UNIVERSITY OF NEBRASKA AT KEARNEY BUDGET OVERVIEW 2016-17 Jon C.

UNIVERSITY OF NEBRASKA AT KEARNEY BUDGET OVERVIEW 2016-17 Jon C. Watts Vice Chancellor Business and Finance September 2016

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University of Nebraska Hank Bounds Cornerstones for Success NU will be the best place in the nation to be a student. Affordable and Accessible Maintain High Academic Standards NU will transform lives through research and innovation. Targeted Faculty Hires Impact Areas: (Water & Agriculture, Early Childhood Education, National Security & Defense, Rural Development, Cancer, Public Health, Engineering, Information Technology, and Arts & Humanities) NU will work hand-in-hand with partners to achieve shared goals. Stable Base of State Support Legislative Designations for Strategic Investments in Multi-Campus Initiatives Benefit State’s Economy and Quality of Life (UNMC Nursing & Allied Health at Kearney) NU will win with people. Competitive Salaries and Fringe Benefits

University of Nebraska at Kearney Strategic Plan 2016 Goal 1: Academic Quality. Faculty and staff will ensure ongoing review and continuous improvement of the curriculum across all academic programs on campus. Goal 2: Access student success. and Success. Increase recruitment and enhance support for Goal 3: Quality Faculty and Staff. Recruit, support, develop, and retain a high quality and diverse faculty and staff. Goal 4: Stewardship of Resources. Secure, generate, and responsibly steward the resources necessary to carry out the mission of the campus and ensure long-term institutional fiscal stability and environmental sustainability. 4

FUND DEFINITIONS GENERAL FUND – State tax revenue allocated to the University. CASH FUNDS – Derived from tuition, fees, investment income, and other miscellaneous income. FEDERAL FUNDS – Provided by federal agencies for research, grants and contracts, and student aid programs. REVOLVING FUNDS – Self-generated from departmental sales, charges for housing, food services, etc. TRUST FUNDS – State and private gifts, grants, and contracts, non-federal student aid programs, etc. 5

UNIVERSITY OF NEBRASKA AT KEARNEY 2016-2017 OPERATING BUDGETS Estimated Revenue by Source GENERAL FUNDS 40,499,221 CASH FUNDS 28,849,965 (includes 170,000 Indirect Costs) FEDERAL FUNDS 41,500,000 REVOLVING FUNDS 33,000,000 TRUST FUNDS 15,000,000 TOTAL 158,849,186 6

UNIVERSITY OF NEBRASKA AT KEARNEY Operating Budgets 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 GENERAL FUNDS 34,097,172 34,260,675 34,867,838 36,393,192 37,825,894 39,431,069 40,499,221 CASH FUNDS 24,697,940 26,918,143 28,847,364 29,507,439 29,411,636 29,542,534 28,849,965 Estimated Revenue by Source: (includes 160,000- 170,000 Indirect Costs) FEDERAL FUNDS 39,300,000 * 40,000,000 * 40,800,000 * 41,000,000 * 41,500,000 * 41,500,000 * 41,500,000 REVOLVING FUNDS 20,600,000 23,000,000 23,460,000 24,185,000 24,900,000 26,000,000 33,000,000 5,300,000 7,000,000 7,700,000 8,100,000 14,000,000 15,000,000 15,000,000 123,995,112 131,178,818 135,675,202 139,185,631 147,637,530 151,473,603 158,849,186 TRUST FUNDS TOTAL *Federal - Direct Student Loan 25,066,963 27,934,552 28,104,519 28,693,286 29,000,000 29,000,000 29,000,000 7 *

University of Nebraska at Kearney 2016-2017 Est REVENUE by Source Trust Funds 15,000,000 9% General Funds 40499221 26% Revolving Funds 33000000 0 Federal Funds 41,500,000 26% [ 29,000,000 Dir Stdt Loan] Cash Funds 28849965 0 8

2016-17 BUDGET UNK ALL FUNDS Trust Funds 15,000,000 2015-16 BUDGET [FY16 15,000,000] [FY15 14,000,000] Federal Funds 41,500,000 [FY16 41,500,000] [FY15 41,500,000] General Funds 40,499,221 [FY16 39,431,069] [FY15 37,825,894] General Funds Cash Funds Revolving Funds Federal Funds Trust Funds Cash Funds 28,849,965 [FY16 29,542,534] [FY15 29,411,636] Revolving Funds 33,000,000 [FY16 26,000,000] [FY15 24,900,000] 9

UNK ALL FUNDS BUDGET HISTORY 45,000,000 40,000,000 35,000,000 30,000,000 GENERAL CASH REVOLVING FEDERAL TRUST 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 FY01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 FY17 10

