Skip to main content
Ask A Librarian

Scholarly Publishing and Libraries

Current information on scholarly communication and issues impacting library collections and budget constraints

Campus Budget Conversation Presentation

Campus Budget Conversation Slideshow

Strategy & Budget Campus Conversation, September 20, 2016

Strategy & Budget Campus Conversation, September 20, 2016

Strategy & Budget

Campus Conversation

September 20, 2016

Vision for West Virginia University

Vision for West Virginia University

Strategic Pillars

Strategic Pillars

Strategic Pillars

  1. Education
  2. Healthcare
  3. Prosperity

Priorities within education

Priorities within education

1. Increase enrollment

  • Online Programming
  • Instate/PROMISE Scholars Recruitment
  • Regional Recruitment (Big 12 footprint)
  • International Recruitment
  • Transfers
  • Summer Camps

Priorities within education

Priorities within education

Priorities within education

2. Increase retention

  • Project 168
  • Student Success Collaborative
  • Advising
  • Student Services
  • Integrated College-based Recruitment/Retention Programs
  • Advanced Teaching Support
  • (Teaching learning Commons)

 

3. Improve K-12 education

  • Center for STEM Education (UTeach)
  • WV Public Education Collaborative
  • ACCESS
  • Extension (4-H camps, Energy Express, etc.)
  • College Camps

Priorities within healthcare

1. Transitional & clinical care

  • WVU Medicine
  • Cardiac Care
  • Cancer Care
  • Critical Care
  • Neurosciences
  • Children's & Women's

2. Address state's health needs

  • Treatment for Addiction / Mental Health
  • Elder Health Care
  • Obesity

3. Health and wellness

Priorities within PROSPERITY

Priorities within PROSPERITY

Priorities within PROSPERITY

3. TRANSFORM WEST VIRGINIA ECONOMY

  • Leverage Internal Expertise with External Resources
  • Partnerships with Federal Government Agencies, NGOs and Businesses
  • Leverage Entrepreneurial Activities
  • State and Community Partnerships
  • Business Engagement
  • Research-Based Solutions for State Challenges

Priorities within PROSPERITY

Priorities within PROSPERITY

Priorities within PROSPERITY

1. CREATE ONE WVU

  • Culture of Prosperity
  • Align Partnerships
  • Transformation Teams

2. R1 STATUS

  • Research Priorities
  • Faculty Research Productivity
  • Research Support
  • Institutes & Centers
  • Doctoral Productivity

Snapshot: STRATEGIC PRIORITIES

Snapshot: STRATEGIC PRIORITIES

Snapshot: STRATEGIC PRIORITIES

EDUCATION

  • Recruitment
  • Retention
  • K-12 Education

HEALTHCARE

  • Translational & Clinical Care
  • Address State’s Health Needs
  • Health & Wellness

PROSPERITY

  • Create One WVU
  • R1 Status
  • Transform WV Economy

BUDGET OVERVIEW

BUDGET OVERVIEW

Sources & Ownership of FY16

Sources of Funding

  • Tuition and Fees
    • $396 m / 35%
  • Grants / Contracts
    • $327 m / 29%
  • State Appropriations
    • $188 m / 29%
  • Auxiliaries
    • $152 m / 13%
  • Other Revenues
    • $64 m / 6%
  • Other Appropriations
    • $9.5 m / 1%

Ownership of Funding

  • Centrally Allocated Funds
    • $493 m / 43%
  • Grants / Contracts
    • $327.31 m / 29%
  • Non-Centrally Allocated Funds
    • $318 m / 23%

Total Budget = $1 billion

BUDGET OVERVIEW

BUDGET OVERVIEW

2016 Budgeted Use of Funds

  • Debt Service
    • $34 m 3%
  • Supplies, Services and Other Expenses 
    • $224 m 21%
  • Depreciation and Amortization
    •  $82 m 8%
  • Scholarships and Fellowships
    • $37.7 m 5%
  • Utilities 
    • $31.7 m 3%
  • Benefits 
    • $149 m 14%
  • Salaries and Wages 
    • $478 m 46%

THE SITUATION

THE SITUATION

By the end of Fiscal Year 2017, we have to reduce our spending by $27 million. At the end of Fiscal Year 2020, we have to reduce our spending by an additional $18 million, for a total reduction of spending of $45 million, annually.

HOW DID WE GET HERE?

HOW DID WE GET HERE?

1. DECLINING STATE SUPPORT

  • Lost $30 million in base funding from the state

2. ENROLLMENT & PRICING PRESSURES

  • Competition, Pricing & Enrollment Challenges
  • Tuition Affordability

Increased Tuition Discounting/ Scholarship

3. INCREASING OPERATING COSTS

  • State Obligations (i.e., PEIA, wvOASIS system)
  • Talent, Fringes, Supplies & Infrastructure

Where do we go from here?

Where do we go from here?

Where do we go from here?

