1

Eastern Washington University

Fiscal Year 2009 Budget

2

Overview

• Fiscal Environment

• Enrollment

• Tuition and Fees

• Operating Fee Revenue

• FY09 Operating Budget

3

Fiscal Environment

• Weakened state economy• Declining state revenue forecast• Flattening student demographics • Increased competition and capacity

4

Enrollment

5

Annualized Average FTES –FY 2003 to FY 2009 (Projected)

8,919 8,996

9,121

9,184

8,593

8,0178,150 8,228

9,073

9,1968,956

8,700

9,1269,280

7,000

7,500

8,000

8,500

9,000

9,500

10,000

2003 2004 2005 2006 2007 2008 2009

State Funded FTES Annualized Actual FTES

Academic Year

6

Percent Change in Enrollments% FTE Increase/Decrease

actual enrollments thru 2008projected enrollments 2009-2021

-0.6%

4.9%

6.4%

4.8%

4.2%

3.3%

2.9%

1.7%

0.5%

0.6%

0.7%

0.7%

0.6%

0.8%

0.6%

0.6%0.7%0.8%1.0%

-0.4%-0.4%

-0.9%

1.9%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Source: Institute for Public Policy and Economic Analysis

7

8,922

9,576

9,790

9,473

9,780

9,347

8,500

8,700

8,900

9,100

9,300

9,500

9,700

9,900

2003 2004 2005 2006 2007 2008

Total Enrollments

* Includes both State & Self-Support Enrollments

Source: HEER Reports

Academic Year

FTE

S

8

State Funded Enrollments

8,700

9,126

9,280

9,1219,195

8,956

8,600

8,800

9,000

9,200

9,400

2003 2004 2005 2006 2007 2008

Source: HEER Reports

Academic Year

FTE

S

9

State Funded Enrollments

*Source: OIRDA

CBPA911

907

1,542

CEHD 1,303

CSBS1,847

1,704

CAL 1,517

1,526

SSW 846

619

CSHE 2,640

2,357

500

1,000

1,500

2,000

2,500

3,000

2003 2004 2005 2006 2007 2008

FTE

S

Academic Year

10

Self-Support Program Enrollments

Source: HEER Reports

222

451

512

352

585

391

200

300

400

500

600

2003 2004 2005 2006 2007 2008

Academic Year

FTE

S

11

State Support Enrollment Change –(AY 2006 to AY 2008)

5.7%

-2.9%-4.7%

0.3%

13.2%

-11.8%

-20%

-10%

0%

10%

20%

CBPA CEHD CSBS CAL SSW CSHE

Percent

49.3

-55.4 -75.2

8.8

98.9

-173.8

-300

-200

-100

0

100

200

300

CBPA CEHD CSBS CAL SSW CSHE

FTES

Source: OIRDA

12

Self Support Enrollment Change –(AY 2006 to AY 2008)

-66.4%-85.5%

8.6%

60.7%

26.7%

90.2%

-100%

-50%

0%

50%

100%

CBPA CEHD CSBS CAL SSW CSHE

Percent

16.127.7 15.6 5.3

-170.4

-58.2

-300

-200

-100

0

100

200

300

CBPA CEHD CSBS CAL SSW CSHE

FTES

Source: OIRDA

13

State and Self Support Enrollment Change –(AY 2006 to AY 2008)

Percent

FTES

Source: OIRDA

7.4%

-1.4%-3.7%

0.5%

-7.4%

-14.7%-20%

-10%

0%

10%

20%

CBPA CEHD CSBS CAL SSW CSHE

65.3

-28.3-59.4

13.9

-70.0

-228.8-300

-200

-100

0

100

200

300

CBPA CEHD CSBS CAL SSW CSHE

14

Other Fiscal Impacts Surrounding Future Enrollment/Tuition Revenue

• Increased capacity in higher education system in Washington

• Increased competition in WICHE states• Impact of weakened economy• HECB master planning

15

Tuition

16

FY08 Tuition Rates

Eastern recommends a 5% tuition rate increase, including service & activity fees, for resident undergraduate and graduate students for fiscal year 2009 for approval by the Board of Trustees.

All nonresident rates increase by S&A fee only.

