Western Michigan University: Strong Financially, Weak on Priori9es Howard Bunsis Professor of Accoun9ng, Eastern Michigan University Chair, AAUP Collec9ve Bargaining Congress February 13, 2014 1 Three Areas of Financial Analysis Priori9es of the Administra9on 2 The Future of the State of Michigan and WMU 3 WMU 2013 Revenue Distribu9on Source: WMU Audited Financial Statements Total$2013$Revenue$=$$580$Million$
10%$
8%$
Tui:on$and$Fees$
39%$
5%$
4%$
State$Appropria:on$
State$Capital$Appropria:on$
Auxiliaries$
Grants$and$Contracts$
Pell$Grants$
16%$
GiGs$
2%$
All$Other$
16%$
4 State of Michigan: General Fund + School Aid Fund Revenue Source: House Fiscal Agency, Economic Output and Revenue Es9mates, January 2014 25.0##
•  Amounts in billions •  2014 to 2016 are es9mates 20.0##
15.0##
10.0##
5.0##
0.0##
2008# 2009# 2010# 2011# 2012# 2013#2014*#2015*#2016*#
5 Michigan and Na9onal Unemployment Rates Source: House Fiscal Agency, Average Annual Rate 16.0%$
14.0%$
12.0%$
10.0%$
Michigan$
8.0%$
Na7onal$
6.0%$
4.0%$
0.0%$
1979$
1980$
1981$
1982$
1983$
1984$
1985$
1986$
1987$
1988$
1989$
1990$
1991$
1992$
1993$
1994$
1995$
1996$
1997$
1998$
1999$
2000$
2001$
2002$
2003$
2004$
2005$
2006$
2007$
2008$
2009$
2010$
2011$
2012$
2013$
2014*$
2015*$
2016*$
2.0%$
6 Break-­‐down of Unemployment Rate Source: Bureau of Labor Sta9s9cs, 1/31/2014 16.0%$
14.0%$
12.0%$
Official unemployment rate 10.0%$
8.0%$
MI$Rate$
6.0%$
US$Rate$
4.0%$
2.0%$
0.0%$
U+3$
U+4$
Metric
U13
U14
U15
U16
MI(Rate
8.6%
9.2%
10.1%
15.3%
U+5$
US(Rate
7.4%
7.9%
8.8%
13.8%
U+6$
Definition
Official(Unemployment(Rate
U13(+(discouraged(workers
U14(+(Marginally(attached
U15(+(part(time(workers(who(want(full(time
7 Light Vehicle Sales Source: House Fiscal Agency, Economic Outlook 2013 to 2016 are es9mates 18.0##
16.0##
14.0##
12.0##
10.0##
Import#Sales#
8.0##
Domes8c#Sales#
6.0##
4.0##
2.0##
0.0##
2008# 2009# 2010# 2011# 2012# 2013# 2014# 2015# 2016#
8 State Funding for Higher Educa9on (in millions) Source: Higher Educa9on Briefing, House Fiscal Agency, December 2013; 2015 per Governor’s Proposed Budget, February 2014 2,000&&
1,749&&1,748&&1,754&&
1,800&& 1,734&&
1,612&&1,578&&
1,512&&
1,600&&
1,431&&
1,364&&1,399&&
1,400&&
1,200&&
1,000&&
800&&
600&&
400&&
200&&
0&&
2006& 2007& 2008& 2009& 2010& 2011& 2012& 2013& 2014& 2015&
Changes
Dollar*Change
%*Change
06*to*07 07*to*08 08*to*09 09*to*10 10*to*11 11*to*12 12*to*13 13*to*14 14*to*15 06*to*15
15
(1)
6
(142)
(34)
(214)
35
32
81
(222)
0.9%
<0.1%
0.3%
<8.1%
<2.1%
<13.6%
2.6%
2.3%
5.7%
<12.8%
9 State Funding: Correc9ons vs. Higher Ed Source: Execu9ve Budget 2015-­‐16; Amounts in Millions 2,500##
2,300##
2,100##
1,900##
1,700##
1,500##
1,300##
1,100##
Correc1ons#
Higher#Ed#
900##
700##
20
08
#
20
09
#
20
10
#
20
11
#
20
12
#
20
13
#
20
14
#
20
15
#
500##
10 Higher Ed Funding as % of Total State Revenue 2015&
6.85%&
2014&
6.76%&
2013&
6.72%&
2012&
6.77%&
2011&
7.86%&
2010&
9.16%&
2009&
9.59%&
2008&
0.00%&
8.63%&
2.00%&
4.00%&
6.00%&
8.00%& 10.00%& 12.00%&
11 WMU State Appropria9on Over Time Sources: WMU Audited Financial Statements; House Fiscal Agency; Governor’s Budget for 2015 140.0##
120.0##
100.0##
80.0##
60.0##
40.0##
20.0##
0.0##
2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013# 2014# 2015#
Changes
06*to*07 07*to*08 08*to*09 09*to*10 10*to*11 11*to*12 12*to*13 13*to*14 14*to*15 06*to*15
Dollar*Change (10.7)
22.6
(9.1)
(0.5)
(3.2)
(16.4)
2.3
1.7
5.7
(7.7)
%*Change
<9.7%
22.6%
<7.5%
<0.4%
<2.8% <15.0%
2.5%
1.8%
5.8%
<6.9%
12 WMU Appropria9on: Same Graph, Different Scale 125.0$$
120.0$$
115.0$$
110.0$$
105.0$$
100.0$$
95.0$$
90.0$$
2006$ 2007$ 2008$ 2009$ 2010$ 2011$ 2012$ 2013$ 2014$ 2015$
13 WMU 2013-­‐14 Appropria9on vs. Other Michigan Publics Source: Higher Educa9on Briefing, House Fiscal Agency, December 2013 FY 2013-14 University Operations Grants
$279.1
NOTE: Amounts include performance
funding increases allocated via formula.
