Report of the Strategic Planning and Budgeting Committee (SPBC)
January 12, 2009
President Wilson convened the Strategic Planning and Budgeting Committee at 11:40 a.m. He introduced and welcomed Babawande Afolabi, the new Student Senate President who will be attending SPBC meetings for the next year.
I. Study Abroad
Frank Boyd and Stacy Shimizu attended today's meeting to participate in the discussion. Stacy presented an overview of the Study Abroad program, distributed by email to the Committee prior to today's meeting. In summary, the study abroad figures for U.S. students have increased 165 percent, from approximately 84,400 participating students in 1994-1995 to 223,500 in 2005-2006. The latest numbers represent about 1 percent of all students enrolled in U.S. higher education, and approximately 33 percent of the participating students came from forty schools. Stacey also explained the three program types: the "Island" program, the hybrid program, and the direct enrollment program. IWU has two island programs (London and Madrid), one exchange program (Keio University), a one-way agreement (Pembroke College, Oxford University), and 11 affiliated programs. These programs cover 175 countries and regions on six continents. Since fall 2003 a total of 1,548 students from IWU have studied abroad (May Term = 869; semester, summer, and academic year programs = 679).
Frank Boyd indicated that there is a persistent myth at the University that the London and Madrid programs are revenue generators. He presented a chart to display the considerable additional costs to IWU for the London and Madrid programs as compared with students enrolled in affiliated programs.
Comments/Questions:
-- IWU has established a home school tuition policy, which means that the cost to the students remains the same whether on-campus or studying abroad. It was expressed that this policy makes it much easier to explain the program to incoming students and insures consistent financial aid from on-campus to off-campus study.
-- The number of students studying abroad has an impact on the University in terms of retained tuition, faculty hiring, housing, and food service.
-- A question was asked about the relatively high cost of IWU programs. The IES, Arcadia, and Butler programs are very large operations resulting in lower costs. Some of the programs also have their own properties and facilities overseas, whereas IWU has to rent facilities.
-- A question was asked about the implications of discontinuing the
London and/or Madrid programs. The observations included:
- There would be many questions from faculty, as the programs are perceived as a faculty development tool.
- These two programs are very attractive to some students, and we should expect a reaction.
- It would be a plus for some University offices since it would significantly reduce workload.
- As far as the admissions office is concerned, there would be no significant impact on student recruitment since we still have May Term and other study abroad opportunities available.
The Committee agreed to leave this topic on the agenda for a future SPBC meeting. Associate Dean Boyd indicated that the value of the London and Madrid programs was an important academic question that should be addressed by the faculty.
Economic Outlook
The Committee received the following report on important University activities:
-- Spring enrollment is above the budget target. We did not have a large number of students leaving for financial reasons.
-- We are running 9 percent ahead of last year in terms of applications for fall enrollment.
-- The annual fund is ahead of last year in contributions - total giving for the year is approximately $5.1 million.
-- The University is still planning to proceed with the Capital Campaign, with the targeted announcement planned for May 2009.
President Wilson covered two areas: the endowment and bonds.
Endowment
With the downturn in the economy, the IWU endowment is down $45 to $50 million, which translates into a $600,000 to $700,000 reduction in our budget next year. There are few options for addressing this deficit. The current plan is to sustain current staffing levels but reduce or eliminate increases in all budget categories.
Dan Klotzbach distributed projected budget models for the years 2008-2009 to 2011-2012 and explained the decreases in the 2008-09 budget.
Bonds
It was reported that the bond rating agencies have tightened the rules for all institutions, including colleges and universities. Regulations require that IWU reserve funds for deferred maintenance as well as contributions for retiree health obligations. These two issues must be addressed.
The University administration is reviewing options for reducing our APBO (Accrued Postretirement Benefit Obligation). The President has assembled a small administrative group to begin this process and will involve both SPBC and HCAC once some background work has been completed. The goal is to have a plan ready for discussion by mid-March so that changes can be implemented at the start of the next fiscal year.
The meeting was adjourned at 1:15 p.m.