the statewide budget context and western illinois university’s mission … · 2019-07-05 ·...
TRANSCRIPT
![Page 1: The Statewide Budget Context and Western Illinois University’s Mission … · 2019-07-05 · Order of Presentation 1. FY 2002-2017 Funding Trends 2. Budget Parameters 3. FY 2016](https://reader034.vdocuments.mx/reader034/viewer/2022042400/5f0e7e2e7e708231d43f82d8/html5/thumbnails/1.jpg)
The Statewide Budget Context and
Western Illinois University’s
Mission-Driven Planning and Results
Presented to the Western Illinois University Board of Trustees
October 7, 2016
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Order of Presentation
1. FY 2002-2017 Funding Trends
2. Budget Parameters
3. FY 2016 Actions
4. FY17-18 Plans and Preliminary Results
5. WIU’s Financial Health
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FY02-17 Funding Trends
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Fiscal Year 2002-2017 Funding Trends
• The State continues to invest less GRF
in Illinois public higher education
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GRF Funding: FY02-16
(dollars in thousands)
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$300,000$400,000$500,000$600,000$700,000$800,000$900,000
$1,000,000$1,100,000$1,200,000$1,300,000$1,400,000$1,500,000$1,600,000
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
16-1
7
Illinois Public Universities Western Illinois University
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Annual Percent Change in GRF Funding
FY 03-15
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
03 04 05 06 07 08 09 10 11 12 13 14 15
Illinois Publc Universities Western Illnois University
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Annual Changes in GRF Funding: FYs 16-17
(dollars in thousands)
$14,900
$77,100
$31,400
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Stop GapFunding
FY15 Benchmark
• Currently Not
Available
oOnly after December
31, 2016, when
spending
authorization expires
• However, benchmark
appropriations to
FY15 are available
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Changes in GRF Funding: FY 16 and 16-17
Received60%
Not Received
40%
• $46.3 M
received$77.1 M
benchmark
• Represents 60% of
expected funding
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Cumulative GR Budget Declines
FY03-FY16 (current)
-40%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
03 04 05 06 07 08 09 10 11 12 13 14 15 16-17
Illinois Public Universities
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Budget Parameters
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Legislative Audit Commission Guidelines
Included Within University Budgets Stipulations
GRF Unrestricted
Tuition Unrestricted
Auxiliary Facilities System Restricted
Other Non-Appropriated Restricted
Excluded From University Budgets Stipulations
State Capital Construction Separate Bill
Foundation Income Separate Legal Entity
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Western Illinois University
FY17 All Funds Budget
21.7%
31.4%22.0%
24.9%
State Appropriation University Income
Auxiliary Facilities System Other Non-Appropriated
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Western Illinois University
FY17 All Funds Budget
53.1%
46.9%
Unrestricted Restricted
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Western Illinois University
FY17 All Funds Budget
79.2%
20.8%
Western Illinois University Budget
Personnel Operating
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Fiscal Year 2016
Actions
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FY 16 Actions to Increase Revenue
1. Initiated the Presidents Executive
Corporate Cluster
oQuad Cities
o Saint Louis
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FY 16 Actions to Increase Revenue
2. Expanded dual enrollment agreements
and outreach
o Signed Agreements with Elgin and Moberly Area
Community Colleges
o Initiated discussions with Heartland, Lewis and
Clark, Saint Louis, and Southwestern Illinois
Community Colleges
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FY 16 Actions to Increase Revenue
92.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Fill Rate
3. Implemented high
demand programs
and Formats• Established Hybrid
Master’s MBA and CSP
programs
• Offered 7 sections
• 126 course enrollments
137 available seats
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FY 16 Actions to Increase Revenue
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%3. Implemented
high demand
programs and
Formats• Goal: Offer at least
10% of courses in
irregularly scheduled
format (weekend,
distance)
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FY 16 Actions to Increase Revenue
4. Completed Price Sensitivity and
Elasticity Study• 3% tuition reduction for new undergraduate students
• Instate tuition for all undergraduate and graduate
domestic students
• No fee increases
