Where excellence and opportunity meet.™ O PEN C AMPUS F ORUM W ISCONSIN ’ S 2013-2015 B IENNIAL...

Where excellence and opportunity meet.™

OPEN CAMPUS FORUMWISCONSIN’S 2013-2015 BIENNIAL STATE BUDGET

WEDNESDAY, MAY 1, 2013

11:45 A.M. TO 1:00 P.M. - SAGE HALL ROOM 1210

CAMPUS FORUMMAY 1, 2013

A. Review – The Campus and System Diamond Charts & the Governor’s $181 million in additional investments

B. Legislative Review – Joint Finance Committee

C. Fund Balance Reserves

D. Anticipated Decisions

UW System Diamond Chart

$1,397,599

UNIVERSITY OF WISCONSIN SYSTEM 2012-2013 OPERATING BUDGET

$5,901,419,864—TOTAL $5,089,267,864—Total Without Direct Lending

Federal

$1,843,593,652 31.24%

Gifts Grants &

Contracts $638,743,383

10.82%

TUITIO N

$1,277,395,072 21.65%

STATE

$1,076,816,593 18.25%

Research & Public Service $673,878,146

36.55%

%


1.34%


56.02%


16.14%

Other $438,085,503

51.71%

Instruction $32,937,612

3.89%

Infrastructure $42,598,735

2.31%

Other $1,525,503

0.08%

Other Student Related $38,747,059

2.10% %%%


1.98%

Financial Aid Direct Lending $812,152,000

44.05%


56.98%


37.21%


4.29%

Financial Aid $13,283,080

1.57%

%%

Other $494,000

0.08%


4.60%


20.24%

%%


9.27%


8.83%

%%


0.35%

Other $6,794,596

0.63% %


54.02%


16.01%


9.27%


3.93%

(1) Other Student Related = Student Services and Academic Support (2) Infrastructure = Physical Plant, Institutional Support (3) Other = Farm Operations, Hospital, and Auxiliaries

O ther O perational

Receipts $217,735,685

3.69%

Auxiliaries & O ther

Receipts $847,135,479

14.35%

Other $7,886,399

3.62%


3.00%


20.43%

Other $0

0.00%


5.13%


67.75%


14.17%


26.72%


2.75% .30%

Research & Public Service $524,581

0.04%

Financial Aid Other $238,136,554

12.92%

Instructional Operating B Budget

UNIVERSITY OF WISCONSIN OSHKOSH 2012-2013 COMPREHENSIVE OPERATING BUDGET

$241,716,500 – TOTAL $185,716,500 – Total Without Direct Lending

Federal

$84,926,478 35.13%

Gifts Grants &

Contracts $4,058,502

1.68%

TUITION

$66,315,782 27.44%

STATE

$40,989,850 16.96%

Research & Public Service $4,361,186 5.14%

%

Research & Public Service $880,249

2.06%

Research & Public Service $632,667 23.83%

Research & Public Service $424,444 1.04% 0.71%

Other $27,967,303

65.39%


2.47%

Infrastructure $96,171 0.11%

Financial Aid Direct Lending

$56,000,000 65.94%


8.42%


36.26%

Instruction $913,197

2.14%


27.94%

Financial Aid $7,000 0.02%

%%

Other $0.00 0.00%

Infrastructure $409,905 10.10%

Instruction $626,820 15.44%

%%

Other Student Related $449,689 11.08%


27.12%

%%

Financial Aid $0.00 0.00%

Other $0.00 0.00%

%


61.81%


23.91%


11.60%

Financial Aid $667,083 1.64%

(1) Other Student Related = Student Services and Academic Support (2) Infrastructure = Physical Plant, Institutional Support (3) Other = Farm Operations, Hospital, and Auxiliaries

