Spring 2016
E&G Interim Budget Update
FY 2015-16 (Current Year)
FY 2016-17 (Request Year)
As of March 10, 2016 (University Action Plan/Interim BUDRPT Submission)
BLOOMSBURG UNIVERSITY
BUDGET SUBCOMMITTEE – MARCH 18,2016
PLANNING AND BUDGET – MARCH 31, 2016
UNIVERSITY FORUM – APRIL 20, 2016
1
E&G Interim Budget Report Submission Overview
•
Interim E&G budget report submitted to the State System on March 10, 2016 as part of the
Bloomsburg University 2015-2016 Action Plan submission
•
Updates BUDRPT17 (original BUDRPT) submitted to the State System on September 2, 2015
FY 2015-16

Applies actuals as of January 31, 2016 and forecasts revenue and expenditures for the remainder of the fiscal year.
E&G special program (Fund 1012) and E&G self-supporting (Fund 1013) funds receive a corresponding adjustment to
the expenditure/transfer line or use of carryforward line, as appropriate.

Generally assumes 100% spend of carryforward fund balance as submitted by divisions to the Budget Office during
July/August 2015 (adjustments are made for any plans revisions that the Budget Office receives from the divisional
vice presidents).

Assumes anticipated E&G general fund (1011) expenditures for services/supplies, capital, and transfers remain
consistent with original budget, unless variances and/or reclassifications between line items are known.
FY 2016-17

Updates/revises request year, FY 2016-17
2
E&G Interim Budget Update
FY 2015-16
Educational and General Fund (General, Special
Programs, Self-Supporting)
E&G Revenue/Sources
Tuition
Fees
Total Tuition and Fees
State Appropriation
All Other Revenue
Use of Carryforward Fund Balance 1
Original BUDRPT
Submission 9/2/15
dollars in millions
$
81.4 $
17.1
98.5 $
34.0
4.8
80.7 $
17.0
97.7 $
32.8
4.7
(0.7)
(0.1)
(0.8)
(1.2)
(0.1)
9.5
146.8 $
8.2
143.4 $
(1.3)
(3.4)
$
70.9 $
37.3
108.2 $
69.7 $
35.5
105.2 $
(1.2)
(1.8)
(3.0)
$
31.3
2.4
4.9
146.8 $
30.8
2.4
5.0
143.4 $
(0.5)
0.1
(3.4)
$
Total Revenue/Sources
$
E&G Expenditures and Transfers
Compensation Summary:
Salaries and Wages
Benefits
Subtotal, Compensation
$
2
Services and Supplies
Capital Expenditures
Transfers
Total Expenditures and Transfers
Revenue/Sources less Expenditures/Transfers
Interim (Revised)
BUDRPT Submission
Variance
3/11/16
dollars in millions
dollars in millions
-
-
(0.0)
Balanced; all E&G funds
1
Original BUDRPT submission included use of $3.6MM of carryforward to balance the E&G General Fund budget. Interim (Revised)
BUDRPT submission includes use of $2.4MM of carryforward to balance the E&G General Fund budget.
2
Includes student financial aid (non-employee waivers and institutional scholarships) and utilities.
3
Key Revenue/Source Variance Drivers-E&G Interim Budget Update
FY 2015-16

Tuition revenue lower than originally projected (-$.7MM); Enrollment for fall/spring
(primarily non-resident undergraduate); winter

Fee revenue lower than originally projected (-$.1MM); enrollment related

State appropriation (base and performance funding) lower than originally projected (-$1.2MM) based on the December 2015 enacted
Commonwealth budget

Adjustments to Planned Use of Carryforward Fund Balance-Source ($-1.3MM) primarily attributed to:
; summer

(-$1.2MM)
Reduction in use of institutional reserve projected to be needed to balance the E&G General Fund budget
(based on actual activity to date plus projections for the remainder of the fiscal year)

(-$.4MM)
Use of carryforward fund balance originally planned to balance E&G self-supporting budgets that is
no longer necessary based on revised salary and benefit projections

($-.1MM)
Use of carryforward fund balance originally planned to fund BAS-TL coordinators that is no longer necessary-initiative moved to
FY 2016-17

(+$.3MM)
Additional use of carryforward fund balance not originally planned; Year 1 Ruffalo Noel Levitz SEM contract ($.2MM), increased
marketing and recruitment efforts ($.1MM)
4
Key Expenditure/Transfer Variance Drivers-E&G Interim Budget Update
FY 2015-16

Labor costs lower than originally projected. Increase in turnover/savings = $3.0MM ($2.6MM-E&G General Fund; $.4MM-E&G Designated).
Original turnover/savings included in the original compensation projection of $108.2MM = $3.1MM. Revised turnover/savings projection =
$6.1MM. Revised projection for net turnover/savings, $6.1MM, largely attributed to:





(+$5.1MM)
(+$ .5MM)
(+$ .4MM)
(+$ .1MM)
(-$ .1MM)
Savings attributed to retirements/vacant positions across all bargaining units
Faculty pool savings
Additional healthcare/annuitant savings
Mid-year State System healthcare benefit changes (Non-represented, nurses, SPFPA)
Mid-year non-represented salary increases

