UW-Platteville Financial OverviewOctober 2011

Robert Cramer -Assistant ChancellorCathy Riedl-Farrey - Director, Financial Services

• Summary of Funding Sources• State Budget Update• UW-Platteville Financial Update

– 2010-11 Closing Balances (June 30, 2011)– Summary of 2011-13 Budget Reductions– 2011-12 All Funds Budget– Financial Forecast Scenarios– TSI Detail– Debt Service Detail

• General Purpose Revenue (GPR) – includes general funding, specific purpose funding, and earmarked funding from the state, primarily from state sales and income taxes

• Program Revenue (PR) – includes tuition, auxiliaries, and segregated fees, as revenues received for services or from users

• Federal Revenue (PR-F) – includes federal grants, financial aid, direct loans, as revenues from a federal agency

• Segregated Funds (SEG) – includes transportation fund and other separate state accounts, credited by law to a specific state fund

• Gifts and Grants – includes revenues from the Foundation, non federal grants

2011-13 State BudgetAll Revenue Sources - $66.1 B

http://www.legis.state.wi.us/lfb/LFBPublications_ButtonPages/2011-13_budget.htm

General Purpose Revenue, $29,027,930,800 , 44%

Federal Revenue; 19078556300; 29%

Program Revenue ; 8725083600; 13%

Segregated Revenue; 7492356300; 11%

Bond Revenue, $1,731,700,900 , 3%

Ten Largest General Fund Programs in 2011-13 Program 2011-13 % Cumulative %

Elementary and Secondary School Aids $9,759,069,100 33.6% 33.6% Medical Assistance $3,946,921,300 13.6 47.2 UW System $2,095,251,600 7.2 54.4 Correctional Operations $1,994,614,400 6.9 61.3 Shared Revenues $1,877,394,300 6.5 67.8 School Levy/First Dollar Tax Credits $1,762,732,600 6.1 73.9 Appropriation Obligation Bonds $994,390,000 3.4 77.3 Community & Juvenile Correctional Services $541,787,200 1.9 79.2 Judicial and Legal Services $518,568,900 1.8 81.0 Choice and Charter School Programs $419,205,500 1.4 82.4 Subtotal $23,909,934,900 82.4% All Other Programs $5,117,995,900 17.6% 100% Total $29,027,930,800 100.0%

1997-99 1999-01 2001-03 2003-05 2005-07 2007-09 2009-11 2011-13 2013-15

-$500

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$1,532 $1,503

$1,719

$2,867

$1,546 $1,499$1,682

$2,511

-$310

Structural Deficit Estimates by LFB

$ M

illio

ns

• Structural deficit is eliminated• Biennial Budget included lapse of $174.3 million in

2011-13 and 2013-15• $65.8 million of the lapse is assigned to UWS• Estimated closing balance of budget was $9 million

at end of 2012-13 (on revenue of $14.8 billion) when budget was signed

• UWS receives 7% of the GPR budget and is assigned 38% of the GPR lapse

Key Points on 2011-13 Budget

UW-Platteville Financial Update

FY2010-11 Closing BalancesAll Funds Summary (Cash Basis)• Beginning Cash $ 25,137,116 (7/01/2010 rev)• Total Revenue $123,435,463• Total Expenses $124,736,260• Net Income $ 1,300,798

– Excluding direct student loan amounts• Closing Balance $ 23,836,319 (6/30/2011)

Select Fund Balances• Fund 102 $4,245,502

(General operations, tuition revenue, base of $48 million)• Fund 123 $3,976,226 (Debt service, $4

M base)• Fund 128 $2,384,352

(Dining, housing, parking, base of $25 million)• Fund 131 $10,280,339

(DLC, School of Ed Cost Recovery, TSI, base of $15 million)• Fund 136 $2,337,985

(Similar to 128, HTCP, camps & conferences, base of $3.7 million)

2010-11 Budget of $148.9 MillionGeneral Purpose Tax Dollars

1840296212%

Specific Purpose Tax Dollars11435118

8%

Tuition43852004

29%Federal

4119131028%

Gifts and Grants1216604

1%

Auxiliary En-terprises

3227025022%

Extension560106

0%

2011-12 Budget of $160.4 millionGeneral Purpose Tax Dollars

1701363111%

Specific Purpose Tax Dollars10913119

7%

Tuition48544731

30%Federal

4915571031%

Gifts and Grants1216604

1%

Auxiliary Enter-prises

32967056.995430221%

Extension591846

0%

Summary of 2011-2013 Fund 102 Reductions2011-12 2012-13

Base Budget Items

Expected 2011-2012 Budget Reduction (7.5.11)

($3,543,000) ($3,543,000)

Tuition Offset & system redistribution of cut 2,596,500 3,680,300

Subtotal Reductions ($946,500) $137,300

Cost to continue items $1,023,024 TBD

Total Base Budget Change for Fund 102 $76,524 TBD

Additional Budget Lapses (one-time dollars; $174. 3 M in 2013-15 also)