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FY 16 Actions to Decrease Expenses
1. Limited replacement hiring. Fall 2015
workforce size is down:
A. 26 faculty positions
B. 8 administrative/professional positions
C. 25 civil service positions
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FY 16 Actions to Decrease Expenses
2. Implemented Retirement Incentive
Program. A total of 59 employees took
advantage of this programA. 8 faculty members
B. 12 administrative/professionals
C. 39 civil service
Total Cost Savings: $85,100
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FY 16 Actions to Decrease Expenses
3. Reduced 12 month contract lengths for
five employees
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FY 16 Actions to Decrease Expenses
4. Engaged in Layoffs
A. 110 layoffs
B. 87 call backs
Total Cost Savings: $486,000
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FY 16 Actions to Decrease Expenses
5. Began January 2016 voluntary pay
reductions or equivalent donations for
o President
oVice Presidents
o Senior Academic Administrators
Total Cost Savings: $206,700
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FY 16 Actions to Decrease Expenses
6. Enacted June 2016 furloughs and a
voluntary pay reduction program for all
non-negotiated personnel earning more
than $40,000 annually
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FY16 Furlough Schedule:
Non-Negotiated Staff
Annual
Income
Number
of Days
$40,000 - $49,999 6
$50,000 - $74,999 10
$75,000 - $99,999 12
$100,000 - $124,999 13
125,000 - $149,999 14
$150,000 and above 15
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FY16 Furlough and Voluntary Pay
Reduction Plan
• Includes
o 479/1,101 non-negotiated employees
• Excludes
o 264 employees due to annual income levels
o 358 employees not paid from appropriated funds
Total Cost Savings: $1.2 million
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FY 16 Actions to Decrease Expenses
7. Enacted Academic Program Elimination
Review (APER) Committee
oDisestablished African American Studies,
Philosophy, Religious Studies, and Women’s
Studies majors
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FY 16 Actions to Decrease Expenses
8. Implemented a hiring freeze
Total Cost Savings: $1.2 million
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Fiscal Years 2017 and 2018
Plans and Preliminary Results
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Planning Parameters
1. We will be guided by strategic planningA. Higher Values in Higher Education 2012-2022, 2106
Supplement, and future Supplements
2. Will continue to make very difficult but necessary decisions
A. $3.1 million in personnel cost savings
3. Our decisions will respect our students
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Planning Parameters
4. Decision making will reflect the core
value of social responsibility and respect
for:
oAdministrative processes
o Shared governance
oGood faith bargaining
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Planning Parameters
5. We will continue to:
A. Do what is best for Western Illinois University
B. Ensure a strong and viable university that exists
to serve students and its host communities for
decades to come
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Plans and Preliminary Results:
Increase Revenue
1,400
1,500
1,600
1,700
1,800
1,900
2,000
New Freshmen Enrollment
1. Support
aggressive
recruitment• Stabilized new
freshmen enrollment
after 6 years of
decline
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Plans and Preliminary Results:
Increase Revenue
4
24
46
68
138153153
167
0
20
40
60
80
100
120
140
160
180
Engineering Enrollment2. Continue establishment of high demand programs and formats
A. Master’s in Business Analytics (5 students)
B. Master’s in Community and Economic Development (7 students)
C. IBHE approval for Mechanical Engineering
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Plans and Preliminary Results:
Increase Revenue
62.0%
64.0%
66.0%
68.0%
70.0%
72.0%
74.0%
First Year Retention Rates
3. Supporting Persistence
A. Building Connections
B. Persistence and Completion Academy
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Plans and Preliminary Results:
Increase Revenue
$9.9
$11.1
$11.6
$9.0
$9.5
$10.0
$10.5
$11.0
$11.5
$12.0
FY 14 FY 15 FY 16
Contracts and Grants(Dollars in Millions)
4. Intensify pursuit
of external
funding
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Plans and Preliminary Results:
Increase Revenue
5. Identify new revenue streams
A. There are 67 new partnerships with 38 regional
employers as a result of the President’s
Executive Corporate Cluster
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Plans and Preliminary Results:
Increase Revenue
6. Position the University for the next
comprehensive fundraising campaign
A. Development Officers began reporting to the
Vice President for Advancement and Public
Services on July 1.
