fy 2016 budget review june 4, 2015 - wayne state...

FY 2016 Budget Review June 4, 2015

The Office of Budget, Planning and Analysis

Update on FY 2016 Budget Assumptions

Enrollment Update

Answers to Questions

Overview of Budget Reductions

Next Steps

2

Agenda

December 2014 Office of Budget, Planning and Analysis 3

Total MPU increase of 1.5% or $20.6 M FY 2016 WSU Allocation $0.8 M (0.4%)

Undergrad Critical Skills Awarded Research Expenditures Six Year Graduation Rate Total Degree Completion (includes graduate

degrees) Inst. Support as % of Core Expenditures % Student Receiving a Pell Grant

Impact on Total General Fund Budget Total General Fund Budget = $583M State allocation of $0.8 M equates to 0.14%

increase on total budget

Average MPU Increase over last three years is 3.4% vs. WSU of 1.6% If WSU would have received the average

increase in each year, it would have generated

FY 2016 Higher Education Approps.

4

Institution FY 2014 FY 2015 FY 2016 3 Year Avg

GVSU 4.2% 9.5% 3.0% 5.6%

OU 1.5% 6.1% 2.6% 3.4%

FSU 3.1% 7.8% 2.3% 4.4%

CMU 3.0% 7.8% 2.3% 4.4%

UM-F 2.1% 7.2% 0.2% 3.2%

NMU 2.1% 6.3% 1.7% 3.4%

MTU 2.1% 5.8% 1.6% 3.2%

EMU 1.2% 6.9% 1.5% 3.2%

LSSU 1.5% 4.6% 3.1% 3.1%

MSU 1.8% 6.1% 1.5% 3.1%

UM-AA 1.8% 5.9% 1.4% 3.0%

SVSU 1.3% 6.4% 1.8% 3.2%

WMU 1.8% 5.8% 1.4% 3.0%

UM-D 1.2% 5.4% 1.3% 2.6%

WSU 0.3% 4.0% 0.4% 1.6%

Tuition / Fee Assumptions

• Modeling Tuition cap increase of 3.2% – School of Medicine--2.0% for Yr 1 students; Freeze of Yrs 2-4

– Law School—Tuition Freeze for JD1, JD2 and JD 3

– College of Nursing—Reduction of Tuition Differential • Undergraduate $100 reduction per credit hour

• Graduate $235 reduction per credit hour

• Mort Harris Recreation Center Fee – Current fee of $25 is charged each semester to all students

– Fee has not been changed since inception 10 years ago

– Fee will be eliminated and incorporated into Student Services Fee

5

6

For a student taking 24 credit hours:

UM-AA tuition is 46% higher

MSU tuition is 15% higher

Institution

FY 2015

Tuition &

Fees

FY 2016

Tuition &

Fees

% Change $ Change

FY 2016

Variance

from WSU

MTU $14,003 $14,451 3.20% $448 $4,906

UM-AA $13,484 $13,915 3.20% $431 $4,370

GVSU $10,788 $11,134 3.20% $345 $1,589

WMU $10,686 $11,028 3.20% $342 $1,484

MSU $10,611 $10,950 3.20% $340 $1,406

UM-D $10,427 $10,761 3.20% $334 $1,216

LSSU $10,249 $10,577 3.20% $328 $1,032

UM –F $9,626 $9,934 3.20% $308 $390

NMU $9,326 $9,625 3.20% $298 $80

CMU $9,263 $9,560 3.20% $296 $15

WSU $9,249 $9,545 3.20% $296 $0

FSU $9,040 $9,330 3.20% $289 ($215)

OU $8,762 $9,042 3.20% $280 ($503)

EMU $7,751 $7,999 3.20% $248 ($1,545)

SVSU $6,954 $7,176 3.20% $223 ($2,369)

Average $10,015 $10,335

24 Credit Hours @ 2.8% Tuition Increase

FY 2016 Tuition Increases @ MPU’s @ 3.2%

Questions / Answers from Previous Meeting

Schools / College Budgets $205M

Schools / Colleges Budget $205 M School / College Enrollments—27,578

Business 5%

Education 5%

Engineering 10%

Fine Arts 6%

Grad 1%

Honors 1%

Law 4% CLAS

27% LIS 1%

Med 27%

Nursing 5%

Soc. Work 2%

Pharmacy 6%

Business 11%

Education 11%

Engineering 8%

Fine Arts 8%

Grad 0% Honors

0% Law 2%

CLAS 43%

LIS 2%

Med 6%

Nursing 2%

Soc. Work 3%

Pharmacy 4%

FY 2015 Budget (Continued)

8

FY 20search

0%

Nursing; 0% LIS; 0%

Business; 0% Law; 0%

Social Work; 1%

Engineering; 11%

Pharmacy; 3%

Education; 0%

CLAS; 12%

Med; 73%

What is the Research Award Distribution by College?

