Fiscal Year 2006 — 2007 Budget June 23

Fiscal Year 2006 - 2007 Budget June 23, 2006

Overview • Enrollment • Tuition • Operating Fee Revenue • FY 07 Operating Budget • FY 07 Capital Budget

Enrollment

Enrollment • Historical Trends & FY 2006 -2007 Projection • Demographics & Market • Planning

Enrollment Historical Trends & FY 2006 -2007 Projection

Projection Annualized Average FTES FY 2000 to FY 2007 (Projected)

Percent FTE Trend Rate FY 1998 to FY 2007 Projection

Enrollment Fall 2006 Projection New Freshman New Grad Students Fall 2005 1, 589 325 Fall 2006 1, 348 273 New UG Transfers 1, 142 974 176 150 6, 636 6, 884 9, 868 9, 629 Former Student Returning Continuing Students Headcount *Annualized FTES range from 8, 948 to 9, 043 Source: HEER 10 th Day Reports

Enrollment New Freshman & Transfer Enrollments

Enrollment Impacts On FY 2006 – 2007 Enrollment • Increased Competition • New Markets for Freshman • Better Economy

Enrollment Demographics & Market

State of Washington Population Forecasts By Traditional College Age Group Source: OFM-November 2005 Pop. Forecast

State of Washington Public and Private High School Graduates – Actual and Forecasted Source: Western Interstate Commission for Higher Education (WICHE)

Washington State High School Enrollment & Capture Rates: Fall 1995 to Fall 2006 (Fall 2006 based on Admissions Trend) Source: WICHE, HEER

EWU Transfers from Community Colleges CC Capture Rate – 2006 Based on Admissions Trend Note: Assumes CC transfer admissions trends follow total transfer admissions trends as a whole. Source: SBCTC, HEER

EWU Historical Enrollments from WICHE States – Fall Quarters

Enrollment Planning For the Future • FY 2006 -2007 Financial Impact • Targeted Recruitment Efforts • Focus on Strategic Plan • Manage Market Share • Investment in Recruitment & Retention Efforts

Tuition

FY 07 Tuition Components (Per Quarter) 6% increase for resident students Category Operating Fee Building Fee S&A Fee Residents Undergraduate $1, 226. 37 $48. 63 $151. 00 $1, 962. 62 $48. 38 $144. 00 Graduate Non-Resident Undergraduates Domestic $4, 125. 84 $170. 16 $149. 00 International $4, 125. 84 $170. 16 $149. 00 Domestic $5, 397. 79 $166. 21 $142. 00 International $5, 397. 79 $166. 21 $142. 00 Non-Resident Graduates Mandatory fees are assessed separately

Student Impact Annual Tuition Rates Current Tuition Rates FY 07 Tuition Rates Resident Undergraduate $4, 044 $234 $4, 278 Resident Graduate $6, 108 $357 $6, 465 Non-Resident Undergraduate $13, 317 $18 $13, 335 Non-Resident Graduate $17, 100 $18 $17, 118 Category Non-Resident rate changes due to S&A Fee increase only. Includes Tuition, S&A Fees, and Building Fees. Other Mandatory fees assessed separately.

FY 2006 - 2007 Mandatory Fees Category FY 06 Fees FY 07 Fees Technology Fee $105. 00 Health Clinic Fee $115. 17 $0 Health & Wellness Fee $16. 95 $0 Comprehensive Health & Wellness Fee N/A $182. 07 $237. 12 $287. 07 Total Fees $49. 95 All categories of students pay the same level of mandatory fees.

Additional Annual Impact on Students Student Impact 6% Grant Funds Available to Offset Impact High-Need Students $243 $247 Low/Medium Need Students $243 $0 -$85 State Need Grant award amounts were increased by the State to offset a 6 tuition increase. Students not eligible for the State Need Grant will be eligible for additiona grant & loan assistance, or will cover increases out-of-pocket. Resident Undergraduate

Recommended Action It is recommended that the Board of Trustees approve a 6% tuition rate increase for resident students and a 6% service and activity fee increase for all fee paying categories for fiscal year 2007, which begins July 1, 2006 and ends June 30, 2007.

