Presentation to the Deans

June 13, 2013

59%27%

6%5% 3% 0%

Revenue

Maint & Req. Fee

State Appropriations

Sales and Services

Non Mandatory Fee

Grants and Contracts

Other Sources

62%10%

7%

12%

3% 3% 2%1%

Maintenance and Required Fees

Regular Maintenance

Entrepreneurial

Summer Term

Out -of-State

Debt Service Fees

Tech Access Fee

Student Activity Fee

Other Required

45%

26%

8%

7%

5%9%

Non Mandatory Fees

Course Fees

Materials Fee

RODP Fee

Prof. Development

Camps & Conf

Other Non Mand

82%

11%

7%

Sales and Services

Athletics

Child Care Centers

Other Sales and

Services

35%

7%

52%

6%

Grants and Contracts

Federal

State

Local

Private

48%

2%1%10%

12%

9%

8%

7% 1%2%

Function

Instruction

Research

Public Service

Academic Support

Student Services

Institutional Support

O & M of Plant

Scholarships

Mandatory Tfr

Non Mandatory Tfr

43%

9%

20%

1%

8%

3%3%

2%11% 0%

Natural Class

Professional Salaries

Other Salaries

Benefits

Travel

Scholarships

Grad Sch & Rem.

Performance

Utilities

Other Operating

Capital Outlay

Outcomes Adjustment $ 446,900

Outcomes Additional Funding $2,078,600

Hold Harmless Adjustment $1,034,800

Total Continuation $1,490,700

One Time Hold Harmless Adj. $ 755,800

Net Appropriation 13-14 $ 734,900

October 2012

Negatives in Budget (anticipated fall out) $2,400,000

Transfers from Reserves $1,000,000

Spring Changes

Enrollment Issues $2,100,000

Increased Costs $1,000,000

Total Spring Deficit $6,500,000

To Be Covered by Anticipated Fall Out $3,400,000

Transfers from Reserves $3,100,000

2013 2012

Budget 171,285,330 166,556,940

Expenditures (153,961,067) (154,451,294)

Encumbrances (8,924,193) (1,267,083)

Unexpended 8,400,070 10,838,563

Spring 2013 Deficit $6,500,000

Net Appropriation Increase $ 734,900

4.5 % Fee Increase (Net) $2,889,000

1.5% Equity Pool $1,281,000

Increased Costs (Includes University share of 1.5% salary increase)

$2,215,000

Enrollment Adjustment $1,100,000

Other Budget Adjustments $ 472,100

Total Projected Deficit $7,000,000

0

2000

4000

6000

8000

10000

12000

14000

2008 2009 2010 2011 2012 2013

Proj

UG FTE

Grad FTE

Total FTE

Enrollment◦ FY 2011-12 Projected at 3% Growth

Actual UG 2.63% (281 FTE), Grad -3.96% (60 FTE)

◦ FY 2012-13 Projected flat

Actual UG -3.4% (369 FTE) Grad 5.9% (85 FTE)

◦ FY 2013-14 Projected Flat

Freshmen Applications Down 8%, Transfer Applications Down 3%, Graduate Applications up 13%

Current Enrollment

UG – -254 FTE (-3.6 %)

Grad – 60 FTE (8.2 %)

Enrollment Effects◦ FY 2011-12 below estimates -$1.3 M

◦ FY 2012-13 below estimates -$1.3 M

◦ FY 2013-14 Potential -3% UG 8% Grad -$1.1 M

Total Deficit -3.7 M

Entrepreneurial◦ Effect of Entrepreneurial Policy on Budget

FY 2011-12 -$.8 Million

FY 2012-13 -$.8 Million

FY 2012-13 % Adjustment $1.3 Million

◦ Total Effect of Entrepreneurial -$.3 Million

Entrepreneurial Effect On Budget◦ For each increase of 1% in Fees approved by TBR

$120,000 is allocated to departments for purposes other than what fee increase was approved

