As Ohio University’s fall financial review meetings come to an end, the Budget Planning Council prepares to undertake discussion regarding projections for the 2020 fiscal year and forecasts for the 2019 fiscal year.
Results for fiscal year 2018
Final assumptions regarding fiscal year 2020 will be made in December as more data becomes known throughout the year, Katie Hensel, OU budget director, said. Budget changes in revenue and expenses are dependent on upcoming elections.
“If in November we get an indication that our state (financial) support might be changing positively or negatively, we could change our planning assumption in December,” Hensel said. “The same thing is true for our tuition. If we get an indication that there may be some ability to raise tuition, we would make that decision in December.”
The university performed better in both budgeted revenues and expenses for 2018, Vice President for Finance and Administration Deb Shaffer said October’s Board of Trustees meeting. Revenues include net graduate and undergraduate tuitions; state appropriations; room and board; grants; private support and internal and external sales, according to the university budget book.
Results for Fall 2018 enrollment decreased 3.9 percent. Approximately 4,000 freshmen joined the university, a 1.6 percent decrease from last year. Regional campuses had a student enrollment decrease of 6.8 percent.
Tuition revenue was also influenced by tuition caps that slow revenue by limiting the amount an institution can increase tuition from year to year. Fiscal year 2019 is the fourth year of a zero percent tuition cap for state universities in Ohio and the second year of zero percent statewide appropriation growth to universities, according to the university budget book. Net graduate tuition revenue for 2018 totaled $10,000, and net undergraduate tuition revenue totaled $30.3 million.
Results for auxiliary revenues for room and board in 2018 were $92.2 million total, $700,000 away from the projected revenue of $92.9 million.
“Revenues and expenses align closely with the budget. (While) external sales and grants also align, they happen in the academic sphere,” Shaffer said. “Auxiliaries did slightly better on revenues, driven by additional gifts of $2 million.”
Forecasts for fiscal year 2019
Results for fiscal year 2019 are not yet concrete, but first quarter results indicate the numbers will be better than what’s been budgeted, Shaffer said.
The Board of Trustees also approved budget and revenue net transfers for operating activity for 2019. This includes net transfers and draws on reserves.
For example, data for various colleges within OU suggests that there will be a contribution budget of $4.6 million to a $2.2 million surplus, Shaffer said. Though the budgets and forecasts are consolidated into all colleges within the university, it is likely there will be different results for each college.
Additionally, another meeting will take place in which updates will be provided by the Benefits Advisory Council, Hensel said. The council will give an update on the status of benefit OU provides as a university in addition to the anticipated incremental costs for things like health insurance and benefit position for the upcoming fiscal year.
Planning for fiscal year 2020
“Going into November is when we start looking at possible rate increases from both our auxiliary units as well as what we want to start planning for tuition increases as we head into fiscal year 2020,” Hensel said.
Net undergraduate enrollment assumptions suggest that 16,688 students will enroll, compared to the Fall 2019 projected number of 16,992. Changes will be made to budget planning, however, depending on the actual amount of students that enroll, Shaffer said.
Projected net tuition for fiscal year 2020 is $170.1 million with financial aid projected at $58.3 million.
Colleges within OU are in the process of submitting fiscal year 2020 initial budget planning. The initial plans will be reviewed and sent back to the college planning units for further review.
