FY17 Operating Budget &2015-17 Capital Budget

FY17 Operating Budget & 2015-17 Capital Budget1st Read May 20, 2016

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BUDGET POLICY AND PROCESS

Board of Trustees Budget PrinciplesBudget Planning Process

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EWU Board of TrusteesStatement of Budget Principles

Utilize budget INVESTMENTS

in the strategic plan

to achieve the mission of the university

FOCUSon the

teaching mission of the

university

Investin Eastern’s COMMITMENT

to student access and

success

Place university PRIORITIESover unit priorities

Conduct a collaborative

and transparent

budget PROCESS

Evaluate and IMPLEMENTany and all

feasible revenue

enhancement strategies

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Budget Process Timeline

Fall 2014 Unit level planning started 15-17 bienniumJune 2015 Approved state biennial budget July 2015 Implement 15-17 Budget July 1, 2015Fall 2015 Supplemental budget requests - technical adjustmentsDecember 2015 Governor’s Budget releasedMarch 2016 House and Senate proposed budgets approvedApril 2016 Approved state supplemental budget

May 2016 1st Read FY17 Budget with Board of TrusteesJune 2016 2nd Read (Approval) FY17 Budget – June Board of

Trustees meetingJuly 2016 Implement FY17 Budget July 1, 2016

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Role of University Budget Committee• Presidential advisory body consisting of representatives from faculty,

classified staff, exempt staff, students, and administrators.

• The committee reviews and makes recommendations to the president in response to new budget proposals, including budget reduction plans in times of reversions.

• The committee works closely with the university president to consider the university’s finances, enrollment, tuition, financial aid, the legislative session, and priority funding programs, and their interaction and connection with Eastern’s values, mission, and vision.

• Committee members actively participate and represent their constituencies while applying a university wide perspective during budget deliberations to deliver comprehensive, thoughtful, and balanced recommendations to the university president.

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University Budget Committee

UBC members are appointed by the president based on recommendations from each appropriate member affiliation. The committee meets monthly, and is chaired by the VP for Business and Finance, who exercises no voting rights.

Voting Membership

Six faculty members nominated by faculty senate representing each college and libraryFaculty Senate TreasurerOne classified staff memberOne student representativeOne deanOne exempt staff memberOne professional staff member (PSE – Exempt represented staff)One representative from each of the Presidential/Vice Presidential divisionsOne representative from Intercollegiate Athletics

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Membership

Student Committees contribution to Operating Budget Services and Activities Fee Committee

• Proposes to the administration and governing board program priorities and budget levels for the Services and Activities Fees

• Comprised of 12 members: six students, four university members and two ex-officio members

Student Technology Fee• All students taking 6 or more credits are assessed the full student technology fee

(average 10,238 students) are charged $35 per quarter• Allocation of resources is recommended by the Student Technology Fee Committee• Fee funds general and open access student computing labs replacement and renewal of

equipment and operations, key technology services such as student email and other web services

• Annual replacement of 250-350 computers along with software, printers, storage, servers• Software renewal• Investment in the storage area network • New investment in the PUB renovation

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FINANCIAL PLANNING

Biennial Budget ProcessLong Term PlanningPlanning for Resource Sufficiency and Flexibility 

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Budget Relationship and Impact

Mission

EWU expands opportunities for

personal transformation through excellence in

learning.

Strategic Goalso Student Successo Institution of

Innovationo Community

Engagement

Revenue and Expenditures Budgets

EnableAchieve

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Planning Cycle Relationship to Financial Reporting

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• 2 year budget with internal planning for future biennia

• Multi-year enrollment planning

• Revenue forecast and projections

• Future cost impacts• Analysis of reserves• Strategies for revenues

and funding• Link to Strategic Plan

Budget and Planning Process

• Monthly- various financial reports are produced

• Variance reporting• Benchmarking and

industry level analysis• Audited annual financial

statements• Audited fund level

financial statements for selected funds

Financial Reporting

On-going analysis of spend rate and cash balances Interim reporting Budget vs. Actual Revenues and ExpensesOngoing enrollment review Financial Aid review Capital Projects

Financial Management

Historical Budget View

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Retrospective

• EWU has successfully navigated through the economic downturn to retain a sound financial position.