Allocation of Revenue

Revenue

Students Tuition Generated General Fund Cohort Cost Center

1 Budgeted 100 1,000.00 100,000.00 100,000.00

2 Non Cohort Enrollment 95 1,000.00 95,000.00 95,000.00

Budget Shortfall (5,000.00) (5,000.00) -

3 Non Cohort Enrollment 90 1,000.00 90,000.00 90,000.00

Cohort Enrollment 5 1,000.00 5,000.00 2,500.00 2,500.00

Totals 95,000.00 92,500.00 2,500.00

Budget Shortfall (5,000.00) (7,500.00) 2,500.00

4 Non Cohort Enrollment 90 1,000.00 90,000.00 90,000.00

Cohort Enrollment 3 3,000.00 3,000.00 1,500.00 1,500.00

Cost Center Enrollment 2 2,000.00 2,000.00 2,000.00

Totals 95,000.00 91,500.00 1,500.00 2,000.00

Budget Shortfall (5,000.00) (8,500.00) 1,500.00 2,000.00

Scholarships◦ 1% Fee Increase Gross $979,000

◦ Increase in Scholarship $217,000

◦ ETSU Net After Scholarships $762,000

October 2012 Scholarship as % of Budget◦ ETSU 7.47%

◦ APSU 5.22%

◦ MTSU 4.95%

◦ TSU 4.48%

◦ TTU 6.24%

◦ UOM 4.03%

Assume ETSU Share of ATB Increase = $1M

TBR would calculate 1% fee increase needed to cover – 1% = $979,000

Total Costs $1,000,000

Fee Increase $979,000

Allocated to Sch. $217,000

Entrepren. Dist. $120,000

Available for Salary $ 642,000

Salary Increase Shortfall $ 358,000

0

1000000

2000000

3000000

4000000

5000000

2013

976500

540000

2889000Available

Entrepreneurial

Scholarship

Total 4,405,500

Hold Harmless2011-12 State Estimated Appropriation (after 2% Reduction) 708,783,000

2011-12 Formula Calculation 1,252,486,600

% Funded 56.59%

ETSU 2011-12 Formula Need 73,803,000

2011-12 Formula Calculation 1,252,486,600

ETSU Share 5.89%

Total 2% Reduction 17,200,000

ETSU Share of 2% reduction based on 5.89% share 1,013,300

ETSU 2011-12 Formula Need 73,803,000

Anticipated 2011-12 ETSU Funding Based on 56.59% 41,765,200

Estimated Preliminary 2011-12 State Appropriation 44,870,000

Overfunding (3,104,800)

2% Reducton Share (1,013,300)

Net Overfunding (2,091,500)

New Formula Impact for ETSU In numbers above 377,000

Total Attributable to Hold Harmless (2,468,500)

Base Budget Increases in July Budget◦ FY 2011-12 $2,742,240

Included $1,440,830 stimulus one time move to continuation

◦ FY 2012-13 $ 840,470

◦ FY 2013-14 $1,511,468

Other Increases in mid year not included in above figures (salary adjustments, President Emeritus costs, etc.)

Affordable Health Care Act◦ Potential for FY 2013 – 14 $75,000 – $100,000◦ This is ½ year only. Goes up in future

What is involved◦ Anyone that averages working over 30 hours per week

must be offered coverage◦ Employee Only First Year, Employee and children

beginning second year

Questions◦ Period used for measurement◦ How to calculate for adjunct faculty (current plan 2 ½

hours of work for each credit hour – Longevity Policy)◦ Will state cover in some manner

Position Freeze Salary Savings Targeted Budget Reductions Cell Phone Allowance Freeze Entrepreneurial at Current Level Analyze Entrepreneurial to Ensure Meeting

Spirit of When They Were Established Local Travel Additional Revenue Others??

$20,000 - $29-999 20 $ 9,120 $30,000 - $39,999 40 $ 21,065 $40,000 - $49,999 31 $ 23,880 $50,000 - $59,999 30 $ 26,758 >$60,000 62 $ 57,336 Total University 183 $138,159 COM 25 $ 19,657 FM 2 $ 960 COP 6 $ 4,800 Auxiliary 11 $ 6,700 Grants 66 $ 46,085 Totals 293 $216,361

Short Term◦ Decisions Needed to Address Potential $7,000,000

Reduction for FY 2013-14

Long Term◦ Implement Budget Process to Ensure All Budgetary

Decisions are Made in a Strategic Manner◦ Dean meeting with Rick Staisloff– June 27

Budget Process

Proforma

KPI’s

Peers

Committee Structure (Institutional Effectiveness Committee)

◦ Program/Administrative Review

No Funds Have Been Moved from General Budget to Support Football

Athletics (Including Football) must live within their overall revenue from General Fund Support, Fees, Game Receipts, etc.

Should we present the Football pro forma for transparency sake?

