Overview Of University Budget And Planning Process

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