 6.0% 6.5%Vice President for Government Relations 2,323,117 115,274 2,438,391 5.0% 5.5%Vice President for Information Technology & Chief Information Officer 55,493,389 1,722,161 57,215,550 3.1% 3.6%Vice President for Research - Support Units 29,831,073 864,313 30,695,386 2.9% 3.9%Vice President & Secretary of the University 861,383 50,908 912,291 5.9% 4.1%Vice President for Student Life 20,849,006 851,999 21,701,005 4.1% 4.8%TOTAL EXECUTIVE OFFICER AND SERVICE UNITS 302,511,878 12,902,376 315,414,254 4.3% 4.3%

Rackham Financial Aid 56,516,448 1,808,526 58,324,974 3.2% 3.5%Undergraduate Financial Aid 205,600,426 23,001,092 228,601,518 11.2% 12.3%TOTAL CENTRAL FINANCIAL AID 262,116,874 24,809,618 286,926,492 9.5% 10.3%

General University Support 41,964,193 1,008,409 42,972,602 2.4% 3.6%Utilities 67,857,292 874,805 68,732,097 1.3% 0.7%Insurance 10,216,181 1,091,926 11,308,107 10.7% 5.0%North Campus Research Complex 16,717,240 (145,490) 16,571,750 -0.9% 3.4%Legal and Professional Fees 369,031 0 369,031 0.0% 0.0%Ceremonial and Presidential Events 813,173 628,319 1,441,492 77.3% 25.4%Departmental Income 8,400,000 900,000 9,300,000 10.7% 9.9%Staff Benefits Pool 600,000 0 600,000 0.0% 0.0%UNIVERSITY ITEMS 146,937,110 4,357,969 151,295,079 3.0% 2.7%

Total Expenditures 2,181,075,749 126,805,082 2,307,880,831 5.8% 6.0%

** Transfers between units are incorporated in the FY 2019 Adjusted Budget

FY 2019 Student Tuition and Fee Rates

The University of Michigan- Ann ArborTuition and Fees Schedule

Total % Change in Tuition and All Required Fees

UNDERGRADUATE RESIDENT

Lower Division ** $7,631 $7,779 $148 1.9%Stephen M. Ross School of Business 8,090 8,247 157 1.9%Dentistry 7,772 7,923 151 1.9%Engineering 8,161 8,320 159 1.9%Kinesiology 8,049 8,205 156 1.9%Music, Theatre and Dance 7,933 8,087 154 1.9%

Upper Division ** 8,594 8,761 167 1.9%Stephen M. Ross School of Business 10,205 10,404 199 1.9%Dentistry 8,741 8,911 170 1.9%Engineering 10,524 10,729 205 1.9%Kinesiology 9,228 9,407 179 1.9%Music, Theatre and Dance 8,894 9,067 173 1.9%

UNDERGRADUATE NON-RESIDENT

Lower Division ** 24,675 25,600 925 3.7%Stephen M. Ross School of Business 25,092 26,032 940 3.7%Dentistry 24,820 25,750 930 3.7%Engineering 24,820 25,750 930 3.7%Kinesiology 26,231 27,214 983 3.7%Music, Theatre and Dance 25,003 25,940 937 3.7%

Upper Division ** 26,407 27,397 990 3.7%Stephen M. Ross School of Business 28,078 29,130 1,052 3.7%Dentistry 26,558 27,553 995 3.7%Engineering 27,852 28,896 1,044 3.7%Kinesiology 28,648 29,722 1,074 3.7%Music, Theatre and Dance 26,733 27,735 1,002 3.7%

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** Includes A. Alfred Taubman College of Architecture & Urban Planning; Penny W. Stamps School of Art and Design; Literature Science, and the Arts; Nursing; and Pharmacy. For upper division only, includes Education; Information; Medicine; Gerald R. Ford School of Public Policy; and Public Health.

Total Tuition & Required Fees *

Current Rates Per Term

Proposed Rates Per Term -- Fall 2019


Total $ Change in Tuition and All Required Fees

Rates per term include $185.00 Infrastructure Maintenance Fee; Health Service Fee of $198.62; $80.00 Registration Fee; $65.00 University Unions and Recreational Sports Facility Improvement Fee; $9.19 Central Student Government Fee; $8.50 Student Legal Services Fee; and a $1.50 School/College Government Fee.

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UNDERGRADUATE INTERNATIONAL

Lower Division *** 24,675 26,100 1,425 5.8%Stephen M. Ross School of Business 25,092 26,532 1,440 5.7%Dentistry 24,820 26,250 1,430 5.8%Engineering 24,820 26,250 1,430 5.8%Kinesiology 26,231 27,714 1,483 5.7%Music, Theatre and Dance 25,003 26,440 1,437 5.7%

Upper Division *** 26,407 27,897 1,490 5.6%Stephen M. Ross School of Business 28,078 29,630 1,552 5.5%Dentistry 26,558 28,053 1,495 5.6%Engineering 27,852 29,396 1,544 5.5%Kinesiology 28,648 30,222 1,574 5.5%Music, Theatre and Dance 26,733 28,235 1,502 5.6%

*

***** Includes A. Alfred Taubman College of Architecture & Urban Planning; Penny W. Stamps School of Art and Design; Literature Science, and the Arts; Nursing; and Pharmacy. For

upper division only, includes Education; Information; Medicine; Gerald R. Ford School of Public Policy; and Public Health.

Rates per term include all required fees listed above, and for enrolled students in F or J visa status, a $500 International Fee will be assessed effective Fall 2019.




Total Tuition & Required Fees **



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GRADUATE RESIDENTTotal % Change in Tuition

and All Required Fees

A. Alfred Taubman College of Architecture & Urban PlanningMaster of Architecture $15,234 $15,729 $495 3.2%All other programs 15,234 15,729 495 3.2%

Penny W. Stamps School of Art and Design 11,953 12,341 388 3.2%Stephen M. Ross School of Business

M.B.A.** 31,987 33,188 1,201 3.8%Master's of Accounting 23,827 24,664 837 3.5%Pre-candidate 12,219 12,616 397 3.2%

DentistryD.D.S. Cohorts D3-D4 13,844 14,293 449 3.2%D.D.S. Cohort D1-D2 14,494 15,626 1,132 7.8%Master's 8,909 9,198 289 3.2%Pre-candidate 13,208 13,637 429 3.2%

Education 11,953 12,341 388 3.2%Engineering

Professional 13,694 14,139 445 3.2%Pre-candidate 13,332 13,765 433 3.2%

Information 11,728 12,109 381 3.2%Kinesiology 12,726 13,139 413 3.2%Law 29,836 30,927 1,091 3.7%Literature, Science & the Arts 11,728 12,109 381 3.2%Medicine

M.D. 18,934 19,872 938 5.0%Master's of Health Professions Education*** 8,621 8,901 280 3.2%Pre-candidate 11,751 12,132 381 3.2%

Music, Theatre and DanceM.M. and Spec.M. 12,262 12,660 398 3.2%M.A., M.F.A., and Pre-candidate 11,953 12,341 388 3.2%

Environment and Sustainability 11,575 11,951 376 3.2%Nursing 12,088 12,480 392 3.2%Pharmacy

Pharm.D. 15,265 16,110 845 5.5%Pre-candidate 11,728 12,109 381 3.2%

Public Health 14,553 15,025 472 3.2%Gerald R. Ford School of Public Policy 13,404 14,132 728 5.4%Rackham Interdepartmental Programs 11,728 12,109 381 3.2%Social Work 14,038 14,494 456 3.2%

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***** Rates per term include all required fees listed above, excluding the Health Service Fee of $198.62.

Rates per term for the Weekend and Evening MBA programs include all required fees listed above, excluding the Health Service Fee of $198.62.







