OPEN CAMPUS FORUM
WISCONSIN’S 2013-2015 BIENNIAL STATE BUDGET
WEDNESDAY, MAY 1, 2013
11:45 A.M. TO 1:00 P.M. - SAGE HALL ROOM 1210
Where excellence and opportunity meet.™
CAMPUS FORUM
MAY 1, 2013
A. Review – The Campus and System
Diamond Charts & the Governor’s $181
million in additional investments
B. Legislative Review – Joint Finance
Committee
C. Fund Balance Reserves
D. Anticipated Decisions
UW System Diamond Chart
UNIVERSITY OF WISCONSIN SYSTEM
2012-2013 OPERATING BUDGET
$5,901,419,864—TOTAL
$1,397,599
$5,089,267,864—Total Without Direct Lending
Fe de ral
$1,843,593,652
31.24%
Auxiliarie s &
O the r
Re ce ipts
$847,135,479
14.35%
Gifts Grants &
Contracts
$638,743,383
10.82%
O the r
O pe rational
Re ce ipts
$217,735,685
3.69%
TUITIO N
$1,277,395,072
21.65%
STATE
$1,076,816,593
18.25%
Research & Public Service
$673,878,146
36.55%
Research & Public Service
$363,957,490
56.98%
Research & Public Service
$11,338,292
1.34%
Research & Public Service
$121,967,986
56.02%
Research & Public Service
$524,581
0.04%
Research & Public Service
$173,838,090
16.14%
% Aid
Financial
Direct Lending
$812,152,000
44.05%
Financial Aid
$56,423,458
8.83%
Financial Aid
$13,283,080
1.57%
Financial Aid
$5,998,234
2.75%
.30%
Financial Aid
$4,469,827
0.35%
Financial Aid
$42,286,158
3.93%
%%
Other Student Related
$59,193,162
9.27%
%%
Other Student Related
$315,183,639
37.21%
Other Student Related
$30,855,007
14.17%
Other Student Related
$341,366,599
26.72%
Other Student Related
$99,798,300
9.27%
Instruction
$129,270,642
20.24%
Instruction
$32,937,612
3.89%
Instruction
$44,493,463
20.43%
Instruction
$865,470,667
67.75%
Instruction
$172,354,246
16.01%
Instruction
$36,555,655
1.98%
%%
Infrastructure
$29,404,631
4.60%
Infrastructure
$36,307,353
4.29%
Infrastructure
$6,534,596
3.00%
Infrastructure
$65,563,398
5.13%
Infrastructure
$581,745,203
54.02%
Infrastructure
$42,598,735
2.31%
Other
$494,000
0.08%
Other
$438,085,503
51.71%
Other
$7,886,399
3.62%
Other
$0
0.00%
Other
$6,794,596
0.63%
Financial Aid Other
$238,136,554
12.92%
Other Student Related
$38,747,059
2.10%
%%%
%
Other
$1,525,503
0.08%
(1) Other Student Related = Student Services and Academic Support
(2) Infrastructure = Physical Plant, Institutional Support
(3) Other = Farm Operations, Hospital, and Auxiliaries
UW Oshkosh Diamond Chart
UNIVERSITY OF WISCONSIN OSHKOSH
2012-2013 COMPREHENSIVE OPERATING BUDGET
$241,716,500 – TOTAL
$185,716,500 – Total Without Direct Lending
B
Federal
$84,926,478
35.13%
Auxiliaries &
Other
Receipts
$42,770,450
17.69%
Gifts Grants &
Contracts
$4,058,502
1.68%
Other
Operational
Receipts
$2,655,438
1.10%
Instructional
Operating
Budget
TUITION
$66,315,782
27.44%
STATE
$40,989,850
16.96%
Research & Public Service
$4,361,186
5.14%
Research & Public Service
$1,471,445
36.26%
Research & Public Service
$880,249
2.06%
Research & Public Service
$632,667
23.83%
Research & Public Service
$0.00
0.00%
0.00%
$424,444
1.04%
0.71%
%
Financial Aid
Direct Lending
$56,000,000
Financial Aid
$1,100,643
27.12%
Financial Aid
$7,000
0.02%
Other Student Related
$124,550
4.69%
