UW-Platteville Financial Overview October 2011

Robert Cramer -Assistant Chancellor Cathy Riedl-Farrey - Director, Financial Services

• • • Summary of Funding Sources State Budget Update UW-Platteville Financial Update – 2010-11 Closing Balances (June 30, 2011) – Summary of 2011-13 Budget Reductions – 2011-12 All Funds Budget – Financial Forecast Scenarios – TSI Detail – Debt Service Detail

• • • • • General Purpose Revenue (GPR) – includes general funding, specific purpose funding, and earmarked funding from the state, primarily from state sales and income taxes Program Revenue (PR) – includes tuition, auxiliaries, and segregated fees, as revenues received for services or from users Federal Revenue (PR-F) – includes federal grants, financial aid, direct loans, as revenues from a federal agency Segregated Funds (SEG) – includes transportation fund and other separate state accounts, credited by law to a specific state fund Gifts and Grants – includes revenues from the Foundation, non federal grants

2011-13 State Budget All Revenue Sources - $66.1 B

Bond Revenue, Segregated Revenue; $1,731,700,900 , 3% $7 492 356 300 ; 11% Program Revenue ; $8 725 083 600 ; 13% General Purpose Revenue, $29,027,930,800 , 44% Federal Revenue; $19 078 556 300 ; 29%

http://www.legis.state.wi.us/lfb/LFBPublications_ButtonPages/2011-13_budget.htm

Ten Largest General Fund Programs in 2011-13

Program 2011-13 % Cumulative %

Elementary and Secondary School Aids Medical Assistance

UW System

Correctional Operations Shared Revenues School Levy/First Dollar Tax Credits Appropriation Obligation Bonds Community & Juvenile Correctional Services Judicial and Legal Services Choice and Charter School Programs

Subtotal

$9,759,069,100 $3,946,921,300

$2,095,251,600

$1,994,614,400 $1,877,394,300 $1,762,732,600 $994,390,000 $541,787,200 $518,568,900 $419,205,500

$23,909,934,900

33.6% 13.6

7.2

6.9

6.5

6.1

3.4

1.9

1.8

1.4

82.4%

33.6% 47.2

54.4

61.3

67.8

73.9

77.3

79.2

81.0

82.4

All Other Programs

Total

$5,117,995,900 17.6%

$29,027,930,800 100.0%

100%

Structural Deficit Estimates by LFB

$3 500 $3 000 $2 500 $2 000 $1 500 $1 532 $1 503 $1 719 $2 867 $1 546 $1 499 $1 682 $2 511 $1 000 $500 $0 -$500 1997-99 1999-01 2001-03 2003-05 2005-07 2007-09 2009-11 2011-13 2013-15 -$310

Key Points on 2011-13 Budget

• • • • • Structural deficit is eliminated Biennial Budget included lapse of $174.3 million in 2011-13 and 2013-15 $65.8 million of the lapse is assigned to UWS Estimated closing balance of budget was $9 million at end of 2012-13 (on revenue of $14.8 billion) when budget was signed UWS receives 7% of the GPR budget and is assigned 38% of the GPR lapse

UW-Platteville Financial Update

FY2010-11 Closing Balances

• • • • • All Funds Summary (Cash Basis) Beginning Cash $ 25,137,116 ( 7/01/2010 rev ) Total Revenue $123,435,463 Total Expenses $124,736,260 Net Income – $ 1,300,798 Excluding direct student loan amounts Closing Balance $ 23,836,319 ( 6/30/2011 )

Select Fund Balances

• • • • • Fund 102 $4,245,502 (General operations, tuition revenue, base of $48 million) Fund 123 $3,976,226 ( Debt service, $4 M base) Fund 128 $2,384,352 (Dining, housing, parking, base of $25 million) Fund 131 $10,280,339 (DLC, School of Ed Cost Recovery, TSI, base of $15 million) Fund 136 $2,337,985 (Similar to 128, HTCP, camps & conferences, base of $3.7 million)

2010-11 Budget of $148.9 Million

Auxiliary Enterprises 32 270 250 22% Extension 560 106 0% General Purpose Tax Dollars 18 402 962 12% Specific Purpose Tax Dollars 11 435 118 8% Gifts and Grants 1 216 604 1% Federal 41 191 310 28% Tuition 43 852 004 29%

2011-12 Budget of $160.4 million

Auxiliary Enterprises 32 967 057 20% Extension 591 846 0% General Purpose Tax Dollars 17 013 631 11% Specific Purpose Tax Dollars 10 913 119 7% Gifts and Grants 1 216 604 1% Tuition 48 544 731 30% Federal 49 155 710 31%

Summary of 2011-2013 Fund 102 Reductions

2011-12 2012-13 Base Budget Items

Expected 2011-2012 Budget Reduction (7.5.11) Tuition Offset & system redistribution of cut