$249.5
Millions
$183.9
$97.2
$41.7 $43.5 $45.6 $45.6
$12.2
LSSU
$57.8
$67.3
$73.5
$26.0
$19.9 $22.5
UMF
UMD
SVSU
NMU
MTU
FSU
OU
GVSU
EMU
CMU
WMU
WSU
MSU
UMAA
14 FY 2013-14 University
Performance Funding
State Performance Funding Category
$ Amount
Undergraduate degree completions in Critical Skills Areas
$4.9 million
Total R&D expenditures: “research universities” only
$2.4 million
Comparisons vs. national Carnegie peers
Six-year graduation rate
Total degree completions (undergraduate/graduate)
Institutional support as % of total expenditures)
Total
$14.6 million
combined
$21.9 million
WMU received 1.9% increase in the 2013-­‐14 appropria9on, 7th highest percentage of the 15 Michigan publics House Fiscal Agency: December 2013
Source: Higher Educa1on Briefing, House Fiscal Agency, December 2013 16
15 Fall Headcount Enrollment Source: WMU Office of Ins9tu9onal Research, Fall Enrollment Reports Total Undergraduate and Graduate 30,000&&
24,841&& 24,433&& 24,818&& 24,576&& 25,045&& 25,086&&
24,598&& 24,294&&
25,000&&
20,000&&
15,000&&
10,000&&
5,000&&
The Strategic Plan goal is 26,500; no target date was reported per hgp://
www.wmich.ed
u/strategic/
models/
reports/year1-­‐
end-­‐
report-­‐0715201
3.pdf Fa
ll&
06
&
Fa
ll&
07
&
Fa
ll&
08
&
Fa
ll&
09
&
Fa
ll&
10
&
Fa
ll&
11
&
Fa
ll&
12
&
Fa
ll&
13
&
0&&
16 Fall Headcount Enrollment Same Graph, Different Scale 25,200&&
25,000&&
25,045&&
24,841&&
25,086&&
24,818&&
24,800&&
24,576&&
24,600&&
24,598&&
24,433&&
24,400&&
24,294&&
24,200&&
Fa
ll&
06
&
Fa
ll&
07
&
Fa
ll&
08
&
Fa
ll&
09
&
Fa
ll&
10
&
Fa
ll&
11
&
Fa
ll&
12
&
Fa
ll&
13
&
24,000&&
17 Enrollment: % Change in Headcount and Credit Hours Sources: WMU Office of Ins9tu9onal Research 8.0%&
6.0%&
4.0%&
2.0%&
0.0%&
Enrollment&
!2.0%&
Credit&Hours&
!4.0%&
!6.0%&
20
08
&
20
09
&
20
10
&
20
11
&
20
12
&
20
13
&
20
14
&
!8.0%&
18 Undergraduate vs. Graduate Enrollment Source: WMU Office of Ins9tu9onal Research Fall$11
20,054
5,032
25,086
Fall$12
19,478
5,120
24,598
Fall$13
19,198
5,096
24,294
Fa
ll$
13
$
Fall$10
19,966
5,079
25,045
Fa
ll$
12
$
Fall$09
19,547
5,029
24,576
Fa
ll$
10
$
Fall$08
19,854
4,964
24,818
Fa
ll$
09
$
Fall$07
19,718
4,715
24,433
Fa
ll$
08
$
Fa
ll$
07
$
Fall$06
Undergrad 20,081
Grad
4,760
Total
24,841
Fa
ll$
06
$
24,000$$
22,000$$
20,000$$
18,000$$
16,000$$
14,000$$
12,000$$
10,000$$
8,000$$
6,000$$
4,000$$
2,000$$
Grad$
Fa
ll$
11
$
Undergrad$
%"Changes 06"to"07 07"to"08 08"to"09 09"to"10 10"to"11 11"to"12 12"to"13 06"to"13
Undergrad 71.8%
0.7%
71.5%
2.1%
0.4%
72.9%
71.4%
74.4%
Grad
70.9%
5.3%
1.3%
1.0%
70.9%
1.7%
70.5%
7.1%
Total
71.6%
1.6%
71.0%
1.9%
0.2%
71.9%
71.2%
72.2%
19 Credit Hours: Main Campus and Regional/Online Source: WMU Office of Ins9tu9onal Research 300,000""
250,000""
200,000""
150,000""
Regional/Online"
Main"Campus"
100,000""
50,000""
0""
Fall" Fall" Fall" Fall" Fall" Fall" Fall" Fall"
06" 07" 08" 09" 10" 11" 12" 13"
Fall$06
Fall$07
Fall$08
Fall$09
Fall$10
Fall$11
Fall$12
Fall$13
Main$Campus
287,460 281,275 282,173 275,675 278,693 273,031 258,691 253,147
Regional/Online 11,862 12,606 16,203 15,644 16,169 18,272 22,877 22,812
Total
299,322 293,881 298,376 291,319 294,862 291,303 281,568 275,959
20 Enrollment: Percent Michigan Residents Source: WMU Office of Ins9tu9onal Research Fall&13&
87.9%&
Fall&12&
88.4%&
Fall&11&
89.5%&
Fall&10&
89.9%&
Fall&09&
90.2%&
Fall&08&
91.3%&
92.3%&
Fall&06&
92.4%&
0.
