APPROVED August 20, 2015 WESTERN WASHINGTON UNIVERSITY BOARD OF TRUSTEES MEETING MINUTES MONDAY, July 20, 2015 1. CALL TO ORDER Chair Karen Lee called the special meeting of the Board of Trustees of Western Washington University to order at 10:04 a.m., Monday, July 20, 2015 in the Board of Trustees Conference Room, Old Main 340, at Western Washington University in Bellingham, Washington. Board of Trustees Karen Lee, Chair Sue Sharpe, Vice Chair Dick Thompson, Secretary – by phone Betti Fujikado Chase Franklin – by phone Earl Overstreet Ralph Munro – by phone Western Washington University Bruce Shepard, President Brent Carbajal, Provost and Vice President for Academic Affairs Richard Van Den Hul, Vice President for Business and Financial Affairs Steve Swan, Vice President for University Relations and Community Development Belina Seare, Associated Students President Molly Ware, Faculty Senate President Roger Leishman, Assistant Attorney General Kerena Higgins, Assistant Attorney General Paul Cocke, Director, University Communications Paul Dunn, Senior Executive Assistant to the President Barbara Sandoval, Assistant to the President and Secretary to the Board of Trustees Elissa Hicks, Assistant Secretary to the Board of Trustees 2. RESOLUTION 2015-05 THANKING THE WASHINGTON STATE LEGISLATURE President Bruce Shepard said last summer the financial budget outlook for Washington State higher education institutions was looking bleak, with a long and difficult legislative session forecasted. He said ultimately the legislature came through for higher education in general and Western specifically by largely funding the operating budget requests and with a capital investment in Carver. President Shepard thanked the Legislature for their support of Western a resolution recognizing their efforts. Trustee Lee asked Trustee Fujikado to read Resolution No.2015-06 Recognizing the Efforts of the Washington State Legislature. APPROVED August 20, 2015 RESOLUTION NO. 2015 – 05 A RESOLUTION OF THE BOARD OF TRUSTEES OF WESTERN WASHINGTON UNIVERSITY RECOGNIZING THE EFFORTS OF THE WASHINGTON STATE LEGISLATURE WHEREAS, the WASHINGTON STATE LEGISLATURE convened on Monday, January 12, 2015 to conduct the business of the people of the great state of Washington in another challenging budget year; and WHEREAS, the WASHINGTON STATE LEGISLATURE with the 2015 – 2017 final budget compromise built upon the investments made in the previous biennium to prioritize funding for public higher education after Washington’s colleges and universities experienced some of the deepest funding cuts in the nation and throughout state government during the Great Recession; and WHEREAS, the WASHINGTON STATE LEGISLATURE adopted a bipartisan budget with key investments in higher education that will maintain our state’s forward trajectory, grow our economy, and increase opportunities for our students and residents; and WHEREAS, the WASHINGTON STATE LEGISLATURE has provided a level of investment that will be critical in preserving continued excellence at Western Washington University at an affordable cost to the students and families of Washington state; and WHEREAS, the WASHINGTON STATE LEGISLATURE has provided the resources necessary for Western to reduce tuition for resident undergraduate students by a total of 20% over the 201516 and 2016-17 academic years, provide competitive compensation adjustments for faculty and staff, and expand Western’s academic offerings on the Kitsap and Olympic Peninsulas; and WHEREAS, the WASHINGTON STATE LEGISLATURE also provided critical funding in the 201517 capital budget for the renovation and expansion of Western’s Carver Academic Facility; and WHEREAS, the WASHINGTON STATE LEGISLATURE concluded their regular legislative session and three special legislative sessions after months of dedicated and hard work to serve the citizens and students of this great state on Friday, July 10th; and NOW, THEREFORE BE IT RESOLVED, that the Board of Trustees of Western Washington University extends its appreciation to the WASHINGTON STATE LEGISLATURE for recognition of Western’s excellence and their vision for our contributions to higher education in this state, and to express our utmost gratitude for making public higher education a funding priority in the 2015 – 2017budget. PASSED AND APPROVED by the Board of Trustees of Western Washington University at its special meeting on July 20, 2015. MOTION 07-01-2015: Motion was approved. Trustee Fujikado moved that the Board of Trustees approve Resolution 2015-05 Thanking the Washington State Legislature. APPROVED August 20, 2015 3. 