The main drivers in this fund are student enrollment, wage-and-benefit increases, and maintaining reasonable student-centered services and instructor-to-student ratios. Enrollment targets were the product of the SEM plan. The most significant risk to this forecast is hitting these enrollment targets, as well as the lack of predictability of the state allotment, which is subject to the legislative process.
State and Tuition Fund Forecast
State/Tuition Fund Six Year Forecast - Enrollment Plus 150 (in thousands) Expenses +150 Expense for Growth
160,000
Revenues SEM Plan
Revenue +150
150,000
140,000
130,000
120,000
110,000
FY19
FY20
FY21
FY22
FY23
FY24
FY25
The purple bars represent the expenses that will be incurred if nothing significant happens at the university over the next six year—no significant changes in operations, good or bad. The red line represents the revenue generated by adding 150 new students each year until FY25. This is effectively a “break-even” scenario. If the SEM plan enrollment is achieved, that is represented by the blue line, and the additional staffing that would be required to maintain current student ratios is the green “expense for growth” addition to the expense bars. Clearly, the SEM plan forecast for this fund provides sufficient revenue to sustain the next six years, however hitting the targets set by the SEM plan will be no easy feat.
However, we may run into capacity restraints, at least on the Ellensburg campus beyond FY 2025, which would require costly infrastructure development, for both residential and instructional
28 | P a g e
Made with FlippingBook - Online magazine maker