Budget Update

Successes, Challengesand Decisions Ahead

David Eisler, presidentSally DePew, director, Budgetary Planning & Analysis

Outline for Today

• Ferris budget information

– Look back at 2019 fiscal results

– Information on 2020 budget

• Revenue and enrollment

• Looking forward to 2021

• Strategic initiatives

2018-2019 University Fiscal ResultsGeneral Fund Expenditures - $210 Million

Instruction and Academic Support

$118.957%

Student Services

$17.58%

Plant$14.0

7%

Institutional Support

$22.911%

Research/Public Service

$0.40%

Transfers$11.25%

Financial Aid$25.512%

Amounts in Millions

45%

12%

6% 7%

11%

0%

5%

12%

2%

36%

13%

5%

8%10%

7% 7%

14%

1%

Instruction AcademicSupport

Student Services PlantOperations

InstsitutionalSupport

Research/PublicService

Transfers Financial Aid Auxiliary

FSU AVG15

Michigan Public University Spending PatternsFY2019 – Percent of General Fund Expenses

by Function of Expense

2018-2019 University Fiscal ResultsUnrestricted Net Position Comparison

(Amounts in Millions)

$24.1

$8.2

$48.9

$8.6

$10.4

$1.3

$0.2

-$124.3

$19.4

$9.9

$57.2

$7.9

$10.1

$3.1

$0.2

-$115.4

Maintenance Reserve

Plant Projects in Planning

Development

All Other

Divisional Carryover/Encum.

Auxiliary Operations

Student Loan Funds

Net Pension Obligation

FY 2019 - ($22.6M) FY 2018 - ($7.5M)

2019-20 General Fund Budget

RevenuesStateTuitionOther

Total Revenues

ExpensesCompensationOperatingFinancial Aid

Total Expenses

$56M$147M

$3M$206M

$146M$35M$25M

$206M

State27%

Tuition71%

Other2%

Revenue

Compensation71%

Operations17%

Financial Aid 12%

Expense

2019-2020 Budget includes $8 million in reductions

• Higher education budget provides increase of .5%

• Includes full funding of Indian Tuition Waiver

• Overall University operations state increase of 1.0%

• Results in a FSU increase of 2.0%

• Includes full funding of the Tuition Incentive Program

State Funding

General Fund Revenue(Amount in Millions)

$209.5

$213.4$211.1 $210.9 $210.7

$206.5

FY15 FY16 FY17 FY18 FY19 FY20 Budget

FY 2019-20 General Fund Budget Reductions

Description Positions Amount

AdministrativeClericalFacultyMaintenancePart-time WageOperating SupportStudent Assistance

Totals CompletedAssigned

Total

15.0 FTE3.0 FTE

11.0 FTE3.0 FTE

32.0 FTE

$2.4M$ .2M$1.3M$ .2M$ .3M$ .5M$ .5M

$5.4M$2.6M

$8.0M

Four-Year Summary General Fund Budget Reductions

Description Positions Amount

FY 2017FY 2018FY 2019FY 2020

4-Year Totals

24.0 FTE9.5 FTE

55.0 FTE32.0 FTE

120.5 FTE

$5.2M$3.0M$7.3M$8.0M

$23.5M

Successes

Top Performing Schools – NY TimesLargest Schools – 2,000+ Entering Students

Source: The College Dropout Crisis – David Leonhardt & Sahil Chinoy - May 23, 2019

51%

47%

52%

60%

55%

2009 2010 2011 2012 2013

Entering Cohort

Six-Year Graduation RateFull-Time FTIAC Bachelor’s Degree Seeking Students

Time to Bachelor’s Degree(FTIACS) Including Percent of Total

385

246

82

34

422

285

79

39

400

323

120

25

425

326

110

37

461

287

95

22

4 Years or Less 5 Years 6 Years 7 or More Years

FY15 FY16 FY17 FY18 FY19

51.5% 51.2% 46.1% 47.3% 53.3% 32.9% 34.5% 37.2% 36.3% 33.2% 11.0% 9.6% 13.8% 12.2% 11.0% 4.6% 4.7% 2.9% 4.1% 2.5%