Other Operational

Receipts $2,655,438

1.10%

Auxiliaries & Other

Receipts $42,770,450 17.69%

Infrastructure -$32,903 -1.24%

Other $0

0.00%


2.84%


69.23%


72.73%


27.93%

Other Student Related $124,550

4.69% .30%

Research & Public Service $0.00

0.00% 0.00%

Financial Aid Other $16,271,223

19.16% %%%

Other Student Related $988,239

1.16% %%%

Other $62,620 0.08% %%%

Residence Life Student Activities

Student Union Food Service

Athletics Printing Center

Bookstore Parking

UW Oshkosh Diamond Chart

UNIVERSITY OF WISCONSIN OSHKOSH 2012-13 OPERATING BUDGET2012-13 OPERATING BUDGET $241,716,500

Total Budget: $241,716,500

Federal Funds $84,926,478

Gifts, Grants & Contracts $4,058,502

Auxiliaries $42,770,450Other Operational Receipts $2,655,438

Combined Total: $45,425,888

GPR + Tuition/Fees Total: $107,305,632

GPR$40,989,850

Tuition/Fees$66,315,782

44%

35%

2%

19%

56%

17% 27%

38%GPR

62%Tuition/Fees

100%CombinedSubtotal

Focus on the Relative Allocation GPR v. Tuition/Fees

CurrentData

+ =

2013-15 Budget – Details of the Governor’s Budget Proposal - $181 Million in Additional Investments in the UW System

Note: This $89.4 million in flexible “block grant” funding covers costs during 2012-2015 that include items historically funded as “cost to continue” (e.g., fringe benefit costs) or costs associated with ongoing operations and existing commitments (e.g., utilities).

Note: This $20.8 million represents a one-time budget adjustment addressing cost issues from 2011-2012. The block grant funding model changed the prior paradigm.

New Fiscal Paradigm$110.2 Million

New Fiscal Paradigm$110.2 Million

Academic Student Fees

Auxiliary Enterprises

General Operations Receipts

Federal Aid - Special Projects

and Federal Indirect Cost

ReimbursementExtension

Student Fees

Gifts and Donations -

WARFAll Other PR

AppropriationsTotal PR

Appropriations

(131) (128) (136) (144 and 150) (189) (135)UW-Madison $101,998,449 $72,400,814 $50,887,048 $80,596,964 $4,390,045 $40,772,120 $69,122,207 $420,167,648UW-Milwaukee $45,597,364 $8,455,221 $12,903,893 $9,302,296 $20,570,085 ($4,301,786) $92,527,073

UW-Eau Claire $14,077,671 $22,018,782 $5,793,382 $1,449,356 $2,642,438 $6,917,988 $52,899,616UW-Green Bay $4,321,766 $4,318,066 $4,192,641 $697,659 $2,911,304 $1,842,980 $18,284,415

UW-La Crosse $27,739,815 $31,708,972 $21,240,714 $678,094 ($61,160) $3,495,826 $84,802,261UW-Oshkosh $12,005,766 $7,847,204 $14,335,853 ($117,515) ($29,896) $2,731,469 $36,772,882

UW-Parkside $5,453,401 $3,062,194 $830,713 ($27,729) $99,256 $535,105 $9,952,939UW-Platteville $12,061,305 $3,789,338 $1,639,985 $141,093 $240,577 $4,239,189 $22,111,487

UW-River Falls $8,558,846 $9,649,642 $1,204,899 ($219,147) $1,088,232 $3,152,993 $23,435,465UW-Stevens Point $10,727,959 $13,810,569 $3,193,722 $2,946,274 $904,552 $657,043 $32,240,119

UW-Stout $2,889,710 $1,119,719 $8,938,663 $515,314 $442,166 $3,685,390 $17,590,962UW-Superior $1,108,098 ($6,170,998) $352,930 ($345,664) $89,349 ($598,764) ($5,565,049)

UW-Whitewater $27,446,938 $4,877,585 $3,156,668 ($993,066) $1,282,251 $2,828,925 $38,599,302UW Colleges $12,643,143 $2,671,113 $4,914,168 $771,656 $201,963 $1,104,823 $22,306,866UW-Extension $22,672 $1,832,272 $1,548,993 $7,120,677 $10,596,387 $2,313,863 $23,434,864UW System Admin ($46,602) $4,000 $12,964,987 $12,922,385

UW-Systemwide $127,488,104 $2,660,049 $2,910,968 $17,383,129 ($7,902,614) $142,539,6361

Total $414,141,007 $184,003,940 $138,045,240 $119,903,390 $45,367,550 $40,772,120 $102,789,623 $1,045,022,8692

1$170,389,741 to cover carryover amounts and Fund 189 Pooled amounts are reallocated to respective institutions.

