Spring 2014 Budget Update

March 2014

Agenda

• Current Budget Status • Discussion Items • Proposed Auxiliary Rates

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Total Price of Attendance

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2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 -

5,000

10,000

15,000

20,000

25,000

30,000

Total Price of Attendance

Wisconsin Resident Minnesota Resident Non-Resident Tri-State Initiative

Total Price of Attendance Detail

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Total Price of Attendance 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

Wisconsin ResidentTuition 6,422 6,422 6,422 6,551 6,682 6,815 6,951 Student Fees 1,039 1,066 1,096 1,104 1,212 1,305 1,310 Standard Double Room 3,520 3,700 3,890 4,090 4,300 4,430 4,570 Standard Meal Plan (175 meals) 2,920 3,064 3,160 3,260 3,360 3,470 3,580

Total Estimated Price of Attendance 13,901 14,252 14,568 15,005 15,554 16,020 16,411 % Increase 5.7% 2.5% 2.2% 3.0% 3.7% 3.0% 2.4%

Minnesota ResidentTuition 6,846 6,846 6,846 6,983 7,122 7,265 7,410 Student Fees 1,039 1,066 1,096 1,104 1,212 1,305 1,310 Standard Double Room 3,520 3,700 3,890 4,090 4,300 4,430 4,570 Standard Meal Plan (175 meals) 2,920 3,064 3,160 3,260 3,360 3,470 3,580

Total Estimated Price of Attendance 14,325 14,676 14,992 15,437 15,994 16,470 16,870 % Increase 5.6% 2.4% 2.2% 3.0% 3.6% 3.0% 2.4%

Non-Resident *Tuition 15,805 15,805 15,805 16,121 16,443 16,772 17,108 Student Fees 1,039 1,066 1,096 1,104 1,212 1,305 1,310 Standard Double Room 3,520 3,700 3,890 4,090 4,300 4,430 4,570 Standard Meal Plan (175 meals) 2,920 3,064 3,160 3,260 3,360 3,470 3,580

Total Estimated Price of Attendance 23,284 23,635 23,951 24,575 25,315 25,977 26,568 % Increase 5.6% 1.5% 1.3% 2.6% 3.0% 2.6% 2.3%

Tri-State Initiative *Tuition 10,422 10,422 10,422 10,631 10,843 11,060 11,281 Student Fees 1,039 1,066 1,096 1,104 1,212 1,305 1,310 Standard Double Room 3,520 3,700 3,890 4,090 4,300 4,430 4,570 Standard Meal Plan (175 meals) 2,920 3,064 3,160 3,260 3,360 3,470 3,580

Total Estimated Price of Attendance 17,901 18,252 18,568 19,085 19,715 20,265 20,741 % Increase 4.3% 2.0% 1.7% 2.8% 3.3% 2.8% 2.3%

* Tuition increases in 2014-15 for Non-Resident and TSI students have not been determined. State statutes dictate that Wisconsin Resident, and therefore Minnesota Resident tuition, be frozen for 2014-15 at the 2012-13 tuition rate.

Key Assumptions:Tuition increase 2% annually following FY2014-15Planned small increases in Textbook Rental fees, PAC and Health & Counseling Services seg fees for FY2016-19Room rates increased by 5% annually for FY2015-17 and 3% annually for FY2018-19Meal plan rates increased by 3% annually thereafter through FY2018-19

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FY2012-13 Closing Balances

All Funds Summary (Cash Basis)Beginning Cash $ 24,495,297 (July 1, 2012)

Total Revenue $149,680,085Total Expenses $145,363,000Net Income $ 4,317,085

(Excluding direct student loan amounts)

Closing Balance $ 28,812,382(June 30, 2013)

Board of Regents Policy Regarding Cash Balances

• Four categories – Tuition, Auxiliaries, General Operations, and Other

• Minimum of 10% of current year expenses to be held as UNPLANNED Reserves for Tuition & Auxiliaries

• Max of 15% of total current year expenses to be held by each campus

• This leaves ONLY 5% of current year expenses for planned spending

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Budget Forecast ModelProjected Closing Balances

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

As of 2/10/14

7,144,380

5,122,383 3,054,727 533,403 (2,399,776) (5,719,645)

Current Scenario

Above scenario assumes:$3M base on-going reduction; Additional $1.1M and approx. 14 positions are reduced due to lower enrollment projections in 14-15; Another $425,300 & 5 positions in 15-16Assumes 0% tuition increase in 2014-15, 2% thereafterAssumes no continuing TSI incentive grants ($530,000 impact)

UW-Platteville’s Reserve Goal per Board of Regents 10% recommendation:

