EOU Financial Presentation to Associated Academic Professionals May - - PowerPoint PPT Presentation

EOU Financial Presentation to Associated Academic Professionals May 31, 2016

EOU Education and General (E&G) Budget Structure – FY16

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E&G Major Budget Units - FY16

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Major Budget Units - Detail

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Total Salaries and % of Budget FY16

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History of Sources of Revenue

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History of Revenue & Expenses

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History of Fund Balance

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University Goals/Approach

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• Achieve and maintain financial sustainability
• Keep tuition affordable to encourage enrollment growth and access

for students

• Invest in our people to aid in recruitment and retention of quality

faculty and staff

• Build enrollment to help offset annual cost escalation
• Maintain adequate level of reserves to help further EOU’s mission

and growth, and to absorb unforeseen expenses and/or reductions in state allocation

• Build efficiencies in programming and delivery
• Achieve operational stability to allow for investment
• Achieve and maintain best value proposition for students

Enrollment/Retention Realities

• TLT Charter Team, Fall 2016 Goal: +6.7%
• Current IR Projection, Fall 2016: -3%
• Cohort Retention

– Fall to Winter: 95.5% – Fall to Spring: 89.4% (04/18/16) – Projected 71% retention for Fall 2016

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Average Revenue Per Student

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2017-19 Biennium State Allocation Uncertainty

*Funding scenarios presented by the universities to the HECC for funding level consideration in 2017-19 biennium.* 13

2017-19 Biennium Cost Escalation Realities

• PERS

– The overturning of the court ruling will result in an estimated $1.3M increase in PERS cost for EOU beginning in the 2017-19 biennium.

• Minimum Wage

– Minimum wage increases will result in a projected $170,000 of additional annual expense for EOU in the 2017-19 biennium.

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Current AAP Economic Proposal

• Base Salary Increase = $1,787,604
• Overload Increase = $545,000 (est)
• OPE Increase = $536,281
• Professional Development Increase = $123,000
• Travel Increase = $60,000
• Total Cost of Proposal/Increase over Current Costs =

$3,041,885 OR approximately 8 percentage points of fund balance

• Base Salary increase over contract period = 28.24%

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Current AAP Economic Proposal Implications

To meet the current cost of AAP’s economic proposal, EOU would need to:

• Increase student FTE by approximately 125 each year
• f the contract (based on average annual tuition)

OR

• Receive an increase in state funding of approximately

$1M each year of the contract – an additional 5% increase in funding annually.

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Principles of EOU’s Current Economic Offer

EOU Economic Proposal - 5/31/16

• Consider competitive market adjustments to faculty base

salary

• Recognize connection between enrollment growth and

ability to afford competitive market adjustments

• Increase investment in professional development
• Connect contractual COLA increases to industry standard

cost of living measurement

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