HUMBOLDT

STATE

UNIVERSIT

Y

BUDGET & FA

CILITI

ES

OVERVIEW

F EB

RU

AR

Y 1

1,

20

14

CURRENT ECONOMIC ENVIRONMENT

FEDERAL• Survived sequestration• Uptick in housing market• Slight economic improvement

STATE - A new budget horizon?• CA has the 9th largest economy in the world with

GDP of $2 trillion• First time in 6 years State budget had a surplus• Proposition 30 has provided steady state funding

for education

GOVERNOR’S 2014-15 BUDGET PROPOSAL

Governor promised four years steady funding 5%, 5%, 4%, 4%

• CSU General Fund increase of 5%: $142.2 million

• Assumes no tuition increases through 2016-17

• Requires CSU to meet performance standards

• Proposes to fold debt service into the General Fund

06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/146000

6500

7000

7500

8000

8500

Headcount and FTE Trends

Fall HCFall FTESpring HCSpring FTE

Academic Year

# o

f stu

dents

ENROLLMENT UPDATE

• Early indications are Spring will not make up for Fall shortfall

• Spring Enrollment Assumptions• Budget: FTES drop off from Fall to Spring: -5.04% (3 year

average)• Actual: Spring will not be final until census (Feb. 17)

Enrollment Fall 2013   Spring 2014Update

BudgetActual

sDiff.

 Budget

Actual as of 2/10

Diff.

Resident FTES 7,181 7,173 -8   6,819 6,845 +26WUE FTES 462 409 -53   439 365 -74Non-Resident FTES

202 189-13  

192 181 -11

Total FTES 7,845 7,772 -73   7,450 7,391 -59Headcount 8,363 8,293 -70   7,777 7,820 +43

2013-14: REVENUE HIGHLIGHTS (JULY-DECEMBER)

• % of revenue collected: 72% (Down from 75% in 2012-13)

• Excluding state appropriation: 93% (Slightly down from 2012-13: 94%)

• Fall tuition revenue low by ~$360,000 (Over $100k in refunds/waivers since Q1 update)

• Spring tuition projected shortfall: $50,000-$100,000

• Shortfall due to decrease in WUE and Non-Resident students

MULTI-YEAR ACTUALS COMPARISON(JULY-DECEMBER)

2010-11 2011-12 2012-13 2013-140

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

$66,325,707.7$73,854,118.1

$80,659,187.6 $83,183,186.0

Total Revenue

MULTI-YEAR ACTUALS COMPARISON(JULY-DECEMBER)

2010-11 2011-12 2012-13 2013-140

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

$32,258,705.7

$41,713,224.0$42,511,467.7$42,885,866.1

$2,173,417.6$1,996,368.8$2,017,935.7$1,779,206.6

Tuition Revenue

State Tuition Fee Non-Resident

2010-11 2011-12 2012-13 2013-140

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

$26,908,000.0$25,482,000.0

$31,200,000.0$32,703,474.0

State Appropriation

MULTI-YEAR ACTUALS COMPARISON(JULY-DECEMBER)

2010-11 2011-12 2012-13 2013-1448,000,000

50,000,000

52,000,000

54,000,000

56,000,000

58,000,000

60,000,000

62,000,000

$53,113,109.7

$58,073,427.8

$59,212,055.7

$60,424,612.3

Total Expenditures

MULTI-YEAR ACTUALS COMPARISON(JULY-DECEMBER)

• Salaries and Benefits = 82% of Original Budget (excluding financial aid)

Salaries(49.5% of budget spent)

Benefits(49.4% of budget spent)

2010-11

2011-12

2012-13

2013-14

0.0

5,000,000.0

10,000,000.0

15,000,000.0

20,000,000.0

25,000,000.0

30,000,000.0

35,000,000.0

$27,387,453.8$28,272,881.1$28,706,055.0$29,054,109.5

2010-11 2011-12 2012-13 2013-140.0

5,000,000.0

10,000,000.0

15,000,000.0

20,000,000.0

25,000,000.0

30,000,000.0

35,000,000.0

$11,423,641.9$11,677,642.4$12,571,415.9$13,547,121.5

MULTI-YEAR ACTUALS COMPARISON(JULY-DECEMBER)

Financial Aid (51% of budget

spent)

Operating Expenses(41% of budget spent)

2010-11 2011-12 2012-13 2013-140.0

2,000,000.0

4,000,000.0

6,000,000.0

8,000,000.0

10,000,000.0

12,000,000.0

$5,945,178.0

$7,686,773.0$7,571,932.7$7,023,881.0

2010-11 2011-12 2012-13 2013-140.0

2,000,000.0

4,000,000.0

6,000,000.0

8,000,000.0

10,000,000.0

12,000,000.0

$8,356,836.0

$10,436,131.2$10,362,652.1$10,799,500.4

2014-15 BUDGET PLANNINGBudget Planning Summary - DRAFT 2014-15 2015-16 2016-17

Beginning Fund Balance 7,628,699 7,379,903 8,226,521

Revenue Budget Estimate 118,725,642 122,790,642 126,990,642

Base Expenditure Estimate* 118,569,838 121,643,464 123,542,994

Base Budget Surplus/(Deficit)

