FY2015 Supplemental Operating Budget FY2015 Operating Budget Board of Trustees Meeting – June 27,

Supplemental Budget Impacts State 2014 supplemental legislative session EWU supplemental budget changes for FY2015 –Resident Undergraduate Tuition –Changes from original budget 2

Supplemental Legislative Session State Funding Support for STEM programs $1,000,000 The legislature did not pass a supplemental capital budget. The original capital budget remains unchanged for FY2015 3

GF-State Funding per FTE Student 4 Source: Data based on GFS allocations and OFM budgeted state enrollments projections based on original budget. Actual FTE funding based on GFS allocations and Annual Average state enrollments projections based on original budget FTE at 10,250.

5 Key Funding Sources State Funds and Student Tuition Over last 5 years, the state funding/student tuition balance in operating budget funding sources has shifted completely. 62%

FY2015 Supplemental Operating Budget 6

Operating (Tuition) Fee Assumptions FY2015 Original FY2015 Revised Budgeted FTES – state supported10,42710,250 Enrollment Growth from prior year1.5%0% Tuition-Resident Undergraduate6%0% Tuition Increase-Nonresident Undergraduate 6% Tuition Increase-Graduate6% 7 10,272 FY2014 budgeted Annualized Average Full Time Equivalent Students 10,246 FY2014 actual Annualized Average Full Time Equivalent Students

FY2015 (Approved) Change FY2015 (Revised) Education and General General Fund State Funds 001 & 08A$39,299,000 38,959,000 Net change from Central Services Adjustments(1,340,000) Additional State Funding for STEM programs1,000,000 Tuition Operating Fees 14969,648,000(3,201,000)66,447,000 Recharges3,658,496(14,723)3,643,773 Dedicated local Funds 14844,345,8210 Service Funds3,637,960(480,709)3,157,251 Total Education and General$160,589,277($4,036,432)$156,552,845 Auxiliary Enterprises42,115,63549,95242,165,587 Scholarships & Fellowships41,350,0001,500,00042,850,000 Sponsored programs11,135,0001,425,00012,560, Operating Revenues$255,189,912($1,061,480)$254,128,432 FY2015 University Operating Budget Revenues- All Funds 8 Service Funds variance due to closure of the Print Shop in FY 2014

FY2015 University Operating Budget Expenditures – All Funds 9 FY2015 (Approved) Change FY2015 (Revised) Education and General General Fund State Funds 001 & 08A$39,299,000 38,959,000 Net change from Central Services Adjustments(1,340,000) Additional State Funding for STEM programs1,000,000 Tuition Operating Fees 14969,648,000(3,201,000)66,447,000 Recharges3,658,496(14,723)3,643,773 Dedicated local Funds 14843,440,484(65,739)43,374,745 Service Funds3,668,534(450,452)3,218,082 Total Education and General$159,714,514($4,071,914)$155,642,600 Auxiliary Enterprises (including deductions) 40,166,588136,03840,302,626 Scholarships & Fellowships41,350,0001,500,00042,850,000 Sponsored Programs11,135,0001,425,00012,560,000 FY 2015 Operating Budget$252,366,102($1,010,876)$251,355,226 Service Funds variance due to closure of the Print Shop in FY 2014

Student Technology Fee Student Technology Fee- subfund within Fund 148 FY2015 Budget Revenues$1,145,000 Expenses$1,300,000 Student Technology Fee is $35 per quarter All students taking 6 or more credits are assessed the full student technology fee Allocation of resources is recommended by the Student Technology Fee Committee Fee funds general and open access student computing labs replacement and renewal of equipment and operations, key technology services such as student and other web services. Annual replacement of computers along with software, printers, storage, servers Software renewal Investment in the storage area network New investments in library technology, digital signage, universal access software, and recording studio 10 Expenses exceed revenues due to use of cash from prior year revenue

FY Service Funds Budgets Original FY2015Revised FY2015 Revenue/ Recharges Expenditures/ Deductions Change in Fund Balance Revenue/ Recharges Expenditures/ Deductions Change in Fund Balance Printing$480,710$515,846($35,136)$0 Workforce Construction 1,575,0001,697,490(122,490)1,575,0001,751,572(176,572) Telecommunications1,127,2511,000,198127,0531,127,2511,011,510115,741 Motor Pool455, Service Funds Total$3,637,961$3,668,534($30,573)$3,157,251$3,218,082($60,831) Service funds provide goods and services to other university units. The funds finance their own asset renewal and replacement Funds may have planned use of cash reserves due to cyclical nature of the work Printing operations end in FY

