University of Alaska Fairbanks
Spring 2010 Operating Review
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Agenda
I Introduction
Expected outcomes
II FY12 budget and 3 - 5 year planning horizon
Operating Budget Priorities
Campus master plan and 6 year capital plan
R&R, M&R
III FY11 conditions and distributions
Conditions and operating assumptions
FY11 distributions
IV FY10 projected final performance
V Management report recap
M&R and R&R Expenditures
Major cost savings
Capital Accounts
Management report
VI Summary
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Chancellor Rogers
Chancellor Rogers
Director Zanazzo
Director Zanazzo
Vice Chancellor Pitney
Vice Chancellor Pitney
Provost Henrichs
Director Zanazzo
Vice Chancellor Pitney
Director Zanazzo
Vice Chancellor Pitney
Chancellor Rogers
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I - Introduction
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Great Land…Great University
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A Student and Community Focused
Research University
UAF’s strategic priorities are to:
 Increase degree and credential completion
rates.
 Lead in research concerning the circumpolar
north and its peoples.
 Engage communities to foster economic
development and sustainability.
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UAF First-Time Full-Time Freshmen: Longitudinal Retention/Graduation Rates
Fall 1999 Entering Cohort
100%
90%
80%
Retention/Graduation Rate
70%
not enrolled
60%
continuing
graduated
50%
40%
30%
20%
10%
0%
1st Yr
2nd Yr
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3rd Yr
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4th Yr
5th Yr
6th Yr
Return Year
7th Yr
8th Yr
9th Yr
10th Yr
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A Student and Community Focused
Research University
UAF’s strategic priorities are to:
 Increase degree and credential completion
rates.
 Lead in research concerning the circumpolar
north and its peoples.
 Engage communities to foster economic
development and sustainability.
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http://sciencewatch.com/ana/st/climate/institution/
SPECIAL TOPICS
Climate Change - November 2009
Top 20 Overall:
The database contained 10,801 institutions. Ranked by
three separate measures Citations, Papers, and Citations
Per Paper. Source dates: 1999-June 30, 2009
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Rank by Number of Citations
Rank
Institution
Citations
Papers
Citations Per Paper
1
NCAR
11341
362
31.33
2
NASA
10731
332
32.32
3
NOAA
10609
420
25.26
4
Columbia U
10600
412
25.73
5
Max Planck Society
9925
356
27.88
6
UK Met Office
9667
313
30.88
7
U Colorado
9078
414
21.93
8
U Oxford
8622
336
25.66
9
U E Anglia
8386
315
26.62
10
U Washington
8153
351
23.23
11
University Of Alaska
8098
347
23.34
Lower ranked institutions: US Geological Survey, UC Berkeley, Penn State,
UC San Diego, Stanford, CSIRO, UC Santa Barbara, U Wisconsin, Colorado State
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A Student and Community Focused
Research University
UAF’s strategic priorities are to:
 Increase degree and credential completion
rates.
 Lead in research concerning the circumpolar
north and its peoples.
 Engage communities to foster economic
development and sustainability.
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Economic Impact of Community Campuses
Direct Spending
(FY08)
Campus
Estimated Direct
and Indirect
Economic Impact
(FY08)
Bristol Bay
$2,625,000
$4,000,000
Chukchi
$1,600,000
$2,400,000
Interior-Aleutians
(rural)
$800,000
n/a
Interior-Aleutians
(Fairbanks)
$3,500,000
$4,700,000
Kuskokwim
$6,000,000
$10,000,000
Northwest
$3,000,000
$5,000,000
$11,000,000
$17,000,000
Tanana Valley
Data are from a report by the McDowell Group on economic and social impacts of community campuses.
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Impact of Community Campuses
 Provide place-based educational
opportunities
 Respond to community and local employer
needs
 Foster economic advancement of rural and
Fairbanks residents
 Engage youth
From a report by the McDowell Group on economic and social impacts of community campuses.
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A Student and Community Focused
Research University
UAF aims to align research, teaching, outreach and
engagement activities within areas of emphasis:
 Life Sciences
 Climate
 Engineering and Energy
