2015-2016 Executive Summary

2015-2016 BUDGET EXECUTIVE SUMMARY OFFICE OF BUDGET AND PLANNING George Mason University Total Budget, 2015-2016 Executive Summary Table of Contents BUDGET SUMMARY OVERVIEW ..................................................................................................................1 Budget Highlights, FY 2016 .................................................................................1 Annual Change: All Programs ..............................................................................3 All Funds—All Sources—Revenue ......................................................................4 All Funds—All Uses—Outlay ..............................................................................5 Institutional Profile ...............................................................................................7 Performance Measures ........................................................................................15 Institutional Performance Standards ...................................................................19 Six-Year Plans ....................................................................................................21 Strategic Plan ......................................................................................................22 EDUCATIONAL & GENERAL ....................................................................................29 Educational and General Revenues ....................................................................29 Funds Available For Allocation (Sources) .........................................................34 Use of Funds / Expenses .....................................................................................35 Educational & General Budget by Unit .............................................................39 AUXILIARY ENTERPRISES .......................................................................................41 Auxiliary Enterprises Revenues ..........................................................................41 New Student Fee Requirements ..........................................................................45 Use of Funds / Expenses .....................................................................................47 Summary of Auxiliary Enterprises Operating Budget ........................................53 TUITION AND FEES ....................................................................................................55 STUDENT FINANCIAL ASSISTANCE.......................................................................61 SPONSORED RESEARCH ...........................................................................................69 CAPITAL OUTLAY ......................................................................................................75 BUDGET DETAILS EDUCATIONAL & GENERAL DETAIL BY MAJOR UNIT .....................................79 AUXILIARY ENTERPRISES DETAIL BY MAJOR UNIT ......................................103 i Members of the George Mason University Budget Planning Team Ms. Jennifer (J.J.) Wagner Davis and Dr. S. David Wu, Co-chairs Ms. Janet Bingham Mr. David Burge Mr. Thomas Calhoun Ms. Lisa Kemp Mr. Paul Liberty Dr. Michelle Marks Ms. Rose Pascarell Ms. Marilyn Smith Ex officio Support Staff Mr. David Moore, Chief Budget Officer Ms. Barbara Clark Mr. Frank Neville, Chief of Staff Ms. Kim Dight Dr. Mark Houck, Faculty Senate Representative Ms. Renate Guilford Ms. Patrice Musco Office of Budget and Planning Contributions by other departments: Ms. Jieping Li Dr. Kris Smith—Institutional Research & Reporting Ms. Monica Michaud Ms. Carol Brosseau—Student Financial Aid Ms. Dorian Mroz Mr. Mike Laskofski, Ms. Kimberly Maze— Office of Sponsored Programs Mr. David Oler Mr. Mark Stahley Ms. Tracy Williams Ms. Li Zhou ii GEORGE MASON UNIVERSITY TOTAL BUDGET, 2015–2016 BUDGET HIGHLIGHTS The total university budget for FY 2016 is $977.6 million, a 3.4 percent increase compared to the FY 2015 budget. The FY 2016 budget comprises $877.4 million operating, $18.7 million state-supported financial aid, and $81.5 million in capital outlay. Compared to the FY 2015 budget, the operating budget increases by 3.2 percent, most notably including a 13.2 percent increase in Philanthropic Activities. State-supported financial aid funds will increase by approximately 7.2 percent for undergraduate need-based awards, and Capital Outlay will increase by 4.2 percent as planning and construction progresses for Academic VII, Fenwick Library, Potomac Science Center, and the Central Plant expansion. New to this year’s operating budget is a one-time funding allocation from carryforward funds of $2.7 million that will be targeted toward faculty retention and compensation funding in the form of a one- time bonus along with $1.0 million set aside for a new Mason Student Access Initiative. This new initiative will help address the needs of our students to have the opportunity to be successful during their educational career. Senior administrators and students are working together to define the use of these funds. Early discussions with students suggest the funds could provide additional financial aid, expansion of targeted programs and services, or other support that will help our students have access to an affordable and quality education. Mason continues to be the largest university in the Commonwealth with a headcount of 33,791, or 8.2 percent greater than the next largest university. Mason welcomed its largest freshman class of approximately 3,091 during fall of 2014 and enrolled approximately 16 percent of the total headcount across Virginia’s 15 institutions of higher education. Mason’s demand remains strong with over 8,300 new degree-seeking students in FY 2015. Like most institutions of higher education, Mason has experienced a shifting and competitive enrollment landscape over recent fiscal years. In FY 2016, overall enrollment and revenues will remain stable with the majority of the revenue changes coming from the proposed tuition and fee rate increase. Serving a large diverse student population requires investment in services and programs to maintain and balance an accessible, affordable, and high quality education for our students. The total price for an in-state undergraduate student living on-campus (including tuition, fees, room, and board) is $21,462 which is a 4.8 percent increase and the total price for an out-of-state undergraduate student living on-campus will be $42,108, a 5.1 percent increase over the previous year. Institutional financial aid for undergraduates increases by 17.1 percent which includes the continuation and expansion of out-of-state leveraging grant funds consistent with the tuition pricing strategy study for both undergraduate and graduate enrollments. Total institutional aid increases by 17.2 percent or approximately $5.8 million. The combination of Commonwealth and institutional financial aid will increase by 13.8 percent or approximately $7.0 million. 1 GEORGE MASON UNIVERSITY TOTAL BUDGET, 2015–2016 BUDGET HIGHLIGHTS, (CONTINUED) Compared to the FY 2015 budget, total FY 2016 Educational & General (E&G) budget SOURCES increase by $10.3M or 2.2%. External subsidies from state appropriations increase by $1.2 million in FY 2016. The change in appropriations is comprised of a $4.7 million decrease experienced in FY 2015 that was made permanent in FY 2016. Additional resources were provided for an overall increase in costs for a state-supported salary increase and rising costs in both healthcare and pension rates. General Fund appropriations provide approximately 27 percent of the total E&G operating funds. E&G funding from one-time sources (fund balance carried forward from prior fiscal years) decreases by $3.3 million in FY 2016, which concludes the Bridge Funding Strategy that was created in FY 2012. FY 2016 Educational & General (E&G) budget USES increase by $10.3M or 2.2%. The budget reflects $13.1 million in additional compensation, including 1) funding for new key faculty hires; 2) state-supported salary plan increase and employer paid health insurance premium and pension increases; and 3) funding for faculty retention, promotion, and tenure. Non-personnel budgets reflect $12.5 million additional support for 1) state-supported six-year plan initiatives for pathways in cybersecurity and nursing, along with funding to support the Small Business Center and the Hylton Performing Arts Center; 2) investment in Mason’s strategic plan initiatives; 3) investment in research; 4) academic program and service funding; 5) contractual escalation costs; and 6) additional merit-based student financial aid. The E&G budget includes efforts to drive down costs and repurpose the base budget through cost containment, efficiencies, and organizational restructuring that total $15.3 million. Auxiliary Enterprise (AE) revenue in FY 2016 will increase by 4.5 percent or $10.4 million with an increase in student fee revenue of $2.3 million and in self-generated revenues of approximately $11.9 million. Mason projects a decrease of $3.8 million for AE—Independent Operations. The FY 2016 AE budget includes an increase for new capacity in student housing, additional meal plan revenues, and additional fee revenue primarily due to a student fee rate increase. Operating expense increases are primarily due to the required state-supported salary and total compensation increases and to support debt service and growth in overall operating costs. Sponsored Research activity in FY 2016 is projected to total $102.6 million,

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