Budget Priorities Committee Forum
October 16, 2014
Powers Ballroom
October 2014
Budget Priorities
Committee Forum
BPC Co-Chair and Professor of English
Assistant Dean of the College of Humanities and Social and Behavioral Sciences
October 2014
Budget Priorities
Committee Forum
Marcy Taylor, Co-Chair, Faculty, English Language and
Literature
Ray Christie, Co-Chair, Senior Vice Provost, Academic
Administration
Michael Hammell-Nelson, Undergraduate Student
Vernon Kwiatkowski, Faculty, School of Accounting
David Whale, Faculty, Educational Leadership
Alma Bazarbayeva, Graduate Student
Nicole Morrison, Administrative Secretary, Academic
Advising and Assistance
Harold Bell, Faculty, College of Medicine
Leigh Orf, Chair, Earth and Atmospheric Sciences
» Ex officio
Ian Davison, Dean, College of Science and Technology
Peter Orlik, Chair, School of Broadcast and Cinematic Arts
Stan Shingles, Assistant Vice President, University
Recreation, Events and Conferences
Sandra Wilson, Coordinator/Business
Services, College of Communication
and Fine Arts
Carol Haas, Director, Financial Planning and Budgets
Barrie Wilkes, Vice President, Finance and Administrative
Services
October 2014
Budget Priorities
Committee Forum
Budget priorities committee charge
» Promote understanding among stakeholders regarding CMU’s
budget and budget processes
» A means for campus constituents to receive budgetary information,
provide input to the BPC
» Committee to offer informed advice about budgetary priorities to
decision makers
October 2014
Forum format
» Scope of topics for forums
» Panelist presentations
» Steven Johnson, VP, Enrollment and Student Services
» Barrie Wilkes, VP, Finance and Administrative Services
» Michael Gealt, Executive Vice President and Provost
» Questions/answers
Budget Priorities
Committee Forum
October 2014
CMU President
Budget Priorities
Committee Forum
October 2014
Vice President, Enrollment and Student Services
Budget Priorities
Committee Forum
October 2014
Enrollment overview
»Enrollment Factors & Trends
»Recruitment Initiatives
»Recent Enrollment
»Student Success Initiatives
Budget Priorities
Committee Forum
Factors impacting future enrollment
» Decline in Michigan high school graduates through 2020
» 25 of Michigan’s 28 community colleges saw enrollment declines in
Fall 2014
» Major feeders experienced greatest decline
» Four projected growth markets*
» Community college transfers
» Adult completers
» International undergraduate
» Professional Master’s
*Source: Education Advisory Board
Michigan HS Graduates
130,000
125,000
120,000
115,000
110,000
105,000
100,000
95,000
90,000
85,000
80,000
CMU entering freshman
4,500
4,000
3,500
3,000
2,500
2,000
October 2014
Budget Priorities
Committee Forum
Freshman enrollment — past, present, future
4,500
4,000
3,500
Actual
3,000
Projected
2,500
2,000
Recruitment initiatives
» Market analysis by College Board and ACT, Inc.
» Out-of-state expansion
» SAT data purchase
» NACAC College Fairs
» Increased high school and community college visits
» Increased bus trips and special group visits to campus
» Increased marketing presence
Recruitment initiatives
» Increased student participation in College Days, CMU & You Day,
Centralis Competitions, and Next Step receptions
» Creation of the Alumni Ambassadors Program
» Contract with Phi Theta Kappa for increased transfer prospects
» Expansion of re-recruitment campaign and Spring Conditional
program
Spring 2014 Marketing Campaign
» CMU TV spots: 22.5 million impressions
» 3 SMART bus wraps: More than 16 million impressions in
Wayne, Oakland, Macomb counties
» Pandora ads in MI, Chicago: nearly 6 million impressions, 90,000
clicks
» Digital Google search ads: 3.01% click-through rate compared to
1.41% industry average
Communications and outreach
» Continued use and promotion of Facebook-based Uversity Schools App
» 4,559 fall 2014 admits joined and made nearly 40,000 friendships with each
other
» Strategic leveraging of virtual tour
» Continued use and expansion of bus wraps from 3 to 5. Will include 3 in
Detroit again and 2 additional in Grand Rapids.