CFPCA; 11%

Nursing; 2%

Business; 12%

Social Work; 2%

Engineering; 10%

Pharmacy; 1%

Education; 7%

CLAS; 55%

CFPCA; 2% Nursing; 2%

LIS; 3%

Business; 4%

Law; 6%

Social Work; 8%

Engineering; 9%

Pharmacy; 10%

Education; 10%

CLAS; 11%

Med; 35%

Undergraduate Credit Hours--209,621 Grad/Professional Credit Hours—90,847

What is Credit Hour Distribution by College? Fall 2014

WSU Expenditures

Instruction 37%

Public Service 0%

Research 8%

Scholarships & Fellowships

11%

Institutional Support

12%

Academic Support

10%

Student Services

5% Auxiliary

1%

Plant Op & Maintenance

9%

Transfer 6%

Expenditure Allocation: “Natural” Classification vs. NACUBO Classification

Compensation 66%

Operating Expenses

16%

Facilities Services

7%

Financial Aid

11%

Natural Classification NACUBO Classification

11

WAYNE STATE MPU AVERAGE

CATEGORIES FY 2004 FY 2009 FY 2014 FY 2004 FY 2009 FY 2014

Instruction 40.3% 39.5% 37.3% 42.8% 40.2% 38.7%

Research 5.8% 6.9% 8.4% 1.8% 2.2% 2.8%

Public Service 0.4% 0.3% 0.3% 1.2% 0.7% 0.7%

Academic Support 13.7% 12.0% 10.3% 12.3% 11.7% 12.1%

Student Services 5.7% 6.3% 5.4% 5.7% 5.4% 5.5%

Institutional Support 11.2% 10.6% 11.8% 11.4% 11.5% 10.6%

Plant Op & Maintenance 12.1% 9.9% 9.4% 10.3% 10.7% 9.4%

Scholarships & Fellowships 5.9% 8.3% 10.6% 7.0% 8.9% 11.8%

Auxiliary 0.9% 0.0% 1.0% 1.2% 1.2% 1.3%

Transfer 4.0% 6.2% 5.5% 3.1% 3.7% 3.6%

How Do WSU Expenditure Patterns Compare to MPU Avg. over Time?

12

How Do WSU Aid Packages Compare to MPU’s?

13

FUND 2014/15 Aid Year Paid Total Merit Need Talent Activity Other

Presidential Scholarship 15,865,849 3,028 3,028

BOG Awards 12,245,793 4,599 4,599

Special Programs 5,521,469 1,463 63 169 123 819 289

Indian Tuition Reimb. 379,598 42 42

Detroit Compact 85,561 16 16

UNDERGRAD 34,098,270 9,148 3,091 4,784 123 819 331

Graduate School* 11,645,271 1,288

Medical School 7,037,534 675

Law School 3,860,966 208

Law School NR Tuition 425,000 17

GRADUATE SCHOOL 22,968,771 2,188

How Many Students Received Financial Aid?

Typically for graduate

awards, Student’s have

both a need and

Merit component

Where are the New Advisors Distributed?

Business CFPCA CLAS Education Engineering Honors Social Work

Student Affairs

Total

Academic Advisor I 4 0 1 0 5 0 0 1 11

Academic Advisor II 1 4 17 2 0 1 1 2 28

Total 5 4 18 2 5 1 1 3 39

• From the Retention initiative, 45 new advisors will be hired at WSU

• To date 39 advisors have been hired

• Table below shows the distribution of these advisors

15

How are Fees Assessed on Gifts? • Two types of fees assessed to help fund development

operations – Endowment Fee: 0.5%

• Administrative Fee on the average fair market value of endowment funds

• In FY 2014 the amount of revenue generated was $1,243k

– Cash Gift Fee: 2.0% • A one-time Administrative Fee on all incoming non-endowed cash gifts

• In FY 2014 the amount of revenue generated was $271k

• Payout Allocation – On existing endowments, there is a beneficiary account

payout amount of 4.5%

16

How is Quality Monitored in Curriculum Changes?

