Transcript November 2011 Budget Presentation

INDIANA UNIVERSITY
SOUTH BEND
Budget Presentation for
Academic Senate Meeting
November 2011
By Bill O’Donnell
State Appropriation Reductions - Base
State Appropriation
Budget Change
% Change

FY 2008-09
$ 23,236,007

FY 2009-10
$ 22,157,280
$ (1,078,727)
- 4.6%

FY 2010-11
$ 21,772,918
$
(384,362)
- 1.7%

FY 2011-12
$ 21,756,890
$
(16,028)
-0.07%

FY 2012-13
$ 21,756,890
$
- 0 -
0.0%
State of Indiana General Fund – FY 2011
Total General Fund Budget 2011
- $14.1 Billion
1%
12%
K-12
Higher Education
4%
Medicaid
5%
Teacher Pension
49%
5%
Corrections
Child Welfare
Distributions
11%
Others
12%
Source: State Budget Agency (note: includes all Higher Educ. Expenditures)
Funding Sources – 10 year change
Fiscal Year 2000-01
Fiscal Year 2010-11
Student Fees
15,584,895;
35%
1,094,713;
3%
Other Student Fees
1,100,143;
2%
26,820,345,
39%
Student Fees
Other Student Fees
Gifts
Gifts
State Appropriations
Other Income
State
Appropriations
215,462; 0%
25,797,020,
58%
96,624; 0%
1,958,580;
4%
$ 44.5 million
Other Income
3,062,629;
5%
37,087,808;
54%
$ 68.2 million
FY 2011-12 Revenue Sources
Tuition/Fees Increase
 Enrollment Projections
 State Appropriations

$
889,931
3,154,052
(16,028)
Total New Revenue Sources $ 4,027,955
Enrollment Projections
Represented a 9.58% increase from
previous fiscal year budget projections.
 Equal to FY 2010-11 actual, record
enrollment.

FY 2011-12 New Budget Uses









Salary/promotions Increase
University Tax
Financial Aid
Faculty Travel
Adjunct Budgets
Student Affairs
Admin/Fiscal
PAUA and Info Tech
Other

Total Uses
$
1,400,000
330,000
750,000
110,000
575,000
200,000
189,000
156,000
290,000
$ 4,000,000
Student Fees – Budget v. Actual
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
Student Fees Budget
Student Fees Actual
20,000,000
15,000,000
10,000,000
5,000,000
07-08
08-09
09-10
10-11
11-12
11-12 Estimate
Student Fee Revenue – Shortfall
Fall Semester Budget
 Fall Semester Actual

Fall Semester Shortfall
$ 18,072,989
17,095,950
$
977,039
Estimated Shortfall - FY $
2,048,524
Budget Planning Timeline
Due in February – Credit Hour Enrollment
estimates.
 Early March – salary policy and budget
guidelines sent to campuses.
 Mid-March – campuses load the budget.
 April 13 – IU Trustees approve the budget.
 May – IU develops state funding request.
 June 22 – IU Trustees approve request.
 July 13 – IU submits state budget request for
next biennium to ICHE.

Credit Hour History
Credit Hours
84,000
82,000
80,000
78,000
76,000
Credit Hours
74,000
72,000
70,000
68,000
66,000
64,000
07-08
08-09
09-10
10-11
11-12
FY 2012 – 13 Budget Issues
State Appropriations
$
-0–
 Tuition Increase
850,000
 4% Reduction in Enrollment
Projections
(1,300,000)
Total Revenue Sources $ ( 450,000)


2% Salary Increase
Base Budget Deficit
850,000
$ ( 1,300,000)
ICHE Performance Funding Model


Established in 2003 with Research Incentive
Grown to 6 metrics used to provide
performance funding to institutions
◦
◦
◦
◦
◦
◦
Successful Completion of Regular Credit Hours
Successful Completion of Dual Credit Hours
Degrees Attained by Low Income Students
Change in overall degrees attained
Change in degrees produced on-time
Research Growth Incentive
Successful Completion of
Regular Credit Hours
Provides for funding to institutions based on
students completing any credit hours with a
D- or better at the end of the semester
 Funding provides for resident and reciprocity
students, both undergraduate and graduate
level
 The formula rewards the growth in
successful completion by comparing two, 4
year averages over a 6 year period

◦ 2007 to 2010 Actual Data
◦ 2009 to 2012 Actual and Projected Data
Degrees Attained by Low
Income Students
Provides for funding to institutions based on
students receiving degrees who were recipients
of the Pell Grant at the time of graduation.
 Institutions can be rewarded in the formula for
increasing the number of low income students
graduating from their institution, no time
restraints
 Applies to resident, undergraduate students
only
 The formula rewards growth by comparing the
average change over 2 years for a 4 year period:

