FY13 Student Tuition Consultation

1. FY13 Student Tuition Consultation SFMC – March 22, 2012

2. Up Front Summary • State and University have just finished addressing the largest budget deficits in history • State continues trend of reduced investment in Higher Education • Tuition Increase of 3% for FY13

3. WSU Total Budget Composition – FY12 • General Fund $81M, 65% • (Tuition $56M, State Appropriation $25M) • Residence Halls $20M, 15% • Laptop Program $7M, 6% • Auxiliary Enterprises $5.5M, 5% • Student Fees $4.5M, 4% • Student Union $2M, 2% • Miscellaneous $3M, 2% • Grants and Contracts $2M, 2% • TOTAL $125 Million Innovation Fund = $400,000 or about ½ of 1% of the Total University Budget

4. General Fund Budget by Nature – FY12 • Employee Salaries 60% • Fringe Benefits 18% • Student Employment 2% • Equipment 2% • Operating (Supplies & Expenses) 14% • Repair and Replacement 1% • Fuel and Utilities 2% • Debt Service 1% 80% of the General Fund Budget is Invested in People

6. WSU Budget Principles(Adopted December 2008) • Winona State University will be guided by its mission statement and look at the good of the whole.  Budget decisions will be based on a consistent set of data and communication will be transparent and inclusive.  Winona State University will: 1.      Provide classes that allow students to complete their educational programs in a timely manner 2.      Maintain its commitment to our faculty and staff As we strive to accomplish the above during these hard times, we will:     • Maintain a physical environment that meets the health and safety needs of the University community • Provide services and activities that support student success • Remain committed to high quality affordable education • Work to increase the efficiency and effectiveness of our operations • Create and enhance revenue stream • Not exempt any unit of the university from making needed sacrifices

7. Budget Strategies Implemented in FY10-11-12 • Retirement Incentives • Reduce Administration • Reduce faculty/staff positions • 7% Operating Reduction • Educational Lean and Restructuring • Maintain Enrollment • Tuition Increase • Revenue Fund Cost Shifts • Review Programmatic Scans • Summer Session Restructure • Reduce Faculty Reassigned Time • Energy Savings • New Graduate and OCED Programming • Non Traditional Funding Sources

8. FY2012/13 Budget Planning Factors State of Minnesota • February 2012 state budget forecast • FY12-13 surplus projected at $323 million • Surplus will be used to repay the K-12 funding shift and build reserves at the State level • Good News – No further unallotment or appropriation reduction for FY12 or FY13

9. FY2013 Budget Planning Factors - WSU • FY13 Budget Scenario Calculator on Fiscal Affairs / Budget ToolKit page http://www.winona.edu/adminaffairs/budget_101.asp • Increases in employee wages and health insurance continue to be the largest cost drivers at the University • Enrollment growth from FY11 to FY12 has helped the University budget

10. Tuition Costs at Selected Institutions – FY12

11. History – Tuition and Budget Reductions • Tuition Increases • FY03 – 12% • FY04 – 15% • FY05 – 15% • FY06 – 7% • FY07 – 9% • FY08 – 4% • FY09 – 5% • FY10 – 5% (with assistance from Federal stimulus of 2%) • FY11 – 5% (with assistance from Federal stimulus of 2%) • FY12 – 5% • Budget Reductions • FY02 - $1.0M • FY04 - $1.2M • FY10 - $1.8M • FY12 - $2.5M

12. FY2013 WSU Tuition Proposal • Tuition increase of 3% • Annual increase to a full time, MN resident student will be $200.00

13. Resources • Most current information on budget at • President’s page: • www.winona.edu/president/index.asp • Fiscal Affairs page: • www.winona.edu/adminaffairs/budget_101 • MnSCU Finance page: • www.finance.mnscu.edu

14. Questions