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GRADUATE NON-RESIDENTTotal % Change in Tuition


A. Alfred Taubman College of Architecture & Urban PlanningMaster of Architecture $23,203 $23,957 $754 3.2%All other programs 22,219 22,941 722 3.2%

Penny W. Stamps School of Art and Design 23,976 24,755 779 3.2%Stephen M. Ross School of Business

M.B.A.** 34,487 35,688 1,201 3.5%Master's of Accounting 26,327 27,164 837 3.2%Pre-candidate 24,232 25,019 787 3.2%

DentistryD.D.S. Cohorts D3-D4 21,553 22,253 700 3.2%D.D.S. Cohort D1-D2 21,553 22,253 700 3.2%Master's 15,063 15,552 489 3.2%Pre-candidate 24,060 24,841 781 3.2%

Education 23,976 24,755 779 3.2%Engineering

Professional 25,327 26,150 823 3.2%Pre-candidate 24,918 25,727 809 3.2%

Information 23,503 24,266 763 3.2%Kinesiology 25,682 26,516 834 3.2%Law 31,336 32,427 1,091 3.5%Literature, Science & the Arts 23,503 24,266 763 3.2%Medicine

M.D. 28,484 29,531 1,047 3.7%Master's of Health Professions Education*** 9,404 9,709 305 3.2%Pre-candidate 23,551 24,316 765 3.2%

Music, Theatre and DanceM.M. and Spec.M. 24,286 25,075 789 3.2%M.A., M.F.A., and Pre-candidate 23,976 24,755 779 3.2%

Environment and Sustainability 22,760 23,499 739 3.2%Nursing 24,246 25,034 788 3.2%Pharmacy

Pharm.D. 18,333 18,928 595 3.2%Pre-candidate 23,503 24,266 763 3.2%

Public Health 23,935 24,712 777 3.2%Gerald R. Ford School of Public Policy 23,976 24,976 1,000 4.2%Rackham Interdepartmental Programs 23,503 24,266 763 3.2%Social Work 22,388 23,115 727 3.2%

*

*****

Rates per term for the Weekend and Evening MBA programs include all required fees listed above, excluding the Health Service Fee of $198.62.Rates per term include all required fees listed above, excluding the Health Service Fee of $198.62.







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GRADUATE INTERNATIONALTotal % Change in Tuition


A. Alfred Taubman College of Architecture & Urban PlanningMaster of Architecture $23,203 $24,457 $1,254 5.4%All other programs 22,219 23,441 1,222 5.5%

Penny W. Stamps School of Art and Design 23,976 25,255 1,279 5.3%Stephen M. Ross School of Business

M.B.A.*** 34,487 36,188 1,701 4.9%Master's of Accounting 26,327 27,664 1,337 5.1%Pre-candidate 24,232 25,519 1,287 5.3%

DentistryD.D.S. Cohorts D3-D4 21,553 22,753 1,200 5.6%D.D.S. Cohort D1-D2 21,553 22,753 1,200 5.6%Master's 15,063 16,052 989 6.6%Pre-candidate 24,060 25,341 1,281 5.3%

Education 23,976 25,255 1,279 5.3%Engineering

Professional 25,327 26,650 1,323 5.2%Pre-candidate 24,918 26,227 1,309 5.3%

Information 23,503 24,766 1,263 5.4%Kinesiology 25,682 27,016 1,334 5.2%Law 31,336 32,927 1,591 5.1%Literature, Science & the Arts 23,503 24,766 1,263 5.4%Medicine

M.D. 28,484 30,031 1,547 5.4%Master's of Health Professions Education**** 9,404 10,209 805 8.6%Pre-candidate 23,551 24,816 1,265 5.4%

Music, Theatre and DanceM.M. and Spec.M. 24,286 25,575 1,289 5.3%M.A., M.F.A., and Pre-candidate 23,976 25,255 1,279 5.3%

Environment and Sustainability 22,760 23,999 1,239 5.4%Nursing 24,246 25,534 1,288 5.3%Pharmacy

Pharm.D. 18,333 19,428 1,095 6.0%Pre-candidate 23,503 24,766 1,263 5.4%

Public Health 23,935 25,212 1,277 5.3%Gerald R. Ford School of Public Policy 23,976 25,476 1,500 6.3%Rackham Interdepartmental Programs 23,503 24,766 1,263 5.4%Social Work 22,388 23,615 1,227 5.5%

*

*****

****


Rates per term for the Weekend and Evening MBA programs include all required fees listed above, excluding the Health Service Fee of $198.62.Rates per term include all required fees listed above, excluding the Health Service Fee of $198.62.







5


GRADUATETotal % Change in Tuition


A. Alfred Taubman College of Architecture & Urban Planning $6,384 $6,591 $207 3.2%Stephen M. Ross School of Business 6,667 6,883 216 3.2%Dentistry 6,357 6,563 206 3.2%Education 6,444 6,653 209 3.2%Engineering

D.Eng. 9,282 9,583 301 3.2%Ph.D. 7,641 7,889 248 3.2%

Information 6,322 6,527 205 3.2%Kinesiology 6,322 6,527 205 3.2%Law 7,691 7,940 249 3.2%Literature, Science & the Arts 6,322 6,527 205 3.2%Medicine 6,458 6,667 209 3.2%Music, Theatre and Dance

A.Mus.D. 7,824 8,078 254 3.2%Ph.D. 6,444 6,653 209 3.2%

Environment and Sustainability 6,243 6,445 202 3.2%Nursing 6,444 6,653 209 3.2%Pharmacy 6,322 6,527 205 3.2%Public Health 6,438 6,647 209 3.2%Rackham Interdepartmental Programs 6,322 6,527 205 3.2%

*

Candidate







6


GRADUATE INTERNATIONALTotal % Change in Tuition


A. Alfred Taubman College of Architecture & Urban Planning $6,384 $7,091 $707 11.1%Stephen M. Ross School of Business 6,667 7,383 716 10.7%Dentistry 6,357 7,063 706 11.1%Education 6,444 7,153 709 11.0%Engineering

D.Eng. 9,282 10,083 801 8.6%Ph.D. 7,641 8,389 748 9.8%

Information 6,322 7,027 705 11.2%Kinesiology 6,322 7,027 705 11.2%Law 7,691 8,440 749 9.7%Literature, Science & the Arts 6,322 7,027 705 11.2%Medicine 6,458 7,167 709 11.0%Music, Theatre and Dance

A.Mus.D. 7,824 8,578 754 9.6%Ph.D. 6,444 7,153 709 11.0%

Environment and Sustainability 6,243 6,945 702 11.2%Nursing 6,444 7,153 709 11.0%Pharmacy 6,322 7,027 705 11.2%Public Health 6,438 7,147 709 11.0%Rackham Interdepartmental Programs 6,322 7,027 705 11.2%

*

**








Candidate

7


GRADUATE

Other Programs

Fall 2018 Cohort

Stephen M. Ross School of Business Executive MBATotal Tuition & Program Fees*

$ ChangeTotal % Change in

Tuition & Program FeesResident $163,000 $168,500 $5,500 3.4%Non-Resident 168,000 173,500 5,500 3.3%International*** 169,000 176,000 7,000 4.1%

Summer 2019 - Spring 2020

Cohort

Stephen M. Ross School of Business Master's of ManagementTotal Tuition & Required Fees**


Tuition & Required FeesResident $48,263 $49,318 $1,055 2.2%Non-Resident 53,263 54,318 1,055 2.0%International*** 54,263 55,568 1,305 2.4%

Summer 2019 - Spring 2020

Cohort

Stephen M. Ross School of Business Master's of Supply Chain ManagementTotal Tuition & Required Fees**


Tuition & Required FeesResident $53,090 $54,243 $1,153 2.2%Non-Resident 58,090 59,243 $1,153 2.0%International*** 59,090 60,493 $1,403 2.4%

*

**

***

Proposed Rates -- Fall 2019

Total Tuition & Program Fees*

Proposed Rates -- Summer 2020 through Spring 2021 Cohort

Total Tuition & Required Fees**

Proposed Rates -- Summer 2020 through Spring 2021 Cohort

Total Tuition & Required Fees**

Includes tuition and fees for accommodations, meals, books, course materials, and other miscellaneous items over the length of the program, as well as the following required fees: $185.00 Infrastructure Maintenance Fee; $80.00 Registration Fee; $65.00 University Unions and Recreational Sports Facility Improvement Fee; $9.19 Central Student Government Fee; $8.50 Student Legal Services Fee; and a $1.50 School/College Government Fee.

Rates per term include $185.00 Infrastructure Maintenance Fee; $198.62 Health Service Fee; $80.00 Registration Fee; $65.00 University Unions and Recreational Sports Facility Improvement Fee; $9.19 Central Student Government Fee; $8.50 Student Legal Services Fee; and a $1.50 School/College Government Fee.

Rates per term include all required fees listed in each category above, and for enrolled students in F or J visa status, a $500 International Fee will be assessed effective Fall 2019.

