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Preliminary FY10 Budget Discussion, Campus Presentation

March 26 & 30

Slide 2
Proposed Budget Agenda

1. Overview of University Revenue/Expenditures

- FY08 Revenue/Expenditure detail
- FY09 Auxiliaries Budget
- FY09 Educational & General (E&G) Budget

2. Convergence of Fiscal Pressures

3. Building the FY2010 E&G Budget

- Multi-year Projections
- Sensitivity Analysis
- FY09 Area Budgets as Base
- FY10 Reductions
- FY10 Student Costs

4. Internal Timeline

5. Questions & Answers

Slide 3

Total FY08 UM Revenue (all funds)
Area	Amount	Percentage
Tuition and Fees	70.1 M	21.8%
Residence/Dining Fees	46.5 M	14.5%
Grants/Contracts	59.2 M	18.4%
ICR	8.6 M	2.7%
Sales/Services	22.2 M	6.9%
State Appropriation*	89.4 M	27.8%
Restricted Appropriation-MEIF	11.0 M	3.4%
Gifts	14.6 M	4.5%
Total	321.6 M	100.0%

* Includes $500k in Public Utilities Commission support for Digital Library and $226k in
Racino Scholarship Funding

Slide 4

Total FY08 UM Expense (all funds)
Area	Amount	Percentage
Instruction	71.6 M	22.2%
Research	55.7 M	17.3%
Public Service	26.8 M	8.3%
Academic Support	24.9 M	7.7%
Student Services	21.7 M	6.8%
Institutional Support	31.7 M	9.9%
Operating/Maintenance of Plant	25.0 M	7.8%
Depreciation/Amortization	12.0 M	3.7%
Student Aid	8.6 M	2.7%
Auxiliary Enterprises	43.6 M	13.6%
Total	321.6 M	100.0%

Slide 5

FY09 Auxiliary Revenue Base Budget
Area	Amount	Percentage
Bookstore (including Machias)	7.2M	13.6%
Computer Connection	5.8M	11.1%
Dining	16.0 M	30.5%
Residence	16.9M	32.3%
Motor Pools (FM/NSFA)	0.3M	0.7%
Printing	1.6M	3.1%
Recreation Center	2.8M	5.3%
Residence Life	1.8M	3.4%
Total	52.4M	100%

FY09 Auxiliary Expense Base Budget
Area	Amount	Percentage
Operating	36.8	71%
Comp	15.3	29%
Total	52.1	100%

Slide 6

FY09 E&G Revenue Base Budget (all funds)
Area	Amount	Percentage
Tuition/Fees	103.1M	47.9%
Unrestricted State Appropriation	88.7M	41.2%
Indirect Costs	7.5M	3.4%
Sales/Services/Other	16.0M	7.5%
Total	215.3M	100%

FY09 E&G Expense Base Budget (all funds)
Area	Amount	Percentage
Operating	64.3M	29.8%
Comp	151.0M	70.2%
Total	215.3M	100%

Slide 7

Questions

Slide 8

UMaine Fiscal Pressures - FY09
Appropriation Curtailment (one-time)	(4,115,105)
System Operating Investment Loss	(1,260,698)
Total Mid-Year UMaine Curtailment	(5,375,803)

Loss of System Capital Project Funds	(1,600,000)
Re-Distribution of Bond Funds (capital projects)	(800,000)
Estimated Short-Term Investment Loss (gifts)	(1,000,000)
Loss in Perkins Loan Available Funding	(1,300,000)
Loss in FAME Funding	(280,044)
Total	(10,355,847)

Slide 9

Unknowns??

State Appropriation, More? Less?
Enrollment
Collective Bargaining
Restructuring through Task Force Actions
Investment Income, More? Less?

Good News

Maine Economic Improvement Fund (MEIF) held constant
Stimulus Funding distribution (UMS total, one-time)
FY09 – $6.5M
FY10 – $4.6M
FY11 – $4.6M
Energy Price Stability & Savings
Bond Funding Reinstated
Potential Bond Money $$$

Slide 10

UMaine Fiscal Pressures FY10
Base Appropriation Curtailment (2.7%)	(2,379,575)
Base System Investment Income Reduction	(1,285,907)
Re-distribution of System Operating Gap	(700,000)
Loss in UMaine Foundation Endowment Payovers	(3,752,006)
Loss in System Endowment Payovers	(365,833)
Loss in Pulp & Paper and 4H Foundation Payovers	(400,000)
Loss in Perkins Loan Available Funding Cumulative since FY2008 ($2.5M)	(1,200,000)
Loss in FAME funding Cumulative since FY2008 ($363K)	(83,067)
Reduction in Enrollment Forecast	(953,070)
Total	(11,119,458)

Slide 11

UMaine Multi-Year Projections

Incremental Gaps FY10 - FY13 (E&G, Auxiliaries & Designated)