 Natural Hazards
 Northern Peoples
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Aligning Research, Education,
and Community Engagement
Just a few examples...
 Atmospheric scientists (with students)
assist borough with air-quality issues
 AVO monitors Redoubt and ash plumes
 GI/ARSC researchers preparing
tsunami run-up maps for 70 coastal
communities
 ACEP geothermal resource assessment
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II - FY12 Budget and
3–5 Year Planning Horizon
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FY 12 Operating Budget Priorities
 Address fixed costs increases
 Meet obligations to established programs:
Biomedical, Climate, WFD including
teacher preparation, others
 Maintain momentum: Engineering, Energy
 Increase graduation rates (including State
financial aid)
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Operating Budget
3 to 5 Year Conditions
 Annual 3% salary increase
 Annual 15% benefit increase
 Annual 10% tuition increase
 Enrollment increase 10% if significant
State financial aid package
 ICR flat overall if no significant facilities
investment
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Unrestricted Revenue Gap
Based Upon FY05 to FY09 Annualized Data
$360,000.0
$13.8M Gap
$340,000.0
$8.3M Gap
$320,000.0
$3.5M Gap
$300,000.0
$280,000.0
$260,000.0
Projected Expense
Breakeven
$4.2M
Surplus
Projected Unrestricted
Revenue
Annualized Expense Increasing at
8.42%
Annualized Revenue Increasing at
6.86%
$240,000.0
Does not include financial aiddependent enrollment increase
$220,000.0
FY09
FY10
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FY11
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FY12
FY13
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Impact of GF/non-Federal Revenue Ratio
 If applied at the MAU level, favors MAUs
with mainly tuition rather than Federal
revenue
 Encourages increased tuition and fees
 Discourages investment in rural campuses,
Ph.D. programs
 Increases instability of funding (positive
feedback to revenue change)
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Closing the Funding Gap
 Increase revenue: Recruit students, secure
both research and education grants
 Reduce cost
 Reallocate
 Adapt: Efficiency, new approaches
 Eliminate programs or activities
 Incentives for units to do all of the above
 Strategic investments: Pursue new GF, but
reallocate if necessary
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Campus Master Plan Update
 Faculty, staff, and student committee assisted by
Perkins + Will
 Wide campus and community participation
 Chancellor Rogers briefed Board of Regents’
Facilities and Land Management Committee in April
 Will seek approval at the June 2010 Board of
Regents’ meeting
 Bristol Bay, Chukchi, Interior Aleutians, Kuskokwim
and Northwest Campuses’ MP completed in 2006
 Master plans updated on a five to seven year cycle
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Six-Year Capital Improvement Plan
Top Priorities
New Construction
 Life Sciences Facility
 Energy Technology Facility
 Engineering Academic Programs Facility
 Replace Heat and Power Plant
 Student Residential Facilities
Renewal and Renovation
 Critical Electrical Distribution
 Main Waste Line Repairs
 IT Infrastructure
 Community Campuses’ R&R
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M&R and R&R
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Summary of R&R Appropriations, 97-10
State
$133.5 M
Non-State
$47.4 M
Non-State Category: Federal Receipts
$13.4 M
Non-State Category: University Receipts
$34.0 M
TOTAL
$180.9 M
Average FY97-FY10
$12.9 M
Annual Need
At least $30 M
Sufficient R&R and replacement of the heat and
power plant are essential.
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Skarland Hall Shower Repairs
Plumbing shower waste
line from the use of
showers for over 40 years.
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Corrosion at galvanized shower base pans.
This results in water leaking to floor below.
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25
Wood Stave Sewer Pipe
50 year old wood
stave pipe - shows
only the "bands“.
The sewer flow was
holding the wood
staves up, and once
the sewer flow was
stopped, they fell to
the bottom of the
line.
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III - FY11 Conditions and Distributions
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FY11 – Initial Budget Analysis