155,804 1,147,178 3,447,648

One-Time Initiatives* 404,600 300,560 300,560

Net Budget Surplus -248,796 846,618 3,147,088

Ending Fund Balance 7,379,903 8,226,521 11,373,609

Funding Pool @ 5% Fund Bal.* 1,451,411 2,144,348 5,196,459

Funding Pool @ 4% Fund Bal.* 2,637,109 3,360,782 6,431,889

*Base expenditure budget and one-time initiatives only include enrollment growth funding. Additional budget allocations to be decided upon during URPC budget request evaluation process in February/March.

Introduced a Resource Request Process for 2014-15 Aligns resource allocations with campus priorities Provides transparency and accountability Leads to continuous improvements

Used the PREP Planning Tool for collecting all URPC requests Becomes a data repository for resource requests Can align university/division/college/department

planning Requests include measurable outcomes and follow up

reporting

UNIVERSITY RESOURCES & PLANNING COMMITTEE

2014-15 PROCESS

University Level Review and Approval

Division Level Review and Approval

MBU Level Review and Approval

Department Level Resource Requests

MBU: Major Budget Unit

20 proposals received$3.9M in requests

$2.1M in base budget requests $1.8M in one-time requests

Proposals reviewed in FebruaryURPC is evaluating budget requests using agreed

criteria Supports HSU’s priorities Benefits of the request Opportunity costs Implementation/Funding Considerations

URPC will determine funding available for 14-15 and beyond

URPC PROPOSALS

URPC INTERACTIVE SCENARIO PLANNING

HSU Budget Planning Sheet - DRAFT

Revised February 7, 2014

2014-15Projection

2015-16Projection

2016-17Projection

2017-18Projection

Beginning Fund Balance 7,628,699 7,379,903 8,226,521 11,373,609

TOTAL Operating Fund Revenue Estimate 118,725,642 122,790,642 126,990,642 131,349,642

Enrollment Growth Model Base Funding 358,496 356,626 511,530 382,443

Enrollment Growth Funding from CSU 768,000 500,000 500,000 500,000

Base Initiatives

TOTAL Base Operating Fund Expense Estimate 118,569,838 121,643,464 123,542,994 126,181,437

Net Base Budget Surplus / (Deficit) 155,804 1,147,178 3,447,648 5,168,205

One-Time Adjustments

Enrollment Growth Model One Time Funding 404,600 300,560 300,560 300,560

One-Time Initiatives

TOTAL Operating Fund Expense Estimate 118,974,438 121,944,024 123,843,554 126,481,997

Net Budget Surplus / (Deficit) (248,796) 846,618 3,147,088 4,867,645

Ending Fund Balance 7,379,903 8,226,521 11,373,609 16,241,254

(as a % of expenditures) 6.2% 6.8% 9.2% 12.9%

Ending Fund Balance less 5% Level 1,451,411 2,144,348 5,196,459 9,932,182

Ending Fund Balance less 4% Level 2,637,109 3,360,782 6,431,889 11,193,997

Entire program is in the process of being re-designedCSU seeking legislative approval to manage capital

Allows system to re-finance existing debt Gives authority to issue new debt up to 24% of operating fund

Encouraged by this progress but: Will likely take much longer to finalize than anticipated – don’t

anticipate funding in 2014-15 Will require rethinking how we prioritize projects

Priority focus will be on: Seismic Deferred maintenance Infrastructure Accessibility

When funded, HSU will likely receive between $7M-$10M

CSU FACILITIES FUNDING

In Fall 2012, Facilities Working Group developed a process to collect, review and recommend campus-based projects.

Defined Campus-Based Projects Repair, improve or change existing physical campus

with minimum cost of $5K and maximum cost of $610K. Does not apply to major capital projects Does not apply to Chancellor’s Offi ce grant funded

projects Does not apply to non-state or emergency repair/safety

projects.After initial ranking, projects were reviewed as a

whole for long-term strategic planning

FACILITIES WORKING GROUP

33 project proposals received$3.7M in requests of which $872K provided by

other sourcesProjects grouped into 3 categories

Deferred Maintenance Classrooms & Teaching Labs Programmatic

Proposals Reviewed Assumed $750K available for Projects

$250K- CO Refund on Bond Refinance $500K- Facility Rental Trust

CAMPUS-BASED PROJECT PROPOSALS

SPRING 2014 PROCESS AND NEXT STEPS

URPC evaluates budget requests and develops 2014-15 budget recommendation (February/March)

URPC provides final recommendation to President (March)

President reviews and approves 2014-15 budget (April)

COMMENTS

QUESTIONS?

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!