Town Hall Meeting:
Development of Next Two-Year Budget
and Strategic Initiatives Implementation
(FY2010 and FY2011)
January 21, 2009
Presented by:
Scott Bass, Provost
and
Don Myers, Vice President of Finance
University Budget Committee Members
(FY2010-11)
Co-chairs
Scott Bass
Don Myers
Members
John Douglass
Stacy Snelling
Jim Girard
Janice Flug
Khalid Khalid
Eric Goldstein
Alexis Bawden
Kativa Parker
Gail Hanson
Resource Persons
Nana An
Vi Ettle
Karen Froslid-Jones
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INTRODUCTION
 General environment
 AU strategic planning
 AU budget planning
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Freshmen Admissions Statistics
Fall 2009
1/21/08
1/21/09
% Change
Applications
15,132
14,667
(3.1%)
Early Decision
Applications
385
433
12.5%
Early Decision Admits
301
315
4.7%
Source: Office of Enrollment
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TIME TABLE
December 1, 2008
President issues call to the provost and vice presidents for
development of strategic objectives, action steps and budget
proposals.
December 2 – 19,
2008
•Provost and vice presidents develop an initial set of universitywide objectives and action steps, priced and prioritized;
•The University Budget Committee (UBC) begins construction of
enrollment and revenue models and conducts outreach, including
town meeting(s);
•The Strategic Planning Steering Committee (SPSC) requests
community comment and input on existing inventory of suggested
action steps;
•The President’s Council and SPSC review and discuss possible
action steps for the first two-year phase of plan implementation.
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TIME TABLE (continued)
December 20, 2008
– January 5, 2009
•Provost and vice presidents refine objectives, action steps for
each goal, prioritized and priced;
•President meets with Provost and vice presidents individually to
review objectives, action steps and proposed budgets;
•Provost and vice presidents submit budget proposals,
incorporating prioritized action steps to the President.
January 5 – 23,
2009
•President reviews objectives and action steps and other
elements of proposed budgets;
•President sends a preliminary summary of strategic plan action
steps to the community for input (Jan. 16);
•President transmits proposed budgets to Budget Office and
UBC for further processing and deliberation;
•UBC continues deliberations and outreach.
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TIME TABLE (continued)
January 24 –
•Faculty Senate issues recommendations on the two-year budget
February 11, 2009 to the Provost;
•UBC develops proposed budget and transmit to President for
review;
•President formulates strategic plan objectives, action steps and
final budget for the next two years for submission to the Board.
February 26 – 27,
2009
Board of Trustees approves the strategic plan objectives, action
steps and the FY2010-11 budget.
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TIME TABLE (continued)
March, 2009
•
President communicates final versions of objectives, action
steps and budget to the campus community;
• President communicates budget allocations to the provost and
vice presidents.
May 1, 2009
New fiscal year begins.
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Campus Constituencies
•
Strategic Planning Steering Committee
•
Faculty Senate
•
Student Government
•
Graduate Leadership Council
•
Student Bar Association
•
Staff Council
Or e-mail:
AUBudget@american.edu
Strategicplan@american.edu
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TUITION AND OTHER PRICING
Summer
Market competitive particularly graduate
level
Undergraduate
4.5% - 6.5%
Graduate
4.5% - 6.5%
MBA and Business
Graduate
Proposed at 3%
Law
4.5% - 6.5%
Distance Learning in
Summer
$2,400 per course
Residence Halls
4.5% - 6.5%
Technology Fee (per
semester)
Full-time: $95 to $120
Parking Fee
Same as salary pool increase
Part-time: $30 to $40
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ENROLLMENT MODELING
Summer
Based on Summer 2008 actual level
Undergraduate
1,375 freshmen; 350 transfers; 4,372 returning
AU Abroad
350 – 360 for fall; 280 for spring
Graduate
Steady state as FY2009 budget
Washington
Semester
300 credit; 115 international; 100 mentorship
students
Nondegree and
Institutes
Steady state as FY2009 budget
Law
1,185 full-time; 3,000 part-time credit hours
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BUDGET MODELING
Salary Pool
3% in September 2009 and 2010 pending market
conditions
Benefits
Health insurance rate @10%;
Auto-Enroll 403(b) Plan effective May 2009
Minimum wage increase to $8.25/hour
Fed/D.C. Regulations
Financial Safeguards
Facilities
Tuition management: 1.5% of tuition and fee;
Quasi-endowment: 2% of operating budget;
CRDM (Capital Renewal and Deferred
Maintenance);
Pre-funding salary increase;
PC Replacement
New SIS building operations & CRDM;
Facilities Modernizations;
Furnishings & Equipment;
Utilities
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IMPLEMENTATION OF STRATEGIC PLAN INITIATIVES
Please see President Kerwin’s summary
of the Strategic Plan objectives and
action plans for the next two years.
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