Budg udget et For Forum share our progress towards this years - - PowerPoint PPT Presentation

Budg udget et For Forum

• share our progress towards this year’s budget targets,
• provide a preview of next year’s budget outlook,
• describe the budget calendar and development process we’ll be using, and
• explain how you will participate and stay informed along the way.

Thi his ye year’s b budget ta targe gets

Our status at the half-way point…

• President Schulz charged the Tri Cities campus meeting a budget target

this year (FY2019) of -$400k. Looking at our ‘burn rate’ as of December 31, it appears we have a shot at achieving this.

• For FY2019, departments were asked to hold spending to last year’s levels

(FY2018).

• The Chancellor’s office is scrutinizing every vacancy, replacement and

new hire to create savings wherever possible.

FY1 Y19 P PBL B L Budget et Non-Sal Salar ary/Bene nefits Bud udget t Reduct ctions ns

(in thousands)

Unit Total Reduction Academic Affairs $121 Chancellor N/A Finance & Admin $57 Student Affairs & Outreach $21

Total $199

Target et r red educ uction

• ns a

s achieved eved – Reduced to prior year spending levels

Original Budget Final Budget

Allocation $20.2 $20.2 Transfer to Reserves

• .2
• .3

Expenses

• 22.0
• 21.0

(Deficit) $-2.0 $-1.1

Primary Expenditure Reductions:

• Non-Salary/Benefit

Reductions: $199K

• Advancement

Vacancies: $144K

• ICB: $86K
• Nursing Vacancies:

$451K

Target $-400K deficit – reduce spending by $700K

12/31/18

(in millions) Final Budget Actual 12/31/18 % Spent Salary/Benefits $16.7 $7.9 48% Non-Salary/Benefits 4.3 1.4 32% Total $21.0 $9.3 44%

Where have we underspent so far?

• F&A OH and One-time Costs: $300K
• AA Goods & Services/Travel: $200K
• ICB Rent: $100K
• Advancement: $100K
• Admissions: $100K

5.42 1.17 2.17 0.58 9.33 5.48 1.40 2.15 0.76 9.80

• 2.00

4.00 6.00 8.00 10.00 12.00 ACADEMIC AFFAIRS CHANCELLOR FINANCE & ADMIN STUDENT AFFAIRS & OUTREACH TOTAL

Total PBL FY19 through Dec 31, 2018 (in Millions)

FYTD 12/31/17 FYTD 12/31/18 Comparison

• f

FYTD 19 to FYTD 18

Favorable! Spent $470K less than last year at the halfway point!

Excludes: Grants, 17A and S&A

Nex ext y yea ear’s ’s b bud udget out

• utlook

It’s still very early in the year to make meaningful predictions about revenues and expenses for 2019-20…

• Compensation – A State-funded salary increase would come from the legislature in

their 2019-2021 biennial budget. WSU requested funding for two 4% increases.

• Tuition Rates – Not aware of plans for a tuition increase. WSU Regents may propose

an increase tied to inflation. But that could be blocked by the legislature.

• Enrollment Trends – Fall enrollment stabilized with a 3% decrease. It is too early to

predict enrollment for 2019-20. 1% decrease in enrollment = -$100K

• Budget Target – The President’s Financial Recovery Plan target for Tri-Cities is to

break-even.

• Other – Continue to defer costs for non-critical facility maintenance/operations. And

we are committed to fully funding our Nursing and Advancement departments.

Budg dget et c calen endar and d d deve velopm

• pmen

ent

Yo Your r ur role e - pa participate a and nd stay i inf nformed?

• Attend the budget updates.
• Participate in conversations about resource allocation in your area. Bring

your ideas and concerns. And advocate for your priorities inform your area request.

• Attend budget hearings. Listen and understand the rationale for budget

requests.

• When the draft budget is complete, it will be posted and presented in a final
• forum. Bring your questions and make comments in person, via email or
• nline.
• Invite Robin Stanco and/or Ray White to come and talk to your department
• r visit us in person with your questions and concerns.