cwu financial updates 16... · course fees 1.3 dept summer 2.6 inventories 1.4 bfa commitment 2.6...
TRANSCRIPT
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George Clark, Vice President Business & Financial AffairsWith contributions from Joel Klucking, John Swiney, Chris Huss, Sharon Jonassen, Rhonda Schmidt and Missy Davis
CWU Financial UpdatesBoard of Trustees
July 23, 2015
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Agenda“State” Revenue• Tuition• State Funding • Projected Cost of Attendance
Auxiliary & Student Success Budget ProfilesFY 2016 & 2017 RecommendationsNext Steps / Questions
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State/Tuition Budget
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Legislative Budget Summary
• Tuition Roll-Back $13.4M
• Compensation $5.653M
• Degree Completion $1.5M
• Health Insurance Benefits $3.3M
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CWU Cost of Attendance to Fall SlightlyResident Undergraduate
Tentative RatesFY 2015
FY 2016 (Est)
FY 2017 (Est)Subject to Change
Base Tuition $7,245 $6,904 $5,919 Services & Activities Fee $696 $696 $731
Subtotal Tuition and S&A $7,941 $7,600 $6,650 Housing $4,580 $4,809 $5,049 Dining $4,759 $4,997 $5,247 Student Fees $1,080 $1,095 $1,095
Total $18,360 $18,501 $18,041 Projected increases/year $141 ($460)Cost difference per mo /9 mo $16 ($51)
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Enrollment to Increase ~100-300Annual Average Headcount +/-1%
(Generates tuition revenue of $61.2M and $55.2M in FY 16 and FY 17)
10,365
10,265
10,167
10,278
10,440
10,000
10,200
10,400
10,600
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
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Budget Assumptions
FY 2016 FY 2017
Faculty Bargaining Unit Increase of 4% + Promotions
Increase of 3% + Promotions
Classified Staff Increase of 2% Increase of 1.8%
Exempt Staff Increase of 2% Increase of 2% (tentative)
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Revenue forecast increasing from FY 2015 $295.2M
(state investment in operating and capital)$114.8
$41.4 $43.4
$19.6
$69.8
$12.8$7.6 $5.5
$119.6
$43.7$47.1
$19.6
$69.8
$12.9$7.6 $5.5
$0.0
$40.0
$80.0
$120.0
State/Tuition Auxilliaries Grant/Contracts Local Funds Capital S&A/522 Funds Internal Service Scholarship
Mill
ions
FY16 FY17
FY 2016 Revenue Forecast $314.9M
FY 2017 Revenue Forecast $325.8M
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$110.1
$114.1$112.3
$117.1$1.3
ASL Enhance Rev
$2.0
ASL Enhanced Rev
$111.4
$114.8 $114.4
$119.6
$105.0
$110.0
$115.0
$120.0
FY 2016 Original Stack FY 2016 Revised FY 2017 Original Stack FY 2017 Revised
Mill
ions
FY 15 CWU Strategies + Increased State/Tuition Revenue Stabilize Budget
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State Share of Ed Cost Grows from 35% to 48%
$68.8 $68.3 $62.7
$6.5
$40.2 $46.5 $56.9
$0.0
$40.0
$80.0
$120.0
FY15 FY16 FY17
Mill
ions
$115.5M $119.6M
Carryover
Tuition and Admin Fee
$114.8M
State Support State Support State Support
Tuition and Admin Fee
Tuition and Admin Fee
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12.3 17.4 20.9 18.8 3.3
C Stores Inventory, 0.5
Continuing Ed2.5Indirect
1.6
Other Fees1.9
Debt Policy Reserve6.6
Debt Policy Reserve6.4
Dedicated2.1
General Services, 0.4
Mandatory Fees2.2
Motorpool, 0.7Short Getz
1.5
Course Fees1.3 Dept Summer
2.6
Inventories1.4
BFA Commitment2.6
BOT 6% Reserve6.9
SS Bonds1.5
F F & E Replacement2.2
Emergent Issues…Workforce
1.7
Committed Operating Bud2.0
Unrestricted2.6
R&R Funds7.9
R&R Funds2.2
Maintenance Backlog15.0
Maintenance Backlog5.5
Nonrestricted (Maintenance)
5.4
Committed Committed Assigned Commitment Committed Assigned Committed Assigned Commitment Assigned
Tuition Aux Local S&A Internal Service
FY 2015 Carryover EstimatesNeed to address unmet liabilities, strategic
investments, and possible future budget gaps.