Continue Reshaping of Budget and Management Processes
Budget Principles
Carryforward Principles

Impacts and Management of Cost Shifts from Statewide
 Functional Specific Charge Backs
 Broad Based ICR and SCH Assessments

New Mechanisms for Gathering Reallocation Pool
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FY11 Conditions
 Entering FY 11 with ~$4M shortfall
 GF compensation increase $1.6M below
actual
 No GF for non-compensation fixed costs
(except fuel)
 Continuing GF appropriation for ACEP, CES
likely
 MAP, STEM may receive GF. MAP needs
1:1 match.
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FY11 Assumptions
 Legislature’s 3% redistribution pool returned
 Insufficient M&R and R&R funding (but more
than usual)
 Potential lack of utility trigger mechanism
 Flat or slightly increasing research revenue
 Flat enrollment (maintain FY10 increase)
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FY 11 Budget
$8M Non-General Funds Required to Maintain Existing Programs!
As passed by the Legislature
Compensation Increase
Maintenance & Repair
$3.45M General Fund
$795K General Fund
$3.77M Non-General Fund $790K Non-General Fund
Other Fixed Costs
$1.3M General Fund
$3.5M Non-General Fund
Programs
$1.4M General Fund*
$2.67M Non-General Fund
*Includes CES, ACEP, MAP and 150K of one-time STEM funding.
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FY11 Distributions to Units
 Salary & benefits increases @ 60% of total
 60% of resident tuition
 Tuition scholarship budget (‘waivers’)
formerly centralized (may delay to FY12)
 Replenish reserve, address unbudgeted
scholarships and critical needs: ~3 to 4%
ATB reduction
 PBB: 1% ATB reduction and targeted
redistribution
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IV – FY 10 Projected Performance
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UAF Student Credit Hours
FY07-FY09 with FY10 Projection
200,000
180,000
160,000
Student Credit Hours
140,000
FY10 Projection
FY10-to-Date
120,000
Yearlong CDE
Graduate
100,000
Professional
Upper Division
80,000
Lower Division
60,000
40,000
20,000
0
FY07
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FY09
FY10
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Rural Campus Student Credit Hours
12000
Student Credit Hours
10000
8000
Fall
Spring
6000
Summer
Linear (Fall)
4000
2000
0
FY98
FY99
FY00
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FY01
FY02
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FY03
FY04
FY05
FY06
FY07
FY08
FY09
FY10
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Student Credit Hours
 Spring 2010 continued Fall 2009 Enrollment
Increases:
 UAF had a 6.6% increase in SCH Spring 09 to
Spring 10.
 Bristol Bay and Northwest led CRCD.
 Fairbanks was up 8.2%; TVC was up 4.3%.
 Nearly all Fairbanks schools and colleges were
up, led by College of Engineering and Mines and
School of Education
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Student Credit Hours
Strategies:
 Continue efforts with Alaska high school seniors
 School and College recruiting coordinators
 Contacts and visits with Alaska high school
counselors
 UAF UA Scholars award of $2500
 Promote financial aid opportunities
 Recruiting in Washington and California State
Community College systems and California high
schools
 Targeted recruiting in China
 Community and business partnerships
 E-Learning
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UAF High-Demand Job Awards
FY07-FY09 with FY10 Projection
900
800
700
Academic Awards
600
FY10 Projection
500
FY10-to-Date
Graduate/Licensure
Baccalaureate
400
Cert/Associate
300
200
100
0
FY07
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FY10
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UAF Engineering: Longitudinal Enrollment by Degree Level
Fall 1990 – Fall 2009
800
Doctorate
Masters
Baccalaureate
700
BI Pre-Major
Number of Majors
600
500
400
300
200
100
0
Fall 99
Fall 00
Fall 01
Fall 02
Fall 03
Fall 04
Fall 05
Fall 06
Fall 07
Fall 08
Fall 09
Source: SIS and Banner SI Closing Extracts, 1990-2009.
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Freshman Retention
FY07-FY09
3 Yr Avg.
FY10
FY11
Projection
Tanana Valley
AssociateLevel, FTFT
43.7%
47.1%
48%
Baccalaureate,
all campuses,
FTFT
76.4%
81.5%
80%
Total FTFT
Retention
65.3%
66.7%
68%
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Retention and Graduation Strategies
 Increased Baccalaureate admission standard
 Mandatory placement
 Improved advising
 Supplemental instruction
 Freshman seminars
 Improvements to the Honors Program
 Northern Leadership Center
 Leadership, Involvement, Volunteer Experience
(LIVE)
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Retention and Graduation Strategies
 Early registration, Fairbanks, TVC and Rural
 Improved Financial Aid Advising, Rural and TVC
 More Outdoor Adventures
 Expanded UAF Traditions programming
 Student sustainability efforts
 And established efforts like Rural Student Services,
TRiO, EDGE (Education Development Growth
