University of Massachusetts Boston

F&A Advisory Group

Planning & Budgeting Update

Dec 2014

Office of Budget & Financial Planning

Planning & Budgeting Update

•FY15 budget

•Multi-year forecast

•Planning & budgeting new

FY15 Budget Authorization (current)

($ in millions)

Compensation 206.6

Other operating 83.1

Total all $289.7

FY15 Requests for New Funding

($ in millions)

Institutional support 12.7Infrastructure 8.3Instruction 4.9Research, graduate programs 5.7Development 1.6Enrollment growth 1.2CAPS 0.5All other 3.0Total all $37.9

Lost Lives

o Constrained state funding

o Heightened price sensitivity

o Limited growth in federal support

o Board of Trustee oversight

o Focus on accountability (outcomes assessment)

Dreams (video clip at 2:50 – 3:45)

Multi-Yr Fcst

Multi-Yr Fcst

Infrastructure

FY08 FY09 FY10 FY11 FY12UMB

Depreciation 15,707,000 16,460,000 17,697,000 13,350,000 14,032,000 HCT 13,433 14,117 14,912 15,454 15,741 Depreciation/HCT 1,169 1,166 1,187 864 891

Peers (current) avg 1,473 1,504 1,528 1,597 1,758

Peers (aspirational) avg 1,861 1,913 2,005 2,082 2,207

Planning & Budgeting

• Capital planning

• Fund consolidation

• Reporting (Summit)

• Position management

• Multi-year planning

Planning & Budgeting

FY15 FY16 FY17 FY18 FY19Operating revenues 230,839 243,489 256,302 269,907 284,516 State appropriations 111,773 121,063 128,842 135,800 142,867 Gifts 4,671 4,811 4,956 5,104 5,257 Investment return (TFI Only) 762 777 793 809 825 Endowment return (Expendable Only) 2,037 2,078 2,119 2,162 2,205 Interest subsidy (BABs) 2,981 2,981 2,981 2,981 2,981 Non-operating federal grants (Pell) 21,916 22,486 23,251 24,041 24,895 Total revenue 374,979 397,685 419,243 440,803 463,546

Collective bargaining adjustment (2,934) (7,303) (11,702) (16,277) (20,899)

Operating expense 340,899 340,899 340,899 340,899 340,899 Debt interest payment 1,803 5,963 10,362 14,223 16,065 Debt principal, reserve 5,990 10,893 16,792 22,992 30,464 All other expense (Planning Summary) 27,634 45,597 61,620 76,833 92,833 Total expense 376,326 403,352 429,673 454,947 480,261

Surplus/(deficit) (4,281) (12,970) (22,132) (30,421) (37,614) Operating margin -1.1% -3.3% -5.3% -6.9% -8.1%

Projections

Planning & Budgeting

FuturePerfect

• Strategic forecasting

• UMass initiative• Integrated planning (enrollment,

employment, capital)

• Peer comparisons

Planning & Budgeting

FY15 revenue/FTE (gross)

In-state Out-of-state

Undergraduate 13,364 26,575

Graduate 11,154 16,950

Gross = all tuition; mandatory fees; online and other CAPS credit courses)

Planning & Budgeting

FY15 revenue/FTE (net)

In-state Out-of-state

Undergraduate 11,664 26,524

Graduate 5,684 14,077

Net = gross less waivers

Planning & Budgeting@UMass Boston

Opportunities

Strategic planning•identify investments needed to realize our goals•prioritize initiatives and timingFinancial & capital planning•reduce unilateral decisions (end run)•prepare comprehensive proposals•don’t spend a dollar twice (or more)Annual budget

• (should be) first slice of multi-year plan• done on time

Budget execution•capacity to execute•reallocate existing resources•position managementOutcomes

• identify outcome metrics for key investments• measure and report results

Next steps

Keep moving toward best practices that support our aspirations

Acknowledge that change is inevitable; learn from each other

Focus on the opportunities (that shiny thing in the corner of your eye)