overview of university budget and planning process
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TRANSCRIPT
December 1, 2008 Office of Budget, Planning and Analysis
December 1, 2008 Office of Budget, Planning and Analysis 2
• State of Michigan Higher Education Appropriations
• Wayne State University Budget Highlights
• Economic Impacts to Enrollment
• Wayne State University Budget Planning Process
December 1, 2008 Office of Budget, Planning and Analysis 3
December 1, 2008 Office of Budget, Planning and Analysis
4National Average: 63% Michigan: 16%
October 7, 2008 Office of Budget, Planning and Analysis5
Annual Change in Resources FY 2001 to FY Annual Change in Resources FY 2001 to FY 2007: 2007:
(State Appropriations & Tuition/FYES)(State Appropriations & Tuition/FYES)
December 1, 2008 Office of Budget, Planning and Analysis 6
FY 2001FY 2001($9.740 billion)($9.740 billion)
FY 2009FY 2009($9.701 billion)($9.701 billion)
December 1, 2008 Office of Budget, Planning and Analysis
Source: Citizens Research Council of Michigan, Michigan’s Fiscal Future, May 2008
7
State Appropriations
$448.565.8%
State Appropriations
$1,437.233.0%
Other$21.13.1%
Tuition and Fees$211.631.1%
Other$305.97.0%
Tuition and Fees$2,606.859.9%
In FY 1977 State appropriations provided two-thirds of total university operating support
In FY 2007 State appropriations provided one-third of the total university operating support
State appropriations to public universities per FYES peaked in FY 2001 at $6,853; in FY 2007, State appropriations per FES were $5,673
December 1, 2008 Office of Budget, Planning and Analysis 8
Average change for MPU institutions = 2.0%Average tuition rate increase = 7.2%
December 1, 2008 Office of Budget, Planning and Analysis 9
Dol
lars
in M
illio
ns Higher Education Spending Pressures
Constant Share of Revenues
Source: Citizens Research Council of Michigan, Michigan’s Fiscal Future, May 2008
Michigan’s General Funds are projected to rise 1.4 percent per year
Higher education spending pressures are projected to grow 4.7 percent per year
December 1, 2008 Office of Budget, Planning and Analysis 10
December 1, 2008 Office of Budget, Planning and Analysis
General Fund Budget: $535 M Sources: Tuition, fees, ICR and State Uses: Faculty / staff compensation,
utilities, insurance Designated Fund Budget: $91 M
Sources: Gifts and Non-Governmental contracts
Uses: Funding for specific purposes that have been designated to schools, colleges or divisions
Auxiliary Fund Budget: $37 M Sources: Housing, Parking, University
Press, Bookstore, Student Center, etc. Uses: Salaries, operations and debt service
of auxiliary entities Restricted Budget: $157 M
Sources: Federal grants, contracts, and gift Uses: Grants—support the university’s
research activities Uses: Gifts—dedicated components of the
educational budget such as scholarships, endowed chairs, and capital improvements
Pre-Allocated Available forAllocation
11
December 1, 2008 Office of Budget, Planning and Analysis
Primary Mission 58% Instruction/Public Service: $341M
Expenditures associated with faculty compensation
Research: $132 MExpenditures associated with sponsored award
activity Support Programs 31%
Scholarships: $67 MExpenditures associated with financial aid for
the University Institutional Support: $57 M
Expenditures associated with administrative operations
Academic Support: $72MExpenditures associated with supporting
academic mission such as Libraries Student Services: $34 M
Plant Operations 7% Operations and Maintenance: $62 M
Transfers 4% Debt Service/ Plant Improvement: $33 M Auxiliary Enterprises $22M 3%
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December 1, 2008 Office of Budget, Planning and Analysis
Revenues Expenditures
December 1, 2008 Office of Budget, Planning and Analysis
FY 2001 - $381 M FY 2009 - $535 M
Since FY 2001, Wayne State University has had to become more reliant on tuition and fees and less reliant on State Appropriations.
December 1, 2008 Office of Budget, Planning and Analysis
Funding Gap
$79.4 MState appropriations if increased by CPI each year.
