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Office of the President May 4, 2011 PARADIGM SHIFT: The New Face of a “Public” University.

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Presentation on theme: "Office of the President May 4, 2011 PARADIGM SHIFT: The New Face of a “Public” University."— Presentation transcript:

1 Office of the President May 4, 2011 PARADIGM SHIFT: The New Face of a “Public” University.

2 Office of the President 2

3 A CCOMPLISHMENTS FY 2011 Record enrollments: 25% growth (in FTE) since fall 2008 Four Forest Restoration Initiative agreement – the largest forest restoration project in the U.S., possible in the world Centralized student transfer system Princeton Review: NAU in the guide to ‘green colleges’ e-Planning e-PAR Top grant awards FY 2011: –The Partnership for Native American Cancer Prevention: $1.7 million –Microbial Forensics (Dr. Keim): $1.6 million –ERI: $1.5 million –American Indian Air Quality Training Program: $1.5 million –Northern Arizona University Noyce Fellows Program: $1.5 million 3

4 Office of the President E CONOMIC R ECOVERY AZ sales revenue up by 8.4 % in Feb 2011 (compared to Feb 2010) JLBC projects FY 2012 surplus of $5.2M BUT 1% temporary sales tax sunsets on 5/31/2013 AZ’s structural deficit has not been addressed (FY 2014 deficit projected to be $600M) Nationally, “economic growth slowed to a crawl” 4

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7 NAU’ S P LANNING E NVIRONMENT Enrollment in FTE grew by 25% since the budget cuts started in FY 2008 –Amounts to $33 million today. State General Fund decreased by 36% since FY No enrollment growth support since FY 2009 State General Fund Appropriation per FTE is lower than it was over 20 years ago ( )

8 Office of the President 8

9 S TATE G ENERAL F UND + G ROSS T UITION AND F EE S UPPORT PER FTE 9 *Estimate

10 Office of the President H IGHER E DUCATION M ARKETPLACE 10 Sources: Average FY 2009 Tuition – IPEDS Population 2009 – U.S Census Bureau FY 2011 State Support for Higher Education – Grapevine Project

11 Office of the President C URRENT FY11 B UDGET S ITUATION 11 Green shaded pieces are the basic university expenditure supports Yellow shaded pieces provide some university support Red shaded pieces are not generally available for direct support Estimated all funding sources: Total = $444 million

12 Office of the President 12 FY12 B UDGET S CENARIO Estimated total = $430 million

13 Office of the President 13 FY11 E STIMATED $444M FY12 E STIMATED $430M

14 Office of the President C HANGES IN R EVENUE S OURCES 14 24%

15 Office of the President P ERFORMANCE F UNDING (ABOR) Base + Adjustment to the Base + Performance Funding = University Funding 15 Components of Performance Funding 1.Increases in SCH completed 2.Increase in number of degrees produced 3.Increases in research funding 4.Success in meeting the state’s economic development goals 5.Maintaining or enhancing quality

16 Office of the President A DDRESSING S TATE B UDGET C UTS & P REPARING F OR A D IFFERENT B UDGET S TRUCTURE 16 FY 2008: $2,595,300 Hiring and travel freeze Layoffs, contract reductions Retirements FY 2012: $30,100,000 Salaries and benefits Operating efficiencies Diversion of one-time funds + tuition and fee collections Managed a total of $63M of state support cuts since 2008 Stimulus - Replacing state funded salaries - Moderating tuition increases Enrollment Growth University Budget Cuts Moderate Tuition Increases FY 2009: $24,500,700 Reduced operating budgets Layoffs, contract reductions Retirements Closed Center for High Altitude Training, Social Research Laboratory Closed several community campuses; reduced services Increased faculty and staff workloads and limited hiring despite enrollment growth FY 2010: $6,096,200 All employee furloughs; VSRP Offered fewer courses and increased class sizes Decreased tenure density FY 2011: $30M Rollover continues Implemented business processes, financial strategies, and academic policies to maximize efficiencies VSRP II.

17 Office of the President I MPLICATIONS OF B UDGET C UTS $230 million in unfunded building renewal Change in faculty composition Faculty, staff, and administrative salaries Total expenditures in personal services and benefits have not kept up with enrollment growth Class sizes Faculty workload Changes in academic programs Technology efficiencies 17

18 Office of the President F ULL -T IME I NSTRUCTIONAL F ACULTY C OMPOSITION 18 N=708; FTE Students per Faculty = 24:1

19 Office of the President AAUP RANKED FACULTY PEER COMPARISON Good progress(went from avg $69K to $74K) Still Last RankPeerAverage for OrderInstitutionAll Ranked Faculty 1 George Mason University 95,800 2 University of Nevada-Las Vegas 94,600 3 The University of Alabama 92,500 4 Georgia State University 92,000 5 University of North Carolina at Greensboro 85,800 6 Kent State University Kent Campus 85,300 Weighted Average (Peer Mean) 85,200 50th Percentile (Peer Median) 84,400 7 Old Dominion University 83,400 8 Southern Illinois University Carbondale 81,400 9 Ohio University-Main Campus 81, Western Michigan University 80, University of Akron Main Campus 79, University of Maine 78, Northern Illinois University 76, Bowling Green State University 75, Wichita State University 75, Northern Arizona University 74,300 Percentage to Market 14.6 Percentage from Market -12.8