17

FY09 Tuition Components (Per Quarter)

CategoryOperating

FeeBuilding

FeeS&AFee

Residents

Undergraduate $1,351.15 $53.85 $162.00

Graduate $2,060.21 $50.79 $154.00

Non-Resident

Undergraduates $4,125.84 $170.16 $160.00

Graduate $5,397.79 $166.21 $152.00

Mandatory fees are assessed separately

18

CategoryCurrent Tuition

RatesFY09 Tuition

Rates

Resident Undergraduate $4,485 $4,701

Resident Graduate $6,480 $6,795

Non-Resident Undergraduate $13,350 $13,368

Non-Resident Graduate $17,133 $17,148

Student Impact Annual Tuition Rates

Non-Resident rate changes due to S&A Fee increase only.

Includes Tuition, S&A Fees, and Building Fees. Other Mandatory fees assessed separately.

$216

$315

$18

$15

19

FY09 Mandatory Fees - Annual

Category FY08 Fees FY09 Fees

Technology Fee $105.00 $105.00Transportation Fee $19.50 $19.50

Recreation Center Fee $195.00Comprehensive Health

& Wellness Fee $192.15 $202.86Total Fees $316.65 $522.36

All categories of students pay the same level of mandatory fees.

$10.71

20

Housing and Dining Rates

Category FY08 Rates FY09 RatesDouble Room/Gold Meal Plan (Fall Quarter-Annual Contract)

$2,188 $2,298

Single Room/Gold Meal Plan (Fall Quarter-Annual Contract)

$2,588 $2,698

Proposed FY09 Housing and Dining rates represent a 5% increase over FY08 rates.

$110

$110

21

Course and General Student Fees

Under I-960 Eastern was given authority to raise course fees and other student fees no greater than the fiscal growth factor of 5.57%

Eastern is increasing some of these fees based on individual justifications and fund balance in each index in accordance with this authority.

22

Eastern Cost of Attendance - RU

Resident Undergraduate FY08 FY09Tuition and Fees $4,905 $5,151

Books and Supplies 999 1,035

Subtotal $5,904 $6,186

Room and Board 6,459 6,756

Total $12,363 $12,942$579

$282

Source: EWU Financial Aid. Undergraduate Resident, not living with parent.

23

Eastern Cost of Attendance - RG

Resident Graduate FY08 FY09Tuition and Fees $6,879 $7,230Books and Supplies 999 1,035Subtotal $7,878 $8,265Room and Board 7,104 7,431Total $14,982 $15,696$714

$387

Source: EWU Financial Aid. Graduate Resident, not living with parent.

24

Cost of Attendance Comparison – Core Expenses

Resident Undergraduate

EWU WWU CWU WSU UW

Tuition and Fees

$5,151 $5,511 $5,724 $7,554 $6,794

Books and Supplies

1,035 969 924 936 1,035

Subtotal $6,186 $6,480 $6,648 $8,490 $7,829

Room and Board

6,756 7,446 8,052 8,482 8,640

Total $12,942 $13,926 $14,700 $16,972 $16,469

2008-2009

Source: EWU Financial Aid. Undergraduate Resident, not living with parent.

25

Cost of Attendance Comparison – Total Costs

Resident Undergraduate

EWU WWU CWU WSU UW

Tuition and Fees $5,151 $5,511 $5,724 $7,554 $6,794Books and Supplies 1,035 969 924 936 1,035Room and Board 6,756 7,446 8,052 8,482 8,640Transportation 1,545 1,023 1,098 1,434 396

Personal Expenses 2,163 1,950 1,941 2,108 2,265Stafford Loan fees 0 0 75 0 0

Total $16,650 $16,899 $17,814 $20,514 $19,130

2008-2009

Source: EWU Financial Aid. Undergraduate Resident, not living with parent.

26

Operating Fee Revenue

27

FY09 Operating Fee Assumptions

Waivers 18.5% Financial Aid held at FY08 LevelEWU Financial Aid 3.5%

FTES 8,970Headcount 9,131FTES/HC Conversion 1.018Enrollment Mix FY 08 Mix

Interest Income $750,000Uncollectibles 1.2%

Enrollment Assumptions

Waiver Assumptions

Policy Assumptions

Financial Aid Assumptions

28

FY09 Operating Fee Revenue

Gross Operating Fee Revenue $45,113,510

Less: Tuition Waivers -8,256,538

EWU Grant -1,391,476

Uncollectible Allowance -486,720Plus: Interest Income 750,000

Net Operating Fee Revenue FY09 $35,729,000Unallocated FY09 budget level $231,000

Estimate based on resident undergraduate and resident graduate tuition increase of 5% and 8,970 FTES