2Due to financial statement adjustments this balance does not equal the Total Ending Balance - PR appropriations of $1,045,200,572 as provided by LFB and LAB.

Figure 1: Total FY 2011-12 Program Revenue Appropriation Balances

UW System Program Revenue Balances

Understanding our Uncommitted Reserve

Behind the numbers… $37 million total reserve Roughly one-third, or $12 million, is from

tuition fund balance (differential and regular tuition)

Total PR BalancesTotal PR Balances $36.8 million$36.8 million1. Classroom seats, technology, capital

projects and teaching mission $7.5 million2. Recurring, self-supporting

academic programs (campus-wide) $8.2 million

3. STEP, USP, Innovative New Programs $6.1 million

4. Targeted Services by funding agencies $2.7 million

5. Auxiliaries – self-supporting $7.8 million6. Differential tuition – funding

for student-support areas $1.5 million

Uncommitted ReserveUncommitted Reserve$3.0 million$3.0 million

UW Oshkosh FY 2011-12Program Revenue Appropriations

Balances

CombinedTotal$33.8million

A Million Dollar Example: Environmental Research and Innovation Center (ERIC)

ERIC – contract lab specializing in customized testing & research $1 million campus investment from campus fund balance as well as grant and contract

revenue – not state tax dollars $700K renovation of underutilized riverfront building (loan to be repaid) $300K in equipment 4 fulltime laboratory employees in Oshkosh (2) and Eagle River (2) 300 paid student internships over the past 8 years

15 County Partners with ERIC-operated testing facilities Ashland, Eagle River, Sturgeon Bay, Manitowoc and Oshkosh

$5 million in EPA research grants plus additional revenue from governmental, and industrial contracts and testing

Provides living learning laboratory for current STEM students and future students majoring in electrical, mechanical, and environmental engineering technology programs

This demonstrates how and why the strategic reinvestment of fund balances is fiscally prudent.•ERIC provides more than a 5-1 return on the initial investment•Advances exceptionally high quality teaching, research & service initiatives and experiences•A member of the Bd. of Regents noted ERIC is a preeminent example of the Wisconsin Idea

This demonstrates how and why the strategic reinvestment of fund balances is fiscally prudent.•ERIC provides more than a 5-1 return on the initial investment•Advances exceptionally high quality teaching, research & service initiatives and experiences•A member of the Bd. of Regents noted ERIC is a preeminent example of the Wisconsin Idea

Competing Million Dollar Examples: ERIC v. Cost-to-Continue

Option A – ERIC – $1 million campus investment (Note: $700,000 loan to be repaid) Collaborative partnership – a high-impact educational experience Creates 4 fulltime jobs 300 paid internships (to date) Over $5 million in research grants and other revenue

Option B – Cost-to-Continue – Transfer from uncommitted reserve to offset fiscal shortfall – e.g., increased cost of fringe benefits Uses campus-based funds to address shortfall in state revenues Fully expends $1 million – no return on investment … does not address ongoing

structural need for funds Creates no new jobs, no student internship, no external partnerships or collaboration

Scorecard: ERIC Lab v. Cost-to-Continue

Criteria ERIC LabCost-To-Continue

1. Addresses High Priority Expenditures Yes Yes

2. One-Time Expenditure Yes, and loan repaid with ROI funds

Yes, but ongoing cost not covered

3. Future Cost/Need for Funding No Yes

4. Return on Investment Yes (5X+) No

5. Creates New Jobs Yes No

6. Collaboration with Local and Regional Partner

Yes No

7. Student Internships Yes No

8. High-Impact Learning Experience Yes No

9. Creates Future Revenue Stream – Grants and Contracts

Yes No

Understanding our Uncommitted Reserve

$3 million rainy day fund – Why and How Used? Addressed unanticipated fluctuations in

enrollment numbers Addressed unexpected changes in financial

planning assumptions Addressed key areas of campus initiative and

re-investment

The Bottom Line1.Students are paying more tuition (both relatively and absolutely) 60/40 v. 40/602.Fund balances have increased and include relatively more tuition3.Dynamic Planning Context – Prevailing Campus Conditions

