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UNIVERSITY FINANCIAL OUTLOOK
Greg Alt
Interim Vice President for Finance and Planning
Academic Leadership Retreat – 8/7/15
FORECAST
• Partly Cloudy – Intervals of Clouds and Sunshine– Chance of Thunderstorms
Academic Leadership Retreat – 8/7/15
FIRST THE SUNSHINE…
Academic Leadership Retreat – 8/7/15
FINANCIAL STABILITY
Strong Balance Sheet– Cash to pay obligations– Low Debt Profile
Academic Leadership Retreat – 8/7/15
University of Ill
inois
Illinois S
tate University
Southern Illinois U
niversity
Northern Illin
ois Universit
y
Western Illinois U
niversity
Eastern Illinois U
niversity
0%
5%
10%
15%
20%
25%
30%
35%
16.17%
18.78%
24.36%26.08%
30.50%
33.82%
Illinois Public Universities Comparison of Debt RatioFY 2013
Debt Ratio
Note: Compares university debt as a percent of total assets
Academic Leadership Retreat – 8/7/15
Illinois S
tate University
Southern Illinois U
niversity
Western Illinois U
niversity
University of Ill
inois
Eastern Illinois U
niversity
Northern Illin
ois Universit
y
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
2.78% 2.91%
3.55% 3.61% 3.67%
4.86%
Illinois Public Universities Comparison of Debt Burden Ratio FY 2013
Debt Burden Ratio
Note: Compares debt service as percent of total expenditures
Academic Leadership Retreat – 8/7/15
CREDIT RATING
S&P A+ and Moody’s A3
Second Highest of Illinois Publics
S&P July 30th Review
Academic Leadership Retreat – 8/7/15
STABLE ENROLLMENT REVENUE
Academic Leadership Retreat – 8/7/15
Fall 2002 Fall 2003 Fall 2004 Fall 2005 Fall 2006 Fall 2007 Fall 2008 Fall 2009 Fall 2010 Fall 2011 Fall 2012 Fall 2013 Fall 2014
Undergradu-ate
18352 18097 17866 17827 17842 17655 17949 18344 18254 18535 18207 17648 18012
Gradu-ate
2623 2608 2553 2438 2419 2449 2501 2512 2508 2545 2295 2276 2259
To-tal
21183 20860 20757 20653 20521 20274 20799 21184 21134 21310 20706 20272 20615
2500
7500
12500
17500
22500
Total Headcount forFall 2002 - Fall 2014
Undergraduate Graduate Total
Note: Total includes off-campus students
Academic Leadership Retreat – 8/7/15
THERE ARE CLOUDS…
Academic Leadership Retreat – 8/7/15
DECLINING REVENUE
Appropriation Reductions
- Down 21%
- More Cuts Coming
Modest to No Tuition Increases
Academic Leadership Retreat – 8/7/15
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 20160.0
50,000.0
100,000.0
150,000.0
200,000.0
250,000.0
300,000.0
Tuition and Appropriations FY 2002 – FY 2016
State Appropriations UIF Total Unrestricted
Academic Leadership Retreat – 8/7/15
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 20160
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
4%
9%
13%
16%
13%
14%
9%
14%
8%
9%
7%
4%
2% 2%
3%
Percent Increase in Tuition FY 2002 – FY 2016
Academic Leadership Retreat – 8/7/15
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
State Appropriations and University Income Fund (Tuition Revenue) as a Percent of ISU's Operating Budget
State Appropriations
University Income Fund
Fiscal Year
% o
f T
otal
Op
erat
ing
Bu
dge
t
Academic Leadership Retreat – 8/7/15
STATE PERCEPTION
Tuition increases excessive
Staffing levels too high
Universities have too much money
Academic Leadership Retreat – 8/7/15
THREATS Tuition Caps
Income Fund Control
Local Funds Sweep
Academic Leadership Retreat – 8/7/15
QUESTIONS?