.30%
Financial Aid
$0.00
0.00%
Financial Aid
$667,083
1.64%
65.94%
Financial Aid Other
$16,271,223
19.16%
%%%
Other Student Related
$988,239
1.16%
%%%
Instruction
$7,147,039
8.42%
Infrastructure
$96,171
0.11%
Research & Public Service
%%
Other Student Related
$449,689
11.08%
%%
Instruction
$913,197
2.14%
Instruction
$1,931,124
72.73%
Other Student Related
$18,519,110
27.93%
Other Student Related
$4,759,702
11.60%
Instruction
$626,820
15.44%
Infrastructure
$1,052,809
2.47%
Infrastructure
-$32,903
-1.24%
Instruction
$45,913,114
69.23%
Instruction
$9,802,609
23.91%
%%
Infrastructure
$409,905
10.10%
Other Student Related
$11,949,892
27.94%
Infrastructure
$1,883,558
2.84%
Infrastructure
$25,336,012
61.81%
Other
$0.00
0.00%
Other
$27,967,303
65.39%
Residence Life
Student Activities
Student Union
Food Service
Athletics
Printing Center
Bookstore
Parking
Other
$0
0.00%
Other
$0.00
0.00%
%
Other
$62,620
0.08%
%%%
(1) Other Student Related = Student Services and Academic Support
(2) Infrastructure = Physical Plant, Institutional Support
(3) Other = Farm Operations, Hospital, and Auxiliaries
UNIVERSITY OF WISCONSIN OSHKOSH
2012-13 OPERATING BUDGET
$241,716,500
Current
Data
Total Budget: $241,716,500
Federal Funds $84,926,478
35%
56%
Gifts, Grants & Contracts $4,058,502
2%
Auxiliaries $42,770,450
Other Operational Receipts $2,655,438
Combined Total: $45,425,888
19%
Focus on the Relative Allocation GPR v. Tuition/Fees
44%
17%
GPR
Tuition/Fees
27%
$40,989,850
$66,315,782
GPR + Tuition/Fees Total: $107,305,632
38%
GPR
+
62%
Tuition/Fees
=
100%
Combined
Subtotal
2013-15 Budget – Details of the
Governor’s Budget Proposal $181 Million in Additional
Investments in the UW System
New Fiscal Paradigm
$110.2 Million
Note: This $89.4
million in flexible “block
grant” funding covers
costs during 2012-2015
that include items
historically funded as
“cost to continue” (e.g.,
fringe benefit costs) or
costs associated with
ongoing operations and
existing commitments
(e.g., utilities).
Note: This $20.8
million represents a
one-time budget
adjustment addressing
cost issues from 20112012. The block grant
funding model changed
the prior paradigm.
UW System Program Revenue Balances
Figure 1: Total FY 2011-12 Program Revenue Appropriation Balances
Federal Aid Special Projects
General
and Federal
Gifts and
Auxiliary
Operations
Indirect Cost
Extension
Donations Enterprises
Receipts
Reimbursement Student Fees
WARF
(128)
(136)
(144 and 150)
(189)
(135)
$72,400,814
$50,887,048
$80,596,964
$4,390,045
$40,772,120
$8,455,221
$12,903,893
$9,302,296
$20,570,085
UW-Madison
UW-Milwaukee
Academic
Student Fees
(131)
$101,998,449
$45,597,364
UW-Eau Claire
UW-Green Bay
$14,077,671
$4,321,766
$22,018,782
$4,318,066
$5,793,382
$4,192,641
$1,449,356
$697,659
UW-La Crosse
UW-Oshkosh
$27,739,815
$12,005,766
$31,708,972
$7,847,204
$21,240,714
$14,335,853
UW-Parkside
UW-Platteville
$5,453,401
$12,061,305
$3,062,194
$3,789,338
UW-River Falls
UW-Stevens Point
$8,558,846
$10,727,959
UW-Stout
UW-Superior
UW-Whitewater
UW Colleges
UW-Extension
UW System Admin
UW-Systemwide
