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The Florida International UniversityBudget Town Hall Discussion

May 18, 2009

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AGENDA

THE FLORIDA INTERNATIONAL UNIVERSITY

Update from Last Town Hall MeetingLegislative Budget Update Federal Stabilization Fund

E&G Budget Reduction Proposed PlansProposed Plans Academic AffairsProposed Plans Non-Academic Affairs Operations

Strategic Evolution of the UniversityDevolutionCompliance

Next Steps: Timeline

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LEGISLATIVE BUDGET UPDATE

Net 15% General Revenue reduction

$29M recurring reduction

Offset by $1.2M non recurring

Lotto funds reduction of $2.5M - uncertainty about future collections

PECO funding reduced by $31.2M over last year

No funding for Courtelis Facility and Challenge Grants

Positive Outcomes

Tuition increase of 8% for undergraduate

Undergraduate differential tuition up to 7% additional

College of Medicine 100% funded

$10.9M additional recurring funds

$.9M one time Federal Stabilization funds

Additional ONE TIME funding from Federal Stabilization fund $14M

RESULT : CONTINUE WITH BUDGET REDUCTION PLANS

Unfavorable Impacts

Excluded from 2% state employee salary cut

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RESTRICTIONS ON EDUCATION STABILIZATION FUNDSFederal Guidelines

* The list of prohibitions is not meant to be all-inclusive; uses and prohibitions are also subject to ARRA (American Recovery and Reinvestment Act) and other applicable requirements.

Education and General expendituresModernization, renovation, or repair of instructional, research, or student housing facilities

EndowmentsMaintenance of systems, equipment, or facilitiesMaintenance costs, new construction, modernization of athletic facilities or religious facilities Restoring or supplementing a "rainy day" fund

Source: Guidance on the State Fiscal Stabilization Fund Program, U.S. Department of Education Washington, D.C. 20202, April 2009 (Page 26-30)

PossibleUses

Prohibitions *

Strategically directed to strengthen FIU going forwardon non recurring critical investments

One Time Funds As Temporary Bridge

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EDUCATION STABILIZATION FUNDS

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EDUCATION STABILIZATION FUNDS

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EDUCATION STABILIZATION FUNDS

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AGENDA

THE FLORIDA INTERNATIONAL UNIVERSITY

Update from Last Town Hall MeetingLegislative Budget Update Federal Stabilization Fund

E&G Budget Reduction Proposed PlansProposed Plans Academic AffairsProposed Plans Non-Academic Affairs Operations

Strategic Evolution of the UniversityDevolutionCompliance

Next Steps: Timeline

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THREE YEAR ROLLING PLANOperating Gap

Cumulative Amounts

NET GAP UNITS' CUTS  08‐09 plan 

ADDITIONAL CUTS 

08‐09 ($15.0) $15.0 

09‐10 ($34.6) $23.2  $11.4 

10‐11 ($48.7) $35.7  $13.0 

11‐12  ($53.3) $35.7  $17.6 

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ACADEMIC AFFAIRS GROUP STRUCTURE

Strategic to FIU

Return on Investment

Cost

Faculty Investment

PhD Production

Criteria Relative Importance / Definition

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7

5

3

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As defined in FIU strategic plan

Total of all funding divided by E&G support –tuition, research, gifts, and auxiliariesCollege level analysis using Delaware study benchmark

Faculty cost plus startup dollars expectation

Three year average PhDs awarded divided by Tenure-Tenure track faculty

ACADEMIC AFFAIRS BUDGET REDUCTION PLAN

Group 1 (overall score > 60) 3.3% 3.6% 5.0% Arts & Sciences (64), Business (61), Engineering &Computer Sciences (64), Public Health & Social Work (66)

Group 2 (overall score 40 – 59) 4.1% 4.6% 6.2%Hospitality (54), Nursing & Health Sciences (54),Education (49)

Group 3 (overall score < 39) 5.1% 5.6% 7.7%Architecture & the Arts (38), Journalism (37), Law (38)

Group 4 (overall score not applicable) 5.3% 5.9% 8.0%Library, Honors, Museums, Student Affairs andall other Provost areas

ADDITIONAL BUDGET REDUCTION PLAN

Cumulative Percentages

09-10 10-11 11-12

Reductions for planning purposes, subject to change

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Shift to Other Funding/Revenue Sources

Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M

ACADEMIC AFFAIRS CUT STRATEGIES

Lower Operational Costs

• Private support for museum operations

• Reallocate operating expenses to grants, overhead and fees

• Consolidate or reduce administrative functions – Eliminating Continuing and Professional Studies; 4 Vice Provost positions