• Curriculum change originates with the faculty of a program • Further review of changes includes college-level faculty committees

and administrative approval • Basis for Curriculum Changes:

– Assessment of student learning – National disciplinary and pedagogical trends

• Process to Examine Potential Changes – Examination of best practices – Review of syllabi – Discussion with appropriate colleagues here and elsewhere – Student surveys (especially for graduate and advanced undergraduate

courses)

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Example: Changes in Nursing Curriculum

• Concern: The prerequisites for the BS in Nursing (pre-Nursing program) did not all prepare students for the Nursing curriculum and, specifically, Pharmacology

• Basis for curriculum change:

– National trend to reduce the Chemistry requirement – Universally where one course is dropped, the course is Organic – No reported harm to student preparedness

• Process to Examine Potential Changes:

– Review of Chemistry 1020 (Inorganic Chemistry) and 1030 (Organic Chemistry)

– Discussion with faculty who teach these courses – Thorough review of national best practices in Nursing programs – Nursing will continue to monitor student success to evaluate the

results of the change

18

Enrollment Update

Fall 2015—Undergraduate (FY 2016)

20

Total Undergrad Registration

21

Through Week #9—9,476 students, up 1.5% from 2014. (CLAS up 3.1%; CFPCA down 7.7%)

55% of students registered by this point based on weekly historical data.

7,000

7,500

8,000

8,500

9,000

9,500

10,000

10,500

11,000

11,500

12,000

Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13

Fall 2012 Fall 2013 Fall 2014 Fall 2015

Undergraduate Registration through week #9

Fall 2015—Graduate (FY 2016)

22

2,000

2,500

3,000

3,500

4,000

4,500

Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13

Fall 2012 Fall 2013 Fall 2014 Fall 2015

Total Graduate Registration

23

Through Week #9—3,696 students, up 8.9% from 2014

47% of students registered by this point based on weekly historical data

Graduate Registration through week #9

Enrollment Projections-Fall 2015

Total Headcount Enrollment

19

,34

2

18

,60

2

18

,34

7

17

,77

9

7,4

88

7,2

16

7,2

01

7,3

14

2,108 2,079 2,030 1,995

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Fall2012

Fall2013

Fall2014

Fall2015

Undergrad Graduate Prof

• Total headcount enrollment of

27,088—Down -1.05%

• Undergraduate (17,779):

− Down -3.3%

− Engineering, Social Work, and

Nursing up

• Graduate (7,314):

− Up 5.4%

− Engineering, Pharmacy and

Social Work are up

• Professional (1,995)

− Down -3.0%

24

28,938 27,897 27,578 27,088

Summary of Budget Reductions

School / Colleges Reduction Targets

26

Schools / Colleges • Over last five years, the

Schools/ College reduced budgets by: – FY 2016: $ 6.3 M

– FY 2015: $ 4.9 M

– FY 2014: $12.0 M

– FY 2013: $ 4.0 M

– FY 2012: $16.0 M

– TOTAL: $43.2 M

School/CollegeTOTAL %

REDUCTION

TOTAL $

REDUCTIONOriginal Target Variance

Business 5.1% $506,464 $611,668 ($105,204)

Education 4.4% $459,693 $569,289 ($109,595)

Engineering 1.8% $380,030 $601,503 ($221,473)

Fine Arts 3.1% $395,569 $529,424 ($133,855)

Grad School 3.6% $57,356 $66,103 ($8,747)

Honors 3.6% $46,578 $53,682 ($7,103)

Law 3.3% $278,803 $411,685 ($132,882)

CLAS 3.1% $1,679,345 $2,247,613 ($568,269)

LIS 3.9% $68,765 $96,077 ($27,312)

Medicine 3.6% $2,008,088 $2,314,322 ($306,233)

Nursing 1.7% $154,331 $205,682 ($51,350)

Pharmacy 1.5% $197,933 $204,399 ($6,466)

Social Work 1.5% $68,333 $70,565 ($2,232)

TOTAL 3.1% $6,301,290 $7,982,012 ($1,680,722)

How Did the Schools / College Score on the Metrics?

