U NIVERSITY OF I LLINOIS U RBANA -C HAMPAIGN C HICAGO S PRINGFIELD - - PowerPoint PPT Presentation

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Financial Indicators U NIVERSITY OF I LLINOIS U RBANA -C HAMPAIGN C HICAGO S PRINGFIELD Presented to the Board of Trustees January 21, 2010 Where Does the Money Come From? Where Do the Dollars Go? FY 2010 FY 2010 20% 45%

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UNIVERSITY OF ILLINOIS

URBANA-CHAMPAIGNCHICAGOSPRINGFIELD

Presented to the Board of Trustees January 21, 2010

Financial Indicators

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Unrestricted $1,853.3M 39.7% Unrestricted $1,853.3M 39.7% Restricted $2,809.2M 60.3% Restricted $2,811.9M 60.3% Total $4,662.5M 100% Total $4,665.2M 100% Where Does the Money Come From? FY 2010 Where Do the Dollars Go? FY 2010

$763.8M $730.9M $358.6M $880.6M $30.8M $617.6M $601.0M $679.2M

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

State Tuition

  • Inst. Funds

Grants & Contracts AFMFA Hospital/MSP Aux./Dept. Payments on Behalf Unrestricted Restricted

$2,052.4M $889.5M $296.0M $135.5M $679.2M $612.5M

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Personal Services Contractual Services Commodities Equipment All Other Payments on Behalf

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$0 $100 $200 $300 $400 $500 $600 $700 $800

2006 2007 2008 2009 2010 $700 $713 $726 $743 $743 Appropriation

State Appropriation Revenue

Unrestricted Funds

Fiscal Year 2006 through Fiscal Year 2010

In Millions

FY09 appropriation includes $19 million rescission. FY10 appropriation includes $45.5 million of federal stimulus funding and assumes restoration of FY09 rescission.

1.9% 1.8% 2.3% 0%

GRF revenue increased 6.1% in total from FY2006 – FY2010

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$0 $100 $200 $300 $400 $500 $600 $700 $800

2009 2010

$251 $46 $494 $485

$724 $697.5 19 45.5 Collected Billed Appropriation Rescission Stimulus $743 $743

State Appropriation Revenue

Unrestricted Funds

Billings and Collections through December 31, 2010

In Millions

FY09 appropriation includes $19 million rescission. FY10 appropriation includes $45.5 million of federal stimulus funding and assumes restoration of FY09 rescission.

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$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500

July 06 Dec 06 June 07 Dec 07 June 08 Dec 08 June 09 Dec 09 Month End General Revenue Fund Receivable

UI Month End GRF Receivable

Fiscal Year 2007 through Fiscal Year 2010

In Millions

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$650 $700 $750 $800 $850 $900 $950 $1,000

In Constant 2009 CPI Dollars Original Appropriation Spending Authority

Spending Authority: FY02 – FY10 adjusted for Health Insurance obligation of $24.9 million. FY09 & FY10 state appropriation adjusted to include $15.8 million transferred for the State Surveys.

UI Direct State Tax Appropriations (GRF)

Fiscal Year 2000 – Fiscal Year 2010

In Millions

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$0 $100 $200 $300 $400 $500 $600 $700 $800

2006 2007 2008 2009 2010 $321 $380 $325 $385 $486 $540 $599 $648 $730 Collected Billed Total

Income Fund (Tuition) Revenue

Unrestricted Funds

Fiscal Year 2006-2010; collections through December of Fiscal Year 2009-2010

In Millions

11.1% 10.9% 8.2% 12.7%

Annual tuition revenue increased by 50.2% in total from FY06-FY10

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State and Income Fund FY 2000 – FY 2010

$200 $300 $400 $500 $600 $700 $800

Sources: Budget Summary for Operations, state payments on behalf, and RAMP. Waivers excluded. GRF for FY02 – FY10 exclude $24.9 million for Health Insurance,. State Surveys are included in State (not IF) in FY09-FY10.