0%
&
10
.0
%
&
20
.0
%
&
30
.0
%
&
40
.0
%
&
50
.0
%
&
60
.0
%
&
70
.0
%
&
80
.0
%
&
90
.0
%
10 &
0.
0%
&
Fall&07&
21 Resident Undergraduate Tui9on and Fees Sources: HEIDI (Higher Educa9on Ins9tu9onal Data Inventory) Report of the Michigan Legislature; Governor Execu9ve Budget for 2015-­‐16 •  Tui9on increased 55% from 2006 to 2014 •  The Governor has set a 3.2% tui9on limit for 2015 •  Non-­‐resident tui9on is 2.43 9mes as large as resident tui9on 20
06
.0
7#
20
07
.0
8#
20
08
.0
9#
20
09
.1
0#
20
10
.1
1#
20
11
.1
2#
20
12
.1
3#
20
13
.1
4#
20
14
.1
5#
$12,000##
$11,000##
$10,000##
$9,000##
$8,000##
$7,000##
$6,000##
$5,000##
$4,000##
$3,000##
$2,000##
$1,000##
$0##
22 Changes In Tui9on Revenue, Enrollment, and Tui9on Price 10.0%&
8.0%&
6.0%&
How fast will tui9on revenue grow in 2014 and 2015? 4.0%&
2.0%&
Enrollment&
0.0%&
Tui9on&and&Fees&
Tui9on&Revenue&
!2.0%&
20
08
&
20
09
&
20
10
&
20
11
&
20
12
&
20
13
&
20
14
&
20
15
&
!4.0%&
23 Addi9onal Tui9on and State Appropria9on Revenue vs. The Cost of a 1% Raise for the En9re Bargaining Unit in 2015 12.0#
10.0#
8.0#
6.0#
4.0#
2.0#
0.0#
Approximate#Increase#in#
Tui9on#and#State#Revenue#
Cost#of#a#1%#Raise#for#the#
en9re#bargaining#unit#
(including#benefits)#
24 Past and Present Financial Condi9on of WMU 25 WMU Financial Condi9on in the Words of the Administra9on Source: 2013 WMU Audited financial statements President: “The University’s financial posi5on remained strong at June 30, 2013, with assets of $946.8 million and liabili5es of $549.5 million. “ Chief Financial Officer: •  “During the 2012-­‐13 fiscal year, Western Michigan University successfully con9nued its long tradi9on of maintaining a strong financial foo9ng” •  “This report is offered as an illustra9on of the sound financial status that is the result of the daily efforts devoted to those goals.” 26 WMU Balance Sheet Source: WMU Audited Financial Statements: Amounts in Thousands Total#Assets#
Total#Liabili9es#
Net#Assets#
Recogni9on of $120M re9ree health liability 20
06
20 #
07
20 #
08
20 #
09
20 #
10
20 #
11
20 #
12
20 #
13
#
1,000.0##
900.0##
800.0##
700.0##
600.0##
500.0##
400.0##
300.0##
200.0##
100.0##
0.0##
27 Main WMU Revenues Over Time In Millions, Per WMU Audited Financial Statements; 2014 and 2015 per Governor’s Budget 300.0##
250.0##
Tui0on#and#
Fees#
200.0##
State#
Appropria0on#
150.0##
All#Other#
Sources#
100.0##
50.0##
20
06
20 #
07
20 #
08
20 #
09
20 #
10
20 #
11
20 #
12
20 #
13
20 #
14
20 #
15
#
0.0##
•  In 2006, tui9on was 37% of total revenues, the state was 24% and other was 39% •  In 2013, tui9on was 38%, the state was 16% and other was 46% 28 Main General Fund Revenues for All 15 Michigan Public Ins9tu9ons Over Time Source: Higher Educa9on Briefing, House Fiscal Agency, December 2013 Public
University
General
Fund
Revenue Source
History
75%
50%
State
Appropriations
25%
FY 2014
FY 2013
FY 2012
FY 2011
FY 2010
FY 2009
FY 2008
FY 2007
FY 2006
FY 2005
FY 2004
FY 2003
FY 2002
FY 2001
FY 2000
FY 1999
FY 1998
FY 1997
FY 1996
FY 1995
FY 1994
FY 1993
FY 1992
FY 1991
FY 1990
FY 1989
FY 1988
FY 1987
FY 1986
0%
FY 1985
Other
FY 1984
% of Total GF Revenue
Student Tuition
and Fees
Note: FY 2013-14 amounts are estimates
House Fiscal Agency: December 2013
33
29 Total Actual WMU Revenues Over Time In Millions, Per WMU Audited Financial Statements 700.0##
600.0##
500.0##
400.0##
300.0##
200.0##
100.0##
0.0##
2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013#
30 Historical University Appropriations per Student
Total FY 2013-14 university appropriations per FYES are 29.9 percent lower than
they were in FY 2000-01 or 47.8 percent lower on an inflation-adjusted basis.
