FROM: Institutional Priorities Committee

TO: University Community

DATE: March 23, 2004

SUBJECT: Recommendations for FY 2005 Budget

The focal point of the University’s planning and budgeting activity rests with its Institutional Priorities Committee (IPC). Chaired by the Provost, the IPC is composed of the vice-presidents and other members of the University community from each of the University’s three campuses. The IPC has developed a framework and schedule for the integration of planning and budget development across the entire University. Beginning each fall, the IPC receives budget requests from the University’s various operating units and tests them against the University’s Mission, Vision and Planning Priorities as approved by the Board of Regents. Using carefully developed revenue projections, the IPC has developed a set of strategic investments to advance the University’s Planning Priorities, while ensuring the ongoing strength of the University.

With this document, the IPC summarizes is recommendation for the Stockton campus, and summarizes the budgets of the School of Dentistry and McGeorge School of Law presented to the IPC earlier this year. The IPC welcomes any comments, suggestions and other responses from the campus community regarding this report. Such responses should be sent to IPC (c/o Office of the Provost) no later than noon, Friday, March 26. After review and due consideration of these comments, IPC will transmit final budget recommendations to the President for his decisions and recommendations to the Board for final action. The President’s final budget recommendations will be previewed by the Regents’ Finance Committee in early April and submitted to the Board of Regents for approval at its spring meeting in early May.

Planning and Budget Assumptions:

The University’s Mission, Vision and Planning Priorities (MVP) statement has been developed and refined over a series of planning meetings among the University’s leaders and representatives and approved the Regents. (The complete list of University Planning Priorities is attached as Appendix I). As the University and its markets change and evolve, some of the planning priorities are viewed as more critical in the short-term than some others. With this in mind and while stressing that all of the University’s planning priorities remain important, the President has identified the following as most critical to the University for the FY 2005 budget cycle allocation decisions:

1. Promote hallmarks of teaching, scholarship and learning excellence; 2. A cost-effective enrollment plan that emphasizes selectivity and retention; 3. Advance the integration of information technology into curricular, co-curricular and administrative programs; 4. Develop and implement marketing plans to emphasize national and international student recruitment and elevate institutional visibility;

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5. Refine and implement a comprehensive facilities and maintenance plan, with special attention to academic buildings, residence halls and recreation space; 6. Increase financial support for endowments and facilities; 7. Improve alumni and annual giving; and, 8. Strengthen the commitment to diversity among students, faculty, and staff;

In making their recommendations for resource allocation, the IPC and the Cabinet regularly referred to the University’s Mission, Vision, and this particular subset of the University’s Planning Priorities, along with the Budget Planning assumptions (See, Appendix II) to develop the recommendations below.

REVENUE ASSUMPTIONS: To determine the revenue that can reasonably be expected during the coming budget cycle, the IPC and the Cabinet evaluated the market for every program, projecting the number of applicants, the number of admitted students who meet the University’s quality standards, and the number students who will enroll. Obviously, an important part of this analysis is how the price and net cost of attending the University compares to other schools with whom we compete.

Stockton Enrollment: Since 1996, the Stockton campus’ 900 1180 t

freshman enrollment has steadily n 800 1160 e e r

700 1140 o increased in both size and quality m l c l

600 1120 S o resulting in a steady increase in r T

n 500 1100 A

the undergraduate population. E

400 1080 S

The professional student e e 300 1060 g m a

enrollment (primarily pharmacy r

h 200 1040 e s v students) has held steady, while e 100 1020 r A the graduate school enrollment is F 0 1000

recovering from a low point in 7 8 9 0 1 2 3 4 5 6 9 9 9 0 0 0 0 0 0 0 9 9 9 0 0 0 0 0 0 0 FY2002. 1 1 1 2 2 2 2 2 2 2 Y Y Y Y Y Y Y Y Y Y F F F F F F F F F F

