scenarios: increasing, flat, and declining numbers and to include overall enrollment and the associated budgetary impact of each scenario, as well as a plan for responding to each. The staff shared progress on the project with a preliminary view of what the budget impact would be under each scenario. They will finalize that enrollment projection model and engage the entire university to develop plans for each scenario. The committee also received routine updates on capital planning, information security, internal audit, as well as an update on the progress of the State Auditor’s financial statement audit for fiscal year 2025. o Budget Presentation (Joel Klucking) VP Klucking gave a summary of the current year, year to date revenue for State and Local Funds. These funds are about two thirds of the university that is mostly the core operations of the university. We are looking pretty good this year for revenues. On the expense side, we are looking favorable to even the prior year, which is because we have spent less this year than we did the prior two years. We have made good progress on cost containment. In the system funds, housing and dining make up 70 percent of all activity. Revenue is behind last year due to fewer students participating in housing and dining, and this year, we flattened our billing to spread across three quarters. We used to charge more in the fall, the average in winter, and then less in spring. Spreading the cost for students across all three quarters is taking down barriers to student success. Generally speaking, expenses in the system funds are coming in relative to the level of revenue. In the first six months, expenses are looking great, but we have some concern about the full year forecast because we started with fewer students and the new flat billing system. VP Klucking shared a preliminary look at the three five-year scenarios that were created at the request of the finance and audit committee of the board and explained that we are moving into the planning phase; what would we do and how will we plan under each of these scenarios. He added that they are starting to track expanded revenue streams and the top five include: 1. College in the High School 2. Facility Rentals VP Klucking then gave an overview of CWU’s debt portfolio and explained that we have pledged our revenues for 30 years of our bonds. We have a foundational document, the 2004 Master Resolution, that provides the authority from the Board of Trustees to be able to issue revenue bonds out to the marketplace. Every time we go out to the market to sell bonds, we must do an official statement for that series of bonds. Then we get a credit rating and work with bond counsel. Historically, we have been doing this since the first residential buildings were built on campus. Within the next 10 years, we are going to see a significant drop off in our total debt portfolio. Trustee Nellams reported that our actual enrollment came in at 7830, which was higher than our target of 7812. The recruitment target for First Time in College is 1740, and the recruitment target for transfers is 910. Student Engagement and Success continues to focus on student development and belonging through coordinated programming. In addition, other key efforts include the expansion of the Multicultural Center and securing program approvals critical for military-connected students. The Multicultural Center has delivered 31 programs, serving almost 2300 students. The Veterans and Military Connected Student Center secured Washington Student Achievement Council approval of CWU 3. Land Sale/Partnerships 4. Electricity Generation 5. Deep Well Geothermal • Student Engagement and Success Committee o Committee Report (Robert Nellams)
12 Board of Trustees Minutes February 19-20, 2026
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