BRT Meeting Handout – August 27, 2010 (Calculations reflect the date of the handout)<br />Figure 1 - Debt Schedule and Funding Source – (Budget Book FY2010)<br />* Highlighted area of Unexpended Plant Fund column represents the 2010 Ending Fund Balance. If we never added surplus to it, and only used the balance to pay off the planned debt portion highlighted, the unexpended plant fund balance would be 0 by FY2019.<br />
Overview of Gap for FY2012 and beyond<br />Per the FY2011 Budget Book, the financial outlook was bleak. Now, that the state is talking about additional cuts the financial pictures worsens. <br />Figure 4 - - Current 5 year Financial Plan - assumes 5% state aid cut in 2012 and a $2 tuition increase for each year.<br />*<br />*Revised Unexpended Plant Fund Balance from Budget Book to the FY2010 unaudited results. Per the Budget Book, the Unexpended Plant Fund <br />
Balance at FY2010 year end was $36,019,253 versus budget book of $30,939,890. As such, the Budget book figures have been adjusted to reflect the $5,079,363 increase. <br />Figure 5– Projected State Aid Cuts – Above the 5% planned in the FY2011 Budget<br />For forecasting purposes, we are using 17% as the most likely scenario.<br />Figure 6 - Revised Financial Plan with State Aid Cuts and Impact of Raising Tuition. <br /> Figure 6a - Impact of Raising Tuition on Reserves - $2 already in plan per year. <br /> *Target Reserves = 40% of Total Institution Expenses (Operations, Auxiliary, Interest, Depreciation, etc) per Higher Learning Commission<br />Known issues/problems in current financial plan assumptions:<br /><ul><li>State Aid – Current plan assumes state aid will increase after FY2012 (See B-6)
Investment Income – Shows an increase, yet our reserves (investments) our decreasing.
Insurance Rate increase – Understated, which affects current benefit expenses and OPEB expense.</li>