UW-Platteville Convocation
Robert Cramer
Vi c e C h a n c e l l o r
August 2012
h t t p : / / w w w. u w p l a t t . e d u / b u d g e t / p r e s e n t a t i o n s . h t m l
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Financial Results 2011-12
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Budget Definitions
 General Purpose Revenue (GPR) – includes general
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funding, specific purpose funding, and earmarked funding
from the state, primarily from state sales and income taxes
Program Revenue (PR) – includes tuition, auxiliaries, and
segregated fees, as revenues received for services or from
users
Federal Revenue (PR-F) – includes federal grants, financial
aid, direct loans, as revenues from a federal agency
Segregated Funds (SEG) – includes transportation fund
and other separate state accounts, credited by law to a
specific state fund
Gifts and Grants – includes revenues from the Foundation,
non federal grants
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Preliminary Ending Financial Position
All Funds Summary (Cash Basis)
 Beginning Cash
$ 23,128,452
 Total Revenue
$127,981,774
 Total Expenses
$126,913,276
 Net Income
$ 1,068,498

Excluding direct student loan amounts
 Closing Balance
$ 24,196,950
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Select Fund Balances
 Fund 102
$4,426,218
(General operations, tuition revenue, base of $47 million)
 Fund 123
$4,001,400
(Debt service, $4 M base)
 Fund 128
$4,096,650
(Dining, housing, parking, base of $25 million)
 Fund 131
$8,474,838
(DLC, School of Ed Cost Recovery, TSI, base of $15 million)
 Fund 136
$1,693,089
(Similar to 128, HTCP, camps & conferences, base of $3.7
million)
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New Budget Tool – Carry Overs
Carry Over Balances by
College/Division
Chancellor & Diversity
Provost
Administrative Services
Graduate Studies & Library
Student Affairs
Advancement/Development
Admissions & Enrollment Services
LAE
BILSA
EMS
Budget Lapse
Grand Total Carryover***
15,487.00
109,389.00
189,992.00
40,518.00
22,800.00
153,796.00
48,262.00
40,212.00
171,683.00
699,780.00
312,841.00
1,804,760.00
***Excludes accounts that automatically carryover (i.e. Fund 128, 136, some 131)
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Financial Health Measures
 Financial Metrics
 Expense Ratio – the annual expenses divided by annual revenue
– less than one means that all of the current year’s income was
not spent
 Composite Financial Index – four financial ratios, weighted and
combined into one, with values between -4 and 10 that measure
the overall financial health of an institution
 Primary Reserve Ratio – expendable net assets divided by
annual expenses – measures how long the institution could rely
on reserves to meet operational costs
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Expense Ratio – Spending / Revenue
1.1000
1.0000
1.011
0.992
0.9000
2010-11
2011-12 (PRELIM)
Expense Ratio is an indication of the University’s ability to cover the expenses endured by
cash inflow.
(less than 1.0 is desirable)
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Composite Financial Index
Combines 4 weighted ratios to provide a snapshot of
overall financial health of the University
1)
Primary Reserve Ratio: Are resources sufficient and flexible
enough to support the mission?
2)
Net Operating Revenue Ratio: Do operating results indicate
the institution is living with available resources?
3)
Return on Net Assets Ratio: Does asset performance and
management support the strategic direction?
4)
Viability Ratio: Are resources, including debt, managed
strategically to advance the mission?
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CFI Trend and Components
CFI Trend with Benchmark
3.5
3
HLC Benchmark = 3.00
0.5
0.37
2.5
2
1.81
Viabililty Ratio
0.92
Return on Net Assets Ratio
0.42
1.5
0.32
1
0.01
0.5
0.97
0.66
0.38
0.7
0.75
0.47
0.45
0
0.06
0.88
0.84
2007
2008
Primary Reserve Ratio
-0.08
-0.1
0
Net Operating Revenue Ratio
2009
2010
2011
-0.5
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Primary Reserve Ratio
0.45
0.4
0.35
0.3
0.25
0.2
2007
2008
2009
Primary Reserve Ratio
2010
2011
HLC Benchmark
Computed by comparing expendable net assets, including those invested in plant, to
total expenses. Results represent the fraction of a year, showing how long the
University could function without income.
