APPROVED JULY 11, 2017 - Temple University

APPROVED JULY 11, 2017

PROPOSED BUDGET FISCAL YEAR 2017-2018

PROPOSED BUDGET FISCAL YEAR 2017-2018

Introduction: The FY2018 budget reflects Temple University's strong and continued commitment to access and affordability. As such, Fly in 4 and the Temple Option remain essential components of the university's admissions and retention strategies.

This year's budget includes a base tuition increase of 2.5% and no increase to mandatory fees. This represents the lowest base tuition increase in three years. To further demonstrate a commitment to affordability, the budget provides for additional support for scholarships. Other changes to the budget are intended to bolster student services in the areas of mental health, conduct and academic support.

The decentralized budget model (RCM) implemented in 2014-2015 has incentivized administrative and academic units to operate more efficiently and to identify opportunities to responsibly grow revenue. Combined these actions help to reduce the cost of attendance and future student indebtedness.

The 2017-2018 proposed budget is presented in appendix A.

Proposed Fiscal Year 2017-2018 Budget: The University Operating Budget for fiscal year 2017-2018 has been developed according to the following assumptions and principles:

Revenue Changes: Tuition and fees will be moderately increased to cover the standard growth in operating costs.

Changes to the budget are based upon considerations for inflation and the overall economy, labor contracts, comparison with peer institutions, pricing accessibility, campus infrastructure, student services, and the impact on student indebtedness.

The following conditions are used for the calculation of the revenue:

o Undergraduate tuition will be increased 2.50% for both resident ($384) and nonresident ($648) students.

o Active tuition differentials, approved by the Board, will be implemented in accordance with the next programmed step as outlined in their implementation plan.

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o One new tuition differential is included in the proposed budget, a $500 differential for the College of Engineering.

o Graduate and Professional Schools' tuition will be adjusted according to market conditions and in comparison with peer institutions.

o For fall 2017, the incoming class is expected to be 114 less than the incoming fall 2016 class or 50 less compared to the FY2017 budget.

Tuition and fee revenue from all sources is expected to increase by $57.5 million. The fiscal year 2017-2018 tuition schedule may be found in appendix B.

At $150.6 million, the Commonwealth Appropriation is projected to remain flat from 20152016. There is an adjustment in the budget to reduce the budget to $150.6 million to match the current enacted appropriation. The 2016-2017 budget, included an over-estimate of increased funding from the Commonwealth by $3.6 million.

Auxiliary enterprise and Medical and Dental practice plan revenues in total will decrease by $2.1 million. Auxiliary enterprise will increase by $7.2 million and the Dental practice plan will increase by $.1M, however the Medical practice plan will decrease by $9.2 million due to a reduction in Manage Care Organizations.

Revenues from other income sources including indirect cost recovery will increase by $1.9 million.

The total increase in university non-health revenues for fiscal year 2017-2018 from all sources will be $53.7 million.

Expense Changes:

Funding in the 2017-2018 budget was limited to those items necessary to maintain the current operations as well as strengthen compliance and research. Meeting the obligations under collectively bargained labor contracts continues to be a main driver of the change in expenses.

Expenditure changes include:

Financial Aid ? to reflect the proportional increase relative to the changes in tuition. The overall increase to the base budget of financial aid will be $5.4 million.

Salary ($15.4 million) and Benefits ($6.1 million) ? required changes relative to bargaining units, discretionary merit based increases for non-bargaining employees and changes in employee benefit costs for all employees - $21.5 million.

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 General Expenditures ? changes in expenditures including the allocation of tuition differentials to schools and colleges, increases in the plant development fund, increases in energy, and increases in research incentives ? $25.5 million.

Strategic Investments - changes for new facilities and strategic investments for student conduct, student mental health, and student financial wellness - $3.4 million.

Auxiliary Enterprise and Medical & Dental Practice Plans ? auxiliary enterprise expenses are expected to increase $7.2 million due to increases in operations based upon additional revenue generation. The Medical practice plan is expected to decrease their expense budget by $9.2 million due to changes in Manage Care Organizations funding ? $-2.1 million.

Compliance ? funding for a compliance office including a Compliance Officer will be funded through a reallocation of existing budget.

The total increases in university operating expenditures for fiscal year 2017-2018 from all sources will be $53.7 million. Summary The 2017-2018 proposed budget strengthens Temple University's commitment to accessibility, affordability, excellence, diversity and cost containment.

