Fall 2015
E&G Fund Budget Briefing
FY 2014-15 (Prior Year)
FY 2015-16 (Current Year)
FY 2016-17 (Request Year)
B UD G E T S U BCO M M I T TEE – S E PTEMBER 1 6 , 2 0 1 5
U N I V ERSITY FO R U M – S E PTEM BER 2 3 , 2 0 1 5
1
FY 2014-15 (Prior Year)
E&G Interim BUDRPT vs. FINRPT Actuals
Educational and General Fund (General, Special Programs,
Self-Supporting)
E&G Revenue/Sources
Tuition
Fees
Total Tuition and Fees
State Appropriation
Transition Funds
All Other Revenue
Use of Carryforward Fund Balance
FY 2014-15 Interim
BUDRPT Submission
$
99.71%
101.22%
99.96%
100.00%
100.00%
118.19%
8,461,574
142,078,541 $
5,553,430
(2,908,144)
139,977,085 $ (2,101,456)
65.63%
98.52%
$
72,006,978 $
33,244,298
105,251,276 $
70,856,412
(1,150,566)
32,866,398
(377,900)
103,722,810 $ (1,528,466)
98.40%
98.86%
98.55%
$
29,761,164
2,271,512
4,794,589
142,078,541 $
24,688,569
(5,072,595)
1,845,690
(425,822)
4,971,955
177,366
135,229,024 $ (6,849,517)
82.96%
81.25%
103.70%
95.18%
$
1
$
E&G Expenditures and Transfers
Compensation Summary:
Salaries and Wages
Benefits
Subtotal, Compensation
$
Revenue/Sources less Expenditures/Transfers Per BUDRPT $
Use of Carryforward Fund Balance (FINRPT Records Revenue Only)
Revenue less Expenditures/Transfers Per FINRPT
79,967,058 $
15,897,377
95,864,435 $
32,968,555
140,000
4,643,977
-
$
$
79,734,333 $
16,092,119
95,826,452 $
32,968,555
140,000
5,488,648
Variance
Actuals as a %
Of Interim
BUDRPT
Submission
(232,725)
194,742
(37,983)
844,671
Total Revenue/Sources
Services and Supplies 2
Capital Expenditures
Transfers
Total Expenditures and Transfers
FY 2014-15 (Prior Year)
FINRPT Actuals
1 FY 2014-15 Interim BUDRPT
Submission: Includes $1.5MM
use of AE CF to balance E&G
General Fund budget and
$7.0MM of planned use of CF for
other initiatives. FY 2014-15
(Prior Year) FINRPT Actuals :
Includes only carryforward funds
that were transferred/used for
specific, one-time initiatives
Includes student financial aid
(non-employee waivers and
institutional aid) and utilities
2
4,748,061 $ 4,748,061
(5,553,430)
(805,369)
2
June 30, 2015
E&G Fund (General, Special Programs, and Self-Supporting) Fund Balance Detail
Educational and General Fund Balance Detail
Description
6/30/15
$
Technology Initiatives (Tech Fee Fund)
20,858 $
4,067,276
Academic/Student Affairs/SEM Initiatives (Academic Enhancement Fee Fund)
440,908
Sustainability Initiatives
6/30/14
Variance
(827,632)
848,490 $
(1,600,396)
5,667,672
199,457
241,451
Scholarships 1
President/VP/Dean Residual Budget Carryforwards
Student Information System (ISIS)
598,609
1,789,688
521,659
543,403
1,700,404
361,653
55,206
89,284
160,006
Other 2
2,171,252
2,490,060
(318,808)
2,487,596
2,462,757
24,839
3
Self-Supporting Operations
Reserve-Institutional:
Healthcare Reserve
Mailroom/Custodial Reloc/Renovation-Transfer in FY 2015
Uncommitted Reserve Balance
Multi-Year Planning Reserve-A&F Equipment and Computer Replacement
Reserve-Utilities
Reserve-Miscellaneous
Outstanding Commitments
$
481,389
13,472,030
440,648
213,217
42,814
906,698
27,654,642 $
475,366
120,000
12,052,107
279,819
110,989
38,483
1,067,357
28,460,011 $
6,023
(120,000)
1,419,923
160,829
102,228
4,331
(160,659)
(805,369)
1
Includes PEPSI/Trustee, Verizon Retention, Integra College Grant, and USH (ACT 101 summer program) funds.
