board retreat...revenue / expenditure components 3 net tuition and fees 43% state operating...
TRANSCRIPT
Board Retreat
September 29, 2016
Key Issues
Net
Tui
tion
& F
ees
Sala
ry &
Ben
efits
Capi
tal
Stat
e Ap
prop
riatio
ns
Financial Resources – Debt, Liquidity, Endowment
2
Revenue / Expenditure Components
3
Net tuition and fees
43%
State operating appropriations
12%
Auxiliary enterprises
13%
Grants and contracts
18%
Gifts 3%
Endowment distributions & other investment income
7%
Other revenue
4%
Supplies, materials and
purchased services
23%Travel
3%
Depreciation & amortization
8%
Debt service 2%
Total Compensation
64%
Financial Resources and Obligations ($000s)
4Assets Liabilities
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Operatinginvestments
Accountsreceivable,
prepaidexpenses,
inventory &restricteddeposits
Endowmentfunds
Funds held intrust by others
Property, plant& equipment
Accountspayable &accruedliability
Deferredrevenues &
other liabilities
Long termliabilities &obligations
Long term debt
Post employmentbenefit obligations -State of DE
Post employmentbenefit obligations
Operating funds in endowment
Deferred maintenance
Tuition & Fees and State Appropriations
Undergraduate Tuition and Fee Growth
6
-
5,000
10,000
15,000
20,000
25,000
30,000
1%
3%
5%
7%
9%
11%
13%
2009 2010 2011 2012 2013 2014 2015 2016 2017
% Increase in resident tuition & fees % Increase in nonresident tuition & fees State operating appropriation $ per FT resident
State Operating Appropriations ($000s)
129,683
126,150
112,427 115,072117,044 117,005
118,749
131,381136,111
140,058142,299
144,575 145,443 145,443
129,951
131,966
135,994
137,309
147,224
151,540153,645 153,324
110,000
115,000
120,000
125,000
130,000
135,000
140,000
145,000
150,000
155,000
160,000
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Actual State Appropriation
FY 2009 State Appropriation grown by CPI
State Appropriation calculated using FY 2009 Resident Student Unit Rate and Actual Headcount7
State Operating Appropriations per Student 2009-2016
8Source: Moody’s Research and Ratings
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2009 2010 2011 2012 2013 2014 2015 2016
State Appropriations per Total FTE Enrollment State Appropriation per Undergraduate FTE Enrollment
Benefits Cost
Benefits Cost
10
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2009 2010 2011 2012 2013 2014 2015 2016
Benefits Post employment benefits % of salaries
11.8% Growth
Fringe Benefit Components ($000s)
11
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Group Health Retirement Post EmploymentAccruals
FICA Tuition Remission Other
2016 2015
19.1% Growth
State of Delaware Task Force Findings
12
Explore methods to incentivize healthy
behaviors
Benchmark health benefits
package
Create a plan structure to
drive members to cost effective care based on
their needs
Implement plan changes
to control cost of pharmaceuticals
and use of generics
Investigate simplifying plan
options
Implement tiered laboratory
pricing
Conduct audits of the health
plans and PharmacyBenefits Manager
Capital
14
Capital Intensive Infrastructure
Harker Laboratory - $132.0M
South Academy Street Residence Halls - $58.7M
Carpenter Sports Building - $25.0M
Caesar Rodney Dining and Residence Hall - $70.0M
134
38
262
182 183
432
992
889
1,181
319
948
1,295
669
0
200
400
600
800
1,000
1,200
1,400
Pre 1900 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
(000s)Major Building Portfolio Gross Square Footage (GSF)
15
36% of UD GSF
History of State Capital Appropriations
16
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Appropriation Requested Appropriation Approved 20 YR Avg (Approved)
Potential Levers
17
Tuition Rates
Student Enrollment
Philanthropy
Entrepreneurial Revenue
Compensation
Benefit Costs
Administrative and Academic Efficiencies
Space Utilization
Endowment Payout
Debt, Liquidity and Financing Activities