fiu townhall meeting - may 18 2009

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The Florida International University Budget Town Hall Discussion

May 18, 2009

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AGENDA

THE FLORIDA INTERNATIONAL UNIVERSITY

  Update from Last Town Hall Meeting   Legislative Budget Update   Federal Stabilization Fund

  E&G Budget Reduction Proposed Plans   Proposed Plans Academic Affairs   Proposed Plans Non-Academic Affairs Operations

  Strategic Evolution of the University   Devolution   Compliance

  Next Steps: Timeline

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LEGISLATIVE BUDGET UPDATE

  Net 15% General Revenue reduction

  $29M recurring reduction

  Offset by $1.2M non recurring

  Lotto funds reduction of $2.5M - uncertainty about future collections

  PECO funding reduced by $31.2M over last year

  No funding for Courtelis Facility and Challenge Grants

Positive Outcomes

  Tuition increase of 8% for undergraduate

  Undergraduate differential tuition up to 7% additional

  College of Medicine 100% funded

  $10.9M additional recurring funds

  $.9M one time Federal Stabilization funds

  Additional ONE TIME funding from Federal Stabilization fund $14M

RESULT : CONTINUE WITH BUDGET REDUCTION PLANS

Unfavorable Impacts

  Excluded from 2% state employee salary cut

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RESTRICTIONS ON EDUCATION STABILIZATION FUNDS Federal Guidelines

* The list of prohibitions is not meant to be all-inclusive; uses and prohibitions are also subject to ARRA (American Recovery and Reinvestment Act) and other applicable requirements.

  Education and General expenditures   Modernization, renovation, or repair of instructional, research, or

student housing facilities

  Endowments   Maintenance of systems, equipment, or facilities   Maintenance costs, new construction, modernization of athletic

facilities or religious facilities   Restoring or supplementing a "rainy day" fund

Source: Guidance on the State Fiscal Stabilization Fund Program, U.S. Department of Education Washington, D.C. 20202, April 2009 (Page 26-30)

Possible Uses

Prohibitions *

Strategically directed to strengthen FIU going forward on non recurring critical investments

One Time Funds As Temporary Bridge

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EDUCATION STABILIZATION FUNDS

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AGENDA






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THREE YEAR ROLLING PLAN Operating Gap

Cumulative Amounts

NETGAP UNITS'CUTS 08‐09plan

ADDITIONAL CUTS

08‐09 ($15.0) $15.0

09‐10 ($34.6) $23.2 $11.4

10‐11 ($48.7) $35.7 $13.0

11‐12 ($53.3) $35.7 $17.6

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ACADEMIC AFFAIRS GROUP STRUCTURE

 Strategic to FIU

 Return on Investment

 Cost

 Faculty Investment

 PhD Production

Criteria Relative Importance / Definition

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7

5

3

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As defined in FIU strategic plan

Total of all funding divided by E&G support – tuition, research, gifts, and auxiliaries College level analysis using Delaware study benchmark

Faculty cost plus startup dollars expectation

Three year average PhDs awarded divided by Tenure-Tenure track faculty

ACADEMIC AFFAIRS BUDGET REDUCTION PLAN

Group 1 (overall score > 60) 3.3% 3.6% 5.0% Arts & Sciences (64), Business (61), Engineering & Computer Sciences (64), Public Health & Social Work (66)

Group 2 (overall score 40 – 59) 4.1% 4.6% 6.2% Hospitality (54), Nursing & Health Sciences (54), Education (49)

Group 3 (overall score < 39) 5.1% 5.6% 7.7% Architecture & the Arts (38), Journalism (37), Law (38)

Group 4 (overall score not applicable) 5.3% 5.9% 8.0% Library, Honors, Museums, Student Affairs and all other Provost areas

ADDITIONAL BUDGET REDUCTION PLAN

Cumulative Percentages

09-10 10-11 11-12

Reductions for planning purposes, subject to change

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Shift to Other Funding/Revenue Sources

Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M

ACADEMIC AFFAIRS CUT STRATEGIES

Lower Operational Costs

•  Private support for museum operations

•  Reallocate operating expenses to grants, overhead and fees

• Consolidate or reduce administrative functions – Eliminating Continuing and Professional Studies; 4 Vice Provost positions

