Spring 2014 Budget Update
March 2014
Agenda
• Current Budget Status
• Discussion Items
• Proposed Auxiliary Rates
2
Total Price of Attendance
Total Price of Attendance
30,000
25,000
20,000
15,000
10,000
5,000
2012/2013
2013/2014
Wisconsin Resident
2014/2015
2015/2016
Minnesota Resident
2016/2017
Non-Resident
2017/2018
2018/2019
Tri-State Initiative
3
Total Price of Attendance Detail
Total Price of Attendance
2012/2013
2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
2018/2019
Wisconsin Resident
Tuition
Student Fees
Standard Double Room
Standard Meal Plan (175 meals)
Total Estimated Price of Attendance
% Increase
6,422
1,039
3,520
2,920
13,901
5.7%
6,422
1,066
3,700
3,064
14,252
2.5%
6,422
1,096
3,890
3,160
14,568
2.2%
6,551
1,104
4,090
3,260
15,005
3.0%
6,682
1,212
4,300
3,360
15,554
3.7%
6,815
1,305
4,430
3,470
16,020
3.0%
6,951
1,310
4,570
3,580
16,411
2.4%
Minnesota Resident
Tuition
Student Fees
Standard Double Room
Standard Meal Plan (175 meals)
Total Estimated Price of Attendance
% Increase
6,846
1,039
3,520
2,920
14,325
5.6%
6,846
1,066
3,700
3,064
14,676
2.4%
6,846
1,096
3,890
3,160
14,992
2.2%
6,983
1,104
4,090
3,260
15,437
3.0%
7,122
1,212
4,300
3,360
15,994
3.6%
7,265
1,305
4,430
3,470
16,470
3.0%
7,410
1,310
4,570
3,580
16,870
2.4%
Non-Resident *
Tuition
Student Fees
Standard Double Room
Standard Meal Plan (175 meals)
Total Estimated Price of Attendance
% Increase
15,805
1,039
3,520
2,920
23,284
5.6%
15,805
1,066
3,700
3,064
23,635
1.5%
15,805
1,096
3,890
3,160
23,951
1.3%
16,121
1,104
4,090
3,260
24,575
2.6%
16,443
1,212
4,300
3,360
25,315
3.0%
16,772
1,305
4,430
3,470
25,977
2.6%
17,108
1,310
4,570
3,580
26,568
2.3%
Tri-State Initiative *
Tuition
Student Fees
Standard Double Room
Standard Meal Plan (175 meals)
Total Estimated Price of Attendance
% Increase
10,422
1,039
3,520
2,920
17,901
4.3%
10,422
1,066
3,700
3,064
18,252
2.0%
10,422
1,096
3,890
3,160
18,568
1.7%
10,631
1,104
4,090
3,260
19,085
2.8%
10,843
1,212
4,300
3,360
19,715
3.3%
11,060
1,305
4,430
3,470
20,265
2.8%
11,281
1,310
4,570
3,580
20,741
2.3%
* Tuition increases in 2014-15 for Non-Resident and TSI students have not been determined. State statutes dictate that Wisconsin Resident, and
therefore Minnesota Resident tuition, be frozen for 2014-15 at the 2012-13 tuition rate.
Key Assumptions:
Tuition increase 2% annually following FY2014-15
Planned small increases in Textbook Rental fees, PAC and Health & Counseling Services seg fees for FY2016-19
Room rates increased by 5% annually for FY2015-17 and 3% annually for FY2018-19
Meal plan rates increased by 3% annually thereafter through FY2018-19
4
FY2012-13 Closing Balances
All Funds Summary (Cash Basis)
Beginning Cash
$ 24,495,297
Total Revenue
$149,680,085
Total Expenses
$145,363,000
Net Income
$ 4,317,085
(July 1, 2012)
(Excluding direct student loan amounts)
Closing Balance
$ 28,812,382
(June 30, 2013)
5
Board of Regents Policy
Regarding Cash Balances
• Four categories – Tuition, Auxiliaries, General
Operations, and Other
• Minimum of 10% of current year expenses to
be held as UNPLANNED Reserves for Tuition &
Auxiliaries
• Max of 15% of total current year expenses to
be held by each campus
• This leaves ONLY 5% of current year
expenses for planned spending
6
Budget Forecast Model
Projected Closing Balances
Current Scenario
As of 2/10/14
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
7,144,380
5,122,383
3,054,727
533,403
(2,399,776)
(5,719,645)
Above scenario assumes:
$3M base on-going reduction;
Additional $1.1M and approx. 14 positions are reduced due to lower
enrollment projections in 14-15; Another $425,300 & 5 positions in 15-16
Assumes 0% tuition increase in 2014-15, 2% thereafter
Assumes no continuing TSI incentive grants ($530,000 impact)