8


GRADUATE

Online Education*


Resident $11,580 $11,580 $0 0.0%Non-Resident 12,630 12,630 0 0.0%International*** 12,630 13,130 500 4.0%

Resident $9,150 $9,150 $0 0.0%Non-Resident 10,026 10,026 0 0.0%International*** 10,026 10,526 500 5.0%

Resident $5,941 new fall 2019Non-Resident 7,807 new fall 2019International*** 8,307 new fall 2019

Resident $6,109 new fall 2019Non-Resident 6,709 new fall 2019International*** 7,209 new fall 2019

* All tuition and fees presented assume six credit hours per term.**

***

Stephen M. Ross School of Business - Part Time MBA: Online


Current Rates per Term


Total Tuition and Required Fees**

Total Tuition and Required Fees**


Engineering - Distance Learning Programs

School of Information - Master's of Applied Data Science

School of Public Health - Master's of Public Health

Rates per term include $185.00 Infrastructure Maintenance Fee; $80.00 Registration Fee; $65.00 University Unions and Recreational Sports Facility Improvement Fee; $9.19 Central Student Government Fee; $8.50 Student Legal Services Fee; and a $1.50 School/College Government Fee.

9


ACTION REQUEST

Subject: Proposed International Student Fee to Cover Costs of Services and Regulatory Compliance

Action Requested: Approval of fee assessment of $500 per international student per term

Background:

The University of Michigan has long welcomed students from other countries to study on our campus. UM enrolled its first foreign students in 184 7, within the first decade of its founding in Ann Arbor.

International students are highly valued members of our campus. They contribute unique perspectives, enrich the culture of the community, and broaden the global focus of the institution. The university therefore places a high priority on providing sufficient services and infrastructure to promote their integration and academic success. Many of these functions are provided by the University of Michigan International Center; their services are supplemented by support and programming offered by other central units as well as by schools and colleges.

In recent years, the pressure on the university's resources has been increasing. The enrollment of international students has grown over time; in fall2018 enrollment stood at 6,984, consisting of 2,244 undergraduates and 4,740 graduate and professional students. The university has also been compelled to increase its investment in international student services and administration due to external demands. Compliance with regulations has become more time-consuming and complex. Interpretation of the changing regulatory environment requires additional staff time and expertise. In addition to these costs, units across campus have reported increased needs in advising, counseling, and acculturation programming.

The university is strongly committed to the continuing success of our international students. We seek to raise general fund revenue through an international student fee to support this priority.

It is recommended that the Board of Regents approve the International Fee of $500 per term (to be charged to all enrolled students in F or J visa status) beginning fall 2019.

Respectfully submitted,

Provost and Executive Vice President for Academic Affairs

June 20, 2019

cshankle

Text Box


Subject:

Action Requested:

Background:

The University of Michigan Regents Communication

Action Request

Approval of the 2019-2020 University Housing residence hall and apartment rates

Approval of the proposed University Housing rates for residence hall room and board and Northwood Community Apartments rentals. The proposed rate increases for residence halls, Martha Cook, Munger, lawyers Club and Northwood Community Apartments is 4%.

University Housing developed the proposed rate increases for 2019-2020 with the collaboration and support of the student Residence Halls Association as well as appropriate administrative staff within the university.

Included with this Action Request are the following attachments:

• Rate recommendations for residence halls, Northwood Ill and Martha Cook for 2019-2020 (Attachment A);

• Rate recommendations for Lawyers Club and Munger for 2019-2020 (Attachment B); and

• Rate recommendations for Northwood Community Apartments for 2019-2020 (Attachment C)

Recommended increase for Residence Halls. Martha Cook. Munger. lawyers Club. and Northwood Community Apartments:

The overall proposed room and board rate increase is 4%. The components of the proposed increase include 1% for support of operations and 3% for capital renewal. A summary of the rate recommendations is delineated by room type and included in Attachments A, B, & C.

I recommend the Regents approve the rate recommendations for residence halls, Martha Cook, Munger, lawyers Club and Northwood Community Apartments for FY2020.

Respectfully Submitted,

~~;.~~~ Vice President for Student life

June 2019

1

cshankle

Text Box


Attachment A

University Housing 2019-2020 Residence Halls and Northwood Ill

Room and Board Rate Recommendation

Residence Halls 2018-2019

Rate 2019-2020

Rate

Single $13,766 $14,318

Double $11,534 $11,996

Triple $10,196 $10,604

Martha Cook

Increase ($)

$552

$462

$408

2019-2020 Room and Board Rate Recommendation

Martha Cook

Single Suite

Deluxe Double

Double

2018-2019 Rate

$13,946

$13,430

$12,922

2019-2020 Rate

$14,504

$13,968

$13,440

Increase ($)

$558

$538

$518

2

Attachment B

Lawyers Club 2019-2020 Room Rate Recommendation

Lawyers Club

Single Shared Bath

Single Private Bath

Single - Private Bath -

Premium Size

2018-2019 Rate

$12,700

$13,700

$14,800

2019-2020 Rate

$13,200

$14,250

$15,400

Munger Graduate Residences 2019-2020 Room Rate Recommendation

2018-2019 2019-2020 Munger Monthly Rate Monthly Rate

1 Bedroom -7 person suite $929 $966

1 Bedroom -6 person suite $984 $1,023

Increase ($)

$500

$550

$600

Increase ($)

$37

$39

3

Attachment C

University Housing 2019-2020 Northwood Community Apartments (NW I, II, IV, and V)

Rate Recommendation

12-Month Family and Graduate Apartment Rates

Northwood

Community 2018-2019 2019-2020 Apartments Monthly Rate Monthly Rate Increase ($)

1- Bedroom $951 $989 $38

2- Bedroom $1,154 $1,200 $46

3- Bedroom $1,226 $1,275 $49

Rates include utilities and internet. Student apartments with air conditioning are $61/Mo. higher for a 1-bedroom, $66/Mo. higher for a 2-bedroom, and $71/Mo. higher for a 3-bedroom.

4

SUBJECT:

ACTION REQUESTED:

THE UNIVERSITY OF MICHIGAN

REGENTS COMMUNICATION

ACTION REQUEST

2019·2020 Fee Assessments for Central Student Government (CSG),

Student Legal Services (SLS), and School/College Governments

Approval of the following fee assessments:

$9.19 per student per term for CSG (no change from 2018·19};

$8.50 per student per term for SLS (no change from 2018-19}; and

$1.50 per student per term for School/College governments (no change

from 2018·19}.

Background: At the June 2018 Regents' Meeting, the Regents authorized a fee of $9.19 per student

per term for CSG and $1.50 per student per term for School/College governments. At the June 2018

Regents' Meeting, the Regents authorized a fee of $8.50 per student per term for Student Legal

Services.

CSG. SLS and School/College Government Fees: This year, Central Student Government believes that

the current fee structure will provide adequate funding for the coming fiscal year (see attached

memorandum). Student Life believes that Student Legal Services will have sufficient resources for

2019·2020 under the current fee structure. We believe the school and college government

organizations are adequately funded. Therefore, no Increase is being requested for CSG, SLS or the

School/College Governments.

Recommendations: I recommend approval of the following fees for 2019-2020: $9.19 per student per term for Central Student Government, $8.50 per student per term for Student Legal Services, and

$1.50 per student per term for School/College governments.


:lit:~., VIce President for Student Life

Attachment

June 2019

Page 1 of 1

cshankle

Text Box


Subject:

Action Requested:



ACTION REQUEST

Proposed 2019-2020 University Health Service Fee

Approval of fee assessment of $198.62 per student per term (no change from

2018-2019)

Background: The University Health Service recommends renewal of the Health Service Fee at $198.62

per student per term for FY20. This represents a 0% change from the current fee.

The Health Service has identified several important initiatives for FY20, including continued innovative

efforts to improve access to care. Our proposed balanced budget includes an incremental psychiatry

position to help better address the pressing issue of student mental health, increased clinical and

administrative support for the UHS "Convenience Clinic", and an incremental Sports Medicine provider

(shared funding proposal with University Athletics). It is projected that these new initiatives would be

entirely supported by cost reductions and increased revenues. The budget includes: an estimated

$214,000 in revenue attributed to projected enrollment numbers, a $200,000 reduction in lab expenses

due to expanded insurance billing, $188,000 in increased fee for service revenue, and $289,000 in

savings due to consolidated management positions.

Recommendation: We recommend that the Regents approve the Health Service fee of $198.62 for FY20

(no change). A history of the Health Service Fee is attached (Attachment 1).


E. Royster Harper, Vice President for Student Life

Attachment

June 2019

1

cshankle

Text Box


Attachment 1

10 Year UHS Student Fee History

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2


INFORMATION ITEM

SUBJECT: Central Student Government (CSG) Financial Report

Pursuant to the current action plan for improving financial controls of the Central Student

Government, attached Is the annual financial report for December 31, 2018 and December 31,

2017 prepared by University staff. The report includes detailed expenditures made from the

Regentally approved CSG student fee.


