Town Hall Meeting Development of Next Two-Year Budget FY2010 and FY2011 December 4, 2008 Presented by: Scott Bass, Provost and Don Myers, Vice President.
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Presentation on theme: "Town Hall Meeting Development of Next Two-Year Budget FY2010 and FY2011 December 4, 2008 Presented by: Scott Bass, Provost and Don Myers, Vice President."— Presentation transcript:
Town Hall Meeting Development of Next Two-Year Budget FY2010 and FY2011 December 4, 2008 Presented by: Scott Bass, Provost and Don Myers, Vice President of Finance and Treasurer
2 PRELIMINARY TIME TABLE December 1, 2008President issues call to the provost and vice presidents for development of strategic objectives, action steps and budget proposals. December 2 – 19, 2008 Provost and vice presidents develop an initial set of university- wide objectives and action steps, priced and prioritized; The University Budget Committee (UBC) begins construction of enrollment and revenue models and conducts outreach, including town meeting(s); The Strategic Planning Steering Committee (SPSS) requests community comment and input on existing inventory of suggested action steps; The President’s Council and SPSS review and discuss possible action steps for the first two-year phase of plan implementation.
3 PRELIMINARY TIME TABLE (continued) December 20, 2008 – January 5, 2009 Provost and vice presidents refine objectives, action steps for each goal, prioritized and priced; President meets with Provost and vice presidents individually to review objectives, action steps and proposed budgets; Provost and vice presidents submit budget proposals, incorporating prioritized action steps to the President. January 5 – 23, 2009 President reviews and approves objectives and action steps and other elements of proposed budgets; President transmits proposed budgets to Budget Office and UBC for further processing and deliberation; UBC continues deliberations and outreach.
4 PRELIMINARY TIME TABLE (continued) January 24 – February 11, 2009 Faculty Senate issues recommendations on the two-year budget to the Provost; UBC develops proposed budget and transmit to President for review; President, Provost and Vice President of Finance meet to resolve remaining revenue/expenditure gaps in the proposed budget and to reach final decisions on objectives and action steps for the first two-year phase of plan implementation; President meets with other vice presidents to communicate final decisions on objectives, action steps and proposed budgets. February 20 – 21, 2009 Board of Trustees approves the strategic plan objectives, action steps and the FY2010-11 budget.
5 PRELIMINARY TIME TABLE (continued) March, 2009 President communicates final versions of objectives, action steps and budget to the campus community; President communicates budget allocations to the provost and vice presidents. April, 2009Units develop line-item budgets for the new budget year. May 1, 2009New fiscal year begins.
6 Campus Constituencies Strategic Planning Steering Committee Faculty Senate Student Government Graduate Leadership Council Student Bar Association Staff Council Or e-mail: AUBudget@american.edu
7 How FYs 2008-9 Budget Development Guidelines Worked? Guidelines Implementation 4.5% - 6.5%; market driven pricing 6% tuition and housing; 0% and 3% for MBA and graduate business; Freeze undergraduate summer rate for two years Marketing strategy$1.5 million to revamp web; graduate marketing; Create a University Communications and Marketing unit. Academic Programs15 new tenured & tenured-track faculty; new temporary faculty; adjunct faculty Faculty and Staff Salary and Benefits 3.7% for faculty and staff; An additional 0.5% pool for faculty market; Health; Wellness Program Financial Aid29% tuition discount for undergraduate and graduate students; athletic scholarships
8 How FYs 2008-9 Budget Development Guidelines Worked? Guidelines Implementation Development Eliminated a 5% assessment on restricted gifts. $250K for the next phase of Capital Campaign. International InitiativesAU Abroad; international student recruitment Information TechnologyIT capital plan; Enterprise system development and support; R18 Implementation; Web Library$400K new funding for library acquisition New SIS Building and SOC Renovation Gifts and debt service for SIS; SOC renovation in discussion
9 How FYs 2008-9 Budget Development Guidelines Worked? Guidelines Implementation Enrollment Contingency 1.5% of tuition revenues as planned Quasi-EndowmentAdjusted to 1% of revenue budget in FY08; 2% of revenue budget in FY09 as planned Facilities Modernization, Furnishings and Equipment $1.8M each in FY08; $2.1M each in FY09 Institutional ExpendituresUtilities, contractual obligations, regulatory changes Student Services New Nebraska Residence Hall; $400K to enhance the quality of student life New RevenueIncreased endowment income to $3M in FY08 and $3.2M in FY09; auxiliary enterprises; WAMU
10 BUDGET DEVELOPMENT GUIDELINES FISCAL YEARS 2010 and 2011 A framework for developing the two-year FY2010-11 budget Initial action plans of the new Strategic Plan as the guiding principle in formulating budget priorities Some initiatives require new funding, reductions or redeployment of existing resources. Approved by the Board of Trustees in November, 2008
11 BUDGET DEVELOPMENT GUIDELINES FISCAL YEARS 2010 and 2011 1. A Linkage between initial action plans of the new Strategic Plan and resources 2. Pricing: 4.5% - 6.5%. Market-driven pricing for summer and MBA 3. Enrollment Market demands, selectivity, quality instruction and student experience Creative marketing and financial aid strategies
12 Undergraduate Tuition and Mandatory Fees AmericanAll 3-TiersPrivate UniversityAverageInstitutions AY95-96 to AY96-973.7%4.9%5.0% AY96-97 to AY97-984.6%4.7%5.0% AY97-98 to AY98-994.7%5.6%5.0% AY98-99 to AY99-004.8% 4.7% AY99-00 to AY00-015.0%4.5%5.2% AY00-01 to AY01-025.1%5.2%5.5% AY01-02 to AY02-034.3%6.3%5.8% AY02-03 to AY03-045.9%7.3%6.0% AY03-04 to AY04-055.9%6.4%6.0% AY04-05 to AY05-066.5%6.3%5.9% AY05-06 to AY06-075.9%6.0%5.9% AY06-07 to AY07-085.9%5.6%6.3% AY07-08 to AY08-095.9%5.5%5.9% AVERAGE5.2%5.6%5.5%
13 BUDGET DEVELOPMENT GUIDELINES FISCAL YEARS 2010 and 2011 4. Academic Programs Research functions, support for faculty research and development Development of new academic program revenues 5. Competitive faculty and staff salary 6. Financial aid, library, information technology 7. Student services 8. Multi-year environmental sustainability initiatives
14 BUDGET DEVELOPMENT GUIDELINES FISCAL YEARS 2010 and 2011 9. Capital projects and deferred maintenance – SIS, etc. 10. Strengthen financial safeguards to protect the university 11. Institutional expenditures 12. New revenue through innovations