29

Recreation Center

Estimated Annual Operating Costs $1,500,000Base funding provided in FY08 -500,000Remaining needed base funds $1,000,000

Funding plan commitment : FY09 $600,000 FY10 $400,000

Recreation Center FY09 Operating Commitment $600,000

Less: FY09 Operating Fee Revenue -231,000Shortfall to be funded with 1x dollars in FY09* $369,000

ASEWU agreed to pay for the debt service on the Recreation Center Facility. The university agreed to provide funding for ongoing operating costs.

Annual operating costs are estimated at $1.5 million.*Recreation Center operating commitment shortfall will need to be base funded in FY10

30

Operating Budget FY09

31

FY09 Salary Increases

• Faculty Increase – per contract– 4.2% salary increase effective September 1, 2008*

• Exempt increase – per budget bill– 2.0% average increase effective September 1, 2008

• Classified increase - per contract– 2.0% salary increase effective on July 1, 2008

*Communication Disorders faculty salary increases effective August 2008 per memorandum of agreement.

32

2008 Supplemental Session Adjustments

FY09 State Funds

New State Allocations:Health Care Delivery System Study $62,000Northwest Autism Center 100,000

$162,000

State Reduction:Health Benefit rate reduction – no impact to EWU

(from $732 to $561 per month)

33

FY09 Operating Budget

34

State Funding and Operating Fees

Ledger 1FY09

Instruction $45,358,183Research 304,053Public Service 870,672Academic Support 6,868,183Libraries 4,849,482Student Services 10,943,758Institutional Support 15,093,670

Plant Operations & Maintenance 12,416,767

Total $96,704,768

35

Local Dedicated Funds

Ledger 2

The dedicated local fund provides educational programs which support the mission of the university but that are not directly funded by the Washington State Legislature.

Programs in this fund include Running Start, Summer Session, International Field Studies, Study Abroad, University Press, course fees and other continuing education courses.

Revenues $25,825,922

Expenditures 29,793,735

Fund Balance Draw $3,967,813

Expenditures exceed revenues due to the use of fund balances in the accounts.

36

Local Dedicated fund budgets - by Executive Level

FY09 Revenue Budget

FY09 Expenditure

Budget

Change in Fund balance

President $0 $234,269 -234,269

Academic Affairs 17,195,515 19,235,095 -2,039,580

Business & Finance 5,741,596 6,886,121 -1,144,525

Student Affairs 2,861,067 3,408,253 -547,186

Information Technology 27,744 29,997 -2,253

University Total $25,825,922 $29,793,735 -3,967,813

Fund balance draw due to investment in equipment, enrollment support, Spokane rental costs, and other planned programmatic improvements.

37

Internal Service Funds

Ledger 3

The service activities or internal revolving funds provide goods and services for other university functions.

Service funds include stores operations, printing and duplicating, workforce construction, telecommunication services, and motor pool. These funds must fund asset renewal and replacement.

Revenues/Recharges $ 5,477,710Expenditures 5,721,207

Less: Deductions 10,000Fund Balance Draw $253,497

Expenditures exceed revenues due to the use of fund balances in the accounts.

38

Service Fund Detail

Revenues/ Recharges

Expenditures/ Deductions

Impact on Fund

Balance

Stores $140,000 $143,176 -$3,176

Printing 720,000 719,195 805

Workforce Construction 3,130,000 3,463,317 -333,317

Telecommunications 963,710 943,710 20,000

Motor Pool 524,000 461,809 62,191

Service Fund total $5,477,710 $5,731,207 -$253,497

Workforce construction fund balance draw due to planned larger-than-standard maintenance upgrades and replacements.

39

ASEWU Funds

This enterprise includes the operation of student government and provides funds for concerts, social activities, campus recreation, commuting services, student publications such as The Easterner, clubs and organizations and other associated student sponsored activities.

Fund deduction is for debt service. Fund addition is from the PUB.

Revenues $ 2,618,909

Additions 90,000

Expenditures 2,279,909

Less debt service 579,000

Fund Balance Draw $150,000

40

Recreation Center –

The newly opened recreation center provides a central location for health and wellness activities for students, staff and community members. Fund deduction is for debt service.