~'rt~ E. Royster Harper Vice President for Student Life

Attachments

June 2019

Page 1 of 12

cshankle

Text Box

Received by the Regents June 20, 2019

To: Board of Regents of the University of Michigan

From: Central Student Government

Date: 3 June 2019

Central Student Government – Financial Report

Fiscal Year Ending December 31, 2018

The financial report for the 2018 fiscal year reflects the continued additional funds Central

Student Government (CSG) receives from the Board of Regents’ approved 2014 Student Fee

Increase, as well as additional funds due to increased student enrollment in both the Fall and

Winter semesters—by 714 and 1,145 students respectively. In this fiscal year, CSG disbursed

$515,000 to student organizations, a $62,000 increase from the previous fiscal year. These funds

went to registered student organizations, including Music Matters, The Maize and Blue

Cupboard, and the South Asian Awareness Network (SAAN). In following with the strategy

presented in 2017, SOFC—the student organization funding branch of CSG—was allocated less

money to distribute in the Fall and more to distribute in the Winter. In total, $515,210 of CSG’s

revenue in FY18 was designated to the funding of student organizations.

In this fiscal year, CSG decreased its payments to U-M Departments by $23,000. The University

events and programs which received CSG funding in 2018 included the Ginsberg Center’s

participation in the “Big10 Voting Challenge,” the funding of water stations in the College of

Engineering, increased charging stations through University Unions and Libraries, the Spectrum

Center’s “Creating Change Conference,” and the University Career Center’s “Clothes Closet and

Suit Up Event.” Ultimately, the above display how the 2014 Student Fee Increase continues to

benefit the Ann Arbor campus community. The generous and constant support of the Board of

Regents’ allows for CSG to assist the University community in a multitude of ways—motivated

by CSG’s salient mission of enhancing the Michigan experience for all students.

Further, the revenue accrued by CSG in FY18 also enabled CSG to provide crucial services and

informative events to the Ann Arbor student body. Internally, CSG utilized $39,200 of the

student fee revenue to continue incentivizing and encouraging student advancement through

CSG internal programming, such as INNOVATE; a public service pitch competition in its

second year. Further, CSG also allocated $1,000 to help support free graduation gowns and

photographs for students with need. And additionally, CSG partnered with various U-M

Departments and student organizations to fund events such as “Women in Public Service” and

“Pride Outside.” Lastly, CSG continued to fund free feminine hygiene products for students,

sustainability focused initiatives, New York Times subscriptions for students, and finals week

support kits.

Next academic year, CSG seeks to continue its financial and advocacy-based support of the

student body—through efforts that elevate student innovation, progress, inclusion, and justice.

Through its funding, CSG stimulates student-based initiatives across all communities on Ann

Arbor’s campus; helping to ensure that our students can act on their deepest passions and pursue

their goals. With acknowledgement of the scarcity of student organization funding, CSG hopes

to engage with students to ensure the money spent by CSG is maximized in its impact on the

student experience. Beginning in the Fall, CSG strives to enhance its visibility through finding

Page 2 of 12

new ways to receive student feedback; namely, all-campus surveys, improved monthly town-

halls, CSG Assembly meetings in spaces across campus such as the new Trotter Multicultural

Center, and on North Campus. Additionally, CSG will pursue projects that directly enhance the

Michigan experience—with a specific focus on sustainability, accessibility, and inclusion. These

programs will include: re-usable grocery bags for students living off-campus, an expansion of the

LSA laptop program, institutionalized financial literacy programs, subsidized “Group X” passes,

and initiatives focused on mental health, sexual misconduct prevention and awareness, food and

housing affordability, and DEI.

Respectfully Submitted,

Benjamin Gerstein

President, Central Student Government

Page 3 of 12

Central Student GovernmentBalance SheetFor the years ending December 31, 2018 and 2017

2018 2017

Assets

University Cash Accounts 553,426$ 530,212$ Accounts and Interest Receivable ‐ ‐ Prepaid Expenses ‐ ‐

Total Current Assests 553,426 530,212

Property and Equipment ‐ Net ‐ ‐

Total Assets 553,426$ 530,212$

Liabilities and Fund Balances

LiabilitiesAccounts Payable 11,406$ 41,586$ Accrued Liabilities 8,069 5,514 Deferred Revenue 385,300 381,927

Total Liabilities 404,775 429,027

Fund BalancesUnreserved 148,651 101,184 Reserved for Childcare Subsidy Program ‐ ‐

Total Fund Balances 148,651 101,184

Total Liabilities and Fund Balances 553,426$ 530,211$

Page 1 of 1Page 4 of 12

Central Student GovernmentStatement of Revenue and ExpensesFor the years ending December 31, 2018 and 2017

2018 2017General Childcare Total General Childcare Total

RevenueStudent Fees 749,887$ 749,887$ 737,876$ 737,876$ Childcare Student Fee 131,247 131,247 129,310 129,310 Airbus 59,532 59,532 77,224 77,224 Gift Revenue 1,138 1,138 153 153 Interest 4,409 4,409 2,391 2,391 Other 11,242 11,242 14,200 14,200 Total Revenue 826,208 131,247 957,455 831,844 129,310 961,154

ExpensesAllocations:Student Organizations 515,210 515,210 452,649 452,649 Payments to U‐M Departments 22,438 22,438 45,849 45,849 CSG Programs 39,706 39,706 39,181 39,181 Personnel 116,739 116,739 118,292 118,292 Child Care Subsidy Stipends 131,247 131,247 129,310 129,310

General:Advertising 2,716 2,716 3,768 3,768 Airbus 42,085 42,085 116,355 116,355 Equipment Rental 1,266 1,266 1,625 1,625 Depreciation ‐ ‐ 283 283 Supplies 2,393 2,393 5,956 5,956 Printing and Publications 6,005 6,005 4,743 4,743 Service of Others 5,749 5,749 7,901 7,901 Telephone 1,102 1,102 1,076 1,076 Travel, Hosting & Transportation 14,552 14,552 18,367 18,367 Donations ‐ ‐ ‐ ‐ Other General Expenses 8,779 8,779 8,383 8,383

Total Expenses 778,741 131,247 909,988 824,427 129,310 953,738

Excess of Revenue Over Expenses 47,467 ‐ 47,467 7,416 ‐ 7,416

Fund Balances ‐ Beginning 101,184 101,184 93,768 93,768 Fund Balances ‐ Ending 148,651$ ‐$ 148,651$ 101,184$ ‐$ 101,184$

Page 1 of 1Page 5 of 12

Central Student GovernmentStudent Organization Funding

For the Year ended December 31, 2018

Organization Amount180 Degrees Consulting at the Universtiy of Michigan 750 Adaptive Gymnastics 200 African Student Association 4,500 AIESEC 2,150 Albanian American Student Organization 4,149 Alpha Epsilon Delta 200 Alpha Kappa Delta Phi 1,350 Alpha Phi Alpha Fraternity 2,550 Alpha Phi Omega Gamma Pi 250 Alternative Spring Break 1,883 American Institute of Chemical Engineers (AIChE) 2,500 Animania 286 APhA‐ASP (Academy of Student Pharmacists) 5,675 Appreciate & Reciprocate ‐ Society of LSA Scholars 531 Archery Club 5,425 Architectural Representative Committee 200 Art on the Diag 200 Association for Women in Science 1,425 ATRAVES 2,500 Badminton Club 2,170 Ballroom Dance Club 850 Bankruptcy Law Society 400 Basement Arts 185 Best Buddies 369 Bioethics Society 188 Black Student Union 2,000 Blood Drives United 2,500 BLUE Lab 300 Blue Model United Nations 19,060 Blueprint Literary Magazine 943 Blueprints for Pangaea 2,625 BOND Consulting Group 750 Bonsai Club 45 Books for a Benefit 1,200 Brazilian Zouk Dance Club 2,035 Bridge of Disciplines 300 Cadence 3,067 Call for Humanity 205 Campus Orchestra Board 175 CangaASo Capoeira‐CordALo de Ouro 400 Casual Gaming Club 537 ChemE Car 2,830

