1. www.uwplatt.edu UW-Platteville Convocation Robert Cramer Vice Chancellor August 2012 http://www.uwplatt.edu/budget/presentations.html

2. www.uwplatt.edu Financial Results 2011-12

3. www.uwplatt.edu General Purpose Revenue (GPR) – includes general funding, specific purpose funding, and earmarked funding from the state, primarily from state sales and income taxes Program Revenue (PR) – includes tuition, auxiliaries, and segregated fees, as revenues received for services or from users Federal Revenue (PR-F) – includes federal grants, financial aid, direct loans, as revenues from a federal agency Segregated Funds (SEG) – includes transportation fund and other separate state accounts, credited by law to a specific state fund Gifts and Grants – includes revenues from the Foundation, non federal grants Budget Definitions

4. www.uwplatt.edu All Funds Summary (Cash Basis) Beginning Cash$ 23,128,452 Total Revenue$127,981,774 Total Expenses$126,913,276 Net Income$ 1,068,498  Excluding direct student loan amounts Closing Balance$ 24,196,950 Preliminary Ending Financial Position

5. www.uwplatt.edu Fund 102$4,426,218 (General operations, tuition revenue, base of $47 million) Fund 123$4,001,400 ( Debt service, $4 M base) Fund 128$4,096,650 (Dining, housing, parking, base of $25 million) Fund 131 $8,474,838 (DLC, School of Ed Cost Recovery, TSI, base of $15 million) Fund 136$1,693,089 (Similar to 128, HTCP, camps & conferences, base of $3.7 million) Select Fund Balances

6. www.uwplatt.edu Carry Over Balances by College/Division Chancellor & Diversity15,487.00 Provost109,389.00 Administrative Services189,992.00 Graduate Studies & Library40,518.00 Student Affairs22,800.00 Advancement/Development153,796.00 Admissions & Enrollment Services48,262.00 LAE40,212.00 BILSA171,683.00 EMS699,780.00 Budget Lapse312,841.00 Grand Total Carryover***1,804,760.00 ***Excludes accounts that automatically carryover (i.e. Fund 128, 136, some 131) New Budget Tool – Carry Overs

7. www.uwplatt.edu Financial Metrics  Expense Ratio – the annual expenses divided by annual revenue – less than one means that all of the current year’s income was not spent  Composite Financial Index – four financial ratios, weighted and combined into one, with values between -4 and 10 that measure the overall financial health of an institution  Primary Reserve Ratio – expendable net assets divided by annual expenses – measures how long the institution could rely on reserves to meet operational costs Financial Health Measures

8. www.uwplatt.edu Expense Ratio is an indication of the University’s ability to cover the expenses endured by cash inflow. (less than 1.0 is desirable) Expense Ratio – Spending / Revenue

9. www.uwplatt.edu Combines 4 weighted ratios to provide a snapshot of overall financial health of the University 1) Primary Reserve Ratio: Are resources sufficient and flexible enough to support the mission? 2) Net Operating Revenue Ratio: Do operating results indicate the institution is living with available resources? 3) Return on Net Assets Ratio: Does asset performance and management support the strategic direction? 4) Viability Ratio: Are resources, including debt, managed strategically to advance the mission? Composite Financial Index

10. www.uwplatt.edu CFI Trend and Components

11. www.uwplatt.edu Computed by comparing expendable net assets, including those invested in plant, to total expenses. Results represent the fraction of a year, showing how long the University could function without income. Primary Reserve Ratio

12. www.uwplatt.edu Total Cost per Student FTE Cost Per Student FTE Definition: Fund 102 & 131 (less Distance Learning) divided by number of full-time equivalent students

13. www.uwplatt.edu Annual Average: $5,224 State Funds / Resident FTE Definition: All GPR Funds Expenses / Resident FTE

14. www.uwplatt.edu State funding of 40% Final 2001-2002 UW-Platteville Budget $73.6 Million 2001-02 Budget

15. www.uwplatt.edu State Funding of 18% 2011-12 Budget - $160.4 million All Funds

16. www.uwplatt.edu 2012-13 Budget Final 2012-2013 UW-Platteville Budget $172.6 Million (all funds) Final 2012-2013 UW-Platteville Budget $126.1 Million (excluding federal aid) State Funding of 22% State Funding of 17%

