University Leadership Assembly Dr. Denise Trauth, President April - - PowerPoint PPT Presentation

University Leadership Assembly

• Dr. Denise Trauth, President

April 9, 2020

Implications of COVID-19 Crisis for FY 2021

FY 2021 runs from September 1, 2020, through August 31, 2021

Two main sources of revenue that could be impacted due to COVID-19 are Appropriations and Enrollment. These estimates only include the Primary Fund Group, not auxiliaries or fee-funded activities.

v Best Case - $13.1 million in recurring revenue loss

– Appropriations do not decline – Enrollment declines 5%

v Worst Case - $36.6 million in recurring revenue loss

– Appropriation decline of 10% – Enrollment declines 10%

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What Steps Has Texas State Taken?

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v Cancelled Non-Essential Travel

– Expected Savings - $1.3 million in one-time funds

v Hiring Freeze

– Expected Savings - $1.4 million in one-time funds

v Budget “Savings Accounts”

– Deferred Spending - $8.9 million in one-time funds

v Delay Facilities Projects

– Deferred Costs - $150 million in one-time funds

What Are Other Universities Talking About Doing?

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v Deferment of Projects/Initiatives v Budget Reductions v Hiring Freezes v Permanent Salary Reductions v Furloughs/Layoffs v Fundraising Efforts

What is the CARES Act?

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v A nationwide stimulus package, the CARES Act provides approximately $14 billion for higher education funding. v Texas State is anticipated to receive $31.8 million. v 50% of the funding received must be given directly to students.

Future Impacts

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v We expect the financial impacts to last at least five years. v State of Texas Revenue Streams

– Oil and gas tax revenue funds a significant portion of the State of Texas budget

v 2020 is a Base Year for Formula Funding

– Our enrollment this year sets our formula funding for the following two years regardless of our enrollment changes

v Multi-year Impacts

– Enrollment declines travel through the enrollment pipeline and can take up to four years to correct