Page 6 of 12



Organization AmountChinese Basketball Team UM 2,100 Chinese Entrepreneur Network 1,100 Chinese Students and Scholars Association (CSSA) 12,548 Chinese Students Association 1,535 Christian Medical Association 600 Club Golf at Michigan 4,700 College Republicans at U‐M 140 Computer Science and Engineering Graduate Students (CSEG) 200 Consider Magazine 800 Cooking Club 163 Cycling Club at the University of Michigan 650 Dance 2XS 420 Dance Marathon 5,325 Dance Mix 1,732 Design for America 200 Detroit Enterpreneurship Network 250 Detroit Partnership 3,500 Detroit Urban Debate Education 182 Do Random Acts of Kindness 525 Doors of Opportunity 110 Emerging Markets Club 123 Engineering Global Leadership Honor Society 1,450 Engineering Honors Student Advisory Board 950 Enspired 3,000 Epsilon Eta 173 Ethiopian‐Eritrean Student Association (EESA) 100 Evans Scholarship 44 FEMMES: Females Excelling More In Math, Engineering and Science 5,655 Fencing Club 5,900 Fighting Obstacles Knowing Ultimate Success (F.O.K.U.S.) 146 Filipino American Student Assoc. 850 Flywheel Women's Ultimate Frisbee 10,072 Ford School Charity Auction 200 Foundation for International Medical Relief of Children (FIMRC) 490 Generation Asian Pacific American 600 Girl Up Michigan 120 Girls Who Code DCMB 30 Global Medicine Missions Alliance 400 GlobeMed at the University of Michigan 400 GlobeMed DF 76 Goodness Day 300 Graduate Cricket Club 1,800

Page 7 of 12



Organization AmountGRID 5,000 Habitat for Humanity at the University of Michigan 8,034 Health Promotion at UM (HPUM) 131 Hindu Student Council 1,190 Indian Student Association 1,456 International Deaf and Hearing Alliance 2,250 Int'l Society for Pharmacoeconomics & Outcomes Research 347 Iraqi Student Association 595 Japanese Student Association 40 Kappa Alpha Psi 1,400 Kappa Phi Lambda 2,075 K‐Grams 1,500 Kid's Kitchen 140 Korean Student Association 900 Law School Student Senate 500 Lean In at the University of Michigan 2,500 Lebanese Students Association 880 Liberty in North Korea 1,305 LingoMatch 180 MAASU 2017 1,000 Maize & Blue Cupboard 962 Maize Collective 1,815 Maize Futbol Club 1,800 Maize Mirchi 301 Maize Rage 1,011 Malaysian Students Association 890 Master of Management Student Council 500 Mdraw 156 MEDLIFE at University of Michigan 3,300 Men's D2 Club Ice Hockey 16,495 Men's Rugby 460 Men's Ultimate Frisbee 8,935 Men's Waterpolo Club 700 Mentality Magazine 967 M‐Heal PeriOperative 1,500 Michigan All‐Girl Competitive Cheer 2,535 Michigan Animal Rights Society 1,200 Michigan Baseball & Sabermetrics Club 300 Michigan Bhangra Team 800 Michigan Bubble Club 103 Michigan Business Women 90 Michigan China Forum 10,000

Page 8 of 12



Organization AmountMichigan Club Softball 248 Michigan Club Tennis 4,563 Michigan Fashion Media Summit 920 Michigan Field Hockey 400 Michigan Health Engineered for All Lives (M‐Heal) 2,000 Michigan Healthcare Executive Student Association 210 Michigan Hybrid Racing 2,213 Michigan Ice Carving Team 252 Michigan Interactive Investments 1,000 Michigan International Law Moot Court Association 500 Michigan Is My Home 3,700 Michigan Izzat 4,800 Michigan Journal of International Affairs 1,700 Michigan Manzil 300 Michigan Men's Rowing Team 22,040 Michigan MTG Club 378 Michigan Muscle Club 885 Michigan Nordic Ski Club 1,300 Michigan Pakistanis 332 Michigan Quidditch 9,184 Michigan Refugee Assistance Program 1,500 Michigan Running Club 11,350 Michigan Sahana 3,386 Michigan Sailing Team 750 Michigan Sport Business Conference 500 Michigan Students for Disability Awareness 393 Michigan Vertical Take‐Off and Landing 350 Michigan Wrestling Club 250 MIoT 63 Mock Trial Team 6,200 Model United Nations 8,000 Mongolian Cultural Association 750 M‐Stem Student Council 210 Multicultural Greek Council 350 Music Matters 6,200 Music Teachers Nat'l Association Collegiate Chapter 250 Muslim Students Association 1,972 Mystic Bronze Elegance 2,031 National Association for the Advancement of Colored People (NAACP) 750 Navy ROTC (Wolverine Maritime Battalion) 5,400 Net Impact Undergrad 891 Nexecon Consulting Group 3,400

Page 9 of 12



Organization AmountNoir UM 3,000 Omega Psi Phi Fraternity 800 Operation PROM 100 Outrage Dance Group 700 PALMA 450 Pearl Project 400 Permias (Indonesian Student Association) 750 Persian Students Assoc. 1,300 Phi Delta Chi 1,515 Pi Alpha Phi 750 Polish Student Association DF 1,802 Positive Business Project 236 Pre‐Med Hub 88 Pure Dance Xtreme 1,564 Quito Project 25 Rackham Student Government 4,500 Raw Strength and Courage Kayak Club 751 RC Players 35 Redefine 228 Relay for Life 3,150 Releve Dance Company 900 Ross Jewish Student Association 600 Salto Dance Company 1,083 Seventh Mile Music 5,926 Shei Magazine 1,000 Singapore Students Association 50 SJTU Student & Alumni Association 2,000 Society of Asian Scientists and Engineers 410 Society of Economic Geology Student Chapter 653 Solar Car Team 2,500 South Asian Awareness Network (SAAN) 5,920 SPIC MACAY at the University of Michigan 900 Stamp Nation 400 Student Alliance of Gay Engineers (oSTEM) 2,125 Student Athlete Advisory Council 2,300 Student National Pharmaceutical Association 675 Students Empowering Education 1,121 Students for Choice 1,156 Students for Social Equality 750 SWAM Club Swimming 3,486 Swing Ann Arbor 3,115 Synchronized Skating Club 1,500

Page 10 of 12



Organization AmountSynchronized Swimming Club 7,173 Syrian Orphans Sponsorship Association 1,325 TAAL Dance Team 2,893 Taiwan Student Association 175 Taste of Michigan 450 Team Aquador 900 TEDx UofM 1,600 Termeh 4,992 Thai Student Association 150 The Dick and Janes 1,000 The Sopranos 800 Thus Spoke Ann Arbor 650 Timmy Global Health 249 Triathlon Club 2,000 Tzu Ching 210 U of M Gospel Chorale 1,605 Uncover: Asian/Pacific Islande 225 Undergraduate American Women's Medical Association 315 UNICEF 313 United Asian American Organization (UAAO) 150 University of Michigan Ballroom Dance Team 16,025 University of Michigan Figure Skating Club 2,640 University of Michigan Hillel 700 University of Michigan Polish Student Association 2,353 University of Michigan Rifle Team 1,400 University of Michigan Roller Hockey Club 1,770 University of Michigan Science Olympiad (UMSO) 250 University of Michigan Waterski Team 7,760 University of Michigan Women's Glee Club 1,000 University Women Against Rape 474 Urban Planning MLK Committee 103 Victors FC 940 Vietnamese Student Association 1,052 What the F: Your Irregular Periodical 2,900 Wolverine Cuizine 486 Wolverine Support Network 1,620 Women in Aeronautics and Astronautics 155 Women's Club Lacrosse 11,150 Women's Club Volleyball 350 Women's Club Water Polo 5,140 Women's Ice Hockey Club 16,160 Women's Soccer Club 800

Page 11 of 12



Organization AmountWorking to Educate Readers by Encouraging Active Development (WE READ) 499 Yemeni Students' Association (YSA) 1,350 Yoni Ki Baat 1,250 You Good Fam? 365 Young Americans for Freedom 1,000 Grand Total 515,210

Page 12 of 12

THE UNIVERSITY OF MICHIGAN-FLINTRegents Communication

SUBJECT: Proposed Flint Campus 2019-2020 General Fund OperatingBudget, Student Tuition and Fee Rates

ACTION REQUESTED: Approval of 2019-2020 General Fund Operating Budget, Student Tuition and Fee Rates

BACKGROUND:

The proposed 2019-2020 General Fund budget for UM-Flint (attached) assumes a 1.4% increase in state funding. The proposed budget assumes a $586 increase in combined tuition and fees for resident undergraduate students and a 4.9% increase for most graduate students for the 2019-2020 academic year.

This budget proposal assumes:

2.8% decrease in undergraduate enrollment, 5.0% graduate enrollment increase; and, 4.4% increase in institutional financial aid.

The proposed budget includes our state appropriation of approximately $23.9 million.

We request approval of the Proposed Flint Campus 2019-2020 General Fund Operating Budget, Student Tuition and Fee Rates.