2016-17 University of Nebraska at Kearney Budgeted Revenue by Fund Source Federal Funds 41,500,000 Revolving Funds 33,000,000 General Funds 40,499,221 Trust Funds 15,000,000 Cash Funds 28,849,965 Total Estimated Funding 158,849,186 2016-2017 University of Nebraska at Kearney Estimated Expenditures by Spending Category 10-Instruction 45,507,135 20-Research 1,278,554 30-Public Service 2,146,324 40-Academic Support 8,641,680 50-Student Services 7,004,894 60-Institutional Administration 9,830,291 70-Physical Plant Operations 8,493,636 80-Student Financial Support 43,452,048 90-Independent Operations 22,917,668 00-Other Non-Expenditures 9,576,956 Total Budgeted Expenditures 158,849,186 11

State Aided Budget 2016-17 (State and University Generated – Unrestricted & Designated) General Fund 40,499,221 Cash Fund 28,679,965 TOTAL 69,179,186 12

State Aided Budget (State & University Generated – Unrestricted) General Fund: – State Appropriation of Tax ’s 40,499,221 Cash Funds: – Gross Tuition 37,780,412 – Remissions ( 8,040,945) – Refunds/Uncollect ( 925,268) – Student Fees 256,900 – Misc Other Cash 740,000 – U-Wide Debt Svc ( 1,131,134) TOTAL 69,179,186 28,679,965 13

UNIVERSITY OF NEBRASKA AT KEARNEY 2016-17 BUDGET Amount SALARIES BENEFITS PERSONAL SERVICES UTILITIES NON-PERSONAL SERVICES 41,985,021 12,491,344 54,476,365 % of Total 79% 3,186,138 11,516,683 17% TOTAL BUDGET 69,179,186 100% FUNDING SOURCE: General Fund Cash Fund 40,499,221 28,679,965 59% TOTAL BUDGET 69,179,186 100% 4% 41% 14

UNIVERSITY OF NEBRASKA AT KEARNEY 2016-17 BUDGET Non-Personal Services 17% Utilities 4% Salaries/ Benefits 79% Salaries/Benefits Utilities Non-Personal Services 15

UNIVERSITY OF NEBRASKA AT KEARNEY State Aided Budget % of % of % of % of % of % of % of % of 2001-02 Budget 2002-03 Budget 2003-04 Budget 2004-05 Budget 2005-06 Budget 2006-07 Budget 2007-08 Budget 2008-09 Budget Revenue Budget: General Fund 31,676,315 73.2% 31,583,598 70.8% 29,938,302 67.3% 29,489,468 63.5% 30,753,739 63.5% 32,705,096 63.4% 33,849,888 62.6% 34,919,679 62.6% Cash Fund 11,573,457 26.8% 13,030,397 29.2% 14,577,432 32.7% 16,959,287 36.5% 17,672,788 36.5% 18,855,172 36.6% 20,257,670 37.4% 20,903,706 37.4% GRAND TOTAL 43,249,772 100.0% 44,613,995 100.0% 44,515,734 100.0% 46,448,755 100.0% 48,426,527 100.0% 51,560,268 100.0% 54,107,558 100.0% 55,823,385 100.0% % of % of % of % of % of % of % of % of 2009-10 Budget 2010-11 Budget 2011-12 Budget 2012-13 Budget 2013-14 Budget 2014-15 Budget 2015-16 Budget 2016-17 Budget Revenue Budget: General Fund 35,292,044 61.9% 34,097,172 58.2% 34,260,675 56.1% 34,867,838 54.9% 36,393,192 55.4% 37,825,894 56.4% 39,431,069 57.3% 40,499,221 58.5% Cash Fund 21,729,346 38.1% 24,537,940 41.8% 26,758,143 43.9% 28,687,364 45.1% 29,337,439 44.6% 29,251,636 43.6% 29,372,534 42.7% 28,679,965 41.5% GRAND TOTAL 57,021,390 100.0% 58,635,112 100.0% 61,018,818 100.0% 63,555,202 100.0% 65,730,631 100.0% 67,077,530 100.0% 68,803,603 100.0% 69,179,186 100.0% 16

STATE AIDED BUDGET FY 2016-17 University of Nebraska at Kearney 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 GENERAL CASH 20,000,000 15,000,000 10,000,000 5,000,000 0 FY01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 FY17 17