$6,100,000

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Tuition Target for Pooled Revenue=$34,264,494 Variance

Original Estimate 5.2013 $36,179,000 $1,914,000

Fall 2013 $35,470,000 $1,200,000

Spring 2014 $35,835,000 $1,571,000

TSI Estimate 5.2013 $15,320,000 -

Fall 2013 $14,310,000 -$1,010,000

Spring 2014 $14,285,000 -$1,035,000

Tuition Revenue

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

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EnrollmentOriginal

Fall Billing

FTE

Fall 2013 Billing

FTE

Original Spring

Billing FTE

Revised Spring 2014

Billing FTE

Spring 2014

Billing FTE

Undergrad Resident 5,510 5,515 4,960 4,965 5,012

Undergrad NonRes 180 155 160 140 140

Graduate Resident 95 74 85 65 70

Graduate NonRes 25 18 25 15 17

Subtotal Pooled Enrollment

5,810 5,762 5,230 5,185 5,239

TSI Enrollment 1,580 1,482 1,420 1,335 1,324

Total Pooled & TSI Enrollment

7,390 7,244 6,650 6,520 6,563

Enrollment Projections

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Student Category FY2014 FY2015 FY2016 FY2017 FY2018 FY2019Undergraduate (non TSI) 5,670 5,665 5,665 5,665 5,665 5,665 Graduate 90 90 90 90 90 90 TSI 1,480 1,510 1,490 1,500 1,495 1,510

7,240 7,265 7,245 7,255 7,250 7,265

TSI Incentive Grants

Discussion: We need to address the TSI incentive grants for continuing students.

• Are we going to eliminate the continuing incentive grant of $500/year as we had planned?

• The TSI Budget model assumes FY2013-14 is the final year of those grants.

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Summary of Current & FutureBudget Reductions

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Base Reductions FY14 FY15 FY16 FY17 FY18 FY19Current $3M 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 TSI Reduction - 1,054,100 1,479,400 1,448,900 1,415,000 1,215,900 Possible Future Reductions to meet 10% reserve policy - - 2,000,000 2,500,000 2,900,000 3,300,000

Grand Total 3,000,000$ 4,054,100$ 6,479,400$ 6,948,900$ 7,315,000$ 7,515,900$

This table summarizes the current base budget reduction, the base TSI reduction built into the budget model beginning in FY15, and the possible future base budget reductions that would be necessary to meet the Board of Regent’s 10% reserve policy.

Current Budget Reductions

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Division Base One-Time TotalAdministrative Services 513,085 168,485 681,570 Admissions & Fin. Aid - 172,032 172,032 Advancement - 98,316 98,316 BILSA 25,000 335,932 360,932 Diversity & Inclusion 51,631 - 51,631 Chancellor - 122,817 122,817 EMS - 577,777 577,777 LAE 131,228 390,117 521,345 Provost 265,323 195,000 460,323

986,267 2,060,476 3,046,743

Projected Additional Budget Reductions

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Gap to Close for $6.1 million reserve in core financial model2,000,000$ 2,500,000$ 2,900,000$ 3,300,000$

Division – ALL FUNDS TotalTotal With Fringe

Benefits % of Total% of Total

with FB FY16 FY17 FY18 FY19 Chief Diversity Office $ 3,453,945 $ 3,786,591 3.10% 2.80% 55,976$ 69,970$ 81,165$ 92,360$ Chancellor $ 3,263,372 $ 3,497,272 2.93% 2.58% 51,699$ 64,624$ 74,963$ 85,303$ BILSA $ 7,231,279 $ 7,864,929 6.49% 5.81% 116,264$ 145,331$ 168,583$ 191,836$ LAE $ 10,143,335 $ 11,363,535 9.10% 8.40% 167,983$ 209,979$ 243,575$ 277,172$ EMS $ 11,542,728 $ 12,643,063 10.36% 9.34% 186,898$ 233,622$ 271,002$ 308,381$ Provost $ 17,894,224 $ 21,070,148 16.06% 15.57% 311,472$ 389,341$ 451,635$ 513,930$ Administrative Services $ 37,169,430 $ 40,303,730 33.36% 29.79% 595,796$ 744,744$ 863,904$ 983,063$ University Advancement $ 1,806,072 $ 2,155,172 1.62% 1.59% 31,859$ 39,824$ 46,196$ 52,568$ Admissions and Fin Aid $ 3,813,349 $ 4,106,949 3.42% 3.04% 60,712$ 75,889$ 88,032$ 100,174$ University Wide $ 15,092,552 $ 28,502,437 13.55% 21.07% 421,341$ 526,677$ 610,945$ 695,213$ Grand Total $ 111,410,286 $ 135,293,826 100.00% 100.00% 2,000,000$ 2,500,000$ 2,900,000$ 3,300,000$

Notes: • The budget for Admissions and Fin Aid excludes Federal financial

aid.• This is just one example of how future budget reductions could be

allocated out to the divisions.