20 Office of the President S ALARY M ARKET C OMPARISONS 20

21 Office of the President E NROLLMENT G ROWTH 21 Flagstaff Community Campuses Online Yuma

22 Office of the President G RADUATE AND U NDERGRADUATE E NROLLMENTS 22

23 Office of the President 23 All Diverse Students Latino Students Native American Students International Students D IVERSITY

24 Office of the President FY 2012 B UDGET P LAN R EDUCTION OF $198M NAU S HARE IS $30.1M Strategy Approx. Amt Discussion Tuition and Fee Collections $6-8M ($6 million with stable enrollment) Rebate new resident Pledge students $350 (estimated $1.2M) Additional financial aid (RSA and scholarships) to be provided estimated to be $3.5M Graduate Assistant Waivers from 75% to 100% of Tuition Reductions, savings, revenue growth from Divisions, Debt Service, Salaries and Benefits (Employee Related Expenses – ERE) $15M FY 2011 Voluntary Retirement Program for Tenured Faculty should bring in $1,2-$1.6M with ERE Debt service reduction of $1.9M Changes/increases in benefits prices for employees Divisional/central budget reductions Operating Efficiencies in all Divisions $0-$2M Innovations that reduce costs per FTE Reduce state budget flexibility and one time expenditures, reserves, auxiliary accounts $4-7M Diverting one-time funds for FY12 and FY13 knowing our base or structural deficit must be corrected by FY14

25 Office of the President 25 Cabinet Level Target Reduction (Millions) Provost$3.8 EMSA (Enrl Mgmt & Student Aff)1.1 Extended Campuses0.97 Capital Assets0.6 Information Technology Services0.6 Finance & Administration0.3 President0.3 Advancement0.1 Research0.1 Institutional Effectiveness0.1

26 Office of the President P OSSIBLE B UDGET S TRATEGIES UNDER S TUDY Reductions in benefits Hiring freeze Furloughs Increases in summer school and winter term Cost/benefit analysis of Community Campuses Review of centers, institutes and public service offices 26

27 Office of the President L EVERS FOR A DJUSTING THE A CADEMIC A REA B UDGET Reallocation of faculty work efforts Additional use of technology in delivering course materials – requires less faculty time Academic coaches/advocates to provide support/motivation to students Increase minimum class sizes where practical Offset additional expenses to class and program fees Renewed emphasis on summer school/winter session 27

28 Office of the President Investing in Strategic Initiatives is Critical for NAU’s Long-term Health 28

29 Office of the President H OW DID THE FY11 B ASE B UDGET CHANGE ? Major Additions (new funds) for Budget Over $3 Million from Voluntary Retirement Incentive Program (VSRIP) Over $8 Million from enrollment growth and tuition and fees Approximately $2 Million of debt payment reduction Major Budget Investments Nearly $6 Million for Market Adjustments, Workforce Planning, and Minimum Wage $5M for Class Coverage and Undergraduate Support 29

30 Office of the President FY11 S IGNIFICANT O NE -T IME I NVESTMENTS Debt Repayment South Beaver School Lease/Liberal Arts Staircases and FF&E Police Radio Academic Building Repairs Skydome/Athletics Temporary Moving/Locations, etc. Quad Roofs, Other Building Maintenance, Fire Life Safety Issues Retention Initiatives Operations for Colleges and Units Software Systems Research Transportation Spine 30

31 Office of the President S TRATEGIC I NVESTMENTS 31 LEADERSHIP DAY RECOMMENDATIONS Investments in Capital Assets 100% graduate assistant tuition waivers Oracle/PeopleSoft Financial System Efficiencies (grants, paperless campus) Compliance (bio-safety auditor) Retention Initiatives Cline Library …. APPROVED 100% Graduate Student Waivers Oracle/PeopleSoft Financials Retention Initiatives (Coaches/Advocates) UNDETERMINED Capital Assets Part-time Faculty Salaries Admissions Cline Library Branch Campuses

32 Office of the President C AMPUS I NFRASTRUCTURE P ROJECTS Completion Fall 2011 Health and Learning Center Skydome Liberal Arts North Plant Native American Cultural Center North Quad Transportation Spine Science Lab Facility 32 Completion 2012 San Francisco Parking Garage Residence Halls Ardrey Auditorium Seating Classroom Upgrades Potential Future Projects Multi-purpose Facility Science/ Health Facility

33 Office of the President S UMMER C ONSTRUCTION P ROJECTS 33

34 Office of the President W HAT IS THE N EW F ACE OF A “P UBLIC ” U NIVERSITY ? Mission and Accountability Technology Funding 34

35 Office of the President Thank you. Questions? 35


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