Experience)...
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UAF Grant-Funded Research Expenditures
FY07-FY09 with FY10 Projection
$120,000
Dollars in Thousands
$100,000
$80,000
FY10 Projection
FY10-to-Date
$60,000
Other
State
Federal
$40,000
$20,000
$FY07
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Research Expenditures
ARRA Impacts:
Facilities improvements should lead to
future research opportunities
 R/V Sikuliaq
 Upgrades to Toolik Lake research
facilities.
 Fill atrium of Arctic Health Research
Building and construct facility at
Kuskokwim Campus.
 NSF MRI grant to support bioinformatics
research
Research funding impacts are not yet clear
 May have largely substituted for other
research funding sources.
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Research Expenditures
 Failure of some campus
facilities, more anticipated
 Facilities are a major
concern
 Need Life Sciences
Facility, both teaching
and research laboratories
 Further develop strategy
on Energy Tech Center
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Research Expenditures
 Biomedical programs update
 PACMAN funded
 Looking forward to EPSCoR IV funding
 Alaska Climate Science Center is under
negotiation
 DHS Center of Excellence (National
Center for Island, Maritime, Extreme
Environment Security with UH and UPRM)
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UAF Doctoral Degree Production: Longitudinal Trends
FY90 – FY10*
500
50
Enrolled PhD Students
450
PhD Degrees Awarded
45
40
350
35
300
30
250
25
200
20
150
15
100
10
50
5
0
PhD Degrees Awarded
PhD Students
PhD Degrees Awarded 5-Yr Avg
400
0
FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10
Source: SIS and Banner SI Closing and Opening Extracts, 1990-2010.
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UAF Development
 Loss of Foundation funding
 Decentralized: SFOS, SOM and
CLA/Library have unit development officers
 Five staff remain in central development
office
 On track to meet FY10 goal of $5.6M
 Alumni giving is up 6% so far
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UAF University-Generated Revenue
FY07-FY09 with FY10 Projection
$250,000
Dollars in Thousands
$200,000
FY10 Projection
FY10-to-Date
$150,000
Other
U of A Receipts
Dorm, Food & Auxil Serv
Student Tuition/Fees
$100,000
Indirect Cost Recovery
Federal Receipts
$50,000
$FY07
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V - Management Report Recap
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M/R & R/R Expenditures
Fairbanks
Campus
CRCD &
TVCC
Total
Capital
$ 9,367,700
$ 7,573,200
$ 16,940,900
Operating
$ 16,343,472
$
700,103
$ 17,043,575
Operating
$ 14,141,853
$
560,726
$ 14,702,579
Capital
$ 16,181,700
$ 5,036,800
$ 21,218,500
Operating
$ 14,682,070
$
941,467
$ 15,623,537
FY10
Calculated
Operating
$ 15,391,100
$
799,200
$ 16,190,300
FY11
Calculated
Operating
$ 16,828,800
$
946,400
$ 17,775,200
FY09
Expenditures
FY09
Calculated
FY10
Budgeted
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Major M&R and R&R Projects
Funded in FY 09
Projects
Description
One-Stop Shop
Completed Jan. 2010
Provides a more convenient service for
UAF students.
$162,539
Parking Lot Storm Water Runoff
Control storm water run-off from West
Ridge lots, modify WRRB roof drain.
$328,196
TVCC Exterior Envelope
Completed October 2009
Replaced entire exterior building envelope.
Northwest Campus Critical
Deferred Renewal
Projected for October 2010
Replace steel pilings under the Nagozruk
and Emily Brown Library buildings.
Multi-year campus wide sanitary and
storm water waste line project
Campus Main Sanitary Waste
Projected for September 2010
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Amount
$3,387,200
$112,800
$556,700
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TVCC Revitalization Phase 3
Exterior Envelope
Before
After
TVCC Thermography Photos
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Critical Electrical Distribution Phase 1A
Interior of Vault 2 - boxes and switches
will be located on the left hand wall.
New utilidor (8' x 8') located on the
North side of Alumni Drive near the
Atkinson Power Plant.
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6000
3
5000
2.5
4000
2
3000
1.5
2000
1
1000
0.5
0
Current
Life Sciences
Energy Tech 1A
Energy Tech 1B
% of unrestricted revenue
% of Unrestricted Revenue
Thousands of $
Debt Service
0
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
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FY10 Major Continuing Cost Savings
 Academic Affairs
 $174K – Library eliminated two staff positions, cut journals and
database
 $329K – Museum eliminated or left unfilled three staff and two
faculty positions
 $200K – School of Management eliminated one faculty position
and refilled another at lower cost
 $ 63K – College of Liberal Arts reduced adjunct faculty hires
Administrative and Facilities Services
 $379K – Eliminated or holding vacant seven administrative and
staff positions
ALASKA’ S FIRST UNIVERSITY

