UW-Platteville Financial Overview November 2017 Todd Carothers- Assistant Chancellor

Agenda Fund Types Financial Background Projections 2016-17 Closing Balances (June 30, 2017) 2017-18 All Funds Budget Projections Enrollment Projections Budget Forecast model (Fund 102 & TSI) Residence Life, Dining & Segregated Fee Budgets Debt Service Management Actions & Next Steps

Fund Types General Purpose Revenue (GPR) – includes general funding, specific purpose funding, and earmarked funding from the state, primarily from state sales and income taxes [Funds 102, 104, 109, 110, 402, 403, 406] Program Revenue (PR) – includes tuition, auxiliaries, and segregated fees, as revenues received for services or from users [Funds 123, 128, 131, 132, 136, 189] NOTE: Segregated fees are charges assessed to students including textbook rental, health services, student center operations, athletics, intramural sports, parking, student activities (allocable), municipal services, children’s center and ID systems. Federal Revenue (PR-F) – includes federal grants, financial aid, direct loans, as revenues from a federal agency [Funds 144 – 150] Gifts and Grants – includes revenues from the Foundation, non federal grants [Funds 133, 134, 184, 233]

UW-Platteville Financial Background

FY2016-17 Closing Balances Tuition balance dropped $2M or 2.7%; Auxiliaries due to funds held to fund future projects and mitigate future enrollment declines. Other Unrestricted-1 year worth of debt service

2017-18 Budget

Categories of Expenditures

Projections

Enrollment Projections (ADS/Study Abroad excluded) Enrollment Management has projected continued declining enrollments

Budget Forecast Model (Fund 102 + TSI)_ This is based on a tuition shortfall in future years equal to the projection for FY18 Net operating (amount of expenditures that exceed available revenue) -Assumes 100% expenditure of budgets. -Excludes a $3.0 million reserve.

Residence Life 5-Year Budget Projection Spending down balances, next rate increase planned for FY20 for 2% and FY22 for 2% Down significantly in residents from previous years; 5-year projections for new freshman are fairly stable to this year’s number so Res Life will likely stay closer to the amount of residents they have this year, which will impact what renovations and improvements they will be able to afford in the future.

Dining Services 5-Year Budget Projection Spending down balances, there are no rate increases currently included in the projection Similar to Res Life, when residents are down, so are the meal plan sales; 5-year projections for new freshman are fairly stable to this year’s number so meal plans will likely stay closer to the amount of plans they have sold this year.

Segregated Fees 5-Year Budget Projection Most areas are spending down previous balances and operating at deficits, so with the projected decreased total enrollments they will see larger deficits and then be forced to either increase rates significantly (in some areas) or make base budget adjustments. Currently, rate increases are projected for the following: PAC - $7 for normal operating expenses since they have been spending down balances; at least $13 to fund additional operating costs with the WFH expansion Athletics – Increases in FY21-23 to maintain normal operating costs MPSC – Increases in FY20 & FY21 to maintain normal operating costs; additional increase in FY22 when the bond expires to account for ongoing maintenance and improvements that will need to be made in that building. Event Services – Increases in FY20-FY23 to maintain normal operating costs Student Health & Counseleing – Increases in FY19-23 to fund increases in staffing costs, including increased contract costs for SWH providers Textbook Rental- Significant increases in FY19 & FY20 to implement a 5-year textbook replacement cycle; smaller increases for FY19-23 just to maintain normal operating procedures since they have been spending from balances SUFAC Allocable Fee – A small increase is planned for FY20 as the students would like to have additional funds for student organizations since requests have continued to grow but the available funds are decreasing.

Debt Service Budget Detail UWPLT’s debt load has been decreasing on general fund the past few years and increased slightly for FY18, fluctuating on Auxiliaries based on projects that moved forward or not and steady on TSI (change in methodology in TSI to budget for actual debt service rather than flat $2,070,000). FY2013=$13.9m; FY2014=$17.4m (assumed bonding Bridgeway); FY2015=$15.5m; FY2016=$15.1 million; FY2017=$13.3 million; FY2018=$13.8 million

Management Actions What actions can we take to mitigate? Leverage existing balances Reduce expenditures Raise auxiliary rates A major focus on revenue producing investments and investments to increase enrollment.

Next Steps Training opportunities Group sessions have been offered (WISDM, Travel, Excel) Individual or specialized training for a specific group Online “on-demand” trainings will be available within the next year Seek help/consult as needed to support decisions