Enrollment Average SAT

5000 4500 These trends of slow growth of the

t 4000

n undergraduate and graduate u 3500 o populations are expected to continue c

d 3000 a through the end of this decade when e 2500 H

t 2000 the Stockton campus population n e 1500 should level off at approximately d u t 1000

S 4700, or approximately 200 more 500 than today. 0

7 8 9 0 1 2 3 4 5 6 7 8 9 0 9 9 9 0 0 0 0 0 0 0 0 0 0 1 9 9 9 0 0 0 0 0 0 0 0 0 0 0 1 1 1 2 2 2 2 2 2 2 2 2 2 2 Y Y Y Y Y Y Y Y Y Y Y Y Y Y F F F F F F F F F F F F F F

Undergrad Graduate Professional

School of Law Enrollment: Enrollment at Pacific’s McGeorge School of Law is expected to be 1120 day and evening JD students, approximately the same number as the current year, but up from the low point in FY 2001 of 947. Credentials of entering students have continued to rise, even with larger class sizes.

1400 1200 1000 800 600 400 200 0 FY FY FY FY FY FY FY FY FY 97 98 99 00 01 02 03 04 05

School of Dentistry Pacific-McGeorge

School of Dentistry Enrollment: The School of Dentistry projects increases in enrollment in the DDS program from 406 to 416 due to improved retention. With the addition of the dental hygiene program on the Stockton campus during the FY 04 year and a total enrollment in that program of 48 in FY 05, the School of Dentistry projects a total of 537 students in FY 05.

Tuition and Fees: Keeping its annual rate of increase for undergraduate programs markedly below the average for other similar institutions has help improve Pacific’s competitiveness. The University has kept Stockton Campus gross tuition rate increases significantly below those of California comparison institutions.

FY 96 FY 04 % Change Ave. Chg / Yr Pepperdine 19,200 27,430 42.9% 4.6% Santa Clara 14,772 25,365 71.7% 7.0% Loyola Marymount 14,823 23,934 61.5% 6.2% Redlands 17,110 23,796 39.1% 4.2% St. Mary's 14,250 23,775 66.8% 6.6% U. San Francisco 14,108 23,220 64.6% 6.4% PACIFIC 17,550 23,600 34.5% 3.8%

For FY 2005, the increase in undergraduate tuition and fees approved by the Board of Regents in January 2004 provides for a tuition increase of $1,140 to $24,320 annually or a 4.9% increase. Overall, tuition and fees are slated to increase to $24,750 for FY 2005.

Although the University-funded financial aid (tuition discount) is expected to increase $500,000 in FY 05 to nearly $30 million, the tuition discount rate (the university-funded aid as percent of gross tuition revenue) is projected to be no more than the rate for FY 04. Yet, in comparison to the private comprehensive California institutions, because Pacific’s tuition discount rate is relatively higher, the net tuition costs to Pacific’s students are much lower. This low net cost, along with the strong faculty, improved programs and better facilities, helps explain why the latest U.S. News and World Report rankings placed Pacific among the nation’s “best values” for the third year in a row.

Law School Tuition: FY 99 FY 04 Change Ave Chg / Year USC 25,052 32,784 30.9% 5.5% The McGeorge School of Law has made Stanford 25,190 32,424 28.7% 5.2% tuition adjustments to keep it in the mid- Santa Clara 20,782 28,740 38.3% 6.7% range of other private, accredited law Pepperdine 22,880 28,400 24.1% 4.4% schools in California. For the coming Loyola Marymount 21,748 28,074 29.1% 5.2% year, it is recommended that its annual U San Diego 20,980 27,890 32.9% 5.9% tuition for day students increase by 6.4% U San Francisco 21,008 27,596 31.4% 5.6% to 29,222. Southwestern 21,040 27,270 29.6% 5.3% Whittier 21,064 26,550 26.0% 4.7% California Western 20,570 26,200 27.4% 5.0% Golden Gate 20,221 25,433 25.8% 4.7% Chapman 17,550 25,350 44.4% 7.6% Thomas Jefferson 18,880 24,985 32.3% 5.8% Western State 18,900 24,680 30.6% 5.5% School of Dentistry Tuition: The Pacific McGeorge 20,762 27,698 33.4% 5.9% School of Dentistry’s tuition for the DDS (and IDS) programs is slated to increase 4.1% to $57,

