AUBURN UNIVERSITY FY09 Budget Development and Proposed Tuition Rates

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

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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.

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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

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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

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

Unrestricted $628.0M

75%

Auxiliary$86.2M

10%

Restricted$ 125.1M

15%

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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 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

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

Base Budget$52.1M

Non-Base$ 1.6M

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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

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

Base Budget$41.2M

Non-Base$ 4.6M

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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

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

Restricted$19.0M

Unrestricted-All Base$44.6M

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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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