Campus Forum Wisconsin’s 2015-2017 Biennial State Budget & Transition Update

1. Campus Forum Wisconsin’s 2015-2017 Biennial State Budget & Transition Update Wednesday, February 26, 2014 11:30 a.m. - Sage 1216 4:00 p.m. - Sage 1214

2. Compliments to UW System for this Puzzle Conceptualization The Biennial Budget Puzzle Cost to Continue Debt Service Lapses Reductions Operating Budget Tuition Share of Costs New Initiatives Statutory Language Standard Budget Adjustments Compensation Financial Aid Capital Budget

3. Board of Regents Request Operating Budget Statutory Language Cost to Continue Tuition Share of Costs New Initiatives Standard Budget Adjustments

4. Student Financial AidHigher Educational Aids Board Operating Budget Statutory Language Cost to Continue Tuition Share of Costs Financial Aid New Initiatives Standard Budget Adjustments

5. Governor’s Executive Budget Operating Budget Statutory Language Cost to Continue Tuition Share of Costs Financial Aid Debt Service New Initiatives Standard Budget Adjustments

6. Capital Budget Operating Budget Capital Budget Statutory Language Cost to Continue Tuition Share of Costs Financial Aid Debt Service New Initiatives Standard Budget Adjustments

7. State-Funded Compensation Operating Budget Capital Budget Statutory Language Cost to Continue Tuition Share of Costs Financial Aid Debt Service Compensation New Initiatives Standard Budget Adjustments

8. Final Legislative Budget Operating Budget Capital Budget Statutory Language Cost to Continue Tuition Share of Costs Financial Aid Debt Service Compensation Reductions New Initiatives Lapses Standard Budget Adjustments

9. UW System Diamond Chart

10. UW Oshkosh Diamond Chart

11. Current Data UNIVERSITY OF WISCONSIN OSHKOSH2013-14 OPERATING BUDGET$250,173,654 total [$194,173,654 without Direct Lending] Total Budget: $250,173,654 34% Federal Funds $84,990,802 56% Gifts, Grants & Contracts $4,798,395 2% Auxiliaries $48,190,873 Other Operational Receipts $2,596,592 Combined Total: $50,787,465 20% GPR + Tuition/Fees Total: $109,596,992 Focus on the Relative Allocation GPR v. Tuition/Fees 44% GPR $43,120,790 17% Tuition/Fees $66,476,202 26% + = 39% GPR 61% Tuition/Fees 100% Combined Subtotal

12. Slide From Last YearUnderstanding 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

13. Inside Story:Fund Balance Fiasco … • $27.2 million fund balance and reserves • Public outcry • Major political consequences • What were the audit results? • Legislative Audit Bureau

14. Program Revenue Balances by Level of Commitment (as of 06-30-2012)

15. Levels of Commitment

16. Inside Story:Fund Balance Fiasco … LAB Audit Findings: $27.2 million fund balance • 40.5%: Planned balances (program revenues) • 38.2%: Designated balances (targeted commitments) • 9.8%: Obligated funds (commitments) • 11.0%: Reserve balances (emergencies, contingencies) • 0.4%: “Undocumented” $136,000

17. UW Oshkosh Budget Principles • Value employees and abide by contracts, policies and established procedures. • Budget for activities that are central to the mission, add value, or are required. • Protect the direct instructional undergraduate and graduate teaching mission. • Protect the integrity of services supporting the University’s mission. • Continue the commitment to the University’s strategic plan and established priorities.

18. Budget Cut $32.8 M UW System Perspective2014-15 Annual Budget(UW Must Fund) New Initiatives $1.3 M Pay Plan & Fringe Benefits $23.9 M est. Cost-to-Continue $3.9 M Ongoing: $61.9M GPR

19. Budget Cut $32.8 M UW System Perspective2014-15 Annual Budget(UW Must Fund) UW System Cuts … $61,900,000 UW Oshkosh Share $3,035,250 New Initiatives $1.3 M Pay Plan & Fringe Benefits $23.9 M est. Cost-to-Continue $3.9 M Ongoing: $61.9M GPR

20. UW Oshkosh Share UWS Budget Cut $3,035,250 UW Oshkosh Priorities2014-15 Annual Budget STEP $500,000 Equity-Based Compensation Adjustments $1,500,000 University Studies Program $500,000 Ongoing Funds $5,535,888 GPR Three Campus-Based Priorities

21. UW Oshkosh Share UWS Budget Cut $3,035,250 UW Oshkosh Priorities2014-15 Annual Budget 2013-2014 Funds Reallocated 2014-2015 4 percent reduction Yields $2,368,000 STEP $500,000 Equity-Based Compensation Adjustments $1,500,000 Ongoing Funds $5,535,888 GPR University Studies Program $500,000 “Basified” Priorities Three Campus-Based Priorities

22. Planning Context and AssumptionsThe Nature of the Challenge Fund Target: $5,535,888 GPR Less GPR from 4-percent reduction: $2,368,000 Less “basify” 2 priorities: $2,000,000 Less STEP (anticipated to be addressed): $500,000 Subtotal: $4,868,000 Anticipated to be Unaddressed: $667,888

23. Transition Update • Role of the Board of Regents • Role of Campus-based Search and Screen Committee • Two Other Searches – Green Bay and Stout • Timeline Issues – August 31 & Beyond

24. Chancellor Search & Screen Committee

25. Chancellor Selection Process System President and UWS Board of Regents Late September or Early October Selection Decision Early September Finalists Interviews January 1, 2015 or as negotiated Starting Date Assumption of Office

26. Managing Transitions – Wm. Bridges Model Three Phases Letting Go The Neutral Zone The New Beginning

27. Change and Transition Transition is a natural process of disorientation and reorientation that marks the turning points of the path of growth and renewal Wm. Bridges What we call the beginning is often the end. And to make an end is to make a beginning. The end is where we start from. T.S. Elliot “Little Gidding”

28. Change and Transition Endings • First phase of transition, a precondition to a new beginning • A period of conflicting values and emotions • A period of difficulty and pain for some; it is “Giving Things Up” and “Letting Go” (i.e. losses). • A period of excitement, hope and opportunity for others “Every beginning is a consequence. Every beginning ends something.” Paul Valery, French Poet

29. Change and Transition The Neutral Zone: • The period between endings and beginnings. • A temporary time of ambiguity, uncertainty, personal anxiety, disintegration and reintegration. • A search for a new identity and normalcy. • A precondition for a new beginning. “It is not so much that we’re afraid of change or so in love with the old way, but it’s that place in between that we fear.” Marilyn Ferguson American Feminist

30. Change and Transition New Beginnings: • The period of renewal • Acceptance of changed circumstances • Making a commitment to a genuine new beginning. • Getting on board. • Enjoying the process of personal and organizational transition. “The only joy in the world is to begin.” CasearePavese Italian Writer

31. Change and Transition The Overlap: Not everyone moves at the same rate Ending Ne Neutral Zone Beginning

32. Don’t be surprised by: Peoples’ responses to the three phases of transition Overreaction to the transition Grieving and resistance Flattery and opportunism What you discover Unrealistic and often conflicting expectations Change and Transition

33. Please complete Budget Forum feedback survey at: http://tinyurl.com/uwosh2014 Forum video and documents will be archived on Chancellor’s Web page soon Send your Feedback!

34. Questions? Thank you