UW-Platteville’s Reserve Goal per Board of Regents 10% recommendation:
7
Tuition Revenue
Tuition Target for Pooled Revenue=$34,264,494
Variance
Original Estimate 5.2013
$36,179,000
$1,914,000
Fall 2013
$35,470,000
$1,200,000
Spring 2014
$35,835,000
$1,571,000
TSI Estimate 5.2013
$15,320,000
-
Fall 2013
$14,310,000
-$1,010,000
Spring 2014
$14,285,000
-$1,035,000
Note – these figures exclude distance learning, study abroad, and school
of education cost recovery students
8
Enrollment
Original
Fall
Billing
FTE
Fall 2013
Billing
FTE
Original
Spring
Billing FTE
Revised
Spring
2014
Billing FTE
Spring
2014
Billing FTE
5,510
5,515
4,960
4,965
5,012
Undergrad NonRes
180
155
160
140
140
Graduate Resident
95
74
85
65
70
Graduate NonRes
25
18
25
15
17
Subtotal Pooled
Enrollment
5,810
5,762
5,230
5,185
5,239
TSI Enrollment
1,580
1,482
1,420
1,335
1,324
Total Pooled & TSI
Enrollment
7,390
7,244
6,650
6,520
6,563
Undergrad Resident
9
Enrollment Projections
Student Category
Undergraduate (non TSI)
Graduate
TSI
FY2014
5,670
90
1,480
7,240
FY2015
5,665
90
1,510
7,265
FY2016
5,665
90
1,490
7,245
FY2017
5,665
90
1,500
7,255
FY2018
5,665
90
1,495
7,250
FY2019
5,665
90
1,510
7,265
10
TSI Incentive Grants
Discussion: We need to address the TSI incentive grants
for continuing students.
• Are we going to eliminate the continuing incentive
grant of $500/year as we had planned?
• The TSI Budget model assumes FY2013-14 is the final
year of those grants.
11
Summary of Current & Future
Budget Reductions
This table summarizes the current base budget reduction, the base TSI
reduction built into the budget model beginning in FY15, and the possible
future base budget reductions that would be necessary to meet the Board of
Regent’s 10% reserve policy.
Base Reductions
Current $3M
TSI Reduction
Possible Future Reductions to
meet 10% reserve policy
Grand Total
FY14
3,000,000
-
FY15
3,000,000
1,054,100
$ 3,000,000
$ 4,054,100
FY16
3,000,000
1,479,400
FY17
3,000,000
1,448,900
FY18
3,000,000
1,415,000
FY19
3,000,000
1,215,900
2,000,000
2,500,000
2,900,000
3,300,000
$ 6,479,400 $ 6,948,900 $ 7,315,000 $ 7,515,900
12
Current Budget Reductions
Division
Administrative Services
Admissions & Fin. Aid
Advancement
BILSA
Diversity & Inclusion
Chancellor
EMS
LAE
Provost
Base
513,085
25,000
51,631
131,228
265,323
986,267
One-Time
168,485
172,032
98,316
335,932
122,817
577,777
390,117
195,000
2,060,476
Total
681,570
172,032
98,316
360,932
51,631
122,817
577,777
521,345
460,323
3,046,743
13
Projected Additional
Budget Reductions
Gap to Close for $6.1 million reserve in core financial model
$ 2,000,000 $ 2,500,000 $ 2,900,000 $ 3,300,000
Division – ALL FUNDS
Chief Diversity Office
Chancellor
BILSA
LAE
EMS
Provost
Administrative Services
University Advancement
Admissions and Fin Aid
University Wide
Grand Total
$
$
$
$
$
$
$
$
$
$
$
Total
3,453,945
3,263,372
7,231,279
10,143,335
11,542,728
17,894,224
37,169,430
1,806,072
3,813,349
15,092,552
111,410,286
Total With Fringe
Benefits
% of Total
$
3,786,591
3.10%
$
3,497,272
2.93%
$
7,864,929
6.49%
$
11,363,535
9.10%
$
12,643,063
10.36%
$
21,070,148
16.06%
$
40,303,730
33.36%
$
2,155,172
1.62%
$
4,106,949
3.42%
$
28,502,437
13.55%
$
135,293,826 100.00%
% of Total
with FB
2.80%
2.58%
5.81%
8.40%
9.34%
15.57%
29.79%
1.59%
3.04%
21.07%
100.00%
$
$
$
$
$
$
$
$
$
$
$
FY16
55,976
51,699
116,264
167,983
186,898
311,472
595,796
31,859
60,712
421,341
2,000,000
$
$
$
$
$
$
$
$
$
$
$
FY17
69,970
64,624
145,331
209,979
233,622
389,341
744,744
39,824
75,889
526,677
2,500,000
$
$
$
$
$
$
$
$
$
$
$
FY18
81,165
74,963
168,583
243,575
271,002
451,635
863,904
46,196
88,032
610,945
2,900,000
$
$
$
$
$
$
$
$
$
$
$
FY19
92,360
85,303
191,836
277,172
308,381
513,930
983,063
52,568
100,174
695,213
3,300,000
Notes:
• The budget for Admissions and Fin Aid excludes Federal financial
aid.
