FY20 TUITION AND BUDGET OVERVIEW FINANCE AND ADMINISTRATION - - PowerPoint PPT Presentation

FY20 TUITION AND BUDGET OVERVIEW

FINANCE AND ADMINISTRATION COMMITTEE MARCH 13, 2019

• Tuition Advisory Committee (TAC) kickoff meeting – November
• TAC discusses GRB and Tuition Scenarios – January
• Finance and Administration Committee discusses GRB and Tuition Scenarios –

January

• EOU Cabinet, B&P Committee, ASEOU updates – January & February
• Tuition scenario conversations continue with ASEOU, TAC, F&A Committee,

Student forums – February/March

• First "public" read of tuition with ASEOU, TAC, F&A Committee, Student

forums – April

• F&A committee recommends tuition proposal at the 5/8 meeting and Board

approves at the May 23 meeting

TUITION SETTING PROCESS TIMELINE

TIMELINE REVIEW - PLANNING AND EFFECTIVENESS CALENDAR

January - Planning units submitted budget proposals for E&G General Fund operations to their Vice President/ President. These requests provide details regarding economic impact on the institution 1. Impact on FTE/SCH 2. Program Costs/Revenue 3. Outcomes of investments

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February - Vice Presidents/Presidents aggregated budgets from their areas, and each prepared a budget for their unit. March – VPFA prepares a draft operating budget of all funds for presentation. Budget and Planning Committee Reviews Budget Requests April – Budget and Planning Committee makes a recommendation to the President on the FY20 Operating Budget

EOU PLANNING AND EFFECTIVENESS CYCLE

• Goal 1: Student Success – Graduate students with the competence and confidence to succeed
• Objective 1: All graduates engage in high-impact, experiential learning activities
• Objective 2: Graduates engage in post-graduate planning and preparation
• Goal 2: Transformational Education – Enrich academic quality and enhance intellectual vitality
• Objective 1: Excellence in teaching and scholarship
• Objective 2: Graduates possess the essential learning outcomes employers seek
• Goal 3: Grow the Number of Lives Impacted – Expand student access, opportunity, and completion
• Objective 1: Serve as a growing and thriving rural university
• Objective 2: Students are retained
• Objective 3: Efficient degree attainment
• Goal 4: Thriving University Community – A great place to work and learn
• Objective 1: Foster an inviting and supportive university culture that exemplifies EOU’s values and principles
• Objective 2: Support intercultural competency, inclusiveness, and diversity
• Objective 3: Provide and maintain a campus that promotes quality of life for students, faculty, staff, and the community
• Goal 5: Relevance and Interconnection – Serve as the educational, economic, and cultural engine for rural places
• Objective 1: Educational partnerships are cultivated
• Objective 2: Be recognized as a leader in promoting rural community prosperity and resilience
• Goal 6: Financial Sustainability – Stewardship in financial sustainability and in growing EOU’s financial and capital resources
• Objective 1: Develop and foster a culture of fiscal responsibility, accountability, and security for all university funds
• Objective 2: Foster a culture of philanthropy that significantly increases engagement with and giving to the university
• Objective 3: Expand revenue from alternative sources such as grants, sponsorships, partnerships, and alternative uses of campus property

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EOU CORE THEMES – STRATEGIC PLAN FRAMEWORK

• Financial sustainability
• State allocation decline/unknowns
• Adequate levels of reserves
• Future state of the economy
• Mission fulfillment
• Academic quality
• Student support services
• Competitive landscape
• Unfunded cost(s) considerations - Retirement funding (PERS) cost liability
• Near-term cost and enrollment projections

TUITION SETTING PRIMARY DECISION CRITERIA

• Attract, retain, and graduate more students
• Cost management
• Efficiency improvements
• Influence state investment
• Tuition and/or fee increases
• Increases in fee remission allocation
• Use of reserves/fund balance
• Support philanthropic and entrepreneurial efforts

