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NOTE: ELEMENTS OF THIS PRESENTATION ARE SUBJECT TO BOARD APPROVAL, AND ARE NOT YET FINAL.

President’s Recommended Budget for The University of Toledo Board of Trustees Finance & Audit Committee May 12, 2014. NOTE: ELEMENTS OF THIS PRESENTATION ARE SUBJECT TO BOARD APPROVAL, AND ARE NOT YET FINAL. The Heart of our Structural Issue. Growth Rate = - 2.27%. Growth Rate = 4.87%.

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NOTE: ELEMENTS OF THIS PRESENTATION ARE SUBJECT TO BOARD APPROVAL, AND ARE NOT YET FINAL.

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  1. President’s Recommended BudgetforThe University of ToledoBoard of Trustees Finance & Audit CommitteeMay 12, 2014 NOTE: ELEMENTS OF THIS PRESENTATION ARE SUBJECT TO BOARD APPROVAL, AND ARE NOT YET FINAL.

  2. The Heart of our Structural Issue Growth Rate = - 2.27% Growth Rate = 4.87% • The combination of enrollment declines, strain on State money, tuition inflation, and the need to reinvestment in our infrastructure is a structural issue that we must deal with over the next 3 years. Failure to deal with this would be poor stewardship on our part. Growth Rate = - 5.8%

  3. Remaining Budget Calendar Items • University Council – April 18 • Business Managers – April 23 • U. Council Finance & Strategy Subcom. – April 25 • Deans and VPs – April 23 • President Jacobs – April 30 • Board Finance Committee - May 12 • Board approval – June 16

  4. FY15 Financial Improvement Target Our target at the start of the FY15 budget process was $18M. We have hit this target, via the following: • Refined assumptions = $4.5M • Administrative cuts = $6.0M • Main Campus improvements = $2.7M • Health Science Campus improvements = $1.6M • UTMC improvements = $3.3M

  5. Major Assumptions • SSI increase of 1.8% • 2.39% increase in undergraduate tuition • 0% increase in general fee • 1% increase in graduate / prof tuition (except Law) • 0% change in enrollment, before new initiatives. Overall increase is 1%. • 2% increase in salaries and wages

  6. Areas of Investment • Salary increases for faculty and staff • Positions in Engineering, NSM, and Nursing colleges • $ to stimulate growth in externally funded research and development of on-line courses • Additional resources for recruitment of high-ability students • One World Schoolhouse and Schoolcraft College project • Investments in patient satisfaction, quality and safety

  7. Risks Contained in the FY15 Budget • Enrollment • State Share of Instruction (SSI) • Outcome of union negotiations • Funding only half of deferred maintenance • Healthcare benefits costs • Healthcare marketplace and ACA

  8. Longer-term Risks • Demographic trends • State funding • Changes in pension liability accounting • Growth in regulations and compliance • Pressure on tuition and student debt levels

  9. Incentive Plan • Externally funded research: • For incremental externally funded research over current year levels, we will increase the percentage of indirect cost recovery (IDC) returned to the colleges from 30% to 70%. • On-line class development • Additional funding will be available for faculty involved in developing on-line courses and programs. This will be administered by the Provosts’ Office, under the auspices of their current program.

  10. Carry-Forwards • We will implement a revised program of carry-forwards. • Reinstate balances from FY10 forward. • Designated funds in colleges only. • Plan by college still required, to facilitate cash flow planning. Plan approved by Dean, Provost, EVP CFO. • Encouraged for use on capital items

  11. Routine Capital • State biennial capital bill = $23.7M for UT. • Routine capital on top of State bill = $18M • Provost = $4M • Facilities = $5M • Info Tech = $3M • UTMC = $6M

  12. Hiring Process • RCG will no longer be part of hiring process. RCG will continue, with a new charge and group makeup. • Budgeted positions can be filled with Dean / VP approval. • Positions vacated in year will have 30 day wait period for re-engineering before they can be posted. • HRTD will be measured on “time to fill” once a job is posted • New positions will require Dean / VP approval, as well as SLT approval.

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