George Clark, Vice President Business & Financial AffairsWith contributions from Joel Klucking, John Swiney, Chris Huss, Sharon Jonassen, Rhonda Schmidt and Missy Davis

CWU Financial UpdatesBoard of Trustees

July 23, 2015

Agenda“State” Revenue• Tuition• State Funding • Projected Cost of Attendance

Auxiliary & Student Success Budget ProfilesFY 2016 & 2017 RecommendationsNext Steps / Questions

State/Tuition Budget

Legislative Budget Summary

• Tuition Roll-Back $13.4M

• Compensation $5.653M

• Degree Completion $1.5M

• Health Insurance Benefits $3.3M

CWU Cost of Attendance to Fall SlightlyResident Undergraduate

Tentative RatesFY 2015

FY 2016 (Est)

FY 2017 (Est)Subject to Change

Base Tuition $7,245 $6,904 $5,919 Services & Activities Fee $696 $696 $731

Subtotal Tuition and S&A $7,941 $7,600 $6,650 Housing $4,580 $4,809 $5,049 Dining $4,759 $4,997 $5,247 Student Fees $1,080 $1,095 $1,095

Total $18,360 $18,501 $18,041 Projected increases/year $141 ($460)Cost difference per mo /9 mo $16 ($51)

Enrollment to Increase ~100-300Annual Average Headcount +/-1%

(Generates tuition revenue of $61.2M and $55.2M in FY 16 and FY 17)

10,365

10,265

10,167

10,278

10,440

10,000

10,200

10,400

10,600

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Budget Assumptions

FY 2016 FY 2017

Faculty Bargaining Unit Increase of 4% + Promotions

Increase of 3% + Promotions

Classified Staff Increase of 2% Increase of 1.8%

Exempt Staff Increase of 2% Increase of 2% (tentative)

Revenue forecast increasing from FY 2015 $295.2M

(state investment in operating and capital)$114.8

$41.4 $43.4

$19.6

$69.8

$12.8$7.6 $5.5

$119.6

$43.7$47.1

$19.6

$69.8

$12.9$7.6 $5.5

$0.0

$40.0

$80.0

$120.0

State/Tuition Auxilliaries Grant/Contracts Local Funds Capital S&A/522 Funds Internal Service Scholarship

Mill

ions

FY16 FY17

FY 2016 Revenue Forecast $314.9M

FY 2017 Revenue Forecast $325.8M

$110.1

$114.1$112.3

$117.1$1.3

ASL Enhance Rev

$2.0

ASL Enhanced Rev

$111.4

$114.8 $114.4

$119.6

$105.0

$110.0

$115.0

$120.0

FY 2016 Original Stack FY 2016 Revised FY 2017 Original Stack FY 2017 Revised

Mill

ions

FY 15 CWU Strategies + Increased State/Tuition Revenue Stabilize Budget

State Share of Ed Cost Grows from 35% to 48%

$68.8 $68.3 $62.7

$6.5

$40.2 $46.5 $56.9

$0.0

$40.0

$80.0

$120.0

FY15 FY16 FY17

Mill

ions

$115.5M $119.6M

Carryover

Tuition and Admin Fee

$114.8M

State Support State Support State Support

Tuition and Admin Fee

Tuition and Admin Fee

12.3 17.4 20.9 18.8 3.3

C Stores Inventory, 0.5

Continuing Ed2.5Indirect

1.6

Other Fees1.9

Debt Policy Reserve6.6

Debt Policy Reserve6.4

Dedicated2.1

General Services, 0.4

Mandatory Fees2.2

Motorpool, 0.7Short Getz

1.5

Course Fees1.3 Dept Summer

2.6

Inventories1.4

BFA Commitment2.6

BOT 6% Reserve6.9

SS Bonds1.5

F F & E Replacement2.2

Emergent Issues…Workforce

1.7

Committed Operating Bud2.0

Unrestricted2.6

R&R Funds7.9

R&R Funds2.2

Maintenance Backlog15.0

Maintenance Backlog5.5

Nonrestricted (Maintenance)

5.4

Committed Committed Assigned Commitment Committed Assigned Committed Assigned Commitment Assigned

Tuition Aux Local S&A Internal Service

FY 2015 Carryover EstimatesNeed to address unmet liabilities, strategic

investments, and possible future budget gaps.

Reserve funds applied to 15M deferred maintenance

Auxiliaries Budget Forecast

Housing/Dining Increase in Rates Needed

Housing Revenue,

$19.9

Housing Revenue,

$21.8

Dining Revenue,

$11.6

Dining Revenue,

$12.7

$0.0

$10.0

$20.0

$30.0

$40.0

FY16 FY17

Mill

ions

Housing Revenue Dining Revenue

$31.5M$34.5M

• Anticipated increases in minimum wage

• General inflation

• New facility maintenance and renovation fund

Student Success Budget Forecast

FY16

FY 2016 S&A/SURC Budget is Sufficient(reviewing rate increase for FY 2017 to address wages, benefits, inflation, and maintenance backlog)

Sales & Service, $1.9M

Student Fees, $10.4M

Other Revenue, $0.2

$0

$2

$4

$6

$8

$10

$12

$14

Wages, $4,670,942

Benefits, $1,137,573

Utilities, $253,809

Repairs & Maintenance,

$235,433

Insurance, $132,469

Travel, $344,177

Admin Fee, $549,131

Debt Service, $2,606,596

Goods/Services & Misc., $1,719,031

Resources Net of Expenses, $858,016

$12.5M

Proposed Investments and Revenue Changes

StrategiesEnrollment Revenue Management System (ERMS)

Generate more applications - Outsourced

Leverage Pyramid brand refresh and Noel Levitz strategies in advertising and marketing materials

Enrollment Management (EM) Reorganization• Establish Recruiting Goals for Admission Counselors• Focus EM staff on increasing yield• Add 3 recruiter/counselors

Prospect/applicant assessment – outsource or budget $48K for equipment and training

Add (1 FTE) Capacity for Application Processing

Proposed:~$800K investment in Enrollment Recruitment

17

• Academic & Student Life (ASL) Alternative Revenue targets are included in forecasts– $1.8M for FY 2016– $2.3M for FY 2017

• Enrollment Targets – current HC 10,167 for FY 2015 are still a stretch goal– 10,278 for FY 2016 +111– 10,440 for FY 2017 +162

• Backlog of Building Maintenance / Rate Increases– AUX $7.9M of carryover to begin to address $15M high-priority

repairs/renovation and $306M of insured value – $2.2M for S&A/SUB/REC carryover to address $5.5M of high priority

repairs/renovation on $68M of insured value

Major Challenges Still Ahead for CWU

Summary

• Encouraging budget news– First time in 5-6 years CWU not required to address major

reduction and/or use carryover to fill out year deficits• Marketing/recruitment investments paying dividends with

increased enrollment• Budget streamlining positioned CWU for stability in FY16

– No structural deficits forecast per BoT guidance• ASL must hit revenue targets in FY16 and FY17

($1.8M/$2.3M) to create budget flexibility• Some 1-time funds available to address strategic initiatives or

future state cuts

Requested Trustee Approval

1. Annual projected revenue forecast of $314.9M for FY 2016 and $325.8M for FY 2017

2. Annual forecast for Ledger 1 (state/tuition) revenue: $114.8M for FY 2016 and $119.6M for FY 2017

3. Ledger 1 budgets for FY16 ($114.8M) and FY17 ($119.6M)• No carryover funds required to balance budget• No structural deficits forecast for both years

4. Initial planning for a 5% increase in housing/dining rates –will address at November 2015 BoT meeting

Questions?