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Cost Per Student FTE
Total Cost per Student FTE
$8,500.00
$8,000.00
$8,170.20
$8,086.92
$8,144.59
$7,865.51
$7,000.00
$8,096.13
$7,500.00
2009-10
2010-11
2011-12
$6,500.00
$6,000.00
2007-08
2008-09
Definition: Fund 102 & 131 (less Distance Learning) divided by number
of full-time equivalent students
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State Funds / Resident FTE
$3,000.00
2009-10
2010-11
$4,296.98
$4,000.00
$5,189.82
$5,000.00
$5,309.41
$5,758.56
$6,000.00
$5,563.45
Per Resident Student Amount
$7,000.00
$2,000.00
$1,000.00
$2007-08
2008-09
2011-12
Annual Average: $5,224
Definition: All GPR Funds Expenses / Resident FTE
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2001-02 Budget
Final 2001-2002 UW-Platteville Budget
$73.6 Million
State
funding of
40%
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2011-12 Budget - $160.4 million All Funds
Auxiliary Enterprises
32,967,057
20%
Gifts and Grants
1,216,604
1%
Extension
591,846
0%
General Purpose Tax Dollars
17,013,631
11%
Specific Purpose Tax Dollars
10,913,119
7%
State
Funding
of 18%
Tuition
48,544,731
30%
Federal
49,155,710
31%
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2012-13 Budget
Final 2012-2013 UW-Platteville Budget
$172.6 Million (all funds)
State Funding
of 17%
Auxiliary
Enterprises
40,242,335
32%
Final 2012-2013 UW-Platteville Budget
$126.1 Million (excluding federal aid)
Extension
616,185
1%
General
Purpose Tax
Dollars
17,004,951
13%
Gifts and
Grants
1,314,900
1%
Federal
1,646,700
1%
State
Funding
of 22%
Specific
Purpose Tax
Dollars
11,452,271
9%
Tuition
53,804,157
43%
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Enrollment and Finances
 Total enrollment is approaching 7,700 students
this year (1,650 new freshmen)
 TSI enrollment approaching 1,400 students with
revenues of $13.5 million (510 new students)
 Registrations for online programs are now over
2,900
 UW-Platteville is now a tuition-driven institution $53 million this year (almost twice the amount
provided by the state)
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Looking Forward
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Key Challenges
 Regulations and State / Federal Oversight
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Continue
Slow Economic Growth Continues
Pressure on State Funding and Tuition
Disruptions From New Education Models
Demographic Changes
Learner Expectations
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Regulatory Environment
 Flexibility provided in 2011-13 biennial budget
turns out to be modest and slow to implement
 Modest recommendations from the statewide
UW System Restructuring Task Force
 Federal regulations will expand following
Penn State and the focus on student debt and
tuition
 Universities create own regulatory
environment internally as pressures mount
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Projected US and Global Economic Growth Rates
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
-1.0
United
States
EU-15
Real GDP Growth 2012
Japan
China
Real GDP Growth 2013-2016
India
Latin
America
World
Real GDP Growth 2017-2025
Source: The Conference Board Global Economic Outlook 2012
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New Educational Models
 Disruptions continue and new educational
models will be tried
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UDACITY, Coursera, and other MOOCS (massive open
online courses)
UW System Flexible Degree Program
“Flipping” the Classroom
 Interesting Description of the Future -
http://epic2020.org/
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Continuing Demographic Changes
 The number of high school graduates will
continue to change by region
 Nontraditional students will be a larger
percentage of students in higher education
 Hispanic students represent the fastest
growing group of high school graduates
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Projected High School Graduates by Region
South
Northeast
2020-21
Midwest
West
2008-09
-
200,000
400,000
600,000
800,000
Source: The College of 2020: Students
Chronicle Research Services
1,000,000
1,200,000
1,400,000
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Growing Number of Nontraditional Students
2017
Over 29 years old
25-29 years old
18-24 years old
2009
-
2,000
4,000
6,000
8,000
10,000
Source: The College of 2020: Students
Chronicle Research Services
12,000
14,000
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Changing Ethnic Make-up of High School Graduates
White non-Hispanic
Hispanic
2021-22
Black non-Hispanic
2010-11
Asian/Pacific Islander
American Indian/Alaska Native
0%
10%
20%
30%
40%
Source: The College of 2020: Students
Chronicle Research Services
50%
60%
70%
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Learner Expectations
 Bring Your Own Device World (BYOD)
 Anytime Anywhere Access to Materials
 eBooks coming to a high school near you
 Khan Academy has content for K-12
students
 Quick feedback via learning management
systems such as D2L
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Opportunities to Control Our Own Destiny
 Acknowledge the brutal reality of
the situation and move forward:
 Strategic
Planning
 Expanding Our Sources of Revenue
 Controlling Existing Costs
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Strategic Planning
 Draft plan presented in April and May
 Steering Committee is updating drafts based on
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feedback
Additional sessions in August and September
including offer to meet with every department
Campus forums in September and October
Finalize plan in November
Details at http://www.uwplatt.edu/planning/
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Strategic Planning (continued)
 Proposing a new mission, vision and four
strategic priorities
 Ensure plan leads to action through a
steering committee that connects planning
with budgets
 Initiate a review of how we need to budget
so that we allocate funds based on the plan
and not past practices
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DRAFT Strategic Priorities
 Provide a Distinctive Education
 Foster a Community of
Achievement and Respect
 Control Our Own Destiny
 Enrich the Tri-State Region
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Strategic Planning Steering Committee
 Robert Cramer, Vice Chancellor
 Annie Kinwa-Muzinga,
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for Administrative Services –
Executive Sponsor
Donna Anderson, Academic Staff
Wendy Brooke, College of
BILSA
Dennis Cooley, Assistant
Chancellor for University
Development
Dawn Drake, Director of
Distance Education
Melissa Gormley, College of LAE
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College of BILSA
Mittie Nimocks, Provost
Kassie Popp, Student Senate
David Schuler, College of
LAE
Yan Shi, College of EMS
Becky Troy, Classified Staff
Angela Udelhofen, Assistant
Chancellor for Admissions
Joanne Wilson, Interim
Assistant Chancellor for
Student Affairs
Timothy Zauche, College of
EMS
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Expanding Our Sources of Revenue
 Targeted growth through enrollment
management
 Identifying new opportunities and
markets
 Leveraging our strengths with new
partners
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Controlling Existing Costs
 Huron review of information technology
and classroom management
 Energy efficiency audits
 Partnering with the Real Estate
Foundation
 Business Process Improvements to free
up time
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Conclusion
 UW-Platteville cannot stand still
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