$8,000
$6,000
$4,000
$2,000
Nominal
FY 2014
FY 2013
FY 2012
FY 2011
FY 2010
FY 2009
FY 2008
FY 2007
FY 2006
FY 2005
FY 2004
FY 2003
FY 2002
FY 2001
FY 2000
FY 1999
FY 1998
FY 1997
FY 1996
FY 1995
FY 1994
$0
Inflation-Adjusted
Source: Higher Educa1on Briefing, House Fiscal Agency, December 2013 31 600"
500"
400"
0"
Wyoming"
North"Dakota"
Alaska"
North"Carolina"
New"Mexico"
Hawaii"
Nebraska"
Mississippi"
Alabama"
Arkansas"
West"Virginia"
Kentucky"
Illinois"
Maryland"
Louisiana"
Georgia"
ConnecKcut"
Oklahoma"
Utah"
Kansas"
Texas"
California"
New"York"
Iowa"
Minnesota"
Indiana"
Delaware"
New"Jersey"
Tennessee"
South"Dakota"
Idaho"
Maine"
Montana"
Wisconsin"
Virginia"
Washington"
Florida"
South"Carolina"
Ohio"
Nevada"
MassachuseUs"
Michigan"
Missouri"
Rhode"Island"
Oregon"
Vermont"
Pennsylvania"
Arizona"
Colorado"
New"Hampshire"
Michigan Higher Ed Appropria9on vs. Other States: Level Per Capita per Grapevine Study, 2013 700"
•  Michigan is 42nd at $157 per capita •  US average is $248 per capita •  If Michigan spent at the average US level, WMU’s appropria9on would increase from $100M to $157M per year 300"
200"
100"
32 12.00#
10.00#
0.00#
Wyoming#
North#Carolina#
New#Mexico#
Alaska#
North#Dakota#
Mississippi#
Arkansas#
Alabama#
West#Virginia#
Hawaii#
Kentucky#
Nebraska#
Utah#
Georgia#
Oklahoma#
Louisiana#
Indiana#
Idaho#
Illinois#
Kansas#
Texas#
Tennessee#
Iowa#
California#
Delaware#
Montana#
South#Carolina#
Maryland#
Minnesota#
Maine#
Wisconsin#
South#Dakota#
Florida#
New#York#
Nevada#
Ohio#
Washington#
ConnecRcut#
Virginia#
Michigan#
New#Jersey#
Missouri#
Oregon#
Arizona#
Rhode#Island#
Vermont#
Pennsylvania#
MassachuseWs#
Colorado#
New#Hampshire#
Michigan Higher Ed Appropria9on vs. Other States: Level Per $1,000 of Income per Grapevine Study, 2013 14.00#
•  Michigan is at $4.35 and ranked 40th •  US average is $6.22 •  Michigan is at 70% of the na9onal average 8.00#
6.00#
4.00#
2.00#
33 North%Dakota%
Wyoming%
Alaska%
Illinoisb%
North%Carolina%
Maryland%
Arkansas%
Montana%
New%York%
Indiana%
Texas%
Nebraska%
Maine%
West%Virginia%
Vermont%
South%Dakota%
Wisconsin%
Georgia%
Hawaii%
ConnecJcut%
New%Jersey%
Utah%
Kansas%
Missouric%
Virginia%
Iowa%
Kentucky%
Oklahoma%
Ohio%
Delaware%
Tennesseed%
Mississippi%
Idaho%
Rhode%Island%
Colorado%
Minnesota%
Pennsylvania%
Oregon%
New%Mexico%
Michigan%
MassachuseSs%
South%Carolina%
Washington%
Nevada%
California%
Florida%
Alabama%
Louisiana%
New%Hampshire%
Arizona%
!4
!
!
!
0% 30% 20% 10%
%
%
%
%
0%
%
%
10
%
%
20
%
%
30
%
%
40
%
Michigan Higher Ed Appropria9on vs. Other States: Change from 2008 to 2013 per Grapevine Study, 2013 •  Michigan is 40th worst at -­‐22% •  US average is -­‐10% 34 WMU Opera9ng Cash Flows Source: WMU Audited Financial Statements: Amounts in Millions 50.0##
45.0##
40.0##
35.0##
30.0##
•  Opera9ng cash flows = all cash inflows less all cash ounlows •  WMU generated $35M of opera9ng or excess cash flows in 2013 25.0##
20.0##
15.0##
10.0##
5.0##
0.0##
2006# 2007# 2008# 2009# 2010# 2011# 2012# 2013#
35 Bond Ra9ngs As of September, 2013 Sources: Moodys.com and hgp://emma.msrb.org/ Rating
Moody's.