  • Total Enrollment FY 2000 over 67,000
  • Total Enrollment FY 2010 over 75,000

General Tax Funds Income Fund

In Millions

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Sponsored Projects Revenue

Restricted Funds

Budget Fiscal Year 2006-2010; Actual through December Fiscal Year 2009-2010

In Millions

Sponsored project revenue increased by 12.7% in total from FY06-FY10

$0 $100 $200 $300 $400 $500 $600 $700 $800

2006 2007 2008 2009 2010 359 329 321 161 351 175 406 269 267 280 122 270 131 298 12 13 13 7 15 8 17 UIUC UIC UIS & UA $640 $314 $290 $721 $636 $614 $609

  • 4.8%

.8% 3.6% 13.4%

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$0 $70 $140 $210 $280 $350 $420 $490 $560 $630 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 HHS NSF USDA Energy Defense Education Other

Federal Grants and Contracts Expenditures

All Functions – Total University

In Millions

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$0 $20 $40 $60 $80 $100 $120 $140

2005 2006 2007 2008 2009 2010 $101 $115 $102 $113 $106 $41 $68 $81 $84 $105 $120 $114 Actual Budget

Utility Budget versus Actual Expenditures

Fiscal Year 2005 through Fiscal Year 2010

In Millions

FY10 Actual is through 11/30/09

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Natural Gas Hedging Program

Summary of Gas Procurement Program Volume Requirement = Must Run Gas Requirement to produce only steam load Landed Price = field price + basis + Nicor Enerchange fee + NGPL fees In accordance with Board established fuel procurement policy, Fiscal Year 2010 and 2011 core gas supply has been secured via physical contract. Market price risk has been essentially eliminated for these years. Purchases for FY12 and FY13 are underway.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2010 2011 2012 2013 96% 91% 34% 2% Percent Committed Volumes $7.91 $7.11 $7.42 $7.51 Landed Price

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$0 $20 $40 $60 $80 $100 $120 $140 $160

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Outstanding Annual Net Debt Service Requirements by Issue Type AFS COPS HSFS SC In Millions

Auxiliary System 55.7% COPs 33.8% Health System 3.6% UIC South Campus 4.3% Internal/Other 2.6%

$1,686.9 Million Total Outstanding at June 30, 2009

University Debt

Fiscal Year 2010 through Fiscal Year 2020

Fiscal Year 2010 debt service represents 2.5% of

  • verall UI budget
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Debt Capacity

  • Leverage and Debt Service Coverage
  • Capital Plans / Facility Needs
  • Operating Margins
  • Financial Resources
  • Comparison to Peer Universe

Quantitative Attributes Qualitative Attributes

  • Revenue Diversity
  • State Relationship
  • Management & Governance
  • Enrollment & Student Demand
  • Market Position

AAA AA+ AA AA- A+ A A-

(S&P rating scale)

  • $1.7 billion debt outstanding as of 6/30/09
  • $250 million recaptured capacity in 5 years
  • $600 million recaptured capacity in 10 years
  • Health Services Facilities System

(Moody’s rating A2 one notch upgrade in 2007)

  • UIC South Campus

(Moody’s rating A1 since 1999)

  • Auxiliary Facilities System
  • Certificates of Participation

(Moody’s ratings Aa3 since 2000)

Less Debt More Debt

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University of Illinois Credit Position Moody’s Commentary

Positives

  • Premier public university in Illinois: multiple campuses and strong student

demand

  • Nationally prominent reputation in research with diversified sources of research

funding

  • Essentially balanced operating performance despite recent cuts in state

appropriations

  • Expected growth in resource base through Brilliant Futures Campaign
  • Limited additional debt and capital plans

Challenges

  • Significant ongoing capital needs
  • Highly leveraged balance sheet relative to peers
  • Exposure to healthcare sector challenges
  • Declines and delays in State operating support