Total
All Other PR
Appropriations
Total PR
Appropriations
$69,122,207
($4,301,786)
$420,167,648
$92,527,073
$2,642,438
$2,911,304
$6,917,988
$1,842,980
$52,899,616
$18,284,415
$678,094
($117,515)
($61,160)
($29,896)
$3,495,826
$2,731,469
$84,802,261
$36,772,882
$830,713
$1,639,985
($27,729)
$141,093
$99,256
$240,577
$535,105
$4,239,189
$9,952,939
$22,111,487
$9,649,642
$13,810,569
$1,204,899
$3,193,722
($219,147)
$2,946,274
$1,088,232
$904,552
$3,152,993
$657,043
$23,435,465
$32,240,119
$2,889,710
$1,108,098
$1,119,719
($6,170,998)
$8,938,663
$352,930
$515,314
($345,664)
$442,166
$89,349
$3,685,390
($598,764)
$17,590,962
($5,565,049)
$27,446,938
$12,643,143
$22,672
$4,877,585
$2,671,113
$1,832,272
($46,602)
$3,156,668
$4,914,168
$1,548,993
($993,066)
$771,656
$7,120,677
$4,000
$1,282,251
$201,963
$10,596,387
$2,828,925
$1,104,823
$2,313,863
$12,964,987
$38,599,302
$22,306,866
$23,434,864
$12,922,385
$127,488,104
$2,660,049
$2,910,968
$17,383,129
($7,902,614)
$142,539,636
1
$414,141,007
$184,003,940
$138,045,240
$119,903,390
$102,789,623
$1,045,022,869
2
$45,367,550
$40,772,120
1
$170,389,741 to cover carryover amounts and Fund 189 Pooled amounts are reallocated to respective institutions.
2
Due to financial statement adjustments this balance does not equal the Total Ending Balance - PR appropriations of $1,045,200,572 as provided by LFB and LAB.
Understanding our Uncommitted Reserve
 Behind the numbers… $37 million total
reserve
 Roughly one-third, or $12 million, is from
tuition fund balance (differential and
regular tuition)
UW Oshkosh FY 2011-12
Program Revenue Appropriations
Balances
Total PR Balances
$36.8 million
1. Classroom seats, technology, capital
projects and teaching mission
2. Recurring, self-supporting
academic programs (campus-wide)
3. STEP, USP, Innovative New Programs
4. Targeted Services by funding agencies
5. Auxiliaries – self-supporting
6. Differential tuition – funding
for student-support areas
$7.5 million
$8.2 million
$6.1 million
$2.7 million
$7.8 million
Combined
Total
$33.8
million
$1.5 million
Uncommitted Reserve $3.0 million
A Million Dollar Example:
Environmental Research and
Innovation Center (ERIC)


ERIC – contract lab specializing in customized testing & research
$1 million campus investment from campus fund balance as well as grant and contract
revenue – not state tax dollars





15 County Partners with ERIC-operated testing facilities



$700K renovation of underutilized riverfront building (loan to be repaid)
$300K in equipment
4 fulltime laboratory employees in Oshkosh (2) and Eagle River (2)
300 paid student internships over the past 8 years
Ashland, Eagle River, Sturgeon Bay, Manitowoc and Oshkosh
$5 million in EPA research grants plus additional revenue from governmental, and industrial
contracts and testing
Provides living learning laboratory for current STEM students and future students majoring
in electrical, mechanical, and environmental engineering technology programs
This demonstrates how and why the strategic reinvestment of fund balances is fiscally prudent.