Subtotal Reductions

Cost to continue items

Total Base Budget Change for Fund 102

($3,543,000) 2,596,500 ($946,500) $1,023,024 $76,524 ($3,543,000) 3,680,300 $137,300 TBD TBD

Additional Budget Lapses (one-time dollars; $174. 3 M in 2013-15 also)

$174.3 M ($65.8M for UWS) Potential $157.7 M More ($47.5M for UWS)

Total Budget Lapses - $300 M ($113.3M)

($1,305,136) ($817,037) ($2,122,173) ($555,713) ($527,549) ($1,083,262)

Financial Forecast Scenarios

• • • • • • Revenue modeling to project available funds from the state, TSI, and tuition (traditional undergrads and grads) Key variables are tuition, enrollment and state support Assumes 5.5% increases in tuition annually in 2011-13 Assumes flat enrollment at 2011-12 levels Assumes flat general purpose revenue excluding lapse Assumes lapses of $300 million in 2011-13 and 2013-15 statewide with allocation as proposed in 2011-13

Scenarios Examined

• • • Original Projections (Fall 2010 with non res decline) Fall 2011 Baseline – updated for sixth week Fall 2011 Baseline – updated for sixth week & recent allocation of budget lapses

Enrollment Summary (FTE)

Original Projections Fall 2011 Baseline

TSI Enrollment Undergraduate In State Undergraduate Non Res Graduate Students 1,255 5,328 85 142 1,301 5,273 131 140

Totals 6,810 6,845

Note – these figures exclude distance learning, study abroad, and school of education cost recovery students

 30 000 000  20 000 000  10 000 000  (10 000 000)  (20 000 000)  (30 000 000) FY2012

Original Projections

FY2013 FY2014 FY2015 FY2016

Fall 2011 Baseline – prior to lapse

 30 000 000  20 000 000  10 000 000  (10 000 000)  (20 000 000)  (30 000 000) FY2012 FY2013 FY2014 FY2015 FY2016

Fall 2011 Baseline – after lapse

 40 000 000  30 000 000  20 000 000  10 000 000  (10 000 000)  (20 000 000)  (30 000 000) FY2012 FY2013 FY2014 FY2015 FY2016

 10 000 000  5 000 000  (5 000 000)  (10 000 000)  (15 000 000) Summary of Projected Closing Balances

Net Available

FY2012 FY2013 FY2014 FY2015 Original Projection - 6,810 Fall 2011 - 6,845 (before lapse) Fall 2011 - 6,845 (after lapse) FY2016

TSI Budget Detail

2011-12 Count Projected 1,255 12,512,350 2012-13 Count Projected 1,290 13,287,000 2013-14 Count Projected 1,265 13,427,975 Revenue Expenses: Salary & Fringe Supplies Debt Incentive Grants Contingencies Total Expenses: 156 9,846,000 772,000 2,070,000 837,500 13,525,500 157 10,178,000 704,000 2,070,000 847,500 13,799,500

Note: 34 positions were formerly GPR funded

157 10,522,000 800,000 2,070,000 835,000 14,227,000

Unclassified FTE by division (all funds)

Division

Chancellor Provost Assoc Vice Chancellor Administrative Services Admissions Student Affairs University Advancement BILSA LAE EMS

Total Allocated

26.37

57.02

17.83

33.25

20.00

39.68

11.00

91.91

163.42

138.85

599.33

Filled as of 10.17.11

25.36

53.40

17.83

32.67

20.00

38.77

12.00

90.67

162.08

138.88

591.66

Debt Service

• • • UW-Platteville has two types of debt service on facilities – General Fund Borrowing is funded through state appropriations of general purpose revenue – Program Revenue Borrowing is funded through University revenues including TSI Debt is issued centrally by the State 20 year bonds are typical

Debt Service Detail

Fund FY2010 Budgeted FY2011 Budgeted FY2012 Budgeted Description General Fund Parking PAC Fieldhouse Addition Children's Center Pioneer Student Center Residence Halls Stadium Food Service/Union Chancellor's Residence Subtotal 110 123 123 123 123 123 123 123 123 123 123 5,392,182 260,400 88,161 415,000 35,832 918,566 1,913,340 153,736 417,973 15,236 4,218,244 5,462,888 227,300 12,726 319,294 35,842 919,251 1,913,710 154,771 428,239 15,241 4,026,374

5,462,888

Bond End Date 204,400 FY2030 12,716 FY2012 430,704 FY2031 36,092 FY2020 926,966 FY2021 1,919,439 FY2030 155,808 FY2025 441,453 FY2031 15,360 FY2019 4,142,938 TSI Grand Total Debt Service 194 2,070,000 11,680,426 2,070,000 11,559,262 2,070,000 FY2031 11,675,826

Questions and Next Steps

• • Proceed with Strategic Planning Evaluate options to address lapses – Consult with UWS and others on options to mitigate – Consult with senates, deans, department chairs, and other on impacts and options