Informational session for trustees: UA financials03/14/2012
IN AN INFORMATIONAL SESSION before the Board of Trustees on March 14, Vice President for Finance & Administration/CFO David J. Cummins presented a comprehensive report about how the University will manage its fiscal resources to maximize opportunities for academic investment and growth as outlined in Vision 2020 and balance its budget in the face of projected shortfalls in revenue.
Key points include:
- Fiscal 2012-13 (the fiscal year that begins July 1, 2012) is a transition year:
- Projections are being adjusted;
- Targeted reductions have been implemented; and
- Fiscal integrity, ensuring excellence and strategic investment are budgeting principles.
- With decreased state support for higher education and no anticipated growth in enrollment, budget management must account for reduced revenues.
- Rather than absorb significant budget reductions in Fiscal 2011-12 (the last fiscal year), the University chose to spread state funding reductions over two years, impacting budget projections in Fiscal 2012-13.
- We will project flat enrollment for the next fiscal year partly due to slower growth of the traditional college-age population and an improving economy (fewer college applicants with increasing employment opportunities), creating a more competitive environment and increased need to target non-traditional college students (including veterans, adult and online learners).
- An increase of 3.5 percent in tuition and fees is anticipated (for Board consideration in June), consistent with plans/actions at other Ohio universities.
- To increase student success (persistence and graduation rates), enrollment strategies are targeting those students most prepared to do college level work and providing pathways for students who require more preparatory education for college completion. Students requiring more preparatory work will be guided to pathways for success at partner community colleges that will enhance their opportunities for associate to bachelor’s degree completion or specialized skills training.
A campus forum will be held to cover the entire presentation. Details will be posted to the E-mail Digest. A presentation will be made to University Council as well.