1. The Florida International University
Board of Trustees Meeting
March 31, 2009
1

2. FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
 Direction
What is the University’s strategic direction?

What are the state revenue assumptions?

 Funding Needs
What is the methodology for determining FIU’s budget gap?

 Three Year Budget Plan
What steps are being taken to meet the funding shortfall?

What is the timeline?

 Questions & Answers
2

3. UNIVERSITY STRATEGIC EVOLUTION
FIU 1.0 FIU 2.0 FIU 3.0
Founding Paradigm Existing Paradigm New Paradigm
• Comprehensive urban research
• Two year upper division college • Comprehensive urban research
university university with sharp strategic focus:
Health, International, Environment
• Few Masters programs
• 30 Doctorates, Architecture, Law, • Stronger, integrated, interdisciplinary
Engineering, Public Health, undergraduate core
Medicine
• Managed enrollment
• Rapid enrollment growth
• Publicly funded • State of the art managerial systems
• Publicly funded and infrastructure
• Reduced public funding with
increased accountability
• Requiring greater sponsored
research, public/private partnerships
and revenue generating operations
3

4. LEGISLATIVE UPDATE
STATE GENERAL REVENUE
MAR. 08
28
AUG. 08
26
$ Billions
NOV. 08
24
-$3.6 Billion
-15%
22
-$6.3 Billion
-24% MAR. 09
20
18
2006-07 2007-08 2008-09 2009-10 2010-11
4

5. LEGISLATIVE UPDATE
FIU State Funds Reduction
-
0
(10)
Deficit = $27M
(20)
(30)
Millions $
Differential Tuition $10M
(40)
(50) Tuition Revenue Increase $24M
State Funds Reduction (Other Tuition Increases + Managed
(60) Enrollment Growth)
$61M
(70)
06-07 07-08 08-09 09-10 10-11 11-12
Actual Estimate
Actual Projected 3 Year Plan
5
State funds include GR & Lotto, Tuition & Differential increases are net waivers and need based financial aid.

6. FIU UNIVERSITY BUDGET
FIU Operating Distribution Construction Distribution
6

7. FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
 Direction
What is the University’s strategic direction?

What are the state revenue assumptions?

 Funding Needs
What is the methodology for determining FIU’s budget gap?

 Three Year Budget Plan
What steps are being taken to meet the funding shortfall?

What is the timeline?

 Questions & Answers
7

8. PLANNING METHODOLOGY
 Multi-year state budget cuts expected
Three Year Rolling  Continue making investments in critical strategic areas
Plans
 All units creating their own three year plans for submission
 Lessen immediate impact to students, faculty and staff through the use
of one time funds
First Buffer:
University Mitigation  Shared savings from new & replacement position
 Savings and revenues from new university-wide ideas
 Reduction amounts allocated proportionately to executive areas
Units’ Reductions
 Reductions distributed to each unit based on strategic prioritization
8

9. GAP ANALYSIS UPDATE
Rolling Three Year Plan
(Cumulative amounts)
9
Note: As of March 9, 2009

10. FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
 Direction
What are the potential budget cuts?

What is the University’s strategic direction?

 Funding Needs
 What is the methodology for determining FIU’s budget gap?
 Three Year Budget Plan
What steps are being taken to meet the funding shortfall?

What is the timeline?

 Questions & Answers
10

11. UNIVERSITY STRATEGIC IMPERATIVES
Survive: Create a plan that allows FIU to sustain the least injury to
critical operations and strategic areas
Top 15 Public Urban Research University

- Sustaining and strategically enhancing research
- PhD production
Undergraduate Retention and Graduation

- Academic advising
- Classroom renovations and expand technology infrastructure
- Enhanced student services
Health & Life Sciences

- Public Health partnership
- Medical School
- Rationalize laboratory space and equipment
Student Life and Alumni Affinity

- Housing & undergraduate activities
- Athletics and recreation fields
Advancement & Human Resource Development