FY Auxiliary Funds Budgets Original FY2015Revised FY2015 Revenue/ Additions Expenditures/ Deductions Change in Fund Balance Revenue/ Additions Expenditures /Deductions Change in Fund Balance Housing & Dining$21,076,595$18,879,426$2,197,169$21,076,595$18,856,465$2,220,130 S&A Fee Fund (net of Housing debt and financial aid) (detail slides 14 & 15) 8,883,1269,216,501(333,375)8,771,1789,225,728(454,550) Recreation Center Fees213,000218,800(5,800)213,000181,16931,831 Intercollegiate Athletics4,685,3004,649,57535,7254,685,3004,648,84236,458 Bookstore5,446,8505,327,591119,2595,608,7505,528,01880,732 Pence Union Building967,7641,041,474(73,710)967,7641,046,946(79,182) Parking843,000833,2219,779843,000815,45827,542 Auxiliary Funds Total$42,115,635$40,166,588$1,949,047$42,165,587$40,302,626$1,862,961 These funds finance their own asset renewal and replacement 12

Student Service and Activity Fee Fund Sources FY2015 Original Change FY2015 Revised S&A Fees (part of tuition rate)$6,738,867($114,830)$6,624,037 Recreation Center Fee2,200,0000 Transportation Fee609,0000 Clubs (use of activity generated revenue) 205,9000 Total Revenues$9,753,767($114,830)$9,638, No increase in general SA Fee Revenue decrease due to change from 2015 original budget enrollment estimate

Student Service and Activity Fee Uses: As Recommended by Student Service and Activity Fee Committee FY2015 Original Change FY2015 Revised Debt Payments$2,930,218($4,950)$2,925,268 S&A Fee Allocation2,795,9723,9502,799,922 PUB renewal and replacement150,0000 Transportation Contract609,0000 Transfer to Athletics2,256,0000 Financial Aid, Admin Cost486,552(5,407)481,145 Clubs (use of activity generated revenue and reserve) 205,9000 URC equipment replacement and facility improvements 653,5000 Total Uses$10,087,142($6,407)$10,080,735 14

Scholarships and Fellowships FY2015 Original Changed FY2015 Revised Federal Financial Aid Grants (includes Pell grant and the Supplemental Educational Opportunity Grant – SEOG) $20,000,000$1,000,000$21,000,000 State Financial Aid Grants (includes State Need Grant) 17,000,000500,00017,500,000 EWU Financial Aid Grants (includes EWU grant, endowed scholarships and license plate) 3,500,0000 Private Financial Aid Grants (foundation endowed scholarships) 850,0000 Total$41,350,000$1,500,000$42,850,000 Scholarships and Fellowships include funds for student aid programs, some federal and state aid programs and privately endowed scholarships. Funding levels assumed to remain relatively flat year-to-year. Total increases driven by assumed enrollment growth rates. 15

Sponsored Programs (Grants & Contracts) FY2015 Original Changed FY2015 Revised Federal Research$3,980,000$440,000$4,420,000 State Research3,010,000(575,000)2,435,000 Local Research2,015,000(30,000)1,985,000 Private Research2,130,0001,590,0003,720,000 Total$11,135,000$1,425,000$12,560,000 Funding and contracts are dependent on state and federal agency funding levels as well as the ability of local governmental and private agencies need for contracted services.. 16

Board Action for FY2015 Supplemental Operating Budget 17

Action Items 18 6% Reduction of Resident Undergraduate Tuition Revised expenditure level for FY2015

FY2015 University Operating Budget Expenditures – All Funds 19 FY2015 (Approved) Change FY2015 (Revised) Education and General General Fund State Funds 001 & 08A$39,299,000 38,959,000 Net change from Central Services Adjustments(1,340,000) Additional State Funding for STEM programs1,000,000 Tuition Operating Fees 14969,648,000(3,201,000)66,447,000 Recharges3,658,496(14,723)3,643,773 Dedicated local Funds 14843,440,484(65,739)43,374,745 Service Funds3,668,534(450,452)3,218,082 Total Education and General$159,714,514($4,071,914)$155,642,600 Auxiliary Enterprises (including deductions) 40,166,588136,03840,302,626 Scholarships & Fellowships41,350,0001,500,00042,850,000 Sponsored Programs11,135,0001,425,00012,560,000 FY 2015 Operating Budget$252,366,102($1,010,876)$251,355,226 Service Funds variance due to closure of the Print Shop in FY 2014

Looking Forward to the biennium Constrained Financial Environment –$2B gap in projected state of Washington budget –Future of tuition authority –Legislative focus on fund balances (Fund 149- operating fees and Fund 148- special revenue fund) –Impact of flattening enrollments –Inflationary costs –Continued investment in Strategic Plan 20

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