Campus-Wide Budget Forum

December 10, 2008

Discussion TopicsDiscussion Topics• Context in terms of global, national, and

state economic environments• UW responses to date• Campus funding statistics• Budget principles• Next steps• Concerns already expressed• Questions, thoughts

Economic environments ….Economic environments ….•Global economic crisis beyond our control•Center on Budget & Policy Priorities

website reports that 41 states have projected revenue shortfalls totaling over $24 billion for 2009 alone!

•Chronicle of Higher Education and similar publications report regularly on higher education institutions grappling with financial issues

State’s Economic OutlookState’s Economic Outlook• Current FY 2008-09: $350 Million shortfall• Projected 2009-11: $5.4 Billion shortfall

against a budget of ~ $60 Billion• Largest funding gap in State’s history• Hiring freeze imposed on other state

agencies; UW exempted• Possible targeted tax increases

UW Response to DateUW Response to Date• UW System has not been given a number

or specific guidelines• Required to report on GPR hiring activities

and review travel requests• All campuses are beginning to prepare

scenarios to address shortfalls• President Reilly has scaled back the 2009-

11 unclassified pay plan recommendation by more than half to 2.5% for each year of biennium

2008-09 UW System Budget2008-09 UW System Budget(In Billions)(In Billions)

Total $4.731B Less:

Federal, Gifts, Grants, Contracts, Auxiliaries (2.256)Restricted GPR (.330)

Net GPR for Education $1.841 B

2008-09 UW Superior Total Budget (All Funds)$58 Million

GPR33%

Auxiliaries15%Gifts/Federal & State

Grants7%

Tuition/Fees20%

Federal Financial Aid25%

2008-09 UW Superior GPR/Fee Budget$31.5 Million

Fringe Benefits22.62%

Supplies & Expenses15.04%

Capital0.68%

Financial Aid0.54% Special Purpose

9.63%

Salaries and Wages51.50%

2008-09 UW System GPR/Fee Budget Proportions$2.17 Billion

Milwaukee, 13.20%

Extension, 5.18%

Eau Claire, 4.51%Oshkosh, 4.46%

Whitewater, 4.02%

Stevens Point, 3.87%

Madison, 38.73%

System Administration, 0.45%

Superior, 1.45%

UW Colleges, 3.41%

Stout, 3.65%

Lacrosse, 3.82%

River Falls, 2.63%

Parkside, 2.23%

Green Bay, 2.35%

Platteville, 2.82%

System Wide, 3.23%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Whatever the Number…..Whatever the Number…..• Rule of thumb is to take the campus’ GPR/Fee

percentage (roughly 1.5% x the number) to arrive at the campus share. Example: in 2005/07 UW System was required to take an administrative reduction amount of $14,148,000. UW Superior’s portion of that reduction was $206K (1.5% x 14,148,000)

• Campus does have a small contingency to address need; expected that it won’t be enough

Budget Principle Suggestions:Budget Principle Suggestions:• Focus on the student• Decisions made within the context of

campus’ strategic plan and priorities• Open dialogue engaging civility, dignity for

community members, and respect for diverse perspectives leading to transparent and understandable decisions

Budget Principle Suggestions, Budget Principle Suggestions, continuedcontinued

• Support the processes of shared governance and work with key internal constituencies

• UW Superior values its employees and will abide by contracts, policies, and established procedures. The campus has no intent to enter fiscal emergency status.

• Short term decisions may not be long term solutions

Concerns Expressed to DateConcerns Expressed to Date

• Liberal arts initiative• Hiring freezes/recruitment activity• Financial Aid• Auxiliary cash balances• Building projects• Pay plan

Identified Priorities/InvestmentsIdentified Priorities/Investments• Admissions• Marketing• Retention• Affirmative Action • Tenure Track Positions• Salary Compression Issues• Faculty/Staff Development

Strategic ThemesStrategic Themes• Academic Excellence• Culture of Respect• Campus Life• Continuous Improvement• Resource Management• Enrollment Management• University Image

Next steps:Next steps:• Continuous Improvement Planning Team

(CIPT) meets, gathers campus input, discusses possible strategies

• Program assessments and prioritization at all levels

• Identify efficiencies and flexibilities utilizing “lean” principles

• Weekly budget updates

Questions/ThoughtsQuestions/Thoughts

In Closing…In Closing…• Campus is going to be facing some hard

decisions as we position for the future• Approach this process from a culture of

caring • As we become aware of information it will be

passed on to the community• Thank you for your hard work, dedication,

and in these uncertain times, your patience.