DRIVERS OF FINANCIAL SUSTAINABILITY

$13,175,125 $13,526,889 $14,080,830 $16,348,232 $19,307,162 $19,619,377 $20,051,272 $20,479,664 $18,602,864 $18,980,751 $18,434,345 $18,149,466 $18,517,657 $18,765,098 $19,279,520 $19,084,952 0% 10% 20% 30% 40% 50% 60% 70% $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 budgeted

Net Tuition & State Appropriations

State Allocation Annual Tuition & Fees Net Net Tuition and Fees % of Total

INSTITUTIONAL REVENUE

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

FYE09-FYE18 SALARY, PERS, PEBB COSTS

Retirement (PERS) Health Care (PEBB) Salaries

COST DRIVERS

$1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 $2,800,000 $3,000,000 $3,200,000

INSTITUTIONAL FEE REMISSIONS

$40,086 $38,798 $40,449 $41,985 $43,030

$36,000 $37,000 $38,000 $39,000 $40,000 $41,000 $42,000 $43,000 $44,000 2017-19 $737M $777M + $40.5M $817M + $80M $857M + $120M

In Thousands

2019-21 State Allocation Scenarios

LOOKING AHEAD - STATE FUNDING IMPLICATIONS

• GRB funding is flat at $736,898,584
• EOU FY20 $19,395,091
• EOU FY21 $19,402,543
• Co-Chair budget 2017-19 funding, plus $40.5M
• EOU FY20 $19,979,660
• EOU FY21 $20,468,909
• Neither scenario includes:
• ETSF $170,000 (annual)
• Sports Lottery $460,000 (annual)

CURRENT STATE FUNDING SCENARIOS

• Enrollment Increases (1% +/- = $225,000)
• Tuition and/or Fee Increases (1% +/- =

$230,000)

• Combination of Enrollment & Tuition/Fee

Increases

• Expense Reduction/Operating Efficiencies
• Use of Reserves/Fund Balance (Reduce fund

balance by 1% = $433,000)

BUDGET GAP HOW DO WE MITIGATE?

• Fee Remissions 3.5% increase over FY19 allocation

($2,705,000), plus $460,000 for Sports Lottery $3,260,000

• Includes PERS and PEBB increases
• Reduced/increased for approved changes in positions and

institutional efficiencies Two scenarios:

• Total Expenditure budget increase 2.0%
• Total Expenditure budget increase 4.5%

DRAFT OPERATING BUDGET SCENARIOS

STATE FUNDING IMPLICATIONS @ GRB – FLAT AND $40.5M INCREASE 1% ENROLLMENT GROWTH 4.9% TUITION INCREASE 2% OPERATING EXPENDITURE INCREASE

$20,480 $19,395 $19,403 $19,980 $20,469 $21,773 $22,288 $23,436 $22,288 $23,436 $10 $1,425 $1,131 $840 $65

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 FY2019-Forecast FY2020-GRB FY2021-GRB FY2020 +$40.5 FY2021 +$40.5

In Thousands

State Allocation Projected Net Tuition and Other Revenue Gap in Funding

FY19 Forecast FY20 FY21

Increase (Decrease) Fund Balance $10 ($840) ($65) Ending Fund Balance $7,823 $6,983 $6,918 Ending Fund Balance % 18.5% 16.5% 15.7% Months of Operating 2.22 1.98 1.88

FUND BALANCE @ 4.9% TUITION CO CHAIR 2% EXPENDITURE INCREASE

IN THOUSANDS

STATE FUNDING IMPLICATIONS @ GRB – FLAT AND $40.5M INCREASE 1% ENROLLMENT GROWTH 4.9% TUITION INCREASE 4.5% OPERATING EXPENDITURE INCREASE

$20,480 $19,395 $19,403 $19,980 $20,469 $21,773 $22,288 $23,436 $22,288 $23,436 $10 $2,482 $3,093 $1,897 $2,027

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 FY2019-Forecast FY2020-GRB FY2021-GRB FY2020 +$40.5 FY2021 +$40.5

In Thousands

State Allocation Projected Net Tuition and Other Revenue Gap in Funding

FY19 Forecast FY20 FY21

Increase (Decrease) Fund Balance $10 ($1,897) ($2,027) Ending Fund Balance $7,823 $5,926 $3,899 Ending Fund Balance % 18.5% 14.0% 8.9% Months of Operating 2.22 1.61 1.02

