General Fund Budget General Fund Budget Fiscal Year 2003Fiscal Year 2003

Oakland University Oakland University Proposed General Fund BudgetsProposed General Fund Budgets

FY 2003 FY 2003

• Revenue Sources Overview

• Key Operating Environment Measures

• FY 2003 Budget Assumptions

• Non-Discretionary Budget Increases

• Academic Affairs Highlights and Priorities

• Other Budget Priorities

Revenue Sources Overview

FY 2001 Unrestricted Education and General Revenue Sources

OaklandPeer Average

Compared to its peers, Oakland University is relatively more reliant on tuition and fees to support its Education and General Expenditures than on state appropriations.

Source: FY 2001 Financial Statements of OU & Peer Institutions

Federal1%

Investment Income

3%

State Appropriation

44%

Gifts & Grants

1%

Other3%

Tuition48%

Federal3%

Investment Income

1%

State Appropriation

49%

Gifts & Grants

2%

Other7%

Tuition38%

Oakland UniversityPeer Institutions

Wichita StateCleveland StateIndiana StateWright StateAkronUniversity of Missouri – St. LouisUniversity of Nevada Las Vegas

FY 2001 Unrestricted Education and General Revenue Sources

OaklandMichigan Average

Source: FY 2001 Financial Statements from OU and Michigan Institutions

Investment Income

3%

Other5%

State Appropriation

46%

Tuition46%

Investment Income

1%

Other6%

State Appropriation

52%

Tuition41%

Compared to other Michigan institutions, Oakland University is relatively more reliant on tuition and fees to support its Education and General Expenditures than on state appropriations. Michigan data does not include three major research universities (MSU, UM & WSU).

39%

51%

58%

47%

0%

10%

20%

30%

40%

50%

60%

Tuition State Appropriations

Source: OU Financial Statements

Comparison of General Fund Revenue Sources

FY 1991 and FY 2001

1991 2001 1991 2001

Since 1991, Oakland University’s relative reliance on tuition and fees in the General Fund has grown from 39% to 51% in 2001.

Michigan Public Universities % GrowthMichigan Public Universities % Growth in Appropriation/FYES from in Appropriation/FYES from

FY 1997 to FY 2002FY 1997 to FY 2002

-5%

0%

5%

10%

15%

20%

25%

30%

FSU MTU WSU LSSU UMD UMAA UMF EMU CMU MSU OU WMU NMU SVSU GVSU

Source: FY 2001 - 2002 Higher Education Appropriations Report

Appropriation per FYES FY 2002 (Ranked)

$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,000

$10,000$11,000

WSU UMAA MTU MSU NMU FSU WMU LSSU UMD UMF EMU CMU OU SVSU GVSU

Source: FY 2001 - 2002 Higher Education Appropriations Report

Comparison of State Appropriation Increase with Tuition and Required Fees Increase

2.30%

10.88%

3.00%

5.90%

5.01%

5.90%

4.98%

3.86%

3.01%

6.78%

8.64%

2.91%

9.15%

2.70%

1.65%

8.39%

0.00%

8.47%

0%

2%

4%

6%

8%

10%

12%

FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003

% Incr State Appr % Incr Tuition & Fees

Key Operating Environment Measures

FY 2001 Unrestricted Education and General Expenditures

OaklandPeer Average

Compared to its peers, Oakland University spends more of its Education and General Funds on Instruction, Institutional Support and Student Services, and less on Plant Maintenance, Public Service, and Academic Support.

Source: Financial Statements OU and Peer Institutions

Mandatory Transfers

3%

Financial Aid5%

Plant Maintenance

9%

Public Service

1%

Academic Support

10%

Student Services

10%Research

1%

Instruction47%

Mandatory Transfers

2%Financial Aid

5%Plant

Maintenance10%

Public Service

3%

Academic Support

13%

Student Services

8%Research

3%

Instruction45%

Institutional Support

11%

Institutional Support

14%

FY 2001 Unrestricted Education and General Expenditures

OaklandMichigan Average

Compared to other Michigan institutions, Oakland University spends more of its Education and General Funds on Instruction, Student Services, and Research and less on Public Service, Financial Aid, Plant Maintenance, and Academic Support. Michigan data does not include three major research universities (MSU, UM & WSU).

