Budget Update
Successes, Challengesand Decisions Ahead
David Eisler, presidentSally DePew, director, Budgetary Planning & Analysis
Outline for Today
• Ferris budget information
– Look back at 2019 fiscal results
– Information on 2020 budget
• Revenue and enrollment
• Looking forward to 2021
• Strategic initiatives
2018-2019 University Fiscal ResultsGeneral Fund Expenditures - $210 Million
Instruction and Academic Support
$118.957%
Student Services
$17.58%
Plant$14.0
7%
Institutional Support
$22.911%
Research/Public Service
$0.40%
Transfers$11.25%
Financial Aid$25.512%
Amounts in Millions
45%
12%
6% 7%
11%
0%
5%
12%
2%
36%
13%
5%
8%10%
7% 7%
14%
1%
Instruction AcademicSupport
Student Services PlantOperations
InstsitutionalSupport
Research/PublicService
Transfers Financial Aid Auxiliary
FSU AVG15
Michigan Public University Spending PatternsFY2019 – Percent of General Fund Expenses
by Function of Expense
2018-2019 University Fiscal ResultsUnrestricted Net Position Comparison
(Amounts in Millions)
$24.1
$8.2
$48.9
$8.6
$10.4
$1.3
$0.2
-$124.3
$19.4
$9.9
$57.2
$7.9
$10.1
$3.1
$0.2
-$115.4
Maintenance Reserve
Plant Projects in Planning
Development
All Other
Divisional Carryover/Encum.
Auxiliary Operations
Student Loan Funds
Net Pension Obligation
FY 2019 - ($22.6M) FY 2018 - ($7.5M)
2019-20 General Fund Budget
RevenuesStateTuitionOther
Total Revenues
ExpensesCompensationOperatingFinancial Aid
Total Expenses
$56M$147M
$3M$206M
$146M$35M$25M
$206M
State27%
Tuition71%
Other2%
Revenue
Compensation71%
Operations17%
Financial Aid 12%
Expense
2019-2020 Budget includes $8 million in reductions
• Higher education budget provides increase of .5%
• Includes full funding of Indian Tuition Waiver
• Overall University operations state increase of 1.0%
• Results in a FSU increase of 2.0%
• Includes full funding of the Tuition Incentive Program
State Funding
General Fund Revenue(Amount in Millions)
$209.5
$213.4$211.1 $210.9 $210.7
$206.5
FY15 FY16 FY17 FY18 FY19 FY20 Budget
FY 2019-20 General Fund Budget Reductions
Description Positions Amount
AdministrativeClericalFacultyMaintenancePart-time WageOperating SupportStudent Assistance
Totals CompletedAssigned
Total
15.0 FTE3.0 FTE
11.0 FTE3.0 FTE
32.0 FTE
$2.4M$ .2M$1.3M$ .2M$ .3M$ .5M$ .5M
$5.4M$2.6M
$8.0M
Four-Year Summary General Fund Budget Reductions
Description Positions Amount
FY 2017FY 2018FY 2019FY 2020
4-Year Totals
24.0 FTE9.5 FTE
55.0 FTE32.0 FTE
120.5 FTE
$5.2M$3.0M$7.3M$8.0M
$23.5M
Successes
Top Performing Schools – NY TimesLargest Schools – 2,000+ Entering Students
Source: The College Dropout Crisis – David Leonhardt & Sahil Chinoy - May 23, 2019
51%
47%
52%
60%
55%
2009 2010 2011 2012 2013
Entering Cohort
Six-Year Graduation RateFull-Time FTIAC Bachelor’s Degree Seeking Students
Time to Bachelor’s Degree(FTIACS) Including Percent of Total
385
246
82
34
422
285
79
39
400
323
120
25
425
326
110
37
461
287
95
22
4 Years or Less 5 Years 6 Years 7 or More Years
FY15 FY16 FY17 FY18 FY19
51.5% 51.2% 46.1% 47.3% 53.3% 32.9% 34.5% 37.2% 36.3% 33.2% 11.0% 9.6% 13.8% 12.2% 11.0% 4.6% 4.7% 2.9% 4.1% 2.5%
Ferris State UniversityChange in Net Price
2009 to 2018
<$30k-29.4%
$30k-$48k-26.9%
$48k-$75k-17.6%
Average-7.1%
$75k-110k-7.5%
>$110k3.7%
MPU Average12.4%
Michigan Public UniversitiesAverage Change in Net Price
2009 to 2018
<$30k6.3%
$30k-$48k0.2%
$48k-$75k4.2%
Composite12.4%
$75k-110k15.9%
>$110k26.6%
-29.4%-26.9%
-17.6%
-7.1% -7.5%
3.70%
MPU Avg FSU
MPU Cost of AttendanceResident, On-Campus Student
Change 2008-09 to 2018-19
15.7%
26.6%28.0%
32.9% 33.3% 33.3%35.1%
36.3% 36.5% 36.6%
39.4% 39.5%
43.6%44.8%
46.5%
52.6%
FSU UMF CMU WMU UMA LSSU GVSU Average UMD MTU NMU OAK EMU MSU SVSU WSU
Source: IPEDS College Navigator
Average Student Debt Bachelor’s Degree Graduates with Debt
$35,720 $35,660 $35,710 $35,606$36,530
$29,450 $30,045 $30,806 $31,289 $32,158