Ferris State UniversityChange in Net Price

2009 to 2018

<$30k-29.4%

$30k-$48k-26.9%

$48k-$75k-17.6%

Average-7.1%

$75k-110k-7.5%

>$110k3.7%

MPU Average12.4%

Michigan Public UniversitiesAverage Change in Net Price

2009 to 2018

<$30k6.3%

$30k-$48k0.2%

$48k-$75k4.2%

Composite12.4%

$75k-110k15.9%

>$110k26.6%

-29.4%-26.9%

-17.6%

-7.1% -7.5%

3.70%

MPU Avg FSU

MPU Cost of AttendanceResident, On-Campus Student

Change 2008-09 to 2018-19

15.7%

26.6%28.0%

32.9% 33.3% 33.3%35.1%

36.3% 36.5% 36.6%

39.4% 39.5%

43.6%44.8%

46.5%

52.6%

FSU UMF CMU WMU UMA LSSU GVSU Average UMD MTU NMU OAK EMU MSU SVSU WSU

Source: IPEDS College Navigator

Average Student Debt Bachelor’s Degree Graduates with Debt

$35,720 $35,660 $35,710 $35,606$36,530

$29,450 $30,045 $30,806 $31,289 $32,158

2013-14 2014-15 2015-16 2016-17 2017-18

FSU MI 4-Yr and Above

Challenges

85,000

90,000

95,000

100,000

105,000

110,000

115,000

120,000

125,000

2,800,000

2,900,000

3,000,000

3,100,000

3,200,000

3,300,000

3,400,000

3,500,000

3,600,000

20

00

-01

20

01-

02

20

02

-03

20

03

-04

20

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20

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-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

20

10-1

1

20

11-1

2

20

12-1

3

20

13-1

4

20

14-1

5

20

15-1

6

20

16-1

7

20

17-1

8

20

18-1

9

20

19-2

0

20

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-21

20

21-

22

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-23

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-24

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-25

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-26

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-29

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-30

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-31

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31-

32

Mic

hig

an

Un

ited

Sta

tes

United States Michigan

Projected Number ofU.S. and Michigan High School Graduates

Source: WICHE – Knocking at the College Door

Percent of Michigan Residents Who Are Children vs. Senior Citizens

1960 and 2017

40%

22%

8%

17%

1960

2017

Under age 20 Over age 64

Michigan Community College Enrollment

346,890

303,761 282,533

273,232

250,610

277,589

276,195

267,047

259,979

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-180.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

EnrollmentUnemployment

Decline of 86,911 students or 25%Source: MI School Data

FSU Fall Headcount EnrollmentUniversity-Wide

14,71514,187

13,79813,250

12,472

Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019

-15.2% decline University-wide over 5 years

Fall Headcount EnrollmentBR International, Regional, Kendall College of Art and Design

486

349256

199149

2,183

1,977

1,8541,742

1,561

1,2781,173

1,029972

836

Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019

69.3% decline 28.5% decline 34.6% decline

FTIAC Students – Big Rapids

1,813 1,7661,672 1,696

1,766 1,810

Fall 2014 Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019

Fall Headcount EnrollmentBig Rapids Traditional Students

10,77410,406 10,141 9,823

9,418

Fall 2015 Fall 2016 Fall 2017 Fall 2018 Fall 2019

Change – 12.6%

FSU Student Credit Hour Enrollment

357,831 357,471343,289

331,856317,279

FY15 FY16 FY17 FY18 FY19

University-Wide

Decline from 2014-15 to 2018-19 is 40,552 SCH or 11.3%. One-year decline of 14,577 SCH or 4.4%

Michigan Public University Fall Headcount Enrollment

Percent Change from 2014 to 2019

-21.3%-20.0%

-17.9%-15.9%

-14.7%-13.5%

-12.0%

-9.7%

-7.3%

-4.2%-2.7% -2.0%

-0.8%

1.4%

10.7%

CMU EMU LSS SVS FSU UMF NMU WMU OAK GVSU WSU UMD MTU MSU UMA

2020-2021 Budget

• Until enrollment is stabilized additional budget reductions will be needed to balance declines in tuition collected.

• Budget planning for next year and beyond focuses on-

How are changes in enrollment tied to budgets?

Where can we be more efficient?

Where can we eliminate duplication and use our resources more effectively?

State Funding Challenges

• Continued push to remove higher education from the School Aid Fund

• Interest in new Performance Funding metrics

• “Free” community college

• Lack of support for higher education

• Competition for road funding

• Budgetary impasse in Lansing

Ferris Forward

AcademicsEnhancing ResourcesInstitutional Effectiveness

Pride and CommunityStudent Success14 Key Strategic Targets

Strategic Objectives

• Increase student enrollment to 14,000 by 2024.

• Increase online student credit hours by 5 percent annually

• Three new market-driven programs are added to the curriculum each year.

• Increase the overall first-year retention rate to 75 percent.

• Increase international student enrollment to 300.

• Increase minority enrollment by 3 percent annually.

Ferris Forward

Strategic Enrollment Decisions

• Transfer portal

• Increased senior search

• New sophomore and junior search

• Parent search

• New web application

• Marketing and branding campaign

Thank You

Ferris’ unique mission and strategic focus put us in a favorable place as we adjust to changing student enrollment.

Our people and programs can and will make the difference in this ultra-competitive higher education environment.

Thank you for the good work you do everyday supporting our students and advancing our University.

David L. Eisler, president