Revenues are based on 8,970 students * $65 per quarter

Revenues $ 1,750,000Debt service 1,677,368Debt Reserve $72,632

User Fee Revenue $66,000User Fee Expenditures 66,000

41

Intercollegiate Athletics

The intercollegiate athletics fund includes program support costs, travel, and scholarships granted to student participants based on their athletic ability. Fund deductions are for stadium furnishings and video equipment. Fund addition is interest income.

Self SupportS&A Fee Revenue $ 1,484,853Other Revenues 2,409,000

Additions 163,300Expenditures 4,036,859

Less: Deductions 20,294Projected Net Income $0

State Support $3,137,040

42

Bookstore

The bookstore serves the students with textbooks, supplies, computer hardware and accessories, gift items and EWU merchandise.

Revenues $ 6,603,000Expenditures 6,518,873Projected Net Income $84,127

43

Pence Union Building

The PUB provides a central gathering place that serves as the hub of college life for the university. It provides for services, conveniences, and amenities the members of the college family need in their daily lives on campus and for getting to know and understand each other through informal association outside the classroom.

Fund deductions are for ASEWU transfer and renewal & replacement.Fund balance draw due to staffing and utility cost increases.

Revenues $ 1,057,049Expenditures 1,012,751

Less: Deductions 146,400Fund Balance Draw $102,102

Expenditures exceed revenues due to the use of fund balances in the accounts.

44

Parking

Parking services provides for the parking on campus, and promotes safety and customer services to faculty, staff, students and visitors.

Revenues $ 681,000Expenditures 614,705Projected Net Income $66,295

45

Housing and Dining

The housing and dining program provides room, board and event planning services for students, staff and visitors of the university. It provides a safe, pleasant and well-maintained environment that supports the educational, personal and social growth of all residents.

Fund deductions are for debt service and capital facilities improvements of $350,000.

Revenues $ 15,053,813Expenditures 13,422,615

Less: Deductions 1,465,000

Projected Net Income $166,198

46

Scholarships and Fellowships

2005-06 2006-07 2007-08 2008-09Federal Grants (includes Pell grant and the Supplemental

Educational Opportunity Grant –SEOG)

$8,788,317 $8,672,748 $9,200,000 $9,500,000

State Grants (includes State Need Grant) 8,324,809 10,007,819 9,970,000 10,000,000

EWU Grants(includes EWU grant, endowed

scholarships and license plate)1,338,687 1,442,906 1,425,000 1,450,000

Private Grants (foundation endowed scholarships) 553,413 576,976 600,000 625,000

Total $19,005,226 $20,700,449 $21,195,000 $21,575,000

Scholarships and Fellowships include funds for student aid programs, some federal and state aid programs and privately endowed scholarships.

47

Sponsored Programs (Grants & Contracts)

2005-06 2006-07 2007-08 2008-09

Federal $5,561,850 $5,471,371 $4,787,000 $4,675,000

State 4,853,720 5,927,820 5,446,000 5,318,000

Local 2,905,958 2,998,215 2,360,000 2,788,000

Private 3,232,679 2,386,064 2,616,000 2,375,000

Total $16,554,207 $16,783,470 $15,209,000 $15,156,000

Sponsored Programs include research grants, state work study funds, local grants, distinguished professorships.

48

Operating Budget Expenditure Summary

Educational and GeneralState and Tuition $96,704,768

Dedicated Local Funds, Service funds 35,524,942

Total Educational and General $132,229,710Auxiliary Enterprises (including transfers) 31,389,774

Scholarships and Fellowships 21,575,000

Sponsored Programs 15,156,000

FY09 Annual Operating Budget $200,800,484

49

Recommended Action

It is recommended that the Board of Trustees approve the operating budget of $200,800,484 for fiscal year 2009, which begins July 1, 2008 and ends June 30, 2009.

50

2007-09 Capital Budget Expenditure Summary

State Building Construction (Fund 057) $33,321,000

EWU Capital Projects (Fund 061) 14,000,000

Education Construction (Fund 253) 6,217,000

Gardner Evans (Fund 357) 880,000

FY2008 Local Capital Projects $505,000

FY2009 Local Capital Projects $350,000

Total 2007-09 Capital Budget $55,273,000

51

Recommended Action

It is recommended that the Board of Trustees approve the supplemental local capital budget of $350,000 for FY09, which begins July 1, 2008 and ends June 30, 2009.