Transcript Town Meeting - American University of Beirut

American University of Beirut
Town Meeting
2006 / 2007 Budget
June 2006
A Year of Progress
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Balanced Operating Results for last four years
and Balanced Operating Budget for 2006/07
Balanced Capital Budget that supports
significant new construction and continued
investment in academics and medicine
Continuing Revenue growth at the AUBMC
Pooled Assets of $407 million as of April 30
Current Challenges
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Donor support for operations ( non-restricted funds) has
not grown
Rising fuel costs
Lebanese economy remains fragile and continues to suffer
from slow growth
Growing Government receivables
Increasing Government Tax burden
67.5
Apr-06
Mar-06
Feb-06
Jan-06
Dec-05
Nov-05
Oct-05
Sep-05
Aug-05
Jul-05
Jun-05
May-05
Apr-05
Mar-05
Feb-05
US$
110
100
90
80
70
60
50
40
30
20
10
Jan-05
Oil Prices
100.6
83.7
71.88
59.8
48.2
$/barrel - Int
$/barrel - Local
Challenges Ahead
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Flat enrollment
PhD programs on the horizon
Operating costs of new student facilities
Adding faculty strength
Continued renewal of AUB’s existing
infrastructure
Budget Assumptions
 Stable overall student population
 7% increase in fuel costs vs. 2005/2006 & 26%
vs. 2004/2005
 11% increase in fuel and electricity
consumption
 11% increase in Library periodical costs
Tuition Rates
 Realigning tuition rates across all faculties
 Fair and consistent approach to pricing
 Unify tuition rates into three main categories:
- Medicine
- Professional (Business, Engineering)
- Science & liberal arts
Tuition Rates
Tuition Rate Increases
FAS - New students
FAS - Continuing students
OSB
FHS and FEA
All other faculties
Average
2005/06
Proposed
2006/07
5.0%
5.0%
4.0%
2.75%
2.75%
3.7%
10.0%
6.0%
7.0%
2.50%
3.00%
4.3%
Recommendations
 Rationalize the tuition rate structure over time
Average of 4.3% next year
 5.9% increase in student scholarships
 2.0 – 4.0% pool for merit increases
Net Revenue Growth
US$ Million
Tuition Rate Increase
3.1
Increased Hospital Revenues
3.3
Sub-Total
6.4
Add: US Aid, Investment Income
2.6
Total
9.0
Operational Investments
US$ Million
Financial Aid
0.7
Hostler Center
1.0
Enhanced Faculty
0.7
Selected Support Initiatives
0.4
Scientific Research Bldg.
0.2
Total
3.0
Need Based Financial Support ($000)
12000
10000
8000
Loans
6000
Scholarships
4000
2000
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Faculty Investment
Full-time Faculty *
02/03
03/04 04/05 05/06 06/07
107
124
140
155
156
Associate Professor
132
117
110
108
108
Assistant Professor
124
149
172
176
185
Total
363
390
422
439
449
Professor
* Including visiting academic staff and Medicine
Cost Creep
US$ Million
2.0 – 4.0 % Merit Pool
2.3
Benefit costs & Subsidies
1.2
Fuel
1.0
Deferred Maintenance/Project Support
0.3
Periodicals
0.4
Supply Costs
0.3
Provision for VAT increase
0.2
Other
0.3
Total
6.0
Non-Instructional Support
Services Costs
Costs
($000)
Academic
Per Student
Non-Academic
Per Student
Total
Per Student
02/03
03/04
04/05
05/06
06/07
∆ PA%
9,050
9,425
10,659
11,394
13,396
17.5%
1,361
1,354
1,467
1,554
1,830
17.8%
15,121
14,057
16,210
17,275
17,232
2,273
2,019
2,231
2,356
2,354
0.0%
0.0%
24,171
23,482
26,869
28,669
30,628
6.8%
3,634
3,373
3,698
3,910
4,184
7.0%
Vital Capital Projects
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Total Project Cost (USD Millions)
Charles Hostler Student Center
23.1
Olayan School of Business
20.3
Irani Engineering Complex
14.1
Scientific Research Building
4.4
Medical Arts Facility (old OPD)
8.8
School of Nursing
3.1
Issam Fares Institute
4.7
Dar Al-Handasah Architecture Bldg
5.0
Bechtel Bldg
3.0
Engineering & Science Library
4.0
Cooling Plant
2.9
Total
93.4
06/07 Capital Budget
Major Projects
US$ Millions
Major Capital Projects
23.1
Faculties
1.7
ASHA funded projects
1.8
AUBMC
3.1
Other AUB Projects
2.5
Total 06/07 Capital
32.2
06/07 Capital Budget Funding
Renewal & Replacement
$11.3 million
Related Investment Income
AUB Funding
$0.6 million
$11.9 million
Balance Carry Forward (pre approved)
Loan Financing
Donor Funding
American Schools &
Hospitals Abroad (ASHA)
$10.0 million
$2.2 million
$6.3 million
Total
$32.2 million
$1.8 million
Long-Term Objectives
 Academic
Excellence
 Service
Excellence
 Financial
Balance