2015 – 2016 OPERATING BUDGET AND RELATED MATTERS President Shepard introduced the budget by reminding people that Western’s budget has a yearlong, campus wide, open and transparent process for input and development. He said that this year’s budget addressed the three top goals of tuition reduction, competitive compensation, equity, inclusion and diversity. Richard Van Den Hul, Vice President for Business & Financial Affairs then gave a brief summary of the attached budget details (ATTACHMENT A). Trustees commented about the completeness of the overall process and the explanation provided in the documents. Trustees asked if there were any publicly submitted comments on the budget, to which President Shepard answered that no public comments were received. Trustees also asked about whether the late passage of the final budget from the legislature affected any projects on campus. Vice President Van Den Hul said there were minor adjustments but no major operations or programs were affected by the late legislative adoption. MOTION 07-02-2015: Trustee Sharpe moved that the Board of Trustees of Western Washington University, upon the recommendation of the President, approve a 5.0% reduction in the 2015-2016 annual tuition operating fee rate for state-funded resident undergraduate students; and I FURTHER MOVE, that the capital building fee for state-funded resident undergraduate students be held at the 2014-2015 assessed rate; and I FURTHER MOVE, that the 2015-2016 annual tuition operating fees and capital building fees for the non-resident undergraduate, resident graduate, non-resident graduate and the Masters in Business Administration (MBA) rates for resident and non-resident students be raised by 2.9% respectively. A roll call vote was performed with all Trustees present voting yes. (Lee, Sharpe, Thompson, Fujikado, Franklin, Munro, Overstreet) (Brickey-Smith was absent) Trustees asked to take a moment to recognize the accomplishment of providing a 5% tuition reduction for state-funded resident undergraduate students, thanks to the support of the legislature. MOTION 07-03-2015: Trustee Sharpe moved that the Board of Trustees of Western Washington University, upon the recommendation of the President, approve a 2015-2016 Annual State Operating Budget of $152,395,853 consisting of a State Appropriations in the amount of $61,942,000; Western Washington University net tuition operating fee revenue of $86,691,399; and administrative services assessment revenue of $3,762,454. A roll call vote was performed with all Trustees present voting yes. (Lee, Sharpe, Thompson, Fujikado, Franklin, Munro, Overstreet) (Brickey-Smith was absent) APPROVED August 20, 2015 4. 2015 – 2017 CAPITAL BUDGET President Shepard talked about the Carver Academic Building appropriation and thanked all who worked on it. He was especially grateful for the student’s support of the project when speaking to legislators about how important Carver was to them. Vice President Van Den Hul provided specifics regarding the capital appropriations as seen in ATTACHMENT B. The Carver funding includes state funds but also includes a local funding element. Van Den Hul also said that there was no money included for the Science Building Pre-Design which Western had requested, but that a request will be brought forward in the next capital budget. Trustees had questions about how the Carver project will impact the campus during construction for the next couple of years. Van Den Hul said that there will be the normal construction site impacts, but that a steering committee was formed beforehand to try and minimize those impacts and relocate those offices that would be displaced during construction. MOTION 07-04-2015: Trustee Sharpe moved that the Board of Trustees of Western Washington University, upon the recommendation of the President, accepts the 2015-2017 Capital Budget totaling $86,332,000 comprised of $76,072,000 in appropriations, $4,260,000 in reappropriations and $6,000,000 in alternative financing (COP) and approves the distribution by major categories in accordance with the attached chart. Further, MOVED that $500,000 be approved for Science Building Renovation and Addition Predesign. A roll call vote was performed with all Trustees present voting yes. (Lee, Sharpe, Thompson, Fujikado, Franklin, Munro, Overstreet) (Brickey-Smith was absent) 5. CONSENT ITEMS Chair Lee introduced the consent items to which there were no questions. MOTION 07-05-2015: Trustee Overstreet moved that the Board of Trustees of Western Washington University, upon the recommendation of the President, award a contract to M. A. Mortenson Company, Bellevue, WA, for the Carver Academic Facility Renovation maximum allowable construction cost (MACC, commonly referred to as guaranteed maximum price) contract amount of $58,274,220 (plus sales tax). The motion passed. 