FY 2009 Budget Discussion

New Jersey City University Cabinet

April 14, 2008

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Agenda

• Financial Outlook • Enrollment Trends • Cost Per Student FTE• Pricing • Review of FY09 Budget• Budget Calendar

3

FY09 Financial Outlook

• Cuts in State Appropriations• Uncertainty in Employee Position Count• Auction Rate Securities & Debt Refinancing• Controlling Growth of Operating Costs• Controlling Capital Costs• Enrollment Trends• SCI Report on financial abuse at State universities

Enrollment Trends

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Undergraduate Enrollment History(FTE’s)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Full Time 3687 3637 3720 3828 3957

Part Time 771 773 768 795 817

Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007

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Graduate Enrollment HistoryFTE

0

200

400

600

800

1000

1200

1400

1600

1800

Converted FTE 971 1687 1555 1477 1328

NPTNJ 298 396 403 233 263

Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007

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Online Course Enrollment History

0

500

1000

1500

2000

2500

3000

Fall 2003 599 544 1143

Fall 2004 679 892 1571

Fall 2005 735 1154 1889

Fall 2006 836 1435 2271

Fall 2007 946 1661 2607

Graduate Undergraduate Total

Cost Per Student FTE

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Expense Per FTE

2005-06: Total All Expenses per FTE UG

$0

$5,000

$10,000

$15,000

$20,000

$25,000

The Collegeof New Jersey

KeanUniversity

MontclairState

University

The RichardStocktonCollege of

New Jersey

New JerseyCity

University

RamapoCollege of

New Jersey

RowanUniversity

WilliamPatersonUniversity

Source: NJASCU Expense Study: Data Integrity Report (Oct. 14, 2007)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

The Collegeof NewJersey

KeanUniversity

MontclairState

University

The RichardStocktonCollege of

New Jersey

New JerseyCity

University

RamapoCollege of

New Jersey

RowanUniversity

WilliamPatersonUniversity

Instruction per UG FTE 2005/06

10

Expense Per FTE

Source: NJASCU Expense Study: Data Integrity Report (Oct. 14, 2007)

$0

$500

$1,000

$1,500

$2,000

$2,500

The Collegeof NewJersey

KeanUniversity

MontclairState

University

The RichardStocktonCollege of

New Jersey

New JerseyCity

University

RamapoCollege of

New Jersey

RowanUniversity

WilliamPatersonUniversity

Student services per UG FTE 2005/06

2005-06 DataTCNJ

Kean

Montclair

Stockton

NJCU

RamapoRowan

Paterson

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000

Undergrad FTE

Ins

tru

cti

on

& S

tud

en

t S

erv

ice

s p

er

UG

FT

E

Economies of Scale Chart

Pricing

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Annual Tuition and Fees – FY ’08Undergraduate

 

New Jersey City University $8,155 Kean University $8,505 Montclair State University (new students) $8,895 Richard Stockton College $9,697 Ramapo College $9,885 William Paterson University $9,996 Rowan University $10,068 Rutgers University $10,614 The College of New Jersey $11,307 Average Tuition and Fees $9,680Median Tuition $9,885

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Graduate Tuition and Fees – FY ’08 (per credit)

State Colleges and Universities Comparison

Kean University $463 New Jersey City University $486 William Paterson University $542 Richard Stockton College $543 Montclair University $574 Ramapo College $651 College of New Jersey $691 Rowan University $705 Rutgers University $831 Average Tuition and Fees $610 Median Tuition and Fees $574

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Proposed Tuition and Fees – FY 2009

STATE RESIDENT OUT OF STATE

FY2008 FY2009 $ CHANGE % CHANGE FY2008 FY2009 $ CHANGE % CHANGE

UNDERGRADUATE

PART-TIME

Tuition (per credit) 197.85 211.70 13.85 7.0% 418.00 447.26 29.26 7.0%

General Service Fee 40.00 42.80 2.80 7.0% 40.00 42.80 2.80 7.0%

Student Center Fee 16.50 17.66 1.16 7.0% 16.50 17.66 1.16 7.0%

Student Activity Fee 2.00 2.14 0.14 7.0% 2.00 2.14 0.14 7.0%

Technology Fee 13.50 14.45 0.95 7.0% 13.50 14.45 0.95 7.0%

TOTAL 269.85 288.74 18.89 7.0% 490.00 524.30 34.30 7.0%

FULL-TIME (per semester)

