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Mandatory Enrollment Fees�&�Pro Forma Modeling

TAC Training - PART 4

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Part 4 Agenda

Enrollment Fees

Matriculation Fee
Health Fee
Building Fee Recommendation�

Historical OPU Tuition rate comparison�
Review SCH projection targets

Discuss Affordability

Pro Forma modeling and discussion

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Last Year’s fee �Recommendation

https://governance.sou.edu/wp-content/uploads/sites/63/2022/05/042222-BOT-Meeting-Materials_v4.pdf

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Enrollment Fees - Matriculation

Assessed only once to new undergrads

Often deferred until fully enrolled/taking courses

Designed to reduce other student administrative fees that used to exist:

Orientation, Scheduling, transcripts, degree applications, re-enrollment, etc.
Also supports 1^st year interest groups and learning�

�Discussion and Status? (Matt)�

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Enrollment Fees - Health

Pandemic created extra utilization of Health Areas

Testing and contact tracing increased workload and the SHWC often had to call in additional help

On-call nurse, overtime work for providers, etc.�

Exceptional level of service during the pandemic, but unrealistic to continue at that enhanced rate

Discussion and Recommendations (Anna):

Current Service Level Expectation: $150 🡪 $220

Reduced Service Level Post Pandemic: $150 🡪 $175

The SHWC has been integral in the development of the covid policies for campus. The ED’s relationships with Jackson County Public Health has provided a lot of guidance and services for students and staff. She attends the weekly Medical Advisory Group and brings back important information about covid. She also was able to get the covid vaccine quickly from public health and we were able to vaccinate staff and students. Also, through these relationships she was able to get connected with the state and receive free covid tests which they have tested many students over the past 2 years (these tests were shared with Athletics so they could meet their testing requirements). She also updates the community on the

activities of SOU which is a very large community.

SHWC has always provided vaccines and testing to students but the addition of covid vaccine, testing

and contact tracing increased their workload and we often had to call in additional help to provide this

service (on-call nurse, nurses & providers worked on their days off, etc.)

Her relationship with the county has also been very beneficial to our students with mental health needs.

She has a relationship with Asante who have given her access to their electronic health records so that if

we have a student who goes to the hospital she can view their notes and help plan their return to

campus. She also has a great relationship with the crisis team who she can call for additional mental

health assessments and has ben able to facilitate students going to the hospital when they are unable to

do it on their own.

7/1/21-2/24/22 7/1/20-6/30/21

# of Medical Appts. 2,403 2,921

# of Medial Appts that are 267 391

MH related (11% of medical appts are MH) (13% of medical appts are MH)

# of Psychiatric MH appts 267 410

# of MH visits 1,200 2,106

Covid Tests (rapid) 725 772

Covid Vaccines 241 753

Mandatory PCR tests for students, SOU employees and Aladdin employees:

We contracted with WVT labs and order the test through them, had to administer the test, mail them to

Eugene and monitor the test results. we did 2,010 tests from October 18 th to February 25 th .

This required creating and managing several spreadsheets to monitor their compliance with the testing

policy.

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Enrollment Fees - Building

Principally for debt service on bonds of non-instructional buildings that don’t have dedicated revenue outside of incidental fee; i.e. Student Union

Excluding those that have separate revenue for debt-services

Housing, Dining, SRC, others�

Debt service piece will not be able to satisfy required payments by 2030;

Enrollment decline means fewer dollars supporting the reserves.

Path forward: Keep as is. VPFA and Director, FMP working to use “Other People’s Money” and reduce cost pressure on E&G fund

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Back to Tuition…

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https://governance.sou.edu/wp-content/uploads/sites/63/2022/05/042222-BOT-Meeting-Materials_v4.pdf�

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Historic Rate Comparison (need to update comparators)�Note: UG Resident – Incoming Only

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Historic Rate Comparison

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OPU Rate Change History

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Affordability

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PRO FORMA

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Pending Model Variables

State Funding

SSCM Model with final HECC updates
Any one-time monies still in the pipeline? �

Cost Management Plan and Annualized Inflation

Bad-debt write-offs continue to look too high�
Miscellaneous revenue targets…getting relief �

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Analysis of State PUSF funding allocation…options and outcomes

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Fall SCH Projections AY22 – AY27

Alt Model Range: 42,119 – 51,204

Pro forma Weighted SCH Model: 46,105

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E&G Budget with �Forecast to Complete�(January F&A Committee)��

Steve Larvick conducted Program Management Revenue (PMR). Key takeaways:
Tuition Revenue “softening” ($2.3m less than forecasted)
Miscellaneous Revenue up to $3.3m, due to Ground Lease ‘reserve’ transfer into E&G
Total labor expenses coming in $2.9m under budget (good progress toward $3.6m cost reduction target)
S&S expense pressure…burning hot due to inflation (watch item)
$3.3M transferred into E&G
Glide slope to close with projected $5.2m EFB (ties to 8.2% KPI and roughly 1 month of operations)