Services and supplies decrease ($.5MM) largely attributed to lower than originally projected expenses ($.7MM) associated with;

Financial aid ($.2MM)

President’s discretionary ($.1MM)

General institutional support ($.1MM)

Mid-year AA E&G general fund operating budget reductions ($.1MM)

Reductions associated with less than projected self-supporting revenue ($.1MM)

Miscellaneous expenses ($.1MM) offset by:
 Expenditures not originally planned ($.3MM); Year 1 Ruffalo Noel Levitz SEM contract ($.2MM), enhanced marketing and
recruitment efforts ($.1MM); both initiatives funded by institutional reserve)

Transfer increase ($.1MM) attributed to an unbudgeted transfer to plant (source of funding: interest received on overpayment to United Water;
funds transferred to the E&G portion of the Columbia Residence Hall Chiller Building Project)
5
FY 2015-16 E&G Interim Budget Update Summary
 Budget is balanced for all E&G funds (General, Special Programs, Self-Supporting)
 $2.4MM of institutional reserve is projected to be used to balance the E&G General fund budget
 Projected E&G General fund bottom line net improvement of $1.2MM (original projected deficit of $3.6MM vs.
revised projected deficit of $2.4MM) is primarily attributed to the following:
Revised Use of Carryforward Funds to
Balance E&G General Fund (Deficit)
$-2.4MM
Lower than Projected Tuition Revenue
Lower than Projected State Appropriation
Original Use of Carryforward Funds to
Balance E&G General Fund (Deficit)
Projected E&G General Fund Bottom Line
Net Improvement
$-3.6MM
Lower than Projected Labor Costs
Lower than Projected Other Expenses 1
$1.2MM
Projected E&G General Fund Bottom Line
Net Improvement
-$.7MM
-$1.2MM
$2.6MM
$.5MM
$1.2MM
Financial Aid, President’s Discretionary, Institutional Support, Mid-Year AA E&G General Fund
Operating Budget Reductions
1
6
Uncommitted Institutional Reserve (E&G General Fund) Rollforward
7/1/15-6/30/16
Projected
(dolla rs in millions)
Uncommitted Institutional Reserve Balance 7/1/15
Original Amount Projected to Balance FY 2015-16 E&G General Fund Budget
Projected FY 2015-16 Carryforward to Institutional Reserve - E&G General Fund Bottom Line Net Improvement
Use of Carryforward-Year 1 of Ruffalo Noel Levitz SEM Contract (Not Originally Budgeted)
Use of Carryforward-Increased Marketing and Recruitment Efforts (Not Originally Budgeted)
Uncommitted Institutional Reserve Balance 6/30/16-Projected
$
13.5
(3.6)
1.2
(0.2)
(0.1)
10.8
$
Note: Additional FY 2015-16 state appropriation, as proposed by the Governor, results in additional revenue of $1.8MM.
Impacts of this potential award are as follows:
Enacted
March 28,
2016



Use of Carryforward Funds to Balance E&G General Fund (Deficit)
Projected E&G General Fund Bottom Line Net Improvement
Uncommitted Institutional Reserve Balance 6/30/16
$ .6MM
$ 3.0MM
$12.6MM
7
E&G Interim Budget Update
FY 2016-17
Educational and General Fund (General, Special
Programs, Self-Supporting)
E&G Revenue/Sources
Tuition
Fees
Total Tuition and Fees
State Appropriation
All Other Revenue
Use of Carryforward Fund Balance
Original BUDRPT
Submission 9/2/15
dollars in millions
$
Interim (Revised)
BUDRPT Submission
3/11/16
dollars in millions
Variance
dollars in
millions
90.8 $
17.1
107.9 $
33.8
4.8
80.2 $
22.0
102.2 $
33.1
4.8
(10.6)
4.9
(5.7)
(0.7)
-
1.3
147.8 $
1.3
141.4 $
(6.4)
$
71.4 $
40.0
111.4 $
71.6 $
38.9
110.5 $
0.2
(1.1)
(0.9)
Services and Supplies
Capital Expenditures
Transfers
Total Expenditures and Transfers
$
33.0
1.9
3.9
150.2 $
29.0
1.9
3.9
145.3 $
(4.0)
(4.9)
Revenue/Sources less Expenditures/Transfers
$
(2.4) $
(3.9) $
(1.5)
$
Total Revenue/Sources
$
E&G Expenditures and Transfers
Compensation Summary:
Salaries and Wages
Benefits
Subtotal, Compensation
$
1
1
Includes student financial aid (non-employee waivers and institutional scholarships) and utilities.
Unbalanced; Projected
deficits are in the E&G General
Fund; Special Programs/SelfSupporting funds are balanced.
8
Key Assumptions Used for FY 2016-17 E&G Interim Budget Update
Tuition and Fees:




