support. We have shown trustees balanced versions of budgets—but never truly explored the real cost of operating Central Washington University and fully serving 11,000 students. Trustees and staff participated in a thorough examination of the costs, risks, and challenges of aspiring to be the best version of who we are. They began with an “aspirational planning discussion” that considered the future of CWU at five levels. Level 1 - Sustain current operations. What investment is required to maintain our current level of service? This level assumes cost of living adjustments, inflation, equipment replacement, and increases in reserves to offset state decreases. We are currently doing Level-1 planning when Joel extends the current budget into the future using an inflationary number. This is an improvement over the past, but lacks inspiration and innovation. It is simply quantifying the status quo. Level 2 - Fully fund current operations. Current operations are underfunded with open employee positions and thin goods and services budgets. In addition to Level 1 funding, Level 2 provides appropriate staffing and enhances equipment levels, among other new investments. Level 3 - Extend or enhance current operations . Level 3 funds Levels 1 and 2, and includes new programs, e.g. for advising, contract advertising, student apartments. Most major enhancements will require contracts, additional staffing, and equipment replacement. Level 4 - New operations. This level funds the previous three and provides significant new programs that would exist with the current mission and Strategic Plan. Examples include a new academic program or staff and faculty housing. Level 5 - Mission expansion. Level 5 represents the most ambitious aspirations, such as the construction of a convocation center or the addition of doctoral programs. Shifting our mission to achieve official federal designation as an Hispanic Serving Institution is another example of a Level 5 shift that would require significant culture change and financial investment.
Meeting adjourned for lunch at 12:00 PM.
During lunch, CWU Geologist Nick Zentner, joined the group and presented information about the amazing geological history of this area.
Business meeting resumed at 1:30 PM
President Gaudino continued his presentation on aspirational planning and explained that retention improvements are needed, and a strategic enrollment plan is required. We have opportunities for growth of transfers and graduate students in Ellensburg, at University Centers, and online. In FY18 we will move to a true-cost budget, supported by Responsibility Center Management (RCM) and Activity Based Budgeting (ABB). Vice President Klucking then gave a quick financial update on FY18, which will include a slight tuition increase this fall and assumes a resident undergraduate tuition increase in FY 19. He reported that FY18 operating revenue is on target to grow 6.5 percent. He added that due to the unknown state capital budget, the forecast for non-operating funds for FY17-18 are a bit skewed.
3 Board of Trustees Minutes Annual Board Planning Retreat, July 19-21, 2017
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