Includes Special Program funds (President's Strategic Planning Grants, Indirect Cost, Financial Aid Administrative Allowance, etc.)
and the majority of E&G General Funds that carryforward to self (Office of Technology, Telecom Ctr, PBX and Voicemail, etc.).
2
3
Includes camps, conferences, Speech and Hearing Clinic, shuttle bus operation, etc.
3
Tuition and Fees:
2015-16
(Current Year)
Key Assumptions
 Annualized FTE enrollment decrease of 1.2% over prior year
 3.5% tuition increase (per-credit pricing pilot deferred to FY 2016-17)
 3.3% Technology Tuition fee increase
 3.5% Academic Enhancement fee increase
 93.5% Health Services/Wellness fee increase ($120/semester v. $62/semester)
 Miscellaneous fees align with FY 2014-15 actuals
State Appropriation (Includes Performance Funding):
 3% increase; base adjusted for two-thirds of the full allocation formula implementation; performance funding based
on prorated estimate of FY 2014-15 awards; NOTE THAT FY 2015-16 STATE APPROPRIATION HAS NOT BEEN FINALIZED
All Other Revenue:
 Consistent with FY 2014-15 actual all other revenue adjusted for known variances
Compensation:
 Contractually obligated salary/wage adjustments (AFSCME, SCUPA, SPFPA, OPEIU), healthcare, annuitant
hospitalization, and other benefit increases included
 No salary/wage adjustments included for APSCUF (contract expired June 30, 2015) and Non-represented (no pay
adjustments have been approved for FY 2015-16)
Services/Supplies and Capital Expenditures:
 Continued reduction in base budgets (put into effect in FY 2013-14)
 CPI increases where appropriate
 Other known or anticipated adjustments included (i.e. new BU Academic Excellence Scholarship program approved by
the COT in November 2014)
Transfers:
 New debt service-E&G share of steam plant upgrade ($152K) and E&G Share of New Res Hall-University Mailroom
($6K)
 FY 2014-15 plant transfer reduction ($1.0MM) restored for FY 2015-16
4
FY 2015-16 (Current Year)
E&G Budget Projection
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
FY 2015-2016 (Current Year)
$
$
1
Total Revenue/Sources
$
E&G Expenditures and Transfers
Compensation Summary:
Salaries and Wages
Benefits
Subtotal, Compensation
$
81,433,177
17,144,629
98,577,806
33,962,915
4,808,452
9,526,007
146,875,180
$
70,920,211
37,339,691
108,259,902
Services and Supplies
Capital Expenditures
Transfers
Total Expenditures and Transfers
$
31,334,917
2,372,201
4,908,160
146,875,180
Revenue/Sources less Expenditures/Transfers
$
2
-
1
Includes use of institutional reserve in the amount of $3,571,465 to balance the E&G General Fund budget
2
Includes student financial aid (non-employee waivers and institutional aid) and utilities
Balanced; All E&G Funds
5
FY 2015-16 (Current Year) Salary and Benefit Highlights
FY 2015-16 Salary and Benefit Cost Drivers
 Overall increase, inclusive of $3.1MM in projected
salary and benefit savings/turnover, from prior year =
$4.5MM (budget includes $1.17MM planned use of
carryforward fund balance)
 Majority of increase attributed to contractually obligated
salary/wage increases, anticipated filling of vacancies, retirement
and employee/annuitant hospitalization rate increases
(hospitalization rates are significantly higher than 2014-15 rates)
offset by projected reductions in faculty overload