Standard.&.Poors
Is WMU Broke? NO WAY! They are doing very well financially! A1
AA<.or.A
Rank
5th.highest.
out.of.24
4th.or.6th.
highest.out.
of.24
Why does WMU have strong bond ra9ngs: •  Growing tui9on revenue •  Solid opera9ng cash flows 36 Details of Moody’s Ra9ng -­‐ Overall Source: hgps://www.moodys.com/research/Moodys-­‐assigns-­‐A1-­‐to-­‐Western-­‐Michigan-­‐
Universitys-­‐97M-­‐Revenue-­‐Bonds-­‐-­‐PR_282158 •  Overall: The A1 ra9ng reflects the university's healthy market posi9on as a large comprehensive public university with increasing programma9c diversity and trends of posi9ve cash flow and strong net tui9on revenue growth despite modest enrollment declines. The ra9ng also incorporates the university's leveraged opera9ons and balance sheet. •  The stable outlook reflects the expecta9on that the university's opera9ons will remain posi9ve, no addi9onal debt will be issued, and that enrollment will at least stabilize. 37 Strengths Per Moody’s •  “WMU is a large university, enrolling more than 21,000 full-­‐
9me equivalent students, with growing programma9c diversity. A partnership that has added a new medical school (first class in fall 2014) and an affilia9on agreement with a law school effec9ve this 2013-­‐2014 academic year should help agract a more geographically diverse student body. •  Net tui9on revenue experienced strong growth since the recession despite modest enrollment declines. Net tui9on per student increased 35.6% to $9,968 in FY 2012 since FY 2008. •  The university con9nues to generate posi9ve opera9ng margins and comfortable cash flow even auer sustaining a 24% decline in state opera9ng support since FY 2008.” 38 Challenges per Moody’s •  “Enrollment experienced modest declines since fall 2008 and will con9nue to be challenged given its high reliance on students from Michigan and projec9ons for declining high school graduates within the state. •  State support has declined 24% since FY 2008. State appropria9ons represent 19% of opera9ons in FY 2012, a 28% decrease from FY 2008. Posi9vely, state appropria9ons are expected to increase modestly in FY 2014. •  Capital plans and opera9ons of the medical school rely on ambi9ous fundraising plans targe9ng an addi9onal $80 million (for a total of $200 million) for ongoing support for the medical school.” 39 A College Degree Helps Source: Bureau of Labor Sta9s9cs, 2/7/2014 14.0%%
12.0%%
12.0%%
9.6%%
10.0%%
8.1%%
8.0%%
7.0%%
6.0%%
6.0%%
4.0%%
6.5%%
3.8%%
3.2%%
2.0%%
0.0%%
Unemployment%Rate,%
January%2013%
Unemployment%Rate,%
January%2014%
Bachelor's% Some%
High% Less%than%a%
degree%or% college%or% school% high%school%
higher% Associate's% diploma,% diploma%
Degree% no%college%
40 Degrees Conferred Source: WMU Office of Ins9tu9onal Research, Ten Year Degree History 7,000""
6,000""
5,000""
4,000""
Doctoral"
3,000""
Masters"
Bachelors"
2,000""
1,000""
0""
2008"
Bachelors
Masters
Doctoral
Total
2009"
2008
4,344
1,278
111
5,733
2010"
2009
4,213
1,338
103
5,654
2010
4,073
1,334
110
5,517
2011"
2011
4,124
1,293
128
5,545
2012"
2012
4,286
1,281
117
5,684
2013"
2013
4,161
1,402
114
5,677
41 Gradua9on Rates Source: WMU Office of Ins9tu9onal Research, 2012-­‐13 Reten9on Survey 4-Year$Rate$
5-Year$Rate$
6-Year$Rate$
60.0%$
50.0%$
40.0%$
30.0%$
20.0%$
10.0%$
0.0%$
Cohort $
02
0
2
$
03
0
2
$
04
0
2
$
05
0
2
$
06
0
2
$
07
0
2
$
08
0
2
•  2002 cohort: 4-­‐year rate is graduated by 2006; 6-­‐year rate by 2008 •  2006 cohort: 4-­‐year rate graduated by 2010; 6-­‐year rate by 2012 42 Priori9es of the Administra9on: Are They Being True to the Core Academic Mission? 43 WMU Opera9ng Expenses Source: WMU Audited Financial Statements In#Millions
2006
2007
2008
2009
2010
2011
2012
2013
Instruction
128.2
142.0
142.3
155.6
152.8
158.0
155.9
158.9
Research
25.4
25.7
29.9
26.1
30.3
27.5
23.0
19.5
Public#service
8.9
8.6
9.2
10.1
9.1
10.8
11.3
11.2
Academic#support
