Council of Trustees Handbook

Kutztown University Goal Strategy University Name: Kutztown University Strategy Name: Overall Financial Sustainability Metrics Impacted: University Success Goal: Continue to Right-size the Annual Operating Budget RATIONALE The State System has recently developed and approved a new University Financial Sustainability Policy. The policy is intended to provide stakeholders with a greater awareness of each university’s academic, financial, and operational conditions. The criteria used for determining a university’s financial status will include: enrollment trends, operating margin, university reserves, and projected cash balances. The initial review of Kutztown University has resulted in a “Financial Sustainability Plan One (or Two)” ranking by the State System. The university intends to improve this ranking to “Green” or Overall Stability. SUPPORTING INITIATIVES • After a few years of planning to use cash reserves to balance the E&G budget, KU has placed increased emphasis and attention on right sizing the university to ensure our annual operating revenues cover our annual operating expenses. The university has made the tough decisions necessary to present and approve a balanced E&G budget for FY 2018-19 and FY 2019-20. • In January 2019, KU implemented a hiring freeze for non-instructional positions across campus. This allowed us to eliminate 45 vacant positions from the E&G budget for FY 2019-20. We have also eliminated an additional 12 positions within the Auxiliary operations. • The University has reduced its temporary faculty complement to be more in line with the declining enrollment. • Continue making data-driven decisions that increase the student FTE to instructional faculty FTE ratio. • Grant-writing release time for faculty and engagement of grant writing consultant with the intent of revenue generation. • We have cut all department operating budgets by 10% or $1.1 million. • The University has engaged in administrative shared services. • We are reviewing potential outsourcing opportunities. • We have plans to reduce our current footprint by closing a residence hall in Fall 2020. • The university is reviewing all current property leases, including buildings and parking lots, to determine if future reductions to our square footage can be staged strategically. SUPPORTING PARTNERSHIPS • KU has engaged in Shared Services with Bloomsburg and East Stroudsburg within the Procurement Services area in order to reduce personnel costs. MARKET ANALYSIS ANTICIPATED EXPENDITURE • Cost of both phased retirement and faculty retirement incentives. ANTICIPATED REVENUE