UMaine	Structural Gap	Incremental Gap
FY10	($9.9)
FY11	($17.2)	($7.3)
FY12	($23.8)	($6.6)
FY13	($29.9)	($6.1)

University of Maine System Structural Gap, FY13 ($42.8)

Slide 12

Questions

Slide 13, 14 & 15

Building the FY2010 Educational and General (E&G) Base Budget

University of Maine Sensitivity Analysis FY10
Area	Amount
Compensation (Salaries, Wages & Benefits)	(6,564,719)
Student Financial Aid (6%)	(901,931)
Student Financial Aid (Addt’l Needed)	(500,000)
Basic On-Going Needs	(1,250,000)
Increased Funding Needs	(400,000)
Curtailment / On-Going De-Appropriation (2.7%)	(2,379,575)
Redistribution – Investment Income Reduction	(1,285,907)
Redistribution – SWS Gap	(700,000)
Sub-Total Expense, Curtailment and Re-Distribution:	(13,982,132)
Tuition Net of Waivers (6%) (holding budgeted CRH at FY09 Level)	5,181,402
Reduction in 1st Year Applications & Retention	(953,070)
Facilities & Administration Recovery Increase (ICR)	100,000
Unified Fee Revenue Increase (6%)	800,000
Sub-Total Central Revenue Sources:	5,128,332
FY10 Projected Revenue / Expense Gap:	(8,853,800)
Campus-wide Savings / Reductions
Energy Procurement Savings	1,150,000
Cutler Health Center Outsource	500,000
Other	203,800
FY10 Cut to Campus Departments:	(7,000,000)

Slide 16

FY09 Area E&G Base Budgets, Total $215.3

Area	Budget Dollars	Percentage
Vice President for Academic Affairs & Provost	$123.3M	57.2%
Vice President for Research	$9.8M	4.6%
Vice President for Administration & Finance	$16.3M	7.6%
President's Areas	$28.8M	13.4%
Vice President for Student Affairs	$3.3M	1.5%
Vice President for Advancement	$2.6M	1.2%
Financial Management	$31.2M	14.5%

Slide 17
Modeling the Cut at $7M, using FY09 E&G Base Expenditure Budgets

Area	FY10 Reductions (in Millions)
VP Academic Affairs & Provost	4,900,780
President’s Areas	860,597
VP Administration & Finance	672,893
VP Research	253,358
VP Student Affairs	168,896
VP Advancement	143,476
SubTotal	7,000,000
Off the Top Reductions	1,853,800
Total Campus Cuts	$8,853,800

Slide 18

FY09 Area E&G Base Budgets, $215.3

VP Academic Affairs & Provost Area

Col. of Liberal Arts & Sciences, 26.2M
Col. of Natural Sciences, Forestry & Agriculture, 22.8M
VP Academic Affairs & Provost, 18.5M
Includes: Fogler Library, Honors College, Graduate School, Museums (UMMA, Hudson), Institutional Studies, VPAA Office
Col. of Engineering, 10.5M
Cooperative Extension, 9.0M
Student Financial Aid, 8.4M
Col. of Education & Human Development, 7.7M
Col. of Business, Public Policy & Health, 7.3M
Division of Lifelong Learning, 6.5M
Assoc. Provost & Dean for Undergrad. Education, 5.1M
Includes: Admissions, Office of Student Financial Aid, Office of Student Records, International Programs, Center for Teaching Excellence, Explorations
Hutchinson Center, 1.3M

Total VPAA & Provost, 123.3M

Total Base Budget includes Sales & Services

Slide 19

Questions

Slide 20 & 21

Projected Student Annual Costs* for AY09-10

* Subject to BOT approval

Undergraduate Costs (based on 30 credits per year)
	In-State		Out-of-State
	AY09-10	AY08-09	AY09-10	AY08-09
Tuition	7,620	7,170	21,840	20,580
Fees	2,036	1,930	2,036	1,930
Room & Board	8,348	8,008	8,348	8,008
Total	18,004	17,108	32,224	30,518
Combined Increase	$896 (5.24%)		$1,706 (5.60%)

Graduate Costs (based on 18 credits per year)
	Graduate In-State		Graduate Out-of-State
	AY09-10	AY08-09	AY09-10	AY08-09
Tuition	6,822	6,426	19,620	18,504
Fees	1,000	950	1,000	950
Room & Board	8,348	8,008	8,348	8,008
Total	16,170	15,384	28,968	27,462
Combined Increase	$786 (5.11%)		$1,506 (5.49%)

Slide 22

Internal Timeline

May 31st - FY10 budgets must be completed in PeopleSoft

May 18th - Trustees approve budget and student charges for FY10

Late February - Colleges & major divisional areas given budget cut targets

March - General information regarding how the targeted cuts will
be met are submitted to the Budget Office

April-May - Work with Departments to complete FY10 budget details