UW-Platteville Financial Overview October 2011 Robert Cramer -Assistant Chancellor Cathy Riedl-Farrey - Director, Financial Services

Summary of Funding Sources State Budget Update UW-Platteville Financial Update – Closing Balances (June 30, 2011) – Summary of Budget Reductions – All Funds Budget – Financial Forecast Scenarios – TSI Detail – Debt Service Detail

General Purpose Revenue (GPR) – includes general funding, specific purpose funding, and earmarked funding from the state, primarily from state sales and income taxes Program Revenue (PR) – includes tuition, auxiliaries, and segregated fees, as revenues received for services or from users Federal Revenue (PR-F) – includes federal grants, financial aid, direct loans, as revenues from a federal agency Segregated Funds (SEG) – includes transportation fund and other separate state accounts, credited by law to a specific state fund Gifts and Grants – includes revenues from the Foundation, non federal grants

State Budget All Revenue Sources - $66.1 B

Ten Largest General Fund Programs in Program %Cumulative % Elementary and Secondary School Aids$9,759,069, % Medical Assistance$3,946,921, UW System$2,095,251, Correctional Operations$1,994,614, Shared Revenues$1,877,394, School Levy/First Dollar Tax Credits$1,762,732, Appropriation Obligation Bonds$994,390, Community & Juvenile Correctional Services$541,787, Judicial and Legal Services$518,568, Choice and Charter School Programs$419,205, Subtotal$23,909,934, % All Other Programs$5,117,995, %100% Total$29,027,930, %

Structural Deficit Estimates by LFB $ Millions

Structural deficit is eliminated Biennial Budget included lapse of $174.3 million in and $65.8 million of the lapse is assigned to UWS Estimated closing balance of budget was $9 million at end of (on revenue of $14.8 billion) when budget was signed UWS receives 7% of the GPR budget and is assigned 38% of the GPR lapse Key Points on Budget

UW-Platteville Financial Update

FY Closing Balances All Funds Summary (Cash Basis) Beginning Cash$ 25,137,116 ( 7/01/2010 rev ) Total Revenue$123,435,463 Total Expenses$124,736,260 Net Income$ 1,300,798 – Excluding direct student loan amounts Closing Balance$ 23,836,319 ( 6/30/2011 )

Select Fund Balances Fund 102$4,245,502 (General operations, tuition revenue, base of $48 million) Fund 123$3,976,226 ( Debt service, $4 M base) Fund 128$2,384,352 (Dining, housing, parking, base of $25 million) Fund 131 $10,280,339 (DLC, School of Ed Cost Recovery, TSI, base of $15 million) Fund 136$2,337,985 (Similar to 128, HTCP, camps & conferences, base of $3.7 million)

Budget of $148.9 Million

Budget of $160.4 million

Summary of Fund 102 Reductions Base Budget Items Expected Budget Reduction (7.5.11) ($3,543,000) Tuition Offset & system redistribution of cut2,596,5003,680,300 Subtotal Reductions($946,500)$137,300 Cost to continue items$1,023,024TBD Total Base Budget Change for Fund 102$76,524TBD Additional Budget Lapses (one-time dollars; $ M in also) $174.3 M ($65.8M for UWS)($1,305,136)($555,713) Potential $157.7 M More ($47.5M for UWS)($817,037)($527,549) Total Budget Lapses - $300 M ($113.3M)($2,122,173)($1,083,262)

Financial Forecast Scenarios Revenue modeling to project available funds from the state, TSI, and tuition (traditional undergrads and grads) Key variables are tuition, enrollment and state support Assumes 5.5% increases in tuition annually in Assumes flat enrollment at levels Assumes flat general purpose revenue excluding lapse Assumes lapses of $300 million in and statewide with allocation as proposed in

Scenarios Examined Original Projections (Fall 2010 with non res decline) Fall 2011 Baseline – updated for sixth week Fall 2011 Baseline – updated for sixth week & recent allocation of budget lapses

Enrollment Summary (FTE) Original ProjectionsFall 2011 Baseline TSI Enrollment1,2551,301 Undergraduate In State5,3285,273 Undergraduate Non Res Graduate Students Totals6,8106,845 Note – these figures exclude distance learning, study abroad, and school of education cost recovery students

Original Projections

Fall 2011 Baseline – prior to lapse

Fall 2011 Baseline – after lapse

Summary of Projected Closing Balances

TSI Budget Detail Count ProjectedCount ProjectedCount Projected Revenue 1,25512,512,3501,29013,287,0001,26513,427,975 Expenses: Salary & Fringe 1569,846, ,178, ,522,000 Supplies 772, ,000800,000 Debt 2,070,000 Incentive Grants 837, ,500835,000 Contingencies Total Expenses: 13,525,500 13,799,50014,227,000 Note: 34 positions were formerly GPR funded

Unclassified FTE by division (all funds) DivisionAllocatedFilled as of Chancellor Provost Assoc Vice Chancellor17.83 Administrative Services Admissions20.00 Student Affairs University Advancement BILSA LAE EMS Total

Debt Service UW-Platteville has two types of debt service on facilities – General Fund Borrowing is funded through state appropriations of general purpose revenue – Program Revenue Borrowing is funded through University revenues including TSI Debt is issued centrally by the State 20 year bonds are typical

Debt Service Detail DescriptionFund FY2010 Budgeted FY2011 Budgeted FY2012 Budgeted Bond End Date General Fund110 5,392,182 5,462,888 Parking ,400227, ,400FY2030 PAC123 88,16112,726 12,716FY2012 Fieldhouse Addition ,000319, ,704FY2031 Children's Center123 35,83235,842 36,092FY2020 Pioneer Student Center ,566919, ,966FY2021 Residence Halls123 1,913,3401,913,710 1,919,439FY2030 Stadium ,736154, ,808FY2025 Food Service/Union ,973428, ,453FY2031 Chancellor's Residence123 15,23615,241 15,360FY2019 Subtotal123 4,218,244 4,026,374 4,142,938 TSI194 2,070,000 FY2031 Grand Total Debt Service 11,680,426 11,559,262 11,675,826

Proceed with Strategic Planning Evaluate options to address lapses – Consult with UWS and others on options to mitigate – Consult with senates, deans, department chairs, and other on impacts and options Questions and Next Steps