6. PRESIDENTIAL SEARCH PROCESS Chair Lee started by reading a quote from a best practices book that she has focused her thoughts on since the beginning of the search process saying, “Few moments have more consequence to a college or university than the selection of a new president. More than any other leader a president comes to personify an institution and shape its future. A president must provide leadership in maintaining and strengthening academic integrity and reputation. He or she must build a sense of shared mission, ensure APPROVED August 20, 2015 effective competitive programs and secure external support. A good choice came benefit a college or university far into the future, a poor one can exact a heavy and lasting toll. The process of presidential search and selection carries both enormous opportunity and considerable risk. It is crucial to get it right” (Joseph S. Johnston, Jr. & James P. Ferrare, A Complete Guide To Presidential Search for Universities and Colleges, [AGB Press, 2013] page 1). Chair Lee said that the selection of a president is the most important responsibility a board has and it is solely the responsibility of the governing Board. She asked Trustee Fujikado to read the charge to the Presidential Search Advisory Committee Chair to outline the beginning steps of this search process. RESOLUTION 2015-06 A RESOLUTION OF THE BOARD OF TRUSTEES OF WESTERN WASHINGTON UNIVERSITY APPOINTMENT OF AND INITIAL CHARGE TO PRESIDENTIAL SEARCH ADVISORY COMMITTEE CHAIR WHEREAS, President Bruce Shepard has announced his intention to retire from the Presidency of Western Washington University after the conclusion of the 2015-16 academic year; and WHEREAS, the Board of Trustees is responsible for the timely selection and appointment of an individual to replace President Shepard as president of the University; and WHEREAS, the Board of Trustees wishes to formally commence a presidential search process to discharge its responsibility to select the next president of the University; and WHEREAS, the Board of Trustees intends that such process be broad and inclusive, NOW THEREFORE, BE IT RESOLVED by the Board of Trustees of Western Washington University as follows: 1. Vice Chair Susan Sharpe is appointed to serve as Presidential Search Advisory Committee Chair and to lead the presidential search process as Chair of the Presidential Search Advisory Committee. 2. The Chair of the Presidential Search Advisory Committee shall establish and direct the search process, in consultation with the Board and its Chair, and such other constituencies, groups and individuals as may be appropriate, including representatives of University faculty, staff and students, and external constituency groups. In so doing, the Chair of the Presidential Search Advisory Committee is authorized and directed to utilize and employ on the University’s behalf a Presidential Search Advisory Committee, consultants, a staff administrator, and such other staff or University resources as may be necessary or appropriate. 3. The size and composition of the Presidential Search Advisory Committee shall be agreed to by the Board based on recommendations from the Presidential Search Advisory Committee Chair. Individual appointments to the Presidential Search Advisory Committee shall be made by the Presidential Search Advisory Committee Chair and Board Chair following Board approval of the size and composition of the Presidential Search Advisory Committee. APPROVED August 20, 2015 4. The Chair of the Presidential Search Advisory Committee is instructed to conduct the search process in a manner that is generally similar to past presidential searches conducted by the Board; provided, however, that the Board intends that the search process retain the flexibility necessary to ensure the timely selection and appointment of the best possible candidate to serve as the next president of the University. 5. The Board intends that the presidential search be conducted on a basis that is inclusive and transparent, while maintaining appropriate candidate confidentiality. The Board intends that on-campus Presidential Search Advisory Committee members meet the following general criteria: committed to the best interests of the University; respected by colleagues and coworkers; record of active engagement in University affairs; good judgment; ability to maintain strict confidentiality; demonstrated ability to work collaboratively with others; and willing and able to devote the time necessary to this process (including meetings held mainly during evenings and weekends with possible travel to meetings held in remote locations). 6. Notwithstanding the foregoing, the Board retains all of its rights and duties, and discretion, by law, to appoint the President of the University. MOTION 07-06-2015: Trustee Fujikado moved that the Board of Trustees approve Resolution 2015-06 Appointment of and Initial Charge to Presidential Search Advisory Committee Chair. The motion passed. Trustee Sharpe reaffirmed the Board’s and the Presidential Search Advisory Committee’s commitment to upholding, as much as possible, the transparent and inclusive campus culture throughout the entire search process. 