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TEMPLE UNIVERSITY FY2018 Proposed Operating Budget

Revenue: 1. Tuition and Fees 2. Commonwealth Appropriation 3. Indirect Cost Recovery 4. Other Sources

5. Total Education and General Revenue

6. Auxiliary Enterprises 7. Practice Plans

8. Total Other Revenue

9. Total Revenue

Expenditures: Revenue Centers

10. Academic Revenue Centers 11. Non-Academic Revenue Centers 12. Total Revenue Centers

Support Units 13. President 14. Provost 15. Chief Operating Officer 16. Vice President, CFO and Treasurer 17. Total Support Units

18. Total Expenditures

19. Budget Margin

APPENDIX A

FY2018 Proposed Budget

$

920,207,862

150,586,000

37,621,000

23,490,138

1,131,905,000

$

111,327,000

199,169,000

$

310,496,000

$ 1,442,401,000

$

758,598,411

86,129,341

$

844,727,752

$

58,052,572

250,801,273

184,878,759

103,940,644

$

597,673,248

$ 1,442,401,000

$

-

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TEMPLE UNIVERSITY FY2018 Proposed Operating Budget

Academic Revenue Centers 20. Beasley School of Law 21. Center for the Performing and Cinematic Arts 22. College of Education 23. College of Engineering 24. College of Liberal Arts 25. College of Public Health 26. College of Science and Technology 27. Fox School of Business 28. Klein College of Media and Communications 29. Kornberg School of Dentistry 30. Lewis Katz School of Medicine 31. School of Pharmacy 32. School of Podiatric Medicine 33. School of Tourism and Hospitality 34. Tyler School of Art 35. Provost Sponsored Programs

36. Total Academic Revenue Centers

Non-Academic Revenue Centers 37. Other Auxiliaries 38. Bookstores 39. Liacouras Center 40. Parking Services 41. Residence Halls

42. Total Non-Academic Revenue Centers

43. Total Revenue Centers

APPENDIX A

FY2018 Proposed Budget

$

26,780,115

28,184,009

15,469,926

20,331,160

70,121,738

37,296,617

54,473,665

109,609,246

19,925,864

32,672,619

275,323,392

16,487,981

12,143,330

8,584,776

19,927,008

11,266,965

$

758,598,411

$

687,011

510,000

2,523,500

5,649,727

76,759,103

$

86,129,341

$

844,727,752

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TEMPLE UNIVERSITY FY2018 Proposed Operating Budget

Support Units President

44. Office of the President 45. Vice President for Public Affairs 46. Office of the University Secretary 47. Center for Equity and Inclusion 48. Internal Audit 49. Government Affairs 50. Office of University Counsel 51. Vice President for Research 52. University Marketing 53. Institutional Advancement

54. Total President

Executive Vice President, Provost 55. Office of the Provost 56. Vice Provost Faculty Affairs 57. Temple Press 58. International Affairs 59. Rome 60. Enrollment Management 61. University College 62. Vice Provost for U/G Studies 63. Graduate School 64. Student Affairs 65. Libraries 66. Computer Services 67. Financial Aid

68. Total Executive Vice President, Provost

APPENDIX A

FY2018 Proposed Budget

$

9,376,102

877,067

328,029

1,208,914

1,190,813

2,051,752

6,092,019

8,970,643

10,818,305

17,138,928

$

58,052,572

28,016,799 2,607,570 1,727,739 5,093,942 5,191,559 6,099,288 7,070,622 6,576,086 9,577,864 12,484,039 23,389,088 29,929,458 113,037,219

$

250,801,273

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TEMPLE UNIVERSITY FY2018 Proposed Operating Budget

Executive Vice President, COO 69. Office of the EVP, COO 70. Business Services 71. Purchasing 72. Environmental Health and Safety 73. Recreation Services 74. Real Estate/WRTI 75. Campus Safety 76. Intercollegiate Athletics 77. Facilities Management 78. Central Accounts

79. Total Executive Vice President, COO

Vice President, CFO and Treasurer 80. Office of the VP, CFO & Treasurer 81. Digital Document Services 82. OWLCard Office 83. Risk Management 84. University Budget Office 86. Controller's Office 85. Human Resources 87. Institutional Expenses

88. Total Vice President, CFO and Treasurer

89. Total Support Units

APPENDIX A

FY2018 Proposed Budget

$

1,084,735

466,039

1,351,675

2,459,109

5,019,007

11,362,534

26,152,080

28,851,169

43,667,599

64,464,812

$

184,878,759

$

4,689,673

95,000

420,000

532,011

979,874

4,560,256

5,643,509

87,020,321

$

103,940,644

$

597,673,248

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