645. Because the school is operated on a three-year, year-round basis the total cost of the program at Pacific is very competitive with that of most four year programs, especially when considering that competitors’ students are still in school in the fourth year of their program, while Pacific students have graduated and have entered the profession.

In addition to this tuition increase for the DDS and International Dental Studies (IDS) program, it is proposed there be a 2.5% increase in the Instrument Management Fee for these students, and for students in the Stockton Campus Dental Hygiene Program (whose tuition is the same as other Stockton undergraduates), new annual fees for Instrument Management ($150), Uniforms ($60), and Student Dental Hygiene Association membership ($45) be established in FY 05.

Gift Income: While the University has been fortunate to have many generous alums and other friends who help support it, annual giving remains a relatively small component of the total projected revenue. Recognizing the additional emphasis on giving to the University as part of the Capital Campaign, the budget for annual gifts has been increased by $100,000 or 10% to reflect this. The alumni giving rate across the University has improved and is expected to continue to increase to 15% on the Stockton campus by FY 2005, to as much as12% on the Sacramento campus by FY 2005, and to 21% on the San Francisco campus by FY 2005. Endowment: While a stronger annual giving base is an important part of any strategy to reduce the University’s dependence on tuition income (and the vulnerability to changes in enrollment), an important long-term strategy for the University to reduce its dependence on tuition income is to strengthen its endowment to the degree it is able to contribute a significant and stable portion of the annual budget.

160,000 30.0 The University is pleased that 140,000 25.0 during FY 2004, the University’s endowment grew to more than 120,000 20.0 $150 million. For FY 2003, the 100,000 15.0 NACUBO survey of higher education endowments ranked 80,000 10.0 Pacific’s nominal rate of return 8th rd 60,000 5.0 out of 718 respondents, and 3 for 30- 30- 30- 30- 30- 30- 30- 31- the three years ending with FY Jun- Jun- Jun- Jun- Jun- Jun- Jun- Dec- 2003. While the careful 97 98 99 00 01 02 03 03 management by the Board’s Investment Committee and gifts Endowment Assets Assets/FTE Student for scholarship, program and unrestricted endowments are important parts of any effort to increase the endowment, beginning with the FY 2005 budget, the University is planning on reducing its spending rate to 5.25% (from 5.5%) of a rolling three year average of year end balances. Reductions to 4.5% are currently planned by FY 07 to enable the endowment to grow faster to better secure the University’s future. Unit Support Budgets: As in the past, the proposed budget provides for no across-the-board increase in support budgets, although increases in select areas where measurable, and significant

