1. 2012/13 Educational and General Budget Board of Governors Finance, Administration, and Facilities Committee June 27, 2012

2. Agenda  Current Budget Proposal $27.66 billon General Fund budget Level funding of higher education  Budget Bill pending Proposed Commonwealth Budget

3. $ in Millions 18% Reduction PASSHE Appropriations *E&G appropriation of $412.8 million. **Based upon Current Budget Proposal of level funding.

4. Undergraduate Enrollment Trends

5. Agenda  New student acceptances through mid- June predict smaller entering class. Fiscal Year Annualized FTE Enrollment Annual Change 2010/11112,030 2011/12 110,210*(1,820) 2012/13 110,584*374 2012/13, Revised 109,569**(641) Admissions Data *Revised in April based upon University interim budget reports. **Revised in June based upon University admissions data.

6. Agenda Pell Grants 2012/13  Awards continue at maximum of $5,550  Eligibility requirements are more limited PHEAA Grants Student Loans  Increases the interest rate from 3.4% to 6.8% effective July 2012 unless Congress intervenes  Limits subsidized loans Federal and State Aid Availability 2011/122012/13Change Students Served 35,635 30,649 (4,986) Total Awards$97,706,214$83,795,236($13,910,978) Average Awards$3,007$2,785($222)

7. Agenda  PASSHE’s financial health is more dependent upon enrollment as more of the cost of education is provided by the student  2012/13 budget projections, as shared at April 2012 Board Meeting, need to be revised Current enrollment projections Current anticipated state appropriations Review of Budget

8. PASSHE Funding and Enrollment History

9. Dollars in Millions Note: Numbers may not add due to rounding. 2012/13 Budget Revised Budget Projections Revenue/Sources 2012/13 April 2012 Tuition$835.5 Fees174.0 State Appropriation330.2 All Other Revenue70.2 Use of Carryforward Funds12.0 Total Revenue/Sources$1,421.9 Expenditures & Transfers Salaries & Wages$786.9 Benefits337.3 Subtotal, Compensation$1,124.2 All Other Expenditures/Transfers423.0 Total Expenditures & Transfers$1,547.2 Revenue/Sources Less Expenditures/Transfers ($125.3) 2012/13 June 2012 $829.3 172.0 412.8 70.2 12.0 $1,496.2 $786.9 337.3 $1,124.2 416.2 $1,540.4 ($44.2)

10. Agenda 2012/13 Tuition Rates (page 67)  Tuition  Technology Tuition Fee 2012/13 E&G Appropriation (page 70)  Allocation of funds for System-wide purposes  Remainder is distributed to universities through the allocation formula and performance funding BOG Budget-Related Actions