RECOMMENDED BY:

_____________________________Susan E. Borrego, ChancellorUniversity of Michigan-Flint

June 20, 2019Attachments

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University of Michigan - Flint

Proposed General Fund Revenue Budget

Fiscal Year 2019 - 20

Budget for Budget for

FY 2018 - 19 % of Total $ Change FY 2019 - 20 % of Total

State Appropriation 23,585,400 20.4% 339,500 23,924,900 20.3%Student Tuition & Fees 91,124,600 78.9% 1,707,100 92,831,700 78.9%Indirect Cost Recovery 100,000 0.1% 100,000 200,000 0.2%Income from Investments 100,000 0.1% - 100,000 0.1%Department Activities 600,000 0.5% - 600,000 0.5%

Total Revenue 115,510,000 100.0% 2,146,600 117,656,600 100.0%

University of Michigan - Flint

Proposed General Fund Expenditure Budget

Fiscal Year 2019 - 20

Academic &

Budget for Salary & Student Fixed Support Budget for

FY 2018 - 19 Benefits Aid Costs Programs Reallocations FY 2019 - 20

Area

College of Arts & Sciences 27,204,079 1,283,142 237,000 (1,676,137) 27,048,084 School of Management 6,776,797 171,603 74,200 289,276 7,311,876 College of Health Sciences 8,260,549 313,560 (6,000) (119,919) 8,448,190 Associate Provost & Graduate Programs 3,845,647 48,313 251,000 (112,521) 4,032,439 School of Education & Human Services 4,477,915 235,069 57,000 (453,558) 4,316,426 School of Nursing 7,293,191 247,927 134,000 710,974 8,386,092 Subtotal - Academic Units 57,858,178 2,299,613 - - 747,200 (1,361,884) 59,543,107

Chancellor 2,678,617 34,834 - (79,557) 2,633,894 Provost/Academic Affairs 5,169,038 58,328 - (183,131) 5,044,235 Division of Student Affairs 3,992,848 38,328 132,000 (104,993) 4,058,183 Student Aid 9,643,842 - 423,000 - - 10,066,842 Business & Finance 17,421,548 287,450 215,000 (466,820) 17,457,178 University Advancement 1,951,196 23,411 - (55,988) 1,918,619 Enrollment Management 6,302,683 69,136 (45,460) (174,367) 6,151,992 Subtotal - Executive Officers 47,159,772 511,487 423,000 - 301,540 (1,064,856) 47,330,943

Utilities 4,440,000 60,000 4,500,000 Central Support 887,000 102,000 989,000 Debt Service 330,000 - 330,000 General Administrative Services 4,744,850 - 28,500 100,000 4,873,350 General Administrative Reserve 90,200 90,200 Subtotal - Other 10,492,050 - - 190,500 100,000 - 10,782,550

Total Expenditures 115,510,000 2,811,100 423,000 190,500 1,148,740 (2,426,740) 117,656,600

University of Michigan - FlintProposed Tuition & Fee Rates

Fiscal Year 2019- 20

2019-2020

Proposed

2018-2019

Tuition & Fees $ Change % Change

RESIDENT

Undergraduate:Lower Division 6,203$ 5,910$ 293$ 5.0%Upper Division 6,275 5,982 293 4.9%Nursing 7,172 6,837 335 4.9%Nursing (RN/BSN) 6,275 5,982 293 4.9%Psychology (Online) 6,275 5,982 293 4.9%Respiratory Therapy 6,275 5,982 293 4.9%Management* 7,310 5,982 1,328 22.2%

Graduate:Management 9,557 9,111 446 4.9%Doctor of Education 8,600 8,199 401 4.9%Doctor of Nurse Anesthesia (Professional) 10,163 8,967 1,196 13.3%Doctor of Nurse Anesthesia (Post-Professional) 11,903 11,346 557 4.9%Physical Therapy 8,756 8,346 410 4.9%Occupational Therapy** 9,284 - 9,284 n/aNursing 8,441 8,046 395 4.9%All Other Graduate Programs 7,829 7,464 365 4.9%

NON-RESIDENT

Undergraduate:Lower Division 11,846 11,289 557 4.9%Upper Division 12,005 11,442 563 4.9%Nursing 13,793 13,155 638 4.8%Nursing (RN/BSN) 6,902 6,561 341 5.2%Psychology (Online)*** 6,902 - 6,902 n/aRespiratory Therapy 6,902 6,561 341 5.2%Management 7,937 6,561 1,376 21.0%

Graduate:Management 11,855 11,301 554 4.9%Doctor of Education 11,606 11,064 542 4.9%Doctor of Nurse Anesthesia (Professional) 15,059 13,293 1,766 13.3%Doctor of Nurse Anesthesia (Post-Professional) 12,725 12,132 593 4.9%Physical Therapy 12,977 12,372 605 4.9%Occupational Therapy** 13,505 - 13,505 n/aNursing 12,515 11,931 584 4.9%All Other Graduate Programs 11,606 11,064 542 4.9%

approximately 10%.

Per Term Rate

* The School of Management tuition rate increase is largely offset for students by the elimination of a $59 per credit fee that

will no longer be charged.

** The Occupational Therapy program is new in Fall 2019.

***Beginning in Fall 2019, students in the Psychology (Online) program will be charged a non-resident differential of


SUBJECT: Proposed University of Michigan-Flint 2019-2020 Residence Hall Rates ACTION REQUESTED: Approval of University of Michigan-Flint rate for residence hall room and board. The proposed resident hall rate increase is 5.0%. The proposed board increase is 2.0%. BACKGROUND: The proposed rate increases for FY20 were developed in consultation with the Vice Chancellor for Student Affairs and Vice Chancellor for Business and Finance as well as their respective management teams. Included with this Action Request are the following attachments:

• The rate increase request for FY20 (Attachment A) • A peer institution room and board rate comparison for 2017-2019 (Attachment B)

Recommended Residence Hall Rate Increase: The proposed room rate increase is 5.0%. This increase is commensurate with projected increases in the general cost of operations. Attachment A consists of a summary of the rate recommendations and is delineated by room type. The rates at First Street include mandatory board with a proposed 2.0% increase for 2019-2020. The proposed room and board average rate increase is 4.06%. I recommend the Regents approve the rate recommendations for FY20. RECOMMENDED BY: _____________________________ Susan E. Borrego, Chancellor University of Michigan-Flint June 20, 2019 Attachments

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University Housing Rate Increase Request for FY20 University of Michigan-Flint

Attachment A

Room Types

First Street FY19 FY20Amount Increase

% Increase3

(Room & Board; Meal Plans Mandatory)1

4 person, double bedrooms (standard)2 $8,769 $9,116 $347 3.95%

4 person, single bedrooms (suite)2 $10,256 $10,677 $421 4.10%

2 person, single bedrooms (suite) $10,745 $11,190 $445 4.15%

2 person, single bedrooms (premium)4 N/A $11,595

Riverfront

(Room Only; Meal Plans Not Mandatory)

4 person, double bedrooms (standard) $5,709 $5,994 $285 5.00%



3 person, single (premium – addt’l sq. ft) $7,596 $7,976 $380 5.00%

2 person, single bedrooms4 N/A $8,069

2 person, single (premium – addt’l sq. ft)4 N/A $8,474

1 person, single (studio) $8,070 $8,474 $404 5.00%

Fall/Winter Rates

1 First Street rates reflects the highest value meal plan 2 First Street room types same cost as Riverfront. Difference in rates due to meal plan costs. 3 Overall 5% increase in room costs for both building; however, First Street requires a meal plan which decreases the overall increase percentage. 4 New room types added to support student demand.

Rate Comparison to Michigan Public Universities FY 2017-2019

2016-2017 2017-2018 2018-2019

University of Michigan - Ann Arbor 10,872 11,198 11,534

Central Michigan University 10,816 11,196 11,588

Michigan Technological University 10,075 10,447 10,726

Michigan State University 9,734 9,976 10,272

Oakland University 9,620 9,910 10,225

Ferris State University 9,652 9,894 9,894

Eastern Michigan University 9,592 9,854 10,166

Western Michigan University 9,561 9,848 10,143

Lake Superior State University 9,350 9,500 9,786

Saginaw Valley State University 8,736 8,874 9,786

Grand Valley State University 8,400 8,600 8,690

University of Michigan - Flint 8,178 8,437 8,769

Source: MASU Tuition and Fees reports Attachment B


ACTION ITEM

SUBJECT: Proposed Dearborn Campus fiscal year 2019-20 General Fund

Operating Budget, Student Tuition and Fee Rates

ACTION REQUEST: Approval of 2019-20 General Fund Operating Budget, Student

Tuition and Fee Rates

BACKGROUND:

The proposed 2019-20 General Fund Budget for UM-Dearborn reflects a 1.5% increase in state

funding. The recommended undergraduate tuition and fee increase for lower division residents is

2.9% (an increase of $187 per term) and 3.5% for upper division residents (an increase of $232

per term). These two tuition rates blended together represent a tuition cap of 3.2% for all

undergraduate resident students.