4:43 下午 1/9/2018 DRAFT Page 5 of 16 DRAFT expenditure increases are known. For example, increases are recommended in support budgets to heat, cool, clean and service the additions on the Holt Library and the Wendell Phillips Center. Operating Reserve: Consistent with the standard of the planning and budget assumptions, an operating reserve of at least 1% has been budgeted for each campus for FY 2005. In addition to the operating reserve, the Stockton campus budget maintains an annual unrestricted reserve accumulation of $1.25 million to ensure greater stability and long-term financial strength. Faculty/Staff Compensation: The components of the compensation for faculty, staff and administration of the University have several dimensions: a. Merit: The proposed budget provides for a salary pool to be allocated to all employees based on performance and merit. For FY 2004, the size of this pool will be 2.5% for the Stockton campus. Because of regional market differences, the rates of increase for Sacramento (3.0% for staff and 3.5% for faculty) and San Francisco (4.0% for faculty and non-union staff, effective September 1 and 4.0% for union staff effective January 1, 2005) merit pools are different. b. Market Equity: In addition, the proposed budget for Stockton continues the four year market adjustment plan to improve the competitiveness of both faculty and staff salaries on the Stockton campus. Under the plan, average faculty salaries by rank and by discipline are to be no less than the 60th percentile of the appropriate cohort group by FY 2007 and average staff salaries for most non-exempt and exempt staff pay grades will receive a supplemental adjustment in order to reach the appropriate market standard by FY 2007. Funds for faculty promotion and staff longevity are continued as in the past. c. Medical/Dental: The costs of medical and dental care continued to rise at a relatively high rate. The University initiated a number of cost containing adjustments to its medical plans, while providing enhancements elsewhere. As the University moved to a standard employer contribution (80%) across all plans, it assumed a larger portion of this increase resulting in the average increase in employee contributions to be only 2%. d. Retirement: The budgets for all three of the University’s campuses continue to allocate resources to improve the competitiveness of the employees’ retirement plans. In September 2002, for the first time in many years, the University’s contribution to its employees’ plans increased from 7 ½% to 8%. In September, 2003, an additional ½ % was added. The FY 05 budget provides for another ½ % increase to a total University contribution of 9 %, effective September 1, 2004.

Facilities: As the University has expanded the physical plant supporting the educational experience of its students, it has ensured that the budget included resources to operate, maintain, and clean these facilities. Over the past 6 years, nearly 250,000 square feet (nearly 6 acres!) of new square footage has been added to the Stockton campus. The budget for FY 2005 includes similar adjustments for the expansions of Wendell Phillips Center and Holt Library.

Summary of Budget Priority Recommendations

After providing for the “mandatory” budget adjustments of known and certain commitments to the operation of the Stockton campus, the IPC and the Cabinet reviewed the proposals for additional budget resources with reference to the University’s key Planning and Budget Assumptions and the University’s Planning Priorities. The following summarizes the budget allocations recommended to support the University’s planning priorities:

A. Promote hallmarks of teaching, scholarship and learning excellence; o Attract and Retain Outstanding Faculty and Staff: The core of the University is an outstanding faculty to teach and inspire students in their learning experience. It is also important to have a skilled and satisfied staff to support the learning experience and provide support to the educational mission. The University’s Stockton budget for FY 05 invests more than $2 million in faculty and staff salary merit and equity (market) adjustments to ensure we continue to attract and retain talented people. In addition, $1.13 million more is being invested in benefit programs for the faculty and staff, including medical and dental programs and increases in the University’s contribution to retirement. Adjustments for Graduate Assistant stipends as well as promotion and tenure adjustments are also provided.

On the San Francisco campus, $735,800 is proposed to provide for merit and equity adjustments for faculty and staff, and $475,900 is proposed for increases in the cost of medical and dental programs as well as in the one-half percent increase in the University’s contribution to retirement plans.

On the Pacific-McGeorge campus in Sacramento, $378,000 is proposed for merit and equity adjustments for faculty and staff, and $351,400 is proposed for the scheduled increases in the cost of medical, dental, retirement and other benefits.

o Ensure Program Excellence: The School of Pharmacy and Health Sciences has become of center for excellence within the University. To take full advantage of the new Health Sciences Learning Center and Clinics (which opened in June, 2003), approximately $150,000 more is being invested to enhance that School’s equipment and operations. The University’s Assessment Program and Program for a four-year Honors Program would benefit from a proposed allocation of $53,500. In addition, a nurse practitioner and a medical assistant are being added to the staff of the Cowell Wellness Center to meet the needs of student care provided through that office. The costs of these two new staff positions is approximately $110,000, and is funded with an increase in the health center fee assessed all full time students.