 Budget includes funding for 19 tenure track faculty positions (left
vacant or filled by temps in FY 2014-15)
 Reduction of 21.25 FTE in budgeted positions (24.75 decrease in
temporary faculty pools; temporary faculty pool reduction driven by
projected enrollment decreases and requirement to maintain the
temp faculty ratio within required range ) and 1.50 decrease in
AFSCME offset by increases of 3.0 in non-represented and 2.0 in
SCUPA
Mandated Salary/Benefit Increases
Salaries
APSCUF
AFSCME
Non-represented
SCUPA
Coaches
SPFPA
OPEIU
Benefits
Healthcare-PEBTF Plan (AFSCME, SCUPA)
Healthcare-HMO/PPO (APSCUF, Non-rep, OPEIU, SPFPA, Coaches)
Annuitant Hospitalization-AFSCME
Annuitant Hospitalization-Faculty, Non-rep, SCUPA, Coaches
Retirement:
SERS (Class AA (vast majority of employees)
PSERS
Fiscal Impact (Steps/GPI)
0%
1.13%
0%
1.25%
0.00%
2.05%
1.13%
% Increase
0.00%
8.28%/12.67%
25.15%
2.50%
24.80%
20.75%
6
FY 2015-16 (Current Year) E&G Budget Projection
Revenue/Sources Summary
Use of Carryforward Fund
Balance; $9,526,007 ; 7%
All Other Revenue; $4,808,452 ;
3%
State Appropriation;
$33,962,915 ; 23%
Total Revenue/Sources = $146,875,180
Tuition and Fees; $98,577,806 ;
67%
Tuition and Fees
State Appropriation
All Other Revenue
Use of Carryforward Fund Balance
7
FY 2015-16 (Current Year) E&G Budget Projection
Planned Use of Carryforward Fund Balance Detail
Salaries and Benefits;
$1,169,834 ; 12%
Balance E&G General Fund
Budget; $3,571,465 ; 37%
Services and Supplies;
$2,926,854 ; 31%
Total Planned Use of Carryforward
Fund Balance = $9,526,007
Transfers; $1,118,987 ; 12%
Capital ; $738,867 ; 8%
Salaries and Benefits
Services and Supplies
Capital
Transfers
Balance E&G General Fund Budget
8
FY 2015-16 (Current Year) E&G Budget Projection
Expenditures and Transfers Summary
Capital ; $2,372,201 ; 2%
Transfers; $4,908,160 ; 3%
Services and Supplies;
$31,334,917 ; 21%
Total Expenditures and Transfers =
$146,875,180
Salaries and Benefits;
$108,259,902 ; 74%
Salaries and Benefits
Services and Supplies
Capital
Transfers
9
FY 2015-16 Institutional Reserve Impact
 Institutional reserve provides the university a short-term option to balance the E&G General fund budget while longerterm revenue enhancing opportunities and cost structure reduction strategies are implemented
 Uncommitted balance in institutional reserve at 6/30/15 = $13.47MM; Committed $3.57MM to balance the FY 2015-16
E&G General Fund budget; remaining uncommitted balance = $9.90MM
 If per-credit tuition pricing pilot were implemented in FY 2015-16 as originally planned, no commitment of
institutional reserve would be necessary to balance the E&G General Fund budget as the initiative would have
resulted in a projected net revenue increase of $3.56MM (additional tuition revenue less expenses associated with a
per-credit tuition pricing implementation; BU tuition grant, adjustments to waivers to keep students on track with 15
credits/semester)
 Longer-term budget balancing strategies (FY 2016-17 and beyond):
 Per-credit tuition pricing pilot (approved by Board of Governors in January 2015)
 Net revenue generation initiatives
•
•
•
Targeted enrollment increases: BAS-TL, DNP, Criminal Justice Degree Completion, RN to BSN Degree Completion, Supply
Chain Management, Early Childhood Education Degree Completion-Online
