UC Berkeley Budget and Financial Outlook Office of the Vice - - PowerPoint PPT Presentation

UC Berkeley Budget and Financial Outlook

Office of the Vice Chancellor Finance August 2017 cfo.berkeley.edu

2015 Actual 2016 Actual 2017 Forecast 2018 Projection 2019 Projection 2020 Projection Base (114,389) (149,323) (172,452) (212,143) (242,398) (266,630) Target (114,389) (149,323) (110,000) (57,000) (20,000) 8,000 (330,000) (280,000) (230,000) (180,000) (130,000) (80,000) (30,000) 20,000 Net Surplus/(Deficit) In Thousands

Cumulati tive cost s t savings gs Cumulati tive rev even enue e generation ion

$0

To thrive in the future, Berkeley must pivot to revenue generation while maintaining cost efficiency

2 *Base: bottom line with no corrective actions taken **Target: bottom line with impact of revenue generation and cost savings initiatives Source: Office of the CFO analysis

* **

Ta Target Base se

To prepare for FY18, each division was responsible for comprehensive budgets driven by a strategic plan and metrics

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Sample strategic plan

Customized dashboards guided budget discussions with divisional leaders, the EVCP, and the CFO

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Sample dashboard

Academic Revenue Generation $25.2M 47%

Administration Revenue Generation $2.4M, 5% Administration Expense Reductions $7.6M 14% Research Expense Reductions $3.8M 7% Academic Expense Reductions $3.7M 7% Reserve Investments $11M 20%

Academic and administrative divisions collectively helped UC Berkeley meet its FY18 $54M budget improvement target through revenue generation and expense reductions

Source: Office of CFO analysis

Private Gifts $5M Executive Education, Summer Sessions, Sales & Services $7M Concurrent Enrollment*** $3M SSGPDP** $1.2M PDST* $7M Private Gifts $7M Letters & Science $3.8M Colleges $5.1M Schools $10.4M University Extension $5.9M

Academic Revenue by Category Academic Revenue by Division

5 *PDST: Professional Degree Supplemental Tuition **SSGPDP: Self-Supporting Professional Graduate Degree Programs ***Concurrent Enrollment: a program for University Extension students to enroll in UC Berkeley campus courses without being formally admitted to the university

Private giving to UC Berkeley reached record highs in the past two fiscal years

$316 $395 $348 $366 $463 $479 $470 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500

FY11 FY12 FY13 FY14 FY15 FY16 FY17

In Millions

Dollar Value of Gifts and Pledges

82 82 88 88 96 100 105 20 40 60 80 100 FY11 FY12 FY13 FY14 FY15 FY16 FY17 In Thousands

Number of Gifts and Pledges

Source: University Development & Alumni Relations 6

Between 2015-16 and 2017-18, the campus will add a projected 2,600 undergraduates

Source: Office of Planning & Analysis

5,000 10,000 15,000 20,000 25,000 30,000 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

26, 26,78 787 29, 29,38 388

Fresh shmen Transfer er

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The latest student registration data for Fall 2017 show increases in underrepresented minority and first generation college students

16.60% 20.90% 6.30% 12.00% 17.70% 24.00% 6.70% 13.50% 0% 5% 10% 15% 20% 25% All UREM* CA Resident UREM* Out of State UREM* 1st Generation College Class Starting in Fall 2016 Class Starting in Fall 2017

*UREM: underrepresented minority, including African Americans, Chicanos/Latinos, and Native Americans Source: Office of Planning & Analysis 8

Recent capital investments have supported UC Berkeley’s core mission and seismic priorities

*Auxiliary: Athletics, Student Union

~$2.9B of capital assets placed in service FY07 Actual - FY18 Estimated

Seismic/Life Safety 57% Non-Seismic 43% Academic 54% Auxiliary* 30% Administrative 1% Residential 15%

9 Source: Office of the CFO analysis

To meet the instructional needs of new enrollment, we are modeling growth based on student credit hours (SCH) and targeting resources to courses to reflect demand shifts

• 20,000

40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 College of Chemistry College of Engineering College of Environmental Design City & Regional Planning L&S Arts & Humanities L&S Biological Sciences L&S Math & Physical Sciences L&S Social Sciences L&S Undergraduate Division College of Natural Resources Goldman School of Public Policy Graduate School of Education Graduate School of Journalism School of Information School of Optometry School of Public Health School of Social Welfare 2015-16 Actual TAS Eligibe SCH 2017-18 Projected TAS Eligibe SCH

Growth in Undergraduate SCH 2015-16 to 2017-18

10 Source: Office of Planning & Analysis

*P3: funding provided by third parties via public-private partnerships Source: Draft 10-year Comprehensive Capital Plan

UC Berkeley’s 10-year capital needs exceed projected financial capacity

Cat ategor

• ry

Projec ected ed Needs Pote tenti tial F Funding Funding G g Gap

Figures are directional Gifts State Cash P3*

Aca cademic: c: teaching and research programs

$2,000M $300M $200M $100M

• $1,400M

Infrastr tructure: deferred maintenance and capital renewal of physical plants

$700M

• $50M

$150M

• $500M

Athleti tics: intercollegiate sports

$110M $40M

• $70M

Auxili iliarie ies: parking, student services, etc.

$400M $300M

• $50M
• $50M

Housing: g: student residence halls and dining facilities

$450M

• $200M

$250M $0

TOTA TAL G GAP

~$2B 2B

10-year Projected Capital Need and Estimated Resources 2017-2027

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