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BUDGET PRESENTATIONJanuary 27, 2017
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…WHAT WE KNOW SO FAR
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NU ‘State-Aided’ Budget
SOURCES
State Appropriations62%
Tuition35%
Other3%
Two primary funding sources:State tax dollars and student tuition
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WHAT WE KNOW SO FAR
• State fiscal challenge
• Governor holding back 4% of appropriations
• Governor recommends $13,322,749 as discussed– Managed by hiring freeze and other cost cutting measures
• Governor recommends $12,168,724 cut in FY18 and an increase in FY19 of $6,765,809 that will result in a $5.4 million cut to the FY17 base.– Excludes commitment for $3 million per year for iEXCEL support
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FREQUENTLY ASKED QUESTIONS
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UNKNOWN CONSEQUENCES
• How big of a cut?
• Will you raise tuition?
• Will you cut programs/people?
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Doesn’t NU have a $2.5 billion budget?
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The NU Foundation has over $2 billion in assets. Just get some money from them…
RESTRICTED99%
UNRESTRICTED1%
99%of Foundation Funds Are
RESTRICTED
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HASN’T STATE SUPPORT TO NU GROWN OVER TIME…
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NU State Appropriation History
$583
$300
$400
$500
$600
2000 2005 2010 2015
Great Recession
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NU State Appropriations per FTE Student (inflation (CPI) adjusted)
$13,709
$12,541
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2000 2005 2010 2015
Challenge: state support has been unable to keep pace with inflation (CPI) and NU’s enrollment growth
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21.2%
13.3%
1984 1989 1994 1999 2004 2009 2014
NU Share of State of Nebraska Budget1984 to 2017
Trend: NU becoming smaller portion of State Budget
8% share decrease equivalent to over
$350 million
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State Appropriation Growth of State AgenciesFrom 2000 to 2017
172%
133%
91% 89%
76%66% 64%
57%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Medicaid Corrections All Other StateAgencies
Total StateAppropriations
CommunityColleges
State Colleges K-12 NU
Source: Legislative Fiscal Office budget reports
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WHY SHOULD STATE TAXPAYERS INVEST IN NU…
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NU EDUCATES NEBRASKA’S HEALTHCARE WORKFORCE70% of Nebraska’s health professionals were trained at UNMC
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NU SUSTAINS NEBRASKA’S WORKFORCE1 of every 36 jobs in Nebraska are the result of NU activities
NU supports 35,000 jobs in Nebraska. These include not only NU employees, but 19,000 jobs that result from NU activities.
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THE UNIVERSITY OF NEBRASKA HAS AN ANNUAL$3.9 billion impact on Nebraska’s economy
NU’s education, research and outreach activities contribute $10.7 million every day to Nebraska’s economy.
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What’s Next…
• Governor’s Budget introduced – January 12
• NU Appropriations Hearing – Late February / Early March
• Final State Budget ~May
• NU Budget and Tuition – June
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Budget Response Team
• Guiding Principles:1. Protect academic integrity2. Protect affordability
• Magnitude of Issue:1. $13.3 million in one time cuts prior to June 30, 20172. $58 million deficit for next biennium Gap can be closed by: TUITION AND CUTS
• History Lesson:1. Mid-year cut in 2003 and following year resulted in: HUGE tuition
increases; cuts; and a loss of over 1,500 students
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What does this mean for the future of NU?
• EFFICIENCIES: (20% of Spend)– $5 million
• CUTS: (80% of Spend)– $26,200,000– Equates to approximately 350 jobs
• Assumes $75,000 job including benefits
• TUITION:– 7% Resident Tuition (Assumes -1.5% enrollment impact)
• $18.3 million revenue gain
– 7% Non-Resident Tuition (Assumes -1.5% enrollment impact)• $12.8 million revenue gain
-- FIGURES BELOW PROVIDED TO ILLUSTRATE MAGNITUDE OF ISSUE --
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Budget Response TeamPresident Hank Bounds
Steering CommitteeChair: Susan Fritz Vice Chair: Jim Linder
Bob Whitehouse, BoR David Woodman, UNL Anthony Flott, UNO James Blackledge (external)
Marjorie Kostelnik, UNL Rachel Flaugh, UNK Jeff Gold, UNMC Spencer Hartman, UNL
Working Groups
Information TechnologyChair: Mark Askren, NU/UNL
Brian Lancaster, NM Sharon Welna, UNMCDon Mihulka, NU Patrick Davlin, UNORick Haugerud, NU/UNL Rod Markin, UNMCDavid Swanson, UNLBret Blackman, UNODave Nielsen, UNODeb Schroeder, UNKNoah Rogoff, UNK
Facilities ManagementChair: Mark Miller, UNL
Kevin Hunt, UNKBecky Koller, NULee McQueen, UNKJohn Amend, UNOBill Nunez, UNLJennifer Bartholomew, NM
Financial Operations/AccountingChair: Deb Thomas, UNMC
Vice Chair: Rod Markin, UNMCCarol Kirchner, UNO Jeff Bassford, UNLChris Jackson, UNL Chris Kabourek, NUJon Watts, UNKDonde Plowman, UNLJohn Bartle, UNOMike McGlade, UNMC
Human Resources/PayrollChair: Bruce Currin, UNL
Mary Petroski, UNKAileen Warren, UNMCDrew Nielsen, UNOLaura Wakefield, UNOGayle Schanou, UNLCharlotte Frank, UNLSheryl Gartner, NUBrian Schlichting, NU
PR/Communications/MarketingChair: Jackie Ostrowicki, NU
Vice Chair: Teresa Paulsen, UNLMelissa Lee, NUBob Bartee, UNMCMolly Nance, DWFIErin Owen, UNOKelly Bartling, UNKDoug Parrott (external)
ProcurementChair: Jeff Elliott, UNMC
Vice Chair: Maggie Witt, UNLScott Benson, UNKJulie Davids, NUJohn Tencer, NUJackie Allensworth, UNLCarmen Maurer, NUBill Conley, UNO
Printing/CopyingChair: Emily Poeschl, UNO
Vice Chair: Robert Jennings, UNMCJohn Yerger, UNLKyle Means, UNK
EnergyChair: Ken Hansen, UNMC
Vice Chair: Tim Burke (external)Toby Badura, UNKDavid Yuill, UNLDarren Dageforde, UNMCLarry Morgan, UNOJim Jackson, UNL
Digital EducationChair: Mary Niemiec, NU
Vice Chair: Chris Marvin, UNLKim Carlson, UNK Daniel Cloonan, UNMCDavid Booker, UNO Gloria Vavricka, UNKJaci Lindburg, UNOPam Boyers, UNMCMarie Barber, UNLWalter Weir, NURay Schroeder (external)
TravelChair: David Lechner, NU
Kim Phelps, UNL Keith Swarts, UNMCMichael Christen, UNKKT Nelson, UNMCTeresa Carlson, UNOLaura Gonnerman, NUKevin Harford, NUJim Vogel, UNLJami Hagedorn, UNL
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ONE UNIVERSITY. FOUR CAMPUSES. ONE NEBRASKA.
Budget Response Team: Timeline
• Thursday, January 26: Kickoff Meeting
• Week of January 30: Campus Forums
• Monday, March 27: Working group recommendations due to the Steering Committee
• Monday, April 10: Steering Committee’s recommendations due to President for consideration in consultation with the chancellors