1. Spring 2012 Budget Update March/April 2012 Robert Cramer -Assistant Chancellor Cathy Riedl-Farrey - Director, Financial Services

2. Tuition Target=$31,789,596Variance Original Estimate 5.6.11$32,507,000$717,000 Fall 2011 11.28.11$33,396,000$1,606,000 Spring 2012 03.03.12$33,990,000$2,200,000 Tuition Pooled Revenue Original Fall FTE Fall 2011 FTEOriginal Spring FTE Spring 2012 FTE Undergrad Resident5,3285,3754,7954,933 Undergrad NonRes8513277120 Graduate Resident126117114107 Graduate NonRes16231418 TOTAL5,5555,6475,0005,178 +92+178 2

3. TSI Revenue Original EstimateFall 2011Spring 2012 Revenue$12,512,350$12,970,970$12,312,950 +$458,620-$658,020 from Fall -$199,400 from Original Enrollment FTE1,2551,3011,169 +46-132 3

4. Summary of Items Funded DivisionFTEFY2012FY2013FY2014FY2015FY2016 AAC 29.50 3,202,455 3,048,466 2,947,428 2,851,847 2,863,625 ADMIN 18.00 1,151,235 1,120,170 1,004,955 1,033,292 1,035,182 CHANC 1.00 297,320 213,944 218,473 223,207 228,145 SA 6.35 535,400 545,900 564,800 584,600 587,700 UNIV WIDE - 2,542,125 773,700 774,700 775,700 776,700 UR 10.00 1,391,740 733,450 748,390 552,390 553,490 TOTAL 64.85 9,120,275 6,285,810 6,108,926 5,871,216 5,895,022 4

5. Budget Forecast Model Projected Closing Balances FY2012FY2013FY2014FY2015FY2016 With $300M Lapse but no plan 6,464,686 3,403,463 (600,465) (3,310,501) (5,032,630) With $174.3M Lapse and $1.6M plan 8,881,723 7,948,049 6,361,158 5,778,671 4,056,542 With $300M Lapse and $1.6M plan 8,064,686 6,603,463 4,199,535 3,089,499 1,367,370 Additional Requests 12,903,307 14,164,153 15,803,106 15,671,019 15,788,422 5

6. Budget Management Proposed Principles – Decision making is made by division leaders (1&2) – Ability to use monies from different sources to meet needs (3&4); – Communications with budget office on decisions that change allocations of funds (5); – Plans for lapse obligations (6); – Prohibition on creating new positions without confirmation of ability to fund them (7); – Ability or inability to ask for additional funds during the year versus reallocating funds (8); – Ability to carry over funds from one year to the next (9). 6

7. Auxiliary Rates – Segregated Fees 2010-112011-122012-132013-142014-15 Athl/Rec Fac Bond 1 632205 FY25 30 MPSC Bond 632810 FY21 130 120 WFH Bond1 632605 FY12 18 000 WFH Bond2 632615 FY31 61 50 Athl/Rec Fac Oper 632200 25 Child Care 632700 10 ID Systems 612225 88888 Intercoll. Athletics 632400 83 Muni. Svc. 632800 18 PAC/Intramural Oper 632600 50 54 Parking 642001 1520 Transportation 0030 MPSC Operations 632000 220147152154156 Student Affairs Programming 632006 -81919395 Student Health 632100 98106 SUFAC Activity 622001 98100 Textbook 632900 142 Total Seg. Fees 1,006 1,029 1,039 1,0431,047 7

8. Auxiliary Rates – Housing & Meal Plans 2008-092009-102010-112011-122012-13** Residence Halls Double 2,900 3,016 3,106 3,260 3,520 Single 3,524 3,660 3,876 4,1004,428 Suite 4,047 4,168 4,293 4,636 5,006 Avg % inc 3.88%3.56%3.00%6.13%8.00% Meal Plans Average Rate1,9092,0622,1022,1652,273 % Inc5.52%8.01%1.91%3.00%5.00% **Rates are as submitted. Needs final Board of Regent Approval 8

9. Final 2011-12 Budget (all funds) $157 M 9

10. Final 2011-12 Budget (less aid) $110 M 10

11. Summary of 2011-2013 Fund 102 Reductions 2011-122012-13 Base Budget Items Expected 2011-2012 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 Fringe benefit reduction($1,174,417)- Total Base Budget Change for Fund 102($1,097,893)TBD Additional Budget Lapses (one-time dollars; $174. 3 M in 2013-15 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)

12. Lapse Planning Options 3/19/12 handout 12

13. Questions and Next Steps Proceed with Strategic Planning Implementation of budget lapses 13