• State funding for operational budget continues to be constrained.

• Tuition authority restriction continues to impact future opportunities.

• Enrollment: focus on market position, demand, and capacity. Historically strong demand yet demographics indicate current market sector will slow.

• Declining state investment in deferred maintenance and capital funding presents a major issue for the future.

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A Challenging Budget Environment

2015-17 Biennium• Tuition authority restriction

continues to impact future opportunities

• Revenue growth at a slower pace

• Enrollment stability continues• Campus initiatives provide

future opportunities

2011-13 Biennium• Decreasing funding• Increasing costs• $25M decline in State

support• Tuition impact• Continued budget

constraints and reductions

2013-15 Biennium• Transforming for the

future• Revenue growth at a

slower pace• More dependent on

tuition• New Strategic Plan

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2009-11 Biennium• Challenging economic

environment driven by recession• $33.4M loss of state funds• Tuition impact• Internal budget reductions• Staff reductions and salary

freeze

2017-19 Biennium• Tuition policy provides

minimal revenue growth• State revenues early

projection is relatively flat• Revenue growth at a slower

pace• Enrollment stability continues-

plan 2% growth Y/Y

State Funding HistoryEastern Washington University 

2009‐11 Overview  2009‐11 Maintenance Level Funding $124,842,000 Reductions (33,424,000)

Total State Funding (Appropriation)  $91,418,000 

2011‐13 Conference Budget (5‐24‐2011)  2011‐13 Maintenance Level Funding  $ 93,840,000 Reductions  (25,751,000)

Total State Funding (Appropriation)  $68,089,000 

2013‐15 Conference Budget (6‐28‐2013)  2013‐15 Maintenance Level Funding Additions

$ 73,254,000 5,509,000 

Total State Funding (Appropriations) $78,763,000 

2015‐17 Conference Budget (4‐18‐2016)  2015‐17Maintenance Level Funding Additions

$ 82,387,000 21,118,000

Total State Funding (Appropriations) $103,505,000 

State Funding Change  ‐17%

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Key Funding Sources State Funds and Student Tuition

$0

$10

$20

$30

$40

$50

$60

$70

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Mill

ions Student Tuition State Funding

63%

37%

56%

44%

Source: Enact Bass Report (2016 -5J) FY17 Tuition Projections

The reduction in Resident Undergraduate tuition increased the percentage of state funding due to College Affordability Act.

GF-State Funding per FTE Student

$6,4

47

$4,4

61

$5,3

80

$6,3

59

$3,7

44 $4,5

66

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

2008 2009 2010 2011 2012 2013 2014 2015 2016

Funding per Budgeted FTE

Funding per Actual FTE

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EWU’s GF-State funding per OFM Budgeted FTE declined by 67% ($2,577) between FY2008 and FY2013. The increased state funding resulted from resident undergraduate tuition decrease in FY16.

Source: Data based on GFS allocations and OFM budgeted state enrollments.2015 projections based on original budget. Actual FTE funding based on GFS allocations and Annual Average state enrollments.

Enrollment

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Academic Year EnrollmentsState Support (AAHC)

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Eastern’s enrollments remain stable with planned future growth. Future enrollment goals will consider access, capacity, and fiscal balance within the context of the strategic plan.

