AUBURN UNIVERSITYAUBURN UNIVERSITYFY09 Budget Development and FY09 Budget Development and Proposed Tuition RatesProposed Tuition Rates

As Presented to the Board of Trustees

June 27, 2008

AUBURN UNIVERSITY-All DivisionsAUBURN UNIVERSITY-All DivisionsProposed Budget Development PlanProposed Budget Development Plan

Projected reductions/add’l costs

Reduction in state appropriations $40.8M

Mandatory costs/strategic obj $18.6M

Required to address budget needs $59.4M

Actions to address budget needs

Tuition & Fees increase of 12% $22.6M

Budget actions $36.8M

Available to address budget needs $59.4M2

Tuition RecommendationsTuition Recommendations

For the Academic Year

2008-2009

3

Twenty-First Century CommissionTwenty-First Century CommissionRecommendationRecommendation• Finances

• 5(a) A student tuition policy should be effected that incorporates the following … An orderly plan that would move tuition rates at Auburn as quickly as feasible to levels that reach or exceed the regional average for peer institutions.

4

Auburn University Main CampusAuburn University Main CampusTuition Recommendation Tuition Recommendation (Attachment 1)(Attachment 1)

• Current rate – Resident $2,917 Nonresident $8,167

• Proposed - Resident $3,250

Nonresident $9,130

12% Increase

5

Tuition – ResidentTuition – ResidentSREB Peer InstitutionsSREB Peer Institutions2007-2008 (Attachment 3)2007-2008 (Attachment 3)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

Clemso

n

U of V

A

U of S

C

U of M

D

U of T

X

Va Tec

h

TX A&

M

U of K

Y

U of A

K

U of T

NAU

U of A

L

GA Tec

h

U of G

A

U of N

C

NC State

MSU

U of M

S

WVU

LSUFSU

U of F

L

Rank 11thRank 11th

Regional Regional MeanMean

6

Tuition – Non-ResidentTuition – Non-ResidentSREB Peer InstitutionsSREB Peer Institutions2007-20082007-2008

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

Rank Rank 15th15th

Regional Regional MeanMean

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Resident Tuition Resident Tuition Auburn vs. SREB PeersAuburn vs. SREB Peers(Attachment 5)(Attachment 5)

$6,172$5,823

$5,441

$5,003

$4,511

$5,834

$5,496

$5,278

$5,068

$4,666

$4,000

$5,000

$6,000

$7,000

2003-04 2004-2005 2005-2006 2006-2007 2007-2008

Region Auburn

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State Appropriations and Tuition per FTEState Appropriations and Tuition per FTESREB Peer InstitutionsSREB Peer Institutions2007-2008 (Attachment 8)2007-2008 (Attachment 8)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

Rank 13thRank 13th

RegionalRegionalMean Mean

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AUM Tuition RecommendationAUM Tuition Recommendation

• Recommendation for tuition rates for 2008-2009Academic Year • Undergraduate-Resident $ 2,655• Undergraduate-Nonresident $ 7,965• Graduate-Resident $ 2,544• Graduate-Nonresident $ 7,620• Reflects 12% increase in current rate

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AUM Tuition – Resident UndergraduateAUM Tuition – Resident UndergraduateState of Alabama Public SeniorState of Alabama Public Senior Institutions Comparison (Attachment 3)Institutions Comparison (Attachment 3)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Montev

allo

AU

U of A

LUAH

UABUNA

JSUAUM

AL A&

MUSA

UWA

AL ST

Troy

Athen

s St.

MeanMean

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AUM Tuition - GraduateAUM Tuition - GraduateState of Alabama Public SeniorState of Alabama Public Senior Institutions Comparison Institutions Comparison

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

UAHAU

JSU

AL A&

M

U of A

LUNA

Montev

allo

UABUSA

ASU

U of W

AL

AUMTro

y

MeanMean

12

FY09 Budget DevelopmentFY09 Budget Development

13

Auburn UniversityAuburn UniversityFY08 Total Budget - $839.3MFY08 Total Budget - $839.3M

Unrestricted $628.0M

75%

Auxiliary$86.2M

10%

Restricted$ 125.1M

15%

14

Total FY08 Total FY08 Budget by Division $ 839.3MBudget by Division $ 839.3M

ACES $63.6M

AAES $66.9M AUM

$70.6M

Main Campus $638.2M

15

FY08 Main Campus Budget - FY08 Main Campus Budget - $638.2M$638.2M

Restricted$73.0M

Auxiliary$81.3M

Unrestricted$483.9M

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FY08 MAIN CAMPUS BUDGETFY08 MAIN CAMPUS BUDGETUnrestricted - $483.9MUnrestricted - $483.9MUnrestricted Base Budget - $415.6MUnrestricted Base Budget - $415.6M