At the School of Dentistry, approximately $85,000 is proposed for enhancing the oral surgery program. Also, for the School of Dentistry, $328,000 is proposed to bring its Stockton campus dental clinic programs to full capacity. This exciting collaboration between the two campuses provides new opportunities to show the strength of the University when its campuses work together and improves the visibility of each campus and the University as a whole.

At the Pacific-McGeorge School of Law, five new faculty positions are proposed to reduce a relatively high student/ faculty ratio and add strength in key areas. A faculty secretary position to support the additional faculty and legal assistant to the dean to provide support for the school’s increasing number of programs and initiatives at local, national and international levels are also being proposed. Finally, it is proposed that the budget for the library collection be increased $170,500 to maintain and build this important element of a quality legal education.

B. Advance the integration of information technology into curricular, co-curricular and administrative programs; o Improve Technological Service Delivery to Students: The introduction of the Pacific One Card system on the Stockton campus has provided an easy and secure way to access food service, building access, and other services. To provide the necessary infrastructure to maintain the system and to support its extension to additional locations and services on campus, it is recommended that $166,000 be invested in this program. In addition, the Pipeline portal to the University’s internet system needs to be replaced to serve the current needs and capacity of the University’s students, faculty and staff. It is recommended that $139,000 be invested in FY 05 to provide for a portal administrator and for licensing and other acquisition costs of this important gateway to our technological highway. o Secure and Enhance Administrative Systems: To fully realize the great potential of the University’s three separate campuses working together, enhancements to the Wide Area Network are recommended which will reliably link our campuses together. The cost of these enhancements is $220,000. Another system enhancement to improve user access to the network, but in a secure environment, is Universal Authentication. This system enhancement is recommended to simplify users’ access to the network without compromising its integrity. The estimated cost of this recommendation is $98,000.

At the School of Dentistry, a needed upgrade of the computer network is proposed using CEFA equipment financing at an annual cost of $91,000 for six years. At the Pacific- McGeorge School of Law, $142,000 increase in the technology budget is proposed to strengthen the administrative systems, especially completing the transfer of these systems to Banner to ensure comprehensive institutional management and oversight with one integrated enterprise system.

C. Emphasize national and international student recruitment and elevate institutional visibility; o Increase Student Access to the Institution: $15,000 is recommended for a “content management” program to assist managers of web sites to systematically review and update website materials. o Broaden Student Involvement: To support the initiation of a key program involving Pacific students in representing Pacific on tours and at key events on campus, $10,000 is recommended for the Student Ambassador Program.

At the Pacific-McGeorge School of Law, $60,000 is proposed to strength the school’s external partnership at local, national and international levels. To raise the visibility of the school nationally, $160,000 initiative for national advertising is proposed. Recognizing the importance of first rate institutional and admission web sites for recruitment purposes, $150,000 is proposed to retool the school’s web presence. Finally, $220,000 is proposed to be added to the school’s publication and communications budget to enhance this important part of recruitment and institutional visibility.

D. Refine and implement a comprehensive facilities and maintenance plan, with special attention to academic buildings, residence halls and recreation space; o Improve Campus Safety and Protect Student Welfare: Over the past several years, the University has ensured that new construction and major renovation have provided for fire sprinklers and fire alarms. To ensure the safety of the students, faculty and staff that use all facilities, it is recommended that over $2.5 million be invested to provide fire sprinkler and fire alarm systems in areas not now protected by these devices: $1.5 million in the residence halls and $1 million in the library and other buildings. It is recommended that this investment be financed through CEFA facility bonds with the residential hall component being paid for through residential room rents and the remainder of $81,000 being paid for through the general budget. Often with uncommitted year end funds, the University has made steady progress improving campus safety, such as through lighting projects, blue phone installation, sidewalk maintenance and repair. As a minimum commitment to annual investments in campus safety, it is recommended that $50,000 be added to the budget beginning in FY 05. To ensure the fleet of campus police vehicles is regularly upgraded, it is recommended that $32,600 be invested annually in replacing one of these vehicles.

