The document is the agenda for a Florida International University Board of Trustees budget workshop meeting on June 1, 2009. The agenda includes discussions of the FY 2009-2010 operating budget assumptions including legislative updates, budget gaps, budget rolling reduction plans, the College of Medicine update, non-E&G funds budget, and construction plans. The documents provide details on the university's budget challenges from state funding cuts and gaps in funding, as well as plans to address the budget shortfalls through measures like tuition increases, cost reductions, and academic restructuring.

1. The Florida International University
Board of Trustees
Budget Workshop
Operating Budget FY 09-10
June 1, 2009
1

2. THE FLORIDA INTERNATIONAL UNIVERSITY
Board of Trustees
AGENDA
 E&G Budget Assumptions FY09-10 (Maidique/Martinez)
 Legislative Update
 Gap Analysis
 E&G Budget Rolling Reduction Plans (Wartzok/Miller)
 Budget Cut Methodology
 Rolling Three Year Budget Reduction Plans
 College of Medicine Update (Maidique)
 Non-E&G Funds Budget FY09-10 (Miller)
 Construction Plan (Maidique)
2

3. THE FLORIDA INTERNATIONAL UNIVERSITY
Board of Trustees
AGENDA
 E&G Budget Assumptions FY09-10 (Maidique/Martinez)
 Legislative Update
 Gap Analysis
 E&G Budget Rolling Reduction Plans (Wartzok/Miller)
 Budget Cut Methodology
 Rolling Three Year Budget Reduction Plans
 College of Medicine Update (Maidique)
 Non-E&G Funds Budget FY09-10 (Miller)
 Construction Plan (Maidique)
3

4. LEGISLATIVE BUDGET UPDATE
Funding Unfavorable
Enhancements Impacts
 Tuition increase of 8% for undergraduate  General Revenue net 15% reduction
 Undergraduate differential tuition up to 7%  $27.2M recurring reduction after offset
additional of $1.2M non recurring
 College of Medicine 100% funded  Lotto funds reduction of $2.5M - uncertainty
about future collections
 $10.9M additional recurring funds
 PECO funding reduced by $31.2M over last
 $0.9M one time Federal Stabilization funds
year
 Additional ONE TIME funding from Federal
 Courtelis Facility and Challenge Grants
Stabilization fund $14M
matching will not be funded
 Excluded from 2% state employee salary cut
RESULT : CONTINUE WITH BUDGET REDUCTION PLANS
4

5. RESTRICTIONS ON STABILIZATION FUNDS
Federal Guidelines
One Time Funds As Temporary Bridge
 Endowments
Prohibitions *  Maintenance of systems, equipment, or facilities
 Maintenance costs, new construction, modernization of athletic
facilities or religious facilities
 Restoring or supplementing a quot;rainy dayquot; fund
 Education and General expenditures
Possible
 Modernization, renovation, or repair of instructional, research, or
Uses
student housing facilities
Strategically directed to strengthen FIU going forward
on non recurring critical investments
Source: Guidance on the State Fiscal Stabilization Fund Program, U.S. Department of Education Washington, D.C. 20202, April 2009 (Page 26-30)
5
* The list of prohibitions is not meant to be all-inclusive; uses and prohibitions are also subject to ARRA (American Recovery and Reinvestment Act) and
other applicable requirements.

6. STABILIZATION FUNDS
Non Recurring Critical Investments
Research & Student & Green Efficiency
Compliance
Graduate Education University Support Initiatives
Example: Example: Example: Example:
 Research Start-up  Strengthen library  Modernize low efficiency  Strengthen Environmental
Funds resources & infrastructure buildings Health & Safety
6

