UW-Platteville Convocation

1. UW-PlattevilleConvocation Robert Cramer Vice Chancellor August 2012 http://www.uwplatt.edu/budget/presentations.html

2. Financial Results 2011-12

3. Budget Definitions • 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

4. Preliminary Ending Financial Position All Funds Summary (Cash Basis) • Beginning Cash $ 23,128,452 • Total Revenue $127,981,774 • Total Expenses $126,913,276 • Net Income $ 1,068,498 • Excluding direct student loan amounts • Closing Balance $ 24,196,950

5. Select Fund Balances • Fund 102 $4,426,218 (General operations, tuition revenue, base of $47 million) • Fund 123 $4,001,400 (Debt service, $4 M base) • Fund 128 $4,096,650 (Dining, housing, parking, base of $25 million) • Fund 131 $8,474,838 (DLC, School of Ed Cost Recovery, TSI, base of $15 million) • Fund 136 $1,693,089 (Similar to 128, HTCP, camps & conferences, base of $3.7 million)

6. New Budget Tool – Carry Overs Carry Over Balances by College/Division ***Excludes accounts that automatically carryover (i.e. Fund 128, 136, some 131)

7. Financial Health Measures • Financial Metrics • Expense Ratio – the annual expenses divided by annual revenue – less than one means that all of the current year’s income was not spent • Composite Financial Index – four financial ratios, weighted and combined into one, with values between -4 and 10 that measure the overall financial health of an institution • Primary Reserve Ratio – expendable net assets divided by annual expenses – measures how long the institution could rely on reserves to meet operational costs

8. Expense Ratio – Spending / Revenue Expense Ratio is an indication of the University’s ability to cover the expenses endured by cash inflow. (less than 1.0 is desirable)

9. Composite Financial Index Combines 4 weighted ratios to provide a snapshot of overall financial health of the University • Primary Reserve Ratio: Are resources sufficient and flexible enough to support the mission? • Net Operating Revenue Ratio: Do operating results indicate the institution is living with available resources? • Return on Net Assets Ratio: Does asset performance and management support the strategic direction? • Viability Ratio: Are resources, including debt, managed strategically to advance the mission?

10. CFI Trend and Components

11. Primary Reserve Ratio Computed by comparing expendable net assets, including those invested in plant, to total expenses. Results represent the fraction of a year, showing how long the University could function without income.

12. Cost Per Student FTE Total Cost per Student FTE Definition: Fund 102 & 131 (less Distance Learning) divided by number of full-time equivalent students

13. State Funds / Resident FTE Annual Average: $5,224 Definition: All GPR Funds Expenses / Resident FTE

14. 2001-02 Budget Final 2001-2002 UW-Platteville Budget $73.6 Million State funding of 40%

15. 2011-12 Budget - $160.4 million All Funds State Funding of 18%

16. 2012-13 Budget Final 2012-2013 UW-Platteville Budget $172.6 Million (all funds) State Funding of 17% Final 2012-2013 UW-Platteville Budget $126.1 Million (excluding federal aid) State Funding of 22%

17. Enrollment and Finances • Total enrollment is approaching 7,700 students this year (1,650 new freshmen) • TSI enrollment approaching 1,400 students with revenues of $13.5 million (510 new students) • Registrations for online programs are now over 2,900 • UW-Platteville is now a tuition-driven institution - $53 million this year (almost twice the amount provided by the state)

18. Looking Forward

19. Key Challenges • Regulations and State / Federal Oversight Continue • Slow Economic Growth Continues Pressure on State Funding and Tuition • Disruptions From New Education Models • Demographic Changes • Learner Expectations

20. Regulatory Environment • Flexibility provided in 2011-13 biennial budget turns out to be modest and slow to implement • Modest recommendations from the statewide UW System Restructuring Task Force • Federal regulations will expand following Penn State and the focus on student debt and tuition • Universities create own regulatory environment internally as pressures mount

21. Projected US and Global Economic Growth Rates Source: The Conference Board Global Economic Outlook 2012

22. New Educational Models • Disruptions continue and new educational models will be tried • UDACITY, Coursera, and other MOOCS (massive open online courses) • UW System Flexible Degree Program • “Flipping” the Classroom • Interesting Description of the Future - http://epic2020.org/

23. Continuing Demographic Changes • The number of high school graduates will continue to change by region • Nontraditional students will be a larger percentage of students in higher education • Hispanic students represent the fastest growing group of high school graduates

24. Projected High School Graduates by Region Source: The College of 2020: Students Chronicle Research Services

25. Growing Number of Nontraditional Students Source: The College of 2020: Students Chronicle Research Services

26. Changing Ethnic Make-up of High School Graduates Source: The College of 2020: Students Chronicle Research Services

27. Learner Expectations • Bring Your Own Device World (BYOD) • Anytime Anywhere Access to Materials • eBooks coming to a high school near you • Khan Academy has content for K-12 students • Quick feedback via learning management systems such as D2L

28. Opportunities to Control Our Own Destiny • Acknowledge the brutal reality of the situation and move forward: • Strategic Planning • Expanding Our Sources of Revenue • Controlling Existing Costs

29. Strategic Planning • Draft plan presented in April and May • Steering Committee is updating drafts based on feedback • Additional sessions in August and September including offer to meet with every department • Campus forums in September and October • Finalize plan in November • Details at http://www.uwplatt.edu/planning/

30. Strategic Planning (continued) • Proposing a new mission, vision and four strategic priorities • Ensure plan leads to action through a steering committee that connects planning with budgets • Initiate a review of how we need to budget so that we allocate funds based on the plan and not past practices

31. DRAFT Strategic Priorities • Provide a Distinctive Education • Foster a Community of Achievement and Respect • Control Our Own Destiny • Enrich the Tri-State Region

32. Strategic Planning Steering Committee • Annie Kinwa-Muzinga, College of BILSA • Mittie Nimocks, Provost • Kassie Popp, Student Senate • David Schuler, College of LAE • Yan Shi, College of EMS • Becky Troy, Classified Staff • Angela Udelhofen, Assistant Chancellor for Admissions • Joanne Wilson, Interim Assistant Chancellor for Student Affairs • Timothy Zauche, College of EMS • Robert Cramer, Vice Chancellor for Administrative Services – Executive Sponsor • Donna Anderson, Academic Staff • Wendy Brooke, College of BILSA • Dennis Cooley, Assistant Chancellor for University Development • Dawn Drake, Director of Distance Education • Melissa Gormley, College of LAE

33. Expanding Our Sources of Revenue • Targeted growth through enrollment management • Identifying new opportunities and markets • Leveraging our strengths with new partners

34. Controlling Existing Costs • Huron review of information technology and classroom management • Energy efficiency audits • Partnering with the Real Estate Foundation • Business Process Improvements to free up time

35. Conclusion • UW-Platteville cannot stand still