Embed Size (px)
Citation preview
Governing Board Briefing Materials
March 23, 2017
FTE enrollment and headcount are showing slight downward trends across Tennessee. TTU has been able to keep FTEs steady while headcount has declined
• Source: THEC Fact Book 2015-2016
Enrollment
11,748 11,583 11,200 11,498 10,952
9,527 9,636 9,797 9,983 9,569
-‐
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2011 2012 2013 2014 2015
Tennessee Tech Fall Enrollment (2011-2015)
Headcount Enrollment FTEAverage Enrollment of 4-‐Year TN State Schools Average Headcount of 4-‐Year TN State Schools
Average Headcount, all TN 4-Yr Schools
Average FTE Enrollment, all TN 4-Yr Schools
Compared to state peer institutions, Tennessee Tech has the lowest resident “tuition and fees”
Tuition and Fees
Average: $4,602
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
U. of Tennessee Knoxville
U. of Memphis U. of Tennessee Chattanooga
East Tennessee State Middle Tennessee State
Tennessee Tech
State Peer Resident Tuition and Fees FY16/17 (12 Credit Semester Assumed)
Resident Tuition Resident Fees Avg. Res T+F
2.4% 3.6%
Source: 2016-‐17 Data from Institution Websites
* CAGR = Compound annual growth rate (reflects FY11/12 to FY15/16 for each school)
Fiscal year appropriations at TTU are lower, and are growing more slowly, than at most peers since the enactment of the Complete College Tennessee Act of 2010
State Appropriations
• Source: THEC Revised Budgets 2016-17; Commonfund Higher Education Price Index
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
$200,000,000
U. of Tennessee Knoxville
U. of Memphis Middle Tennessee State East Tennessee State U. of Tennessee Chattanooga
Tennessee Tech
Total Appropriations FY11/12 to FY16/17 (in Constant 2016 Dollars)
FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17
CAGR = 1.6%CAGR = 2.2%
CAGR = 2.5%CAGR = 4.5% CAGR = 1.9%
The implementation of CCTA in 2010 impacted the allocation of state appropriations
* CAGR = Compound annual growth rate (reflects FY11/12 to FY16/17 for each school)
Even on a per student FTE basis, state appropriations were the lowest among peer institutions in FY15/16
State Appropriations Per Student FTE
$7,516
$5,905
$4,676 $4,216 $4,137 $4,107
Average: $5,093
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
U. of Tennessee Knoxville U. of Memphis Middle Tennessee State U. of Tennessee Chatanooga
East Tennessee State Tennessee Tech
State Appropriations Per Student FTE Enrollment (FY15/16)
• Source: THEC Revised Budgets 2016-17; Commonfund Higher Education Price Index; THEC Fact Book 2015-2016
Retention rates at Tennessee Tech have remained steady in the past three years and are within the range of other Tennessee peer institutions
Retention
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
U. of Tennessee Knoxville U. of Memphis Tennessee Tech Middle Tennessee State U. of Tennessee Chattanooga
East Tennessee State
Retention Rates (Fall-to-Fall, First-time Full-time Freshmen, FY12/13 - FY14/15)
FY 12/13 FY 13/14 FY 14/15
• Source: THEC Fact Book (2015-2016, 2014-2015, 2013-2014)
Tennessee Tech’s six-year graduation rate is second highest among state peer institutions, after the University of Tennessee Knoxville
Graduation Rate
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
U. of Tennessee Knoxville Tennessee Tech U. of Tennessee Chattanooga
Middle Tennessee State East Tennessee State U. of Memphis
Six-Year Graduation Rate (FY13/14 - FY15/16)
FY 13/14 FY 14/15 FY 15/16
• Source: THEC 2017-18 Funding Formula Data
Student to faculty ratios at Tennessee Tech have been consistently decreasing over the past five years
Student to Faculty Ratio
2019
1817 17
14
0
5
10
15
20
25
U. of Tennessee Chattanooga
Tennessee Tech Middle Tennessee State East Tennessee State U. of Tennessee Knoxville U. of Memphis
Student to Faculty Ratio (Fall 2011-2015)
2011 2012 2013 2014 2015
• Source: IPEDS Data
Financial Health
March 23, 2017
Audited financial statements• Annual audits are conducted by State of Tennessee,
Division of State Audit, Financial and Compliance Section• Tennessee Tech received an unmodified opinion for FY2016• Audit reports can be found at:
• http://www.comptroller.tn.gov/sa/AuditReportCategories.asp
Measuring and monitoring financial healthStrategic Risk Question Related Ratio
1. Overall – What is the institution’s overall financial health?
Composite Financial Index
2. Liquidity – Does the institution have sufficient liquidity in the near and medium term?
Primary reserve ratio
3. Viability – Is debt managed strategically? Viability ratio
4. Return on Assets – Does the institution have adequate return on all assets?
Return on net assets ratio
5. Net Operating Revenues – Is the institution generating adequate resources in excess of its operational costs?
Net operating revenues ratio
Composite Financial Index• Four ratios weighted and scored on a scale to create a single score
of financial health• Primary reserve ratio• Viability ratio• Return on new assets ratio• Net operating revenues ratio
• Single score allows weakness in one ratio to be offset by strength in another ratio
• Expected value is a national comparison• Trend is over 10 years
What is Tennessee Tech’s overall financial health?