On the School of Dentistry campus in San Francisco, the University is committed to meet a requirement to complete the fire sprinkling of the school’s main building by 2006. It is proposed that the budget be increased by $91,000 for that portion of the debt service of the 2004 CEFA issue allocated to that project. In addition, budget adjustments in janitorial services and electric rates for the dental school are recommended at a total annual cost of approximately $160,000.

At the Pacific-McGeorge School of Law, the University is also planning to address campus safety through the installation of sprinkling systems in residence halls at an annual debt service cost of $32,500. As on the other campuses, funds for residence hall improvements will be charged to the respective auxiliary operations budgets. It is also proposed that $227,600dollars be allocated for additional annual debt service through the CEFA equipment bond to provide for an updated energy management systems, to enhance the campus phone system and to replace library furniture. The School is also proposing $135,600 for additional campus planning and other improvements, and will be assuming $133,300 of CEFA 2002 debt service paid for by the Main campus for the last two years.

o Provide Essential Services to Larger Campus: With the opening of additional spaces in the new Humanities Center addition to WPC, there will be additional costs to heat, cool, clean, and maintain these spaces. It is recommended that $52,400 be budgeted for the additional utility costs and $63,000 be added for the additional staffing and operations necessary to service these spaces. The financial strength and stability of the University is something all of us have worked hard to achieve. With the additional size and complexity of the University’s operation on all three campuses, it is important for the University to get the best support in developing budgets and monitoring their execution. To that end, it is recommended that an additional budget analyst be added (beginning in January, 2005) at a cost of $26,800.

E. Increase financial support for endowments and facilities; o Strengthen University Financial Outlook: An important part of the University’s growing financial strength is its endowment. As noted earlier, the investment performance of the University’s endowment is among the top in the nation. With the recent and anticipated growth in the endowment through continued success in investments as well as gifts from the Campaign, it is important the one person primarily responsible for the endowment’s management receive back-up and support. To do this and to provide for improved systems to manage the endowment, it is recommended that $104,000 be invested. This additional expense will be entirely covered by the imposition of a .15% internal management fee on endowment accounts recommended to be established in FY 05.

o In addition, the budgets of all three campuses reflect adjustments in the administrative fee from Pacific-McGeorge Law School and the School of Dentistry to the main campus for operational and administrative support and coordination.

F. Improve alumni and annual giving o Increase Contribution and Participation: With a majority of the Stockton campus faculty and students, the College of the Pacific has many funding needs that can be addressed in large part with more intense development efforts. To supplement the good work already being done by the unit’s only gift officer and to advance, in particular, the fund raising for the proposed Biology Building, it is recommended that an additional major gift officer be established to support the advancement of the College’s fund raising efforts. The cost of this investment is $65,000 per year. In another initiative to strengthen the University’s capacity to increase the number and size of planned gifts, the IPC and Cabinet recommend the investment of $60,000 to add a second planned giving officer serving the Campaign.

o At the Pacific-McGeorge School of Law, it is proposed that $20,000 be allocated to enhance the school’s efforts to connect with alumni and others in the Nation’s Capital.

G. Strengthen the commitment to diversity among students, faculty, and staff o Expand Cultural Awareness and Learning Opportunities: To advance the University’s commitment to diversity, it is recommended that an investment of $43,200 be made to provide cross-cultural training programs for faculty and staff to foster understanding of the differences (and similarities) among different peoples. In addition, $25,000 is recommended to be invested to support activities among student cultural groups. Finally, resources are recommended to provide additional scholarship aid for women athletes. This will improve the University’s competitive opportunities for female student-athletes and will better assure compliance with Title IX requirements relating equal opportunities for male and female student athletes.

At the Law School, an additional $60,000 of financial assistance is proposed to fund a pilot diversity scholarship program.