Source: Financial Statements OU and Michigan Institutions

Institutional Support

14%

Financial Aid3%

Plant Maintenance

9%

Public Service

1%

Academic Support

9%

Student Services

10%Research

6%

Instruction48%

Financial Aid6%

Plant Maintenance

10%

Public Service

5%

Academic Support

11%

Student Services

9% Research3%

Instruction43%

Institutional Support

13%

Fiscal Year Equated Students (FYES)Per Full-Time Equivalent Faculty (FTEF)

FY 2001

UNIVERSITY FYES/FTEF

NMU 20.86OU 19.60SVSU 19.30EMU 19.05CMU 18.65GVSU 18.02UMF 16.65UMD 16.26LSSU 16.26FSU 15.61WMU 15.01MTU 12.40MSU 12.01UMAA 11.37WSU 10.99

AVERAGE 11 (Excluding OU, MSU, UMAA, WSU) 17.10

Source: Heidi Data Base

Michigan Universities Michigan Universities General Fund Expenditures Per FYESGeneral Fund Expenditures Per FYES

FY 2001FY 2001

UMAA $27,619

MTU 17,971 Dollars

WSU 17,122 Median $ 9,534

MSU 15,101 Average 15 12,328

FSU 12,391 Average 12 10,423

NMU 11,240

UMD 10,649

UMF 9,534

OU 9,418 (9th)

GVSU 9,231

WMU 9,207

LSSU 9,070

EMU 8,883

CMU 8,846

SVSU 8,628Source: Heidi Data Base

Ratio of Credit Hours per Headcount at Michigan Public Universities

FY 2001

0

5

10

15

20

25

30

UMAA FSU MTU MSU LSSU NMU WMU CMU GVSU UMF EMU OU SVSU WSU UMD

Source: Heidi Data Base

Gross Sq Feet Per FYES in MichiganFY 2001

Univ. Ft2/Student

UMAA 351.8MTU 348.3MSU 327.9NMU 293.8WSU 293.6LSSU 274.4FSU 183.6WMU 162.6UMD 159.1SVSU 149.8EMU 141.6CMU 137.1OU 117.6GVSU 109.1UMF 107.9

• Classroom space, in modules, expanded from 1,200 in Fall 1999 to 1,305 in Fall 2000 with addition of Elliott Hall.

• Module utilization in Fall 1999 was 75.9%.

• Available modules were almost all during the day.

• Night class schedules are close to 100% of module utilization.

Source: Heidi Data Base

• Viron energy service agreement

• Energy metering and monitoring system

• Medical Insurance:

$500,000

$160,000

- Prescription drug co-pays- Increase stop-loss level- Reduce rate stabilization reserve

$163,000

$33,000

$157,000

• School of Nursing partnerships

• Electronic distribution of reports

$69,000

$50,000

Cost Containment Strategies

• Outsourcing

- Custodial services (annual)

- Central Stores

- St. John’s / MBHEI partnership

$150,000 – 175,000

$164,000

$150,000

• Reorganizations

- Purchasing

- Facilities Management

$71,000

$55,000

Cost Reduction Efforts

Revenue Generation

• Pepsi exclusive beverage

agreement $ 346,000

• Bookstore (lease revenue) $ 400,000

• Meadow Brook Music Festival $

105,000

• Food Service $ 111,000

FY 2003 Budget Assumptions

FY 2003 Revenue Assumptions

• State appropriation projected to remain at FY 2002 level.

• Average full-time resident undergraduate tuition and fees rate proposed to be increased by 8.47%.

• Increase in Recreation Center Fee by $2 per semester to cover operational cost increases that occurred since 1998.

• Increase the General Service Fee by $5 per semester, to support improvements in parking.

• A FYES target enrollment of 13,300. This is 8.13% above the FY 2002 budget and 5.6% above the projected actual FYES for FY 2002.