» Continued advertisement on Pandora
» Strategically placed and timed television, billboard, and poster
communications
Student Success Initiatives
» MAP-Works™
» Student Success Collaborative™
» Intensive Success Coaching
» Limited Academic Progress Holds
» Academic Advising
» 15 to Finish Enrollment Monitoring
» Talisma Campaigns
Student Success Initiatives
» Student Support Services – Continued support for students through:
» Academic Advising
» Career Services
» College-Based Centers for Student Services (CBA, CEHS and CST)
» Mathematics Assistance Centers
» Multicultural Academic Student Services (MASS)
» Park Library & Reference Librarian Services
» Residential Student Success Centers (Advising, Success Coaching, Professional Counseling Services
located in each on-campus residence hall complex)
» Office of Student Success (Success Coaching, Peer Mentoring, Virtual Peer Coaching)
» Tutoring & Supplemental Instruction
» Veterans’ Resource Center
» Writing Centers
October 2014
Vice President, Finance and Administrative Services
Budget Priorities
Committee Forum
October 2014
Budget Changes 2014
» State appropriations
» Update from April 2014
Budget Priorities
Committee Forum
October 2014
Budget Priorities
Committee Forum
CMU proposed tuition and state appropriations revenue as a
percentage of total university funds
70.00%
Tuition
State appropriations
60.00%
50.00%
40.00%
51.48%
48.75% 48.80% 50.44%
53.98% 55.67%
58.59% 57.72% 57.98% 57.44%
42.67%
30.00%
20.00%
10.00%
0.00%
26.70%
24.65%
24.17%
22.60%
21.76%
20.17%
19.17%
15.86%
16.15%
17.20%
17.54%
October 2014
State Appropriations
CONFERENCE COMMITTEE DETAILS
University
UM-Ann Arbor
Michigan State
Wayne State
Western Michigan
Central Michigan
Eastern Michigan
Grand Valley State
Ferris State
Oakland
Michigan Tech
Northern Michigan
Saginaw Valley State
UM-Dearborn
UM-Flint
Lake Superior State
Total
Sources:
Total
Percentage
Performance Total FY 2014-15 Change from
Funding
Appropriations
FY 2014
$15,941,400
$295,174,100
5.7%
14,831,300
264,429,100
5.9%
7,121,500
190,519,800
3.9%
5,463,000
102,742,000
5.6%
5,574,900
79,115,000
7.6%
4,495,700
71,771,100
6.7%
5,312,500
63,136,000
9.2%
3,450,500
49,087,000
7.6%
2,712,500
48,364,100
5.9%
2,449,300
45,923,100
5.6%
2,535,800
44,277,200
6.1%
1,619,200
27,610,200
6.2%
1,178,900
23,689,300
5.2%
1,399,500
21,337,700
7.0%
551,500
12,782,500
4.5%
$74,637,500 $1,339,958,200
5.9%
Higher Education Executive Budget Recommendation
House Fiscal Agency House Subcommittee Recommendation
Budget Priorities
Committee Forum
October 2014
Board Approved Resident Tuition Rates
» Undergraduate Tuition Rates
» On-Campus - $385.00/Credit Hour
» Global Campus - $387.00/Credit Hour
» Graduate Tuition Rates
» On-Campus Masters/Specialists - $507.00/Credit Hour
» On-Campus Doctoral - $583.00/Credit Hour
» Global Campus - $510.00/Credit Hour
» College of Medicine - $38,522/Academic Year
Budget Priorities
Committee Forum
October 2014
Undergraduate Tuition Rates
University
Wayne State
Saginaw Valley State
Grand Valley State
UM-Dearborn
Western Michigan
Michigan State
UM-Flint
Michigan Tech
Northern Michigan
Oakland
Eastern Michigan
Ferris State
Lake Superior State
UM-Ann Arbor
Central Michigan
*Preliminary Rates
Source: HEIDI Tuition & Fees
FY 2011
$301
244
303
315
310
372
287
401
270
310
282
331
300
395
346
4.51%
6.09%
5.21%
3.96%
7.27%
2.48%
3.99%
6.08%
5.33%
5.80%
0.00%
4.75%
8.70%
1.54%
2.06%
FY 2012
$327 8.64%
261 6.97%
324 6.93%
337 6.98%
330 6.45%
407 9.41%
306 6.62%
428 6.73%
288 6.81%
331 6.77%
291 3.19%
348 5.14%
312 4.00%
421 6.58%
358 3.47%
FY
$340
271
336
349
343
421
317
445
298
341
304
357
326
433
365
2013
3.98%
3.83%
3.70%
3.56%
3.94%
3.44%
3.59%
3.97%
3.47%
3.02%
4.47%
2.59%
4.49%
2.85%
1.96%
FY 2014
$370
281
348
362
355
429
328
458
309
354
315
365
336
438
374
8.82%
3.69%
3.57%
3.72%
3.50%
1.90%
3.47%
2.92%
3.69%
3.81%
3.62%
2.24%
3.07%
1.15%
2.47%
Budget Priorities
Committee Forum
FY 2015*
$382
290
359
373
367
440
338
468
311
354
322
373
338
445
385
3.20%
3.19%
2.90%
3.20%
3.20%
2.56%
3.00%
2.18%
0.65%
0.00%
3.20%
2.19%
0.60%
1.60%
2.94%
% Change
from
FY 2011
26.91%
18.85%
18.48%
18.41%
18.39%
18.28%
17.77%
16.71%
15.34%
14.19%
14.18%
12.69%
12.67%
12.66%
11.27%
April 2014
Expenditures
» FY2015 Expenditures
» Compensation (salary & benefit changes)
» New initiative funding
Budget Priorities
Committee Forum
October 2014
Budget Priorities
Committee Forum
CMU budgeted total expenditures (all funds) 2014-15
Overhead -0.26%
Scholarships 8.66%
Utilities 3.69%
Faculty salaries 20.83%
Supplies/Transfers
25.63%
Staff salaries 16.34%
Other compensation
4.69%
Benefits 16.10%
Cost of goods sold
4.32%
October 2014
New Strategic Investments
» Financial Aid - $6.9M
» 20.7% Increase from FY2013-14 to $39.9M
» Research Compliance - $346K
» Minimum Wage Increases for FY2014-15 - $691K
» Fund Marching Band uniforms - $75K
» Title IX – Golf & Lacrosse - $267K
» Incremental Cost
» Average Salary Increase 2%
Budget Priorities
Committee Forum
October 2014
Executive Vice President/Provost
Budget Priorities
Committee Forum
Topics of Campus Interest
» CMED Budget
» Actions to Increase Graduation in Four Years
» Assessment Rates Reconsidered?