EAST TENNESSEE STATE UNIVERSITY

SUMMARY OF UNRESTRICTED NET ASSETS

June 30, 2012

General

Total Academic Auxiliary COM FM COP

Unrestricted Net Assets

Unrestricted E & G Funds 8,363,513 6,023,406 1,419,348 185,848 714,051 20,860

Quasi Endowment Funds 18,962,069 2,131,019 16,831,050

Unexpended Plant Funds 19,005,062 20,396,351 890,987 (2,282,276)

Renewal and Replacement Funds 30,902,104 5,262,743 8,228,034 10,383,818 2,206,160 4,821,349

Retirement of Indebtedness Funds 1,036,726 115,988 (260,920) 1,101,354 80,304

Total Unrestricted Net Assets 78,269,474 33,929,507 10,538,369 24,857,520 4,021,565 4,922,513

% of Unrestricted Net Assets 100.00% 43.35% 13.46% 31.76% 5.14% 6.29%

University E & G◦ Working Capital $ 3,352,128

◦ Encumbrances $ 1,472,180

◦ Special Fees $ 5,333,625

◦ Research $ 5,263,005

◦ 2%-5% Required Reserve $ 3,253,410

◦ University School $ 161,160

◦ Comp Absence and OPEB $13,198,613

◦ Unallocated $ 386,511

◦ Total E & G $ 6,023,406

Quasi Endowment◦ Honors $2,000,000

◦ Athletics $ 131,019

Unexpended Plant◦ Land Purchase $ 2,642,870

◦ Extraordinary Maintenance $ 302,954

◦ Physical Plant Utilities $ 1,577,410

◦ Insurance Loss Pool $ 449,980

◦ Facilities Improvement $ 4,643,700

◦ Construction and Special $10,779,437

◦ Total $20,396,351

R & R◦ Equipment Replacement $2,437,832◦ Memorial Center and Univ Ctr $ 255,621◦ OIT and Motor Pool $ 808,019◦ Computer Replacement $ 302,212◦ Technology Access Fee $ 325,594◦ University School $ 78,969◦ Campus ID (Student Fees) $ 117,603◦ Administrative Systems $ 632,623◦ Athletic Facilities (Ath. Funds) $ 304,270◦ Total $5,262,743

Retirement of Indebtedness◦ Child Study Center $ 19,189

◦ Energy Performance $ 96,799

◦ Total $115,988

Approved

FY 2013 FY 2014 Total Before Requested Total Projected % Increase

Total Mandatory Maintenance Maint Fee Mandatory Total for Total

Institution Mandatory Increases Increase Increase Increases Mandatory Mandatory

APSU 6,918$ 60$ 6,978$ 180$ 240$ 7,158$ 3.5%

ETSU 6,997$ 270$ 7,267$ 276$ 546$ 7,543$ 7.8%

MTSU 7,492$ 24$ 7,516$ 324$ 348$ 7,840$ 4.6%

TSU 6,702$ -$ 6,702$ 72$ 72$ 6,774$ 1.1%

TTU 7,000$ 35$ 7,035$ 348$ 383$ 7,383$ 5.5%

UOM 8,234$ -$ 8,234$ 432$ 432$ 8,666$ 5.2%

CHSCC 3,717$ -$ 3,717$ 102$ 102$ 3,819$ 2.7%

CLSCC 3,671$ -$ 3,671$ 102$ 102$ 3,773$ 2.8%

COSCC 3,673$ -$ 3,673$ 102$ 102$ 3,775$ 2.8%

DSCC 3,693$ -$ 3,693$ 102$ 102$ 3,795$ 2.8%

JSCC 3,679$ -$ 3,679$ 102$ 102$ 3,781$ 2.8%

MSCC 3,678$ -$ 3,678$ 102$ 102$ 3,780$ 2.8%

NASCC 3,627$ -$ 3,627$ 102$ 102$ 3,729$ 2.8%

NESCC 3,683$ -$ 3,683$ 102$ 102$ 3,785$ 2.8%

PSCC 3,719$ 6$ 3,725$ 102$ 108$ 3,827$ 2.9%

RSCC 3,687$ -$ 3,687$ 102$ 102$ 3,789$ 2.8%

STCC 3,717$ -$ 3,717$ 102$ 102$ 3,819$ 2.7%

VSCC 3,669$ 4$ 3,673$ 102$ 106$ 3,775$ 2.9%

WSCC 3,681$ -$ 3,681$ 102$ 102$ 3,783$ 2.8%