◦ Change in degrees from 2006 to 2007
◦ Change in degrees from 2008 to 2009
Change in Overall Degrees
Provides for funding to institutions based on
students receiving bachelor or associate
degrees, resident only
 Institutions can be rewarded in the formula
for an overall increase in degrees attained,
no time restraints
 The formula rewards growth by comparing
the average change over 2 years for a 6 year
period:

◦ Change in degrees from 2004 to 2005
◦ Change in degrees from 2008 to 2009
Change in Degrees On-Time
Provides for funding to institutions based on students
graduating in 4 or 2 years based on degree type
 Institutions can be rewarded in the formula for an
overall increase in the 4 or 2 year graduation rate
 Applies to resident, first-time, full time, degree
seeking students only
 The formula rewards growth by comparing the 4 or 2
year graduation rate for 2 periods of time:

◦ 2004 Cohort graduation rate
◦ 2006 Cohort graduation rate

Between the 2004 and 2006 cohorts:
A decrease of 0.3% in the 4 year graduation rate
A decrease of 4.6% in the 2 year graduation rate
Research Growth Incentive
Provides for funding to research
institutions for growth in outside research
funding.
 Currently applies to only IU
Bloomington, IUPUI and Purdue
West Lafayette.

Long Term Budget Planning
Process for making budget cuts.
 Strategic Plan / Operational Plan that helps
prioritize resource allocation.
 Possible implementation of RCM.
 Ongoing communication groups or
networks for discussion of campus and
budgetary issues.

 Questions??
Recommendations
No new non-faculty positions.
 Review new budget items added this FY
and consider reversing them as practical.
 Reduce administrative travel.
 Reduce non-faculty, vacant positions by
50%.

A balanced approach
is
the best approach.
“The rest of us use optimism as a
coping mechanism. It makes us
happier but it also clouds our
judgement.”
Massif Ghaemi
Chancellor’s Merit Awards
 Michiana Econ Dev Scholarship
 Campus Scholarships
 Misc. Financial Aid

Total New Fin. Aid
217,414
250,000
132,636
150,000
$ 750,050
Budgeted Enrollment vs. Actual
Credit hours by Fiscal Year
(FY 2001-2011 Fall & Spring Semesters)
180,000
160,000
140,000
Hours
120,000
100,000
80,000
60,000
40,000
20,000
-
FY
2000-01
FY
2001-02
FY
2002-03
FY
2003-04
FY
2004-05
FY
2005-06
FY
2006-07
FY
2007-08
FY
2008-09
FY
2009-10
FY
2010-11
Budget
117,278
Census (Actual) 120,392
119,268
126,639
128,507
130,887
130,723
131,872
131,012
135,414
132,924
134,866
133,204
132,840
130,669
133,426
131,268
141,025
134,137
155,412
144,795
151,726
Fiscal Year
FY 2010 – 11 Summary
Actual Revenue
 Budgeted Revenue

Surplus
$ 68,286,353
64,845,694
$
3,440,659
Note: Budgeted revenue reflects Nov 1,
2010 budget when 2% salary raise budget
was authorized by President McRobbie.
Uses of Surplus Revenue / Reserves
Early Retirement Incentive
$ 1,353,447
 R&R Projects per IU
1,331,142
 Distance Learning Reserve
501,461
 Admin Bldg 1st Floor Project
1,287,984
 Noel Levitz Contract
300,000
 IT – Lifecycle Replacement
223,108
 ACP Program Carryforward
157,973
 Student Housing Funding
131,302

Total Uses
$ 5,286,417
Tuition & Fees – Budget v. Actual
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
Student Fees Budget
Student Fees Actual
20,000,000
15,000,000
10,000,000
5,000,000
07-08
08-09
09-10
10-11
11-12
Student Fees – Budget v. Actual
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
Student Fees Budget
20,000,000
Student Fees Actual
15,000,000
10,000,000
5,000,000
07-08
08-09
09-10
10-11
11-12
Estimate
Operational Plan Budget Goals
1.5
Increase Financial Aid
 2.1
Faculty Salary & Compression Issues
 2.1.3 & 8.3.2 Increase faculty travel budgets
 2.2.1
Graduate Student Research funding
 2.2.2
Graduate Student Assistantships
 2.2.3
Marketing Funds – Grad Programs

Budget Challenges – FY 2011-12



FY 2011-12 & FY 2012-13 possible state funding
reduction from 2011 Legislature.
Meeting needs of increased student enrollment
with state funding reductions.
Gauge how much of enrollment increase is
temporary outcome of unemployment rate and
prepare for the re-adjustment.
◦ ie – the budget needs to expand and contract as
necessary to meet the enrollment level.