27

Total of

13 points

Reductions

28

Total Reduction of $506,464 (5.1%)

Retirement in Finance $135,075

Retirement in Marketing $147,884

Vacant Line in Accounting $151,895

Reduction of General Expense $29,900

Reduction of half-time faculty Management $30,762

Reduction of Funding Accounting Faculty line $10,948

Total $506,464

Business School

Concerns & Impact: 1. Reduction of Faculty Lines and impact from AACSB

2. More reliance on part-time faculty

• Smaller staff support for programs

3. Decline in enrollment as:

• Students’ completion to graduation slows

• Class sizes increase and learning experiences are less effective

• Less funding for recruitment

4. Smaller selection of classes for majors, leading to longer time to graduation

5. Limited funding for initiatives

29

Business School

Reductions

30


Retirement in TED (Teacher Education) $108,735

Retirement in TED $121,626



Reduction in General Expense $37,110

Total $459,693

College of Education

Impact and Concerns

• Reduced opportunity to recruit tenure-track faculty to replace the loss of 11 tenure line faculty (8 retirements & 3 took jobs elsewhere) – Loss of four leadership (senior faculty) positions

– Reduced ability to expand graduate enrollment

– Reduced ability to seek external funding

– Senior Faculty provided leadership and mentoring

– Note: Only 4 positions will be eliminated

• Increased hiring of part-time teachers and lecturers to cover required courses

• Potential for reduction in courses offered in upcoming years

College of Education

31

Reductions

32


Reduction of salaries in Chemical Engineering $45,470

Reduction of salaries in Electrical Engineering $6,710

Reduction of salaries in Engineering Technology $21,680

Reduction of salaries in Mechanical Engineering $67,474

Reduction of salaries in Computer Science $40,822

Reduction in Student Asst & PT Faculty $141,806


Total $380,030

College of Engineering

Summary of Impacts

Quality of Student Experience

▲ Increased class size

▲ Strain on teaching lab space and equipment

▲ Fewer staff supporting student needs

Quality of Research Program

▲ Fewer resources for cost sharing, start up, and research incentive

programs

▲ Limitations on providing competitive research facilities

College of Engineering

33

Reductions

34


Reduction of salaries in faculty positions in Art $116,926

Reduction of salaries in faculty positions in Music $49,853

Elimination of Assoc. Chair Position in Music $83,444

Reduction of salaries in faculty position in Comm $9,346

Reduction in PT Faculty $100,000


Total $359,569

College of Fine Arts

Proposed Budget Reduction Plan

– Impact of Budget Reductions • Loss of one faculty line

• Reduction in number of sections but not a reduction in number of “seats”

– Challenges

• Enrollment Stabilization

• Curriculum Revision, Reform, Programmatic

Focus

• Alternative Funding

• University Art Collection

College of Fine Arts

35

Graduate School

Reduction of $7,700 (0.5%)



Total $7,700

Impact and Challenges

• Ensure Proper space of for NIH funded BUILD initiative building

undergraduate pipeline to graduate programs

• NSF funded AGEP mentoring and community building efforts

• NIH funded BEST grant support for diverse student population

36

37

BUDGET

REDUCTION PLAN

Non Academic Line$17,578

• Labor funds to cover cut

• Impact – Fund to hire additional Faculty

Salary Residual= $29,000

• Cut to COS

• Impact – Retention and Graduation Results for COS

Summary Challenges:

Maintaining the program that brought

us good results

Recruitment

Retention

Graduation

Increasing workload

Faculty

Support Staff

Budget Reductions: $46,578 (3.6%)

Honors

Law School

Reduces Funding in Faculty Line(Property Transactions, Commercial)

$125,219

Eliminate PEBL Program Director Attachment $20,412

Reduction in Faculty Line $97,172

38

Reduction General Expenses $36,000

Budget Reductions: $278,803 (3.3%)

Impact and Challenges of Budget Reductions

• Cuts funding in two faculty lines, eliminating course offerings in Family Law, Property Transactions, Commercial Law and Criminal Law.

• Eliminates attachment funding for the Director of the Program on Entrepreneurship and Business Law (PEBL)

• Reduces funding allocated for recruitment of incoming students (printed documents, travel, etc.)

Law School

39

Reductions

40

Total Reduction of $1,679,345 (3.1%)

Reduction of salaries in faculty positions in Math (6 lines) $496,499

Reduction of salaries in Other Academic positions in College $377,722

Reduction of faculty positions in CMLLC $136,440

Reduction of non-academic salaries in college $120,618

Reduction of Salaries (English, PoliSci, CommSci, Econ) $456,332

Misc. Reductions $91,734

Total $1,679,345

Arts & Sciences

Impact of Reductions

• Reduction of 6.0 FTE faculty positions – Does not include phased retirements – Impacts CLAS’ research and teaching missions – More difficult to rebuild faculty over next several years to offset key

departures

• Almost every department, program and center in CLAS has experienced budget reductions in recent years

• Elimination of 6 academic staff • Elimination of 1 non-academic staff • The college has very little discretionary funds to support initiatives

and faculty start-ups, and to invest in growing its enrollment through entering new markets of students and developing online programs

