Open Forum on the Budget
FY2017 – FY2019
May 4, 2016
Agenda
Higher
Education Environment
Impact
to Ramapo College
Budget
process
Financial
outlook
Higher Education
Environment
Higher Education Environment
 Revenue
decline
 Student
from key sources continuing to
demographics
 Demands
for return on investment from
higher education
 New
business and delivery models and
globalization of education
Revenue from key sources
continuing to decline
 State
appropriations for public institutions
have been steadily declining
 Pressure
from enrollment levels
 Fluctuating
Endowment values and
donor support
Student Demographics
Projected High School Graduates 2015 – 2020
(Northeast)
Northeast
projecting a
7.75% decline
in high school
graduates in
next five years
Student Demographics
Projected High School Graduates 2015 – 2020
(New Jersey)
Over the next
five years,
high school
graduates in
New Jersey
are projected
to decline by
3.5%
Demands for return on
investment from education
 Value
and cost of education
 Employment
 Student
rates after graduation
debt levels
 Graduation
rates and retention
New business and delivery models
and globalization of education
 Alternatives
to traditional degrees
Accelerated programs
Industry accreditations or certifications
 Delivery
of Education
Online programs
Hybrid models
 Globalization
and international enrollment
Enrollments of international students are
increasing
Global foot print of an institution
Impact to Ramapo College
State Support as a Percent of Revenues
21.0%
19.0%
17.0%
15.0%
13.0%
11.0%
9.0%
7.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(proj) (proj)
*State Support and Revenues do not include Employee Benefits
State Support vs. Tuition & Fees
as a Percent of Operating Revenues
55.0%
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
2007
2008
2009
2010
2011
State Support
*State Support and Revenues do not include Employee Benefits
2012
2013
Tuition & Fees
2014
2015
2016
(proj)
New Jersey State Support
FY16 Adj.
State
Appropriation
FY17 Bud Est
FTE Undergrad
(tot weighted)
State Funding
Per Undergrad
FTE
Rowan University
$85,383,000
11,708
7,395
New Jersey City University
$24,154,000
4,735
5,101
The College of New Jersey
$27,177,000
6,610
4,111
William Paterson University
$30,357,000
7,589
4,000
Kean University
$30,469,000
9,327
3,267
Ramapo College
$14,953,000
4,978
3,004
Stockton University
$18,391,000
7,437
2,473
Montclair State University
$35,859,000
14,687
2,442
Sector Average
$33,492,875
8,384
3,974
Source: FY17 State of NJ Detailed Budget book [Does not include support for Employee Benefits]
FY16 Tuition & Fee Comparison
to New Jersey Public Schools
$17,000
$15,466
$15,000
$13,698
$13,000
$12,864
$12,820
$12,365
$11,772
$11,000
$11,581
$11,179
The College Ramapo
Rowan
of New
College of University
Jersey New Jersey
Richard
Stockton
University
William
Paterson
University
Montclair
State
University
Kean
New Jersey
University
City
University
Annualized Enrollment
FY11 – FY19 (Proj)
5,800
5,700
5,600
5,500
5,400
5,300
FY11
FY12
FY13
FY14
Total FTE
FY15
FY16
Undergrad FTE
Annualized enrollment as calculated includes all sessions: Summer, Fall, Winter and Spring
FY17
Proj
FY18
Proj
FY19
Proj
Ramapo Student Indebtedness

Average Ramapo Freshmen – 64% take out
loans averaging $8,542

Ramapo student loan indebtedness for 4
years averages $28,758

In 2014 State of New Jersey average is
$28,318 (source TICAS website)

National Average in 2014 is $28,950
Source: Collegefactual.com, Money Magazine
BUDGET PROCESS
Principles of Budget Development
 Using
resources focused on the Mission of the
College
 The
planned use of resources will not exceed
estimated resources available
 The
College is committed to maintaining
resources in order to sustain overall financial
health
Current Budget Cycle
Step 8
 Assessment and
adjustment of current
budget
Step 7
 President’s State of
the College Address
Step 6
 Units receive
budgets (Jul)
Step 1
 New fiscal year begins (Jul)
 Submit OMB budget request
to State (Nov)
Step 2
 Units submit funding
requests (Jan- Mar)
Step 3
 Cabinet reviews budget
requests
 Draft proforma and
assumptions tested (May)
Step 5
 Board of Trustees approves
budget and tuition & fee
Step 4
increase (Jun)
 Budget Presentation-Open Forum
 Final budget developed for Trustee
review (Jun)
Proposed Budget Cycle
Step 8
 Budget training for unit
directors
 Units assessment and
adjustment of current
budget (FY17)
Step 7
 President’s State of
the College Address
Step 6
 Units receive
budget (Jul)
Step 1
 New fiscal year begins (Jul)
 Submit OMB budget request
to State (Nov)
Step 2
 Budget training for unit
directors
 Budget for units
established by account
for review
 Change requests
submitted through
Adaptive (Jan- Mar)
Step 5
Step 3
 Board of Trustees
 Cabinet reviews budget
approves budget and
 Draft proforma and
tuition and fee increase
Step 4
assumptions tested
(Jun)
 Budget Presentation-Open Forum (May)
 Final budget developed for
Trustee review (Jun)
Next Year’s Budget Cycle




Focus on what is needed in each unit
No more “inflationary” requests, as next year
change requests will be submitted (assumes
increases and decreases)
All new items will be requested with a funding
source in mind
Budgeting is a College-wide process, the Budget
Office is here for support and guidance, but
each unit owns their budget
Where Do Operating Funds Come From?

State support

Appropriations /Employee benefits –
“authorized positions”

Student tuition & fees (net)

Auxiliary services

Fundraising revenues
Sources of Revenues 2017 Est.
Other, 1.0%
Fees,
18.5%
Auxiliary,
21.2%
State
Support,
27.7%
Net Tuition,
31.6%
Expenditures by Category 2017 Est.
Debt Service,
11.3%
Other, 11.1%
Contracted &
Professional,
9.4%
Maintenance &
Cap Improv,
2.1%
Fuel & Utilities,
3.5%
Salaries &
Benefits, 62.6%
Financial Outlook
Current Baseline Budget
Current Key Assumptions:

Base State appropriation flat

Full-time fringe rate at 49.43%

Flat undergraduate enrollments

25% growth in graduate programs

Housing occupancies at 95.5% in fall and
89.7% in spring
Ramapo College - Baseline Scenario
in thousands
E & G Revenues
Auxiliary Services
Total Revenue
E & G Expenditures
Auxiliary Expenditures
Total Expenditures
Deficit
FY2017
FY2018
FY2019
$ 117,689 $ 118,506 $ 120,692
40,513
40,261
40,174
158,202
158,766
160,866
124,971
35,794
160,764
129,002
34,534
163,536
131,728
36,268
167,996
(2,562)
(4,770)
(7,130)
Balancing Measures to Consider




Reserves could be released to decrease
deficit in FY17
Review of SPIF program and budget
requests
Increases to tuition, fees and housing – will
review rates in connection with the current
rate of inflation and the Higher Education
Price Index
Assessment of vacant/open positions
Downside Scenarios
 Further
reduction in State appropriations
 Further
decline in State benefit support
 Decline
 Union
in student enrollments
contract settlement
Financial Outlook
Future Considerations

Affordability
Continue to balance budget
Work to maintain affordability for students

Enrollment
Maintain strong enrollment management efforts
Continue efforts to maintain strong retention

Capital
Continue to address deferred maintenance
Expansion in accordance with the Facilities Master Plan
College Goal:
Financial Sustainability