1. Faculty Senate Meeting
UWM
Budget Update
Faculty Senate Meeting
November 17, 2011

2. Original UWM 2011-13 Biennial Base Budget Cut
$250 million for UW System
$33.7 million total cut to UWM Base GPR Support
Represents a 12.5% reduction to GPR base budget each year of the biennium
GPR budget = 134,758,600
All Funds Budget = 680,041,800
Base budget cut = 2.48% of All Funds Budget

3. Budget Reductions Cuts in State GPR Support $16,881,400 UW – MILWAUKEE
Budget Cut and How it was Funded
Here is how the budget is funded with UW Madison remaining in the system. This amount remained the same as projected, thinking that Madison would split off.
Tuition – 31%
Employees fringe benefit savings – 20% - this savings goes to the State, none to UWS
Campus -27%
UWS contribution – 22% Hold campuses harmless for Madison not splitting
FY estimate on target
FY went from slightly positive to an additional decrease of $700,000 approximately.
Budget cut % based on all funds basis increases from 1.67% to 1.93%

4. 2011-13 Budget Lapse – DOA Directive
Allocation of $174.3million lapse required under Biennial Budget
(2011 Wisconsin Act 32) s.9255(1)(b)
Allocations shown for $174.3 million and
$300 million
UW System required to take lapse from GPR appropriations with cash balances
Minimize layoffs and take advantage of vacancies.

5. Biennial Budget 2011-13 Lapse
Lapse Amounts
DOA min of range $174.3M
FY 2012
FY 2013
Total
Total UWS lapse
Total $
46,135,077
19,634,769
65,769,846
UW - Milwaukee share
6,207,319
2,643,012
8,850,330
% of UWS Total
13.5%
DOA max of range $300M
FY 2012
FY 2013
Total
Total UWS lapse
Total $
75,016,386
38,274,404
113,290,790
UW - Milwaukee's share
10,093,200
5,152,072
15,245,271
% of UWS Total
13.5%
GPR carryover balances:
FY million
FY million
FY million
FY million
UWM Lapse* Amount is 6.6% of GPR budget
*Based on $174.3 million State lapse

6. 2011-13 Budget Lapse – UWS Response
Request that the lapse be more equitable and fair
Remove high priority, mission-critical activities
Remove utilities
Remove Police/Security and Power Plant Staff
Remove financial aid
UW System’s share would still be more than 11% of $174M

7. 2011-13 Budget Lapse – UWM Response
“Even with our best efforts to improve campus efficiencies through the development of a strategic plan, creation of a new budgeting model, and restructuring of campus units, the proposed budget lapse will go beyond our abilities and take even a further toll on our faculty, staff and campus.”
Chancellor Lovell’s Testimony – November 16, 2011

8. Continuing Trend of Declining State Support
This view of our budget includes the funds that support our primary mission; excludes student aid and auxiliaries.
In 1980, state support accounted for about two-thirds of our funding.
State support dropped to about 35% in 2010.
Meanwhile tuition doubled: from about 20% of revenue in 1980 to over 40% in 2010.

9. Developing a New
Budget Model

10. Chancellor Lovell’s Charge
“…I charged leadership from all governance groups to begin working on a budgeting model that would support our current needs and as well as where we aspire to be in the next decade.”
Plenary Excerpt Fall 2011

11. Status Update Committee formation Drafting Guiding Principles
Engaging a consultant
Timeline

12. Questions