- Leadership and professional development
- Capital campaign
11

12. CRITICAL INVESTMENTS
STRATEGIC INVESTMENTS = $15.5M in FY09-10
Instruction Research Faculty & Staff
 Increase graduation and  Strengthen national  ATB and merit increases
retention rates research ranking
 Faculty retention
 Hire additional  Increase revenue
 Attract new talent
instructional faculty
 Increase Graduate Student
 Improve advisor to Stipends
student ratio
12
Note: Investments in Advancement infrastructure are also being provided by the FIU Foundation strategic investment pool

13. ACADEMIC AFFAIRS GROUP STRUCTURE
Criteria Relative Importance / Definition
10 As defined in FIU strategic plan
 Strategic to FIU
7 Total of all funding divided by E&G support –
 Return on Investment
tuition, research, gifts, and auxiliaries
5 College level analysis relative to the Delaware
 Cost
study benchmark
3 Faculty cost plus startup dollars expectation
 Faculty Investment
2 Three year average PhDs awarded divided by
 PhD Production
Tenure-Tenure track faculty
13

14. ACADEMIC AFFAIRS BUDGET REDUCTION PLAN
ADDITIONAL BUDGET
REDUCTION PLAN
09/10 10/11 11/12
Group 1 3.3% 3.6% 5.0%
(overall score > 60)
Arts & Sciences, Business, Engineering,
Public Health
Group 2 4.1% 4.6% 6.2%
(overall score 40 – 59)
Hospitality, Nursing, Education
Group 3 5.1% 5.6% 7.7%
(overall score < 39)
Architecture & the Arts, Journalism, Law
Group 4 5.3% 5.9% 8.0%
(overall score not applicable)
Library, Honors, Museums, Student Affairs and
all other Provost areas
??? ??? ???
Medicine
Separate Legislative Appropriation
14
Reductions for planning purposes, subject to change

15. FINANCE & OPERATIONS
BUDGET REDUCTION METHODOLOGY
Group 1: Compliance and University-Wide Strategic Projects
Examples: EOP, IT Security, BioChemical Receiving
Prioritization
Group 2: Essential Services where service will be reduced or contractual
commitments renegotiated
Examples: Media Technology Services, Disaster Recovery
Group 3: Areas where efficiencies gained from a change in current
business processes or in customer service delivery method
Examples: Purchasing Services, Student Payment Services (Online)
Group 4: Less Essential Services where current levels cannot be afforded
Examples: Groundskeeping
 Planned cuts range from 2% to 7% by FY 2011-12
Planned Cuts*  Group 4 cuts could exceed 35%
 $2.7 million additional cuts above the original $8 million
15
*Planned Cuts are incremental to 2008-09 plan
*VP Offices are taking the base cut of 4.1%,4.6% and 6.2%

16. TIMELINE
February 17 Faculty Senate – Budget Presentation & Discussion

February 25 Budget Stabilization Task Force (bi-weekly meetings)

February 26 Student Forum – Budget Presentation & Discussion

March 4 USPS Senate Meeting – Budget Presentation & Discussion

March 9 Town Hall Meeting 1st

April 10 Units Submit Plans

April 27 Faculty Senate receives Recommendations

May 1 Legislative Session Ends

May 4 Town Hall Meeting 2nd

May 5 Budget Stabilization Committee receives Recommendations

May 26 Faculty Senate Recommendations due

June 1 Board of Trustees Budget Workshop

June 12 Governor’s Veto period expected to expire

June 12 Board of Trustees Meeting

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Please send all comments, questions and ideas to President Maidique at presmail@fiu.edu

17. THE FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
 Direction
What are the potential budget cuts?

What is the University’s strategic direction?

 Funding Needs
 What is the methodology for determining FIU’s budget gap?
 Three Year Budget Plan
What steps are being taken to meet the funding shortfall?

What is the timeline?

 Questions & Answers
17

18. The Florida International University
Board of Trustees Meeting
March 31, 2009
18