Transcript Current UW Budget Process - University of Washington

JANUARY MEETING
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Reviewed projected funding gap
Discussed summary grid of committee members’ ideas
and questions thus far (sticky note exercise)
Committee members considered several topics in greater
detail, asked questions of staff, and generated initial
ideas. Discussion and ideas were concentrated around:
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Tuition (Peer tuition rates, GET, and differential tuition)
Enrollment Mix/Admissions
Graduate/Professional Tuition
Philanthropy
State Support
Commercialization/Innovation
Information Requests
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INFORMATION REQUESTS
• Enrollment trends (admissions, yield) by undergraduate
student category
• Academic credentials by undergraduate student category
• Table of peer tuition rates for undergraduate students and
selected graduate/professional student categories
• Philanthropic funding compared to peers
• Analysis of “overhead expenditures” compared to peers
• Review of peer strategies for addressing financial constraints
• Peer commercialization performance comparison
• Justification for four-year graduation rate (54 percent among
undergraduates)
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Possible Recommendation Topics
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WORKING TOWARDS RECOMMENDATIONS
Draft Recommendation: The UW should conduct a sensitivity
analysis to determine how many international students or
domestic nonresident students could be added to existing
enrollment levels at all campuses without compromising current
enrollment levels of resident students.
• Would additional physical constraints occur and if so, what
mitigation strategies could be put into place?
• How might course enrollment and major completion be
affected?
• In what ways would resident undergraduate enrollment be
affected?
• Is there robust demand from a competitive pool of
applicants for the UW to support such a change?
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WORKING TOWARDS RECOMMENDATIONS
Draft Recommendation: Each graduate and professional school
should consider the following when setting tuition rates:
1. Peer tuition rates
2. Post-graduate earnings projections
3. Regional and national degree market value
These analyses should occur prior to the 2014-15 academic year
in order to minimize the extent to which undergraduate tuition
revenue is cycled back to departments unable to support their
own operational expenses.
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WORKING TOWARDS RECOMMENDATIONS
Draft Recommendation: The University should conduct analyses
to uncover the feasibility, political sensitivity, and possible gains
from two structural state policy changes; these could include:
 Local Taxing District: Could a local taxing district in the tri-county
region be created to support UW operational expenses? In exchange,
would the UW commit to enrolling a certain percentage of
undergraduate students from this region? This research should include
an examination into whether other universities have pursued, and
established, this structure.
 Constitutional Amendment: How might higher education
incrementally move toward inclusion in the Washington State
Constitution?
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WORKING TOWARDS RECOMMENDATIONS
Draft Recommendation: Launch a separate advisory committee
to begin contemplating a campaign strategy. Consult members of
the community to design innovative strategies, partnering with
business, integrating commercialization, and bringing to the fore
strategic fundraising ideas that will align our use of philanthropic
funding with peers.
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WORKING TOWARDS RECOMMENDATIONS
• Current predictions suggest that revenue from sales and use and
other taxes will remain relatively constant; as such, the state has
limited additional funds available despite growing demands
• Because the state must commit to fully funding K12, any
enhancements in education funding will go to K12 and not to higher
education
• Higher education may realize marginal increases in state funding,
but restoring pre-recession appropriations or per student funding
levels is a near impossibility in the foreseeable future
Draft Recommendation: Though state funding will remain
limited, the Futures Committee recommends that the UW
administration continues to pursue its state funding advocacy
work with increasingly innovative strategies.
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WORKING TOWARDS RECOMMENDATIONS
Other Possible Recommendations…
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State Support
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STATE FUNDING OUTLOOK
• February collections were lower than anticipated, but cumulative
revenue is higher than the November revenue forecast predicted
• Required K12 and healthcare funding levels have increased
• OFM anticipates that federal sequestration will affect K12,
healthcare and public safety/environmental budgets
• The March 20th revenue forecast will provide an indication of how
federal sequestration, caseloads, and new revenue estimates might
affect the state’s ability to provide consistent funding to the UW
• Best possible outlook for FY14 and FY15: Maintenance of our
current appropriation (~$212 million/year)
• Outlook for FY16 and FY17 biennium: OFM predicts a $1 billion
shortfall (required expenditures greater than anticipated revenue)
before consideration of federal sequestration and rising caseloads
are incorporated
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