Source: EWU Institutional Research

8543 8815 9141 9428 9551 9749 9733 9817

1224 11211114 1105 971 902 867 9089767 9936 10255 10533 10522 10651 10600 10725

0

2000

4000

6000

8000

10000

12000

2010 2011 2012 2013 2014 2015 2016 2017

GraduateHeadcountUndergraduateHeadcount

90% of all enrollments are recorded as state support. The remaining 10% are self support and

FY17 Projected Enrollment

FY16 State Enrollment

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Total HC – 10,600Total FTE – 10,332

Resident Undergraduate, 8782, 83%

Resident Graduate, 732, 7%

Domestic Undergraduate,

536, 5%

International Undergraduate,

415, 4%

Domestic Graduate, 113, 1%

International Graduate , 22, <1%

Nonresident, 10%

Resident Undergraduate Resident Graduate Domestic UndergraduateInternational Undergraduate Domestic Graduate International Graduate

Enrollment Mix

Legislative Session Impacts

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2016 Supplemental Budget Change

Eastern’s State Funding Approved Budget

2015-17 Biennium Funding Level* $102,699,000

Maintenance Level 59,000

Central Services 86,000

College Affordability Program (Tuition Reduction Backfill) 566,000

Moore vs HCA Settlement 120,000

PEBB Rate Adjustments (25,000)

New Funding Level, 2015-17 Biennium $103,505,000

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*EWU received $11.5M tuition backfill funding in the 15-17 Biennium Funding Level

State Budget Overview

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Policy implications

13-15 Resident Undergraduate tuition freeze15-17 Resident Undergraduate tuition freeze15-17 Resident Undergraduate tuition reduction to studentsCollege Affordability Act – additional state funding to backfill reduction Student success (degree completion) fundingSalary increase funded 3% FY16 and 1.8% FY17Related employee benefits mostly funded

OPERATING BUDGET

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Tuition & Fees  

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2015-17 Tuition and Fees

• Tuition Rate Increases• Mandatory Fees• Housing and Dining Rates

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FY2016 & 2017 Tuition & Fee IncreasesFY2017

% ChangeFY2017

Annual TuitionResident Undergraduate – Operating Fee -15% $6,110Nonresident Undergraduate – Operating Fee 5% $22,502Resident Graduate – Operating Fee 0% $10,955Nonresident Graduate – Operating Fee 0% $25,438Building Fee 2.2%

Service & Activity Fees 5%

Housing & Dining Rates 6.7%

Transportation Fee $60.00

Comprehensive Health & Wellness Fee $285.50

Parking Permits – all lots 8% Rates Varies

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2015-17 Operating (Tuition) Fee Assumptions

FY2016 FY2017Budgeted HC – state supported 10,651 10,651Enrollment Growth over FY15 plan .75% 0.00%Operating Fee Decrease-Resident Undergraduate -5% -15%Operating Fee Increase-Nonresident Undergraduate 5%* 5%EWU Financial Aid 4% 4%

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* Non-WUE students only in FY16

2017 Operating (Tuition) Fee Revenue

FY2016 FY2017

Gross Operating (Tuition) Fee Revenue 80,971,006 75,920,022

Less: Tuition Waivers (12,318,608) *(12,318,608)

EWU Grant (2,729,096) (2,527,057)

Uncollectible Allowance (425,000) (425,000)

Plus: Interest Income 275,000 275,000

Net Operating (Tuition) Fee Revenue 65,773,000 60,924,000

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Ledger 1

*Waivers may decrease

Total State Funding and Operating Fees

FY2016 FY2017 2015-17 Total

General Fund State $38,689,000 $48,098,000 $86,787,000

Education Legacy Trust Fund 8,304,000 8,414,000 16,718,000

Operating (Tuition) Fees 65,773,000 60,924,000 126,697,000

Recharges 2,378,773 2,378,773 4,757,546

Total $115,144,773 $119,814,773 $234,959,546

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Ledger 1

Local Dedicated

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Significant Funding Sources• Running Start/High School Programs• Eastern On-line• Summer Session• Student Technology Fee/Health & Wellness Fee• Course Fees• Program Fees

