Major Budget Policy Issues and Outlook o Tuition and Financial Aid o Endowed, Contract, Professional o Endowment Payout o Salary Improvement Plan

BUDGET PLANNING OVERVIEW

GRADUATE & PROFESSIONAL STUDENT ASSEMBLY

FEBRUARY 20, 2012

VICE PRESIDENT ELMIRA MANGUM

Agenda

Major Budget Policy Issues and Outlooko Tuition and Financial Aid

o Endowed, Contract, Professional o Endowment Payouto Salary Improvement Plan

Elimination of Structural Deficito Reduce Administrative Costs (Streamlining Program) o No new costs without funding or identified income sources

Budget Model Change

Budgeted Revenues for FY 2012

Budgeted Operating Expenditures

for FY 2012

Five Year Total Capital Plan - $1.649B

FY 2012 Expenditures $ 373.9 M

• Projects Approved and Underway 977.2 M• Major Projects/ New Construction 157.6 M• New York State

66.0 M• Maintenance, Infrastructure, Unit 397.1

M• Weill Cornell Medical Projects 51.0

M

This Five Year Plan represents a 11% reduction inactivity from FY 2011 plan.

24% reduction in activity from FY 2010 plan

37% reduction in activity from FY 2009 plan

$0

$5

$10

$15

$20

$25

$30

Cost Savings Results by Initiative

Original Target Recovered to Date Outstanding

Millions

ASP Initiatives (in Millions)

Original Target

Recovered to Date

Outstanding

Procurement 30.0$ 2.7$ 23.5$

Spans & Layers 17.3 14.4 2.7 Information Technology 12.0 2.0 11.0 Provost - 12.0 Facilities 15.9 6.4 0.3 Centers & Institutes - 4.9 - Student & Academic Services - 0.2 1.8 Finance 1.8 0.5 0.8 Human Resources 1.0 - (0.6) Communications - - 0.5

TOTALS 78.0$ 43.2$ 40.0$

(Net of Investments)

OUTLOOK

Quality & Access Competitive Salaries & Benefits

Program Enrichment

Undergraduate Tuition and Aid

State Support

Compliance

Facilities/Utilities

Increases in Security

Supplies & Materials

Balanced Budget

Market Position

Undergraduate Peer Tuition and Mandatory Fees

University Comparison Group 2011-12   Change %Columbia $ 45,290 4.6%Dartmouth 42,996 6.3%Chicago 42,783 4.1%Duke 42,410 4.3%Brown 42,230 3.5%U. Pennsylvania 42,098 2.8%Northwestern 41,983 4.4%Cornell (Endowed & Nonresident) 41,541 4.7%MIT 40,732 3.9%Stanford 40,569 2.6%Yale 40,500 5.7%Harvard 39,581 3.7%Princeton 37,865 1.2%U. Virginia (nonresident) 36,578   8.9%UC-Berkeley (nonresident) 35,713 5.6%

IVY Average 41,547 4.0%

Graduate Tuition

Graduate Research - No Change

Graduate School - Professional Degree 4.5%Market Based Changes set by Individual Colleges

3% Graduate Stipend Increase was approved with the campus Salary Improvement Program

Graduate School Tuition History

Endowment Payout Policy

Goal: Steady, predictable payout increase for operating budgets smoothed for budget and planning purposes with sensitivity to changes in market value.

The Budget Model Change

• Transparent, simple, data informed, and advance academic excellence

• Manage the cost pressures of the current environment• Improve service, quality and reduce costs• Improving processes to respond to:

• Deep cuts in state appropriations• Decreasing parental and student ability to pay tuition

bills• Severely constrained revenues• Declines in fundraising, investment income, and

research grants• Increasing operational costs, deferred maintenance, and

other capital

Policy Building Committee

Team Members

VP P&B,Elmira Mangum

Senior Vice Provost, Research

Senior Vice Provost, Land Grant

Vice Provost, Undergrad. Ed.

Budget Model Steering Advisors

Leadership

Vice Provost,Dean of

Graduate School

Vice President, Facilities

University Faculty Senate - FPC

Set direction Provide guidance Test alternatives Make decisions

Advise and represent stakeholders

Champion redesign efforts

Address policy issues

Propose alternatives Recommend specific

solutions, policies and procedures

Determine budget impact of recommendations

Provost,Kent Fuchs

Deans(A&S, CALS, CIS,

ENG. & DVM)

Next Steps & Implementation

Undergraduate Tuition and Financial Aid Pooled and distributed Space Use – Space Study launched, guidelines developed Cost Allocation Methodology University Support Pool – to fund central costs Facilities and Administrative Reimbursements – under

development New York State Appropriation – under development Graduate Tuition – no change Cornell Abroad – moved to GP funding & CAM Endowed Professorships – centrally held – moved to Dean’s office