AMERICA’ S ARCTIC RESEARCH UNIVERSITY
56
FY10 Major Continuing Cost Savings
 College of Rural and Community Development
 $ 60K – Reduced staff position to part-time
 $ 43K – Reduced TVC heating costs due to new envelope
 IT
 $118K – Eliminated or reduced two staff positions
 $ 42K – Software licenses dropped due to Google Apps
 Student and Enrollment Services
 $265K – Eliminated or holding vacant three staff and one
executive position
ALASKA’ S FIRST UNIVERSITY

AMERICA’ S ARCTIC RESEARCH UNIVERSITY
57
R
C
od
e
an
d
FY
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M
Co
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aj
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R&
ui
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FY
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07
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07
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Pr
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FY
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cil
itie
s
R&
R
FY
07
FY
07
Thousands of $
Active Capital Accounts
20,000
16,000
12,000
8,000
ALASKA’ S FIRST UNIVERSITY
Working Balance
Expended or Projected
4,000
0

AMERICA’ S ARCTIC RESEARCH UNIVERSITY
58
FY 10 Budget
$8.2M Non-General Funds Required to Maintain Existing Programs!
($7.4M projected additional in FY10)
Compensation Increase
$4.2M General Fund
$3.3M Non-General Fund
Maintenance & Repair
$434K General Fund
$657K Non-General Fund
Other Fixed Costs
$150K General Fund
$4.2M Non-General Fund
Programs
$1.1M General Fund
$2.7M Non-General Fund
ALASKA’ S FIRST UNIVERSITY

AMERICA’ S ARCTIC RESEARCH UNIVERSITY
59
Management of Contingencies
 Initial FY10 budget included only $1.3M
contingency reserve
 1% pullback in August 09 (pre-distribution)
yielded $2M additional
 $522K in utilities not covered by “trigger”
 Higher than anticipated tuition revenue
(~$700K) and ICR ($~1.4M)
 No significant additional contingency
funding anticipated
ALASKA’ S FIRST UNIVERSITY

AMERICA’ S ARCTIC RESEARCH UNIVERSITY
60
Carryforward Analysis

Unrestricted (F1) carryforward projected at $4.9 M
or 2.3%

Estimate $5 M to $7 M at end of FY10

Initial contingency reserve low but a pullback
replenished

Higher than anticipated tuition and ICR revenue
partly offset fixed costs increases

Grants and Contracts accounts receivable reduced

Units with deficits at end of FY10 will submit a
remedial plan
ALASKA
ALASKA’S
’ S FIRST
FIRST
UNIVERSITY
UNIVERSITY

AMERICA

AMERICA’S
’ S ARCTIC RESEARCH
ARCTIC UNIVERSITY
UNIVERSITY
61
VI - Summary
ALASKA’ S FIRST UNIVERSITY

AMERICA’ S ARCTIC RESEARCH UNIVERSITY
62