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The Florida International University Budget Town Hall Discussion
May 18, 2009
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AGENDA
THE FLORIDA INTERNATIONAL UNIVERSITY
Update from Last Town Hall Meeting Legislative Budget Update Federal Stabilization Fund
E&G Budget Reduction Proposed Plans Proposed Plans Academic Affairs Proposed Plans Non-Academic Affairs Operations
Strategic Evolution of the University Devolution Compliance
Next Steps: Timeline
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LEGISLATIVE BUDGET UPDATE
Net 15% General Revenue reduction
$29M recurring reduction
Offset by $1.2M non recurring
Lotto funds reduction of $2.5M - uncertainty about future collections
PECO funding reduced by $31.2M over last year
No funding for Courtelis Facility and Challenge Grants
Positive Outcomes
Tuition increase of 8% for undergraduate
Undergraduate differential tuition up to 7% additional
College of Medicine 100% funded
$10.9M additional recurring funds
$.9M one time Federal Stabilization funds
Additional ONE TIME funding from Federal Stabilization fund $14M
RESULT : CONTINUE WITH BUDGET REDUCTION PLANS
Unfavorable Impacts
Excluded from 2% state employee salary cut
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RESTRICTIONS ON EDUCATION STABILIZATION FUNDS Federal Guidelines
* The list of prohibitions is not meant to be all-inclusive; uses and prohibitions are also subject to ARRA (American Recovery and Reinvestment Act) and other applicable requirements.
Education and General expenditures Modernization, renovation, or repair of instructional, research, or
student housing facilities
Endowments Maintenance of systems, equipment, or facilities Maintenance costs, new construction, modernization of athletic
facilities or religious facilities Restoring or supplementing a "rainy day" fund
Source: Guidance on the State Fiscal Stabilization Fund Program, U.S. Department of Education Washington, D.C. 20202, April 2009 (Page 26-30)
Possible Uses
Prohibitions *
Strategically directed to strengthen FIU going forward on non recurring critical investments
One Time Funds As Temporary Bridge
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EDUCATION STABILIZATION FUNDS
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EDUCATION STABILIZATION FUNDS
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EDUCATION STABILIZATION FUNDS
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AGENDA
THE FLORIDA INTERNATIONAL UNIVERSITY
Update from Last Town Hall Meeting Legislative Budget Update Federal Stabilization Fund
E&G Budget Reduction Proposed Plans Proposed Plans Academic Affairs Proposed Plans Non-Academic Affairs Operations
Strategic Evolution of the University Devolution Compliance
Next Steps: Timeline
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THREE YEAR ROLLING PLAN Operating Gap
Cumulative Amounts
NETGAP UNITS'CUTS 08‐09plan
ADDITIONAL CUTS
08‐09 ($15.0) $15.0
09‐10 ($34.6) $23.2 $11.4
10‐11 ($48.7) $35.7 $13.0
11‐12 ($53.3) $35.7 $17.6
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ACADEMIC AFFAIRS GROUP STRUCTURE
Strategic to FIU
Return on Investment
Cost
Faculty Investment
PhD Production
Criteria Relative Importance / Definition
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7
5
3
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As defined in FIU strategic plan
Total of all funding divided by E&G support – tuition, research, gifts, and auxiliaries College level analysis using Delaware study benchmark
Faculty cost plus startup dollars expectation
Three year average PhDs awarded divided by Tenure-Tenure track faculty
ACADEMIC AFFAIRS BUDGET REDUCTION PLAN
Group 1 (overall score > 60) 3.3% 3.6% 5.0% Arts & Sciences (64), Business (61), Engineering & Computer Sciences (64), Public Health & Social Work (66)
Group 2 (overall score 40 – 59) 4.1% 4.6% 6.2% Hospitality (54), Nursing & Health Sciences (54), Education (49)
Group 3 (overall score < 39) 5.1% 5.6% 7.7% Architecture & the Arts (38), Journalism (37), Law (38)
Group 4 (overall score not applicable) 5.3% 5.9% 8.0% Library, Honors, Museums, Student Affairs and all other Provost areas
ADDITIONAL BUDGET REDUCTION PLAN
Cumulative Percentages
09-10 10-11 11-12
Reductions for planning purposes, subject to change
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Shift to Other Funding/Revenue Sources
Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M
ACADEMIC AFFAIRS CUT STRATEGIES
Lower Operational Costs
• Private support for museum operations
• Reallocate operating expenses to grants, overhead and fees
• Consolidate or reduce administrative functions – Eliminating Continuing and Professional Studies; 4 Vice Provost positions
• Consolidate six departments into three
