Spring 2014 Budget Update March 2014

Agenda Current Budget Status Discussion Items Proposed Auxiliary Rates

Total Price of Attendance

Total Price of Attendance Detail This slide is to keep affordability in mind during the context of decisions regarding budget funding and therefore tuition and fee rates.

FY2012-13 Closing Balances All Funds Summary (Cash Basis) Beginning Cash $ 24,495,297 (July 1, 2012) Total Revenue $149,680,085 Total Expenses $145,363,000 Net Income $ 4,317,085 (Excluding direct student loan amounts) Closing Balance $ 28,812,382 (June 30, 2013) The $28.8 Million is about 20% of expenses We don’t want to be seeing additional net income at the end of this year – we should see zero or a negative to show we are spending down one-time funds

Board of Regents Policy Regarding Cash Balances Four categories – Tuition, Auxiliaries, General Operations, and Other Minimum of 10% of current year expenses to be held as UNPLANNED Reserves for Tuition & Auxiliaries Max of 15% of total current year expenses to be held by each campus This leaves ONLY 5% of current year expenses for planned spending

Budget Forecast Model Projected Closing Balances Current Scenario FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 As of 2/10/14 7,144,380 5,122,383 3,054,727 533,403 (2,399,776) (5,719,645) Above scenario assumes: $3M base on-going reduction; Additional $1.1M and approx. 14 positions are reduced due to lower enrollment projections in 14-15; Another $425,300 & 5 positions in 15-16 Assumes 0% tuition increase in 2014-15, 2% thereafter Assumes no continuing TSI incentive grants ($530,000 impact) This is for our core financial model – TSI, tuition revenues (excluding alternative delivery cost recovery programs), and most state funding and does not include other funds such as residence life, dining services, or international programs The previous model we showed back in July without any budget reductions taken into account showed we would be in the red by the beginning of FY2016, so we are making progress but we still have a ways to go. UW-Platteville’s Reserve Goal per Board of Regents 10% recommendation: $6,100,000

Tuition Revenue Tuition Target for Pooled Revenue=$34,264,494 Variance Original Estimate 5.2013 $36,179,000 $1,914,000 Fall 2013 $35,470,000 $1,200,000 Spring 2014 $35,835,000 $1,571,000 TSI Estimate 5.2013 $15,320,000 - $14,310,000 -$1,010,000 $14,285,000 -$1,035,000 Model has not been updated to reflect projected addl revenue since Fall receipts are lagging behind projections at this point. Note – these figures exclude distance learning, study abroad, and school of education cost recovery students

Original Spring Billing FTE Revised Spring 2014 Billing FTE Enrollment Original Fall Billing FTE Fall 2013 Billing FTE Original Spring Billing FTE Revised Spring 2014 Billing FTE Spring 2014 Billing FTE Undergrad Resident 5,510 5,515 4,960 4,965 5,012 Undergrad NonRes 180 155 160 140 Graduate Resident 95 74 85 65 70 Graduate NonRes 25 18 15 17 Subtotal Pooled Enrollment 5,810 5,762 5,230 5,185 5,239 TSI Enrollment 1,580 1,482 1,420 1,335 1,324 Total Pooled & TSI Enrollment 7,390 7,244 6,650 6,520 6,563

Enrollment Projections

TSI Incentive Grants Discussion: We need to address the TSI incentive grants for continuing students. Are we going to eliminate the continuing incentive grant of $500/year as we had planned? The TSI Budget model assumes FY2013-14 is the final year of those grants.

Summary of Current & Future Budget Reductions This table summarizes the current base budget reduction, the base TSI reduction built into the budget model beginning in FY15, and the possible future base budget reductions that would be necessary to meet the Board of Regent’s 10% reserve policy.

Current Budget Reductions

Projected Additional Budget Reductions Saved in 14-15 Budget folder as “FY15 Getting to Stable-2014.02.25” Notes: The budget for Admissions and Fin Aid excludes Federal financial aid. This is just one example of how future budget reductions could be allocated out to the divisions.

Plan for TSI $1M Reduction The budget model currently includes an ongoing reduction of just over $1 Million from the TSI budget for 2014-15. Options A-C: Reduce the base budgets going into FY2014-15. Option A: Based on Salary & Fringe as a % of Total Salary & Fringe Option B: Based on Salary, Fringe & Supplies as a % of Total Budget Option C: Based on a % of Salary, Fringe & Supplies – weighted more heavily towards non-college budgets (See the following slide for $ impact) Option D: Wait until the end of Q1 in FY2014-15 and take cash from available TSI savings as a one-time reduction.

Plan for TSI $1M Reduction: Options A-C Options A-C: Reduce the base budgets going into FY2014-15. Reduction Target: $1,054,100 From “TSI Budget Comparison FY2014 – 2014.02.25”, FY15 Reduction Options tab Note: TSI Debt Service was excluded from the budget.

One-Time Compensation Increases Discussion: Do we want to pay out one-time compensation in the current year to address inequities using available balances? How much? Saved in 13-14 Budget Presentations folder as “Summary of FY13 Lump Sums”

Possible Re-establishment of Capital/Lab Mod/Classroom Upgrade Funding Discussion: Do we want to re-establish a central pool for funding Capital/Lab Mod/Classroom upgrade requests? If so, where will the funds come from? How much? FY13 Amounts: Lab Mods: $271,321 Capital: $103,560 (each college received $25,000) Central funding of classroom upgrades?

Budget Management Principles Possible Changes: Carryover 80/20 (with the possibility for exceptions?) Fringe Savings within TSI will be returned to improve the core model Position Control: Academic Affairs and Colleges Vacancies revert to Dean or Provost. New positions will be approved by Dean or Provost, in consultation with the budget office. Position Control: Non Colleges Vacancies revert to the Provost. New positions will be approved by the Provost, in consultation with the budget office. For NEW positions, salary savings do not accrue to departments until the position is filled. Carryover funds that are not spent/encumbered within Q2 will be taken centrally and reallocated. Internal campus loans can be used to fund large purchases to allow departments/divisions to repay the loan over a period of years rather than saving funds and carrying them over from year to year to make the large purchases. Fringe Savings in TSI: This could help reach the $1.1 M TSI reduction. If fringe savings don’t revert back, it would end up being another shortage that will need to come back from TSI budgets any ways – just a matter of how you look at it. There is no value-added to have budget staff take the time to determine which fringe savings are from vacants vs. lower actual variable and health insurance costs per person.

Proposed Room & Board Rates

Proposed Room Rates

Proposed Board Rates

Proposed Segregated Fees

Proposed Segregated Fees