FY 2016-17 Projected Deficit
E&G General Fund
(with implementation of a Student Success Fee)
$(3,900,000) 1
As of March 10, 2016 (University Action Plan Submission Date)
For every 1% increase in approved tuition rates, the
projected deficit will be reduced by $754K (assuming no
changes in enrollment).
1
The Governor proposed additional appropriation funding
for 2015-16 (5% increase over the 2015-16 Commonwealth
budget that was enacted in December 2015) which was
enacted on March 28, 2016 and another 5% increase for
2016-17. If this proposal were to be fully enacted, the
projected deficit would be reduced by $3.7MM.
Any gains in revenue may be fully or partially offset by
collective bargaining agreements finalization.
No increase in tuition rates and no changes to the way tuition is charged (no per-credit tuition pricing for UG students)
Inclusion of a $300/semester (FT UG) and a $25/credit (PT UG) Student Success fee
No increase in Academic Enhancement and Technology Tuition fees
Miscellaneous fees adjusted based on FY 2015-16 revised budget (projected FY 2015-16 actuals)
State Appropriation:
 Level State System appropriation funding based on the enacted 2015-16 Commonwealth budget
 Base appropriation has been adjusted based on a preliminary run of the System’s allocation formula and full implementation of
the allocation formula
 Performance funding projection is consistent with funding received in 2015-16
All Other Revenue:
 Generally consistent with FY 2015-16 revised budget (projected FY 2015-16 actuals)
Use of Carryforward Fund Balance:
 Majority of balance ($1.3MM) reflects planned use of carryforward fund balance as submitted by divisions to the Budget Office
during July/August 2015
Compensation:
 Assumes all authorized positions will be filled as of July 1, 2016 or August 29, 2016 (start of the fall semester)
 Salaries and benefits projected based on State System assumptions as of February 2016
Services/Supplies and Capital Expenditures:
 Continued reduction in base budgets (put into effect in 2013-14)
 CPI increases where appropriate
 Other known or anticipated adjustments included (i.e. BU Academic Excellence Scholarship program approved by the COT in
November 2014, Ruffalo Noel-Levitz strategic enrollment management consulting engagement)
Transfers:
 Full borrowing cost included for E&G share of steam plant upgrade ($318K) and new residence hall-University mailroom ($52K)
9
Key Revenue/Source Variance Drivers-E&G Interim Budget Update
FY 2016-17

Tuition revenue lower than originally projected ($10.6MM): per-credit tuition pricing for UG students removed; projecting a .88% drop in annualized FTE
enrollment over FY 2015-16 (projection as of interim budget update)

Fee revenue higher than originally projected ($4.9MM): implementation of student success fee fall 2016 ($5.1MM) offset by a projected reduction in
technology tuition, academic enhancement, other mandatory fees, and non-credit corporate and continuing education fees ($.2MM) related to
projected enrollment declines

Appropriation revenue lower than originally projected ($.7MM); figure provided by the State System (assumes level funding based on the December
2015 enacted Commonwealth budget (university base adjusted for a preliminary run of the System’s allocation formula and university performance
funding is level with FY 2015-16 performance funding award))
10
Key Expenditure Drivers-E&G Interim Budget Update
FY 2016-17

Net labor cost savings ($.9MM) primarily attributed to:
 (-$1.2MM)
Salary and associated benefit increases (based on State System assumptions)
 (+$ .9MM)
Changes to State System healthcare benefits (Non-represented/SPFPA, known; Faculty assumed)
 (+$ .6MM)
Positions frozen or eliminated (AFSCME/SCUPA)
 (+$ .4MM)
Changes to vacant tenure positions
 (+$ .3MM)
Adjustment to original turnover/savings calculation ($3.7MM) based on current trends; Revised turnover/savings = $4.0MM

Services and supplies decrease primarily attributed to institutional aid associated with per-credit tuition pricing ($3.9MM)
11
FY 2016-17 Interim Budget Update Summary

Original submission projected an $2.4MM shortfall/deficit in the E&G General Fund

Interim budget update with removal of per-credit tuition pricing for undergraduate students and associated institutional aid, implementation
of a student success fee in fall 2016, adjustments for current enrollment trends and updated salary/benefit information, and other
assumptions as previously outlined results in a revised projected shortfall/deficit of $3.9MM in the E&G General fund

Additional considerations:
FY 2016-17 Additional Considerations Summary
(dollars in millions)
Projected E&G General Fund Deficit w/Given Assumptions
State Appropriation Increase as Recommended by Governor Wolf
3.0% Tuition Increase 1
Potential Surplus 2
$
(3.9)
3.7
2.3
$
2.1
1
For illustrative purposes only. Does not reflect action taken by the Board of
Governors.
2
May be fully or partially offset by collective bargaining agreement/benefit
finalization.
12
Key Unknowns Going into FY 2016-17
•
Final results of collective bargaining negotiations (all collective bargaining agreement have expired or will expire
during summer 2016)
•
Final state appropriation allocation and related impacts to tuition/technology tuition increases
13
Discussion
14