Budget Reduction Plan For 3 31 09 Mtg Final

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  • 1. The Florida International University Board of Trustees Meeting March 31, 2009 1
  • 2. FLORIDA INTERNATIONAL UNIVERSITY AGENDA   Direction What is the University’s strategic direction?   What are the state revenue assumptions?     Funding Needs What is the methodology for determining FIU’s budget gap?     Three Year Budget Plan What steps are being taken to meet the funding shortfall?   What is the timeline?     Questions & Answers 2
  • 3. UNIVERSITY STRATEGIC EVOLUTION FIU 1.0 FIU 2.0 FIU 3.0 Founding Paradigm Existing Paradigm New Paradigm •  Comprehensive urban research •  Two year upper division college •  Comprehensive urban research university university with sharp strategic focus: Health, International, Environment •  Few Masters programs •  30 Doctorates, Architecture, Law, •  Stronger, integrated, interdisciplinary Engineering, Public Health, undergraduate core Medicine •  Managed enrollment •  Rapid enrollment growth •  Publicly funded •  State of the art managerial systems •  Publicly funded and infrastructure •  Reduced public funding with increased accountability •  Requiring greater sponsored research, public/private partnerships and revenue generating operations 3
  • 4. LEGISLATIVE UPDATE STATE GENERAL REVENUE MAR. 08 28 AUG. 08 26 $ Billions NOV. 08 24 -$3.6 Billion -15% 22 -$6.3 Billion -24% MAR. 09 20 18 2006-07 2007-08 2008-09 2009-10 2010-11 4
  • 5. LEGISLATIVE UPDATE FIU State Funds Reduction - 0 (10) Deficit = $27M (20) (30) Millions $ Differential Tuition $10M (40) (50) Tuition Revenue Increase $24M State Funds Reduction (Other Tuition Increases + Managed (60) Enrollment Growth) $61M (70) 06-07 07-08 08-09 09-10 10-11 11-12 Actual Estimate Actual Projected 3 Year Plan 5 State funds include GR & Lotto, Tuition & Differential increases are net waivers and need based financial aid.
  • 6. FIU UNIVERSITY BUDGET FIU Operating Distribution Construction Distribution 6
  • 7. FLORIDA INTERNATIONAL UNIVERSITY AGENDA   Direction What is the University’s strategic direction?   What are the state revenue assumptions?     Funding Needs What is the methodology for determining FIU’s budget gap?     Three Year Budget Plan What steps are being taken to meet the funding shortfall?   What is the timeline?     Questions & Answers 7
  • 8. PLANNING METHODOLOGY   Multi-year state budget cuts expected Three Year Rolling   Continue making investments in critical strategic areas Plans   All units creating their own three year plans for submission   Lessen immediate impact to students, faculty and staff through the use of one time funds First Buffer: University Mitigation   Shared savings from new & replacement position   Savings and revenues from new university-wide ideas   Reduction amounts allocated proportionately to executive areas Units’ Reductions   Reductions distributed to each unit based on strategic prioritization 8
  • 9. GAP ANALYSIS UPDATE Rolling Three Year Plan (Cumulative amounts) 9 Note: As of March 9, 2009
  • 10. FLORIDA INTERNATIONAL UNIVERSITY AGENDA   Direction What are the potential budget cuts?   What is the University’s strategic direction?     Funding Needs   What is the methodology for determining FIU’s budget gap?   Three Year Budget Plan What steps are being taken to meet the funding shortfall?   What is the timeline?     Questions & Answers 10
  • 11. UNIVERSITY STRATEGIC IMPERATIVES Survive: Create a plan that allows FIU to sustain the least injury to critical operations and strategic areas Top 15 Public Urban Research University   -  Sustaining and strategically enhancing research -  PhD production Undergraduate Retention and Graduation   -  Academic advising -  Classroom renovations and expand technology infrastructure -  Enhanced student services Health & Life Sciences   -  Public Health partnership -  Medical School -  Rationalize laboratory space and equipment Student Life and Alumni Affinity   -  Housing & undergraduate activities -  Athletics and recreation fields Advancement & Human Resource Development   -  Leadership and professional development -  Capital campaign 11