�NACUBO recommendation is 40%

OR Department of Treasury requires 30 days of available cash on hand

$3.3m of federal relief funds were transferred to Education and General fund (E&G) in July (this shows up as a "transfer-in" from the federal fund)

With federal funds in E&G; cost reduction targets; additional housing transfer and a slight decrease in tuition revenue projection, anticipate we'll still come in just over $5.2m ending fund balance (EFB) (around 8.2% of EFB metric)

Cash (all funds): not meeting ‘target’, due to slight decrease in enrollment projection. In December, SOU received $3m from reserve account held by Collegiate Housing Foundation (CHF)—there is another $1.4m in reserves

Occupancy in Housing is strong (exceeding projections)

Student Credit Hours: Enrollment declines continue, but are ‘variable’

Expenses: Compared to budget, total labor expenses are down $2.9m as part of FY23 cost reduction measures. In summary:

Direct labor costs (YTD) expected to decrease $1.8m;

OPE is down by about $1m; and

Supplies and Services spending is up, based on inflationary pressures

�

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E&G Cost Realignment

New baseline (as of 1/28/23)

No labor savings

Revenue:

State at CSL minus 2%

SCH modeled, starts to level out

Conservative Misc Revenues (historic avg)�

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E&G Cost Realignment

New baseline �(as of 1/28/23)

Plan B

Recurring labor savings

Revenues, same + :

One-time revenues (HEERF) not shown ($3.3m)
New revenues not assumed

Expenses:

Only uses labor savings in E&G
Assumes Athletics savings reduce transfer

Assumes SCH ‘holds” (vs risk)

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E&G Budget Planning Factors for upcoming Budget Cycle �(with Forecast to Complete notes for context)�(Draft for 3/16 F&A)��

Conservative State Revenue allocation: $26.4m at GRB – $1m less than planned ($27.4m projected in last pro forma)
Tuition Revenue still “softening” (this FY periodic management review shows $xx m less than forecasted)
Miscellaneous Revenue up to $3.3m, due to Ground Lease ‘reserve’ transfer into E&G. Strong in FY 24; then levels out
Total labor expenses coming in $xx (was $2.9m) under budget (good progress toward FY 23 $3.6m cost reduction target)
S&S expense pressure…burning hot due to inflation (watch item)…modeling growth at 2.5% (very aggressive, less than inflation)
$3.3M transferred into E&G last FY. Update pro forma will focus on recurring costs and lasst $2.9m will show separate line
Glide slope to close with projected $5.2m EFB (ties to 8.2% KPI and roughly 1 month of operations)

�NACUBO recommendation is 40%

OR Department of Treasury requires 30 days of available cash on hand

$3.3m of federal relief funds were transferred to Education and General fund (E&G) in July (this shows up as a "transfer-in" from the federal fund)

With federal funds in E&G; cost reduction targets; additional housing transfer and a slight decrease in tuition revenue projection, anticipate we'll still come in just over $5.2m ending fund balance (EFB) (around 8.2% of EFB metric)

Cash (all funds): not meeting ‘target’, due to slight decrease in enrollment projection. In December, SOU received $3m from reserve account held by Collegiate Housing Foundation (CHF)—there is another $1.4m in reserves

Occupancy in Housing is strong (exceeding projections)

Student Credit Hours: Enrollment declines continue, but are ‘variable’

Expenses: Compared to budget, total labor expenses are down $2.9m as part of FY23 cost reduction measures. In summary:

Direct labor costs (YTD) expected to decrease $1.8m;

OPE is down by about $1m; and

Supplies and Services spending is up, based on inflationary pressures

�

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Revenue Assumptions, FY 24

State Revenue Down ($26.4m)

Pessimistic, based on projected allocation: $26.4m at GRB – $1m less than planned ($27.4m projected in last pro forma)

Tuition Revenue @ -4.5% SCH = $xx
Miscellaneous Revenue up to $xx m,

due to Ground Lease ‘reserve’ transfer into E&G. Strong in FY 24; then levels out

Congressionally Directed Spending - $3.5m ask for SIS
$15m earmark for TRUs (uncertain outcome / allocation)

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Cost Assumptions, FY 24

Refine Cost Management recurring savings (about 80 FTE) projection… “time activate the plan”

Plan ties to approximately $9m in recurring savings

Forecast (update) transfers from E&G, based on changes in Athletics (less cost) and Housing reorganization.
Update cost relationship with Physical Plant Fund / E&G and Auxiliaries (Housing and Athletics)

Update FY26 to show conservative operating cost of CISR carrying over (approx. $1m)

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Screen share // �PRO FORMA

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Questions / Comments

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Enrollment Fees - Health

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Enrollment Fees - Building

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Enrollment Fees – Building (last year)

Recommendation to split into 2 Distinct Fees:

Building Debt-Service Fee: $50/term
Technology Infrastructure Fee: $25/term�
Total Increase from current fee: $15/term