Increased retention efforts: Student Success Collaborative, PASSHE Student Success Network, Sophomore Success Program
Short-term career pathways and credentialing for adults and non-traditional students
 Ongoing faculty, staff, and administration workforce planning and program cost review
 Personnel cost improvement initiatives
10
Additional Considerations
FY 2015-16 (Current Year) E&G Budget Projection
FY 2015-16 (Current Year) Projected Deficit-E&G General Fund
0% Increase in State Appropriation-Base
0% Increase in State Appropriation-Performance Funding (Award Consistent with 2014-15)
Salary adjustments for APSCUF/Non-represented (mimic AFSCME)
Estimated Potential FY 2015-16 (Current Year) Projected Deficit-E&G General Fund
$
$
(3,571,465)
(1,056,916)
(87,224)
(756,397)
(5,472,002)
11
Tuition and Fees:
2016-17
(Request Year)
Key Assumptions
 Implementation of per-credit tuition pricing pilot which results in an annualized FTE enrollment decrease of 1.7%
(anticipated reduction in the number of students taking more than 15 credits)
 Undergraduate resident per-credit tuition rate consistent with FY 2015-16 per-credit tuition rate ($294)
 Undergraduate non-resident per-credit tuition rate equal to 200% of the FY 2015-16 undergraduate resident percredit tuition rate ($588)
 0% tuition increase for graduate students
 0% increase in Academic Enhancement and Technology Tuition fees
 Miscellaneous fees align with FY 2015-16 projections
State Appropriation (Includes Performance Funding):
 0% increase (NOTE THAT FY 2015-16 STATE APPROPRIATION PROJECTION INCLUDED A 3% INCREASE; APPROPRIATION
AWARD HAS NOT BEEN FINALIZED); base adjusted for full implementation of the full allocation formula implementation;
performance funding equivalent to FY 2015-16 projection
All Other Revenue:
 Consistent with FY 2015-16 projection
Compensation:
 No pay adjustments (all collective bargaining agreements have expired or will expire during summer 2016)
 Residual impact of FY 2015-16 mid-year pay increases included
 Healthcare, annuitant hospitalization, and other benefit increases included based on State System benefit
assumptions
 Assumes all authorized positions will be filled as of July 1, 2016 or August 29, 2016 (start of fall semester)
Services/Supplies and Capital Expenditures:
 Continued reduction in base budgets (put into effect in FY 2013-14)
 CPI increases where appropriate
 Other known or anticipated adjustments included (i.e. new BU Academic Excellence Scholarship program approved by
the COT in November 2014)
Transfers:
 Full borrowing cost included for E&G share of steam plant upgrade ($278K) and E&G Share of New Res HallUniversity Mailroom ($51K)
 Continuation of $1.0MM plant transfer that was restored in FY 2015-16
12
FY 2016-17 (Request Year)
E&G Budget Projection
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
FY 2016-2017 (Current Year)
$
$
Total Revenue/Sources
$
E&G Expenditures and Transfers
Compensation Summary:
Salaries and Wages
Benefits
Subtotal, Compensation
$
90,764,410
17,126,701
107,891,111
33,823,642
4,808,452
1,317,571
147,840,776
$
71,375,851
40,021,221
111,397,072
Services and Supplies 1
Capital Expenditures
Transfers
Total Expenditures and Transfers
$
33,106,029
1,882,975
3,882,810
150,268,886
Revenue/Sources less Expenditures/Transfers
$
(2,428,110)
1