H. Cost Effective Enrollment Plan emphasizing selectivity and improved retention

o Financial Assistance: While the Stockton campus has made great strides in reducing its discount rate, its robust financial assistance program for students with talent and need has been an important part of the University’s efforts to improve student profile, while assuring accessibility to qualified students with need. The budget for FY 05 increases University funded aid by over $516,000 to nearly $30 million per year.

At the School of Dentistry, the budget proposal for FY 05 includes an increase in financial assistance of nearly $325,000.

o Improve Enrollment Management Tools: $35,000 is recommended for improvements to the admission website which enable prospective students and their families to learn about and apply to Pacific more easily and completely. In addition, it is recommended that $52,000 be invested in an automated “degree audit” program providing faculty advisors with a valuable tool to assist students in registering for their classes and ensure their successful completion of degree requirements. This automation will also help improve undergraduate transfer recruitment.

For the School of Dentistry, it is proposed that $58,000 be invested in improving the students’ financial aid computer system and general computer support.

APPENDIX I

PLANNING PRIORITIES (not in priority order)

I. Heighten Academic Distinctiveness a. Identify and promote hallmarks of teaching, scholarship and learning excellence in the College of the Pacific and in each professional school. b. Encourage collaboration among academic programs in the College of the Pacific and professional schools to create more interdisciplinary and cooperative programs and courses. c. Support and encourage leadership development. d. Provide experiential learning opportunities to all students, including enhanced support for undergraduate research. e. Integrate international education into undergraduate, graduate, and professional programs.

II. Improve the Quality and Delivery of Academic Programs and Services to Students a. Encourage and provide opportunities for more quality interaction between students, faculty, staff, and alumni. b. Assess faculty, staff, and program efficiency and improve efficiency through professional development. c. Implement a comprehensive program to assess student learning and satisfaction. d. Increase and improve wellness and recreational opportunities for students.

III. Strengthen Competitive Positioning a. Expand the commitment to diversifying students, faculty, and staff. b. Invigorate faculty and staff development, compensation, and reward systems. c. Engage alumni in all aspects of the University to contribute to student learning and to the career placement of graduates. d. Develop and implement marketing plans to emphasize national and international student recruitment and elevate institutional visibility. e. Advance the integration of information technology into curricular, co-curricular and administrative programs. f. Refine and implement a comprehensive facilities and maintenance plan, with special attention to academic buildings, residence halls, and recreation space.

IV. Build Upon Financial Strength

a. Implement a cost-effective enrollment plan that emphasizes selectivity and improved retention. b. Increase financial support for endowments and facilities. c. Improve alumni and annual giving. d. Explore innovative revenue and allocation models to stimulate entrepreneurship within academic units.

V. Expand External Relationships

4:43 下午 1/9/2018 DRAFT Page 12 of 16 DRAFT a. Build stronger community and regional partnerships. b. Develop strategic national and international partnerships

APPENDIX II Budget Assumptions and Planning Guidelines for FY 2005 and FY 2006 (NOTE: These Budget Assumptions and Planning Guidelines were prepared in October, 2003, to help managers in preparation of their budgets. As conditions on which these assumptions are based become clear, the assumptions may be subject to review and change.)

Budget Assumptions The overall University budget for FY 2005 and 2006 will be developed according to the following assumptions: 1. ENROLLMENT: The University will continue to manage enrollment to optimize the use of its facilities and other resources: a. Stockton Campus: Increase the academic quality of students while moderately increasing enrollment from 4370 to nearly 4600 by FY 2005; b. Sacramento Campus: While net revenues are maintained, gradually reduce enrollment to approximately 965 by FY 2006 to improve profile; c. San Francisco Campus: While net revenues and academic quality are maintained and improved, maintain enrollment at approximately 525 by FY 2006.

