1

The University’s Finances - II

Spring Semester, 2010

2

Primary Budget Variables

•Revenue▫Pricing

Comp Fee Discount Rate Net Revenue per student

▫Enrollment▫Endowment▫Giving

•Expenditures▫ Salaries and Wages▫ Benefits▫ Expendables▫ Debt Service

3

Revenue Side of the Equation

4

2009-2010 Price Increases of the NCG

Kalam

azoo

Trinity

C

Kenyo

n

Ohio

Wes

leya

n

Allegh

eny

St. Law

renc

e

Muh

lenb

erg

Dickin

son

Carle

ton

Vassa

r

Woo

ster

+

Mac

ales

ter

Drew

Buckn

ell

Bates

+

Skidm

ore

Holy C

ross

Colby

Deniso

n

Colga

te

Conne

cticu

t+

Hob/W

m. S

mith

Mid

dleb

ury+

Getty

sbur

g

Hamilt

on

Whe

aton

, IL

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Median – 4% Mean – 4.2% SLU – 5%

5

• Vassar $51,470• Trinity $51,400• Bates $51,300• Skidmore $51,196• Connecticut $51,115• Colgate $50,940• Middlebury $50,780• Bucknell $50,320• Hobart/William Smith $50,245• Carleton $50,205• Dickinson $50,194• St. Lawrence $49,925• Hamilton $49,860

• Kenyon $49,410• Holy Cross $49,341• Gettysburg $48,500• Drew $48,385• Macalester $47,392• Denison $45,720• Muhlenberg $45,580• Wooster $44,280• Ohio Wesleyan $44,254• Allegheny $42,000• Kalamazoo $40,419• Wheaton, IL $35,496

Comprehensive Fees

St. Lawrence University Ranks 13th in the NCG

6

2009-10 Price Increases of Admissions Overlap

Group5.0% 4.9%

3.9% 3.9% 3.7% 3.6% 3.5%3.0%

Median =3.9% Mean = 4.1% SLU-5%

7

•Skidmore $51,196•Colgate $50,940•Union $50,440•Colby $50,320•Hobart/WS $50,245•Dickinson $50,194•St. Lawrence $49,925•Hamilton $49,860

Admissions Overlap Group

8

Comprehensive Fee Discount Rate

00 01 02 03 04 05 06 07 08 09 10 11 12 13 00 01 02 03 04 05 06 07 08 09 10 11 12 13

All Classes 33 32.7 34.5 35.9 38.3 38.5 37.4 36.4 35 34.6 34.9 35.3 35.6 35.5

1st Year Class

33.5 34.7 40.6 41.5 41.5 38.9 36.9 36.7 35.5 38.2 35.6 34.8 35.6 36.8

1st Year Tar-get

NaN NaN NaN NaN 40.4 39.4 38.4 37.4 36.4 35.4 34.4 33.4 32.4 35.6

31.0

33.0

35.0

37.0

39.0

41.0

43.0

Class of

9

NCG Estimated 2007-08Comprehensive Fee Discount

Mid

dleb

ury

Skidm

ore

Conne

cticu

t

Colby

Bates

Buckn

ell

Dickin

son

Trinity

C

H & W

S

Kenyo

n

Colga

te

Hamilt

on

Getty

sbur

g

Carle

ton

Whe

aton

Deniso

n

Vassa

r

CHoly Cro

ss

St. Law

renc

e

Allegh

eny

Mac

ales

ter

Muh

lenb

erg

CWoo

ster

Kalam

azoo

0%

5%

10%

15%

20%

25%

30%

35%

40%

10

SLU Net Comprehensive Fee Revenue/Student

91 93 92 94 95 96 97 98 99 01 00 02 03 04 05 06 07 08 09 10$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Fiscal Year

11

NCG 2007-08Comp Fee Revenue/Student

Mid

dleb

ury

Skidm

ore

Conne

cticu

t

Bates

Colby

Colga

te

Buckn

ell

Trinity

C

Dickin

son

Hamilt

on

Kenyo

n

Carle

ton

Getty

sbur

g

Vassa

r

CHoly Cro

ss

St. Law

renc

e

Deniso

n

H & W

S

Mac

ales

ter

Muh

lenb

erg

CWoo

ster

Allegh

eny

Kalam

azoo

Whe

aton

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

12

Enrollment (2 semester avg)

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 151000

1200

1400

1600

1800

2000

2200

2400

Fiscal Year

Projections Assume FY Class of 600

13

NCG 07-08 Enrollment (FTE)

Buckn

ell

Colga

te

Getty

sbur

g

Mid

dleb

ury

Muh

lenb

erg

Trinity

C

Denison

Drew

Carle

ton

Colby

Ham

ilton

Bates

Kalam

azoo

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

14

SLU FY to Sophomore Retention Rate

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 127476788082848688909294

Class of

Perc

en

t

Reached All Time High Retention Rate this Fall

15

Endowment Investment Performance

1984-85

85-86

86-87

87-88

88-89

89-90

90-91

91-92

92-93

93-94

94-95

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

$240

$260

$280

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

$50$63

$72 $72$80 $80

$86$97

$107$110

$126

$145

$172

$195$207

$214

$200

$174$170

$199$211

$230

$269

$245

$188

Year End Market Value Investment Return

16

Endowment Spending Model

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31100

120

140

160

180

200

220

240

260

280

300

Endowment MV Spending Base

$ in millions

Actual Projected

17

Giving

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

NCG 25th percentileNCG 25th percentile*NCG 25th percentile*

NCG 25th percentile*NCG 25th percentile*NCG 25th percentile*NCG 25th percentile*NCG 25th percentile*