INVESTING IN PRIORITIES

  • Research
  • Programs
  • Talent
  • Enrollment
  • Infrastructure

MAINTAIN STRATEGIC FINANCIAL GOALS

  • Positive Adjusted Operating Margin & Preserve Cash Position
  • Maintain Bond Rating
  • Continue Strategic Investments for Future Growth

TRANSFORMATION TEAMS

  • 12 teams looking at how the University can reduce expenses and generate revenue

 

Impact of FY 2016 Budget Activities on Future Years

Impact of FY 2016 Budget Activities on Future Years

Impact of FY 2016 Budget Activities on Future Years (as of June 30, 2016) Dollars in millions

  • Original Plan 
  • Estimated
    • FY16 = - $26 m
  • Forward looking budget deficits
    • FY17 = - $29 m
    • FY18 = - $28 m
    • FY19 = - $25 m
    • FY20 = - $15 m

HOW WE FIX THIS (THE 5-YEAR PLAN)

HOW WE FIX THIS (THE 5-YEAR PLAN)

HOW WE FIX THIS (THE 5-YEAR PLAN)
(as of July 1, 2017)

TUITION INCREASES

  • 5% for Resident & NonResident through FY21

STATE APPROPRIATIONS

  • 2% Reduction in FY18 - flat thereafter

SALARY INCREASE PROGRAM

  • $1.5 million retention pools in FYs 17, 19 and 21
  • 3% Raise Pools in FYs 18 and 20

HOW WE FIX THIS (THE 5-YEAR PLAN)

HOW WE FIX THIS (THE 5-YEAR PLAN)

HOW WE FIX THIS (THE 5-YEAR PLAN)
(as of July 1, 2017)

STUDENT AID

  • $7 million in FY17 and $5 million annual increase thereafter

STUDENT RETENTION

  • 1% improvement in FY17 with an additional 1% improvement in FY18

BUDGET TRANSFORMATION PROGRAM

  • Reduce spending at the end of 4 years
  • Budget Reductions + Expense Limits + Revenue Targets
  • FY17 is a planning year to reduce spending while making permanent reductions in FY18

KEY DRIVERS FOR BALANCING THE BUDGET

KEY DRIVERS FOR BALANCING THE BUDGET

KEY DRIVERS FOR BALANCING THE BUDGET

  • Organizational/Structural Transformations
  • Revenue/State Appropriations/Tuition
  • Other Reductions

BUDGET TRANSFORMATION PROGRAM: FY17

BUDGET TRANSFORMATION PROGRAM: FY17

BUDGET TRANSFORMATION PROGRAM: FY17

  • Reduction of Centrally Allocated Budgets
    • Other units = $8.5 m
    • Colleges= $10 m
  • Curtail spending and return savings to meet target reduction.
     
  • Limits on Non-centrally Allocated Expense Budgets
    • Colleges = $3.6 m
    • Other units $7.5 m
  • Curtail spending and retain savings.
     
  • Equals $29.6 million
     
  • Revenue Targets for Non-Centrally Allocated Budgets
    • Colleges = $85.5 m
    • Other units = $188.7 m 
  • Collect revenues equal to budget.

BUDGET TRANSFORMATION PROGRAM: FY18

BUDGET TRANSFORMATION PROGRAM: FY18

BUDGET TRANSFORMATION PROGRAM: FY18

  • Continued Reduction of Budgets
    • Other units = $8.5 m
    • Colleges = $10 m
  • Base budget reduction.
     
  • Limits on Non-centrally Allocated Expense Budgets
    • Colleges = 3.6 m
    • Other units = $7.5 m
  • Revenue Targets for Non-Centrally Allocated Budgets
    • Colleges = 85.5 m
    • Other units = $188.7 m
       
  • Expense budget limits and revenue targets reset annually based on activity revenues and cash continues to flow to fund owners.

Impact of Revised 5-year Planning Assumptions (as of July 1, 2016) Dollars in millions

Impact of Revised 5-year Planning Assumptions (as of July 1, 2016) Dollars in millions

Impact of Revised 5-year Planning Assumptions (as of July 1, 2016) Dollars in millions
                                 
◆    Approved Budget
◆    Uncorrected Plan

Savings:

Target annual base budget savings:

  • FY16 = $14
  • FY17 = $15
  • FY18 = $10
  • FY19 = $6  
  • FY20 = $0
  • FY21 = $45

Realized savings:

  • FY16 = $0
  • FY17 = $29 (target)

Snapshot: BUDGET

Snapshot: BUDGET

Snapshot:BUDGET

If we can correct FY17, the University will be better positioned to move forward and make investments in priorities and prepare for growth.

And as state appropriations and enrollment turns around, we will be better positioned to prepare for future opportunities, while removing costs that do not directly contribute to our land-grant mission.

NEXT STEPS STRATEGIES AND IMPLEMENTATION

NEXT STEPS STRATEGIES AND IMPLEMENTATION

Next steps
Strategies and implementation

Possible strategies

Possible strategies

Possible strategies

  1. Using foundation dollars
  2. Budget reductions
  3. Management organization
  4. Academic restructuring
  5. Recruitment & retention
  6. Revenue generation

 

FINAL THOUGHTS

FINAL THOUGHTS

FINAL THOUGHTS

Thanks for your participation.