• This is just one example of how future budget reductions could be
allocated out to the divisions.
14
Plan for TSI $1M Reduction
The budget model currently includes an ongoing
reduction of just over $1 Million from the TSI budget
for 2014-15.
Options A-C: Reduce the base budgets going into FY2014-15.
• Option A: Based on Salary & Fringe as a % of Total Salary & Fringe
• Option B: Based on Salary, Fringe & Supplies as a % of Total Budget
• Option C: Based on a % of Salary, Fringe & Supplies – weighted more
heavily towards non-college budgets
(See the following slide for $ impact)
Option D: Wait until the end of Q1 in FY2014-15 and take cash from available
TSI savings as a one-time reduction.
15
Plan for TSI $1M Reduction:
Options A-C
Options A-C: Reduce the base budgets going into FY201415.
Reduction Target: $1,054,100
Option A:
Option B:
Based on Salary & Fringes Based on Total Budget
Division
Administrative Services
Admissions and Fin Aid
BILSA
Chancellor
Chief Diversity Office
EMS
LAE
Provost
University Advancement
University Wide
Grand Total
FTE
18.94
11.94
24.47
2.11
5.22
41.59
45.86
33.87
7.00
191.00
FY15 Salary &
Fringe Bdgt
1,174,920
730,898
1,831,720
142,367
347,188
3,302,370
3,241,036
2,349,700
468,824
156,078
13,745,100
FY15
Supply Bdgt
(excluding
Debt Svc)
74,638
130,300
137,764
9,000
10,750
129,800
113,000
80,605
141
685,998
Total
1,249,558
861,198
1,969,484
151,367
357,938
3,432,170
3,354,036
2,430,305
468,824
156,219
14,431,098
% Salary
& Fringe
8.55%
5.32%
13.33%
1.04%
2.53%
24.03%
23.58%
17.09%
3.41%
1.14%
100.00%
Reduction
Amount
90,104
56,052
140,473
10,918
26,626
253,256
248,552
180,196
35,954
11,969
1,054,100
Note: TSI Debt Service was excluded from the budget.
% Total
8.66%
5.97%
13.65%
1.05%
2.48%
23.78%
23.24%
16.84%
3.25%
1.08%
100.00%
Reduction
Amount
91,272
62,905
143,858
11,056
26,145
250,698
244,991
177,518
34,245
11,411
1,054,100
Option C:
Based on weighted %
of Division Budget
Weighted Reduction
%
Amount
8.50%
106,212
8.50%
73,202
6.60%
129,986
8.50%
12,866
8.50%
30,425
6.60%
226,523
6.60%
221,366
8.50%
206,576
8.50%
39,850
8.50%
13,279
1,060,285
16
One-Time Compensation
Increases
Discussion: Do we want to pay out one-time
compensation in the current year to address inequities
using available balances? How much?
One-Time Compensation Payments made in FY2012-13:
Faculty
Instructional Academic Staff
Non-Instructional Academic Staff
Classified Staff - Tier 1
Classified Staff - Tier 2
LTE
Per Person
$1,044
$1,063
$2,171
$1,691
$846
$314
Total w/
Total Salary
Fringes
$224,490 $264,900
45,763
54,000
122,542
144,600
54,702
64,548
$4,915
$452,412
$5,800
$533,848
17
Possible Re-establishment of
Capital/Lab Mod/Classroom Upgrade
Funding
Discussion: Do we want to re-establish a central pool for
funding Capital/Lab Mod/Classroom upgrade requests? If
so, where will the funds come from? How much?
FY13 Amounts:
Lab Mods: $271,321
Capital: $103,560 (each college received $25,000)
18
Budget Management Principles
• Possible Changes:
– Carryover 80/20 (with the possibility for exceptions?)
– Fringe Savings within TSI will be returned to improve the core model
– Position Control: Academic Affairs and Colleges
• Vacancies revert to Dean or Provost.
• New positions will be approved by Dean or Provost, in consultation with the budget
office.
– Position Control: Non Colleges
• Vacancies revert to the Provost.
• New positions will be approved by the Provost, in consultation with the budget office.
– For NEW positions, salary savings do not accrue to departments until the position
is filled.
– Carryover funds that are not spent/encumbered within Q2 will be taken centrally
and reallocated.