Arts & Sciences

Depart. Name

Fund Description GF Budget

FTE Filled

Position

Position Budget

Category Salary

General Expense

Cumulative

SLIS 111175 Personnel 1.0 Vacant Faculty $62,157 $0 $62,157

SLIS 111175 Personnel 1.0 Vacant Non-Academic $6,608 $0 $68,765

Total Proposed

Reduction 1.0 $68,765 $0 $68,765

Library & Information Sciences

The reductions over the past several year have resulted in offering 10 fewer sections of classes than were offered in FY2012. Assuming an average of 25 students per class and 3 credits per class, we have eliminated 750 credits. LIS is not able to provide faculty with the same level of support for travel or research as were possible before the cuts, making it more difficult to recruit and retain qualified and desirable faculty.

42

43

Total Reductions of $2,008,088 (3.6%)

Academic

Department

OB $469,885

Immunology $ 167,788

Family Medicine $76,288

Pathology $324,883

Surgery $573,185

Pediatrics $71,470

BioChemistry $139,894

Total Academic $1,823,393

Non-Academic

Anatomy $57,048

Graduate Education $35,661

Development $91,987

Total Non-Academic $184,696

Total $2,008,088

Medicine

44

Reduction Impact & Challenges • Budget Impact

• Low Morale – Physical condition of Scott Hall and other facilities – Outages with lack of back up – The perception that future funding for faculty and start up will go to IBIO with none

for SOM

• Inability to take advantage of opportunity for exceptional new hires and start up due to limited funding

• Potential unfunded mandate regarding diversity committee recommendations • Unable to adequately pay productive faculty

• Challenges – Developing recruitment and start-up funding

– Improve diversity

– Balancing hiring with attrition to improve quality of research faculty and reverse trend of

declining research funding – Retention of productive junior and mid-level faculty

Medicine

Budget Reductions FY 2016

Reduction = $154,331 (1.7%)

• Retirement savings from two faculty ($154,331)

• IMPACT:

College of Nursing

• Loss of two productive researchers

• Inability to immediately fill two tenure lines

• Loss of research productivity/mentors

Retirement Savings

45

Pharmacy

FY 2016 Proposed Budget Reduction Reduction = $197,933 (1.5%)

Reduction Dollars

Description of Budget Reduction GF Budget

FTE

Position Budget

Category

Salary Reduction

General Expense

Cumulative Reduction Total

Reduction of Salary due to retirement

0.4 Faculty $70,000 $70,000

Reduction of Salary due to retirement

0.3 Faculty $40,597 $110,597

Reduction of Research Assistant Position

0.5 Research $20,000 $130,597

Reduction of Research Assistant Position

0.5 Research $20,000 $150,597

Reduce Assistant Professor - Clinical 0.3 Faculty $36,464 $187,061

General Expenses $3,536 $190,597

General Expenses $6,149 $197,933

Total Proposed Reduction 2.0 $187,061 $9,685 $197,933

46

Impact of Budget Reductions

IMMEDIATE (Program/Department Level)

• Pharmacy practice: Diminish capacity to partner with

businesses/employers that train students and employ graduates.

• Health Care Sciences: Less funds to attract top-tier researcher.

• Pharmaceutical Sciences: Less funds to attract top-tier researcher.

LONG TERM (College level)

• Reduce quality of the product that will reduce interest of employers in

hiring our grads, interest in prospective students in attending WSU,

and/or place us in jeopardy with accreditation agencies.

• Less flexibility in strategic decisions on enrollment and research growth.

Pharmacy

47

Proposed Budget Reduction Plan

Proposed Cut 1.5% - $68,333

• Changes to vacant faculty positions – Two faculty positions will be reduced to assistant

professor level freeing $32,092

– Reduce lecturer position by $9,909

• Research Center funding – Reduction of $25,922

School of Social Work

48

School of Social Work

Impact

•Will lose a senior faculty position

•Will lose buyout dollars that are routinely reallocated to support the school’s projects and programs:

• Learning community match

• Senior faculty who could contribute more to our research portfolio

• Part-time faculty and part-time non-instructional

• Travel

• Community engagement activities 49

Division Reduction Targets

50

Divisions • Over last five

years, the Divisions reduced budgets by: – FY 2016: $4.3 M

– FY 2015: $2.7 M

– FY 2014: $7.3 M

– FY 2013: $3.2 M

– FY 2012: $9.0 M

– Total: $26.5 M

Division

Orignal

Amount

Final

Amount

Change

from

Original

President $74,841 $19,758 ($55,083)

