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March, 2010 1.  All three major sources of revenue are down and under continued downward pressure  Investment market decline means we won’t have the.

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Presentation on theme: "March, 2010 1.  All three major sources of revenue are down and under continued downward pressure  Investment market decline means we won’t have the."— Presentation transcript:

1 March,

2  All three major sources of revenue are down and under continued downward pressure  Investment market decline means we won’t have the endowment income we once expected or the debt capacity we once had  Gift revenue being impacted by that same economic environment  Economic environment resulting in serious pressure to keep comprehensive fee increases small  With these declines, we are facing a $5M shortfall every year for at least four years 2

3 Endowment support to the operating budget is down & volatile 3

4  Balancing the operating budgets for the next 5 years  Making principle payments on our debt  Funding sufficient deferred maintenance  Building sufficient reserves in our financial planning to be able to withstand volatility 4

5  Initial work incorporated into a variety of assumptions into projections  Final actions will be recommended to the Board of Trustees for their approval at the May meeting 5

6  Comprehensive Fee Increase - 3.7%/year  Discount Rate - 36% every year  Incoming class every year  Endowment Investment Return - 8%/year  Continue to spend 5.5%/year  Gift Revenue updated by Advancement  Annual fund up 6% per year  One-time unrestricted giving down 6

7  Projection assumes salaries are frozen for one year except promotions  Incr. in FY12 and out: 2%, 2%, 3%, 3%  RRPTG recommendations confirmed and incorporated  Non-compensation costs flat for one year  Except cost of contracts/agreements  Utilities up only $300,000 based on conservation & forward contracts  Non-compensation costs increase 2% FY12 and beyond 7

8  President & Sr. Staff Salary Reductions$ 57,603  Salary Freeze excl. promotions$800,000  Facilities $442,000  Dining Services $380,000  Athletics $150,000  Student Life $301,000  IT $146,442  Academic Affairs $480,000  Singles in POMCO Health plan contribute 10% $144,000  Communication $ 62,000 $2,963,045 8

9 9

10  Why?  Chronic Annual Cash Shortfall of $1.8 million after RRPTG  57% of Annual Budget from Salaries, Wages, and Benefits  30% growth in employees from to today (from 647 to 840)  107% increase in Salaries Wages and Benefits since ($30 million to $63 million) 10

11 11 University Mission University Expenditure University Revenue Generation

12  Assessing positions and functions, not individuals.  Consider original purpose and current function of each department [position]  Define the skills and capabilities needed for those functions.  Imagine ways to gain efficiencies… ▪ Collaboration ▪ Technology ▪ Eliminating unnecessary functions 12

13  Relate department, (positions) to University Mission  Delineate positions and skills necessary  Expected personnel changes - attrition opportunities  Anticipated new skills, competencies in coming decade  Define key department interactions and improvement possibilities 13

14  Department Strengths? – Measures of success  Obstacles to success – resources needed for more efficiency  Metrics, benchmarks to assess workload and efficiency  Prioritize the possible need to eliminate positions and/or activities if necessary? What would be the negative effects? 14

15  Phase I  Work Force Assessments due April 1  April and May: Analyze Assessments from each division, compare suggestions, determine University-wide implications—The Big Picture  June: Implement any necessary changes  Phase II  Plan campaign completion strategy  Informed by the results of Market Study ▪ Design process and evaluate optimal academic and administrative organizational size and structure ▪ Develop new enrollment marketing plan ▪ Consider new initiatives to add revenues 15


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