1. Spring 2014 Budget Update
March 2014

2. Agenda
Current Budget Status
Discussion Items
Proposed Auxiliary Rates

3. Total Price of Attendance

4. 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.

5. FY 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

6. 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

7. 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 , 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

8. Tuition Revenue Tuition Target for Pooled Revenue=$34,264,494 Variance
Original Estimate
$36,179,000
$1,914,000
Fall 2013
$35,470,000
$1,200,000
Spring 2014
$35,835,000
$1,571,000
TSI Estimate
$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

9. 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

10. Enrollment Projections

11. 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 FY is the final year of those grants.

12. 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.

13. Current Budget Reductions

14. Projected Additional Budget Reductions
Saved in Budget folder as “FY15 Getting to Stable ”
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.

15. Plan for TSI $1M Reduction
The budget model currently includes an ongoing reduction of just over $1 Million from the TSI budget for
Options A-C: Reduce the base budgets going into FY
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 FY and take cash from available TSI savings as a one-time reduction.

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

17. 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 Budget Presentations folder as “Summary of FY13 Lump Sums”

18. 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?

19. 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.

20. Proposed Room & Board Rates

21. Proposed Room Rates

22. Proposed Board Rates

23. Proposed Segregated Fees

24. Proposed Segregated Fees