University Fiscal Year 2022 Budget Update and Planning Highlights

University Budget Update Fiscal Year 2022 Faculty Town Hall: Fall Semester July 30, 2021 1

Agenda Fiscal Year 2022 Budget Planning State Biennium Budget: 2022-23 Guiding Principles Fiscal Year 2022 Key Planning Assumptions Revenues Expenses Fiscal Year 2022 Budget Development Timeline 2

Fiscal Year 2022 Budget Planning The state operating budget cycle for biennium 2022-23 has concluded: State Share of Instruction (approximately 1% increase in each fiscal year) Tuition and fee caps (Tuition Guarantee increase of 3.8%) Board approved 2.9% for incoming freshmen cohort at the June 2021 meeting Ohio College Opportunity Grant ($500 increase per student award) Our guiding principles for the FY2022 budget: Focus on core activities: access/completion/research (creative activities)/employee well-being Limit new hires so that we can provide raises to non-represented employees and offer other work-life enhancements Continue to limit administrative and non-academic expenditures through reorganization, shared services, and the like Preserve our sound financial position (budget expenses to projected operating revenues) 3

For Fiscal Year 2022, we continue to Plan for the Worst and Work for the Best. Overall, it appears that total revenues for the Kent and Regional Campuses will decrease slightly due to a decline in enrollment while auxiliary revenues will increase significantly due to resuming more normal on-campus operations, student life, and athletic competition. Fiscal Year 2022 Key Revenue Assumptions Enrollment: Kent Campus: 5% decline in headcount from FY2021 Regional Campuses: 6% decline in headcount from FY2021 Tuition Increases: New cohort on Tuition Guarantee Program (2.9% increase over Fall 2020) No other tuition or fee increases (undergraduate, graduate, non-resident surcharge) State Share of Instruction (SSI) increase: $1.5 million compared to FY2021 Investment Income: $12 million is proposed to support operations Auxiliaries: Dining Plan participation and Residence Hall occupancy 5,000+ students compared to 2,800 in Spring 2021 Athletics external revenue sources (guarantee games, NCAA, MAC) back to FY2020 levels 4

For Fiscal Year 2022, we continue to Plan for the Worst and Work for the Best. We will balance expenses to projected revenues as we: 1. focus resources to core activities (access, completion, research), 2. maintain current staffing levels while concurrently increasing wages and benefits, and 3. continue to revamp the university operating cost structure. Fiscal Year 2021 Key Expense Assumptions Wage Increases: In accordance with Collective Bargaining Agreements Non-represented: 2% effective October 1, 2021 Healthcare benefits: No increase in budgeted amount compared to FY2021 Represents the cost of inflation offset by fewer employees on the healthcare plans Scholarships: Ongoing financial aid optimization (needs and merit-based aid) New funding provision for the Flashes Go Further Program for the new freshman cohort Auxiliaries: Alignment to conservative revenue projections 5

Fiscal Year 2022 Budget Planning Timeline and Milestones Preliminary revenue projections for tuition, fees, enrollment, SSI, scholarships, Initial projection for auxiliary revenues including general fee allocation Calculation of RCM revenue and targets Preliminary expenditure assumptions Meeting with FaSBAC Deans and Vice Presidents begin budget development process April 2021 (COMPLETED) Deans and Vice Presidents prepare initial budgets Board Authorization of Expenditures for FY22 at FY21 level Board approval of tuition and fees, room and board rates May 2021-June 2021 (COMPLETED) Final revenue projections for enrollment, scholarships, auxiliary, and general fee allocation Deans and Vice Presidents update budgets based upon final projections July 2021 (IN PROCESS) Compile initial university budget Stakeholder engagement (Deans, Cabinet, FaSBAC, Chairs & Directors) Board budget briefings Board consideration and approval of university budget August 2021 September 15, 2021 6

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