U-M Ann Arbor Campus2019–20 General Fund Budget

B O A R D O F R E G E N T S | J U N E 2 0 , 2 0 1 9

U-M’s Mission

To serve the people of Michigan and the world through preeminence in creating, communicating, preserving and

applying knowledge, art, and academic values, and in developing leaders and citizens who will challenge the present and enrich

the future

22

3

Long-Term Budget Priorities

3

Fiscal Discipline

AcademicExcellence

Access &Affordability

• Tuition Restraint• Investment through Reallocation• Philanthropy

• Academic & Curricular Innovation• Student Success• Faculty Excellence• Innovative Research & Discovery

• Need-Based Financial aid

4

Academic & Curricular Innovation

4

Example:

College of LSA’sNew Quantitative

Methods and Social Science Initiative

5

Student Success

5

Example:

School of Information’s iSuccess Initiative

6

Faculty Excellence

Example:

Hiring in high demand and strategic areas such as:• Computer Science &

Engineering• Data Science• Environment & Sustainability• Biosciences

6

7

Innovative Research & Discovery

7

Example:

Michigan Engineering’s Blue Sky Initiative

8

Need-Based Financial Aid

Undergraduate financial aid

budget +11.2%

8

Increase Grant Aid

Minimize Loan

Burden

9

2016-17 Average Net Price by Family Income

Net Price includes Tuition & Fees, Room & Board, Books/Other Costs Net of Grant & Scholarship AidSource: National Center for Education Statistics, College Navigator

$0 - $30KFamily Income

$30K - $48KFamily Income

$48K - $75KFamily Income

$75K - $110KFamily Income

Published Price with No Aid

U-M in-state price compares favorably to public peers

9

10

Eliminate Lower Priority Activities and/or Find

Efficiencies

Shift General Fund Costs to Non-General Fund Sources

Expand Non-General Fund Sources

• Achieved $406 million in recurrent General Fund savings from FY 2004 to FY 2019

• $27 million additional savings in FY 2020 budget proposal

U-M continues to leverage alternative revenues and invest through reallocation

10

11

Financial Aid

AcademicProgramming

Endowed Professorships

Tuition per student would be about $6,400 higher without this support

Gifts and distributions from endowment provide substantial support for academic enterprise

1111

1212

$247MGap

$567M

$364

$321M

$250

$300

$350

$400

$450

$500

$550

$600

Mill

ions

of D

olla

rs

Fiscal Year

FY2002 Appropriation Projected at Growth in ECI

Budgeted State Appropriations

State Support has not kept up with inflation

13

Recommended FY 2020 Tuition and Required Fees

UNDERGRADUATE: % Change $ ChangeIn-State 1.9% $296/yearOut-of-State 3.7% $1,850/yearInternational 5.8% $2,850/year

GRADUATE: % Change $ ChangeIn-State 3.2% $762/yearOut-of-State 3.2% $1,526/yearInternational 5.4% $2,526/year

Dollar amounts shown represent the increase for most common lower division undergraduate rates and general Rackham graduate rates. A limited number of differential increases are also recommended for specific graduate programs.13

14

U-M’s commitment to Michigan families

Go Blue Guarantee

Need-Based Grant Aid

Published Tuition

Michigan Families earning up to $65,000

Most Michigan Families who are eligible for need-based grant aid

Michigan Families who receive no aid

0%

0%

1.9%

Tuition Increase

14

15

U-M Ann Arbor Recommended FY 2020 General Fund Budget ($ thousands)

15

FY 2019 $ Change FY 2020 % Change

Revenue Budget

State Appropriation $320,782 $4,749 $325,532 1.5%

Tuition and Fees 1,597,254 97,234 1,694,487 6.1%

Indirect Cost Recovery 253,195 23,922 277,117 9.4%

Other Revenue 9,845 900 10,745 9.1%

Total Revenues $2,181,076 $126,805 $2,307,881 5.8%

Expenditure Budget

Academic $1,469,510 $84,735 $1,554,245 5.8%

Executive Officer & Service Units 302,512 12,902 315,414 4.3%

Undergraduate Financial Aid 205,600 23,001 228,602 11.2%

Rackham Graduate Financial Aid 56,516 1,809 58,325 3.2%

University Items 146,937 4,358 151,295 3.0%

Total Expenditures $2,181,076 $126,805 $2,307,881 5.8%

Detail may not sum to totals because of rounding

16

U-M’s stature reflects sustained investment and careful stewardship

16

Freshman Retention

#1U.S. Public Research University

Six-Year Graduation Rate

#2U.S. Public Research University

National Academy Members

#5U.S. Public Research University

Academic R&D Expenditures

#1U.S. Public Research University

Top Ten Graduate Programs

#2U.S. Public Research University

Prominent Awards to Faculty

#2U.S. Public Research University