• Reduce library purchases, reduce travel, service hours in enrollment services, convert print materials to library on line access, computer replacements, marketing in select programs, recruitment events, permanent and temporary staff
• Change instructional mix of summer courses, decreased use of adjuncts due to enrollment strategy, increase class size, eliminate faculty through vacancy, attrition
Saves $3.4M Impacts 66 Positions: Saves $9.3M
Attrition 25, Vacancy 19, Elimination 22
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Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M
Degree Program Closure
ACADEMIC AFFAIRS CUT STRATEGIES
Education Arts & Sciences Recreation &Sports Management ( B-62, M-19) Religious Studies (B-87,M-33) English Ed MAT (M-6) Mathematical Sciences (B-24) French Ed (B-0) French Ed MAT (M-2) Mathematics Ed MAT (M-4) Nursing & Health Sciences Science Ed MAT (M-2) Athletic Training (M-25) Social Studies Ed MAT (M-5) Occupational Therapy (B-0) Spanish Ed (B-0) Physical Therapy (M-0) Spanish Ed MAT (M-0) *Adult Education (M-9) *Adult Education & Human Resource Development (D-27) *Higher Education Administration (M-82,D-53) *International Education (M-19) *Urban Education (M-11)
Impacts 20 positions: Saves $1M Elimination 20
Degree level: B – Bachelor ; M – Master; D - Doctorate *Degrees will be subsumed under existing degree program
NON-ACADEMIC AFFAIRS OPERATIONS* BUDGET REDUCTION METHODOLOGY
Incremental Planned Cuts
Prioritization
Planned cuts range from 1% to 7% by FY 2011-12
Group 4 cuts could exceed 35%
$3.7M in additional cuts
58 Positions: 7 Attrition, 22 Vacant, 29 Eliminated or Reassigned
*Includes Finance & Administration, Advancement, Community Relations, General Counsel, Government Relations, BOT Office, President’s Office
Group 1: Compliance and University-Wide Strategic Projects Examples: Equal Opportunity Program, IT Security, BioChemical Receiving
Group 2: Essential Services where service will be reduced or contractual commitments renegotiated Examples: Media Technology Services, Disaster Recovery, PeopleSoft
Group 3: Areas where efficiencies gained from a change in current business processes or in customer service delivery method Examples: Purchasing Services, Student Payment Services (Online)
Group 4: Less Essential Services where current levels cannot be afforded Example: Groundskeeping
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AGENDA
THE FLORIDA INTERNATIONAL UNIVERSITY
Update from Last Town Hall Meeting Legislative Budget Update Federal Stabilization Fund
E&G Budget Reduction Proposed Plans Proposed Plans Academic Affairs Proposed Plans Non-Academic Affairs Operations
Strategic Evolution of the University Devolution Compliance
Next Steps: Timeline
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HIDDEN BUDGET CUTS
*2001 Statutes :229.002(1)(f), 229.003(5)(a), 229.008 (1-9). 2002 Statutes: 1011.40(2), 1011.4105 (1-5)
Process 2001 Statute* abolishes Board of Regents and
authorizes Board of Trustees Transitioned information systems and treasury
operations
Incremental Functions Board of Trustee Office and Support Information Systems – Financials and Payroll Treasury Operations
Unfunded Costs (estimated)
Recurring costs of $5.7M annually Incremental 25 FTE
Permeates the culture of the institution through evolving research compliance, federal regulatory requirements and SACs accreditation, NCAA Research
HIPAA, grant administration, controlled substances, human subjects
Student/Employee International, confidential information, bargaining, IT security, emergency management, athletics
SACS Credentialing, assessments, QEP
Unfunded Costs (estimated) Recurring costs of $12.5M annually Incremental 119 FTE
Flexibility gained from devolution and strategic research mission requires annual critical investments of $18.2M and 144 FTE
Devolution Compliance
“Be careful what you ask – you may just get it”
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PERSONNEL GROWTH
Analysis of personnel growth from 2002 to 2008
E&G Faculty increased 85 positions
E&G Administrative personnel grew 88 positions
Non E&G positions grew by 105, funded from self sustaining operations (C&G, Auxiliary, and Student Fees)
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TIMELINE
May 26 Faculty Senate Meeting Recommendations on program closures
June 1 Board of Trustees Budget Workshop
June 8 Governor’s Veto period expires (approximately)*
June 12 Board of Trustees Meeting
Please send all comments, questions and ideas to President Maidique at presmail@fiu.edu
* Governor must sign or veto legislation within 15 days of receiving the bill. As of May 13, 2008 the governor had not received the appropriations bill.
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The Florida International University Budget Town Hall Discussion
May 18, 2009