FY 2010 Interim Plan

WVU Board of GovernorsJune 5, 2009

FY2010 Interim Plan Timeline

June 5, 2009 – Adoption of an FY 2010 Interim Forecast

November 6, 2009 – Adoption of the FY 2010 Forecast

2

Budget Uncertainty

State Appropriations Revenues• Budget Reduction – One-time reduction $6 million• Use of Federal Stimulus Funding – pending

Tuition and Fees Revenues – should be known by September

• Impact of Current Economic Conditions on Enrollment

• First –Time Freshman• Transfer Students• Returning Students • Total Students – 28,500

Endowment Spend Revenues - evaluation of impact on colleges should be known by July

3

4

FY 2009 Actual FY2010 Projected FY2011 Projected FY2012 Projected$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000$152,011,029

$144,410,478

State Appropriations Stimulus Funding

Anticipated Changes in State AppropriationsD

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First-Time Freshman Enrollment Projections Based on Admits

2,175

2,611

4,786

5

11/17

11/30

12/7

12/14

1/4 1/11

1/18

1/25

2/1 2/8 2/15

2/22

3/1 3/8 3/15

3/22

3/29

4/5 4/12

4/19

4/26

5/3 5/11

5/18

5/25

6/11,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

Total

Residents

Non-Residents

West Virginia University - Main Campus2009 FTF Projected Enrollment as of June 1, 2009

Based on Previous Year YTD Admits and Confirmations

Freshman Enrollment Projections Based on Confirmations1

4,557

2,431

2,125

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1Confirmations include academic deposits, housing deposits and or registration for orientation. If a prospective studentHas taken any of these actions they are reflected a confirmed for purposes of this analysis.

11/17

11/30

12/7

12/14

1/4 1/11

1/18

1/25

2/1 2/8 2/15

2/22

3/1 3/8 3/15

3/22

3/29

4/5 4/12

4/19

4/26

5/3 5/11

5/18

5/25

6/11,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

West Virginia University - Main Campus2009 FTF Projected Enrollment as of June 1, 2009

Based on Previous Year YTD Admits and Confirmations

Total

Non-Resident

Resident

Freshman Enrollment Projections Based on Applications and Confirmations1

7

4,557

4,785

11/17

11/30

12/7

12/14

1/4 1/11

1/18

1/25

2/1 2/8 2/15

2/22

3/1 3/8 3/15

3/22

3/29

4/5 4/12

4/19

4/26

5/3 5/11

5/18

5/25

6/11,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

Total

Residents

Non-Residents

West Virginia University - Main Campus2009 FTF Projected Enrollment as of June 1, 2009

Based on Previous Year YTD Admits and Confirmations

1Confirmations include academic deposits, housing deposits and or registration for orientation. If a prospective studentHas taken any of these actions they are reflected a confirmed for purposes of this analysis.

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2010 Interim Plan - Planning Framework

• Maintain a balanced budget excluding unrealized investment losses and GASB 45 Liabilities.

• Encourage normal mission-driven operations to maintain academic quality and limit burdensome spending restrictions, e.g. hiring and travel freezes, additional approvals on capital items.

• Define strategic priorities and invest in those priorities during this uncertain financial environment; e.g. research enterprise, salary increases, new faculty and staff positions, and new programs.

• Focus on identifying new sources of revenue and operating efficiencies.

• Recognize that tuition revenue is paramount to the University’s long-term success. Therefore, we must be sensitive to changing market conditions.

• Limit the impact of permanent budget cuts until there is greater certainty about the level of state support and other revenue sources.

• Effectively manage cash and other resources needed to maintain financial stability and to deal with unforeseen events.

WVU Financial PlanFY2006 – FY2010

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WVU Financial Plan

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$476,626$519,263

$560,353 $565,635$620,302 $599,170

Operating Revenues

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WVU Financial Plan

Operating Revenue Highlights

Other Operating Revenue

Auxiliary Enterprises Revenue

Grants and Contracts

Tuition and Fees

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000

$33,338

$102,969

$174,318

$288,545

$31,602

$96,208

$232,835

$259,657

FY2010 Plan FY2010 Interim Forecast

Federal

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StateNongovernmental

Federal StateNongovernmental

WVU Financial Plan

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WVU Financial Plan

Tuition Increase History

FY2006 FY2007 FY2008 FY2009 FY20100%

1%

2%

3%

4%

5%

6%

7%

8%

9%

5.50% 5.50% 5.50% 5.50% 5.50%

6.75%

7.50%

5.49%

8.00%

4.00%

FY2010 Plan Actual

WVU Financial Plan

Operating Expenses

FY2006 Actual FY2007 Actual FY2008 Actual FY2009 Forecast (Budget)

FY2010 Plan FY2010 Interim Forecast

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$675,516$718,913

$784,932 $794,483 $821,247$855,306

Dol

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WVU Financial Plan

Operating Expenses Highlights

All Other Operating Expenses

Supplies and Other Services

Benefits

Salaries and Wages

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000

$107,157

$176,999

$166,809

$404,341

$107,691

$194,077

$143,442

$376,037

FY 2010 Plan FY2010 Interim Forecast

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GASB 45

WVU Financial Plan

Salary Increase History

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FY2006 FY2007 FY2008 FY2009 FY20100%

1%

2%

3%

4%

5%

6%

7%

8%

3.00% 3.00% 3.00% 3.00% 3.00%3.50%

4.00%

5.00%

7.37%

0.00%

FY2010 Plan Actual

WVU Financial Plan

Non-Operating Revenues (Expenses)

FY2006 Actual FY2007 Actual FY2008 Actual FY2009 Forecast (Budget)

FY2010 Plan FY2010 Interim Forecast

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$201,480$213,802

$230,505$215,867

$203,769 $205,420

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WVU Financial Plan

Non-Operating Revenues (Expenses) Highlights

State Appropriations

All Other Non-Operating Revenues (Expenses)

($50,000) $0 $50,000 $100,000 $150,000 $200,000 $250,000

($583)

$206,003

($5,110)

$208,879

FY2010 Plan FY2010 Interim Forecast

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WVU Financial Plan

Operating Revenues Operating Expenses Non-Operating Revenues

Income Before Other Activity

Adjusted for GASB 45

-$200,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$599,170

$855,306

$205,420

($50,716)($813)

FY2010 Interim Forecast

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WVU Financial Plan

FY2006 Actual FY2007 Actual FY2008 Actual FY2009 Forecast (Budget)

FY2010 Plan FY2010 Interim Forecast

($60,000)

($50,000)

($40,000)

($30,000)

($20,000)

($10,000)

$0

$10,000

$20,000

$6,269

$14,152

$5,926

($12,981)

$2,824

($50,716)

($439) ($813)

Unadjusted Adjusted to Reflect Impact of GASB 45

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Income Before Other Activity

WVU Financial Plan

($60,000)

($40,000)

($20,000)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$43,394

$97,857 $89,958

$10,297 $3,134

(50,716)Dol

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Increase (Decrease) in Net Assets

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WVU Financial Plan

FY2006 Actu

al

FY2007 Actu

al

FY2008 Actu

al

FY2009 Fo

recast

(Budget)

FY2010 Pl

an

FY2010 In

terim

Forec

ast($60,000)($40,000)($20,000)

$0 $20,000 $40,000 $60,000 $80,000

$100,000 $120,000

$43,394

$97,857 $89,958

$10,297 $3,134

($42,669)

Dol

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Increase (Decrease) in Net Assets

21