Non-Base$68.3M

Base Budget$415.6M

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Main Campus Proposed Budget PlanMain Campus Proposed Budget PlanFY09FY09

Reduction in appropriations $26.0M

Mandatory & strategic commitments

14.6M

Additional needed $40.6M

Proposed tuition 20.2M

Budget reductions 20.4M

Additional available $40.6M

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Main CampusMain CampusProposed Continuing Allocations – Proposed Continuing Allocations – Base BudgetBase Budget

Promotions $ .7M

Benefit Inc (TR, PEEHIP) 2.0M

Utility/facilities costs 2.7M

Scholarships 2.5M

Debt Service 2.1M

Provost/Academic Affairs 1.5M

Security/Emergency Mgt 1.7M

Other priorities 1.4M

$14.6M19

Main Campus Proposed Budget PlanMain Campus Proposed Budget PlanFY09 – Budget ReductionsFY09 – Budget Reductions

Reduce Deferred Maintenance allocation $4.0M

2% Give back from colleges/VP areas 5.8M

Selected reduction in non-academic base budget accounts 10.6M

$20.4M

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Total FY08 Total FY08 Budget by Division $ 839.3MBudget by Division $ 839.3M

ACES $63.6M

AAES $66.9M AUM

$70.6M

Main Campus $638.2M

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FY08 AUM Budget - $70.6MFY08 AUM Budget - $70.6M

Restricted$12M

Auxiliary$4.9M

Unrestricted$53.7M

22

FY08 AUM Unrestricted Budget - FY08 AUM Unrestricted Budget - $53.7M$53.7M

Base Budget$52.1M

Non-Base$ 1.6M

23

AUM Proposed Budget PlanAUM Proposed Budget PlanFY09FY09

Reduction in appropriations $3.1M

Mandatory commitments 2.3M

Additional needed $5.4M

Proposed tuition 2.4M

Budget reductions 3.0M

Additional available $5.4M

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AUM Proposed Continuing Allocations AUM Proposed Continuing Allocations – Base Budget– Base Budget

Faculty promotions $ 33,150

Benefit Inc (TR, PEEHIP) 647,464

Scholarships/waivers 442,462

Athletics 236,685

Merchant fees V/MC 50,000

TechnaCenter operations 150,000

Insurance Premium 50,000

PwC (SACS requirements) 30,000

Academic Affairs 588,185

$2,227,94625

Total FY08 Total FY08 Budget by Division $ 839.3MBudget by Division $ 839.3M

ACES $63.6M

AAES $66.9M AUM

$70.6M

Main Campus $638.2M

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FY08 AAES Budget - $66.9MFY08 AAES Budget - $66.9M

Restricted$21.1M

Unrestricted$45.8M

27

FY08 AAES Unrestricted Budget - FY08 AAES Unrestricted Budget - $45.8M$45.8M

Base Budget$41.2M

Non-Base$ 4.6M

28

AAES Proposed Budget PlanAAES Proposed Budget PlanFY09FY09

Reduction in appropriations $5.5M

Mandatory commitments .7M

Additional needed $6.2M

Budget reductions 6.2M

Additional available $6.2M

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AAESAAESProposed Continuing Allocations – Base Proposed Continuing Allocations – Base BudgetBudget

Promotions $ 70,000

Benefit Inc (TR, PEEHIP) 490,000

Building Insurance, operations and maintenance 105,000

$665,000

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Total FY08 Total FY08 Budget by Division $ 839.3MBudget by Division $ 839.3M

ACES $63.6M

AAES $66.9M AUM

$70.6M

Main Campus $638.2M

31

FY08 ACES Budget - $63.6MFY08 ACES Budget - $63.6M

Restricted$19.0M

Unrestricted-All Base$44.6M

32

ACES Proposed Budget PlanACES Proposed Budget PlanFY09FY09

Reduction in appropriations $6.3M

Mandatory commitments .9M

Additional needed $7.2M

Budget reductions 7.2M

Additional available $7.2M

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ACESACESProposed Continuing Allocations – Proposed Continuing Allocations – Base BudgetBase Budget

Promotions $ 110,700

Benefit Inc (TR, PEEHIP) 817,000

Utility/Maintenance on existing buildings 15,000

$ 942,700

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