2017-2018 Executive Summary

2017- 2018 BUDGET EXECUTIVE SUMMARY OFFICE OF BUDGET AND PLANNING George Mason University Total Budget, 2017-2018 Executive Summary Table of Contents BUDGET SUMMARY OVERVIEW ..................................................................................................................1 Budget Highlights .................................................................................................1 Annual Change: All Programs ..............................................................................3 All Funds—All Sources—Revenue ......................................................................4 All Funds—All Uses—Outlay ..............................................................................5 Institutional Profile ...............................................................................................6 Performance Measures ........................................................................................15 Institutional Performance Standards ...................................................................18 Strategic Plan ......................................................................................................19 EDUCATIONAL AND GENERAL...............................................................................25 Educational and General Revenues ....................................................................25 Funds Available For Allocation (Sources) .........................................................28 Use of Funds / Expenses .....................................................................................30 Educational and General Budget by Unit ..........................................................33 AUXILIARY ENTERPRISES .......................................................................................35 Auxiliary Enterprises Revenues ..........................................................................35 New Student Fee Requirements ..........................................................................40 Use of Funds / Expenses .....................................................................................42 Summary of Auxiliary Enterprises Operating Budget ........................................48 TUITION AND FEES ....................................................................................................49 STUDENT FINANCIAL ASSISTANCE.......................................................................55 SPONSORED RESEARCH ...........................................................................................63 CAPITAL OUTLAY ......................................................................................................71 BUDGET DETAILS EDUCATIONAL & GENERAL DETAIL BY MAJOR UNIT .....................................75 AUXILIARY ENTERPRISES DETAIL BY MAJOR UNIT ........................................95 i ACKNOWLEDGEMENTS The 2017-2018 Budget Executive Summary is a collaborative effort between many professional experts at George Mason University. This document would not have been possible without the assistance from many within the institution. A special thank you for those members who have contributed to this Executive Summary, in particular: Ms. Jennifer (J.J.) Wagner Davis and Dr. S. David Wu Mr. Tom Calhoun, Facilities Ms. Angela Detlev, Office of Institutional Research and Assessment Ms. Renate Guilford, Office of the Provost Ms. Lisa Kemp, Fiscal Services Dr. Thulasi Kumar, Office of Institutional Research and Assessment Mr. Mike Laskofski, Office of Sponsored Programs Dr. Michelle Marks, Office of the Provost Ms. Kimberly Maze, Office of Sponsored Programs Ms. Monica Michaud, Fiscal Services Dr. Sandra L. Tarbox, Office of Student Financial Aid Ms. Cassandra Thomas, Office of Student Financial Aid Office of Budget and Planning: Mr. David Moore, Chief Budget Officer Ms. Barbara Clark Ms. Kim Dight Ms. Jieping Li Ms. Dorian Mroz Ms. Patrice Musco Mr. Mark Stahley Ms. Tracy Williams Ms. Li Zhou ii GEORGE MASON UNIVERSITY TOTAL BUDGET, 2017–2018 BUDGET HIGHLIGHTS • Mason continues to be the largest public university in the Commonwealth with a headcount of 35,189 across all campuses, which represents a 3.2 percent increase over fall of 2015 and 16 percent of the total headcount from all 15 public, four-year institutions of higher education in the Commonwealth. Mason welcomed its largest freshman class of approximately 3,214 during fall of 2016–an indicator of Mason’s strong market brand. • Like most institutions of higher education, Mason continues to experience a shifting and competitive enrollment landscape. In FY 2018, Mason will take a conservative approach to its enrollment goals that are used to establish the original budget. The FY 2018 budget will have overall enrollment and revenues remain stable with the majority of the revenue changes coming from the tuition and fee rate increases which supports the Educational and General budget as well as increases in state-supported student financial aid. • Serving a large and diverse student population requires investment in services and programs to maintain and balance an accessible, affordable, and high quality education for our students. Within the total operating budget increase is approximately $1.5 million for strategic plan initiatives that may include, but not be limited to, support for the student redesign initiative, investment in research, information technology infrastructure and Enterprise Risk Management. The Stay Mason Initiative, a student support fund to assist Mason students who are at risk of not continuing their education due to unexpected financial situations, will increase by approximately $300,000 for a total annual budget of $1.3 million. In addition to the Stay Mason funds, institutional financial aid for undergraduates includes the continuation of out-of-state leveraging funds. The combination of Commonwealth and institutional financial aid will increase by 6.9 percent or approximately $4.4 million. • The total university budget for FY 2018 is projected to be $1.0 billion and is comparable in the total university budget for FY 2017. The FY 2018 budget comprises $928.3 million in operating funds which includes an astonishing increase of 33.3% or an additional $15.0 million in philanthropic support to the university for a total amount of $60.0 million; an impressive $22.6 million state- supported financial student aid which represents 20.9 percent increase for both undergraduate and graduate financial aid support when compared to the last Commonwealth biennium; and $63.3 million in capital outlay. Compared to the FY 2017 budget, the operating budget increases include a 4.0 percent increase in Educational and General. Capital outlay increases as construction continues on the Peterson Family Health Sciences Building, and ramps up for the Robinson Hall renovation and the Utility Infrastructure project. This increase is anticipated in the near future as Mason will see increased planning and construction funds for Robinson Hall, Utility Infrastructure, and the Telecommunication projects, which were submitted and approved by the Commonwealth for funding consideration. To incorporate an accounting change, Auxiliary Enterprises will decrease by approximately 9.8 percent. Starting in FY 2018, Independent Operations which represent private third party vendors that operate this activity through their own corporate financial and accounting systems (Sodexo, vending, etc.) will no longer be reported under the university’s total all funds budget. This change will help align revenues and expenditures that are recorded under the university’s accounting system and further align with the university’s annual financial statements. 1 GEORGE MASON UNIVERSITY TOTAL BUDGET, 2017–2018 BUDGET HIGHLIGHTS, (CONTINUED) • Compared to the FY 2017 budget, total FY 2018 Educational and General (E&G) budget will increase by $20.4 million or 4.0 percent. External subsidies from state appropriations decrease by approximately $7.0 million in FY 2018. The change in appropriations comprises additional resources that provide for an overall increase in cost for a state-supported salary increase and rising healthcare costs coupled with a General Fund budget reduction that was one-time in FY 2017, with increases and made permanent in FY 2018. The budget reflects $18.0 million in additional compensation, including 1) a state-supported salary plan increase; 2) employer-paid health insurance premium; 3) funding to annualize Mason’s retention and compensation initiative that was provided in FY 2017; 4) increase to address term faculty minimums; and 5) increases for faculty promotion and tenure. Non-personnel budgets reflect $2.4 million additional support for 1) investment in Mason’s strategic plan initiatives; 2) contractual escalation costs; 3) increase in the Stay Mason Initiative; and 4) support increases in operation and maintenance costs on new facilities. The E&G budget includes efforts to drive down costs and repurpose the base budget through cost containment, efficiencies, and organizational restructuring. These efforts helped with other costs increases that would have required additional investments. • Auxiliary Enterprise (AE) revenue in FY 2018 will increase due to an increase in student fee revenue and self-generated revenue. The FY 2018 AE budget includes an increase for additional student housing revenue and additional fee revenue, primarily due to a student fee rate increase and enrollment growth in the Mason INTO program (students in this program pay the

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