The recommended undergraduate tuition and fee increase for non-residents at the lower division

is 5.0% (an increase of $631 per term). The recommended graduate tuition and fee increase for

residents is 5.0% (an increase of $382 per term) and non-residents is 9.6% (an increase of $1,262

per term). Further details on tuition and fee increases are included in the companion action item.

Our proposed budget is modeled with an expected 1.0% undergraduate and graduate enrollment

increase. Also proposed are additional funds to support technology improvements, student

engagement programs, and student financial aid.

We recommend the Regents approve the proposed 2019-20 General Fund Budget with the

accompanying Student Tuition and Fees Rates.

Recommended by:

________________________________________________________

Domenico Grasso, Chancellor

University of Michigan-Dearborn

June 2019

Attachments

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General Fund Revenue Budget Fiscal Year 2019-2020

% Budget % of Total Changes of Total

State Appropriations 26,071,800$ 16.8% 391,100$ 26,462,900$ 16.3%Student Tuition & Fees 127,409,300 82.0% 6,272,800 133,682,100 82.4%Indirect Cost Recovery 1,100,000 0.7% 50,000 1,150,000 0.7%Income from Investments 100,000 0.1% 200,000 300,000 0.2%Departmental Activities 675,000 0.4% 30,000 705,000 0.4%

Total Revenue 155,356,100$ 100.0% 6,943,900$ 162,300,000$ 100.0%

June 2019

Financial Services

Budget for FY 2018-19


General Fund Expenditure Budget Fiscal Year 2019-2020

Arts, Sciences & Letters 30,496,751 522,790 - - 14,920 31,034,461 Education, Health & Human Services 5,011,284 92,070 - - 48,720 5,152,074 Engineering 22,343,913 318,890 - - 1,188,880 23,851,683 Business 15,243,913 263,830 - - 311,480 15,819,223

Academic Units 73,095,861 1,197,580 - - 1,564,000 75,857,441

Chancellor's Area 8,447,249 97,380 - - 514,520 9,059,149 Academic Affairs 7,711,284 132,900 - - 109,600 7,953,784 Business Affairs 13,704,117 168,810 - - 286,851 14,159,778 Enrollment Management 4,881,837 85,510 - - 32,000 4,999,347 Student Life 2,678,044 33,600 24,300 - - 2,735,944 Institutional Advancement 2,226,889 36,570 - - - 2,263,459 External Relations 1,782,810 21,990 - - 60,000 1,864,800

Service Units 41,432,230 576,760 24,300 - 1,002,971 43,036,261

Utilities 2,707,920 - - - 120,000 2,827,920 Infrastructure Maintenance 4,890,776 - - - 19,000 4,909,776 Fringe Benefits 7,912,317 - - - 309,000 8,221,317 Debt Service 6,644,270 - - - - 6,644,270 Student Aid 18,672,726 - 2,130,289 - - 20,803,015

Other 40,828,009 - 2,130,289 - 448,000 43,406,298

Total Expenditures 155,356,100$ 1,774,340$ 2,154,589$ -$ 3,014,971$ 162,300,000$

June 2019Financial Services

Misc. Budget for FY 2019-20Area


Salary Program Total

Student Support

Academic Programs

Proposed Student Tuition and Fee Rates2019 - 2020

2019-2020 2018-2019 Per Term Percent

Proposed Approved Increase Increase

RESIDENT

Undergraduate:

Lower Division 6,652$ 6,465$ 187$ 2.9%

Upper Division 6,877 6,645 232 3.5%

Business 8,902 8,715 187 2.1%

Engineering & Computer Science 8,377 7,665 712 9.3%

Web-based Programs:

Arts, Sciences & Letters 7,502 7,235 267 3.7%

Graduate:

Business 10,460 10,078 382 3.8%


All Other Programs 8,060 7,678 382 5.0%

Web-based Programs:


Doctorate:

Education 8,060 7,678 382 5.0%


NON-RESIDENT

Undergraduate:

Lower Division 13,210$ 12,579$ 631$ 5.0%

Upper Division 13,435 12,759 676 5.3%

Business 15,460 14,829 631 4.3%

Engineering & Computer Science 14,935 13,779 1,156 8.4%

Web-based Programs:



Graduate:

Business 16,740 15,478 1,262 8.2%

Engineering & Computer Science 16,740 15,238 1,502 9.9%

All Other Programs 14,340 13,078 1,262 9.6%

Web-based Programs:

Arts, Sciences & Letters 14,840 13,550 1,290 9.5%

Education, Health & Human Services 9,972 9,502 470 4.9%


Doctorate:

Education 8,060 7,678 382 5.0%


Per Term Rate


ACTION REQUEST

Subject: Proposed FY 2020 University of Michigan Health System & UM Health Operating Budgets

Action Requested: Approval

Background:

For FY 2020, consolidated UMHS and UM Health are targeting an 7.9% operating cash flow margin and 3.4% operating margin.

The proposed UMHS FY 2020 budget is predicated on several key assumptions: A. Continued capacity management through existing inpatient and outpatient

operations to ensure proper site of care, including our affiliate partner sites. B. Improved efficiency in cost per unit of service, through continuation of a

focus on expense efficiency and cost reduction. C. Revenue per case growth constrained by continued Federal and State funding

changes and increased options for consumer-driven choices. D. Significant investment in training and infrastructure to further improve quality

and safety.

The proposed financial performance aligns with the long-term plan to continuously improve the financial strength of UMHS, to levels necessary to support future investments in our mission and strategy.

In order to ensure proper investment towards the long-term aims of the organization, Metropolitan Hospital, a member within UM Health, anticipates that it will require access to capital in addition to funds generated from operations. In order to satisfy this request, as part of the UM Health FY 2020 operating budget, a line of credit may be established between UMHS and the Metropolitan Hospital. Borrowing on this line of credit would be subject to the approval of the Executive Vice President for Medical Affairs or his designee, and is not to exceed $125 million over a five-year period. The particular interest and amortization aspects of this line of credit would be clarified and agreed to between UMHS and Metropolitan Hospital.

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We recommend the Regents approve the proposed consolidated FY 2020 University of Michigan Health System & UM Health Operating Budgets as well as the potential line of credit between UMHS and Metropolitan Hospital.


Execu ve ce President and Chief Financial Officer

June 20, 2019

Marschall S. Runge, M.D., Ph.D. Executive Vice President for Medical Affairs and Dean of the Medical School

UNIVERSITY OF MICHIGAN HEALTH SYSTEM (Including UM Health) FY 2020 OPERATING BUDGET

Consolidated Clinical Enterprise and UM Health Financials

(Amounts in Millions)

Operating Revenue

Operating Expenses

Operating Margin Margin%

Operating Cash Flow Margin Margin%

FY20 Plan

$5,043.3 7.3%

$4,871.9 7.7%

$171.4 3.4%

$399.1 7.9%

FY19 Estimated Actual

$4,700.3 8.6%

$4,522.4 7.7%

$177.9 3.8%

$407.7 8.7%

Clinical Enterprise Financials


Operating Revenue

Operating Expenses



UM Health Financials


Operating Revenue

Operating Expenses



FY20 Plan

$4,553.4

$4,378.4

$175.0 3.8%

$379.1 8.3%

FY20 Plan

$489.9

$493.5

($3.6) -0.7%

$20.0 4.1%


7.2% $4,248.0 8.3%

7.6% $4,068.0 6.6%

$180.0 4.2%

$388.5 9.1%


8.3% $452.3 11.3%

8.6% $454.4 17.9%

($2.1) -0.5%

$19.2 4.2%



Item for Information

SUBJECT: FY 2020 Athletic Department Operating Budget

For the proposed FY 2020 operating budget described on the following pages, the Athletic Department projects a balanced budget based on operating revenues of $196.3 million and operating expenses of $196.3 million. Highlights of the operating budget are as follows:

Spectator admissions revenues are projected to increase $3.1 million between FY19 andFY20 primarily as a result of an increase in non-student football ticket prices.

Conference distributions are projected to increase $2.8 million between FY19 and FY20 dueto a projected increase in conference television revenues.

Facilities revenues are projected to decrease $2.0 million between FY19 and FY20 primarilydue to no planned special event rental in FY20.

Salaries, wages, and benefits are projected to increase $2.9 million between FY19 and FY20due to inflationary salary increases and contractual obligations.

Team and game expenses are projected to increase $2.2 million between FY19 and FY20primarily due to a football game cancellation payment in FY20.