• Other revenue increases include $65,000 associated with growth in Charter School activities, and $200,000 in projected Indirect Cost Recovery growth based on actual FY 2002 increases continuing into FY 2003.

Oakland UniversityOakland UniversityGeneral Fund Budget RevenuesGeneral Fund Budget Revenues

Fiscal Year 2002Fiscal Year 2002

State Appropriation47%

Tuition & Fees51%

Miscellaneous Income1%

Indirect Cost Recovery1%

Total Proposed Revenues: $111,634,751

Note: Effective FY 2001, Financial Aid is reported as a tuition discount. This has the effect of reducing the percentage of revenues generated by tuition and fees. Gross tuition and fees (before the offset) would be 53.1% of the gross total and state appropriation would drop to 44.5%.

Oakland UniversityOakland UniversityGeneral Fund Budget RevenuesGeneral Fund Budget Revenues

Fiscal Year 2003Fiscal Year 2003

Tuition & Fees55%

State Appropriation43%

Miscellaneous Income1%

Indirect Cost Recovery1%

Total Proposed Revenues: $121,074,037

Note: Effective FY 2001, Financial Aid is reported as a tuition discount. This has the effect of reducing the percentage of revenues generated by tuition and fees. Gross tuition and fees (before the offset) would be 56.5% of the gross total and state appropriation would drop to 41.0%.

Non-Discretionary Budget Increases

Non Discretionary Increases

• Compensation increase pool

• School of Education and Human

Services building operating costs

• Parking structure operating costs

• Property insurance increase

• Debt service for Series 2001 bonds

$3,900,000

$538,855

$67,725

$303,393

$304,146

Academic Affairs Highlights and Priorities

• New faculty funding $500,000

• Reallocation of faculty position funding $1,500,000

• CE/Incentive programs faculty growth $507,000

• CE/ Incentive operating support $348,000

• Part-time faculty increase $88,000

• Operating support to meet growth $100,000

• Increase in Course Fee allocation $105,000

Enhancing Instruction Programs

• Library acquisitions $168,600

• Advising staff in SEHS $53,500

• Financial Aid technology support $73,500

• Other support staff $192,000

Additional Academic Support

374 380 397 408 410 421 441477

0

100

200

300

400

500

600

1995 1996 1997 1998 1999 2000 2001 2002est.

Oakland UniversityFull-Time Faculty Headcount

The Part-time faculty budget has increased by $4 million since 1995.

Comparison of Total General Fund Budget to Academic Affairs Allocation

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003*

Total University Budget Academic Affairs Budget

64.2% 66.6% 65.6% 68.6%67.1% 67.2%

* While FY 2003 compensation increases have not yet been determined, $2.5 million of the total compensation pool has been estimated to be part of Academic Affairs.

Comparison of Academic Affairs Budget Percent Increase to FYES

Percent Increase

0%

1%

2%

3%

4%

5%

6%

7%

FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003*

Academic Affairs Budget Increase FYES

FYES Increase is actual, FY 2002 is estimated actual, FY 2003 is budgeted.

* While FY 2003 compensation increases have not yet been determined, $2.5 million of the total compensation pool has been estimated to be part of Academic Affairs.

$3.9

$3.9

$2.3

$4.4 $4.7 $4.9

301

244

422

617 624700

(In Millions)

Other Budget Priorities

• Student Financial Services customer service

enhancements

• Commencement and new student convocation

$97,400

$49,802

• Student Affairs technology support $55,944

• Placement and Career Services – Resume Expert $35,782

• Retention Specialist – Office of Equity $22,414

• Counseling Services $13,196

• Increase supplemental instruction sections $13,000

• Athletics Division I enhancements $50,000

Improved Service to Students

• Four additional police officer positions

• Fire safety code compliance

• Improved training, equipment for OUPD

$188,000

$22,700

$12,400

Health and Safety Improvements

• University Relations staffing and support

for Capital Campaign

• Strategic Initiatives fund

$250,000

$300,000

• Contingency fund $200,000

• Budget monitoring process staffing $48,800

Other Priority Budget Allocations

FY 2003FY 2003General Fund BudgetGeneral Fund Budget

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