NCG 25th percentile*NCG 25th percentile*NCG 25th percentile*

NCG 25th percentile*

NCG 75th percentile

NCG 75th percentile*

NCG 75th percentile*NCG 75th percentile*NCG 75th percentile*

NCG 75th percentile*NCG 75th percentile*

NCG 75th percentile*NCG 75th percentile*

NCG 75th percentile*

NCG 75th percentile*NCG 75th percentile*

NCG Median

St. Lawrence

St. Lawrence

NCG median and 25th & 75th percentiles are based on 25* institutions (not including St. Lawrence).The data reflected in this chart are self-reported and are not official CAE numbers and , therefore, are subject to change when those num -bers become available.**Do not release this data to the public. Preliminary replies are available for analysis by dataminer subscribers only. This data is not considered official until released by CAE in mid-February. For internal purposes only**

$14,228,754 Actual FY09

18

Expenditure Side of the Equation

19

Salaries, Wages and Benefits - 59% of Operating Budget

•Salaries total $46 million•Salary Policy

▫One more year of policy▫Policy level is NCG average increase plus

1%▫NCG Base is likely to be very small (<1%)

•Union Contracts▫Contracts end June, 2010

20

SLU Administrative Salaries vs. NCG

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

SLU

44415 45155 46168 47433 51557 53168 54525 56897 59500

NCG

48591 50806 51607 52408 54632 57350 58751 60840 62728

% variance

-8.6 -11.1 -6.6 -9.5 -5.6 -7.3 -7.2 -6.5 -5.1

5.0

15.0

25.0

35.0

45.0

55.0

65.0

-11

-9

-7

-5

-3

-1

Wei

ghte

d M

ean

Sala

ries

($

in 0

00's

)

% D

iffer

ence

Source: CUPA Admin and Mid-Level Salary Survey

5.35%5.45%5.45%

4.3% 3.4% 8.0%3.0%

Pool Increases:4.0% 5.1%

6.2%

21

SLU Faculty Salaries vs. NCG Median

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

SLU

50600

52500

54200

56600

57100

56600

57900

60000

62200

62600

65600

67000

70000

72200

75700

NCG

51800

53600

55600

57400

59600

59800

61400

64400

66300

67300

68000

70400

74100

76600

79900

% Variance

-0.023

-0.021

-0.025

-0.017

-0.042

-0.054

-0.057

-0.068

-0.062

-0.07 -0.035

-0.048

-0.055

-0.057

-0.053

5

15

25

35

45

55

65

75

85

-8%

-7%

-6%

-5%

-4%

-3%

-2%

-1%

Sala

ry $

in

Tho

usan

ds

% D

iffer

ence

fro

m N

CG

Pool Increases:

3.5% 4.8% 3.5%6.2%

1.5%3.0% 5.3%

5.45% 5.2%4.4%

8.6%3.1%

4.0%6.2% 6.1%

22

Benefits - $17M

▫Health Care - $4.2M▫Retirement Plan - $3.7M▫FICA - $3.2M▫Tuition Benefits - $3.1M

23

Expendables - $27M

•Utilities $4.6M•Food $3.2M•Travel (business and athletics) $3.4M•Fac & Equip maint/repair $2.4M•Int’l Program payments $2.0M •Print/copy/mail $1.9M

24

Debt Service

Original Interest* Principle** Total

2009-10 5.2 3.5 8.7

2010-11 5.0 3.5 8.5

2011-12 4.8 5.0 9.8

2012-13 4.7 5.0 9.7

2013-14 4.6 4.6 9.2

*Includes interest rate swap **Based on original payment schedule

$ in millions

25

Hi/Mid/Low Projection

$M 10-11 11-12 12-13 13-14 14-15 TotalImpact

5%* 77.1 80.0 83.3 88.0 92.5 -

4% 76.0 77.6 79.7 82.8 85.8 -19.0

3% 74.9 75.3 76.0 77.8 79.3 -37.6

Comprehensive Fee - Net Student Revenues

$M 10-11 11-12 12-13 13-14 14-15 TotalImpact

37% 76.8 79.4 82.4 86.7 91.2 -4.4

36%* 77.1 80 83.3 88 92.5 -

35% 77.5 80.7 84.3 89.3 97.9 8.8

Discount Rate – Net Student Revenues

*Indicates current variable value

26

Hi/Mid/Low Projection

$M 10-11 11-12 12-13 13-14 14-15 TotalImpact

625 77.9 81.4 85.5 90.5 95.1 9.5

600* 77.1 80.0 83.3 88.0 92.5 -

575 76.3 78.4 80.9 84.6 88.9 -11.8

Enrollment – FY Class Size – Net Student Revenues

$M 10-11 11-12 12-13 13-14 14-15 TotalImpact

9% 11.7 10.8 10.9 11.3 11.8 0.7

8%* 11.7 10.7 10.8 11.1 11.5 -

7% 11.7 10.7 10.8 11.0 11.3 -0.3

Endowment Return – Formula Income

*Indicates current variable value

27

‘Best’ & ‘Worst Case’ – FY2010-11Best Case Base Case Worst Case

Comp Fee Incr.DiscountFY Class

5%35%625

5%36%600

3%37%575

Revenues Comp Fee Discount Enrollment

-+0.4+0.8

$108.2M $107.0M

-2.2-0.4-0.8

103.6

Expenditures $106.0M $111.0M $111.0M

Net Operations $2.2M -$4.0M -$7.4M