  • 12. CRITICAL INVESTMENTS STRATEGIC INVESTMENTS = $15.5M in FY09-10 Instruction Research Faculty & Staff   Increase graduation and   Strengthen national   ATB and merit increases retention rates research ranking   Faculty retention   Hire additional   Increase revenue   Attract new talent instructional faculty   Increase Graduate Student   Improve advisor to Stipends student ratio 12 Note: Investments in Advancement infrastructure are also being provided by the FIU Foundation strategic investment pool
  • 13. ACADEMIC AFFAIRS GROUP STRUCTURE Criteria Relative Importance / Definition 10 As defined in FIU strategic plan   Strategic to FIU 7 Total of all funding divided by E&G support –   Return on Investment tuition, research, gifts, and auxiliaries 5 College level analysis relative to the Delaware   Cost study benchmark 3 Faculty cost plus startup dollars expectation   Faculty Investment 2 Three year average PhDs awarded divided by   PhD Production Tenure-Tenure track faculty 13
  • 14. ACADEMIC AFFAIRS BUDGET REDUCTION PLAN ADDITIONAL BUDGET REDUCTION PLAN 09/10 10/11 11/12 Group 1 3.3% 3.6% 5.0% (overall score > 60) Arts & Sciences, Business, Engineering, Public Health Group 2 4.1% 4.6% 6.2% (overall score 40 – 59) Hospitality, Nursing, Education Group 3 5.1% 5.6% 7.7% (overall score < 39) Architecture & the Arts, Journalism, Law Group 4 5.3% 5.9% 8.0% (overall score not applicable) Library, Honors, Museums, Student Affairs and all other Provost areas ??? ??? ??? Medicine Separate Legislative Appropriation 14 Reductions for planning purposes, subject to change
  • 15. FINANCE & OPERATIONS BUDGET REDUCTION METHODOLOGY Group 1: Compliance and University-Wide Strategic Projects Examples: EOP, IT Security, BioChemical Receiving Prioritization Group 2: Essential Services where service will be reduced or contractual commitments renegotiated Examples: Media Technology Services, Disaster Recovery Group 3: Areas where efficiencies gained from a change in current business processes or in customer service delivery method Examples: Purchasing Services, Student Payment Services (Online) Group 4: Less Essential Services where current levels cannot be afforded Examples: Groundskeeping   Planned cuts range from 2% to 7% by FY 2011-12 Planned Cuts*   Group 4 cuts could exceed 35%   $2.7 million additional cuts above the original $8 million 15 *Planned Cuts are incremental to 2008-09 plan *VP Offices are taking the base cut of 4.1%,4.6% and 6.2%
  • 16. TIMELINE February 17 Faculty Senate – Budget Presentation & Discussion   February 25 Budget Stabilization Task Force (bi-weekly meetings)   February 26 Student Forum – Budget Presentation & Discussion   March 4 USPS Senate Meeting – Budget Presentation & Discussion   March 9 Town Hall Meeting 1st   April 10 Units Submit Plans   April 27 Faculty Senate receives Recommendations   May 1 Legislative Session Ends   May 4 Town Hall Meeting 2nd   May 5 Budget Stabilization Committee receives Recommendations   May 26 Faculty Senate Recommendations due   June 1 Board of Trustees Budget Workshop   June 12 Governor’s Veto period expected to expire   June 12 Board of Trustees Meeting   16 Please send all comments, questions and ideas to President Maidique at presmail@fiu.edu
  • 17. THE FLORIDA INTERNATIONAL UNIVERSITY AGENDA   Direction What are the potential budget cuts?   What is the University’s strategic direction?     Funding Needs   What is the methodology for determining FIU’s budget gap?   Three Year Budget Plan What steps are being taken to meet the funding shortfall?   What is the timeline?     Questions & Answers 17
  • 18. The Florida International University Board of Trustees Meeting March 31, 2009 18