Financially Sustaining the University

Geoffrey S. ChatasSenior Vice PresidentChief Financial OfficerBusiness and Finance

October 27, 2011

$5.0 Billion Budget

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Current Budget Environment

Restricted$0.9 B

Health System$2.3 B

Earnings$0.4 B

General Funds$1.4 B

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Where It Comes From

Government Support $0.92 Billion Student Fees $0.92 BillionOther Resources $0.85 Billion(includes auxiliaries, dept sales, private grants, endowment & investment income)Health System $2.3 Billion

Where It Comes From

How Funding Is Spent

AccessMaintaining financial aid for qualified

studentsSemester ConversionFinancial Stability

Protecting the university’s futureEnrollment, Academic Plan

Focus on Enrollment PlanMove Academic Plan forward

Health System $1.9 BillionInstructional and General $1.5 Billion

Instruction and Department Research - $0.89 BAcademic Support - $0.15 BStudent Services – $0.10 BInstitutional Support - $0.20 BPlant Operations and Maintenance - $0.13 B

Separately Budgeted Research $0.5 Billion OSU Physicians $0.34 BillionAuxiliaries $0.33 BillionScholarship and Fellowship $0.24 BillionPublic Service $0.13 Billion

How Funding Is Spent

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Being Innovative- Tough economic times means can’t count

on increase in state support- Federal dollars flat- No multi-billion-dollar endowment

Investing In Our Core

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Investing In Our Core

Remaining Competitive- Invest in academic core to attract

best and brightest- Funding things we cannot do now

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•Streamlining to Simplify and Reduce Costs•Enhancing Revenue Streams•Evaluating Non-core Assets

Rationale

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Generated Funds = Additional Academic & Student

Services & Support

Rationale

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Generated Funds…Maintain, Enhance

Current Services

Rationale

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• Process authorized by Board• Delegated decision-making• Consistent with other directives

Parking RFQ

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• No decisions have been made.• University-wide committee to review RFQ’s,

make recommendations

Parking RFQ

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Parking Advisory Committee

Parking RFQ

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• Fact-based decision• Chosen respondent will offer best package

- Funding- Services- Support- Experience

Parking RFQ

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• Long-term lease• Outside vendor• Up to 50-year lease• $600M+ revenue, avoided cost

Parking RFQ

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Vendors• High funding threshold to be considered• Solid foundation• Funding ready to invest

Parking RFQ

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• Midway through process• RFQ ready to review• RFP planned to be issued in early 2012• Implementation summer 2012

Timeline, Moving Forward

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We Will Continue to Own Our Parking Assets

Timeline, Moving Forward

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We Do Not Have All the Answers.

We Are Committed to Transparency.

Timeline, Moving Forward

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• Town Hall Meetings• Web Site

• Final Decisions Shared

Timeline, Moving Forward

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Questions?

Timeline, Moving Forward