Provost $1,138,514 $1,138,514 $0

General Counsel $73,233 $21,332 ($51,901)

Gov't Relations $39,713 $20,713 ($19,000)

C&IT $522,140 $522,140 $0

Library $395,412 $395,412 $0

Research $642,049 $378,143 ($263,906)

Finance & Bus Ops $1,183,782 $1,183,782 $0

Development $348,249 $348,249 $0

Public Safety $245,437 $0 ($245,437)

Marketing $182,504 $182,504 $0

Athletics $97,377 $50,377 ($47,000)

Total $4,943,251 $4,260,924 ($682,327)

Division of the Provost

51

CategoryOriginal

Budget#

Salary

Reductions

General

Expense

Reductions

Total

Office of Provost $9,935,000 1 $179,763 $60,090 $239,853

Enroll Mgmt $6,677,000 6 $307,145 $0 $307,145

Ed. Outreach $10,800,000 6.5 $245,091 $35,574 $280,665

Student Success $4,233,000 2 $182,590 $12,119 $194,709

Undergrad Affairs $1,799,000 0 $27,108 $0 $27,108

Budget & Planning $1,936,000 1 $89,036 $0 $89,036

Total $35,380,000 17 $1,030,733 $107,783 $1,138,516

Reduction Target $1.14 M (4.6%)


52 FY 2016 Budget Reduction Plan - Summary

Expense Type FTE Amount %

Filled Full-Time Positions 7.7 $321,721 28.2%

Vacant Full-Time Positions 5.4 $198,878 17.5%

Excess Funding – Full-Time Positions $191,324 16.8%

Graduate Assistant Salary $8,720 .8%

Residual Position Savings $117,236 10.3%

Retirement Incentive Savings $115,994 10.2%

Part-Time Faculty Salaries 3.5 $71,425 6.3%

Part-Time Non-Academic Salaries $5,435 .4%

Supplies & Other General Expenses

$107,783

9.5% Totals 16.9 $1,138,516 100.00%


53

Provost Administration • Reduction of position funding will limit hiring flexibility, including the attraction of a full-time

psychiatrist for CAPS

• Reduction of academic program investment funds further limits the support the Office of the

Provost can provide to schools/colleges for strategic needs

Enrollment Management • Less ability to maintain a high level of student support and timely “customer” service

• Less timely processing of admission applications and financial aid disbursement, which will

impact enrollment numbers

• Decrease number and quality of recruiting activities, campus visits, and amenities needed for

marketing and recruiting (giveaways, brochures, etc.)

International Programs • Fewer resources and staff to support the increasing number of international students

• Fewer resources to recruit effectively outside of the U.S.

Undergraduate Affairs

• Reduction of residual salary funds which results in less money to support student activities



54

Educational Outreach • No slack in our staffing levels to ensure consistent coverage at all of our

extension centers

• Not enough resources to provide/maintain a basic level of operational services

and support

• Fewer resources for marketing our programs and engaging in recruitment and

retention activities

Student Success • Staff reductions in University Advising Center will be managed by the use of

student assistants to cover the front desk

• Staff reduction in Student Disability Services under Student Support Services will

be managed by increased use of technology and the transfer of one academic

staff position from University Advising Center. The installation of an online tool to

manage test and other accommodations in Student Disability Services changes

the nature of the staff needs.

Budget, Planning & Analysis

• Loss of salary savings will result in not hiring graduate students to help

with Big Data analytics initiative and elimination of undergraduate

student administrative assistant help

Description GF Budget

FTE Position Budget

Category Salary

General Expense

Cumulative Reduction

Total

University Libraries

Personnel 1.0 Non-Academic $74,046 $0 $72,686



Personnel 1.0 Other Academic $59,542 $0 $192,062





Contracts 0.0 General Expense $0 $54,009 $395,412

Total Proposed Reduction

7.0 $341,403 $54,009 $395,412

Libraries

55

Reduction Target $395,412 (4.6%)

Impact of Reduction

• Due to significant loss of staff (over 30 staff positions since FY2012), the Library operations have closed the Science and Engineering Library. Remaining staff were redeployed to other libraries in order to provide excellent service levels. This means that materials from the SEL are not readily available, and there are fewer quiet study locations for students.