Operating Fee Revenue

FY 07 Operating Fee Assumptions Policy Assumptions Enrollment Assumptions FTES 8, 850 Interest Income Headcount 9, 009 Uncollectibles FTES/HC Conversion 1. 018 University Reserves Enrollment Mix 1. 2% $300, 000 FY 06 Mix Waiver Assumptions Waivers $110, 000 Financial Aid Assumptions 18. 0% Financial Aid held at EWU Financial Aid Addition to Fin. Aid 06 Level 3. 5% 221, 001

FY 07 Operating Fee Revenue Gross Operating Fee Revenue Less: Tuition Waivers 3. 5 % EWU Financial Aid Uncollectible Allowance Plus: Interest Income Less: Additional Financial Aid 41, 215, 535 -7, 418, 804 -1, 165, 575 -494, 586 110, 000 -221, 001 -9, 189, 966 Net Operating Fee Revenue Net New Revenue for Distribution 32, 026, 000 $995, 000 Estimate based on resident tuition increase of 6% and 8, 850 FTES

FY 07 Operating Budget – Tuition Revenue Based Revenue Available for Policy Based Distribution Less: FY 06 Reduction Balance $ 995, 000 - 216, 000 Smart Buy Reduction -90, 000 Blackboard System -60, 000 Library Collections -70, 000 Retention and Student Learning -100, 000 PEHR -240, 000 Info. Technology -140, 000 China Program Balance Remaining -35, 000 $ 44, 000

FY 07 Operating Budget Tuition Revenue Proposals Blackboard System $ 60, 000 Promotes EWU Academic Strategic Plan Goals GOAL: A RIGOROUS AND ENGAGED STUDENT LEARNING EXPERIENCE Strategy: – Provide an Environment for Learning and Teaching Excellence • Create a physical and technological environment that supports integrated learning • Provide services and resources to enable students and faculty to acquire and use knowledge

FY 07 Operating Budget Tuition Revenue Proposals Library Collections $ 70, 000 Promotes EWU Academic Strategic Plan Goals GOAL: A RIGOROUS AND ENGAGED STUDENT LEARNING EXPERIENCE Strategy: – Provide and environment for learning and teaching excellence • Provide services and resources to enable students and faculty to acquire and use knowledge

FY 07 Operating Budget Tuition Revenue Proposals Retention & Student Learning $ 100, 000 Promotes EWU Academic Strategic Plan Goals GOAL: A RIGOROUS AND ENGAGED STUDENT LEARNING EXPERIENCE Strategy: – Provide and environment for learning and teaching excellence • Provide services and resources to enable students and faculty to acquire and use knowledge

FY 07 Operating Budget Tuition Revenue Proposals Physical Education, Health & Recreation $ 240, 000 Promotes EWU Academic Strategic Plan Goals GOAL: A RIGOROUS AND ENGAGED STUDENT LEARNING EXPERIENCE Strategies: – Foster engaged student learning • Enhance learning connections

FY 07 Operating Budget Tuition Revenue Proposals Information Technology $ 140, 000 Promotes EWU Academic Strategic Plan Goals GOAL: A RIGOROUS AND ENGAGED STUDENT LEARNING EXPERIENCE Strategy: – Provide and environment for learning and teaching excellence • Provide services and resources to enable students and faculty to acquire and use knowledge

FY 07 Operating Budget Tuition Revenue Proposals China Program $ 35, 000 Promotes EWU Academic Strategic Plan Goals GOAL: A RIGOROUS AND ENGAGED STUDENT LEARNING EXPERIENCE Strategies: – Integrate Multicultural and International Perspectives into the Learning Experience • Recruit and retain a greater diversity of faculty, staff, & students • Integrate multicultural perspectives into the curriculum • Increase international perspectives and enrollment of international students as well as participation in study abroad programs

New State Enrollment Distribution Total State Allocations for Enrollment $ 2, 167, 000 (Education Legacy Trust Account) Allocations: Instruction Distributions Non-Instruction Distributions $ 263, 117 236, 883 Faculty Salary Increase 1, 154, 000 Exempt Salary Increase 200, 000 Reserves for Enrollment Declines 313, 000

New Allocations By Executive Level Unit Academic Affairs Business & Finance Student Affairs University Advancement President’s Office Totals New State Enrollment $ 351, 351 87, 826 26, 457 14, 976 19, 390 $ 500, 000

