Oregon State University 2013-14 Budget Overview

Faculty Senate, December 12, 2013

The Oregon State UniversityOur mission is to serve the people of the State of Oregon, and we have a

presence in every part of the State—that fact influences our financial

planning, structures, and practices.

a

How large is the whole institution?

Education and General Funds:

44%

Statewide Public Services:8%

Auxiliary En-terprises:

15%

Other Op-erations:

5%

Research Funds:21%

Gift Funds:7% Cascades Campus:

1%

OSU 2013-14 Budgeted Operations: $951.8M total

Fiscal Year 2014 (in thousands)

Budgeted

OperationsEducation and General Funds: 418,193Statewide Public Services: 72,899Auxiliary Enterprises: 141,435Other Operations: 46,299Research Funds: 198,237Gift Funds: 65,034Cascades Campus: 9,656TOTAL: 951,753

Auxiliaries: provide services to students, faculty as individuals (Athletics, Housing, Student Health)Other Operations: Service Centers (self-support providing services to OSU academic community, Telecom for example); Designated Operations (self-support with >80% of revenue from external sources, testing services for example)

In addition, major capital projects:

FY2014 Major Capital Projects ($ in thousands):

Austin Hall 56,000Classroom Building 65,000Student Experience Center 43,600Johnson Hall (construction 2015) 40,000Cultural Centers*

Asian and Pacific Cultural Center 2,400Lonnie B. Harris Black Cultural Center 2,400Centro Cultural César Chávez 2,400

Memorial Union Renovation 9,178New Student Residence 29,000Strand Hall Renovation 24,870Cascades Campus Expansion 24,000

TOTAL: 292,848*the new Native American Cultural Center is completed and open

Net revenue sources for the FY2014 E&G Budget ($418.2M)

Resident Undergrad Tuition:22%

Non-resident Undergrad Tuition:23%

Ecampus and summer tuition:12%

Graduate and professional tu-

ition:11%

Other tuition and fees:3%

State general funding:15%

State targeted funding:

4%

F&A recovery (from grants):

7%

Other funds:3%

2012-2013 E&G Expenditures by type

Services and Supplies20%

Capital Outlay2%

Student Aid0%

Salaries and OPE77%

What is the relative contribution of the State?

The State of Oregon remains an important partner to OSU, but

the relative contribution of the

State varies significantly across

the university

FY14 State Funding of Various OSU Operations:

Operation:Budgeted

Operations:

Estimated State or State Agency

Funding: % of Category:E&G Corvallis: 418,193 84,226 20.1%E&G Cascades Campus: 9,656 3,881 40.2%Statewide Public Services: 72,899 49,567 68.0%Athletics: 45,269 440 1.0%Grants, contracts: 198,237 7,000 3.5%Other: 207,499 0 0.0%TOTAL: 951,753 145,114 15.2%*estimated from FY13 research and sponsored activity awards from the State

Total Annual Debt Service Paid by State: % of Category

Debt Service: 40,998 11,831 28.9%

The role of tuition in funding the institution has shifted dramatically:

In this year, the budget is about $14,700 per student headcount; in 2003-2004 it was $11,100 per headcount in 2003 dollars, or $14,150 in 2014 dollars.

FY14 FY04 -

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

Corvallis E&G Budget Sources, FY14 and FY04

Other FundsF&A RecoveryState FundingNet Tuition and Fees

Total Instruction and Research Service, Support, and Management

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

FY12 Initial Budget:FY 13 Initial Budget:FY14 Initial Budget:

Corvallis Campus FY12, FY13, FY14 Initial E&G Budgets (in 1000s)

Institutional Management Distribution

Institutional Management Fund Allocations: FY13 FY14Settle up to units (ICR, remissions, etc) 11,627,008 11,244,748 Raises, faculty hires, setup: 11,840,828 8,553,871 Access & Enrollment Management funding: 3,000,000 3,780,000 Foundation, Capital Campaign 3,535,000 5,035,000 Facilities, IT, Research Investments 5,154,032 1,250,000 TRF Funding 7,527,021 7,527,021 Payments outside OSU* 11,326,029 14,882,252 Budget Reserve - 1,383,077 Due from Other Funds (5,132,143) (6,532,143)Internal Short-Term Loan (14,615,900) -

Totals: 34,261,875 47,123,826

*Debt service, payments to OUS, INTO, City, otherOrange shows pools with major academic components

Academic Colleges including Cascades

Library, Graduate School, Research, IS

Facilities and Capital Projects

Administrative, Finance, Executive

Institutional Management

Fund

Statewide Public Services

(40,000,000)

(30,000,000)

(20,000,000)

(10,000,000)

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

FY12 and FY13 Closing E&G Fund Balances

FY12FY13

Fund Balance Distribution, Closing FY13

Key FY14 E&G Budget Changes

Some major budget changes in FY14 $ (in M)Salary increases: 9.52New faculty and staff hires: 3.43Access and enrollment management: 0.78OSUF support to finish $1B campaign 1.50Facilities, moves and minor renovation 1.25Change in F&A recovery: -3.00Growth in Graduate Remissions: 2.70INTO revenue to Colleges: 1.70Provost Faculty Match Program: 1.40SWPS support: 2.00Ecampus revenue: 12.30

Outlook and Key Challenges

• Enrollment and retention: by far the most important factors in financial health and long-term investment

• Governance changes—some known, some still evolving; biggest changes on the management, financial, and legal fronts

• Research dollars and F&A recovery—challenges for competitive grants and formula funded programs

• Advancing the four-year campus in Bend—a major part of our role in the State’s 40:40:20 goal and our visibility in the State

• Managing the phase-out of the tuition plateau and the consequent impact on our students

• Finding strategies to make the infrastructure investments we need while balancing affordability and financial viability

• Planning for the Statewide Public Services as State and Federal funding environments change

• Following slides additional for questions

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Arizona S

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Arizona

Wisconsin

Purdue

Ohio State

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NC State

Texas

A&M -

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2013-2014 Resident Undergraduate Annual Costs

FeesResident

Penn St

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Michiga

n State

Illinois

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UC DavisUCLA

UC Berkele

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Washingto

n State

Arizona S

t.

Arizona

Wisconsin

Purdue

Ohio State

Colorado

Oregon

Colorado St

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Oregon St

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Iowa Stat

eUtah

NC State

Texas

A&M -

5,000

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25,000

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45,000

2013-2014 Non-Resident Undergraduate Annual Costs

FeesNon-resident