OSU FACULTY SENATE

Budget UpdateApril 8, 2010

FY10 Budget Outlook – Recap of FS Presentation Nov, 2009

E&G Budget•Budget balanced with $5.4 million in cuts•Possible additional reductions estimated at $7 million if tax measures fail

SWPS Budget•Budget balanced with $9 million in cuts•Possible additional reductions estimated at $5.4 million if tax measures fail

2009-10 Financial Variables•Tax measure vote, Jan 2010 – possible further reductions•State revenue forecast – possible further reductions•Furloughs – salary and benefits savings•Enrollment growth stability – increased tuition above budget•Indirect cost recovery – potential for marginal revenue above budget•Tuition rate – possible spring increase if needed

FY10 Budget – Change in Revenue & Expenses since Nov, 09

Net impactAdditional Revenue

•Recurring $8.0 - $9.0 million•Non-recurring $2.0 - $2.5 million

Additional ExpensesExpense increases due to tax measures & economic forecast $0

Additional Revenue•Tuition – revenue above budgeted $4.5 - $5.0 million•Indirect Cost Recovery – revenue above budgeted $1.0 - $1.5 million•Enrollment growth settle-up from Chancellor’s Office $1.7 million•Furlough – salary/benefit savings $2.0 - $2.5 million

Projected FY10 Fund Balance•E&G 11.2% (from 7.6% at start of year)•SWPS 7.7% (from 5.4% at start of year)

143.2

80.1

145.6

568.6

$ 467.4

68.7

38.2

69.0

38.8 38.0

71.1 80.9 265.2

$ 10.0 80.9

88.5 251.0

227.8 209.1

177.7 191.9

$315.0

Other Rev.

State funds

Net tuition & fees

$298.9

S&S, other

Salaries & OPE

$310.8

Other Rev.

State Funds

Net tuition & fees

$320.0

S&S, other

Salaries & OPE

$328.2

Other Rev.

State funds

Net tuition & fees

S&S, other

Salaries & OPE

$333.9

Other Rev.

State Funds

Net tuition & fees

Salaries & OPE

S&S, other

$693.1

$711.8

2010-11 (FY2011) 2011-12 (FY2012) 2012-13 (FY2013) 2013-15 (Biennium)

Key Assumptions, FY11-FY13

Enrollment Growth Revenue Reduction / Cost IncreaseResident – 1% Reduction in State Funding FY11-13 - 15%Non-resident – 5% + INTO PERS Increase – 6.5%Ecampus – 10% PEBB Increase – 10%New investments

Academic faculty - $4 millionNon-academic faculty - $2 million

Tuition Increase Non-recurring in facilities, IT, etc. - $5-$10 millionResident – 8% Non-resident – 3.5% Salary increase – 3%/yearPlateau continued

OREGON STATE UNIVERSITYOSU Education & General Funds (excludes Cascades Campus)

(millions of dollars – not to scale)

Fed. Stimulus

REVENUE REVENUE REVENUE REVENUEEXPENSE EXPENSE EXPENSE EXPENSE

FUND BALANCE AS A % OF REVENUE

8.0%

3.0%