New State Enrollment Distribution Education & Human Development $ -48, 624 Business & Public Administration -35, 078 Arts & Letters 36, 440 Social Work 75, 072 Social & Behavioral Sciences 104, 056 Science, Health & Engineering 131, 251 Total Instruction Distribution $ 263, 117

New Enrollment Distribution Academic Affairs Administration $ 35, 937 Library 26, 297 Information Technology 26, 000 Academic Affairs Total $ 88, 234 Business & Finance 87, 826 Student Affairs 26, 457 University Advancement 14, 976 President’s Office Intercollegiate Athletics Total Non-Instruction Distribution 7, 903 11, 487 $ 236, 883

FY 07 Salary Increases • Faculty Increase – 9. 45% across the board - $1, 279, 000 • • 3. 2% State Funded, 9/1/05 2. 0% Signing Increase, University Funded 1. 6% State Funded, 9/1/06 2. 65% University Funded, 9/1/06 – 1. 0% Signing Bonus, $300, 000 – Merit Pool, approx $80, 000 • Exempt increase – 3% across the board, 9/1/06 - $405, 000 • Classified increase – 1. 6% on July 1, 2006 - $232, 000

FY 2007 Budgeted Operating Revenues All Funds Fund Amount 001 51, 547, 040 149 32, 026, 000 148 16, 872, 613 4 xx 123, 892 5 xx 28, 494, 826 846 19, 942, 000 145 16, 011, 000 Total $165, 017, 371 Note: Service Funds figure does not include $4, 700, 426 in recharges.

State and Tuition (Ledger 1) Expenditures Instruction $ 42, 482, 429 Research 292, 696 Public Service 259, 302 Academic Support 5, 063, 204 Libraries 4, 642, 183 Student Services 8, 007, 984 Institutional Support 12, 292, 639 Plant Operations & Maintenance 10, 532, 603 Total Ledger 1 $ 83, 573, 040

Operating Budget FY 07 Non Ledger 1 Operating Budget

Dedicated Local Funds (Ledger 2) Revenues Expenditures Fund Balance Draw $16, 872, 613 17, 840, 245 967, 632 The dedicated local fund provides educational programs which support the mission of the university but that are not directly funded by the Washington State Legislature. Programs in this fund include Running Start, Summer Session, International Field Studies, Study Abroad, University Press, course fees and other continuing education courses. Expenditures exceed revenues due to the use of fund balances in the accounts. [Fund 148]

Service Funds (Ledger 3) Revenues/Recharges Expenditures/Deductions Projected Net Income $4, 824, 318 4, 788, 033 36, 285 The service activities or internal revolving funds provide goods and services for other university functions. Service funds include stores operations, printing and duplicating, workforce construction, telecommunication services, and motor pool. [Funds 440, 448, 450, 455, and 460]

ASEWU Funds (Ledger 3) Revenues/Additions Expenditures/Deductions Fund Balance Draw $2, 496, 006 2, 568, 430 -72, 424 This enterprise includes the operation of student government and provides funds for concerts, social activities, campus recreation, commuting services, student publications such as The Easterner, clubs and organizations and other associated student sponsored activities. [Fund 521 and 522] Expenditures exceed revenues due to the use of fund balances in the accounts.

Intercollegiate Athletics (Ledger 3) Self Support Revenues/Additions Expenditures/Deductions Projected Net Income State Support $4, 299, 988 0 2, 585, 629 The intercollegiate athletics fund includes program support costs, travel, and scholarships granted to student participants based on their athletic ability. [Fund 523]

Bookstore (Ledger 3) Revenues Expenditures Projected Net Income $6, 887, 144 6, 800, 078 87, 066 The bookstore serves the students with textbooks, supplies, computer hardware and accessories, gift items and EWU merchandise. [Fund 524]

Pence Union Building (Ledger 3) Revenues Expenditures/Deductions Projected Net Income $913, 218 908, 494 4, 724 The PUB provides a central gathering place that serves as the hub of college life for the university. It provides for services, conveniences, and amenities the members of the college family need in their daily lives on campus and for getting to know and understand each other through informal association outside the classroom. [Fund 570]

Parking (Ledger 3) Revenues $620, 000 Expenditures/Deductions 632, 967 Fund Balance Draw -12, 967 Parking services provides for the parking on campus, and promotes safety and customer services to faculty, staff, students and visitors. [Fund 572]

