CREIGHTON UNIVERSITYCREIGHTON UNIVERSITY

2007/08 Budget Presentation2007/08 Budget Presentation

Board of Directors Meeting

June 4, 2007

2007/08 Operating Budget Overview

Represents a balanced budget for University operations, including the medical clinics

Undergraduate enrollment sustained at near-record levels Undergraduate tuition & fee rate for new students up 6%

(will be 15th of 28 Jesuit colleges and universities) 2007/08 operating budget is $326 million, an increase of

$14 million (4.5%) from the current year estimate Medical School budget (including clinics) is 41% of the

University’s total operating budget

2007/08 Operating Budget($Millions)

2005/06 2006/07 2007/08Actual Estimated Budget

Revenue Gross Tuition 154 168 179 Less Financial Aid (38) (43) (46) Net Tuition 116 125 133 Student Fees 9 10 11 Endowment 9 9 9 Gifts (Unrestricted operating) 7 8 8 Clinical & Affiliate Revenue 124 123 128 Auxiliary 21 23 24 Other 13 14 13

299 312 326Expense & Transfers Salaries 166 175 185 Employee Benefits 38 43 46 Other Expenses & Transfers 95 92 95

299 310 326

Net 0 2 0

2007/08 Revenue Highlights

General undergraduate tuition and fee rate increased 6% Other tuition rate increases: Law 4%, Medicine 4.5%,

Dentistry 7.3%, Pharmacy 5.5%, OT/PT 4%, Graduate 2%, Summer & Univ. College 0%

Room & board rates increased 4% Total enrollment budgeted to be basically even with the

FY07 record enrollment Clinical activities and affiliate revenues are up 4.2% Endowment distribution of $9.6M is 1.2% above FY07

Annual Enrollment (Full-time Equivalent)

06/07Adjusted 06/07 07/08Budget Estimated Budget

Undergraduate 3,566 3,647 3,642

Professional Law 462 454 462 Pharmacy/Hlth. Prof. 1,071 1,120 1,087 Dentistry 313 318 316 Medicine 472 488 485

2,317 2,380 2,349

Graduate 294 320 342

TOTAL UNIVERSITY: 6,177 6,347 6,334

Fall New Student Enrollment(Full-time Equivalent)

05/06 06/07 06/07 07/08Actual Budget Actual Budget

1st Time FreshmanArts & Science 749 720 739 745COBA 155 160 145 145Nursing 68 70 81 80

Total 972 950 965 970

External Transfers 109 105 104 105 Total 1,081 1,055 1,069 1,075

Total Scholarships to Tuition/Fees(Includes Discount, Funded Aid & Employee Remissions)

04/05 05/06 06/07 07/08

Actual Actual Est. Budget

Undergrad.-New Freshmen 48.5% 47.1% 49.2% 47.8%

Undergraduate-Total 42.3% 43.2% 43.8% 44.3%

Graduate/Professional 10.4% 9.4% 9.1% 9.7%

Total 27.5% 27.8% 28.4% 29.0%

Unrestricted Operating Gifts

926

3,735

1,899

956

4,790

1,670

1,249

4,961

1,750

1,208

4,734

1,900

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

05/06 Act. 06/07 Bud. 06/07 Est. 07/08 Bud.

($000's)

AthleticsOtherFin. Aid

Endowment Market Value ($Millions)

$100

$150

$200

$250

$300

$350

($ Millions)

Year-End Distributions ApproximateMarket Prog. Support Scholarships DistributionValue & Other & Restricted Total %

02/03 188 4.6 4.8 9.4 5.1%03/04 216 5.3 4.0 9.3 4.9%04/05 240 4.8 4.1 8.9 4.1%05/06 268 5.8 4.3 10.1 4.2%06/07 Est 310 5.8 5.0 10.8 4.0%07/08 Bud 330 6.0 5.2 11.2 3.6%

CU only: does not

include HFF ($91 Million at 4/30/07)

2007/08 Expense Highlights

Salary merit pool increase 3.50% (plus .25% for equity

adjustments in each VP area): $4.1M

Targeted faculty salary enhancements: Pharmacy,

Nursing, Dentistry ($547K)

8 new faculty: A&S, COBA, Dentistry ($540K)

Jesuit & staff salary market adjustments ($310K)

New programs in Dentistry & Nursing ($662K)

2007/08 Expense Highlights (cont.)

General non-salary increase 2.0% for schools and

administrative depts ($724K)

Library materials increase $333K (9%)

Arts & Sciences additions related to increased

enrollment levels (PT faculty, tenure-track faculty

start-up costs & other) $405K

Increased diversity scholarships ($415K - Medicine,

Pharmacy/HP, Dentistry)

Salary Merit Pool Increases(Excludes targeted faculty salary enhancements in various schools)

0.00%

4.00%

3.25%3.00%

3.25% 3.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

02/03 03/04 04/05 05/06 06/07 07/08

(05/06-07/08: Additional .25% above pool approved for equity issues at each VP area)

Employee Benefits ($000’s)04/05 05/06 06/07 07/08

Actual Actual Est. Budget

FICA 10,086 10,777 11,583 12,180 Retirement 8,875 9,178 9,846 10,310 Medical/Dental 10,848 11,089 14,614 14,668 Tuition Remission 6,234 6,301 6,819 7,663 Other 1,714 2,383 2,477 2,751 Total: 37,757 39,728 45,339 47,572 % Increase 4.6% 5.2% 14.1% 4.9%Employee Benefit Rates 30.3% 31.3% 30.5% 31.0%

School of Medicine 2007/08Operating Budget Overview

Enrollment budgeted at 485 (down from est. 488 in 06/07)

Tuition increase held to 4.5% to address student debt

Net clinic revenue projected at $98M (5.3% over 2006/07

budget & 6.5% over estimated 06/07 results)

New chair in Medicine; actively recruiting for Anesthesiology

Clinic volume growth: 12 new faculty recruitments (Surgery,

Radiology, Medicine & Anesthesiology)

Reflects reduced payments from CUMC under GME, Cardiac

and medical lab agreements

School of Medicine 2007/08 Operating Budget

($Millions)

07/0805/06 06/07 ProposedActual Estimated Budget

RevenueGross Tuition 19 20 21Less Financial Aid (2) (2) (2) Net Tuition 17 18 19Clinical Revenue 94 92 98Affiliate Revenue 22 23 22Other 9 9 8

142 142 147

Expense & TransfersSalaries 83 85 88Employee Benefits 18 19 20Other Expenses & Transfers 30 27 27 131 131 135

Net Contribution to Gen. Operations 11 11 12

RECAP

Balanced budget for FY08

Less cushion in enrollment targets

Highest risk areas: medical clinic

operations, health plan, utilities

Operating reserve expected to be adequate

to cover potential variances