2. TUITION AND FEES: Increases of tuition and any student fees should be set to provide adequate resources for the University’s critical needs while ensuring that the net costs to students are competitive with those of comparable academic programs. To this end, differential tuition rates and fees may be adopted. Further, the allocation of funded and unfunded financial aid will be focused on increasing net revenue while increasing enrollment, diversity, student academic ability, and managed enrollment in each academic program.

3. GIFT INCOME: Total University gift revenues will average $30M/year for 2001-2007. An increasing portion of gift income will come from alumni. a. Stockton Campus: The Stockton campus donor participation rate (including Pharmacy and Graduate alumni) will increase from 10% to 13% by FY 2004. Undergraduate alumni donors will increase from 14% to 20% by FY07. b. Sacramento Campus: Law School alumni donors will increase from 9% to 12% by FY 2005. c. San Francisco Campus: Dental School alumni donors will increase from 19% to 21% by FY 2005. 4. UNIT OPERATING BUDGETS: Some selected unit non-salary operating budgets should be adjusted. 5. ENDOWMENT: To accelerate the growth of the endowment and reduce tuition dependency, a University goal is to reduce the endowment spending rate from 5.5% to 4.5% by FY 2007. This reduction will be in a manner which will mitigate adverse affects on program support.

6. OPERATING RESERVE: The budget will be balanced and include an operating reserve fund of at least 1% of the budget for each campus.

7. FACULTY AND STAFF COMPENSATION: Faculty and staff compensation should be competitive. a. Overall Stockton campus faculty salaries should continue to be maintained at no less than the AAUP IIA 60th percentile salary rank. Plans for more competitive compensation should continue to be developed and implemented for faculty and staff on all campuses. b. Because health benefit cost increases are expected to be significant, ways to reduce costs without reducing quality of care should be considered. c. A University goal is to increase the pension benefit by .5% annually through FY 2007 to achieve a 10% university contribution.

8. FACILITIES: Campus budgets should accommodate increased investment in new and existing facilities.

9. ENERGY COSTS: For the next several years, energy rates are expected to increase at a rate significantly greater than the rate of inflation while instability in energy supplies will continue, which requires increased energy conservation and likely increased expenditures.

Planning Assumptions All University units are expected to test their operational plans and budgets for those plans against the following:

1. PLANNING PRIORITIES: The University planning priorities established for 2002-2007 will be pursued. Strategic indicators will be used to measure the progress of each unit and of University priorities annually.

2. PRIORITIES FOR RESOURCE ALLOCATION: The University’s Board of Regents has endorsed the following top priorities for 2004-2007:

a. Identify and promote hallmarks of teaching, scholarship and learning excellence in the College of the Pacific and in each professional school; b. Expand the commitment to diversifying students, faculty and staff; c. Develop and implement marketing plans to emphasize national and international student recruitment and elevate institutional visibility; d. Advance the integration of information technology into curricular, co-curricular and administrative programs;

e. Refine and implement a comprehensive facilities and maintenance plan, with special attention to academic buildings, residence halls and recreation space; f. Implement a cost-effective enrollment plan that emphasizes selectivity and improved retention; g. Increase financial support for endowments and facilities; and, h. Improve alumni and annual giving.

3. REVENUE GENERATION: The University will continually and purposefully explore creative ways to increase revenue for new initiatives and ongoing programs, including creating new revenue sources, establishing revenue sharing programs, enhancing current revenue streams, reallocating existing expense budgets, investing in government relations initiatives, and adding new tuition-generating opportunities such as credential programs and post-baccalaureate programs. The Comprehensive Campaign will continue to 2007.

4. DIVERSITY: The University will enhance its learning experience by continuing to develop and implement plans to increase the diversity of its faculty, staff, administration, students, and programs.

5. LEARNING ASSESSMENT: The University will continue to improve measurably the quality and delivery of learning experiences for its students through appropriate student learning assessment programs.

6. SERVICES TO STUDENTS: The University will continuously improve the quality and delivery of services to students.

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