36.7
37.1
37.2
40.3
40.3
44.3
48.8
50.6
Student#services
19.8
20.8
22.5
24.2
24.6
25.9
24.3
25.8
Institutional#support
38.2
36.8
36.8
35.9
34.9
35.2
39.0
47.5
Plant
33.1
32.9
33.7
35.5
36.0
37.7
38.3
36.3
Scholarships
28.7
23.1
25.0
28.9
34.1
38.1
34.8
33.7
Auxiliaries
74.3
70.8
78.4
81.0
75.9
77.3
92.1
85.9
Depreciation
25.8
28.2
28.7
29.4
29.3
29.3
25.2
26.8
Other
4.6
5.1
17.6
9.4
14.3
9.5
3.3
14.9
431.2
461.2
476.6
481.6
493.8
496.0
510.9
Total#Operating#Expenses 423.6
44 WMU Expense Distribu9on Source: WMU Audited Financial Statements Deans , Associate Deans and library 2006
2007
2008
2009 2010
2011
2012
2013
Instruction
30.3% 32.9% 30.8% 32.6% 31.7% 32.0% 31.4% 31.1%
Research
6.0%
6.0%
6.5%
5.5%
6.3%
5.6%
4.6%
3.8%
Public=service
2.1%
2.0%
2.0%
2.1%
1.9%
2.2%
2.3%
2.2%
Academic=support
8.7%
8.6%
8.1%
8.4%
8.4%
9.0%
9.8%
9.9%
Student=services
4.7%
4.8%
4.9%
5.1%
5.1%
5.2%
4.9%
5.0%
Institutional=support 9.0%
8.5%
8.0%
7.5%
7.2%
7.1%
7.9%
9.3%
Plant
7.8%
7.6%
7.3%
7.5%
7.5%
7.6%
7.7%
7.1%
Scholarships
6.8%
5.3%
5.4%
6.1%
7.1%
7.7%
7.0%
6.6%
Auxiliaries
17.5% 16.4% 17.0% 17.0% 15.8% 15.7% 18.6% 16.8%
Depreciation
6.1%
6.5%
6.2%
6.2%
6.1%
5.9%
5.1%
5.2%
Other
1.1%
1.2%
3.8%
2.0%
3.0%
1.9%
0.7%
2.9%
Total=Operating=Expenses 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Upper-­‐level administra9ve costs 45 Instruc9on, Research, and Ins9tu9onal Support Over Time Source: WMU Audited Financial Statements 35.0%$
30.0%$
2006$
25.0%$
2007$
20.0%$
2008$
2009$
15.0%$
2010$
10.0%$
2011$
5.0%$
0.0%$
2012$
Instruc0on$
Research$
Ins0tu0onal$
Support$
2013$
46 Instruc9on Salaries and Benefits Compared to Total Salaries and Benefits per IPEDS (Integrated Postsecondary Educa9on Data System of the US Dept. of Educa9on) In#Millions
2008
2009
2010
2011
2012
Instruction#Salaries#and#
Benefits
131.2 138.5 140.3 144.7 142.9
Total#Salaries#and#
Benefits
271.9 287.3 291.0 299.1 297.7
Instruction#Salaries#&#
Benefits#as#%#of#Total#
Salaries#&#Benefits
48.3% 48.2% 48.2% 48.4% 48.0%
Instruc9onal salaries and benefits are less than ½ of total salaries and benefits; 2012 was lowest 47 Instruc9onal Salaries and Benefits Compared to Total Expenses per IPEDS 2008
Instruction/Salaries/and/
Benefits
Total/Operating/Expenses
Instruction/Salaries/&/
Benefits/as/%/of/Total/
WMU//Expenses
2009
2010
2011
2012
131.2 138.5 140.3 144.7 142.9
476.9 491.7 494.8 506.7 522.4
27.5% 28.2% 28.4% 28.6% 27.4%
Barely more than 1 of every 4 dollars goes to the core instruc9onal mission; lowest % is in 2012 48 Percentage Changes in Main Expenses: Salary Component Only of IPEDS 37.2%&
40.0%&
35.0%&
30.0%&
The top four categories are mostly administra9ve func9ons 25.0%&
20.0%&
16.5%&
15.0%&
10.0%&
14.4%&
12.6%&
10.7%& 10.1%& 9.5%&
5.0%&
h&
se
ar
c
Re
on
&
In
st
ru
cC
Pl
an
t&
vi
ce
Ac
ad
em
Pu
bl
ic&
s
er
-5.0%&
&
ic&
su
pp
St
ud
or
t&
en
t&s
In
sC
er
tu
vi
ce
Co
s&
na
l&s
up
po
rt&
Au
xil
ia
rie
s&
0.0%&
-3.8%&
49 Percentage Change in Salary Component of Instruc9on vs. Ins9tu9onal Support per IPEDS (Ins9tu9onal Support = Upper level administra9ve costs) 14.0%$
12.0%$
10.0%$
8.0%$
Instruc3on$
6.0%$
Ins3tu3onal$Support$
4.0%$
2.0%$
0.0%$
2008$ 2009$ 2010$ 2011$
to$09$ to$10$ to$11$ to$12$
2008$
to$12$
50 Top WMU 40 Administra9ve Salaries, 2012-­‐13 Source: SALARY DETAIL FOR FACULTY AND STAFF 129 Administrators have Salaries > $100,000 Football coach current salary is
$392,500 per USA Today Position
2012*13,Salary
President
$366,082
VP,Research
$234,623
Provost/VP,Academic,Affairs
$228,910
Coach,Men's,Football
$227,250
Dean,College,of,Business
$227,250
VP,Development,&,Alumni,Rel,
$227,250
Coach,Men's,Basketball
$210,000
Coach,Men's,Hockey
$210,000
Dean,Coll,of,Eng
$204,020
VP,Business,&,Finance
$202,000
Athletic,Director
$200,000
Chairperson,Accountancy
$190,297
Assoc,Dean,Coll,of,Business
$188,062
Dean,Coll,of,Aviation
$187,551
Dean,Coll,of,HHS