Ledger 2

FY2015-17 Local Dedicated Funds Budgets

FY2016 FY2017Revenue/Additions

Expenditures/Deductions

Change in Fund Balance

Revenue/Additions

Expenditures/Deductions

Change in Fund

Balance

Academic Affairs* $27,176,181 $31,390,068 ($4,213,887) 27,363,140 30,233,788 (2,870,648)

Business & Finance** 8,185,964 9,219,394 (1,033,430) 8,150,955 7,847,589 303,366

Student Affairs*** 4,593,150 5,245,592 (652,442) 5,093,150 5,467,727 (374,577)

Information Technology**** 1,202,276 1,246,946 (44,670) 1,236,563 1,735,251 (498,962)

Student Tech FeeAll Other IT

1,111,789124,500

1,612,001123,250

Funds Total $41,157,571 $47,102,000 ($5,944,429) $41,843,534 $45,284,355 ($3,440,821)

These funds finance their own asset renewal and replacement.

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Ledger 2

• *Academic Affairs – PTOL, Equipment Replacement and Other Operating Expenses• **Business & Finance – Interfund Loan to Athletics • *** Student Affairs – Operating Expenses• **** Information Technology – Technology for PUB Renovation

Budget spending approximately 10% of Unrestricted net assets

General and Educational Base Funding

FY2016 FY2017 2015-17 Total

General Fund State $38,689,000 $48,098,000 $86,787,000

Education Legacy Trust Fund 8,304,000 8,414,000 16,718,000

Operating (Tuition) Fees 65,773,000 60,924,000 126,698,000

Dedicated local Funds 41,157,571 41,843,534 83,001,105

Total $153,923,571 $159,279,534 $313,204,105

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Use of New Funding• Faculty and staff compensation increases• Faculty, Senior Lecturers and Quarterly Faculty• Fixed costs increases

FY2015-17 Service Funds Budgets

FY2016 FY2017Revenue/

RechargesExpenditures/

Deductions

Change in Fund

Balance

Revenue/Recharges

Expenditures/Deductions

Change in Fund

Balance

Workforce Construction 1,590,000 1,776,490 (186,509) 1,862,000 1,862,330 (330)

Telecommunications 1,051,342 1,032,241 19,101 1,104,732 1,086,691 18,041

Motor Pool 536,000 455,715 80,285 545,000 554,002 (9,002)

Service Funds Total $3,177,342 $3,264,465 ($87,123) $3,511,732 $3,503,023 $8,709

• Service funds provide goods and services to other university units.• The funds finance their own asset renewal and replacement.• Budget gaps may be mitigated with cash reserves.

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Ledger 3

FY2015-17 Auxiliary Funds Budgets

FY2016 FY2017Revenue/Additions

Expenditures/Deductions

Change in Fund

Balance

Revenue/Additions

Expenditures/Deductions

Change in Fund

Balance

Housing & Dining $26,965,320 $22,925,046 $4,040,274 $27,715,523 $23,405,836 $4,309,687

S&A Fee Fund (net of Housing debt and financial aid)

11,932,384 9,360,442 2,571,942 11,358,047 11,642,034 (283,984)

Recreation Center Fees 224,250 224,250 - 210,000 230,156 (20,156)

Intercollegiate Athletics* 5,566,800 6,647,622 (1,080,822) 6,849,162 6,835,974 13,188

Bookstore 5,854,612 5,787,231 67,381 6,166,061 6,162,011 4,050

Pence Union Building 1,075,181 1,107,048 (31,867) 1,075,184 1,146,298 (71,117)

Parking 933,315 870,788 62,527 963,385 954,281 9,104

Auxiliary Funds Total $52,551,862 $46,922,427 $5,629,435 $54,337,362 $50,376,590 $3,960,722

These funds finance their own asset renewal and replacement.

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Ledger 3

* Interfund loan ($500,000) from Administrative Cost Recovery to cover FY17 Athletics deficit.