2013-14 2014-15 2015-16 2016-17 2017-18
FSU MI 4-Yr and Above
85,000
90,000
95,000
100,000
105,000
110,000
115,000
120,000
125,000
2,800,000
2,900,000
3,000,000
3,100,000
3,200,000
3,300,000
3,400,000
3,500,000
3,600,000
20
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20
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20
02
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32
Mic
hig
an
Un
ited
Sta
tes
United States Michigan
Projected Number ofU.S. and Michigan High School Graduates
Source: WICHE – Knocking at the College Door
Percent of Michigan Residents Who Are Children vs. Senior Citizens
1960 and 2017
40%
22%
8%
17%
1960
2017
Under age 20 Over age 64
Michigan Community College Enrollment
346,890
303,761 282,533
273,232
250,610
277,589
276,195
267,047
259,979
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-180.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
EnrollmentUnemployment
Decline of 86,911 students or 25%Source: MI School Data
FSU Fall Headcount EnrollmentUniversity-Wide
14,71514,187
13,79813,250
12,472
Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019
-15.2% decline University-wide over 5 years
Fall Headcount EnrollmentBR International, Regional, Kendall College of Art and Design
486
349256
199149
2,183
1,977
1,8541,742
1,561
1,2781,173
1,029972
836
Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019
69.3% decline 28.5% decline 34.6% decline
FTIAC Students – Big Rapids
1,813 1,7661,672 1,696
1,766 1,810
Fall 2014 Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019
Fall Headcount EnrollmentBig Rapids Traditional Students
10,77410,406 10,141 9,823
9,418
Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019
Change – 12.6%
FSU Student Credit Hour Enrollment
357,831 357,471343,289
331,856317,279
FY15 FY16 FY17 FY18 FY19
University-Wide
Decline from 2014-15 to 2018-19 is 40,552 SCH or 11.3%. One-year decline of 14,577 SCH or 4.4%
Michigan Public University Fall Headcount Enrollment
Percent Change from 2014 to 2019
-21.3%-20.0%
-17.9%-15.9%
-14.7%-13.5%
-12.0%
-9.7%
-7.3%
-4.2%-2.7% -2.0%
-0.8%
1.4%
10.7%
CMU EMU LSS SVS FSU UMF NMU WMU OAK GVSU WSU UMD MTU MSU UMA
2020-2021 Budget
• Until enrollment is stabilized additional budget reductions will be needed to balance declines in tuition collected.
• Budget planning for next year and beyond focuses on-
How are changes in enrollment tied to budgets?
Where can we be more efficient?
Where can we eliminate duplication and use our resources more effectively?
State Funding Challenges
• Continued push to remove higher education from the School Aid Fund
• Interest in new Performance Funding metrics
• “Free” community college
• Lack of support for higher education
• Competition for road funding
• Budgetary impasse in Lansing
Ferris Forward
AcademicsEnhancing ResourcesInstitutional Effectiveness
Pride and CommunityStudent Success14 Key Strategic Targets
Strategic Objectives
• Increase student enrollment to 14,000 by 2024.
• Increase online student credit hours by 5 percent annually
• Three new market-driven programs are added to the curriculum each year.
• Increase the overall first-year retention rate to 75 percent.
• Increase international student enrollment to 300.
• Increase minority enrollment by 3 percent annually.
Ferris Forward
Strategic Enrollment Decisions
• Transfer portal
• Increased senior search
• New sophomore and junior search
• Parent search
• New web application
• Marketing and branding campaign
Thank You
Ferris’ unique mission and strategic focus put us in a favorable place as we adjust to changing student enrollment.
Our people and programs can and will make the difference in this ultra-competitive higher education environment.
Thank you for the good work you do everyday supporting our students and advancing our University.
David L. Eisler, president