$186,856
Vice,Provost,Budget,Pers,&,CIO,
$184,014
Vice,Prov,Budget,&,P,Emeritus,
$182,192
Dean,Coll,of,Arts,&,Sci
$181,800
Dean,Coll,of,Fine,Arts
$180,027
Chairperson,Management
$179,483
Position
2012*13,Salary
Chairperson,Paper,Eng/Chem,Eng
$176,320
Chairperson,Bus,Info,Sys
$176,041
Chairperson,Manufacturing,Eng
$172,893
Chairperson,Computer,Sci
$170,000
Chairperson,Marketing
$167,543
Coach,Women's,Basketball
$165,000
Chairperson,Finance
$163,257
Dir,Mallinson,Institute,
$162,440
Assoc,Dean,Coll,of,Business
$161,196
Dean,University,Libraries
$160,706
Vice,Provost,Project,Mgmt,
$159,089
Chairperson,Elec,&,Comp,Eng
$158,543
Chairperson,Mathematics
$156,994
Assoc,VP,Business,&,Finance,
$156,550
Assoc,VP,Facilities,Mgmt
$156,550
Medical,Director
$156,075
Assoc,VP,Budget,&,Planning,
$151,112
Chairperson,Mech,Eng
$150,709
VP,Govt,Affr,&,Univ,Relations,
$150,041
Chairperson,Geosciences
$149,747
51 Next 40 Administrator Salaries 2012*13,Salary
VP,Student,Aff,&,Dean,Students,
$147,897
Assoc,Dean,Coll,of,Eng
$147,421
Dean,Of,Graduate,Studies,
$146,450
Dir,Evaluation,Center
$144,681
Chairperson,Georgraphy
$143,081
VP,Legal,Affairs,&,Gen,Counsel,
$142,538
Dir,Medieval,Inst
$141,646
VP,Diversity,and,Inclusion
$141,400
Chairperson,Speech,Pathology
$140,161
Dean,Coll,of,Education
$140,000
Dir,School,Of,Nursing
$136,752
Chairperson,Psychology
$136,409
Chairperson,Industrial,&,Manu,Eng
$134,889
Assoc,Dean,Coll,of,Educ
$134,330
Chairperson,Occ,Therapy
$132,088
Dir,Frostic,School,of,Art,
$130,968
Assoc,Dean,Coll,HHS
$130,035
Assoc,VP/Chief,HR,Officer,
$130,000
Exec,Dir,Flight,Operations,
$128,606
Dir,School,Of,Music,
$128,397
Position
Position
Assoc,Dean,Coll,of,Eng
Assoc,Provost,EUP
Assoc,Dean,Aviation
Chairperson,Blindness,&,Low,Vision
Chairperson,Statistics
Dir,School,of,Interdis,Health,
Dir,Public,Affairs,&,Admin
Chairperson,Sociology
Dir,Tech,Transfer,&,Lic/Comm,
Assoc,Dean,Coll,of,Fine,Arts
Chairperson,English
Chairperson,Phys,Asst
Assoc,VP,Research,
Assoc,Provost,Inst,Effectvness,
Chairperson,Economics
Chief,Technology,Officer
Dean,,Honors,College
Assoc,Dean,Coll,Arts,&,Sci
Chairperson,Chemistry
Assoc,Dean,Coll,of,Arts,&,Sci
2012*13,Salary
$127,891
$127,513
$127,513
$127,062
$126,924
$126,778
$125,939
$125,759
$125,110
$125,000
$124,735
$124,648
$124,548
$124,230
$124,000
$123,220
$122,412
$121,200
$121,200
$120,695
52 Final 49 Administrator Salaries > $100,000 Position
2012*13,Salary
Chairperson,Communications
$120,015
Assoc,VP,Institutional,Equity,
$118,961
Chairperson,Special,Ed
$118,645
Chairperson,Counseling
$117,638
Dir,School,Of,Social,Work,
$116,696
Assoc,VP,For,Commty,Outreach,
$115,746
Chairperson,Theater
$115,286
Chairperson,,History
$115,140
Deputy,General,Counsel
$114,673
Chairperson,Biology
$114,000
Dir,Accounting,Services,
$113,458
xec,Dir,Development,&,Alumni,
$113,120
Assoc,VP,Student,Affairs,
$112,530
Dir,Acad,Collective,Bargaining,
$112,448
Chairperson,Pol,Sci
$112,363
Dir,University,Budgets
$112,289
Chairperson,Spanish
$112,110
Assoc,Dean,Coll,of,Arts,&,Sci
$112,000
Sr,Dir,Enterprise,Systems,
$111,504
Sr,Dir,Voice,Video,Data,Ntwks,
$111,501
Chairperson,World,Languages
$111,000
Chairperson,Physics
$110,090
Dir,Campus,Facility,Planning,
$109,315
Chairperson,Dance
$108,064
Director,Public,Safety
$106,050
Position
2012*13,Salary
Dir,Internal,Audit,
$106,050
Assoc,Provost,Assessmt/UG,Stds,
$105,965
LAN,Specialist,III,
$105,770
Assoc,Dir,Institutional,Equity
$105,739
Chairperson,Anthropology
$105,475
Dir,Miller,Auditorium,
$104,882
Chairperson,Comparative,Religon
$104,030
Chairperson,Aviation
$103,991
Dir,IT,Policy,&,Communication,
$103,132
Classroom,Tech,Consultant,Lead,
$103,132
Assoc,Dean,Honors,College,
$103,020
Sr,Assoc,Athletics,Dir,
$102,917
Network,programmer
$102,710
Chairperson,Teaching,Learning
$101,922
Dir,Student,Financial,Aid,
$101,813
Chairperson,Ed,Leadership
$101,742
Dir,Operations,Wkgrp,Computing,