• Consolidate six departments into three

• Reduce library purchases, reduce travel, service hours in enrollment services, convert print materials to library on line access, computer replacements, marketing in select programs, recruitment events, permanent and temporary staff

• Change instructional mix of summer courses, decreased use of adjuncts due to enrollment strategy, increase class size, eliminate faculty through vacancy, attrition

Saves $3.4M Impacts 66 Positions: Saves $9.3M

Attrition 25, Vacancy 19, Elimination 22

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Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M

Degree Program Closure

ACADEMIC AFFAIRS CUT STRATEGIES

Education Arts & Sciences Recreation &Sports Management ( B-62, M-19) Religious Studies (B-87,M-33) English Ed MAT (M-6) Mathematical Sciences (B-24) French Ed (B-0) French Ed MAT (M-2) Mathematics Ed MAT (M-4) Nursing & Health Sciences Science Ed MAT (M-2) Athletic Training (M-25) Social Studies Ed MAT (M-5) Occupational Therapy (B-0) Spanish Ed (B-0) Physical Therapy (M-0) Spanish Ed MAT (M-0) *Adult Education (M-9) *Adult Education & Human Resource Development (D-27) *Higher Education Administration (M-82,D-53) *International Education (M-19) *Urban Education (M-11)

Impacts 20 positions: Saves $1M Elimination 20

Degree level: B – Bachelor ; M – Master; D - Doctorate *Degrees will be subsumed under existing degree program

NON-ACADEMIC AFFAIRS OPERATIONS* BUDGET REDUCTION METHODOLOGY

Incremental Planned Cuts

Prioritization

  Planned cuts range from 1% to 7% by FY 2011-12

  Group 4 cuts could exceed 35%

  $3.7M in additional cuts

  58 Positions: 7 Attrition, 22 Vacant, 29 Eliminated or Reassigned

*Includes Finance & Administration, Advancement, Community Relations, General Counsel, Government Relations, BOT Office, President’s Office

Group 1: Compliance and University-Wide Strategic Projects Examples: Equal Opportunity Program, IT Security, BioChemical Receiving

Group 2: Essential Services where service will be reduced or contractual commitments renegotiated Examples: Media Technology Services, Disaster Recovery, PeopleSoft

Group 3: Areas where efficiencies gained from a change in current business processes or in customer service delivery method Examples: Purchasing Services, Student Payment Services (Online)

Group 4: Less Essential Services where current levels cannot be afforded Example: Groundskeeping

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AGENDA






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HIDDEN BUDGET CUTS

*2001 Statutes :229.002(1)(f), 229.003(5)(a), 229.008 (1-9). 2002 Statutes: 1011.40(2), 1011.4105 (1-5)

  Process   2001 Statute* abolishes Board of Regents and

authorizes Board of Trustees   Transitioned information systems and treasury

operations

  Incremental Functions   Board of Trustee Office and Support   Information Systems – Financials and Payroll   Treasury Operations

  Unfunded Costs (estimated)

  Recurring costs of $5.7M annually   Incremental 25 FTE

  Permeates the culture of the institution through evolving research compliance, federal regulatory requirements and SACs accreditation, NCAA   Research

HIPAA, grant administration, controlled substances, human subjects

  Student/Employee International, confidential information, bargaining, IT security, emergency management, athletics

  SACS Credentialing, assessments, QEP

 Unfunded Costs (estimated)   Recurring costs of $12.5M annually   Incremental 119 FTE

Flexibility gained from devolution and strategic research mission requires annual critical investments of $18.2M and 144 FTE

Devolution Compliance

“Be careful what you ask – you may just get it”

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PERSONNEL GROWTH

  Analysis of personnel growth from 2002 to 2008

  E&G Faculty increased 85 positions

  E&G Administrative personnel grew 88 positions

  Non E&G positions grew by 105, funded from self sustaining operations (C&G, Auxiliary, and Student Fees)

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TIMELINE

May 26 Faculty Senate Meeting Recommendations on program closures

June 1 Board of Trustees Budget Workshop

June 8 Governor’s Veto period expires (approximately)*

June 12 Board of Trustees Meeting

Please send all comments, questions and ideas to President Maidique at [email protected]

* Governor must sign or veto legislation within 15 days of receiving the bill. As of May 13, 2008 the governor had not received the appropriations bill.

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The Florida International University Budget Town Hall Discussion

May 18, 2009