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AAUP 2009: Temple Financials (K. Kaiser)


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AAUP 2009: Temple Financials (K. Kaiser)

  1. 1. Temple University Financial Overview June 19, 2009
  2. 2. Outline <ul><li>Review the current financial state of Temple </li></ul><ul><li>Key financial factors and the broader economic impact </li></ul><ul><li>2009-2010 Budget update </li></ul><ul><li>Looking forward </li></ul>
  3. 3. Independent Third-Party Debt Rating Aaa U of Michigan; U of Texas; U of Virginia Aa1 Aa2 PSU; Pitt; Penn; Maryland Aa3 Rutgers; PA/SSHE A1 Temple University A2 A3 Baa1 Baa2 Baa3 TUHS Ba1 Junk Bonds Ba2 Non-Investment/Speculative Grade Ba3 Source: Moody’s Investment Service Long-term Debt Rating Investment Grade Bonds
  4. 4. Key financial factors <ul><li>Declining trends in state appropriations </li></ul><ul><li>Endowment </li></ul><ul><li>Tuition </li></ul><ul><ul><li>Reliance as share of Education and General Budget </li></ul></ul><ul><ul><li>Commitment to affordability </li></ul></ul><ul><li>Impact on students </li></ul><ul><ul><li>Debt burden </li></ul></ul><ul><ul><li>Availability and affordability of credit </li></ul></ul>
  5. 5. Diminishing buying power of Commonwealth appropriations $35.9M loss in buying power since 2002 in $ thousands
  6. 6. Temple Revenue 2009-2010 General Operating $793.1 Million
  7. 7. 2009-2010 Budget Highlights <ul><li>Key goals </li></ul><ul><ul><li>Minimize the tuition increase </li></ul></ul><ul><ul><li>Address unmet need and rising student debt </li></ul></ul><ul><ul><li>Strengthen the balance sheet </li></ul></ul><ul><li>Key features or responses </li></ul><ul><ul><li>2.9% tuition increase </li></ul></ul><ul><ul><li>Increase financial aid </li></ul></ul><ul><ul><li>5% operating budget reduction from FY’09 </li></ul></ul><ul><li>Role of Federal State Stabilization Funds </li></ul>
  8. 8. Looking forward <ul><li>Continued considerations </li></ul><ul><ul><li>Monitoring state and federal support levels </li></ul></ul><ul><ul><li>Assessing the impact on students </li></ul></ul><ul><ul><li>Preserving enrollment </li></ul></ul><ul><ul><li>Diversifying revenue </li></ul></ul><ul><ul><li>Carefully steering Temple through very difficult times </li></ul></ul><ul><ul><ul><li>It is not business as usual </li></ul></ul></ul>