FUND BALANCE @ 4.9% TUITION CO CHAIR 4.5% EXPENDITURE INCREASE

IN THOUSANDS

2018-19 Rates 1% 2% 3% 4% 4.9%

UG Resident Tuition On Campus $159.00 $161.00 $163.00 $164.00 $166.00 $167.00 UG Non Resident $427.00 $432.00 $436.00 $440.00 $445.00 $448.00 UG Non Resident WUE $238.50 $241.00 $243.50 $246.50 $248.50 $250.50 UG On Line $240.00 $243.00 $245.00 $248.00 $250.00 $252.00 GR On Line $444.50 $449.50 $453.50 $458.50 $462.50 $466.50 Graduate Resident $359.00 $363.00 $367.00 $370.00 $374.00 $377.00 Graduate Non Resident $452.50 $457.50 $462.50 $466.50 $471.50 $475.50

EOU 2019-20 TUITION SCENARIOS

2018-19 Rates 2019-20 @ 4.9% UG Resident Tuition On Campus – 45 CR $7155 $7,515 UG Non Resident – 45 CR $19,215 $20,160 UG Non Resident WUE – 45 CR $10,732 $11,273 UG On Line – 36 CR $8,640 $9,072

EOU 2019-20 TUITION @ 4.9% STUDENT IMPACT UNDERGRADUATE ONLY

2018-19 Rates 2019-20 Proposed Student Incidental Fee $270/term $281/term Student Health Fee $165/term $174.25/term Business Course Differential UG $12/SCH $13/SCH Business Course Differential GR $15/SCH $16/SCH

EOU 2019-20 OTHER FEES PROPOSED

Oregon Resident Total Cost of Attendance Full Time, Undergraduate Living On Campus 2018-19 2019-20 Tuition $ 7,155 $ 7,515 Room and Board $ 9,590 $ 9,550 Mandatory Fees $ 1,524 $ 1,586 Total COA $ 18,269 $ 18,651 Increase $ $ 382 Increase % 2.09%

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EOU OIT SOU WOU OSU PSU UO

UG Resident Tuition $159.00 $183.93 $172.00 $172.00 $203.00 $171.00 $217.00 UG Non Resident $427.00 $585.45 $526.00 $547.00 $608.00 $570.00 $741.00 Graduate Resident $359.00 $427.08 $430.00 $411.00 $465.00 $414.00 $538.00 Graduate Non Resident $452.50 $716.93 $538.00 $671.00 $881.00 $630.00 $964.00

COMPETITIVE LANDSCAPE

2018-19 BASIC TUITION PER CREDIT HOUR COMPARISON

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COMPETITIVE LANDSCAPE 2018-19 MANDATORY FEES OVERVIEW

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$18,648 $18,987 $21,350 $22,300 $22,326 $22,367 $22,664 $23,004 $23,201 $24,052 $24,309 $26,085 $26,372 $26,937 $27,366 $27,480 $27,550 $27,638

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 LEWIS-CLARK STATE COLLEGE BELLEVUE COLLEGE UNIVERSITY OF IDAHO BOISE STATE UNIVERSITY THE EVERGREEN STATE COLLEGE IDAHO STATE UNIVERSITY EASTERN OREGON UNIVERSITY EASTERN WASHINGTON UNIVERSITY CENTRAL WASHINGTON UNIVERSITY WESTERN WASHINGTON UNIVERSITY WESTERN OREGON UNIVERSITY PORTLAND STATE UNIVERSITY OREGON INSTITUTE OF TECHNOLOGY OREGON STATE UNIVERSITY UNIVERSITY OF OREGON WASHINGTON STATE UNIVERSITY SOUTHERN OREGON UNIVERSITY UNIVERSITY OF WASHINGTON

COST COMPARISON

ESTIMATED TOTAL COST OF ATTENDANCE – 2018-19 UNDERGRADUATE, RESIDENT, LIVING ON CAMPUS

QUESTIONS