FY2016 Average Quarterly

Rate

FY 2016Annual

Rate

FY2017 Average Quarterly

Rate

FY2017 Annual

Rate

Double Room/Gold Meal Plan $3,422 $10,266 $3,648 $10,944

Single Room/Gold Meal Plan $3,722 $11,166 $3,948 $11,844

Housing and Dining Rates

$211

$211

$226

* Ave increase over PY 6.6% 6.7%

$

$226

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$

Increases in accordance with Housing & Dining long-term financial plan

Student Service and Activity Fee Fund

Sources FY2016 FY2017

S&A Fees (part of tuition) $6,717,484 7,026,102

Recreation Center Fee 2,200,000 2,200,000

PUB Renovation 2,200,000 2,200,000

Transportation Fee 609,000 609,000

Clubs (use of activity generated revenue) 205,900 205,900

Total Revenues $11,932,384 $12,241,002

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Ledger 3

Student Service and Activity Fee

Uses: As Recommended by Student Service and Activity Fee Committee

FY2016 FY2017

Debt Payments $2,929,918 $3,932,718

S&A Fee Allocation 3,146,992 3,351,118

PUB Fee Revenue to Renovation 3,000,000

PUB renewal and replacement 150,000 -

Transportation Contract 609,000 609,000

Transfer to Athletics 2,256,000 2,256,000

Financial Aid, Admin Cost 489,174 514,672

Clubs (use of activity generated revenue and reserve) 205,900 205,900

URC equipment replacement and facility improvements 445,000 455,000

Total Uses $10,231,984 $14,324,408

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Ledger 3

Athletics Budget

Revenue Expenses

Ledger 1 Support $5,247,895 $5,247,895

Ledger 3

Department Revenue 3,178,162

Student Support 2,256,000

Interfund Loan 500,000

Operating Expenses 5,920,974

Athletic Camps 915,000 915,000

Total $12,097,057 $12,083,869

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Ledger 1 and 3

Scholarships and Fellowships (Ledger 5)FY2016Budget

FY2017Budget

Federal Financial Aid Grants (includes Pell grant and the Supplemental Educational Opportunity Grant – SEOG)

$21,250,000 $21,750,000

State Financial Aid Grants (includes State Need Grant)

21,000,000 21,250,000

EWU Financial Aid Grants(includes EWU grant, endowed scholarships and license plate)

3,460,000 3,560,000

Private Financial Aid Grants (foundation endowed scholarships)

925,000 950,000

Total $46,635,000 $47,510,000

• Scholarships and Fellowships include funds for student aid programs, some federal and state aid programs and privately endowed scholarships.

• Funding levels assumed to remain relatively flat year-to-year.• Total increases driven by assumed enrollment growth rates.

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Sponsored Programs (Grants & Contracts)

FY2016Budget

FY2017Budget

Federal Research 5,155,000 5,205,000

State Research 2,690,000 3,505,000

Local Research 1,805,000 2,275,000

Private Research 2,905,000 2,670,000

Total 12,555,000 13,655,000

Funding and contracts are dependent on state and federal agency funding levels as well as the ability of local governmental and private agencies need for contracted services.

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Ledger 5

FY2016 FY2017 2015-17Education and General

General Fund State 38,689,000 48,098,000 86,787,000

Education Legacy Trust 8,304,000 8,414,000 16,718,000

Tuition Operating Fees 65,773,000 60,924,000 126,697,000

Recharges 2,378,773 2,378,773 4,757,546

Dedicated local Funds 41,157,571 41,843,534 83,001,105

Service Funds 3,177,342 3,511,732 6,689,074

Total Education and General 159,479,686 165,170,039 324,649,725

Auxiliary Enterprises 52,551,862 54,337,362 106,889,224

Scholarships & Fellowships 46,635,000 47,510,000 94,145,000

Sponsored programs 12,555,000 13,655,000 26,210,000

2015-17 Operating Revenues 271,221,548 280,672,401 551,893,949

FY2017 University Operating Budget

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Revenues- All Funds

FY2017 University Operating Budget

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Near General Fund State (001 & 08A)