Reserve funds applied to 15M deferred maintenance
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Auxiliaries Budget Forecast
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Housing/Dining Increase in Rates Needed
Housing Revenue,
$19.9
Housing Revenue,
$21.8
Dining Revenue,
$11.6
Dining Revenue,
$12.7
$0.0
$10.0
$20.0
$30.0
$40.0
FY16 FY17
Mill
ions
Housing Revenue Dining Revenue
$31.5M$34.5M
• Anticipated increases in minimum wage
• General inflation
• New facility maintenance and renovation fund
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Student Success Budget Forecast
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FY16
FY 2016 S&A/SURC Budget is Sufficient(reviewing rate increase for FY 2017 to address wages, benefits, inflation, and maintenance backlog)
Sales & Service, $1.9M
Student Fees, $10.4M
Other Revenue, $0.2
$0
$2
$4
$6
$8
$10
$12
$14
Wages, $4,670,942
Benefits, $1,137,573
Utilities, $253,809
Repairs & Maintenance,
$235,433
Insurance, $132,469
Travel, $344,177
Admin Fee, $549,131
Debt Service, $2,606,596
Goods/Services & Misc., $1,719,031
Resources Net of Expenses, $858,016
$12.5M
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Proposed Investments and Revenue Changes
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StrategiesEnrollment Revenue Management System (ERMS)
Generate more applications - Outsourced
Leverage Pyramid brand refresh and Noel Levitz strategies in advertising and marketing materials
Enrollment Management (EM) Reorganization• Establish Recruiting Goals for Admission Counselors• Focus EM staff on increasing yield• Add 3 recruiter/counselors
Prospect/applicant assessment – outsource or budget $48K for equipment and training
Add (1 FTE) Capacity for Application Processing
Proposed:~$800K investment in Enrollment Recruitment
17
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• Academic & Student Life (ASL) Alternative Revenue targets are included in forecasts– $1.8M for FY 2016– $2.3M for FY 2017
• Enrollment Targets – current HC 10,167 for FY 2015 are still a stretch goal– 10,278 for FY 2016 +111– 10,440 for FY 2017 +162
• Backlog of Building Maintenance / Rate Increases– AUX $7.9M of carryover to begin to address $15M high-priority
repairs/renovation and $306M of insured value – $2.2M for S&A/SUB/REC carryover to address $5.5M of high priority
repairs/renovation on $68M of insured value
Major Challenges Still Ahead for CWU
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Summary
• Encouraging budget news– First time in 5-6 years CWU not required to address major
reduction and/or use carryover to fill out year deficits• Marketing/recruitment investments paying dividends with
increased enrollment• Budget streamlining positioned CWU for stability in FY16
– No structural deficits forecast per BoT guidance• ASL must hit revenue targets in FY16 and FY17
($1.8M/$2.3M) to create budget flexibility• Some 1-time funds available to address strategic initiatives or
future state cuts
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Requested Trustee Approval
1. Annual projected revenue forecast of $314.9M for FY 2016 and $325.8M for FY 2017
2. Annual forecast for Ledger 1 (state/tuition) revenue: $114.8M for FY 2016 and $119.6M for FY 2017
3. Ledger 1 budgets for FY16 ($114.8M) and FY17 ($119.6M)• No carryover funds required to balance budget• No structural deficits forecast for both years
4. Initial planning for a 5% increase in housing/dining rates –will address at November 2015 BoT meeting
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Questions?