College of Medicine Budget vs Actual FY14
Revenue
Tuition / Fees
Clinical
University Support
Carryforward
Other / In-kind
Total Revenue
Budget
Actual
$2,658,000
$6,456,000
$5,000,000
$4,852,000
$550,000
$19,516,000
$2,676,532
$4,055,016
$5,000,000
$4,852,626
$274,869
$16,859,043
Expenses
Education
Clinical
Research
Admin & IT
Other
Total Expense
$8,205,214
$7,684,989
$2,338,000
$7,351,479
$262,000
$25,841,682
$5,986,829
$5,278,722
$1,880,213
$5,272,710
$288,268
$18,706,742
Margin
-$6,325,682
-$1,847,699
Actions to Encourage Timely Graduation
» Enhanced Advising
» Centrally under ESS Division
» Dispersed under Colleges
» Success Coaches (ESS)
» Efforts by Faculty
» Retention
» Recruitment
» Curriculum Updates
» EHS Task Forces
Assessment Rates Reconsidered?
» Submitted Question: Different colleges have different tax rates. This
contributes to variation in professional development funds available
to faculty from one college to another. What investigation, if any,
has been done about the possibility of changing these tax rates?
Assessment Rates
»Model Development (FY99) and Model Revision (FY09)
» Assessment Rates Resulted from Existing Expenditure Budgets
» Instructional Costs Differ by Discipline
» Reductions/Investment use Delaware Cost Study as Benchmark
» Effective Assessment Rates Differ by Department (e.g. EGR vs
MTH)
» Professional Development Spending
» At discretion of College / Department
» Considered Relative to other Compelling Needs (GAs, equipment, etc)
OPERATING ASSESSMENT PERCENTAGES
FY 2008-09
FY 2009-10
FY 2010-11
FY 2011-12
FY 2012-13
FY 2013-14
FY 2014-15
FY 14-15 vs FY
08-09
49.44%
51.38%
48.69%
51.37%
48.81%
51.44%
46.95%
50.13%
47.62%
51.42%
46.45%
50.92%
45.94%
50.79%
-3.50%
-0.59%
61.42%
60.51%
53.69%
54.43%
61.25%
59.58%
53.60%
54.39%
61.30%
58.65%
53.65%
53.77%
60.36%
57.28%
52.67%
52.96%
61.44%
58.30%
53.27%
53.92%
60.95%
58.28%
52.70%
53.32%
60.74%
57.53%
52.44%
52.47%
-0.68%
-2.98%
-1.25%
-1.96%
Quasi-academic Centers
MSA Program
First Year Experience
80.97%
72.26%
80.55%
72.26%
80.56%
72.26%
79.74%
71.39%
79.74%
71.39%
79.74%
71.39%
79.74%
71.39%
-1.23%
-0.87%
Weighted Average %
57.91%
57.29%
57.12%
55.96%
56.75%
56.29%
55.84%
-2.07%
Academic Centers
Science & Technology
Communication & Fine Arts
Humanities, Social & Behavioral
Sciences
Education & Human Services
Business Administration
Health Professions
Note: Operating assessment percentages are set in accordance with RCM policies 19 & 24, relating to the operating assessment and base budget transfers. Examples of how the assessment
percentage would change include when base expenses shift from a service center to an academic unit, base expenses shift between academic units, base budget reductions occur in an
academic unit and new investments are made in an academic unit. The operating assessment funds service center budgets.
October 2014
Budget Priorities
Committee Forum
October 2014
Budget Priorities
Committee Forum
Number of Graduates
Comparison of State and CMU Teacher Graduate Loss Rates with Projections
Students Already
Lost
Projected Loss if
Continue at CMU
Slope
CMU Actual and Projected at Public Rate
CMU if Lose at Current Rate
CMU if lost at MI Public Rate
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018