Housing and Dining (Ledger 3) Revenues Expenditures/Deductions Fund Balance Draw $13, 278, 470 13, 342, 299 -63, 829 The housing and dining program provides room, board and event planning services for students, staff and visitors of the university. It provides a safe, pleasant and well-maintained environment that supports the educational, personal and social growth of all residents. [Fund 573]

Scholarships and Fellowships (Ledger 5) 2003 -04 2004 -05 2005 -06 2006 -07 9, 540, 895 9, 245, 976 8, 850, 000 9, 000 (includes State Need Grant) 7, 154, 889 7, 497, 572 8, 850, 000 9, 000 EWU Grants 1, 470, 092 1, 477, 993 1, 463, 977 1, 467, 000 471, 662 463, 761 477, 777 475, 000 18, 637, 538 18, 685, 302 19, 641, 754 19, 942, 000 Federal Grants (includes Pell grant and the Supplemental Educational Opportunity Grant – SEOG) State Grants (includes EWU grant, endowed scholarships and license plate) Private Grants (foundation endowed scholarships) Total Scholarships and Fellowships include funds for student aid programs, some federal and state aid programs and privately endowed scholarships.

Sponsored Programs (Grants & Contracts) (Ledgers 4 & 5) 2003 -04 2004 -05 2005 -06 2006 -07 Federal 6, 393, 425 5, 508, 858 5, 431, 000 5, 688, 000 State 3, 049, 788 4, 549, 967 4, 295, 000 4, 640, 000 Local 2, 224, 936 2, 533, 231 2, 694, 000 2, 750, 000 Private 2, 375, 546 2, 368, 029 2, 285, 000 2, 396, 000 260, 098 461, 572 612, 000 537, 000 Other Total 14, 303, 793 15, 421, 657 15, 317, 000 16, 011, 000 Sponsored Programs include research grants, state work study funds, local grants, distinguished professorships.

FY 2006 -2007 Non Ledger 1 Funds Summary Revenues / Additions Expenditures / Deductions $16, 872, 613 $17, 840, 245 Service Funds (includes recharges) 4, 824, 318 4, 788, 033 ASEWU 2, 496, 006 2, 568, 430 Intercollegiate Athletics 4, 299, 988 Bookstore 6, 887, 144 6, 800, 078 913, 218 908, 494 Parking Housing & Dining 620, 000 13, 278, 470 632, 967 13, 342, 299 Scholarships & Fellowships 19, 942, 000 Sponsored Programs & Contracts 16, 011, 000 $ 86, 144, 757 $ 87, 133, 534 Dedicated Local Funds (Ledger 2) Pence Union Building Total

Operating Budget Expenditure Summary Educational and General State and Tuition Dedicated Local Funds, Service funds Total Educational and General $83, 573, 040 17, 927, 852 $101, 500, 892 Auxiliary Enterprises (including transfers) 28, 552, 256 Scholarships and Fellowships 19, 942, 000 Sponsored Programs 16, 011, 000 FY 07 Annual Operating Budget $166, 006, 148

Recommended Action It is recommended that the Board of Trustees approve the operating budget of $166, 006, 148 for fiscal year 2007, which begins July 1, 2006 and ends June 30, 2007.

Capital Budget

Patterson Hall Additional funds of $200, 000 were provided in the 2006 legislative session for pre-design of Patterson Hall.

Martin/Williamson Halls Additional funds of $200, 000 were provided in the 2006 legislative session for pre-design of Martin/Williamson Halls.

Recreation Center $23, 300, 000 for EWU Recreation Center

Local Fund FY 07 Capital Projects Housing & Dining Internet Upgrades $100, 000 Dormitory Furnishings $150, 000 Restroom Upgrades $150, 000 Misc. Emergent Needs $200, 000 Total $600, 000

Capital Budget Expenditure Summary Gardner-Evans Construction (357) Patterson & Martin/Williamson predesign EWU Recreation Center FY 07 Local Capital Projects FY 07 Supplemental Capital Budget $400, 000 23, 300, 000 600, 000 $24, 300, 000

Recommended Action It is recommended that the Board of Trustees approve the supplemental capital budget of $24, 300, 000 (which includes construction of the EWU Recreation Center) for the second year of the 2005 -07 biennium, which begins July 1, 2005 and ends June 30, 2007.