The document summarizes Florida International University's 2009 budget town hall discussion. It provides an update on state legislative budget cuts, outlines proposed budget reduction plans for academic and non-academic areas, and discusses strategies for addressing a cumulative budget gap over three years, including program closures and staff reductions. The discussion focuses on using one-time federal stabilization funds strategically and implementing incremental multi-year budget cuts across the university.
2. THE FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
Update from Last Town Hall Meeting
Legislative Budget Update
Federal Stabilization Fund
E&G Budget Reduction Proposed Plans
Proposed Plans Academic Affairs
Proposed Plans Non-Academic Affairs Operations
Strategic Evolution of the University
Devolution
Compliance
Next Steps: Timeline
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3. LEGISLATIVE BUDGET UPDATE
Positive Unfavorable
Outcomes Impacts
Tuition increase of 8% for undergraduate Net 15% General Revenue reduction
Undergraduate differential tuition up to 7% $29M recurring reduction
additional
Offset by $1.2M non recurring
College of Medicine 100% funded
Lotto funds reduction of $2.5M - uncertainty
$10.9M additional recurring funds about future collections
$.9M one time Federal Stabilization funds PECO funding reduced by $31.2M over last
year
Additional ONE TIME funding from Federal
Stabilization fund $14M No funding for Courtelis Facility and
Challenge Grants
Excluded from 2% state employee salary cut
RESULT : CONTINUE WITH BUDGET REDUCTION PLANS
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4. RESTRICTIONS ON EDUCATION STABILIZATION FUNDS
Federal Guidelines
One Time Funds As Temporary Bridge
Possible Education and General expenditures
Uses Modernization, renovation, or repair of instructional, research, or
student housing facilities
Endowments
Prohibitions * Maintenance of systems, equipment, or facilities
Maintenance costs, new construction, modernization of athletic
facilities or religious facilities
Restoring or supplementing a quot;rainy dayquot; fund
Strategically directed to strengthen FIU going forward
on non recurring critical investments
Source: Guidance on the State Fiscal Stabilization Fund Program, U.S. Department of Education Washington, D.C. 20202, April 2009 (Page 26-30)
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* The list of prohibitions is not meant to be all-inclusive; uses and prohibitions are also subject to ARRA (American Recovery and Reinvestment Act) and
other applicable requirements.
8. THE FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
Update from Last Town Hall Meeting
Legislative Budget Update
Federal Stabilization Fund
E&G Budget Reduction Proposed Plans
Proposed Plans Academic Affairs
Proposed Plans Non-Academic Affairs Operations
Strategic Evolution of the University
Devolution
Compliance
Next Steps: Timeline
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9. THREE YEAR ROLLING PLAN
Operating Gap
Cumulative Amounts
UNITS' CUTS ADDITIONAL
NET GAP
08‐09 plan CUTS
08‐09 ($15.0) $15.0 Done
09‐10 ($34.6) $23.2 $11.4
10‐11 ($48.7) $35.7 $13.0
11‐12 ($53.3) $35.7 $17.6
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10. ACADEMIC AFFAIRS GROUP STRUCTURE
Criteria Relative Importance / Definition
Strategic to FIU 10 As defined in FIU strategic plan
Return on Investment 7 Total of all funding divided by E&G support –
tuition, research, gifts, and auxiliaries
Cost 5 College level analysis using Delaware study
benchmark
Faculty Investment 3 Faculty cost plus startup dollars expectation
PhD Production 2 Three year average PhDs awarded divided
by Tenure-Tenure track faculty
11. ACADEMIC AFFAIRS BUDGET REDUCTION PLAN
ADDITIONAL BUDGET
REDUCTION PLAN
Cumulative Percentages
09-10 10-11 11-12
Group 1 (overall score > 60) 3.3% 3.6% 5.0%
Arts & Sciences (64), Business (61), Engineering &
Computer Sciences (64), Public Health & Social Work (66)
Group 2 (overall score 40 – 59) 4.1% 4.6% 6.2%
Hospitality (54), Nursing & Health Sciences (54),
Education (49)
Group 3 (overall score < 39) 5.1% 5.6% 7.7%
Architecture & the Arts (38), Journalism (37), Law (38)
Group 4 (overall score not applicable) 5.3% 5.9% 8.0%
Library, Honors, Museums, Student Affairs and
all other Provost areas
Reductions for planning purposes, subject to change
12. ACADEMIC AFFAIRS CUT STRATEGIES
Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M
Shift to Other Funding/Revenue Lower Operational
Sources Costs
• Private support for museum • Consolidate or reduce administrative functions – Eliminating
operations Continuing and Professional Studies; 4 Vice Provost positions
• Reallocate operating expenses to • Consolidate six departments into three