Actual State Appropriations
December 1, 2008 Office of Budget, Planning and Analysis
Institution Carnegie Classification FY 09 Tuition RankVariance
from WSU% Variance from WSU
UM-AA Research Univ. - Very High $11,037 1 $4,481 68.3% MTU Research Univ. - High $8,648 2 $2,092 31.9% MSU Research Univ. - Very High $8,554 3 $1,998 30.5% GVSU Master's $8,196 4 $1,640 25.0% UM-D Master's $7,937 5 $1,381 21.1% WMU Research Univ. - High $7,928 6 $1,372 20.9% LSSU Baccalaureate $7,894 7 $1,338 20.4% CMU Doctoral / Research Univ. $7,776 8 $1,220 18.6% UM –F Master's $7,376 9 $820 12.5% FSU Master's $7,200 10 $644 9.8% NMU Master's $7,078 11 $522 8.0% WSU Research Univ. - Very High $6,556 12 $0 0.0% EMU Master's $6,470 14 ($86) -1.3% OU Doctoral/Research Univ. $6,444 13 ($112) -1.7% SVSU Master's $5,192 15 ($1,364) -20.8%
December 1, 2008 Office of Budget, Planning and Analysis 17
December 1, 2008 Office of Budget, Planning and Analysis 18
December 1, 2008 Office of Budget, Planning and Analysis
Unemployment Rates
Income Changes
Market Share
19
December 1, 2008 Office of Budget, Planning and Analysis20
-5.0%
0.0%
5.0%
10.0%
15.0%
UG Enrollment Changes by Percentage Compared to Unemployment Rate
Wayne State
Univ. of Michigan-AA
Eastern Michigan
Michigan UnemploymentRate
Michigan State
Chart compares the Michigan unemployment rate to changes in enrollment at EMU, U of M, MSU, and WSU over time.
December 1, 2008 Office of Budget, Planning and Analysis
MSU
UM
WSU
CMU
GVSU OU
21
December 1, 2008 Office of Budget, Planning and Analysis 22
1.8% 1.8%
0.7% 0.7%
0.2%0.1% 0.1%
0.0%
-0.2% -0.3%-0.3% -0.5%
-0.8%
-1.7% -1.7%-2.0%
-1.0%
0.0%
1.0%
2.0%
GVSU OU CMU SVSU MSU FSU NMU UM-F MTU LSSU WMU UM-D UM-AA EMU WSU
Perc
ent C
hang
e
Total Enrollment Market Share Changes between Fall 1998 - Fall 20072,537
1,677 1,034
1,958309 155
136
-79 107224 162
457
-528 468
• Census population grew 0.8% between 2000 – 2006
• Enrollment in MPUs grew 10% (or 11,762) from fall 1998 – 2007
• OU & GVSU accounted for 52% or 6,113 of the growth
• Enrollment in community colleges increased 16.7% between 1998 - 2007
Total Enrollment Market Share Changes between Fall 1998 - Fall 2007
December 1, 2008 Office of Budget, Planning and Analysis
Livingston Macomb Monroe Oakland St. Clair Washten. Wayne
2006 Census
185,000 830,000 155,000 1,215,000 172,000 345,000 1,850,000
WSU Enroll 158 5,001 140 7,051 318 566 14,565
0.0%
-2.0%
0.0%
-0.4%
1.0%0.1%
0.5%0.3%
-5.7%
5.2%
-4.7%
-8.4%
-1.1% -1.8%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
LIVINGSTON MACOMB MONROE OAKLAND ST. CLAIR WASHTENAW WAYNE
Economic Impact to Enrollment : WSU % Change in Total Enrollment Market Share by County - Fall 1998 to Fall 2007
Undergraduate Graduate
23
December 1, 2008 Office of Budget, Planning and Analysis 24
December 1, 2008 Office of Budget, Planning and Analysis 25
• Board of Governors Budget and Finance Committee
• President
• Cabinet
• Faculty Senate
• Policy Committee
• Budget and Finance Committee
• Council of Deans
• Student Council
• Office of Budget, Planning and Analysis
December 1, 2008 Office of Budget, Planning and Analysis 26
State Budget Finalized
WSU Financial Report and Year End Budget
2nd Michigan Revenue Conference
WSU 2nd Quarter Report
WSU Tuition and Budget Approved
1st Michigan Revenue Conference
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
End of Fiscal YearSept. 30th
Start of Fiscal YearOct. 1st
BOG Meeting
BOG Meeting
BOG Meeting
BOG Meeting
BOG Meeting
BOG Meeting
BOG Meeting