President’s Recommended Budget
for
The University of Toledo
Board of Trustees Finance & Audit Committee
May 12, 2014
NOTE: ELEMENTS OF THIS
PRESENTATION ARE SUBJECT TO BOARD
APPROVAL, AND ARE NOT YET FINAL.
The Heart of our Structural Issue
Net Tui on and Fee Revenue per FTE
$11,500
$11,000
$10,500
Growth Rate = - 2.27%
$10,000
$9,500
$9,000
Growth Rate = 4.87%
$8,500
FY10
FY11
FY12
FY13
Growth Rate = - 5.8%
The combination of enrollment
declines, strain on State money,
tuition inflation, and the need to
reinvestment in our infrastructure
is a structural issue that we must
deal with over the next 3 years.
Failure to deal with this would be
poor stewardship on our part.
Remaining Budget Calendar Items
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University Council – April 18
Business Managers – April 23
U. Council Finance & Strategy Subcom. – April 25
Deans and VPs – April 23
President Jacobs – April 30
Board Finance Committee - May 12
Board approval – June 16
FY15 Financial Improvement Target
Our target at the start of the FY15 budget process
was $18M. We have hit this target, via the following:
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•
•
•
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Refined assumptions = $4.5M
Administrative cuts = $6.0M
Main Campus improvements = $2.7M
Health Science Campus improvements = $1.6M
UTMC improvements = $3.3M
Major Assumptions
• SSI increase of 1.8%
• 2.39% increase in undergraduate tuition
• 0% increase in general fee
• 1% increase in graduate / prof tuition (except Law)
• 0% change in enrollment, before new initiatives. Overall
increase is 1%.
• 2% increase in salaries and wages
Areas of Investment
• Salary increases for faculty and staff
• Positions in Engineering, NSM, and Nursing colleges
• $ to stimulate growth in externally funded research and
development of on-line courses
• Additional resources for recruitment of high-ability students
• One World Schoolhouse and Schoolcraft College project
• Investments in patient satisfaction, quality and safety
Risks Contained in the FY15 Budget
• Enrollment
• State Share of Instruction (SSI)
• Outcome of union negotiations
• Funding only half of deferred maintenance
• Healthcare benefits costs
• Healthcare marketplace and ACA
Longer-term Risks
• Demographic trends
• State funding
• Changes in pension liability accounting
• Growth in regulations and compliance
• Pressure on tuition and student debt levels
Incentive Plan
• Externally funded research:
– For incremental externally funded research over
current year levels, we will increase the
percentage of indirect cost recovery (IDC)
returned to the colleges from 30% to 70%.
• On-line class development
– Additional funding will be available for faculty
involved in developing on-line courses and
programs. This will be administered by the
Provosts’ Office, under the auspices of their
current program.
Carry-Forwards
• We will implement a revised program of carry-forwards.
• Reinstate balances from FY10 forward.
• Designated funds in colleges only.
• Plan by college still required, to facilitate cash flow
planning. Plan approved by Dean, Provost, EVP CFO.
• Encouraged for use on capital items
Routine Capital
• State biennial capital bill = $23.7M for UT.
• Routine capital on top of State bill = $18M
– Provost = $4M
– Facilities = $5M
– Info Tech = $3M
– UTMC = $6M
Hiring Process
• RCG will no longer be part of hiring process. RCG will
continue, with a new charge and group makeup.
• Budgeted positions can be filled with Dean / VP approval.
• Positions vacated in year will have 30 day wait period for
re-engineering before they can be posted.
• HRTD will be measured on “time to fill” once a job is
posted
• New positions will require Dean / VP approval, as well as
SLT approval.