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016TTU 4.18 4.61 3.04 4.61 5.10 3.35 4.14 4.43 4.5 3.42Expected 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00Watch 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
0
1
2
3
4
5
6
SCORE
Composite Financial Index (CFI)
TTU Expected Watch
Does Tennessee Tech have sufficient liquidity in the near and medium term?
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016TTU 0.13 0.17 0.20 0.35 0.46 0.49 0.53 0.55 0.51 0.48Expected 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40
0
0.1
0.2
0.3
0.4
0.5
0.6SCORE
Primary Reserve Ratio (Liquidity)
TTU Expected
Is debt managed strategically?
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016TTU 1.02 1.46 1.27 1.28 1.52 1.67 1.72 1.81 1.46 1.36Expected 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
SCORE
Viability Ratio
TTU Expected
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016TTU 28.07 27.12 13.51 18.93 18.49 4.71 8.62 9.67 12.74 8.09Expected * 5.80 8.00 5.30 3.90 5.30 4.70 4.60 6.00 5.10 4.80
0
5
10
15
20
25
30
35
40
SCORE
Return on Net Assets Ratio
Does Tennessee Tech have adequate return on all assets?
Is Tennessee Tech generating adequate resources in excess of its operational costs?
FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016TTU 2.16 3.08 1.22 9.51 10.02 2.34 5.60 6.56 8.47 2.71Expected * 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
0
2
4
6
8
10
12
14
16
18
20
SCORE
Net Operating Revenues Ratio
TTU Expected *
State Budget Cuts / Recession
Maintenance Of Effort (MOE) /
Stimulus FundingEnd of MOE -‐ State Funding dropped
from $53M to $39M
In-‐State and Out-‐of-‐State Enrollment
Increases Declining Enrollment
Current financial state of the university• October Revised Budget
• Recurring operating revenues supported recurring operating expenses• A 2% reserved fund balance was budgeted
• May Estimated Budget• Reserves will need to be tapped to cover an unanticipated overage in
scholarship award – approximately $2 million in FY 2017• Permanent budget reductions of $3.4 million to be effective with FY 2018
have been implemented to rebalance the budget• A 2% fund balance reserve will be budgeted
• May Estimated (FY2017) and July Proposed (FY2018) will be presented to the Board for approval at the next meeting
Challenges going forward• Enrollment
• Still working through earlier declines• Level of discounting necessary to be competitive
• Outcomes based formula• Continue to lose funding under Outcomes Formula Adjustment
• Funds reallocated based on percentage improvement compared to others• Reserves
• Reserves earmarked for the laboratory science building and new campus recreation center will be expended with start of construction
• Adding additional resources to reserves will be difficult in near term
Proposed Non-Mandatory Fees
March 23, 2017
Specialized Academic Course Fee Comparison to Similar Fees
Program TTU UTK UTM UTC ETSU MTSU UM TSU
Ag/HE $20 $20-‐$50 $20 $40 $20 $50 $30
Arts & Science* $25 $20-‐$35 $7.50 $15-‐$50 $30
Business** $30-‐$40 $97 $42 $56 $25 $35 $35 $25
Music*** $20 $200 $150 $325 $160-‐$320 $100
Art $20 $25 $30 $20 $30
Education $15 $25-‐$30 $25 $25 $25 $25
Engineering $65 $63 $15-‐$25 $56 $20 $20 $55 $35
Nursing (UG) $55 $130 $56 $40 $35 $30 $25
Nursing DPN $60
*Chemistry, Biology, Earth Sciences, Physics
**Current fee is $25 – proposed $5 increase each year for 3 years
***Applied music course fees used for comparison
Proposed Miscellaneous Course Fees
Program TTU APSU MTSU ETSU TNeCampusBusiness MBA Graduate Onlinefee*#
$170-‐$210
Master’s of Professional Studies $45 $50 $15 $35 $104-‐$125Professional Science Master’s $45 $50 $15 $35 $104-‐$125Physical Education – golf fee** $150*Current fee is $150 – proposed increase is $20 each year for 3 years#Total cost to students is similar to other schools offering MBA**Students currently pay $100 to outside vendor
Zoned Parking Permit Rates
Second year of 10-year parking plan
Revenues used to:• Construct new on-ground parking• Provide intra-campus shuttle service• Upgrade parking and traffic routing
Zone Current Increase New Rate
Inner Campus $205/yr. $15/yr. $220/yr.
Resident $205/yr. $15/yr. $220/yr.
Tech Village –Inner campus
access $77.50/yr. $7.50/yr. $85/yr.
Outer Campus $143/yr. $9/yr. $152/yr.Note: Student parking permit rates are reduced by $50/yr. because of the campus access fee, which is applied to student parking permits only.
Auxiliary Enterprise – Housing
Revenues must:• Cover costs of operations• Service debt• Maintain facilities
• Residence Halls – 3% to 5% range• Tech Village – average 5% increase• Housing Contract Pre-payment – $200• Credited against first period rental• Reduce number of late contract cancellations