Includes student financial aid (non-employee waivers and institutional aid) and utilities
Unbalanced; Projected deficit is in
the E&G General Fund; Special
Programs/Self-Supporting E&G
funds are balanced
13
FY 2016-17 (Request Year) Salary and Benefit Highlights
FY 2016-17 Salary and Benefit Cost Drivers
Mandated Salary/Benefit Increases
 Overall increase, inclusive of $3.7MM in projected salary
and benefit savings/turnover, from prior year = $3.1MM
(budget includes $382K planned use of carryforward fund
balance)
Salaries
APSCUF
AFSCME
 Majority of increase attributed to residual impact of FY 2015-16
Nonrepresented
mid-year pay increases, the restoration of 8 faculty and 2 AFSCME SCUPA
positions that were frozen in FY 2015-16, and projected increases in
Coaches
retirement and employee/annuitant hospitalization rates (overall,
SPFPA
FY 2016-17 projected benefits increases are less than FY 2015-16
increases)
OPEIU
 Increase of 9 FTE in budgeted positions (restoration of 8 faculty
positions and 2 half-time AFSCME positions)
FY 2016-17 Salary/Benefit Budget Assumption Increases Highlights:
Fiscal Impact (Steps/GPI)
0%
0%
0%
0%
0%
0.17%
0%
Benefits
Healthcare-PEBTF Plan (AFSCME, SCUPA)
Healthcare-HMO/PPO (APSCUF, Non-rep, OPEIU, SPFPA, Coaches)
Annuitant Hospitalization-AFSCME
Annuitant Hospitalization-Faculty, Non-rep, SCUPA, Coaches
Retirement:
SERS (Class AA (vast majority of employees)
PSERS
% Increase
0.00%
6.0%/6.0%
0.00%
6.00%
20.47%
14.90%
14
FY 2016-17 (Request Year) E&G Budget Projection
Revenue/Sources Summary
Use of Carryforward Fund
Balance; $1,317,571 ; 1%
All Other Revenue;
$4,808,452 ; 3%
State Appropriation;
$33,823,642 ; 23%
Total Revenue/Sources = $147,840,776
Tuition and Fees; $107,891,111 ;
73%
Tuition and Fees
State Appropriation
All Other Revenue
Use of Carryforward Fund Balance
15
FY 2016-17 (Request Year) E&G Budget Projection
Planned Use of Carryforward Fund Balance Detail
Capital ; $99,641 ; 8%
Salaries and Benefits; $381,500 ;
29%
Total Planned Use of Carryforward
Fund Balance = $1,317,571
Services and Supplies; $836,430 ;
63%
Salaries and Benefits
Services and Supplies
Capital
16
FY 2016-17 (Request Year) E&G Budget Projection
Expenditures and Transfers Summary
Capital ; $1,882,975 ; 1%
Transfers; $3,882,810 ; 3%
Services and Supplies;
$33,106,029 ; 22%
Total Expenditures and Transfers =
$150,268,886
Salaries and Benefits;
$111,397,072 ; 74%
Salaries and Benefits
Services and Supplies
Capital
Transfers
17
Additional Considerations
FY 2016-17 (Request Year) E&G Budget Projection
FY 2016-17 (Request Year) Projected Deficit-E&G General Fund
0% Increase in State Appropriation (FY 2015-16 and 2016-17)-Base
0% Increase in State Appropriation-Performance Funding (Award Consistent with 2014-15)
Deferral of Per-Credit Tuition Pricing Pilot (net)-Flat Rate Structure; No Tuition Increase in 2016-17
3% Tuition Increase (Flat Rate Structure)
$ (2,428,110)
(1,056,916)
(87,224)
(5,497,743)
2,293,027
Salary Adjustments-All Bargaining Units 1
Estimated Potential FY 2016-17 (Request Year) Projected Deficit-E&G General Fund
(1,938,719)
$ (8,715,685)
1
Step, top step payout (July 2016-AFSCME, SCUPA, SPFPA, OPEIU; August 2016 APSCUF); 2.5% merit pool (Coaches
and Non-represented). For illustrative purposes only. Scenario does not reflect the bargaining position of either
side of the negotiating parties.
