University Fiscal Challenges and Budget Actions Update

17/18 Budget Update - September 11, 2017 University Senate 1 1

Overview 1. The University is facing significant fiscal challenges not only for the next budget year but for the next several years. 2. This will require difficult actions to keep costs under control and it will limit our ability to fund new initiatives. 3. Most of these factors are beyond our direct control. 4. The end of the SUNY 2020 program has put a significant strain on our ability to fund operations. 5. The lack of State funding to cover negotiated salary increases only exacerbates the problems we face. 6. The maintenance of effort agreement between NYS and SUNY ensures that our funding will be kept flat (in terms of dollars) for 17/18, - 7. A slowdown in the growth of research dollars has led to a rapid depletion of IDC dollars available to fill budget gaps. 8. The Excelsior program passed this year as part of the State budget will have positive benefit for our students and their families but at this point an uncertain impact on our finances. 9. At $200, the new predictable tuition plan is $100 less per student than with SUNY 2020; Excelsior recipients will not pay these increases for four years. 2

Stony Brook University Uncommitted Fund Balances* FY13-14 through Projected FY17-18 $000's 3 4 5 6 Actual Forecast FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Appropriated Funds - VP Balances State Income Fund Reimbursable Dormitory Income Fund State University Tuition Reimbursement Hospital Income Fund HIFR-IFR DIFR-IFR * 16,158 3,269 3,854 (480) (7,700) 1,739 (22) 1,892 3,061 1,502 638 (312) 8,498 (4,701) 7,146 3,290 (647) (1,551) 956 (69) 4,423 (25,000) 7,000 4,000 1,000 (1,500) - - - - (14,500) (35,000) 7,000 4,000 1,000 (1,500) - 47 133 Subtotal 15,282 (24,500) *Excludes the following VP Areas: 11- Hospital, 12- LISVH, 50- Utilities, 60 - U-Wide and 98 - Central Fiscal Fund Management The projected FY 16/17 State balance is negative $25 million. Current encumbrance levels indicate a larger ending deficit (currently at $44 million). Data Source: Finance Office 3

17/18 Budget Actions 1) Salary Savings Plan - $14 million 2) 10% OTPS reduction $2 million - 3) Standardize the various tuition sharing plans 4) Please use existing balances to fund critical fiscal initiatives Visit the FAQs on the Budget Office website for more details on the 17/18 savings plans. Data Source: Budget Office 4

14/15 to 16/17 Base Budget Reductions to Fund Contractual Salary Increases FY 14/15 FY 15/16 FY 16/17 Total 8,069,426 $ 8,085,963 $ 2,000,000 $ 18,155,389 $ - The 17/18 CSI estimate is roughly $8 million (base) for State Purpose employees plus any costs retroactive back to 16/17 Each VP area has budgeted for the 17/18 costs in their budget, but the future contractual salary increases remain a concern 5

Where is the Change in State Purpose Employee FTEs Over the 08/09 Baseline? Change in FTE: FY 08/09 to 16/17 Total Change in State Purpose FTEs Non- Graduate Students Instructional Instructional VP Area Provost Health Sciences Center University Advancement Athletics School of Medicine Economic Development Div of Information Technology Executive Office Vice Pres for Research VP for Brookhaven Affairs Government & Community Relations University Hospital Communications Student Affairs Administration Sut-Total State Purpose FTEs Part-Time Trade Workers Total State Purpose FTEs * 196 19 38 18 27 21 (18) 14 53 288 42 27 22 19 15 5 0 (1) 2 (6) (1) 0 (4) (1) 43 2 0 1 (0) (0) 0 0 0 (1) 0 259 7 7 5 0 7 5 5 0 - (2) (6) (8) (12) (84) 7 32 39 (2) (6) (8) (17) (84) 311 32 343 (4) 0 45 ** 259 45 Data Source: Pyramid, Payroll 17 *The Provost non-instructional figure includes a 15 FTE increase for State-funded postdoctoral associates. **The trade workers are all part-time SFE workers (electricians, carpenters, etc.) 6

Historical State Budget: FY 08/09 to 15/16 $450 Millions Positive 6.7% Compound Annual Growth Rate [11/12 to 15/16] Negative 1.3% Compound Annual Growth Rate [08/09 to 11/12] $400 Compound Annual Growth Rate is leveling off to 1.1% [15/16 to 17/18] $350 - $300 $250 $200 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Est 17/18 Data Source: Budget Office 7

Project 50 Forward: Operational Excellence Project 50 Forward: Operational Excellence Total Savings $16,000,000 $13,791,000 $14,000,000 $12,811,000 $12,715,000 $11,616,000 $12,000,000 $10,443,000 $10,000,000 $8,000,000 - $6,000,000 $4,000,000 $2,000,000 $- 2011/12 2012/13 2013/14 2014/15 2015/16 Procurement / OTPS Organizational Data Source: Project Management Office 8

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