FY20 TUITION AND BUDGET OVERVIEW FINANCE AND ADMINISTRATION COMMITTEE MARCH 13, 2019
TUITION SETTING PROCESS TIMELINE • 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
TIMELINE REVIEW - PLANNING AND EFFECTIVENESS CALENDAR January - Planning units submitted budget proposals for E&G February - Vice Presidents/Presidents aggregated budgets from General Fund operations to their Vice President/ President. their areas, and each prepared a budget for their unit. These requests provide details regarding economic impact on the March – VPFA prepares a draft operating budget of all funds for institution presentation. 1. Impact on FTE/SCH Budget and Planning Committee Reviews Budget Requests 2. Program Costs/Revenue April – Budget and Planning Committee makes a recommendation to the President on the FY20 Operating Budget 3. Outcomes of investments 3
EOU PLANNING AND EFFECTIVENESS CYCLE
EOU CORE THEMES – STRATEGIC PLAN FRAMEWORK 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 • 5
TUITION SETTING PRIMARY DECISION CRITERIA • 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
DRIVERS OF FINANCIAL SUSTAINABILITY • 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
INSTITUTIONAL REVENUE Net Tuition & State Appropriations $45,000,000 70% $40,000,000 60% $35,000,000 $19,084,952 $19,279,520 $18,765,098 $18,517,657 50% $30,000,000 $18,149,466 $18,434,345 $18,980,751 $18,602,864 40% $25,000,000 $20,000,000 30% $15,000,000 $20,479,664 $20,051,272 $19,307,162 $19,619,377 20% $16,348,232 $14,080,830 $13,526,889 $13,175,125 $10,000,000 10% $5,000,000 $- 0% 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 budgeted State Allocation Annual Tuition & Fees Net Net Tuition and Fees % of Total
COST DRIVERS FYE09-FYE18 SALARY, PERS, PEBB COSTS Retirement (PERS) Health Care (PEBB) Salaries $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18
INSTITUTIONAL FEE REMISSIONS $3,200,000 $3,000,000 $2,800,000 $2,600,000 $2,400,000 $2,200,000 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000
LOOKING AHEAD - STATE FUNDING IMPLICATIONS 2019-21 State Allocation Scenarios $44,000 $43,000 $42,000 $41,000 In Thousands $43,030 $40,000 $41,985 $39,000 $40,449 $40,086 $38,798 $38,000 $37,000 $36,000 2017-19 $737M $777M + $40.5M $817M + $80M $857M + $120M
CURRENT STATE FUNDING SCENARIOS • 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)
BUDGET GAP HOW DO WE MITIGATE? • 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)
DRAFT OPERATING BUDGET SCENARIOS • 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%
STATE FUNDING IMPLICATIONS @ GRB – FLAT AND $40.5M INCREASE 1% ENROLLMENT GROWTH 4.9% TUITION INCREASE 2% OPERATING EXPENDITURE INCREASE $50,000 $840 $65 $1,425 $1,131 $10 $45,000 $40,000 $35,000 $23,436 $21,773 $23,436 $22,288 $22,288 In Thousands $30,000 $25,000 $20,000 $15,000 $20,480 $20,469 $10,000 $19,980 $19,395 $19,403 $5,000 $- FY2019-Forecast FY2020-GRB FY2021-GRB FY2020 +$40.5 FY2021 +$40.5 State Allocation Projected Net Tuition and Other Revenue Gap in Funding
FUND BALANCE @ 4.9% TUITION CO CHAIR 2% EXPENDITURE INCREASE IN THOUSANDS FY19 Forecast FY20 FY21 Increase (Decrease) Fund $10 ($840) ($65) Balance 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
STATE FUNDING IMPLICATIONS @ GRB – FLAT AND $40.5M INCREASE 1% ENROLLMENT GROWTH 4.9% TUITION INCREASE 4.5% OPERATING EXPENDITURE INCREASE $50,000 $1,897 $2,027 $2,482 $3,093 $10 $45,000 $40,000 $35,000 $23,436 $21,773 $23,436 $22,288 $22,288 In Thousands $30,000 $25,000 $20,000 $15,000 $20,480 $20,469 $10,000 $19,980 $19,395 $19,403 $5,000 $- FY2019-Forecast FY2020-GRB FY2021-GRB FY2020 +$40.5 FY2021 +$40.5 State Allocation Projected Net Tuition and Other Revenue Gap in Funding
FUND BALANCE @ 4.9% TUITION CO CHAIR 4.5% EXPENDITURE INCREASE IN THOUSANDS FY19 Forecast FY20 FY21 Increase (Decrease) Fund $10 ($1,897) ($2,027) Balance 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
EOU 2019-20 TUITION SCENARIOS 2018-19 Rates 1% 2% 3% 4% 4.9% UG Resident Tuition $159.00 $161.00 $163.00 $164.00 $166.00 $167.00 On Campus 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 @ 4.9% STUDENT IMPACT UNDERGRADUATE ONLY 2018-19 Rates 2019-20 @ 4.9% UG Resident Tuition $7155 $7,515 On Campus – 45 CR 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 OTHER FEES PROPOSED 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
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% 22
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