2011–2012 Financial Plan - Cornell University Division of Budget ...

Operating Plan - HighlightsOperating Plan — Highlights4COMPOSITE OPERATING PLANCornell’s composite operating plan for 2011-12 isbased on the plans of its two main divisions: theIthaca campus and the Weill Medical College (withcampuses in New York City and Doha, Qatar). Theschedule on the facing page shows the overall universityplan, with summary and detail plans foreach campus immediately following.ResourcesRevenues are projected at $3.24 billion, an increaseof 3.1 percent from the 2010-11 forecast.• Tuition and fee revenues are planned to increase 4.9percent, based on approved tuition rate increases andoverall enrollment growth.• The net increase in investment distributions isexpected to be 1.1 percent, primarily due to new giftsto endowment.• The combination of unrestricted and restricted giftsfor general operations is expected to increase fromthe 2010-11 forecast, with the Ithaca Campus planningincreases in the campaign and faculty initiatives offsetby a decline at Weill.• Direct costs of grants and contracts for sponsoredprograms are expected to decrease 4.6 percent,while recoveries of facilities and administrative costsrelated to those programs are projected to increase2.1 percent. Qatar sponsored revenues is planned toincrease by 20.4 percent. Sponsored direct and facilitiesand administrative recovery is planned in total at$626.1 million.• State appropriations are planned at $132.7 million,including a $12.6 million base reduction from the2010-11 forecast, as well as additional reductions inspecial program funding. This projection is consideredto be final based on projections provided by the StateUniversity of New York (SUNY) and the New York StateExecutive Budget (See Appendix H for additional detailson state appropriations).• Revenues from the Physician Organization areprojected to increase $50.5 million over the 2010-11forecast due to expansion of current programs andmore recently implemented practices.• Enterprise sales and services are projected toincrease 3.9 percent, reflecting rate increases forstudent housing and dining services.Uses of ResourcesExpenditures are planned at $3.24 billion, an increaseof 4.7 percent from the forecast for 2010-11.• Salaries, wages, and benefits are projected toincrease $65.9 million or 3.9 percent, due to compensationincreases and the introduction of the facultyrenewal program.• Undergraduate financial aid is expected to increaseby $19.5 million or 9.5 percent over the 2010-11forecast. The annual growth rate since 2004-05 to2010-11 has been 13.1 percent.• Graduate and professional financial aid remainsnearly flat, projected to increase by $2.2 million or1.4 percent over the 2010-11 forecast.• General expenses are projected to increase $22.5million or 2.9 percent over the forecast for 2010-11due to increases in contractual, facilities, and one-timeexpenditures, and continued use of fund balancereserves to bridge activities.• Qatar expenses in support of the academic programand research are expected to increase $25.5 milliondue to academic programs in Qatar and the BiomedicalResearch agreement.• Other expenses, including capitalized equipment andbooks, are projected to decrease $1.1 million or 2.1percent.• Internal debt repayment is projected to decreaseby 5.0 percent, or $5 million.Transfers To/From Fund BalancesNet transfers to non-operating funds are plannedto total $2.2 million, with $6.9 million transferred infrom funds functioning as endowment to supportoperations, $68.8 million transferred to plant fundsto support non-debt financed capital project expendituresand equipment renewal and replacement,and $64.1 million transferred in from unit reservesto support one-time expenditures.