18
June 30, 2015
Unrestricted E&G Plant Fund-Fund Balance Detail
6/30/15 Unrestricted Net Assets Designated for E&G Plant Activities (Net of Commitments-$7,185,212 1)
Maintenance and Repair
341,977
Capital Projects:
Waller Expansion
Relocate Phone Switch/Computing Backup/Police to Andruss Library-Equipment
Other
Total Capital Projects
1
$
$
12,000,000
1,943,456
635,421
14,578,877
Contingency Reserve
$
1,898,631
Total Designated for E&G Plant Activities
$
16,819,485
Pedestrian bridge, electrical distribution, steam plant, university mailroom relocation, Hartline emergency
generator, McCormick vivarium, and Andruss Library extension (phone/computing backup) projects
19
E&G Budget Summary-FY 2014-15 Through FY 2016-17
Educational and General Budget
Revenue/Sources
Tuition
Fees
1
State Appropriation
Transition Funds
All Other Revenue
2
Planned Use of Carryforward
Total Revenue/Sources
FY 2014/15
$79,734,333
16,092,119
32,968,555
140,000
5,488,648
5,553,430
$139,977,085
FY 2015/16
$81,433,177
17,144,629
33,962,915
0
4,808,452
9,526,007
$146,875,180
Expenditures and Transfers
Compensation Summary:
Salaries and Wages
Benefits
Subtotal, Compensation
Student Financial Aid
Utilities
Other Services and Supplies
Subtotal, All Services and Supplies
Capital Expenditures and Transfers
Total Expenditures and Transfers
$70,856,412
32,866,398
$103,722,810
2,591,957
2,420,569
19,676,043
$24,688,569
6,817,645
$135,229,024
$70,920,211
37,339,691
$108,259,902
3,019,286
2,529,333
25,786,298
$31,334,917
7,280,361
$146,875,180
$4,748,061
$0
Revenue/Sources Less
Expenditures/Transfers
Percent
Change
2.1%
6.5%
3.0%
-100.0%
-12.4%
71.5%
4.9%
0.1%
13.6%
4.4%
16.5%
4.5%
31.1%
6.8%
8.6%
FY 2016/17
$90,764,410
17,126,701
33,823,642
0
4,808,452
1,317,571
$147,840,776
$71,375,851
40,021,221
$111,397,072
7,003,116
2,616,788
23,486,125
$33,106,029
5,765,785
$150,268,886
Percent
Change
11.5%
-0.1%
-0.4%
n/a
0.0%
-86.2%
0.7%
0.6%
7.2%
2.9%
131.9%
3.5%
-8.9%
-20.8%
2.3%
($2,428,110)
FY 2015/16 and 2016/17 figures are estimates. FY 2015/16 state appropriation, including performance funding, has not yet been
finalized.
1
2 FY
2015/16 includes $3,571,465 to balance the E&G General Fund budget and $5,954,542 planned use of carryforward for various
initiatives; $9,526,007 total; FY 2016/17 includes only planned use of carryforward for various initiatives; $1,317,571 total.
20
E&G Budget Summary-FY 2014-15 Through FY 2016-17
Annualized FTE Enrollment
In-State Undergraduate
Out-of-State Undergraduate
In-State Graduate
Out-of-State Graduate
Total FTE Enrollment
FY 2014/15
7,923.93
988.40
482.50
76.50
9,471.33
FY 2015/16
7,830.98
970.03
477.72
81.79
9,360.52
Percent
Change
-1.2%
-1.9%
-1.0%
6.9%
-1.2%
FY 2014/15
502.50
322.64
98.12
57.63
54.77
1,035.66
FY 2015/16
477.75
321.14
101.12
59.63
54.77
1,014.41
Change
(24.75)
(1.50)
3.00
2.00
0.00
(21.25)
FY 2016/17
7,694.90
951.54
478.70
80.74
9,205.88
Percent
Change
-1.7%
-1.9%
0.2%
-1.3%
-1.7%
FY 2016/17
485.75
322.14
101.12
59.63
54.77
1,023.41
Change
8.00
1.00
0.00
0.00
0.00
9.00
E&G FTE of Budgeted Positions
Faculty
AFSCME
Nonrepresented
SCUPA
All Other
Total FTE of Budgeted Positions
21
Key Ongoing Challenges
 Enrollment-new and continuing
 Increases in fixed personnel costs (salaries and benefits;
hospitalization, retirement, etc.)
 Funding for facilities renewal
 Implementation of per-credit tuition pricing pilot (FY 2016-17)
22
Discussion
23