UNK Allocation 1. State-Aided Revenues State Appropriation - General Fund Cash Fund: Net Tuition Student Fees Other Cash Subtotal Cash Fund Less LB 1100/605 Debt Service (U-Wide Transfer) TOTAL ESTIMATED REVENUE 2. Expenditures July 1 Base Cash Shortfall (2015-16 cash actuals vs. budget) Adjusted Base 2015-16 % Change FY16 to FY17 2016-17 39,431,069 40,499,221 29,548,073 258,595 697,000 30,503,668 (1,131,134) 68,803,603 28,814,199 * 256,900 740,000 29,811,099 (1,131,134) 69,179,186 67,077,530 (535,837) 66,541,693 68,803,603 (1,125,545) 67,678,058 Increases Salary Pool Increase 3% Faculty 3% NonFaculty Corresponding Benefits Health Insurance LB254 Autism Workers Compensation Programs of Excellence College Bound Nebraska/Need-Based Aid DAS Accounting Fees Distance Education Tuition Increase Projected 2016-17 Enrollment Decline Utilities Health Science Education Complex O&M UNK Internal Alloc Budget Cut - UNK Share SUBTOTAL New Expenses 1,189,687 1,233,766 172,505 166,396 35,489 275,610 (48,479) 300,000 24,304 36,000 341,168 324,320 (293,711) 424,000 (176,764) ** (241,253) 2,261,910 1,501,128 TOTAL ESTIMATED EXPENDITURES 68,803,603 2.71% -2.48% w/ Remissions Budget Same as FY16 69,179,186 * 1% Increase in Tuition 288,142 ** Enrollment/Revenue Decline - Additional Budget Reduction FY16 988,880 1,165,644 18

University of Nebraska at Kearney 2016-17 General Operating Budget STATE-AIDED FUNDS (Non-Revolving) FY17 Base Budget Personal Services NonPersonal Services 2016-17 BASE BUDGET % OF BASE BUDGET 666,732 79,700 1,973,440 586,508 3,306,380 0.96% 0.12% 2.85% 0.85% 4.78% 2,184,860 6,416,026 5,547,138 6,672,465 8,552,720 1,259,365 428,551 1,152,576 958,487 2,136,388 724,719 1,860,696 1,539,000 39,432,991 3.16% 9.27% 8.02% 9.65% 12.36% 1.82% 0.62% 1.67% 1.39% 3.09% 1.05% 2.69% 2.22% 57.00% Unit- benefits separated Chancellor's Office & General Alumni Intercollegiate Athletics Communications & Community Relations Subtotal 599,732 4,700 1,724,022 422,596 2,751,050 Academic Affairs Office & General, incl Honors College of Business & Technology College of Education College of Fine Arts & Humanities College of Natural & Social Sciences Graduate Studies/Sponsored Programs/RSC eCampus Summer School Information Tech Svcs Library Student Affairs Enrollment Management (Adms/FinAid/AdvCareer/1st Yr) Student Aid Subtotal 1,946,994 6,029,399 5,118,570 6,117,133 8,018,592 1,079,734 388,425 1,152,576 958,487 1,510,453 689,937 1,521,170 34,531,470 Business & Finance 4,618,864 2,091,639 6,710,503 9.70% 0 12,486,064 3,186,138 3,248,693 3,186,138 15,734,757 4.61% 22.74% 88,917 699,500 788,417 1.14% 69,159,186 99.97% 20,000 69,179,186 170,000 69,349,186 0.03% 100.00% Utilities Benefits/DE Reclass/Alloc to Depts Campus Enhancement/Priority Funds SUBTOTAL BASE BUDGET 67,000 75,000 249,418 163,912 555,330 237,866 386,627 428,568 555,332 534,128 179,631 40,126 625,935 34,782 339,526 1,539,000 4,901,521 54,476,365 54,476,365 54,476,365 Indirect Costs Rsch Incentive Alloc-Campus Indirect Costs Rsch Incentive Alloc-to Depts TOTAL BASE BUDGET FUNDING SOURCE: GENERAL FUND CASH FUND TOTAL BASE BUDGET 14,682,821 20,000 14,702,821 170,000 14,872,821 40,499,221 28,679,965 69,179,186 19

Current Year Allocation Personnel/Non-Personnel Percentages FY17 Academic & Student Affairs Distance Learning - Dept Alloc's Business & Finance Division 57.00% 2.80% 14.30% Chancellor's Division 4.78% Campus Enhancement/Priorities 1.14% Benefits Indirect Costs Research Incentive TOTAL 19.95% 0.03% 100.00% 20

Current Year Allocation Personnel/Non-Personnel Base Budget FY17 Academic & Student Affairs Distance Learning - Dept Alloc's 39,432,991 1,930,000 Business & Finance Division 9,896,641 Chancellor's Division 3,306,380 Campus Enhancement/Priorities Benefits 13,804,757 Indirect Costs Research Incentive TOTAL 788,417 20,000 69,179,186 21