$174.3 M ($65.8M for UWS) ($1,305,136) ($555,713)

Potential $157.7 M More ($47.5M for UWS) ($817,037) ($527,549)

Total Budget Lapses - $300 M ($113.3M) ($2,122,173) ($1,083,262)

Financial Forecast Scenarios• Revenue modeling to project available funds from the

state, TSI, and tuition (traditional undergrads and grads)• Key variables are tuition, enrollment and state support• Assumes 5.5% increases in tuition annually in 2011-13• Assumes flat enrollment at 2011-12 levels• Assumes flat general purpose revenue excluding lapse• Assumes lapses of $300 million in 2011-13 and 2013-15

statewide with allocation as proposed in 2011-13

Scenarios Examined

• Original Projections (Fall 2010 with non res decline)

• Fall 2011 Baseline – updated for sixth week• Fall 2011 Baseline – updated for sixth week &

recent allocation of budget lapses

Enrollment Summary (FTE)Original Projections Fall 2011 Baseline

TSI Enrollment 1,255 1,301

Undergraduate In State 5,328 5,273

Undergraduate Non Res 85 131

Graduate Students 142 140

Totals 6,810 6,845

Note – these figures exclude distance learning, study abroad, and school of education cost recovery students

Original Projections

FY2012 FY2013 FY2014 FY2015 FY2016

(30,000,000)

(20,000,000)

(10,000,000)

-

10,000,000

20,000,000

30,000,000

40,000,000

Fall 2011 Baseline – prior to lapse

FY2012 FY2013 FY2014 FY2015 FY2016

(30,000,000)

(20,000,000)

(10,000,000)

-

10,000,000

20,000,000

30,000,000

40,000,000

Fall 2011 Baseline – after lapse

FY2012 FY2013 FY2014 FY2015 FY2016

(30,000,000)

(20,000,000)

(10,000,000)

-

10,000,000

20,000,000

30,000,000

40,000,000

Summary of Projected Closing Balances

FY2012 FY2013 FY2014 FY2015 FY2016

(15,000,000)

(10,000,000)

(5,000,000)

-

5,000,000

10,000,000

Net Available

Original Projection - 6,810 Fall 2011 - 6,845 (before lapse) Fall 2011 - 6,845 (after lapse)

TSI Budget Detail  2011-12 2012-13 2013-14  Count Projected Count Projected Count Projected

Revenue   1,255 12,512,350 1,290 13,287,000 1,265 13,427,975             

Expenses:              Salary & Fringe   156 9,846,000 157 10,178,000 157 10,522,000Supplies     772,000  704,000 800,000Debt     2,070,000  2,070,000 2,070,000Incentive Grants     837,500  847,500 835,000Contingencies      

Total Expenses:     13,525,500  13,799,500 14,227,000             

Note: 34 positions were formerly GPR funded

Unclassified FTE by division (all funds)Division Allocated Filled as of 10.17.11

Chancellor 26.37 25.36

Provost 57.02 53.40

Assoc Vice Chancellor 17.83 17.83

Administrative Services 33.25 32.67

Admissions 20.00 20.00

Student Affairs 39.68 38.77

University Advancement 11.00 12.00

BILSA 91.91 90.67

LAE 163.42 162.08

EMS 138.85 138.88

Total 599.33 591.66

Debt Service• UW-Platteville has two types of debt service on

facilities– General Fund Borrowing is funded through state

appropriations of general purpose revenue– Program Revenue Borrowing is funded through

University revenues including TSI• Debt is issued centrally by the State• 20 year bonds are typical

Debt Service DetailDescription Fund

FY2010 Budgeted

FY2011 Budgeted

FY2012 Budgeted

Bond End Date

General Fund 110 5,392,182 5,462,888 5,462,888 Parking 123 260,400 227,300 204,400 FY2030PAC 123 88,161 12,726 12,716 FY2012Fieldhouse Addition 123 415,000 319,294 430,704 FY2031Children's Center 123 35,832 35,842 36,092 FY2020Pioneer Student Center 123 918,566 919,251 926,966 FY2021Residence Halls 123 1,913,340 1,913,710 1,919,439 FY2030Stadium 123 153,736 154,771 155,808 FY2025Food Service/Union 123 417,973 428,239 441,453 FY2031Chancellor's Residence 123 15,236 15,241 15,360 FY2019Subtotal 123 4,218,244 4,026,374 4,142,938 TSI 194 2,070,000 2,070,000 2,070,000 FY2031 Grand Total Debt Service 11,680,426 11,559,262 11,675,826

• Proceed with Strategic Planning• Evaluate options to address lapses

– Consult with UWS and others on options to mitigate

– Consult with senates, deans, department chairs, and other on impacts and options

Questions and Next Steps