Plan for TSI $1M Reduction

The budget model currently includes an ongoing reduction of just over $1 Million from the TSI budget for 2014-15.

Options A-C: Reduce the base budgets going into FY2014-15.• Option A: Based on Salary & Fringe as a % of Total Salary & Fringe• Option B: Based on Salary, Fringe & Supplies as a % of Total Budget • Option C: Based on a % of Salary, Fringe & Supplies – weighted more

heavily towards non-college budgets (See the following slide for $ impact)

Option D: Wait until the end of Q1 in FY2014-15 and take cash from available TSI savings as a one-time reduction.

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Plan for TSI $1M Reduction:Options A-C

Options A-C: Reduce the base budgets going into FY2014-15. Reduction Target: $1,054,100

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Division FTE FY15 Salary &

Fringe Bdgt

FY15 Supply Bdgt (excluding Debt Svc) Total

% Salary & Fringe

Reduction Amount % Total

Reduction Amount

Weighted %

Reduction Amount

Administrative Services 18.94 1,174,920 74,638 1,249,558 8.55% 90,104 8.66% 91,272 8.50% 106,212 Admissions and Fin Aid 11.94 730,898 130,300 861,198 5.32% 56,052 5.97% 62,905 8.50% 73,202 BILSA 24.47 1,831,720 137,764 1,969,484 13.33% 140,473 13.65% 143,858 6.60% 129,986 Chancellor 2.11 142,367 9,000 151,367 1.04% 10,918 1.05% 11,056 8.50% 12,866 Chief Diversity Office 5.22 347,188 10,750 357,938 2.53% 26,626 2.48% 26,145 8.50% 30,425 EMS 41.59 3,302,370 129,800 3,432,170 24.03% 253,256 23.78% 250,698 6.60% 226,523 LAE 45.86 3,241,036 113,000 3,354,036 23.58% 248,552 23.24% 244,991 6.60% 221,366 Provost 33.87 2,349,700 80,605 2,430,305 17.09% 180,196 16.84% 177,518 8.50% 206,576 University Advancement 7.00 468,824 468,824 3.41% 35,954 3.25% 34,245 8.50% 39,850 University Wide - 156,078 141 156,219 1.14% 11,969 1.08% 11,411 8.50% 13,279

Grand Total 191.00 13,745,100 685,998 14,431,098 100.00% 1,054,100 100.00% 1,054,100 1,060,285

Based on Salary & Fringes Based on Total Budget

Option C:Based on weighted %

of Division Budget

Option A: Option B:

Note: TSI Debt Service was excluded from the budget.

One-Time Compensation Increases

Discussion: Do we want to pay out one-time compensation in the current year to address inequities using available balances? How much?

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One-Time Compensation Payments made in FY2012-13:

Per Person Total SalaryTotal w/ Fringes

Faculty $1,044 $224,490 $264,900Instructional Academic Staff $1,063 45,763 54,000Non-Instructional Academic Staff $2,171 122,542 144,600Classified Staff - Tier 1 $1,691Classified Staff - Tier 2 $846LTE $314 $4,915 $5,800

$452,412 $533,848

54,702 64,548

Possible Re-establishment of Capital/Lab Mod/Classroom Upgrade

Funding

Discussion: Do we want to re-establish a central pool for funding Capital/Lab Mod/Classroom upgrade requests? If so, where will the funds come from? How much?

FY13 Amounts:Lab Mods: $271,321Capital: $103,560 (each college received $25,000)

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Budget Management Principles• Possible Changes:

– Carryover 80/20 (with the possibility for exceptions?)– Fringe Savings within TSI will be returned to improve the core model– Position Control: Academic Affairs and Colleges

• Vacancies revert to Dean or Provost.• New positions will be approved by Dean or Provost, in consultation with the budget

office.– Position Control: Non Colleges

• Vacancies revert to the Provost.• New positions will be approved by the Provost, in consultation with the budget office.

– For NEW positions, salary savings do not accrue to departments until the position is filled.

– Carryover funds that are not spent/encumbered within Q2 will be taken centrally and reallocated.

– Internal campus loans can be used to fund large purchases to allow departments/divisions to repay the loan over a period of years rather than saving funds and carrying them over from year to year to make the large purchases.