17. www.uwplatt.edu Total enrollment is approaching 7,700 students this year (1,650 new freshmen) TSI enrollment approaching 1,400 students with revenues of $13.5 million (510 new students) Registrations for online programs are now over 2,900 UW-Platteville is now a tuition-driven institution - $53 million this year (almost twice the amount provided by the state) Enrollment and Finances

18. www.uwplatt.edu Looking Forward

19. www.uwplatt.edu Regulations and State / Federal Oversight Continue Slow Economic Growth Continues Pressure on State Funding and Tuition Disruptions From New Education Models Demographic Changes Learner Expectations Key Challenges

20. www.uwplatt.edu Flexibility provided in 2011-13 biennial budget turns out to be modest and slow to implement Modest recommendations from the statewide UW System Restructuring Task Force Federal regulations will expand following Penn State and the focus on student debt and tuition Universities create own regulatory environment internally as pressures mount Regulatory Environment

21. www.uwplatt.edu Source: The Conference Board Global Economic Outlook 2012 Projected US and Global Economic Growth Rates

22. www.uwplatt.edu Disruptions continue and new educational models will be tried  UDACITY, Coursera, and other MOOCS (massive open online courses)  UW System Flexible Degree Program  “Flipping” the Classroom Interesting Description of the Future - http://epic2020.org/ http://epic2020.org/ New Educational Models

23. www.uwplatt.edu The number of high school graduates will continue to change by region Nontraditional students will be a larger percentage of students in higher education Hispanic students represent the fastest growing group of high school graduates Continuing Demographic Changes

24. www.uwplatt.edu Projected High School Graduates by Region Source: The College of 2020: Students Chronicle Research Services

25. www.uwplatt.edu Growing Number of Nontraditional Students Source: The College of 2020: Students Chronicle Research Services

26. www.uwplatt.edu Changing Ethnic Make-up of High School Graduates Source: The College of 2020: Students Chronicle Research Services

27. www.uwplatt.edu Bring Your Own Device World (BYOD) Anytime Anywhere Access to Materials eBooks coming to a high school near you Khan Academy has content for K-12 students Quick feedback via learning management systems such as D2L Learner Expectations

28. www.uwplatt.edu Acknowledge the brutal reality of the situation and move forward:  Strategic Planning  Expanding Our Sources of Revenue  Controlling Existing Costs Opportunities to Control Our Own Destiny

29. www.uwplatt.edu Draft plan presented in April and May Steering Committee is updating drafts based on feedback Additional sessions in August and September including offer to meet with every department Campus forums in September and October Finalize plan in November Details at http://www.uwplatt.edu/planning/ Strategic Planning

30. www.uwplatt.edu Proposing a new mission, vision and four strategic priorities Ensure plan leads to action through a steering committee that connects planning with budgets Initiate a review of how we need to budget so that we allocate funds based on the plan and not past practices Strategic Planning (continued)

31. www.uwplatt.edu DRAFT Strategic Priorities Provide a Distinctive Education Foster a Community of Achievement and Respect Control Our Own Destiny Enrich the Tri-State Region

32. www.uwplatt.edu Robert Cramer, Vice Chancellor for Administrative Services – Executive Sponsor Donna Anderson, Academic Staff Wendy Brooke, College of BILSA Dennis Cooley, Assistant Chancellor for University Development Dawn Drake, Director of Distance Education Melissa Gormley, College of LAE Annie Kinwa-Muzinga, College of BILSA Mittie Nimocks, Provost Kassie Popp, Student Senate David Schuler, College of LAE Yan Shi, College of EMS Becky Troy, Classified Staff Angela Udelhofen, Assistant Chancellor for Admissions Joanne Wilson, Interim Assistant Chancellor for Student Affairs Timothy Zauche, College of EMS Strategic Planning Steering Committee

33. www.uwplatt.edu Targeted growth through enrollment management Identifying new opportunities and markets Leveraging our strengths with new partners Expanding Our Sources of Revenue

34. www.uwplatt.edu Huron review of information technology and classroom management Energy efficiency audits Partnering with the Real Estate Foundation Business Process Improvements to free up time Controlling Existing Costs

35. www.uwplatt.edu UW-Platteville cannot stand still Conclusion