B. For FY 2017, all development officers identified:
1. Prospects, potential funding, and interest areas
2. Fundraising plans
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Plans and Preliminary Results:
Increase Revenue
7. Advocate with business, industry,
education, and civic leaders for fair and
predictable higher education funding
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Plans and Preliminary Results:
Increase Revenue
• Hosted Illinois Coalition Meetings
• Spoke at the Illinois Coalition Meeting in Springfield
• Held 6 Meetings with Legislative Leaders and Legislators
• Provided Illinois General Assembly Budget Testimony
• Had 4 Meetings with the Governor
• Hosted the Chairperson and the Executive Director of the Illinois Board of Higher Education on Campus
• Appointed to the Illinois Board of Higher Education and Action Teamso Increasing Affordability
o Reducing Attainment Gaps
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Plans and Preliminary Results:
Increase Revenue
8. Implement additional strategies
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Plans and Preliminary Results:
Reduce Expenditures
1. Continue to carefully evaluate
replacement hiring
2. Continue attrition savings
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Plans and Preliminary Results:
Reduce Expenditures
3. Close and/or combine offices and units
A. Closed the Quad Cities Executive Studies Center
at the end of FY16
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Plans and Preliminary Results:
Reduce Expenditures
4. Adjust 12 month administrative
contract lengths to 11 or 10 months
where feasible
A. Department Chairs/School Directors placed on
11.5 month contracts, effective July 1, 2016
B. Department Chairs/School Directors will receive
11.0 month contracts, effective July 1, 2017
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Plans and Preliminary Results:
Reduce Expenditures
5. Cancelled salary increases for non-
negotiated personnel
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Plans and Preliminary Results:
Reduce Expenditures
6. Negotiate for no salary increases with
collective bargaining units
A. UPI Units A and B
1. Gave back 1% FY16 raise
2. Will engage in temporary 3% salary reductions for FYs
17 and 18
3. The 3% temporary salary reductions will be paid back if
certain enrollment and appropriations triggers are met
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Plans and Preliminary Results:
Reduce Expenditures
7. Continue FY17 furlough program
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FY17 Furlough Schedule:
Non-Negotiated Administrative/Professionals
Annual
Income
Number
of Days
$40,000 - $49,999 6
$50,000 and above 8
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Plans and Preliminary Results:
Reduce Expenditures
8. Reduce and conserve operating funds
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Plans and Preliminary Results:
Reduce Expenditures
9. Consolidate and eliminate programs
and services
A. Instructional Design and Technology merged
with Engineering Technology, effective 7/1/16
B. Discontinued the:1. B.A. in Music (Macomb)
2. Bachelors in Early Childhood Education (Quad Cities)
3. Master’s in Liberal Arts and Sciences (Quad Cities)
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Plans and Preliminary Results:
Reduce Expenditures
10. Continue with previous budget
strategies
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Plans and Preliminary Results:
Reduce Expenditures
11. Maintain instructional costs per credit
hour below the statewide average
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Instructional Costs Per Credit Hour
Fiscal
Year
WIU % Below
State Avg.