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Proposed Room & Board Rates

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2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Proposed Yr %Residence Halls Traditional Doubles 3,520 3,700 3,890 4,090 4,300 4,430 4,570 5.1%Traditional Singles 4,428 4,650 4,890 5,140 5,400 5,570 5,740 5.2%Renewed Traditional Doubles (Porter) - 3,900 4,290 4,510 4,740 4,890 5,040 10.0%Renewed Traditional Singles (Porter) - 4,900 5,290 5,510 5,740 5,890 6,040 8.0%Renewed Traditional Doubles (Melcher) - - 4,090 4,300 4,520 4,660 4,800 Renewed Traditional Singles (Melcher) - - 5,090 5,300 5,520 5,660 5,800 Elevated Renewed Traditional Doubles (Dobson-FY16) - - - 4,620 4,860 5,010 5,170 Elevated Renewed Traditional Singles (Dobson-FY16) - - - 5,620 5,860 6,010 6,170 Single Suite-Upperclassmen (Southwest Hall) 5,006 5,300 5,570 5,850 6,150 6,340 6,540 5.1%Semi-Suite (Bridgeway Commons) 5,100 5,360 5,630 5,920 6,100 6,290 5.1%Semi-Suite Singles (Bridgeway Commons) 5,100 6,700 6,970 7,260 7,440 7,630 31.4%

Average % Increase 8.0% 5.4% 6.3% 4.7% 4.7% 2.9% 2.9%

Meal Plans 19 meals/week 2,944 3,090 3,190 3,290 3,390 3,500 3,610 3.2%15 meals/week - - - - - - - 10 meals/week - - - - - - - 14 meals/week+ $50/sern 2,879 3,008 3,100 3,200 3,300 3,400 3,510 3.1%10 meals/week + $ 100/sern - - - - - - - 200 meals/sem + $100/sem 3,162 3,274 3,380 3,490 3,600 3,710 3,830 3.2%175 meals/sem+$100.00 2,920 3,064 3,160 3,260 3,360 3,470 3,580 3.1%150 meals/sern + $ 100/sem 2,741 2,850 2,940 3,030 3,130 3,230 3,330 3.2%110 meals/sem+$125/sem 1,947 2,008 2,070 2,140 2,210 2,280 2,350 3.1%90 meals/sem+$100/sem 1,629 1,694 1,750 1,810 1,870 1,930 1,990 3.3%75 meals/sem+$100/sem 1,315 1,340 1,390 1,440 1,490 1,540 1,590 3.7%50 meals/sem+$75/sem 921 940 970 1,000 1,030 1,070 1,110 3.2%50 meals/sem - - - - - - - Simple Avg Rate 2,273 2,363 2,439 2,518 2,598 2,681 2,767 % Increase vs Prev Simple Avg 5.0% 4.0% 3.2% 3.2% 3.2% 3.2% 3.2%

Proposed Room Rates

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Proposed Board Rates

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Proposed Segregated Fees

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2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Proposed Yr %

BONDINGStadium/Arena Fac Bond 1 632205 30 30 30 30 30 30 30 0.00%MPSC Bond 632810 120 120 120 120 120 120 120 0.00%WFH Bond1 632605 0 0 0 0 0 0 0 0.00%WFH Bond2 632615 50 47 47 47 47 47 47 0.00%WFH Bond3 632620 0 0 0 0 85 170 170 0.00%

OPERATI ONSStadium/Arena Oper 632200 25 25 25 25 25 25 25 0.00%Child Care 632700 10 10 10 10 10 10 10 0.00%I D Systems 612225 8 8 8 8 8 8 8 0.00%I ntercoll. Athletics 632400 83 83 86 86 86 88 88 3.61%Muni. Svc. 632800 18 18 18 18 18 18 18 0.00%PAC Oper 632600 54 54 58 61 68 74 74 7.41%Parking 642001 20 20 20 20 20 20 20 0.00%Transportation 642010 30 30 30 30 30 30 30 0.00%MPSC Operations 632000 152 152 152 152 152 152 152 0.00%Student Affairs Programming 632006 91 93 93 93 93 93 93 0.00%Student Health & Counseling 632100 106 111 111 123 125 128 130 0.00%SUFAC Organized Activities 622001 100 100 100 100 100 100 100 0.00%Textbook 632900 142 165 180 185 195 195 195 9.09%Total Seg. Fees 1,039 1,066 1,088 1,108 1,212 1,308 1,310 % Increase 0.97% 2.60% 2.06% 1.84% 9.39% 7.92% 0.15%% Increase (excluding Textbook Rental) 1.13% 0.45% 0.78% 1.65% 10.18% 9.44% 0.18%

Proposed Segregated Fees

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