7. MULTI-YEAR OPERATING GAP
(Cumulative amounts)
State Cuts are in addition to an $11.3M cut received in FY07-08, which resulted in units’ cuts of $8.1M
UNFUNDED UNIVERSITY
STATE CRITICAL UNITS' CUTS ADDITIONAL
TUITION OPERATIONS/ MITIGATION NET GAP
CUTS INVESTMENTS 08-09 plan CUTS
OBLIGATIONS ***
FY 08-09
($13.0) $6.1 ($12.0) ($11.0) $14.9 ($15.0) $15.0
FY 09-10*
**
($47.3) $18.5 ($20.6) ($17.4) $32.2 ($34.7) $23.2 $11.4
FY10-11
($51.7) $30.2 ($24.5) ($21.7) $19.0 ($48.7) $35.7 $13.0
FY11-12
($51.7) $43.9 ($26.5) ($29.8) $10.8 ($53.3) $35.7 $17.6
* FY 09-10 State Cut assumes current cut of $30.4M in GR and Lotto appropriations plus a contingency of $3.9M for possible future
reductions. Incremental funding received for new space ($1.5M)and insurance increases ($2.3M) that are directly allocated to the
units were excluded
** Assumes 8% tuition increase in undergrad, 10% increase in grad, 15% increase in law and 7.6% increase in undergraduate 7
differential tuition (net of 30% need-based Financial Aid allocation)
*** Includes carry forward funds and salary float

8. ENROLLMENT BUDGET ASSUMPTIONS
FY09-10
Continued focus on managing undergraduate enrollment while
increasing graduate enrollment
FTE FTE FTE
24,084 24,392 24,758 366, 1.5%
47, 8%
170, 5%
242, 2%
(93), -1%
8

9. E & G INCREMENTAL REVENUE
FY09-10
Net tuition revenue increase of $12.4M (volume and price)*
helps make critical investments to close the on-going Budget Gap
FTE FTE FTE FTE
24,637 24,084 24,392 24,758
$125.2M Law $1.0M
Grad $3.5M
Differential $2.6M
$112.7M Undergrad $5.3M
$107.1M $109.4M
$12.4M
*Includes the effects of enrollment growth. Revenue amounts are net of Financial Aid and waivers. Excludes College of Medicine Tuition. 9

10. CRITICAL INVESTMENTS
FY09-10
Despite financial crisis, FIU continues to invest in quality
$17.4M*
Teaching Research Employees
 Advisory services  Faculty hiring and start  Retain employees
up funds
 Faculty hiring  Attract talent
 Graduate Assistant
 Graduate Assistant
stipends
stipends
 Classroom renovations
 On-line infrastructure
 Improve quality  Strengthen national
 Maintain stability
 Increase graduation and research ranking
retention rates  Increase revenue
10
*Cumulative investment amount through FY09-10

11. THE FLORIDA INTERNATIONAL UNIVERSITY
Board of Trustees
AGENDA
 E&G Budget Assumptions FY09-10 (Maidique/Martinez)
 Legislative Update
 Gap Analysis
 E&G Budget Rolling Reduction Plans (Wartzok/Miller)
 Budget Cut Methodology
 Rolling Three Year Budget Reduction Plans
 College of Medicine Update (Maidique)
 Non-E&G Funds Budget FY09-10 (Miller)
 Construction Plan (Maidique)
11

12. BUDGET REDUCTION
Planning Methodology
 Multi-year state budget cuts expected
Three Year Rolling
 Continue making investments in critical strategic areas
Plans
 Stabilization funds directed towards one time critical investments
 Lessen immediate impact to students, faculty and staff through the
University use of one time funds
Mitigation  Shared savings from new & replacement positions
 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
 All units created their own three year plans for submission
12