7. DATE FOR NEXT REGULAR MEETING: August 20, 2015 in Anacortes, Washington at the Shannon Point Marine Center. 8. The meeting adjourned at 11:06 a.m. ATTACHMENT A APPROVED August 20, 2015 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES DATE: July 20, 2015 TO: Members of the Board of Trustees FROM: President Bruce Shepard by Vice President Richard Van Den Hul SUBJECT: Approval of 2015-2016 Academic Year Tuition Fees and Rates Purpose of Submittal: After a second special 30-day session, the Legislature and Governor have passed and signed an appropriations bill. Based on this approved bill, the Board is requested to approve the 2015-2016 Academic Year Tuition Fees and Rates. Tuition fees include both the tuition operating fee and the capital building fee for each category of student. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon the recommendation of the President, approve a 5.0% reduction in the 2015-2016 annual tuition operating fee rate for state-funded resident undergraduate students; and FURTHER MOVED, that the capital building fee for state-funded resident undergraduate students be held at the 2014-2015 assessed rate; and FURTHER MOVED, that the 2015-2016 annual tuition operating fees and capital building fees for the non-resident undergraduate, resident graduate, non-resident graduate and the Masters in Business Administration (MBA) rates for resident and non-resident students be raised by 2.9% respectively. Supporting Information: Please see attached supporting information, including charts detailing proposed dollar and percent increases for 2015-2016 tuition fees and comparison data to other institutions of higher education. Additional Information: The 2015-2016 annual operating budget plan which relies on tuition operating fee revenue generated by the tuition changes proposed under this submittal, will also be presented at the July 20, 2015 Board meeting. Attachment: Memo of Supporting Information on Setting 2015-2016 Academic Year Tuition Fees and Rates ATTACHMENT A APPROVED August 20, 2015 WESTERN WASHINGTON UNIVERSITY SUPPORTING INFORMATION SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard DATE: July 20, 2015 SUBJECT: Supporting Information on Setting 2015-2016 Academic Year Tuition Fees and Rates In an effort to reduce financial barriers to public higher education, the Legislature included historic tuition reductions in the appropriations bill for 2015-2017. The Legislature defines “tuition” as the tuition operating fee and the capital building fee. The operating fee contributes to day-to-day operations of the University and supports Western’s annual operating budget plans. The Legislature provided funding to offset a 5.0% reduction in the operating fee for state-funded resident undergraduate tuition for academic year 2015-2016, and an additional 15.0% reduction in academic year 2016-2017. The Legislature did not fund any reduction to the operating fee portion of non-resident undergraduate or any graduate tuition rates, choosing instead to uphold the long-standing authority of the Board to set those rates as deemed necessary to support the ongoing needs of the institution. Proposed 2015-2016 Tuition Rates It is recommended that Western reduce the state-funded resident undergraduate operating fee by 5.0%, as required by the Legislature in the 2015-2017 Operating Budget bill, and hold the capital building fee for this student category at the 2014-2015 annual rate. After review by the campus, and upon the recommendation of the Vice Presidents and Deans, it is recommended that tuition fees for non-resident undergraduate, resident graduate, non-resident graduate, and Masters of Business Administration (MBA) rates for resident and non-resident students be raised by 2.9% respectively. Table 1 below details proposed 2015-2016 tuition fees (tuition operating and capital building fees). As required by law, proposed capital building fee percentage increases are equivalent to the tuition operating fee percentage increases for each student category, with the exception of the resident undergraduate category where it is held at the 2014-2015 level. ATTACHMENT A APPROVED August 20, 2015 Table 1 TOTAL TUITION (Operating Fee and Capital Building Fee) Resident Undergraduate Non-Resident Undergraduate Resident Graduate Non-Resident Graduate Resident MBA Non-Resident MBA 2014-15 2015-16 $ Change % Change $7,503 $7,143 -$360 -4.8% $18,945 $19,495 $550 2.9% $8,469 $8,714 $245 2.9% $18,182 $18,709 $527 2.9% $9,798 $10,082 $284 2.9% $19,562 $20,129 $567 2.9% 5% Resident Undergraduate Tuition reduction is applied to operating fee only; therefore total tuition is reduced slightly less than 5%. Please see Attachment A detailing percentage and dollar increases for breakout of tuition operating fee and capital building fee components. Resident Undergraduate Tuition The majority of Western’s students are resident undergraduates, making