A. We have maintained historic enrollment levelsB. We are prepared for persistent and continuing fiscal

uncertaintyC. We will generate new funding through innovative and

entrepreneurial initiativesD. We will continue to ensure that all funding sources are

applied and reinvested in thoughtful, strategic and fiscally-prudent areas

The Bottom Line1.Students are paying more tuition (both relatively and absolutely) 60/40 v. 40/602.Fund balances have increased and include relatively more tuition3.Dynamic Planning Context – Prevailing Campus Conditions

A. We have maintained historic enrollment levelsB. We are prepared for persistent and continuing fiscal

uncertaintyC. We will generate new funding through innovative and

entrepreneurial initiativesD. We will continue to ensure that all funding sources are

applied and reinvested in thoughtful, strategic and fiscally-prudent areas

Understanding Major Trends

Our Commitments Going Forward1.We will become even more innovative, entrepreneurial and creative in order to identify new potential revenue sources.2.We will be more efficient and more effective in order to improve the quality and value of all services we provide.3.We will manage all revenue sources – all fund balances and all uncommitted reserves – in thoughtful, prudent and strategic ways.4.We will improve our authentic communication with both internal and external stakeholders in order to promote transparency and shared understanding of all academic and fiscal issues, challenges and opportunities.5.We will build upon our established commitment to civility and responsible patterns and practices of community engagement.

Our Commitments Going Forward1.We will become even more innovative, entrepreneurial and creative in order to identify new potential revenue sources.2.We will be more efficient and more effective in order to improve the quality and value of all services we provide.3.We will manage all revenue sources – all fund balances and all uncommitted reserves – in thoughtful, prudent and strategic ways.4.We will improve our authentic communication with both internal and external stakeholders in order to promote transparency and shared understanding of all academic and fiscal issues, challenges and opportunities.5.We will build upon our established commitment to civility and responsible patterns and practices of community engagement.

What does this all mean for UW Oshkosh?

1. Value employees and abide by contracts, policies and established procedures.

2. Budget for activities that are central to the mission, add value, or are required.

3. Protect the direct instructional undergraduate and graduate teaching mission.

4. Protect the integrity of services supporting the University’s mission.

5. Continue the commitment to the University’s strategic plan and established priorities.

UW OshkoshBudget Principles

Date* (see note to the right) Action Nov. 12, 2012 UW Oshkosh 2013-2015 Budget Submission

Aug. 23, 2012 Board of Regents – Approves Budget submits to State

Feb. 20, 2013 Governor Walker’s Budget Address

Feb. 27, 2013 Open Forum

February-June 2013 Budget Review – Joint Finance Committee

March 7, 2013 Meeting of the Board of Regents, University of Wisconsin System

March 13, 2013 U-PLAN budget update/feedback meeting

March 18-22, 2013 UW Oshkosh Spring break

April 4/5, 2013 Meeting of the Board of Regents, University of Wisconsin System

April 10, 2013 U-PLAN budget update/feedback meeting

Mid-April to Mid-May 2013 Joint Finance Committee - Executive Deliberations (agency budget reviews)

May 1, 2013 Campus Forum

May-June 2013Joint Finance Committee – Completes all ActionsThe Legislature and the Governor then finalize the budget (target date: July 1st).

June 6/7, 2013 Meeting of the Board of Regents, University of Wisconsin System

June 12, 2013U-PLAN budget update/feedback meeting

July 1, 2013 Start of the 2013-2015 Fiscal Year (target for legislative approval)

Late July 2013 Governor Walker takes action on the biennial budget

UW OshkoshBudget-Related Timeline

* Note: Regular meetings will be held with governance group leaders and the U-PLAN Council. Additionally, during this entire process, periodic communications will be sent to the campus community

Where excellence and opportunity meet.™

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Where excellence and opportunity meet.™ O PEN C AMPUS F ORUM W ISCONSIN ’ S 2013-2015 B IENNIAL...

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