UNIVERSITY OF NEBRASKA AT KEARNEY DISTANCE EDUCATION BUDGET 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Gross Income 6,030,498 8,066,343 9,426,570 10,032,916 11,402,280 12,602,165 13,562,086 Net Income 5,368,767 6,414,180 8,100,628 8,804,777 10,189,941 11,200,143 12,317,089 Allocated to Depts 799,100 1,195,000 1,500,000 1,755,000 1,930,000 1,930,000 1,930,000 22

BUDGET REDUCTION HISTORY 2001-02 Special Session ( 288,246) (FY02) 2001-02 Special Session ( 592,303) (FY03) 2001-02 April ( 536,116) (FY03) 2002-03 July 1 ( 1,208,572) 2003-04 July 1 ( 1,675,828) 2004-05 July 1 ( 86,335) 2005-06 July 1 ( 531,021) 2006-07 July 1 0 2007-08 July 1 ( 243,893) 2008-09 July 1 ( 385,401) 2009-10 July 1 ( 794,059) 2009-10 Special Session ( 342,763) 2010-11 July 1 ( 1,086,478) 2011-12 July 1 ( 368,430) 2012-13 July 1 0 2013-14 July 1 0 2014-15 July 1 0 2015-16 July 1 ( 176,764) 2015-16 Enrollment/Revenue Decline-Add’l Reduction ( 988,880) 2016-17 July 1 ( 241,253) – TOTAL( 9,546,342) 23

TUITION INCREASE HISTORY Tuition 2001-0210.0% 2002-0310.0% 2003-0414.9% 2004-0512.0% 2005-06 4.9% 2006-07 5.9% 2007-08 6.0% 2008-09 6.0% 2009-10 4.0% 2010-11 6.0% 2011-12 5.0% 2012-13 3.75% 2013-14 0.00% Res; 3% NonRes 2014-15 0.00% Res; 3% NonRes 2015-16 1.75% 2016-17 2.50% 24

REVENUE BOND BUDGET (Designated/Restricted) 2016-17 Dormitory Rental 8,139,000 Food Service 7,297,000 Facility Fee 680,000 Union Expansion 440,000 Bookstore Commission 160,000 University Heights Apts 290,000 Misc Income 1,089,000 Interest Income 160,000 – TOTAL INCOME 18,255,000 LESS OPERATION & MAINTENANCE ( 9,018,000) LESS FOOD COSTS ( 4,778,000) Available for Debt Service 4,459,000 Bond Interest Committed 1,849,290 Debt Service Charge 2.41 25

University of Nebraska at Kearney 2016-17 General Operating Budget REVENUE BOND (Auxiliary/Revolving) FY17 Base Budget Personal Services NonPersonal Services 2016-17 BASE BUDGET % OF BASE BUDGET Unit -benefits separated Chancellor Internal Audit-Revenue Bond Intercollegiate Athletics Pre-Season Meals Subtotal 32,623 0 32,623 0 20,000 20,000 32,623 20,000 52,623 0.21% 0.13% 0.34% Academic Affairs Information Technology Svcs Student Affairs (incl Intramurals) Subtotal 29,774 1,112,587 1,142,361 244,066 333,287 577,353 273,840 1,445,874 1,719,714 1.75% 9.24% 10.99% Business & Finance (Incl Food Svcs & Principle/Interest Payments) 2,479,387 7,954,856 ** 10,434,243 66.69% Utilities 0 1,693,839 1,693,839 10.83% Benefits Campus Enhancement/Priority Funds* 1,192,018 8,693 0 544,160 1,192,018 552,853 7.62% 3.53% TOTAL BASE BUDGET 4,855,082 10,790,208 15,645,290 100.00% * Funding accumulation will be used for future revenue bond projects. ** Food Svc Exp's 4,778,000; Principle/Interest Payments 1,849,290 26

ROOM & BOARD INCREASE HISTORY ROOM/Sem BOARD/Sem Per Year 2001-02 1,008 88 943 53 3,902 2002-03 1,071 63 1,007 64 4,156 2003-04 1,146 75 1,072 65 4,436 2004-05 1,289 143 1,206 134 4,990 2005-06 1,376 87 1,287 81 5,326 2006-07 1,469 93 1,374 87 5,686 2007-08 1,550 81 1,450 76 6,000 2008-09 1,635 85 1,530 80 6,330 2009-10 1,725 90 1,690 160 6,830 2010-11 1,820 95 1,783 93 7,206 2011-12 1,911 91 1,868 85 7,558 2012-13 2,007 96 1,962 94 7,938 2013-14 2,107 100 2,060 98 8,434 2014-15 2,212 105 2,163 103 8,880 2015-16 2,300 88 2,250 87 9,230 2016-17 2,392 92 2,340 90 9,594 27

QUESTIONS OR COMMENTS SHOULD BE SUBMITTED TO VICE CHANCELLOR Jon C. Watts AT [email protected] 28