Tuition 2,968.00 3,175.76 207.76 7.0% 6,270.00 6,708.90 438.90 7.0%

General Service Fee 600.30 642.32 42.02 7.0% 600.30 642.32 42.02 7.0%

Student Center Fee 247.60 264.93 17.33 7.0% 247.60 264.93 17.33 7.0%

Student Activity Fee 59.60 63.77 4.17 7.0% 59.60 63.77 4.17 7.0%

Technology Fee 202.10 216.25 14.15 7.0% 202.10 216.25 14.15 7.0%

TOTAL 4,077.60 4,363.03 285.43 7.0% 7,379.60 7,896.17 516.57 7.0%

GRADUATE

FULL TIME/PART-TIME

Tuition (per credit) 414.45 443.46 29.01 7.0% 764.50 818.02 53.52 7.0%

General Service Fee 40.00 42.80 2.80 7.0% 40.00 42.80 2.80 7.0%

Student Center Fee 16.50 17.66 1.16 7.0% 16.50 17.66 1.16 7.0%

Student Activity Fee 2.00 2.14 0.14 7.0% 2.00 2.14 0.14 7.0%

Technology Fee 13.50 14.45 0.95 7.0% 13.50 14.45 0.95 7.0%

TOTAL 486.45 520.50 34.05 7.0% 836.50 895.06 58.56 7.0%

Review of FY 2009 Budget

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Revenue and Expense ProjectionsIncremental Revenues & Expenses based on

Governor’s FY09 Budget Reductions

Scenario based on Governor's 2-26-2008 budget updateREVENUE CHANGESAppropriation (3,400,000) cut in direct appropriation of 10%Appropriation 1,400,000 Salary program increase

Tuition & FeesUndergraduate 2,912,918 7% increase in tuition and feesGraduate 825,952 7% increase in tuition and feesAHM 407,751 7% increase in tuitionHousing & Board 105,870 5% increase in Room and Board

Other Sources 197,834 Misc. fees, vending, bookstore, etc. 3% increaseInterest Income 89,859 projected investment interest income

Net Revenues 2,540,184

EXPENSE CHANGES

Salary Increases 2,751,945 Step increase, 3% COLA and Manager increments @ 4%Reclasses 108,448 FY09 budget request for reclassesOverload & other Sal Needs 907,242 Gap in overload budget versus actualsAdjunct & other Sal Needs 838,464 Gap in adjunct budget versus actualsScholarships & Waivers 182,000 increment based on 7% projected tuition increaseNon Salary increases 414,632 Mandatory expense increases due to contracts, maint. Etc.Allowance for Bad Debt 400,000 Student receivables allowance due to increased bad debtDebt Service (interest) (125,816) Assume payments on restructured debt will begin in FY10Capital Contingency 500,000 Capital contingencyUtiltiies 250,000 Increase due primarily to GSUB going onlineDepreciation (336,196) Due primarily to best-practice change in useful life of assetsFringe Reimbursement to State 875,000 Auxiliary fringe AccrualAllowance for Recruiting 170,400 Advertising & Fees for Human Resources position searches

Net Expenses 6,936,119

Surplus/(Gap) (4,395,935)

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Avoid passing entire cost of cuts/gap to students via tuition increase Budget gap remediation options:

Hiring freeze Vacant and temporary positions Elimination of vacant/temporary positions

Reduction in Non-Salary base budget Suspension of out of state travel Restructure/consolidate functions and departments Streamline University operations Reduced operating hours or partial closure of computer labs on campus Fifty percent cut in tech support for computer labs, testing, and

technology in classrooms Reduced operating hours and services in Congressman Frank J. Guarini

Library Fifty percent cut in funding for student assistants in the Library, resulting

in seriously diminished services       

Addressing the Budget Gap

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Adjuncts and Overload

Discounts on out of state tuition

Deferred Maintenance

Position Counts  

Areas of Major Concern

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Preliminary Budget Gap Resolution

2008 Budget

% Gap Allocation

2009Budget Gap

Allocation 2009

Proposed Reductions

2009

Remaining Gap to be

Addressed 2009Academic Affairs 9,253,376 11.62% 511,004 511,004 - College of Arts & Sciences 20,402,038 25.63% 1,126,672 1,063,872 62,800 College of Education (not incl. AHM) 5,723,358 7.19% 316,064 314,955 1,109 College of Professional Studies 6,693,363 8.41% 369,631 370,802 (1,171) Grad & Continuing Studies 1,305,900 1.64% 72,116 92,236 (20,120) Administration & Finance 20,095,078 25.24% 1,109,720 1,104,839 4,881 A Harry Moore 6,535,339 8.21% 360,904 - 360,904 Student Affairs 6,846,679 8.60% 378,097 370,271 7,826 University Advancement 2,747,510 3.45% 151,727 - 151,727 Subtotal 79,602,640 100.00% 4,395,935 3,827,979 567,956

Institutional Support 17,750,713 Fringe Benefits 21,781,000 Auxiliary Services 3,334,223 Financial Aid 18,362,729 Grants 5,613,763 President's Office 1,262,037 Grand Total 147,707,105

* 2009 Budget Gap Allocation is based on approved 2008 Budget

Progress on Budget Gap Reduction MeasuresAs of April 10, 2008

Fiscal Year 2009

•Employ an iterative process to identify cost reduction measures

•Vice Presidents collaborate to identify measures for divisions

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FY2009 Budget Calendar

• Tuition and fee hearing – April 24, 2008

• Budget mailed to finance committee – Mid May

• Board will consider tuition and fees and budget – June 23, 2008

Other Issues to be Addressed

DISCUSSION