2009 $267.16 (11.1%)
2010 $275.31 (6.3%)
2011 $272.68 (10.1%)
2012 $284.01 (10.6%)
2013 $294.30 (12.3%)
2014 $307.32 (19.6%)
2015 $316.86 (11.7%)
Source: Illinois Board of Higher Education Cost Study
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Instructional Costs Per Credit Hour:
Statewide Low, High, and WIU
$232.22$240.55
$249.57$257.94
$269.52$261.01
$275.31 $272.68$284.01
$294.30$307.32
$316.86$327.87
$348.71$359.77
$417.04 $419.86$429.72
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
FY10 FY11 FY12 FY13 FY14 FY15
Source: Illinois Board of Higher Education Cost Study
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Plans and Preliminary Results:
Reduce Expenditures
12. Maintain administrative costs per credit
hour below the statewide average
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Administrative Costs Per Credit Hour
Fiscal
Year WIU
% Below
State Average
FY 2009 $68.90 (16.8%)
FY 2010 $68.70 (13.7%)
FY 2011 $67.76 (18.5%)
FY 2012 $70.94 (19.3%)
FY 2013 $63.48 (26.9%)
FY 2014 $68.85 (24.0%)
FY 2015 $72.06 (20.5%)
Source: Illinois Board of Higher Education Cost Study
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Administrative Costs Per Credit Hour:
Statewide Low, High, and WIU
$58.36 $61.59 $64.51$58.22
$63.26 $60.99$68.70 $67.76 $70.94
$63.48
$119.49$125.05
$142.88
$124.54$120.78
$112.65
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
FY10 FY11 FY12 FY13 FY14 FY15
$68.65 $72.06
Source: Illinois Board of Higher Education Cost Study
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Plans and Preliminary Results:
Reduce Expenditures
13. Implement additional strategies
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Financial Status of WIU
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Planning Results
• KPMG Financial Ratios are used by the
federal government in evaluating
institutional fiscal health
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Planning Results:
FY08-15 Composite Financial Indicator
1.80
1.30
3.00
3.60
2.90
1.70
2.75
1.47
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
08 09 10 11 12 13 14 15
Overall Fiscal Health
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Planning Results:
FY08-15 Primary Reserve Ratio
0.170.06
0.21 0.25 0.27 0.26 0.25 0.26
-1.00
-0.80
-0.60
-0.40
-0.20
0.00
0.20
0.40
0.60
0.80
1.00
08 09 10 11 12 13 14 15
Fiscal Stability
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Planning Results:
FY08-15 Net Operating Reserve Ratio
0.01 0.01
0.04
0.06
0.04
0.000.01
-0.01
-0.10
-0.08
-0.06
-0.04
-0.02
0.00
0.02
0.04
0.06
0.08
0.10
08 09 10 11 12 13 14 15
Institutional Surplus
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Planning Results:
FY08-15 Return on Net Assets Ratio
0.050.03
0.13
0.18
0.12
0.04
0.13
0.02
-0.20
-0.15
-0.10
-0.05
0.00
0.05
0.10
0.15
0.20
08 09 10 11 12 13 14 15
Ability to Satisfy Debt Obligations
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Summary
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Summary
• This presentation was broken into 5 parts
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Summary
1. FY02-17 Funding Trendso The State continues to invest less GRF in Illinois
public higher education
1. Budget Parameterso The University has limited discretionary ability
o The vast majority of institutional expenses are related to personnel
o Previous years of budget reductions focused on operating reductions
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Summary
3. Fiscal Year 2016 Actionso Focused on difficult but necessary decisions to
emerge from the historic and unprecedented state budget impasse
4. Fiscal Year 2017 and 2018 Plans and Preliminary Results
o Will continue to focus on decisions that will position Western Illinois University for a strong and sustainable future for decades to come.
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Summary
5. WIU Fiscal Health
o Is strong and we are known for quality in these
challenging fiscal times.
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Summary
• While we successfully addressed externally imposed fiscal challenges, our peers from across the Midwest and national external sources recognized the excellence of Western Illinois University
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Summary
• While we successfully addressed externally imposed fiscal challenges, our peers from across the Midwest and national external sources recognized the excellence of Western Illinois University
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Summary
• While we successfully addressed externally imposed fiscal challenges, our peers from across the Midwest and national external sources recognized the excellence of Western Illinois University
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The Statewide Budget Context and
Western Illinois University’s
Mission-Driven Planning and Results
Presented to the Western Illinois University Board of Trustees
October 7, 2016