up approximately 88.0% of the headcount for the 2015 academic year. A decrease of 5.0% in the operating fee component of the tuition fees is recommended for this student group, equating to an annual decrease of $360. • While the WSAC data shows this classification to be 14.1% higher than the national average, the study did not account for differentiation such as Carnegie classification, institution size, scope or type of degrees produced in the compilation of the national average. • Both the University of Washington and Washington State University undergraduate rates are approximately 40.0% higher than Western. • Comparing the Global Challenge States Peer List, 46.0% of Western’s peer group fall at or below Western’s undergraduate 2014 tuition and fees. • With regards to the Board-approved Peer List, 75.0% of Western’s peer group fall at or below Western’s undergraduate 2014 tuition and fees. Non-Resident Undergraduate Tuition Non-resident undergraduate students represented approximately 8.8% of Western’s 2015 academic year headcount. The proposed tuition increase for non-resident undergraduate students is 2.9%, equating to an annual increase of $550. ATTACHMENT A APPROVED August 20, 2015 • Tuition increases for this classification for the past two years were 3.0% and 3.0% as compared to resident undergraduate increases of 0.0% and 0.0% respectively. • The WSAC data shows Western closer in this category than resident tuition at 13.3% over the computed national average. • University of Washington non-resident undergraduate tuition is 62.0% higher than Western. • Comparing the Global Challenge States Peer List, 27.0% of Western’s peer group fall at or below Western’s non-resident undergraduate 2014 tuition and fees. • With regards to the Board-approved Peer List, 70.0% of Western’s peer group fall at or below Western’s non-resident undergraduate 2014 tuition and fees. Resident Graduate Tuition Resident graduate students represented 2.8% of Western’s 2015 academic year student headcount. The proposed tuition increase for resident graduate students is 2.9% equating to an annual increase of $245. • Tuition increases for this classification for the past two years were 3.0% and 3.0% as compared to resident undergraduate increases of 0.0% and 0.0% respectively. • This classification is the closest to the WSAC computed national average at 11.0% over average. • UW resident graduate tuition is 60.0% higher than Western. • Comparing the Global Challenge States Peer List, 29.0% of Western’s peer group fall at or below Western’s resident graduate 2014 tuition and fees. • With regards to the Board-approved Peer List, 64.0% of Western’s peer group fall at or below Western’s resident graduate 2014 tuition and fees. Non-Resident Graduate Tuition Non-resident graduate students represented less than 1.0% of Western’s 2015 academic year student headcount. The proposed tuition increase for non-resident graduate students is 2.9%, representing an annual increase of $527. • Tuition increases for this classification for the past two years were 3.0% and 0.0% as compared to resident undergraduate increases of 0.0% and 0.0% respectively. ATTACHMENT A APPROVED August 20, 2015 • The WSAC study shows non-resident graduate tuition as 15.3% over the national average. • University of Washington non-resident graduate tuition is 41.0% higher than Western. • Comparing the Global Challenge States Peer List, 51.0% of Western’s peer group fall at or below Western’s non-resident graduate 2014 tuition and fees. • With regards to the Board-approved Peer List, 75.0% of Western’s peer group fall at or below Western’s non-resident graduate 2014 tuition and fees. Masters in Business Administration (MBA) The MBA tuition rate is currently the only differentiated tuition Western charges. Approved by the Board of Trustees during the 2011-2013 biennial tuition setting process as part of a longterm strategy to price the MBA program appropriately in the marketplace, MBA resident and non-resident students are annually assessed 16.0% and 8.0% higher than other resident and non-resident graduate students, respectively. The proposed tuition increase for both resident and non-resident MBA students is 2.9%, representing an annual increase of $284 and $567 respectively, to continue this long-term strategy. Attachments: Attachment A Attachment B Attachment C Proposed Western Tuition Dollar and Percentage Increases 2015-2016 WSAC 2013-2014 Tuition and Fee Report Comparison of WA Institutions Global Challenge States Peer List and Board-approved Peer List Comparison Chart ATTACHMENT A APPROVED August 20, 2015 Attachment A Western Washington University Proposed 2015‐2016 Tuition Rates (Operating Fee and Capital Building Fee) TUITION FEES Operating Fee Resident Undergraduate Non‐Resident Undergraduate Resident Graduate Non‐Resident Graduate Resident MBA 2014‐15 2015‐16 $ Change % Change $7,209 $6,849 ‐$360 ‐5.0% $18,194 $18,722 $528 2.9% $8,250 $8,489 $239 2.9% $17,630 $18,141 $511 2.9% $9,564 $9,841 $277 2.9% Non‐Resident MBA $18,977 $19,527 $550 2.9% Capital Building Fee 2014‐15 2015‐16 $ Change % Change Resident Undergraduate $294 $294 $0 0.0% Non‐Resident Undergraduate $751 $773 $22 2.9% Resident Graduate $219 $225 $6 2.7% Non‐Resident Graduate $552 $568 $16 2.9% Resident MBA $234 $241 $7 3.0% Non‐Resident MBA $585 $602 $17 2.9% 2014‐15 2015‐16 $ Change $7,503 $7,143 ‐$360 ‐4.8% $18,945 $19,495 $550 2.9% $8,469 $8,714 $245 2.9% $18,182 $18,709 $527 2.9% $9,798 $10,082 $284 2.9% $19,562 $20,129 $567 2.9% TOTAL TUITION (Operating Fee and Capital Building Fee) Resident Undergraduate Non‐Resident Undergraduate Resident Graduate Non‐Resident Graduate Resident MBA Non‐Resident MBA % Change Tuition reduction is applied to operating fee only; therefore total tuition is reduced slightly less than 5%. Differences on change percentages to capital building fee rates due to rounding dollar changes to whole dollars. the Budget Office July 13, 2015 ATTACHMENT A APPROVED August 20, 2015 Attachment B Western Washington University 2013-14 Tuition and Fee Rates* for Washington Universities Compared to National Averages WSAC 2013-14 Tuition and Fee Report Undergraduate Nonresident Resident Resident Graduate Nonresident Western Washington University Tuition and Fees National Average Dollar +/- National Average Percent +/- National Average $8,863 $7,766 $1,097 14.1% $19,752 $17,427 $2,325 13.3% $9,582 $8,632 $950 11.0% $19,542 $16,950 $2,592 15.3% University of Washington Tuition and Fees National Average Dollar +/- National Average Percent +/- National Average $12,397 $9,946 $2,451 24.6% $31,971 $26,042 $5,929 22.8% $15,303 $11,469 $3,834 33.4% $27,552 $24,589 $2,963 12.1% Washington State University Tuition and Fees National Average Dollar +/- National Average Percent +/- National Average $12,327 $9,946 $2,381 23.9% $25,409 $26,042 ($633) -2.4% $12,627 $11,469 $1,158 10.1% $26,059 $24,589 $1,470 6.0% Eastern Washington University Tuition and Fees National Average Dollar +/- National Average Percent +/- National Average $7,961 $7,766 $195 2.5% $19,931 $17,427 $2,504 14.4% $10,924 $8,632 $2,292 26.6% $24,570 $16,950 $7,620 45.0% Central Washington University Tuition and Fees National Average Dollar +/- National Average Percent +/- National Average $8,976 $7,766 $1,210 15.6% $20,502 $17,427 $3,075 17.6% $9,909 $8,632 $1,277 14.8% $20,886 $16,950 $3,936 23.2% The Evergreen State College Tuition and Fees National Average Dollar +/- National Average Percent +/- National Average $8,574 $7,766 $808 10.4% $20,661 $17,427 $3,234 18.6% $8,905 $8,632 $273 3.2% $21,055 $16,950 $4,105 24.2% *Note: Tuition and Fees for Washington's 4-year institutions includes the institution's operating fee, capital building fee, and all mandatory fees the Budget Office July 13, 2015 ATTACHMENT A APPROVED August 20, 2015 Attachment C Western Washington University FY 2014 Comparison of Tuition and Mandatory Fees Global Challenge States ‐ WWU Peer Group Resident Undergraduate Nonresident Undergraduate Resident Graduate Nonresident Graduate WWU Tuition and Fees (FY 2014) $ 8,863 $ 19,752 $ 9,582 $ 19,542 Resident Undergraduate Nonresident Undergraduate Resident Graduate Nonresident Graduate WWU Tuition and Fees (FY 2014) $ 8,863 $ 19,752 $ 9,582 $ 19,542 Global Challenge States (60th Percentile) $ 8,981 $ 20,196 $ 9,990 $ 20,486 $ Difference $ $ $ $ WWU Peer Group (60th Percentile) $ $ $ $ 8,489 18,798 9,303 19,021 (118) (444) (201) (362) $ Difference $ $ $ $ % Difference ‐1.3% ‐2.2% ‐2.0% ‐1.8% % Difference 374 954 279 521 4.4% 5.1% 3.0% 2.7% Percentile Rank 46% 27% 29% 51% Percentile Rank 75% 70% 64% 75% NOTE: A) The Global Challenge States peer group is comprised of 11 institutions (see the Budget Office website for list). B) WWU Peer Group is comprised of 25 institutions (see the Budget Office website for list). C) "Percentile Rank" represents WWU's relative position to the peer group. For example, a 60% percentile rank indicates that 60% of the peer group are at or below WWU tuition and fee rate. the Budget Office July 13, 2015 ATTACHMENT A APPROVED August 20, 2015 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Vice President Richard Van Den Hul DATE: July 20, 2015 SUBJECT: Approval of 2015-2016 Annual Operating Budget PURPOSE: Action Item Purpose of Submittal: Based on the conference committee budget passed during the third 2015 special session of the Legislature, and as signed by the Governor, the Board is now asked to approve the 2015-2016 State Operating Budget for Western Washington University. In addition, the Board will be asked to approve 2015-2016 tuition rate increases at its July 20, 2015 meeting, providing revenue necessary to support the 2015-2016 annual operating budget. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon the recommendation of the President, approve a 2015-2016 Annual State Operating Budget of $152,395,853 consisting of a State Appropriations in the amount of $61,942,000; Western Washington University net tuition operating fee revenue of $86,691,399; and administrative services assessment revenue of $3,762,454. Supporting Information: See attached memo on the 2015-2016 Operating Budget. Source of Funding: State appropriations (general fund-state, education legacy trust funds, and capital projects account); net tuition operating fee revenue; and administrative services assessment revenue. Attachment: Memo of Supporting Information for Board Approval of the 2015-2016 Annual Operating Budget ATTACHMENT A APPROVED August 20, 2015 WESTERN WASHINGTON UNIVERSITY SUPPORTING INFORMATION SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Vice President Richard Van Den Hul DATE: July 20, 2015 SUBJECT: Supporting Information for Board Approval of the 2015-2016 Annual Operating Budget Schedule of Approvals for 2015-2016 Annual Operating Budgets On July 20, 2015, the Board will be requested to approve tuition rates for all student categories for the 2016 academic year. At this same meeting, the Board will be asked to approve the 2015-2016 Annual Operating Budget, which relies on the projected tuition operating fee revenues generated from these tuition rate proposals. Introduction In order to fund the basic instructional academic support missions of the institution, the President is proposing, for Board approval, a 2015-2016 budget for state funded operations which reflects revenue and expenditure estimates available for university operations from state appropriations, net tuition operating fees, and the administrative services assessment. Proposed FY 2015-2016 Annual Operating Budget A summary of all revenue sources is included in the table below. Please note that tuition operating fee revenue is presented net of tuition waivers and Western’s student loan/grant fund. 2015-16 Fiscal Year WWU State Operating Budget by Funding Source Funding Source State Appropriations Net Tuition Operating Fees Administrative Services Assessment State Operating Budget Proposed for Board Approval FY 2016 % of Budget $61,942,000 $86,691,399 41% $3,762,454 2% 100% $152,395,853 57% ATTACHMENT A APPROVED August 20, 2015 Western’s state operating expenditures have been historically supported by a combination of state appropriations and tuition operating fees. In the 2014-2015 budget, state appropriations represented 35.0% of WWU's state operating budget compared to 62.0% in net tuition operating fees, so progress was made this Legislative session to move back toward a goal of a 50.0%50.0% split. Western’s Student Loan/Grant Fund Gross tuition operating fees collected are currently subject to a 4.0% minimum set-aside for the WWU student loan and grant fund. The capital building fee (part of tuition) and student activities fee are assessed at 3.5%. For the 2015-2016 fiscal year, Western will allocate close to $4.9 million to this form of financial aid. Western’s Budget Process While Western’s request for new biennial funding was submitted to the Governor’s office in September 2014, Western’s transparent, bottom-up budget building process started in earnest in January. Campus Planning Unit Leaders submitted proposals for new campus initiatives and funding requests for the 2015-2017 operating budgets. Proposals and presentations were made by Deans and Vice Presidents to the campus via audiocast meetings of the University Planning and Resources Council (UPRC). Feedback for improvements was solicited from the campus, proposals were voted on by the UPRC, and top priorities were recommended to the President and Vice Presidents. Budget Recommendation Detail This extended Legislative session ended with an infusion of new funding for higher education, including replacement funding to reduce state-funded resident undergraduate tuition by 5.0% in the 2015-2016 academic year and an additional 15.0% in the 2016-2017 academic year, nearly $9.9 million in salary increase funding for all employees, and $1.5 million to extend Western’s Cyber Security Program to Olympic and Peninsula Colleges. The culmination of six months of deliberations on campus produced a recommendation from the Vice Presidents and the Deans for the utilization of these new funds. Please see Attachment A for a copy of this recommendation. The version with active hyperlinks may be reviewed at the following web page: http://www.wwu.edu/upb/1617AOB/1617buddoc.pdf The President now recommends the Board of Trustees approve the state operating budget in the amount of $152,395,853 for the 2015-2016 Fiscal Year. ATTACHMENT A APPROVED August 20, 2015 Attachment A July 10, 2015 Colleagues: Western’s proposed 2015-17 Operating Budget is now ready for your review. It has been an extraordinarily long road. Thank