Wright State proposes fiscal 2012 budget to trustees

Matthew Filipic, Senior VP for Business and Fiscal Affairs briefed the Wright State Board of Trustees and hundreds more from the campus community.

Wright State University proposed a fiscal 2012 budget to its Board of Trustees on May 26 that will help the university weather significant state budget cuts while making investments in growth areas and minimizing increases in tuition.

The university proposed an annual operating budget of $301 million for fiscal 2012. It’s part of an overall budget of $442 million, which includes money for restricted use such as research grants and contracts.

The operating budget represents less than a 1 percent increase over that of 2011, even though the university is saddled with increased expenses such as $2.5 million in the cost of health benefits, inflation of $1.25 million, the cost of serving about 1,000 more students, and making up a loss of some state capital funds.

Wright State targeted reductions of $6.5 million for fiscal 2012, largely due to the impact the loss of $14 million in federal stimulus funding has had on state funding to higher education. A year ago, the $14 million received in stimulus dollars replaced State Share of Instruction (SSI) money. With SSI monies for 2012 expected to increase less than $1 million, the actual loss of support exceeds $13 million when coupled with the loss of federal stimulus funds.

Extra chairs had to be brought in to accomodate the large crowd that attended the Wright State budget presentation for fiscal year 2012.

While planned budget reductions and reallocations in recent years and increased revenue from enrollment growth and its investment portfolio have helped the university soften the impact of funding cuts, the new budget will require additional belt tightening across campus.

As part of the proposal, the university is asking trustees to approve an undergraduate tuition increase this fall of $273 per year.

“The reduction in state funding is a blow that will require a modest increase in tuition,” said Wright State President David R. Hopkins. “However, we are committed to having one of the lowest tuitions among Ohio’s public universities and giving students an affordable, high quality education at a time when they are looking to get the most out of their investment.”

The proposed annual undergraduate tuition of $8,070 would be more than last year’s $7,797, but still well below that of most of Wright State’s peer institutions in Ohio.

Matthew Filipic, senior vice president for business and fiscal affairs, said the university has a history of solid, conservative financial management that has enabled it to mostly anticipate the loss of stimulus funding that has dramatically impacted the state budget. Since fiscal 2010, and including those planned for 2012, the university has implemented budget reductions and reallocations of approximately $20 million.

But proposed tuition increases—3.5 percent for undergraduate tuition, 4.5 percent for graduate tuition, and 5 percent for the Boonshoft School of Medicine, the School of Professional Psychology and the Doctor of Nursing Practice program—will only partially offset the funding reductions. “We will need to continue to challenge ourselves to become even more efficient,” Filipic said.

Budget reductions this year—to be shared by every unit on campus—have been softened by a planned $2.1 million increased return on the university’s financial investment portfolio and record enrollment last fall of nearly 20,000 students, which boosted tuition revenue.

“If enrollment growth is sustained, Wright State will become even stronger,” Filipic said. Wright State conservatively expects its enrollment to grow 2 percent this fall.

In spite of the need for campus-wide budget reductions, Wright State plans to earmark $6.9 million for targeted investments in areas that hold great promise for future growth, according to its strategic plan, as well as to maintain some flexibility as the state budget is finalized in July.

“Wright State will continue to grow and drive the state’s economy by maintaining crucial momentum and strengthen important partnerships with Wright-Patterson Air Force Base, while continuing to get more Ohioans into bachelor’s degrees,” said President Hopkins.

Members of the Wright State University Board of Trustees will formally consider the 2012 budget as part of their annual workshop May 26. A vote by members of the Board on the proposed budget will take place at the trustees’ public session June 10.