1. 1 FACULTY SENATE BUSINESS AND FINANCE UPDATE Lowell Rinker Vice President for Business & Finance and CFO December 6, 2007

2. 2 Financial Information

3. 3 OPERATING FUNDS THAT ARE SPENT WITHIN A GIVEN YEAR IN SUPPORT OF ON-GOING OPERATIONS OF THE UNIVERSITY  GENERAL FUND2006/07 REVENUE $261,678,108 Represents the University’s operation fund and corresponds to the actual operating budget of the University.  AUXILIARY FUND2006/07 REVENUE $86,199,138 Auxiliary funds contain residence halls, cafeterias, Miller Auditorium, and other units such as parking systems, health center, Fetzer Center and telecommunications. These funds are essentially self-supporting.  DESIGNATED FUND2006/07 REVENUE $41,340,179 Funds containing program accounts that are self-supporting and designated for specific purposes in support of the main University.  EXPENDABLE RESTRICTED FUND2006/07 REVENUE $43,028,226 Includes scholarships and grants/contracts activities.  INSURANCE AND FRINGE BENEFITS FUND2006/07 REVENUE $1,176,798 Funds containing holdings for fringe benefits and self-insurance coverage.

4. 4 2006/07 OPERATING FUND REVENUES

5. 5 2007/08 GENERAL FUND REVENUE BUDGET

6. 6 2007/08 GENERAL FUND EXPENSE BUDGET

7. 7 2007/08 GENERAL FUND COMPENSATION BUDGET

8. 8 2007/08 General Fund Budget Model 2006/07 Board Approved Expenditures over Income -8,268,294 Estimated Resource Changes Appropriation Change (Estimated -1.68%) -1,900,000 Tuition (On Campus) – Rate Change (Resident Only at 6.4%) 7,816,609 Less Student Financial Aid-1,838,067 5,978,542 Enrollment Change (-1.87%)-3,167,591 Target Budget Reduction10,651,000 Subtotal – Estimated Resource Changes11,561,951

9. 9 2007/08 General Fund Budget Model Estimated Expenditure Changes Compensation Increase 4,794,440 Other 2,465,438 Summer I & II Program Support 2,000,000 Subtotal – Estimated Expenditure Changes 9,259,878 Board Approved Projected Budget Balance-5,966,221 State Appropriation 1% increase 1,145,639 Adjusted Final Projected Budget Balance-4,820,582

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11. 11 GENERAL FUND FTE BUDGET REDUCTIONS

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14. 14 State of Michigan Budget Update

15. 15 WMU Appropriations FY 2007 Enacted Appropriation (October 2006)$112,876,400 Less: FY ’07 Base Reduction$1,903,200 FY 2007 Year-to-Date Appropriation$110,973,200 FY 2007 One-Time Reductions August payment Delay$10,001,500 Retirement Rate Change - MPSERS$888,100 FY 2008 Governor’s Recommendation$115,698,300 FY 2008 House Passed$118,164,700 FY 2008 Senate Passed$100 FY 2008 Enacted - with a 1% Increase over Year-to-Date$112,122,000 FY 2008 Mid-Year State Budget Cut??????

16. 16 Factors Affecting Costs

17. 17 10 Year Medical Expense Trend NEW PPO

18. 18 Business Services MUSIC  Western participates in the Michigan University Self-Insurance Corporation or (MUSIC) which has enabled WMU to realize significant savings in premiums in all major lines of Property and Casualty insurance.  As a charter member of MUSIC WMU has received back over $3,000,000 dollars in dividends as well as enjoys broad coverage and premium payments well below what would be available in the traditional markets

19. 19 Physical Plant Long-term Cost Avoidance Initiatives  Since 1996, Maintenance Services has initiated 55 different energy conservation projects.  These projects have resulted in a reduction of 78,147,145 Kwh, 617,177,519 lbs. of steam, and 540,040 cubic feet of water.  This reduction has provided WMU the equivalent of avoiding $16,498,275 of utility expenditures.

20. 20 Physical Plant Long-term Cost Avoidance Initiatives  Since 1988, Maintenance Services has expanded the Computerized Energy Management System, and, since 1995, expanded the Central Elevator Computer Monitoring System.  This also has resulted in the need to hire fewer maintenance staff, even as the campus has added a significant amount of square footage.

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23. 23 8Power Plant Emission Reduction

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25. 25 8Avoiding Power Plant Expansion yThrough energy management the power plant has avoided an estimated 30 million dollars

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27. 27 Capital Outlay Update

28. 28 Current Projects 8South Kohrman yInstruction space for the School of Art yComplete December 07

29. 29 Current Projects 8Brown Hall ya renovation of the existing 55,457 square foot building and additions of 13,174 square feet, will provide classroom and laboratory spaces to serve the following departments: yEnglish yForeign Languages ySpanish yCommunications yComplete December 07

30. 30 State Capital Outlay Priorities Priority Project Estimated CostFundingCapital Outlay Request #1Sangren Hall Building Renovation$56 MState / WMUYes #2Campus Housing Master Plan and Phase One ImplementationPlanningWMUNo #3New Student UnionPlanningState / WMUProposed #4Facility for College of Engineering wind tunnel and MDOT LabPlanningGrant / WMUNo #5University Libraries: archives and storage additionTBDState / WMUProposed #6Renovation of 1967 Addition to McCracken Hall (Classrooms)$7.7 MState / WMUProposed #7Renovation of North and Central Kohrman Hall (Classroom Building)$22 MState / WMUProposed #8New Auditorium Hall$10 MState / WMUProposed #9East Campus Buildings RenovationsTBDPrivateNo #10Renovation of Dunbar and Knauss Halls (Classroom Buildings)$77 MState / WMUProposed #11Addition to Haenicke Hall for Science Research and Math$27 MState / WMUProposed #12Addition to College of Engineering for Civil Engineering$19.8 MState / WMUProposed #13Addition to Chemistry Instruction Building for Science Research:TBDState / WMUProposed #14Physical Plant RelocationTBDWMUNo #15Upgrades and improvements to athletics facilitiesTBDWMUNo #16Campus Parking RampsTBDWMUNo

31. 31 Future Projects 8Major Projects seeking state funds ySangren Hall xTo upgrade teaching and research facilities for the predominate use of the College of Education; xTo improve the quality and upgrade the instructional technology of university classrooms and lecture halls.

32. 32 Future Projects 8Other Projects yHonors College Expansion xAdd four classrooms to existing building. yPlaza Café xRelocate café from Sprau Tower. yRoad Improvements xConnect Oliver Street to Ottawa Street. yMedical School xDetermine facility needs and assess existing.

33. 33 Future Projects 8Other Projects yEllsworth Hall xRelocate depts. & improve space to support the Western Edge. yResidence Halls xRenovate existing and/or build new to today’s standards. yWind Tunnel xRelocate wind tunnel to the Parkview Campus. yMcCracken Wing Alteration xConvert out-of-date labs to classrooms.

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