1

Faculty MeetingBudget Presentation

January 24, 2011

2

Fall 2010 Long Term Model Projections

2011 2012 2013 2014 2015 2016$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

RevenueExpenditures

$ in

Mill

ions

Starting Long-Term Model Outcomes

3

2011 2012 2013 2014 2015 2016-$6,000

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

Fall 2010 Net Outcome

$ in

Mill

ions

4

Budget Committee Actions

• Operations expenditure reductions• Faculty & Staff compensation increase

reduced• Utility and Food Service increase reduced• Additional $250K in Access Scholarships

not funded to preserve international student funding

• Additional students added as smoothing is phased in

• Improvement in annual fund projections

5

Prior Budget Relief Proposal Discussions

• Operations budget reductions• Implement additional R3 action (strategic planning)• Wage increase reductions• Add new summer programs• Delay PDA restoration• Staffing reductions• Delay 5-course teaching load restoration• Reduce financial aid• Smooth enrollment across terms• Reduction in international student financial aid• Significantly increase enrollment (100+)

Current Long-Term Projections

6

2011 2012 2013 2014 2015 2016-$6,000

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

January 2011 Net OutcomeFall 2010 Net Outcome

$ in

Mill

ions

7

Fee Sensitivity (FY2013-2016)(lower increase by 1%/year)

2011 2012 2013 2014 2015 2016-$6,000

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

January 2011January 2011 w/ Lower Fee

$ in

Mill

ions

8

Compensation Sensitivity (FY2013-2016)(Increase by 1% per year)

2011 2012 2013 2014 2015 2016-$6,000

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

January 2011

January 2011 w/ Higher Comp

$ in

Mill

ions

9

Lower Fee with Increased Compensation

2011 2012 2013 2014 2015 2016-$6,000

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

January 2011January 2011 w/ Lower Fee & Higher Comp

$ in

Mill

ions

10

Faculty Salary

1 2 3 4 5 6 1 2 3 4 5 6 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 290

20000

40000

60000

80000

100000

120000

140000

160000

Carleton Median and Estimated 20-Peer Mean Faculty Salary, by Years in Rank

Estimate of 20 peers '08-09 mean 90% of mean110% of mean Carleton median by years in rank

Sala

ry (

$)

Assis-tant

Associate <------------------------------------------Full ---------------------------------------->

11

FY2012 Proposed Budget

12

Discussion Topics

• Do you agree with the proposed phase-out of Access scholarships (subject to monitoring of yield rates by AFAC), using those monies to fund international scholars (with no special emphasis on Asia?)

• What should Carleton’s long-term priorities and objectives be over the next 5-10 years?

• What should our budget priorities (tuition, compensation, financial aid, profile of entering class, etc.) be over the medium (say, 5-year term)?

13

Discussion Topics - Continued

• What trade-offs between these budget items do you think we should consider, and by what process should we make decisions about them?

• What things should we consider cutting (or reducing the growth of) over that same period?

14

Breakout Discussion