18%Tuition Operating Fees23%

Recharges1%

Dedicated Local Funds17%

Service Funds1%

Auxiliary Enterprises18%

Scholarships & Fellowships

17%

Sponsored Programs5%

Expenditures

Near General Fund State (001 & 08A)Tuition Operating FeesRechargesDedicated Local FundsService FundsAuxiliary Enterprises

FY2016* FY2017 2015-17Education and General

General Fund State 38,689,000 48,098,000 86,787,000

Education Legacy Trust 8,304,000 8,414,000 16,718,000

Tuition Operating Fees 65,773,000 60,924,000 126,697,000

Recharges 2,378,773 2,378,773 4,757,546

Dedicated local Funds 47,102,000 45,284,355 92,386,355

Service Funds 3,264,465 3,503,023 6,767,488

Total Education and General 165,511,238 168,602,151 334,113,389

Auxiliary Enterprises 46,922,427 50,376,590 97,299,017

Scholarships & Fellowships 46,635,000 47,510,000 94,145,000

Sponsored programs 12,555,000 13,655,000 26,210,000

2015-17 Operating Budget 271,623,665 280,143,741 551,767,406

FY2017 University Operating Budget

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Expenditures- All Funds

For approval at June Board Meeting

*FY16 Budget includes adjustments in 2016 Supplemental Budget

Student Financial Impact

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Cost of Attendance – Resident Undergraduate On-Campus

FY2016 FY2017Tuition & Fees (Operating, Building and S&A Fee) $7,052 $6,110Course Fees 150 150Technology Fee 105 105Transportation Fee 45 60Comprehensive Health & Wellness Fee 274 286Student Recreation Center Fee 195 195Pence Union Building Fee 195 195Books & Supplies 1,095 900Total Educational Costs $9,111 $8,001Room & Board 10,263 10,945Transportation 1,350 1,125Personal Expense 1,860 2,055Total Living Costs $13,473 $14,125Total Cost of Attendance $22,584 $22,126

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ReappropriationsNew AppropriationsLocal Capital

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2015‐17 CAPITAL BUDGET

2015-17 Capital Budget

2015-17 BudgetReappropriation $8,126,000

New Appropriation $30,474,000

Total State Capital $38,600,000

Local Capital $47,660,000

FY2016 Capital Budget $86,260,000

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Capital Budget – Reappropriations

2015-17 Reappropriations

Upgrade/Repair Campus Water – 057,061 $5,453,000

Minor Works Preservation – 057, 061 2,673,000

Total Reappropriations $8,126,000

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Capital Budget – New Appropriations

2015-17 New Appropriations

Interdisciplinary Science Center (ISC)– design $4,791,000

Infrastructure Renewal 9,949,000

Science Building Renovations – pre-design 350,000

Minor Works Preservation 057,061 11,667,000

Minor Works Program 1,500,000

Preventive Maintenance 2,217,000

Total New Appropriations $30,474,000

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PUB Renovation

2015-17 Budget

Total Project Cost $44,300,000

Funding to the Project $9,300,000

Estimated Financed Amount $35,000,000

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2015-17 Capital Budget – Local Capital

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Local Capital 2015-17 FY2016 FY2017 2015-17

*PUB Renovation $2,600,000 $41,700,000 $44,300,000

Housing Renewal and Replacement 700,000 735,000 1,435,000

Dining Renewal and Replacement 420,000 400,000 820,000

EWU Recreation Center 295,000 330,000 625,000

URC Facility Improvements 150,000 125,000 275,000

Parking Lot Repair and Maintenance 70,000 35,000 105,000

Telephone Upgrade & Improvements 100,000 - 100,000

Total $4,335,000 $43,325,000 $47,660,000

*FY16 - PUB Design

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