UNIVERSITY OF WEST FLORIDA BUDGET CUTS 2009/10

Sara M. Surber

State of Florida in Economic Turmoil

Unemployment increased by 137% in past 2 years

Residential growth plateaued over last 3 years

State revenue from retail sales down

Factors Contributing to Budget Cuts

Area: Florida Area Type: Statewide State/Region/Division: Florida

Source: Bureau of Labor Statistics, Databases

Factors Contributing to Budget Cuts

Year Period Unemployment Rate Year Period Unemployment Rate

2008 Jan 456,883 5.0 2009 Jan 813,604 8.8

2008 Feb 476,021 5.2 2009 Feb 885,991 9.6

2008 Mar 494,480 5.4 2009 Mar 900,910 9.8

2008 Apr 513,568 5.6 2009 Apr 893,746 9.7

2008 May 534,107 5.8 2009 May 953,627 10.3

2008 Jun 555,013 6.0 2009 Jun 980,130 10.7

2008 Jul 581,658 6.3 2009 Jul 999,011 10.8

2008 Aug 601,194 6.5 2009 Aug 994,125 10.8

2008 Sep 617,921 6.7 2009 Sep 1,017,835 11.1

2008 Oct 644,606 6.9 2009 Oct 1,035,092 11.3

2008 Nov 674,892 7.2 2009 Nov 1,063,615 11.5

2008 Dec 708,927 7.6 2009 Dec 1,087,143 11.8

Source: US Census Bureau, United States Dept. of Labor

Factors Contributing to Budget Cuts

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Florida: No-Growth State

Est. 2006Est. 2009

Source: US Census Bureau, Population Estimates Program

Tot

al P

opul

atio

n

Factors Contributing to Budget Cuts

Revenue sources from taxable retail sales have continued to decline.

Sales have decreased by $7 billion from July 2006 to July 2009.

Economists estimate sales will decrease by another $1.2 billion by July 2010.

Source: Florida Taxable Retail Sales, 1/90-7/09, SA

University Budget Adjustments

UWF received a 9 percent reduction from state legislature.

Administration made cuts strategically; not across the board.

University received $4.5 million in non-recurring federal stimulus money.

Utilizing stimulus money and making strategic cuts enabled UWF to plug the budget from 9 percent to 7 percent.

Source: PresSpeech-090930-State_of_the_University_Address

University Budget Adjustments

NACUBO Classification Reduction

Direct Instruction 5.75 %

Academic Support 6.5 %

Student Support 6.75 %

Public Service 8 %

Research 8 %

PO&M 10 %

Institutional Support 10.07 %

Source: PresSpeech-090930-State_of_the_University_Address

University Budget Adjustments

57%

32%

5% 6%

Sales

General RevenueStudent Fee TrustFederal Stimulus FundsEducational En-hancement(Lottery)

Source: PresSpeech-090930-State_of_the_University_Address

University Budget Adjustments

Ramifications of reductions : 26 staff members were laid off Undergraduate tuition raised by 15 percent 40 faculty members(instructors) quit More adjuncts were hired for direct instruction University launched visibility campaigns to grow

and retain student body

Visibility CampaignsCreating Great Futures

• Campaign launched September 25, 2007• Raised $37 million and counting to support

scholarships, facilities, and programsSource: newsletter_spring2009

Visibility Campaigns

Athletic Awareness Student Recruitment: Aug.-Nov. 2009

-Launch: Sept. 21, 2009 Spring Recruitment Campaign: Jan.-Apr. 2010

-Launch : Jan. 20, 2010 Summer Online Campaign: Feb.-Jun. 2010

-Launch: Mar. 8, 2010 Fall Recruitment Campaign: July-Oct. 2010

-Launch: Sept. 15, 2010

Future Trends

In 70s students covered one-third the cost of running the university through tuition and fees.

In 80s state supplemented funding to higher education with the lottery.

Currently students are providing only one-fourth of costs through tuition and fees while the lottery fails to generate enough funds.

State is moving toward raising tuition to cover one-half of university expenses.

Source: Thomas, B.PNJ, 2009

Future Trends

FY 2008 FY 2009 FY 20100%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Federal StimulusStudent Fee Trust FundEducational En-hancement(Lottery)General Revenue

State Support Tuition Increase

Source: PresSpeech-090930-State_of_the_University Address

OVERVIEW

Economic

Factors

•Unemployment•No-Growth•Declining Revenue SourcesBudget

Adjustments

• Discounted Student Services

• Tuition increase• Visibility

CampaignsRelevance

•Enrollment Growth•State supported to Assisted•Further Tuition Increases