PASSHE Operating Budget

Finance, Administration, and Facilities CommitteeBoard of Governors

July 8, 2013

1999

/200

020

00/0

120

01/0

220

02/0

3 20

03/0

420

04/0

520

05/0

620

06/0

720

07/0

820

08/0

9*20

09/1

0**

2010

/11*

*20

11/1

220

12/1

3 (es

t.)

$0 $200 $400 $600 $800

$1,000 $1,200 $1,400 $1,600 $1,800

E&G Revenue (Constant) E&G Revenue (Nominal)

E&G BudgetDollars in millions

*FY 2008/09 E&G Appropriation is net of midyear budget cuts.**2009/10 and 2010/11 includes ARRA SFSF funds.

1988

/89

18% reduction ($90M)

PASSHE Funding and Enrollment History

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

0

20,000

40,000

60,000

80,000

100,000

120,000

$6

,80

3

$3

,86

4

1983/84 Through 2012/13 (estimated)In 2012/13 Constant Dollars

E&G Appropriation/ FTE Other Revenue/ FTE Total Annualized FTE Total FTE

106,814$14,257

History of Tuition and Average Fees2000/01 – 2012/13

22% less than 2010

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000 $

3,79

2

$6,

786 $500

$951

$4,

349

$8,

315

$400

$999

Tuition & Tech Fee COT Fees* Room & Board SGA Fees**

*COT Fees include Health Services, Instructional Support and "Other"**SGA Fees include Activity and Recreation and Student Centers

$9,041

$17,051National Average: $17,860National Increase: 112%PASSHE Increase: 89%PSU Average: $26,134PSU Increase: 95%*

Tuition and Average Fees2012/13 by University

22% less than 2010

BL CA CH CL EA ED IN KU LO MA M

I SH SLW

E $0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

Tuition & Tech Fee Room & Board Mandatory Fees

*Mandatory Fees Include: Health Services, Instructional Support, Activity, Recreation Center, Student Union, and "Other“ fees.

PASSHE Average: $17,051

Revised Budget ProjectionsDollars in Millions

Note: Numbers may not add due to rounding.

Revenue/Sources 2012/13 2013/14 $ %Tuition $831.1 $825.5 ($5.6) (0.7%)Fees 178.1 177.7 (0.3) (0.2%)State Appropriation 412.8 412.8 0.0 0.0%All Other Revenue 65.6 66.6 1.0 0.0%Use of Carryforward Funds 50.4 30.1 (20.3) (35.3%)Total Revenue/Sources $1,537.9 $1,512.6 ($25.3) (1.6%)

Expenditures & Transfers Salaries & Wages $787.8 $800.4 $12.6 1.6%Benefits 324.9 357.4 32.5 10.0% Subtotal, Compensation $1,112.7 $1,157.7 $45.0 4.0%All Other Expenditures/Transfers 425.1 431.9 6.8 1.6%

Total Expenditures & Transfers $1,537.9 $1,589.6 $51.7 3.4%

Revenue/Sources Less Expenditures/Transfers

$0.0 ($77.0)

1997/98

1998/99

1999/2000

2000/01

2001/02

2002/03

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

($100)

($50)

$0

$50

$100

$150

Appropriation Change Tuition Rate Increase Unmet Need

FY2011/12 includes the elimination of $20.7 million in line items and $38.1 million in federal ARRA SFSF funds.

E&G Budget Request vs. FundingDollars in Millions

Cost Containment Results

Efforts made in recent years to become more efficient and reduce costs include:• Workforce management--400 fewer funded positions• Streamlining course offerings and academic programs• Consolidated operations--such as electronic library

services, distance education and construction services• Better utilization of technology to improve operations

and student services• Multi-year collaborative procurements• Energy utilization reductionsOver the last 10 years, base budget reductions of $285 million have reduced PASSHE’s budget by 16%.

Projected Retirement Costs20

02/0

320

03/0

420

04/0

520

05/0

620

06/0

720

07/0

820

08/0

920

09/1

020

10/1

120

11/1

220

12/1

320

13/1

420

14/1

520

15/1

620

16/1

720

17/1

820

18/1

920

19/2

020

20/2

120

21/2

2

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

ARP SERS PSERS

2013/14 E&G cost increasefor SERS and PSERS:

$15 million

45%

36%

SERS Rates as % of Salary

2012/13 10.5%2013/14 15.1%2017/18 31.1%

2011/12 2012/13 2013/14 2014/15

Faculty $ 457.9 $ 477.6 $ 488.8 $ 500.9

AFSCME 111.9 114.1 117.6 123.5

SCUPA 21.9 22.5 23.3 24.3

Nonrepresented 108.0 111.3 114.6 118.6

Other 32.6 33.0 33.9 34.8

Students 22.6 22.6 22.6 22.6

Total Pay $ 754.9 $ 781.2 $ 800.8 $ 824.8

Change ($) $ 26.3 $ 19.6 $ 23.9

Change (%) 3.5% 2.5% 3.0%Not in Original Budget $22.2 $14.0 N/A

Estimated E&G Paythrough Life of Contracts

Dollars in Millions

Balancing the 2013/14 Budget

Tuition Rate Increase (%)

Total Revenue Increase

New Tuition Rate

Tuition Rate Increase ($)

1% $9,014,800 $6,492 $64 2% $18,029,600 $6,558 $130 3% $27,044,399 $6,622 $194 4% $36,059,199 $6,686 $258 5% $45,073,999 $6,750 $322 6% $54,088,799 $6,814 $386 7% $63,103,599 $6,878 $450 8% $72,118,398 $6,942 $514 9% $81,133,198 $7,008 $580

FY2012/13 resident full-time undergraduate tuition rate is $6,428 per academic year.