56

Libraries

C&IT Budget Reductions

• Target reduction: $522,120 (4.6%) • Principles guiding decisions

– Protect student success programs (WSU strategic plan focus area #1) – Protect teaching & learning support programs (focus area #2) – Protect research support programs (focus area #3) – Protect new initiatives with significant financial ROI (focus area #6)

• Proposed budget reductions – Elimination of vacant HR CRM support position and fringes ($98k) – Extend depreciable lifecycle of servers, storage and network equipment for

non-academic systems ($198k) – Move Blackboard maintenance from general fund to omnibus/student service

fee budget permanently ($227k)

• Critical new investments needed – Wifi expansion - $3M capital + $300k operational – Contractual inflationary increases - $116k operational – IT security staff position - $110k operational – Video surveillance expansion - $250k capital + $130k operational – Student success data analytics - $280k operational

57

• Wireless networking – Wifi and cellular/broadband wireless demand growing faster than capabilities

• Growth in networked devices: tablets, smartphones, eBook readers, game consoles, TV’s, watches, glasses,

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Wireless devices at WSU first week of Fall

semesters

201

0

201

2

201

1

201

3

201

4

C&IT Budget Reductions

PROGRAM (in Thousands of Dollars)

OFFICE OF THE VICE PRESIDENT

Elimination of a .60 Non- Represented Position $ 68, 179

INSTITUTE OF GERONTOLOGY

Reduction of .58 Non- Represented Position to .4 $ 28, 787

OFFICE OF THE VICE PRESIDENT

Reduction in Special Equipment Program Funding $ 281,177

$

Budget Cut TOTAL $ 378,143

Budget Reduction = $378,143 (3.0%)

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Research

Key summary components – Impact, challenges and

opportunities

• Budget pressure continues with loss of $5M to OVPR last five years

• Efforts focused on reversal of the downward trend in research funding

• Establish Office of Research Development to support larger programmatic initiatives

• Budget reductions will potentially slow momentum

• Open IBio and launch recruiting efforts

• Continue broad faculty engagement

• Substantial increase in ICR projection is significant for budget views going forward

• Budgetary pressure across the institution

• Increasing workload from federal regulations

• Compliance workload increase due to increased regulations and guidelines

• Lingering silo mentality across the institution

• Time

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Research

Joint Parking Task Force Update

61

Finance and Business Operations

CategoryOriginal

Budget#

Salary

Reductions

General

Expense

Reductions

Total

Office of the VP $11,267,772 0 $29,081 $22,751 $51,832

FP&M $18,601,721 3.5 $277,032 $244,822 $521,854

Human Resources $4,410,919 3 $156,427 $28,075 $184,502

Fiscal Operations $3,478,753 0.5 $108,194 $51,829 $160,023

Investments $837,415 0 $38,521 $0 $38,521

Business Operations $936,487 1 $29,718 $13,360 $43,078

Procurement $1,167,235 1 $53,693 $0 $53,693

Housing Subsidy $1,400,000 0 $0 $130,000 $130,000

Total $42,100,302 9 $692,666 $490,837 $1,183,50361

Reduction Target $1.18 M (4.6%)

Joint Parking Task Force Update

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Office of the Vice President

CURRENT CHALLENGES--HR 1. Fully implement the HR model within units that are still

distributed.

2. Implement objective metrics to demonstrate that the HR

transformation is achieving the desired outcomes.

3. Improve the partnership and integration between Labor

Relations and Academic Personnel with HR through

more efficient and effective decision-making..

CURRENT CHALLENGES—Fiscal Ops 1. Balance fiscal responsibility and student success with

continual staff reductions and retirements.

2. Expand use of ACH capabilities within Banner, target of

70% of disbursements payments.

CURRENT CHALLENGES--Investment 1. Minimize cash pool investment income reduction

from declining investable cash balances, including

the outstanding $25 million in donations needed to

fund the IBio and SC buildings.

2. Maintain University’s credit ratings given

University funding situation

CURRENT CHALLENGES--Procurement 1. User acceptance of strategic sourcing initiatives.

2. Elimination of a senior buyer position in FY 2016 due

to across-the-board budget reductions.

CURRENT CHALLENGES—Bus Ops • Continuing erosion of funding levels for general fund

Reduced housing capital funding due to general fund

subsidy cuts.

• Continued declining student enrollment will have a

corresponding negative effect on auxiliary services.

• Net reduction in Business Operations general fund

budget has been almost $500K or 36.5% since Fiscal

2011 resulting in auxiliaries supporting an ever

increasing amount of general fund operations.

• Adjusting campus services to respond to a growing

international student population

CURRENT CHALLENGES—FP&M

• Continuing erosion of funding levels for general fund

facilities’ operations and maintenance.

• 65 of 85 buildings have had no substantive

component renewal in over 15 years. Most of the

buildings are supported by original, obsolete and

dysfunctional mechanical and electrical

infrastructure.

