October 10, 2011
Those present included: Dick Wilson, Dan Klotzbach, Michael Thompson, Lynda Duke, Stacey Shimizu, Matt Kurz, Michael Seeborg, Linda Biehl, Kevin Sullivan, John Jordan, Jerry Olson, Jonathan Green, Roger Schnaitter, Patricia Neustel. By telephone: Kathy Lewton.
Approval of SPBC Notes of September 12, 2011
President Wilson convened the meeting at 12:06 p.m. He stated that a draft of the notes from the September 12 meeting was sent out and approved electronically. President Wilson identified the ultimate goal of today’s meeting as determining the recommended tuition and fees policy for 2012-2013.
Enrollment Projection Model
President Wilson asked Michael Thompson, Assistant Vice President for Institutional Research, Planning and Evaluation, to go over the previously provided document regarding enrollment projections. Michael commented on various tables contained in the Fall 2011 IWU Enrollment Projection Model, which provide enrollment projection scenarios for the next academic year (Fall 2012). Each scenario assumes a new entering first-time, first-year and transfer student figure, which is calculated with the University’s returning student enrollment as determined through estimated retention rates. Based on new entering student figures of 550, 560 and 570, the scenarios project Fall 2012 enrollment ranges of 2,041 (low), 2,051 (mid) and 2,061 (high). The complete Fall 2011 Enrollment Projection Model may be accessed via the following link: http://www.iwu.edu/instres/internal/.
In a discussion regarding the enrollment growth of transfer students, it was noted that while most transfers are coming to IWU from four-year institutions, there are several from community colleges. Questions were asked about potential increases in community college transfer students to IWU and the possibility of articulation agreements with these institutions. An articulation agreement, as documented by the Illinois Articulation Initiative, is when participating institutions “…agree to accept a package of general education courses in lieu of their own comparable lower-division general education requirements.” President Wilson noted that the University is working on building relationships with community colleges, and that the admissions office has dedicated two staff members for this project. At this time, formal articulation agreements are not under consideration due to the complexities involved in examining and approving various curricula. President Wilson added that the recent policy change in making financial aid available to transfer students has contributed to the enrollment growth of transfers to the University.
Additional information concerning the Illinois Articulation Initiative may be found via the following link: http://www.itransfer.org/container.aspx?file=iai
University Budget Update
Dan Klotzbach, Vice President for Business and Finance, commented on the 2012-2013 Illinois Wesleyan University Preliminary Budget. A synopsis of key information contained in the report ensued.
Similar to the FY 2012 budget, the projected budget for FY 2013 includes modest increases in compensation, medical insurance, and utilities. In addition, there are increases to the supplies and equipment for information technology. As it currently stands, there is a projected budget shortfall of approximately $214,000, which is not uncharacteristic for preliminary budget projections at this time of year.
Questions were asked concerning projected changes in the budget for auxiliary enterprises and mandatory transfers (debt service). It was noted that the increase in auxiliary enterprises represents a return to normalcy after the budget realignment of FY 2011, and that these increases (in revenue) were a positive for the University. The mandatory transfer figure represents our annual payments toward our debt service. A recent interest rate swap lowered these costs by approximately $300,000 in FY 2011. Interest payments are expected to increase after the swap expires in 2016. The University has a maximum annual debt service of $5.9 million. Based on current amortization schedules, the current debt is expected to be paid-off in 2036.
Tuition Policy
Dan distributed a packet of information on tuition and fees for 2012-2013. The report included a large amount of historical and comparative data elements from a variety of sources including the University’s Peer/Aspirant Group, a number of regional public and private institutions, and the top 60 liberal arts institutions from US News & World Report. The recommendation was to increase the comprehensive fee by no more than 3.9%. The increase was distributed as follows:
• Tuition: no more than 3.80%
• Room: no more than 5.0%
• Board: no more than 3.0%
President Wilson stated that the process going forward is to take the proposal to the October meeting of the Board of Trustees for approval of an “up to” percentage increase. The President will then consult with the SPBC concerning the final percentage.
General reactions from the Committee included the following:
• A concern regarding faculty compensation not being able to keep up with the AAUP 80th Percentile
• Increases in the number of endowed professorships may help ease salary constraints (currently 1/2 of the new professorships funded during the campaign are deferred)
• The potential contribution of phased and/or early retirements to salary constraints
• Increased transparency, perhaps through the web, of IWU’s financial statements
• Concern about complexity of financial information (e.g., audit statements) and the potential for misinterpretation
A question was asked about the availability of metrics concerning the overall financial health of the University and could these be shared with the Committee. President Wilson was in favor of sharing such information and asked Michael Thompson to explore options for an upcoming meeting.
At this point in the discussion, President Wilson asked if it was the general consensus of the Committee that they were comfortable with the “up to” percentage increase as proposed for the 2012-2013 tuition and fees. The Committee members were in agreement.
The meeting was adjourned at 1:27 p.m.
Distributed to all faculty and staff Oct. 26, 2011.