Transfers to University are projected to increase $2.0 million between FY19 and FY20 due toearly payment of FY19 transfers in a previous year.

Included in operating expenses is a $4.0 million transfer to the deferred maintenance fund.The deferred maintenance fund is used as a means to provide for major repair andrehabilitation projects for athletic facilities. The Athletic Department expects to continue toset aside additional funds in future years for this purpose.

Based on preliminary results, the Athletic Department has a projected operating surplus of approximately $1.0 million for FY19 as compared to a budget of $2.5 million for FY19. This variance is primarily due to higher than budgeted transfers to the deferred maintenance fund.


Andra Krievs Chief Financial Officer

Warde J. Manuel Donald R. Shepherd Director of Athletics

June, 2019

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Received by the Regents June 20, 2019

Michigan Athletic DepartmentFY 2020 Operating Budget(amounts in 000's)

BudgetBudget Projection + / - FY 2020 + / -

RevenuesSpectator admissions 52,516$ 53,516$ 1,000$ 56,608$ 3,092$ Conference distributions 52,119 53,119 1,000 55,924 2,805 Preferred seat contributions 30,317 30,317 - 30,761 444 Other expendable gifts 7,500 6,000 (1,500) 6,500 500 Corporate sponsorship 18,028 18,400 372 18,481 81 Licensing royalties 8,961 9,368 407 9,854 486 Facilities revenues 6,693 6,875 182 4,898 (1,977) Concessions & parking 3,913 3,913 - 3,941 28 Investment income 5,350 6,200 850 6,450 250 Other income 2,862 2,973 111 2,843 (130)

Total operating revenues 188,259 190,681 2,422 196,260 5,579

ExpensesSalaries & wages 71,659 72,159 500 75,083 2,924 Financial aid 27,400 27,548 148 28,310 762 Team and game 34,445 36,061 1,616 38,269 2,208 Other operating & administrative 15,430 15,632 202 14,985 (647) Transfer to University 5,800 6,020 220 7,978 1,958 Facilities 10,561 9,797 (764) 10,276 479 Deferred maintenance transfer 3,000 5,000 2,000 4,000 (1,000) Debt service transfer 17,464 17,464 - 17,359 (105)

Total operating expenses 185,759 189,681 3,922 196,260 6,579

Operating surplus 2,500$ 1,000$ (1,500)$ -$ (1,000)$

Fiscal Year 2019

University of Michigan Athletic Department 2019 – 2020 Budget Notes and Assumptions

(dollar amounts in 000’s)

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Basis for accounting: The University of Michigan Athletic Department manages its financial activity through the use of four different types of funds: the Operating Fund; the Endowment Funds; the Other Post-Employment Benefit Fund, and the Plant Funds. The Operating Fund budget is presented herein. A consolidated financial statement is prepared annually and audited by PricewaterhouseCoopers LLP.

The Operating Fund budget includes most of the revenues and expenditures of the Athletic Department, with the exception of endowment gifts and associated market value adjustments (which are recorded in the Endowment Funds), capital gifts and depreciation (which are recorded in the Plant Funds), and an allocation of the University’s actuarially determined annual other postemployment benefits expense and liability (which is recorded in the Other Post-Employment Benefit Fund).

1. Spectator admissions: Spectator admissions consist of the following:

2. Conference distributions: Expected Big 10 conference distributions primarily consist of conferencetelevision revenue, conference football bowl game distributions, and NCAA distributions.

3. Preferred seat contributions: Preferred seat contributions represent an annual seating program formen’s football, basketball, and ice hockey, with seat location linked to contribution levels. Expectedpreferred seat contributions are as follows:

Preferred seat contributions are recorded in the year in which they are received. Revenue from collected ticket sales associated with premium areas is deferred at year end and is recorded in spectator admissions revenue in the fiscal year in which the associated games are played.

4. Expendable gifts: Expendable gifts represent private gifts for other than capital and endowmentpurposes.

5. Corporate sponsorships: Corporate sponsorship revenues are primarily from the Athletic Department's apparel provider and multi-media rights partner.

Actual Budget Projected Budget

FY 18 FY 19 FY 19 FY 20

Football 39,819$ 45,755$ 46,250$ 49,500$

Men's Basketball 4,099 4,250 4,850 4,675

Ice Hockey 1,719 1,775 1,789 1,775

Other 762 736 627 658

Total 46,399$ 52,516$ 53,516$ 56,608$

Memo:

Home football games 6 7 7 7


FY 18 FY 19 FY 19 FY 20

Football 30,524$ 27,875$ 27,856$ 28,300$

Men's Basketball 2,036 2,001 2,001 2,001

Ice Hockey 475 441 460 460

Total 33,035$ 30,317$ 30,317$ 30,761$



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6. Licensing royalties: Licensing royalties are primarily from apparel and product licensees that use theUniversity’s mark in merchandising operations. In addition to being impacted by on-fieldperformance, licensing royalty revenue can be cyclical based on fashion trends, industry and economicfactors.

7. Facilities: Facility income includes fee and rental revenue from Michigan Stadium, Golf Courses, theVarsity Tennis Center, Yost Ice Arena, and the various other Athletic Department facilities.

8. Concessions and parking: Concessions and parking income includes game-day food and merchandiseconcession commissions and game-day parking revenue.

9. Investment income: Investment income includes quarterly endowment distributions and interestearnings from cash and investments.

10. Other income: Other income consists of ticket handling fees, guarantee payments received for awaygames, and other miscellaneous income.

11. Compensation expense: The Athletic Department has approximately 400 full time employeesincluding those that have joint appointments with other University units, and various part timeemployees. Compensation expense includes full-time salaries and wages, temporary payroll, andfringe benefits for coaches, direct team support, administrative departments, and facilities.

12. Financial aid to students: The Athletic Department grants the maximum NCAA allowablescholarships to all varsity sports. The total maximum allowable scholarships for FY 2020 is 360.9,with an estimated in-state to out-of-state ratio of 25%/75%.

13. Team and game expense: Team and game expense is comprised of the following:

14. Facilities expenses: Facilities expenses consist primarily of repairs and maintenance, utilities,supplies and equipment, and other facilities expenses.

15. Deferred Maintenance Fund Transfer: In 2002 the Athletic Department established a DeferredMaintenance Fund as a means to provide for repair and rehabilitation projects for the athletic physicalplant. Transfers from the Operating Fund to the Deferred Maintenance Fund are reflected as operatingexpenses in this presentation. In FY 2020, the budgeted transfer to the Deferred Maintenance Fund is$4.0 million.


FY 18 FY 19 FY 19 FY 20

Team travel (includes net post season) 13,041$ 11,600$ 11,892$ 11,489$

Non-conference guarantee payments 3,796 3,383 3,406 5,924

Apparel and equipment 5,927 5,145 5,637 5,690

Training table meals, fueling, and supplements 4,780 4,200 4,700 4,185

Home game expenses 3,153 3,477 3,407 3,632

Recruiting 2,910 2,749 2,944 2,942

Medical expenses and supplies 1,183 1,061 1,085 1,161

Officials 900 953 972 1,095

Other sport program expenses 1,523 1,877 2,018 2,151

Total 37,213$ 34,445$ 36,061$ 38,269$



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16. Other operating and administrative expenses: Other operating and administrative expenses consist of the following:

17. Transfer to University: Transfer to University consists primarily of an allocation of the Athletic Department’s annual television distribution received from the Big Ten Conference and transfers related to recreational sports funding agreements.

18. Debt service: The debt service expense for FY 2020 consists of the following:


FY 18 FY 19 FY 19 FY 20

Insurance, IT, telephone, postage, supplies 4,086$ 4,120$ 4,120$ 4,301$

Credit card fees 1,859 1,950 1,950 2,000

Hosting, food, and special events 1,846 2,216 2,516 1,637

University re-charges 1,218 1,243 1,243 1,331

Professional travel and conference dues 1,122 1,345 1,320 1,284

Marketing, promotions, and ticketing 1,265 1,350 1,350 1,238

Contract labor/services and consulting 1,314 1,123 1,050 1,133

Printing, publications, and photo expenses 746 723 723 655

Other expenses 1,240 1,360 1,360 1,406

Total 14,696$ 15,430$ 15,632$ 14,985$

Total Debt

Interest Principal Service

Stadium project 5,320$ 3,990$ 9,310$

Crisler Center projects 1,877 1,430 3,307

South Campus 2,292 780 3,072

Glick Family Fieldhouse 437 275 712

Stadium concrete 247 235 482

Hartwig renovation 107 85 192

Softball renovation 132 115 247

Rowing facility 2 35 37

Total 10,414$ 6,945$ 17,359$

FY 2020 Budget

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