• High quantity of emergency and high priority work order

requests caused by equipment / system failures having

impact on Academic enterprise

• Absenteeism: On any given day 10-20% of the workforce

is out on vacation, comp-time, sickness or FMLA.

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FY 2016 Budget Reduction Plan

5

• Budget reduction of $348,249 (4.6%)

• Eliminate 3 FTE positions

• Remaining reduction from general expense budget

• Use salary savings to offset budget reductions

• Eliminate contract with fundraising consultant, Remington

Associates

• Reduction of previously approved Campaign Funding

Plan by $500,000 in FY16, FY17 and FY18

Development

63

FY 2016 Budget Reduction Impact

6

• Insufficient funding for follow up on regional engagement

solicitations and stewardship

o Over 15% of the university’s top prospects live in other

metropolitan regions

• Difficulty recruiting and retaining seasoned fundraisers and

professional staff

• Limited resources to support fundraising activities

• Current staffing levels do not support adequate qualification,

cultivation, and solicitation of known major gift prospects in

several schools and colleges (Business, Engineering, Law, Liberal

Arts and Sciences, and Medicine)

Development

64

Budget Cut Recommendations

65

• Reduction of personnel positions with least impact on office operations

• Investigating opportunities to blend publication and web graphic

designers to create organizational efficiencies

2015/16 Suggested Reductions General Funded

Advertising Activity (Recognition budget):

Reduction to advertising media $49,978

Human Resource Management (VP budget):

Salary savings and elimination of vacant positions $30,266

Elimination of publication Graphic Designer position $48,918

Elimination of administrative support personnel $29,717

Reduction of full-time Graphic Designer to part-time $23,625

Total Reduction $182,504

Marketing & Communications

Reduction Target $182,504 (4.6%)

Impact of Budget Reductions • Reduced advertising budget will decrease WSU’s visibility throughout

Michigan for the 2016 budget year.

– Media commitments for 2014/15 total $1,983,170 (supported with one-time and carryforward funding)

– Media expenditures for 2016 are projected at $1,513,475. • 23% reduction from 2015 media expenditures

• Projection includes $150,000 in carryforward funds from 2015 budget to minimize overall media budget reduction for FY 2016

• Reassignment of job tasks within the publication team, web designers and business manager to account for HR changes.

• Limited ability for new marketing initiatives to support recruitment and/or new university initiatives (graduate school recruitment materials, conference displays, etc.)

66

Marketing & Communications

FY16 4.6% Budget Reduction = $20,713 (2.4%)

• Elimination of Support for MLK Event $18,500

• Event will now be covered by President Office

• General Expense Reductions $ 2,213

Office of Government Relations


67

Past Budget reductions have severely limited resources for an

ever-increasing mandate negatively impacts all departments of the

Division of Government and Community Affairs:

• Lower visibility of WSU in DC and potential diminished influence in with

elected officials, federal agencies and the Administration--Federal

• Constrained in our ability to identify new federal research funding and

other grant funding opportunities.--Federal

• Diminished influence in Lansing--State

• Lack tools to efficiently and effectively communicate with and mobilize

supporters (alumni, donors, faculty, staff students, parents, business

and community leaders) to advocate on issues of importance in

Lansing and DC--State

• Unable to fully coordinate and implement the full complement of

Community Affairs programming--CA

• Weakened reputation as an institution highly engaged in the

community--CA

Office of Government Relations


68

Reductions

Total Reductions = $21,332 (0.87%)

– Labor Relations – reduction in salary – new labor

relations specialist: $10,616

– OEO Reduction and Reclassification of

position: $10,716

Office of General Counsel

69

Reduction Target = $19,758 (4.6%)

Opportunities for General Fund Reduction:

– Forfeit salary savings from VP’s TechTown

appointment

70

Economic Development

FY16 Budget

FY16 Budget Reduction = $50,377 (1.2%)

FY2015 budget = $5.2M

FY Reductions

2016 $50,377

2015 $64,471

2014 $100,000

2013 $102,000

Totals $316,848

Athletics

71

FY 16 Budget Reduction

• FY16 reduction will result in a 2.6% reduction in operating expenses

• Impact of reduction: – Reduce number of facility

improvements

– Elimination of special events

• Lions Open Practice

– Reduction in supplies and travel for team activities

Athletics


72

Next Steps

• BOG Meeting June 26th

– General Fund Budget

– Auxiliary Fund Budget

– Tuition & Fee Increases

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fy 2016 budget review june 4, 2015 - wayne state...

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