1 The Florida International University Faculty Senate Meeting Operating Budget FY07-08 & Budget Reduction Plan September 18, 2007

2 AGENDA The Florida International University FACULTY SENATE MEETING  University-wide Budget Summary by fund  Highlights & Strategic Issues  Shortfall in State Funding  Tuition Veto  Academic Investments  Budget Reduction Plan  Decide FIU’s targeted level of cuts  Establish Guiding Principles for Budget Reduction Plan  Create a parallel process that identifies immediate and long term savings  Academic Affairs Allocation Methodology

3 UNIVERSITY WIDE BUDGET SUMMARY

4 E & G INCREMENTAL REVENUE Existing State Funding $215M Additional State Funds $33.5M FIU achieves a 15.5% Increase in State Operating Funds Student Tuition $101.3M Key Projects endorsed Med School $5.4M Life Sciences $4M Research $5M Hurricane $2.4M Operating Concerns: No salary increases, only lump sum bonus across the board 2/3 restricted line items 1/3 non-recurring Enrollment under-funded

5 STATE ENROLLMENT GROWTH FUNDING 24,609 25,894 5% 25,161 Enrollment Growth Funding of $9.2M was $12.7M less than original BOG Enrollment Target 23,995 1,899 FTE fully funded $21.9M 1,089 FTE fully funded $12.8M

6 E & G TUITION STRATEGY Graduate resident tuition increase of 5% Increased tuition results in $1.3M incremental gross tuition $309 $263 $272 $254 $269 Note: Matriculation fee found in the bars while total per credit including fees highlighted above the bars

7 E & G EXPENDITURES Incremental Funding New Faculty Hires - $3.2M Graduate Education and Research - $2.1M Legislative Line Item Hires, specifically College of Medicine - $6.5M Expenses, specifically research enhancements - $10.9M Salary & Insurance Payments- $6.8M New Faculty Hires - $3.2M Graduate Education and Research - $2.1M Legislative Line Item Hires, specifically College of Medicine - $6.5M Expenses, specifically research enhancements - $10.9M Salary & Insurance Payments- $6.8M $23.9M

8 E & G EXPENDITURES Incremental Funding Student Support Services - $1.3M Safety & Emergency Management - $1M Community Relations Expansion - $1M Employee Benefit Expansion Program - $2M Salary and Insurance Payments - $3.2M Student Support Services - $1.3M Safety & Emergency Management - $1M Community Relations Expansion - $1M Employee Benefit Expansion Program - $2M Salary and Insurance Payments - $3.2M $10.5M

9 UNIVERSITY WIDE BUDGET SUMMARY

10 AGENDA The Florida International University FACULTY SENATE MEETING  University-wide Budget Summary by fund  Highlights & Strategic Issues  Shortfall in State Funding  Tuition Veto  Academic Investments  Budget Reduction Plan  Decide FIU’s targeted level of cuts  Establish Guiding Principles for Budget Reduction Plan  Create a parallel process that identifies immediate and long term savings  Academic Affairs Allocation Methodology

11 MINIMUM 4% REDUCTION $8.7M MINIMUM 4% REDUCTION $8.7M BUDGET REDUCTION RANGES 6 % REDUCTION $13M 8% REDUCTION $17.4M 8% REDUCTION $17.4M MAXIMUM 10% REDUCTION $21.7M MAXIMUM 10% REDUCTION $21.7M  Governor requested a plan for 10% budget reduction  General Revenue disbursements from the state have already been cut by 4%  State revenue estimates from August 2007 indicate that the cut could reach as high as 6% with a multi-year impact  Legislative Special Session cancelled extending the uncertainty

12 BUDGET REDUCTION GOVERNOR’S PROPOSAL Governor’s proposal would completely eliminate all new incremental recurring funding at a disproportionate share 1.The only additional recurring funds were for annualization of salaries and benefits adjustment from prior year 2.Includes Courtelis Grant of $2.6 million and FIU Hispanic Crime Prevention Program of $2.6 million

13 RECOMMENDED GUIDING PRINCIPLES Academic Mission Students first: protect undergraduate core education and graduation Research: continue investments in high-priority core areas No across-the-board cuts : strategically tailored reductions Flexibility : units prioritize All Inclusive Scope : all initiatives and existing operations Fairness : clear criteria for assessing viability and strategic importance of operations Transparency : manage concerns and establish credibility Phased approach : initial savings found while long term sustainable solutions identified

14 FUNDING FOR BUDGET REDUCTIONS IN FY07-08 Strategy: First absorb cuts from the overall university budget prior to impacting the operating units 1. Vice President’s must tier their budget reductions by unit based on strategic importance, criticality to operations and funding level/alternative funding sources ($2.2M) Academic Affairs ($0.6M) Non-Academic Affairs

15 IDENTIFYING LONGER TERM SUSTAINABLE OPTIONS Identify mid and long term savings by evaluating existing academic, student and administrative operations Identify transferable expenses that can be absorbed by other funding sources Explore revenue generating opportunities Seven representatives from Senior Administration, Deans, Faculty, Students and Staff MANDATE MEMBERS Long term assignment to find sustainable savings for FY07-08 bridge savings and potential additional State cuts DURATION President’s Budget Stabilization Task Force

16 NEXT STEPS BOARD OF GOVERNORS MEETING – September LEGISLATIVE SPECIAL SESSION – October 3 – 12 TASK FORCES SESSION – Subsequent to Legislative Decision

17 ACADEMIC AND STUDENT AFFAIRS BUDGET REDUCTION STRATEGY PriorityBudget ReductionDefinition 11.3%Core service to students or strategic to FIU with high enrollment opportunities 22.3%Strategic to FIU with mid/low enrollment opportunities 33.2%Not strategic to FIU, but may be strategic to BOG 47.5%Centers & Institutes Admin2.6%Administrative unit

18 AGENDA The Florida International University FACULTY SENATE MEETING  University-wide Budget Summary by fund  Highlights & Strategic Issues  Shortfall in State Funding  Tuition Veto  Academic Investments  Budget Reduction Plan  Decide FIU’s targeted level of cuts  Establish Guiding Principles for Budget Reduction Plan  Create a parallel process that identifies immediate and long term savings  Academic Affairs Allocation Methodology