$101,484
Dir,Principal,Gifts
$101,000
Assoc,VP,Student,Affairs,
$101,000
Dir,Major,Gifts
$101,000
Director,Labor,Relations
$100,570
Dir,Auxiliary,Enterprises,
$100,024
Asst,Coach,Men's,Football,
$100,000
Asst,Coach,Men's,Football,
$100,000
53 WMU Faculty Salaries vs. Peers-­‐ Levels Peers per WMU Office of Ins9tu9onal Research Data per AAUP Salary Survey, 2013 Salaries Temple
Alabama
Texas@Tech
UNC@Greensboro
West@Virginia
Akron
Kansas@State
Western@Michigan
North@Dakota
Northern@Illinois
Southern@Mississippi
Full
$134,591
$132,906
$110,804
$110,539
$109,874
$109,506
$102,708
$100,311
$99,001
$98,270
$88,795
Associate
$94,874
$90,387
$75,753
$77,436
$82,981
$82,250
$73,960
$74,707
$80,508
$75,679
$66,154
Assistant
$71,009
$68,212
$68,772
$66,326
$66,271
$70,285
$64,337
$63,231
$65,318
$67,698
$59,848
Instructors
$55,631
$46,353
$48,939
$56,603
$44,083
$55,437
$43,984
$45,485
$51,805
$42,308
$46,484
Average@w/o@WMU
WMU@vs.@Average
$109,699
($9,388)
$79,998
($5,291)
$66,808
($3,577)
$49,163
($3,677)
8
9
10
8
WMU@Rank@(out@of@11)
54 WMU Faculty Salaries vs. Peers-­‐ Changes from 2010 to 2013 Peers per WMU; Data per AAUP Salary Survey Full
Associate
Assistant
Instructors
WMU2Averages,22010
$98,000
$73,200
$57,600
$43,500
Peer2Averages,22010
$101,530
$74,680
$61,520
$45,570
($3,530)
($1,480)
($3,920)
($2,070)
($9,388)
($5,291)
($3,577)
($3,677)
$343
($1,607)
WMU2Salary2vs.2Peer2Averge,2
2010
WMU2Salary2vs.2Peer2Average,2
2013
WMU2Gain2(Loss)2from2
20102to22013
WMU2Rank2out2of211,22010
WMU2Rank2out2of211,22013
Ranking2gain2(Loss)2from220102
to22013
($5,858) ($3,811)
7
8
6
9
10
10
7
8
M1
M3
0
M1
55 Number of Faculty Source: hgp://www.wmich.edu/ir/reports/faculty/faculty/201340FacCntsByDep.pdf Part 9me faculty per IPEDS (only through Fall 2012) 1,000""
900""
800""
700""
600""
Fixed"Term"
500""
Tenure"track"
400""
Tenured"
300""
200""
100""
0""
Fall"06" Fall"07" Fall"08" Fall"09" Fall"10" Fall"11" Fall"12" Fall"13"
Tenured
Tenure$track
Tenure/TT
Fixed$Term
Total
Part$time
Fall$06 Fall$07 Fall$08 Fall$09 Fall$10 Fall$11 Fall$12 Fall$13
553
586
607
609
641
642
629
637
234
186
172
171
144
145
159
153
787
772
779
780
785
787
788
790
88
92
106
75
81
77
73
80
875
864
885
855
866
864
861
870
507
455
584
538
542
538
556
56 Number of Faculty per AAUP Salary Survey 400"
350"
300"
250"
Full"
200"
Assoc"
150"
Asst"
100"
Instructor"
50"
0"
2007" 2008" 2009" 2010" 2011" 2012" 2013"
57 Annual WMU Athle9c Spending in Millions hgp://www.usatoday.com/sports/college/schools/finances/ $30.0&&
$27.8&&
$24.5&&
$25.0&&
$21.0&&
$21.3&&
$21.6&&
2006&
2007&
2008&
$25.4&&
$23.2&&
$20.0&&
$15.0&&
$10.0&&
$5.0&&
$0.0&&
2009&
2010&
2011&
2012&
58 Change in Coaches Salaries vs. Change in Instruc9on Salaries, 2006 to 2012 Sources: USA Today Database and WMU Audited Financial Statements 18.6%%
Coaching%Salaries%
Instruc2on%Salaries%
0.0%%
9.5%%
5.0%%
10.0%%
15.0%%
20.0%%
59 WMU Athle9cs: Where does the money come from to pay for athle9cs? Source: USA Today Database 2011$12
Institution,Dollars
Rights/Licensing
Other,Revenue
Ticket,Sales
Contributions
Dollars
$19,802,833
$2,908,052
$2,815,780
$1,606,025
$767,259,
Total,Expenses,
$27,817,159,
%,of,Total
71%
10%
10%
6%
3%
60 Graphical Depic9on of WMU Athle9c Sources Source: USA Today Database 71%$of$Athle/c$Expenses$are$Subsidized$by$
the$Core$Academic$Side$
6%$
3%$
10%$
Ins/tu/on$Dollars$
Rights/Licensing$
10%$
Other$Revenue$
71%$
Ticket$Sales$
Contribu/ons$
61 Conclusions •  Appropria9on in 2014 and 2015 are up for WMU •  State economic indicators look posi9ve moving forward •  Despite a huge decline in the state appropria9on cash flows are growing •  Any claim of financial hardship are not supported by the evidence – WMU is NOT BROKE! Priori9es of the Administra9on •  Instruc9onal costs are not going up as fast as administra9ve costs •  Pay for bargaining unit member is lagging 62