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Budget Forum

Wednesday, June 2, 2010

2© 2010 Florida International University

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FLORIDA INTERNATIONAL UNIVERSITYBudget Forum

AGENDA Education & General Appropriations

State Appropriation Reductions

FY 2010-11 Budget

State Appropriations vs. Net Tuition

Incremental Revenue

Critical Investments

Gap

Public Education Capital Outlay (PECO)

Fundraising

3© 2010 Florida International University

STATE APPROPRIATIONS REDUCTIONSFY 2007-08 - FY 2010-11

- State Appropriations include recurring General Revenue and Lottery, but exclude Financial Aid, Risk Management and Other Pass-throughs such as health insurance increases and plant operations and maintenance for new buildings- College of Medicine is excluded.

125145165185205225245

228.411035

$10 $16

$30 $3

169.053263

$ M

illi

on

s

FIU loses approximately $60M in funding over 4 years

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4© 2010 Florida International University

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E&G STATE APPROPRIATIONS*FY 2010-11 Budget

Increases in FIU share of health insurance

Increases in FIU share of Plant Operations and Maintenance for new facilities

Increases in FIU share of retirement costs

Increases associated with legislative initiatives

New revenues will cover new costs (no discretionary revenue)

Impact of legislative line items and pass-throughs

FY 2010-11 Base Budget

FY 2010-11 Base Budget +

Passthroughs

50

75

100

125

150

175

200

160

165

170

175

180

185

190

169 169

$169M $ 184M 15

$ M

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ns

- Base budget excludes Financial Aid and Risk Management, $2.7M- Pass-throughs of $15M in FY 2010-11 Base represent cumulative appropriations since FY 2007-08- College of Medicine is excluded.

5© 2010 Florida International University

STATE APPROPRIATIONS vs NET TUITIONFY 2007-08 - FY 2010-11

5* Recurring State Appropriations- State Appropriations include General Revenue and Lottery, but exclude Financial Aid and Risk Management- College of Medicine is excluded.

FY 2007-08 Actual*

FY 2008-09 Actual*

FY 2009-10 Forecast

FY 2010-11 Budget

FY 2011-12Estimate

FY 2012-13Estimate

$0

$50

$100

$150

$200

$250

218 203

179 184 169 168

107 115

127 146

164

187

State Appropriations Net Tuition

$ M

illio

ns

FTE24,412

FTE24,511

FTE25,380

FTE26,454

FTE27,347

FTE28,938

6© 2010 Florida International University

FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11-10

10

30

50

70

90

110

130

150

Projected in Spring 2009 Actual / Forecast

E&G INCREMENTAL REVENUEFY 2010-11 Budget

Higher enrollment and tuition rates result in revenue increase of $20.1M, offsetting reductions in state appropriations, operating cost increases, and critical investments

*Includes the effects of enrollment growth. Includes College of Medicine of $2.4M. Revenue amounts are net of Financial Aid $5.7M and exemptions and waivers of $19.8M.

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FTE24,511

FTE24,412

FTE25,423

FTE26,535

$148.7M*$128.6M$115.4M$107.1MIncremental RevenueUndergraduate $8.9MDifferential $5.1MGraduate $3.8MCOM $1.2MLaw $1.1MFY 2010-11 Total $20.1M

7© 2010 Florida International University

CRITICAL INVESTMENTSFY 2010-11

Compliance and Support

Research & Graduate Education

Student Instructional Support

Despite state reductions, FIU has invested $57M in high priority areas since FY 2008-09

Hire research faculty clusters

Improve research infrastructure

Increase graduate stipends

Hire new faculty

Improve advisor to student ratio

Increase graduation and retention rates

Increase student support services: library, undergraduate office

Complete SACS accreditation and implement QEP

Strengthen Public Safety & Environmental Health & Safety operations

Enhance University IT and enterprise systems

Cover unfunded cost to continue expenses

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8© 2010 Florida International University

ESTIMATED GAP FY 2011-12

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Loss of Federal stimulus funds to state likely to occur; possible impact to FIU of a -9% reduction in general revenue funding

Expected additional net tuition revenues

Additional funding needed for critical investment and cost to continue expenditures

Gap

Current Budget reduction plan will be enough to use non-recurring funds to cover the shortfall in FY 2011-12

- $15 M

+ $18 M

- $ 8 M

+ $ 5 M

- $ 5 M

9© 2010 Florida International University

FIXED CAPITAL OUTLAYFY 2010-11

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PUBLIC EDUCATION CAPITAL OUTLAY

FIU Utilities / Infrastructure / Capital Renewal Roofs $6,221,914

Public Safety Building Supplement $1,272,772

Social Sciences - Phase 1 Completion $4,150,000

Science / Classroom Complex $3,982,942

Satellite Chiller Plant Expansion $7,000,000

Stocker Astrophysics Center $1,600,000

Student Support Services Building $17,646,976

TOTAL $34,874,604

Vetoed

10© 2010 Florida International University

FUNDRAISING*

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FY 2007-08 FY 2008-09 FY 2009-10 Forecast

0

10

20

30

40

50

60

31

43

50

$ M

illio

ns

* Amounts do not include State Matching

Embark on $750M capital campaign

On target to hit goals

Achieve endowment of $1 billion

Faculty and Staff Annual Fund Campaign in 2010-11

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Budget Forum

Wednesday, June 2, 2010