• Consolidate six departments into three

• Reduce library purchases, reduce travel, service hours in enrollment services, convert print materials to library on line access, computer replacements, marketing in select programs, recruitment events, permanent and temporary staff

• Change instructional mix of summer courses, decreased use of adjuncts due to enrollment strategy, increase class size, eliminate faculty through vacancy, attrition

Saves $3.4MImpacts 66 Positions: Saves $9.3M

Attrition 25, Vacancy 19, Elimination 22

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Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M

Degree Program Closure

ACADEMIC AFFAIRS CUT STRATEGIES

Education Arts & SciencesRecreation &Sports Management ( B-62, M-19) Religious Studies (B-87,M-33) English Ed MAT (M-6) Mathematical Sciences (B-24)French Ed (B-0)French Ed MAT (M-2)Mathematics Ed MAT (M-4) Nursing & Health SciencesScience Ed MAT (M-2) Athletic Training (M-25) Social Studies Ed MAT (M-5) Occupational Therapy (B-0) Spanish Ed (B-0) Physical Therapy (M-0)Spanish Ed MAT (M-0)*Adult Education (M-9)*Adult Education & Human Resource Development (D-27)*Higher Education Administration (M-82,D-53)*International Education (M-19)*Urban Education (M-11)

Impacts 20 positions: Saves $1MElimination 20

Degree level: B – Bachelor ; M – Master; D - Doctorate*Degrees will be subsumed under existing degree program

NON-ACADEMIC AFFAIRS OPERATIONS*BUDGET REDUCTION METHODOLOGY

Incremental Planned Cuts

Prioritization

Planned cuts range from 1% to 7% by FY 2011-12

Group 4 cuts could exceed 35%

$3.7M in additional cuts

58 Positions: 7 Attrition, 22 Vacant, 29 Eliminated or Reassigned

*Includes Finance & Administration, Advancement, Community Relations, General Counsel, Government Relations, BOT Office, President’s Office

Group 1: Compliance and University-Wide Strategic ProjectsExamples: Equal Opportunity Program, IT Security, BioChemical Receiving

Group 2: Essential Services where service will be reduced or contractual commitments renegotiatedExamples: Media Technology Services, Disaster Recovery, PeopleSoft

Group 3: Areas where efficiencies gained from a change in current business processes or in customer service delivery methodExamples: Purchasing Services, Student Payment Services (Online)

Group 4: Less Essential Services where current levels cannot be affordedExample: Groundskeeping

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AGENDA

THE FLORIDA INTERNATIONAL UNIVERSITY

Update from Last Town Hall MeetingLegislative Budget Update Federal Stabilization Fund

E&G Budget Reduction Proposed PlansProposed Plans Academic AffairsProposed Plans Non-Academic Affairs Operations

Strategic Evolution of the UniversityDevolutionCompliance

Next Steps: Timeline

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HIDDEN BUDGET CUTS

*2001 Statutes :229.002(1)(f), 229.003(5)(a), 229.008 (1-9). 2002 Statutes: 1011.40(2), 1011.4105 (1-5)

Process2001 Statute* abolishes Board of Regents and authorizes Board of TrusteesTransitioned information systems and treasury operations

Incremental FunctionsBoard of Trustee Office and SupportInformation Systems – Financials and PayrollTreasury Operations

Unfunded Costs (estimated)

Recurring costs of $5.7M annuallyIncremental 25 FTE

Permeates the culture of the institution through evolving research compliance, federal regulatory requirements and SACs accreditation, NCAA

ResearchHIPAA, grant administration, controlled substances, human subjectsStudent/EmployeeInternational, confidential information, bargaining, IT security, emergency management, athleticsSACSCredentialing, assessments, QEP

Unfunded Costs (estimated)Recurring costs of $12.5M annuallyIncremental 119 FTE

Flexibility gained from devolution and strategic research mission requires annual critical investments of $18.2M and 144 FTE

Devolution Compliance

“Be careful what you ask – you may just get it”

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PERSONNEL GROWTH

Analysis of personnel growth from 2002 to 2008

E&G Faculty increased 85 positions

E&G Administrative personnel grew 88 positions

Non E&G positions grew by 105, funded from self sustaining operations (C&G, Auxiliary, and Student Fees)

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TIMELINE

May 26 Faculty Senate MeetingRecommendations on program closures

June 1 Board of Trustees Budget Workshop

June 8 Governor’s Veto period expires (approximately)*

June 12 Board of Trustees Meeting

Please send all comments, questions and ideas to President Maidique at presmail@fiu.edu

* Governor must sign or veto legislation within 15 days of receiving the bill. As of May 13, 2008 the governor had not received the appropriations bill.

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The Florida International UniversityBudget Town Hall Discussion

May 18, 2009