• ERIC provides more than a 5-1 return on the initial investment
• Advances exceptionally high quality teaching, research & service initiatives and experiences
• A member of the Bd. of Regents noted ERIC is a preeminent example of the Wisconsin Idea
Competing Million Dollar Examples:
ERIC v. Cost-to-Continue
 Option A – ERIC – $1 million campus investment (Note: $700,000
loan to be repaid)
 Collaborative partnership – a high-impact educational experience
 Creates 4 fulltime jobs
 300 paid internships (to date)
 Over $5 million in research grants and other revenue
 Option B – Cost-to-Continue – Transfer from uncommitted reserve to
offset fiscal shortfall – e.g., increased cost of fringe benefits
 Uses campus-based funds to address shortfall in state revenues
 Fully expends $1 million – no return on investment … does not
address ongoing structural need for funds
 Creates no new jobs, no student internship, no external partnerships
or collaboration
Scorecard: ERIC Lab v. Cost-to-Continue
Criteria
ERIC Lab
Cost-ToContinue
1. Addresses High Priority Expenditures
 Yes
 Yes
2. One-Time Expenditure
 Yes, and loan
repaid with ROI
funds
 Yes, but ongoing
cost not covered
3. Future Cost/Need for Funding
No
 Yes
4. Return on Investment
 Yes (5X+)
No
5. Creates New Jobs
 Yes
No
6. Collaboration with Local and Regional
Partner
 Yes
No
7. Student Internships
 Yes
No
8. High-Impact Learning Experience
 Yes
No
9. Creates Future Revenue Stream –
Grants and Contracts
 Yes
No
Understanding our Uncommitted Reserve
 $3 million rainy day fund – Why and How
Used?
 Addressed unanticipated fluctuations in
enrollment numbers
 Addressed unexpected changes in
financial planning assumptions
 Addressed key areas of campus initiative
and re-investment
Understanding Major Trends
The Bottom Line
1. Students are paying more tuition (both relatively and
absolutely) 60/40 v. 40/60
2. Fund balances have increased and include relatively more
tuition
3. Dynamic Planning Context – Prevailing Campus Conditions
A. We have maintained historic enrollment levels
B. We are prepared for persistent and continuing fiscal
uncertainty
C. We will generate new funding through innovative and
entrepreneurial initiatives
D. We will continue to ensure that all funding sources are
applied and reinvested in thoughtful, strategic and fiscallyprudent areas
What does this all mean for UW
Oshkosh?
1.
2.
3.
4.
5.
Our Commitments Going Forward
We will become even more innovative, entrepreneurial and
creative in order to identify new potential revenue sources.
We will be more efficient and more effective in order to
improve the quality and value of all services we provide.
We will manage all revenue sources – all fund balances and all
uncommitted reserves – in thoughtful, prudent and strategic
ways.
We will improve our authentic communication with both
internal and external stakeholders in order to promote
transparency and shared understanding of all academic and
fiscal issues, challenges and opportunities.
We will build upon our established commitment to civility and
responsible patterns and practices of community engagement.
UW Oshkosh
Budget Principles
1. Value employees and abide by contracts, policies and
established procedures.
2. Budget for activities that are central to the mission, add
value, or are required.
3. Protect the direct instructional undergraduate and graduate
teaching mission.
4. Protect the integrity of services supporting the University’s
mission.
5. Continue the commitment to the University’s strategic plan
and established priorities.
UW Oshkosh
Budget-Related Timeline
Date* (see note to the right)
Action
 Nov. 12, 2012
UW Oshkosh 2013-2015 Budget Submission
 Aug. 23, 2012
Board of Regents – Approves Budget submits to State
 Feb. 20, 2013
Governor Walker’s Budget Address
 Feb. 27, 2013
Open Forum
 February-June 2013
Budget Review – Joint Finance Committee
 March 7, 2013
Meeting of the Board of Regents, University of Wisconsin System
 March 13, 2013
U-PLAN budget update/feedback meeting
 March 18-22, 2013
UW Oshkosh Spring break
 April 4/5, 2013
Meeting of the Board of Regents, University of Wisconsin System
 April 10, 2013
U-PLAN budget update/feedback meeting
Mid-April to Mid-May 2013
Joint Finance Committee - Executive Deliberations (agency budget reviews)
May 1, 2013
Campus Forum
May-June 2013
Joint Finance Committee – Completes all Actions
The Legislature and the Governor then finalize the budget (target date: July 1st).
June 6/7, 2013
Meeting of the Board of Regents, University of Wisconsin System
June 12, 2013
U-PLAN budget update/feedback meeting
July 1, 2013
Start of the 2013-2015 Fiscal Year (target for legislative approval)
Late July 2013
Governor Walker takes action on the biennial budget
* Note: Regular meetings
will be held with governance
group leaders and the UPLAN Council.
Additionally, during this
entire process, periodic
communications will be sent
to the campus community
Questions?
Thank you
Where excellence and opportunity meet.™