– Internal campus loans can be used to fund large purchases to allow
departments/divisions to repay the loan over a period of years rather than saving
funds and carrying them over from year to year to make the large purchases. 19
Proposed Room & Board Rates
2012/2013
2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
2018/2019
3,520
4,428
5,006
3,700
4,650
3,900
4,900
5,300
5,100
5,100
3,890
4,890
4,290
5,290
4,090
5,090
5,570
5,360
6,700
4,090
5,140
4,510
5,510
4,300
5,300
4,620
5,620
5,850
5,630
6,970
4,300
5,400
4,740
5,740
4,520
5,520
4,860
5,860
6,150
5,920
7,260
4,430
5,570
4,890
5,890
4,660
5,660
5,010
6,010
6,340
6,100
7,440
4,570
5,740
5,040
6,040
4,800
5,800
5,170
6,170
6,540
6,290
7,630
8.0%
5.4%
6.3%
4.7%
4.7%
2.9%
2.9%
2,944
2,879
3,162
2,920
2,741
1,947
1,629
1,315
921
2,273
5.0%
3,090
3,008
3,274
3,064
2,850
2,008
1,694
1,340
940
2,363
4.0%
3,190
3,100
3,380
3,160
2,940
2,070
1,750
1,390
970
2,439
3.2%
3,290
3,200
3,490
3,260
3,030
2,140
1,810
1,440
1,000
2,518
3.2%
3,390
3,300
3,600
3,360
3,130
2,210
1,870
1,490
1,030
2,598
3.2%
3,500
3,400
3,710
3,470
3,230
2,280
1,930
1,540
1,070
2,681
3.2%
3,610
3,510
3,830
3,580
3,330
2,350
1,990
1,590
1,110
2,767
3.2%
Proposed Yr %
Residence Halls
Traditional Doubles
Traditional Singles
Renewed Traditional Doubles (Porter)
Renewed Traditional Singles (Porter)
Renewed Traditional Doubles (Melcher)
Renewed Traditional Singles (Melcher)
Elevated Renewed Traditional Doubles (Dobson-FY16)
Elevated Renewed Traditional Singles (Dobson-FY16)
Single Suite-Upperclassmen (Southwest Hall)
Semi-Suite (Bridgeway Commons)
Semi-Suite Singles (Bridgeway Commons)
Average % Increase
5.1%
5.2%
10.0%
8.0%
5.1%
5.1%
31.4%
Meal Plans
19 meals/week
15 meals/week
10 meals/week
14 meals/week+ $50/sern
10 meals/week + $ 100/sern
200 meals/sem + $100/sem
175 meals/sem+$100.00
150 meals/sern + $ 100/sem
110 meals/sem+$125/sem
90 meals/sem+$100/sem
75 meals/sem+$100/sem
50 meals/sem+$75/sem
50 meals/sem
Simple Avg Rate
% Increase vs Prev Simple Avg
3.2%
3.1%
3.2%
3.1%
3.2%
3.1%
3.3%
3.7%
3.2%
20
Proposed Room Rates
21
Proposed Board Rates
22
Proposed Segregated Fees
2012/2013
2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
2018/2019
Stadium/Arena Fac Bond 1 632205
MPSC Bond 632810
WFH Bond1 632605
WFH Bond2 632615
WFH Bond3 632620
30
120
0
50
0
30
120
0
47
0
30
120
0
47
0
30
120
0
47
0
30
120
0
47
85
30
120
0
47
170
30
120
0
47
170
0.00%
0.00%
0.00%
0.00%
0.00%
OPERATIONS
Stadium/Arena Oper 632200
Child Care 632700
ID Systems 612225
Intercoll. Athletics 632400
Muni. Svc. 632800
PAC Oper 632600
Parking 642001
Transportation 642010
MPSC Operations 632000
Student Affairs Programming 632006
Student Health & Counseling 632100
SUFAC Organized Activities 622001
Textbook 632900
Total Seg. Fees
25
10
8
83
18
54
20
30
152
91
106
100
142
25
10
8
83
18
54
20
30
152
93
111
100
165
25
10
8
86
18
58
20
30
152
93
111
100
180
25
10
8
86
18
61
20
30
152
93
123
100
185
25
10
8
86
18
68
20
30
152
93
125
100
195
25
10
8
88
18
74
20
30
152
93
128
100
195
25
10
8
88
18
74
20
30
152
93
130
100
195
0.00%
0.00%
0.00%
3.61%
0.00%
7.41%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
9.09%
1,039
0.97%
1.13%
1,066
2.60%
0.45%
1,088
2.06%
0.78%
1,108
1.84%
1.65%
1,212
9.39%
10.18%
1,308
7.92%
9.44%
1,310
0.15%
0.18%
Proposed Yr %
BONDING
% Increase
% Increase (excluding Textbook Rental)
23
Proposed Segregated Fees
24