Faculty Senate Report

Wesley Stites

Financial Advisory Committee

Robert Brady COMM ARSCMichael Thomsen AEAB AFLS Fran Hagstrom RHRC EDHPLonnie Beard LAW LAWDan Worrell MGMT WCOBRobert Babcock CHEG ENGRWesley Stites CHBC ARSCVacant JARCH

Judy Schwab ADMN Ex-OFFicioKathy Van LaningHam ADMN Ex-OFFicio

January 15, 2014

Advancement• Meeting with Don Pederson, Nov. 13,

2013• Caused by spending increase without

budget increase• Cumulative Deficit at end of FY12 $3.8

million• Reserve Funds from Global Campus used

Advancement• Budget must increase by ~$2 million to

meet expenses• Projected two years to accomplish• Shortfalls to be met with reserve funds

until then

Advancement• Hires that caused shortfall were approved,

but approvers didn’t check to see if funds were available

• Funds won’t always be there when hiring• Assoc. VC for Budget and Financial

Planning hired – Tim O’Donnell

Advancement• No serious spending reduction in

Advancement contemplated• From 2009 to 2013, spending in

Advancement increased by ~10% every year

UNRESTRICTED E&G (0102) BUDGET ALLOCATION SUMMARY

FY-2009 FY-2010 FY-2011 FY-2012 FY-2013 FY-2014Chancellor & Gov't. Relations 1,735,874 1,760,705 1,630,148 1,759,246 1,443,620 1,636,541 Advancement 3,990,309 4,046,900 4,072,971 4,557,698 4,790,417 6,048,700 Finance & Administration 12,202,944 12,125,215 12,234,993 13,388,595 14,844,222 16,871,984 Information Technology 7,087,152 7,082,381 7,064,013 7,470,852 9,546,389 11,428,894 Scholarships/Waivers 5,418,146 5,418,146 5,666,984 6,013,748 6,734,081 7,426,307 Debt Service 6,321,831 6,629,202 6,629,202 6,629,202 8,108,867 8,277,783 Contingency Reserves 7,144,190 9,538,510 9,256,432 7,030,608 6,385,531 12,326,658 Facilities Management 12,270,047 12,143,858 12,334,911 14,260,912 16,108,037 17,079,120 Utilities 13,369,107 14,083,663 14,549,670 15,622,581 16,772,866 18,019,652 Academic Affairs 9,989,152 9,906,206 8,488,437 9,502,226 10,051,756 10,478,878 Misc. Scholarships 3,829 3,829         Summer School     3,472,037 3,507,581 3,719,379 3,772,227 Mullins Library 8,054,322 8,070,992 7,944,148 8,423,849 8,818,305 8,911,340 Diversity           1,075,768 Student Affairs 3,867,200 3,840,331 3,161,244 3,131,128 3,468,084 3,335,591 Arkansas Union 151,309 151,309 151,309 151,309 1,254,669 1,240,444 Enrollment Services 3,853,795 3,846,224 4,841,139 5,395,266 6,305,863 6,357,246 Undergraduate Scholarships 9,669,816 9,969,816 10,269,816 10,569,816 11,143,816 11,282,645              Honors College 1,734,669 1,739,283 1,692,034 1,611,079 1,767,421 1,868,181 Graduate School 7,498,468 7,371,723 7,740,004 2,652,446 2,780,641 3,430,030 Graduate Fellowships 1,771,899 1,771,899 1,815,492 1,872,164 1,974,510 2,019,148 Vice-Provost for Research       6,300,242 6,690,922 7,050,496 Agriculture 7,456,433 7,489,980 7,852,712 7,808,328 8,451,315 8,636,103 Architecture 3,626,148 3,605,672 3,664,718 4,310,024 4,592,935 4,877,970 Arts & Sciences 41,230,508 41,236,158 42,011,716 44,725,771 51,976,599 55,145,882 Band, Music, I.S. Scholar. 722,091 722,091 750,293 787,808 933,518 963,415 Business Administration 16,998,776 17,033,388 17,527,637 18,581,101 20,699,177 21,655,280 Undergraduate Scholarships 8,985 8,985 8,985 8,985 8,985 8,985 Education 11,969,970 12,074,168 12,289,782 14,280,314 18,352,025 19,063,265 Engineering 17,043,604 16,924,577 17,434,865 18,231,990 20,117,970 20,787,670 Law (includes Legal Educ) 8,736,841 8,642,718 8,770,008 9,521,733 9,914,840 9,988,508 Law Scholarships 832,892 832,892 867,275 958,059 999,253 1,064,452 Utility Costs 484,000 496,894 443,100 476,735 424,371 346,715 Debt Service 520,587 521,162 521,987 523,057 480,942 463,998 Continuing Education 3,650,977 3,643,584 3,660,713 3,586,990 3,765,774 2,985,708

SubtotalsAcademic & Academic Support 150,999,380 151,047,961 156,260,672 167,240,506 186,759,141 193,990,183 Non-Academic 78,416,491 81,684,500 82,558,103 86,410,937 96,667,959 111,935,401

Total 229,415,871 232,732,461 238,818,775 253,651,443 283,427,100 305,925,584

Development Spending 7,939,511 10,835,245 11,858,576 13,227,051

From FY09 to FY12, Advancement expenditures rose by 66.59%; an average increase of 18.54% every year.  In comparison, the overall University budget grew by 10.56% over the same period, only 3.40% a year. 

Fiscal Year

2009 2010 2011 2012 2013 2014 2015

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It takes money to raise money, but…

• CASE/NACUBO study “Expenditures in Fund Raising, Alumni Relations, and other Constituent (Public) Relations” 1990– Mean of 16 cents spent per dollar raised.– Median of 11 cents spent per dollar raised.

• California State University system 2001-2003– Mean of 16 cents spent per dollar raised.– Median of 16 cents spent per dollar raised.

Overall Budget – FY 15• Meeting with Don Pederson, Chancellor,

Provost, Senate Executive Committee Dec. 3, 2013

• Minimal growth in student body this year• No appropriation increase this year• Tuition increase is only means for funding

increase• Budget increase of $13.1 to 15.4 million

results in FY15 - FY14 increase was $25.5

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2009 2010 2011 2012 2013 2014 2015

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Academic & Academic SupportNon-AcademicTotal BudgetDevelopment Expenditure Projected Total Budget

If this projection is correct, the total University budget will grow overall by

about 39% in FY15 from the FY09 basis, an annualized rate of 6.8%. 

Proposed major increases in personnel spending

• 9 new TT faculty lines across entire University, $992K

• 3 new NTT faculty lines, $100K (2 are one-time money next FY)

• 2% pool for raises; perhaps 2.5% faculty, $3.5M

• Expansion of UAPD, $358K

Other proposed major spending increases

• Utilities $1.1M• Development $500K• Garvan Gardens $300K• Start up $750K• Library $928K• Intersession $474K• Univ Perspectives, Office of Retention,

Pathway to Graduation $832K• FAMA non-utility $717K• ARSC prior growth $750K