grants, overhead and fees
• Reduce library purchases, reduce travel, service hours in
enrollment services, convert print materials to library on line
access, computer replacements, marketing in select programs,
recruitment events, permanent and temporary staff
• Change instructional mix of summer courses, decreased use
of adjuncts due to enrollment strategy, increase class size,
eliminate faculty through vacancy, attrition
Impacts 66 Positions: Saves $9.3M
Saves $3.4M Attrition 25, Vacancy 19, Elimination 22 12
13. ACADEMIC AFFAIRS CUT STRATEGIES
Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M
Degree Program
Closure
Education Arts & Sciences
Recreation &Sports Management ( B-62, M-19) Religious Studies (B-87,M-33)
English Ed MAT (M-6) Mathematical Sciences (B-24)
French Ed (B-0)
French Ed MAT (M-2)
Mathematics Ed MAT (M-4) Nursing & Health Sciences
Science Ed MAT (M-2) Athletic Training (M-25)
Social Studies Ed MAT (M-5) Occupational Therapy (B-0)
Spanish Ed (B-0) Physical Therapy (M-0)
Spanish Ed MAT (M-0)
*Adult Education (M-9)
*Adult Education & Human Resource Development (D-27)
*Higher Education Administration (M-82,D-53)
*International Education (M-19)
Degree level: B – Bachelor ; M – Master; D - Doctorate
*Urban Education (M-11)
*Degrees will be subsumed under existing degree program
Impacts 20 positions: Saves $1M
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Elimination 20
14. NON-ACADEMIC AFFAIRS OPERATIONS*
BUDGET REDUCTION METHODOLOGY
Group 1: Compliance and University-Wide Strategic Projects
Examples: Equal Opportunity Program, IT Security, BioChemical Receiving
Prioritization
Group 2: Essential Services where service will be reduced or contractual
commitments renegotiated
Examples: Media Technology Services, Disaster Recovery, PeopleSoft
Group 3: Areas where efficiencies gained from a change in current
business processes or in customer service delivery method
Examples: Purchasing Services, Student Payment Services (Online)
Group 4: Less Essential Services where current levels cannot be afforded
Example: Groundskeeping
Planned cuts range from 1% to 7% by FY 2011-12
Incremental
Planned Cuts Group 4 cuts could exceed 35%
$3.7M in additional cuts
58 Positions: 7 Attrition, 22 Vacant, 29 Eliminated or Reassigned
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*Includes Finance & Administration, Advancement, Community Relations, General Counsel, Government Relations, BOT Office, President’s Office
15. THE FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
Update from Last Town Hall Meeting
Legislative Budget Update
Federal Stabilization Fund
E&G Budget Reduction Proposed Plans
Proposed Plans Academic Affairs
Proposed Plans Non-Academic Affairs Operations
Strategic Evolution of the University
Devolution
Compliance
Next Steps: Timeline
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16. HIDDEN BUDGET CUTS
Flexibility gained from devolution and strategic research mission
requires annual critical investments of $18.2M and 144 FTE
“Be careful what you ask – you may just get it”
Devolution Compliance
Process Permeates the culture of the institution
2001 Statute* abolishes Board of Regents and through evolving research compliance,
authorizes Board of Trustees federal regulatory requirements and SACs
Transitioned information systems and treasury accreditation, NCAA
operations
Research
HIPAA, grant administration, controlled
Incremental Functions
substances, human subjects
Board of Trustee Office and Support
Student/Employee
Information Systems – Financials and Payroll International, confidential information,
Treasury Operations bargaining, IT security, emergency
management, athletics
SACS
Credentialing, assessments, QEP
Unfunded Costs (estimated) Unfunded Costs (estimated)
Recurring costs of $5.7M annually Recurring costs of $12.5M annually
Incremental 25 FTE Incremental 119 FTE
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*2001 Statutes :229.002(1)(f), 229.003(5)(a), 229.008 (1-9). 2002 Statutes: 1011.40(2), 1011.4105 (1-5)
17. PERSONNEL GROWTH
Analysis of personnel growth from 2002 to 2008
E&G Faculty increased 85 positions
E&G Administrative personnel grew 88 positions
Non E&G positions grew by 105, funded from self sustaining
operations (C&G, Auxiliary, and Student Fees)
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18. TIMELINE
May 26 Faculty Senate Meeting
Recommendations on program closures
June 1 Board of Trustees Budget Workshop
June 8 Governor’s Veto period expires (approximately)*
June 12 Board of Trustees Meeting
Please send all comments, questions and ideas to President Maidique at presmail@fiu.edu
* Governor must sign or veto legislation within 15 days of receiving the bill. As of May 13, 2008 the governor had not received the appropriations bill. 18