Transcript Town Meeting - American University of Beirut

American University of Beirut
Town Meeting
2005 / 2006 Budget
June 2005
A Year of Progress
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Balanced Operating Results for last three years
and Balanced Operating Budget for 2005/06
Balanced Capital Budget that supports
significant new construction and continued
investment in academics and medicine
Continuing Revenue growth at the AUBMC
Inception of Strategic Planning Initiative
Hard Realities
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Investment draw is declining in 04/05 & 05/06
Donor support for operations ( non-restricted funds) has
declined
Rising fuel costs
Lebanese economy remains fragile and continues to suffer
from slow growth
Substantial Government receivables
90
80
US$
Oil Prices
85.1
71.2
70
58.2
60
50
46.9
49.4
40
30 32.9
20
$/barrel - Int
10
$/barrel - Local
0
Jan- Feb- Mar- Apr- May- Jun04
04
04
04
04
04
Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May04
04
04
04 04
04
05
05 05
05
05
Challenges Ahead
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Stable enrollment
Better management of student enrollment
with focus on quality and diversity
PhD programs on the horizon
Operating costs of new student facilities
Maintaining faculty strength
Continued renewal of AUB’s existing
infrastructure
What’s coming in 2005-06?
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Major dislocations associated with major
building projects
Outsourcing of HIP
Budget Assumptions
 Stable overall student population
 10% increase in fuel costs vs. 2004/2005 &
58% vs. 2003/2004
 8% increase in Library periodical costs
 6% increase in replacement and renewal
Recommendations
 2.75 to 5.0% increase in tuition rate
 Average of 3.7%
 6% increase in student scholarships
 2.0% pool for merit increases
Net Revenue Growth
US$ Million
Tuition Rate Increase
2.9
Increased Hospital Revenues
3.9
Sub-Total
6.8
Less: US Aid, Investment Income
(1.0)
Total
5.8
Operational Investments
US$ Million
Deferred Maintenance/Project Support
0.4
Selected Support Initiatives
1.2
Enhanced Faculty
0.6
Total
2.2
Need Based Financial Support ($000)
10000
9000
8000
7000
6000
Loans
5000
Scholarships
4000
3000
2000
1000
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
Faculty Investment
Full-time Faculty *
01/02
02/03
90
105
118
133
132
Associate Professor
133
130
116
107
111
Assistant Professor
118
121
151
161
170
Total
341
356
385
401
413
Professor
* Including visiting academic staff and Medicine
03/04 04/05 05/06
Cost Creep
US$ Million
2.0% Merit Pool
1.3
Benefit costs & Subsidies
0.5
Fuel
0.6
Periodicals
0.3
Supply Costs
0.2
Renewal and Replacement
0.5
Other
0.2
Total
3.6
Non-Instructional Support
Services Costs
Costs
($000)
Academic
Per Student
Non-Academic
Per Student
Total
Per Student
01/02
02/03
03/04
04/05
05/06
∆ PA%
7,905
9,050
9,425
10,870
12,589
12.3%
1,272
1,361
1,354
1,496
1,732
8.0%
14,155
15,121
14,057
15,551
16,005
2,277
2,273
2,019
2,141
2,202
3.1%
-0.8%
22,060
24,171
23,482
26,421
28,594
6.7%
3,549
3,634
3,373
3,610
3,934
2.6%
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Vital CapitalTotal
Projects
Project Cost (USD Millions)
Charles Hostler Student Center
21.9
Olayan School of Business
18.4
Irani Engineering Complex
11.5
Scientific Research Building
4.5
Medical Arts Facility (old OPD)
8.0
School of Nursing
2.8
Issam Fares Institute
4.3
Dar Al-Handasah Architecture Bldg
4.3
Bechtel Bldg
3.0
Engineering & Science Library
4.0
Total
82.7
05/06 Capital Budget
Major Projects
US$ Millions
Major Capital Projects
26.2
Faculties
2.0
ASHA funded projects
1.8
AUBMC
3.6
Other AUB Projects
5.7
Total 05/06 Capital
39.3
05/06 Capital Budget Funding
Renewal & Replacement
Related Investment Income
AUB Funding
$10.6 million
$0.8 million
$11.4 million
Balance Carry Forward (Prev.Approved)
Loan Financing
Donor Funding
American Schools &
Hospitals Abroad (ASHA)
$4.8 million
$12.7 million
$8.6 million
Total
$39.3 million
$1.8 million
Long-Term Objectives
 Academic
Excellence
 Service
Excellence
 Financial
Balance