you for your patience. And, for the involvement of so many of you in what, as always, has been a bottom up, open, and transparent year-long process. Building upon that broad and thoughtful involvement, the deans, vice presidents and I have put together a penultimate budget draft for one final campus review prior to action by our Board of Trustees. That proposal is available here. A long process, yes. But, as the budget narrative develops, one that ended with far better outcomes than those dire prospects with which we began. And, that did not just happen. Your engagement in the political process was critically important. And most effective. Again, thank you for your patience, for your engagement in the budget process, and for standing up for Western and the state funding essential to sustain our excellence. Best, Bruce Shepard President ATTACHMENT B APPROVED August 20, 2015 WESTERN WASHINGTON UNIVERSITY ITEM SUBMITTED TO THE BOARD OF TRUSTEES TO: Members of the Board of Trustees FROM: President Bruce Shepard by Vice President Richard Van Den Hul DATE: July 20, 2015 SUBJECT: 2015-2017 CAPITAL BUDGET PURPOSE: Action item Purpose of Submittal: Implementation of the 2015-2017 Capital Budget. Executive Summary: Western Washington University submitted a state capital budget request of $129,553,000 of which $123,259,000 was related to new appropriations and $6,294,000 to reappropriations. Western received $76,072,000 in new appropriations, $4,260,000 in reappropriations and $6,000,000 in alternative financing for a total budget of $86,332,000. Of the $76,072,000 in new appropriations, the State Building Construction Account (general obligation bonds) provides $62,172,000. $13,900,000 is generated as Local Funds through the University from the Normal School Fund (timber sales) and the portion of tuition and fees dedicated to construction. Alternative financing in the form of a Certificate of Participation (COP) was authorized for Carver Academic Renovation in the amount of $6,000,000. The attached chart compares Western’s 2015-2017 capital budget request, Governor Inslee’s proposed budget and the legislative proposed and final budget. Most of the funding received in the final Capital Budget is for the Carver Academic Renovation. The legislature reacted favorably to all of the pleas for sufficient funding to complete this project by awarding a total of $70,000,000 for the Carver project construction. Of the $70,000,000 awarded, $58,600,000 is State bond funding, $5,400,000 is from Western’s Local Building Fund and $6,000,000 is in the form of a COP. The Science Building Renovation and Addition Predesign was removed during the process. This is a critical item to get underway so we are ready to request design funds in the FY20172019 capital budget. We recommend this item be self-funded with one-time University funds. Proposed Motion: MOVED, that the Board of Trustees of Western Washington University, upon the recommendation of the President, accepts the 2015-2017 Capital Budget totaling $86,332,000 comprised of $76,072,000 in appropriations, $4,260,000 in reappropriations and $6,000,000 in alternative financing (COP) and approves the distribution by major categories in accordance with the attached chart. Further, MOVED that $500,000 be approved for Science Building Renovation and Addition Predesign. ATTACHMENT B APPROVED August 20, 2015 WESTERN WASHINGTON UNIVERSITY 2015-2017 CAPITAL REQUEST New Appropriations Comparison Sheet - Request, Governor, House, Senate, Final Capital Budget 7/1/15 WWU Request 19-Sep-14 PROJECT LISTING 1 MINOR WORKS - Preservation 14,955,000 2 MINOR WORKS - Program 12,904,000 3 CARVER ACADEMIC RENOVATION TOTAL State Funds Local Funds COP Gov. Inslee Budget 18-Dec-14 11,921,000 House Budget 27-Mar-15 Senate Budget 8-Apr-15 Final Budget 30-Jun-15 11,921,000 8,458,000 8,458,000 73,000,000 65,213,000 65,213,000 70,000,000 70,000,000 73,000,000 48,903,000 48,903,000 58,600,000 58,600,000 5,400,000 5,400,000 6,000,000 6,000,000 - 4 SCIENCE BUILDING RENOVATION & ADDITION* 8,800,000 5 IT NETWORK UPDATE 4,000,000 6 2015-17 CLASSROOM & LAB UPGRADES 4,900,000 7 CAMPUS WIRELESS UPGRADE 4,700,000 - - 16,310,000 16,310,000 500,000 500,000 4,400,000 4,400,000 3,614,000 3,614,000 3,614,000 3,614,000 See note below 8 9 10 11 12 Preventive Facility Maintenance & Repairs Sources of Funding: State Bonds Local Funds 110,359,000 12,900,000 56,438,000 12,900,000 56,438,000 12,900,000 62,172,000 13,900,000 62,172,000 13,900,000 Subtotal - Non COP Funds 123,259,000 69,338,000 69,338,000 76,072,000 76,072,000 16,310,000 16,310,000 6,000,000 6,000,000 85,648,000 85,648,000 82,072,000 82,072,000 Certificate of Participation(COP) BIENNIUM TOTAL - ALL FUNDS - 123,259,000 * Science Building Renovation & Addition request included $500,000 for predesign, $8,300,000 for design. Not financed in capital budget; University to self-finance.