13. MULTI-YEAR OPERATING GAP
(Cumulative amounts)
State Cuts are in addition to an $11.3M cut received in FY 07-08, which resulted in units’ cuts of $8.1M
UNFUNDED UNIVERSITY
CRITICAL UNITS' CUTS ADDITIONAL
STATE CUTS TUITION OPERATIONS/ MITIGATION NET GAP
INVESTMENTS 08-09 plan CUTS
OBLIGATIONS ***
FY 08-09
($13.0) $6.1 ($12.0) ($11.0) $14.9 ($15.0) $15.0
FY 09-10*
**
($47.3) $18.5 ($20.6) ($17.4) $32.2 ($34.7) $23.2 $11.4
FY10-11
($51.7) $30.2 ($24.5) ($21.7) $19.0 ($48.7) $35.7 $13.0
FY11-12
($51.7) $43.9 ($26.5) ($29.8) $10.8 ($53.3) $35.7 $17.6
* FY 09-10 State Cut assumes current cut of $30.4M in GR and Lotto appropriations plus a contingency of $3.9M for possible future
reductions. Incremental funding received for new space ($1.5M)and insurance increases ($2.3M) that are directly allocated to the
units were excluded
** Assumes 8% tuition increase in undergrad, 10% increase in grad, 15% increase in law and 7.6% increase in undergraduate 13
differential tuition (net of 30% need-based Financial Aid allocation)
*** Includes carry forward funds and salary float

14. UNIVERSTIY WIDE REDUCTION PLANS
FY08-09 Plan Summary
Initial 3 Year Plan
Reduces Budget by $35.7M
Academic Allocation to Operational Incremental
Restructure Appropriate Funding Efficiency Revenue
 Curriculum changes  Reconfirm E&G funds  Lower operational costs:  Expand Graduate
not used to cover (revise processes, redefine Tuition Plus
 Degree program expenses of other service model, renegotiate
closures based on funds such as vendor agreements, create  Expand Self
sustainability criteria Contracts & partnerships, leverage Supporting
Grants, Construction, purchasing) Programs
 Center & Institute and Auxiliaries.
closure and reductions  Consolidate operations:  Increase Private
based on approved increase internal shared Support for Museum
policy services Operations
 Reduce non-critical support
services
Saves $12.1M Saves $6.9M Saves $13.9M Generates $2.8M
14

15. ACADEMIC AFFAIRS GROUP STRUCTURE
FY09-10 Incremental Reduction Plan
Criteria Relative Importance / Definition
 Strategic to FIU 10 As defined in FIU strategic plan
 Return on Investment 7 Total of all funding divided by E&G support –
tuition, research, gifts, and auxiliaries
 Cost 5 College level analysis using Delaware study
benchmark
 Faculty Investment 3 Faculty cost plus startup dollars expectation
 PhD Production 2 Three year average PhDs awarded divided by
Tenure-Tenure track faculty
15

16. ACADEMIC AFFAIRS BUDGET REDUCTION PLAN
FY09-10 Incremental Reduction Plan
ADDITIONAL BUDGET
REDUCTION PLAN
Cumulative Percentages
09-10 10-11 11-12
Group 1 (overall score > 60) 3.3% 3.6% 5.0%
Arts & Sciences (64), Business (61), Engineering &
Computer Sciences (64), Public Health & Social Work (66)
Group 2 (overall score 40 – 59) 4.1% 4.6% 6.2%
Hospitality (54), Nursing & Health Sciences (54),
Education (49)
Group 3 (overall score < 39) 5.1% 5.6% 7.7%
Architecture & the Arts (38), Journalism (37), Law (38)
Group 4 (overall score not applicable) 5.3% 5.9% 8.0%
Library, Honors, Museums, Student Affairs and
all other Provost areas
16
Reductions for planning purposes, subject to change

17. ACADEMIC AFFAIRS CUT STRATEGIES
FY09-10 Incremental Reduction Plan
Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M
Shift to Other Funding/Revenue Lower Operational
Sources Costs
 Private support for museum Consolidate or reduce administrative functions – Eliminating
operations Continuing and Professional Studies; 4 Vice Provost positions
 Reallocate operating expenses to Consolidate six departments into three
grants, overhead and fees
Reduce library purchases, reduce travel, service hours in
 Reallocate operating expenses to enrollment services, convert print materials to library on line
auxiliary funds where appropriate access, computer replacements, marketing in select
programs, recruitment events, permanent and temporary staff
Change instructional mix of summer courses, decreased use
of adjuncts by increasing class size, and eliminate faculty
through vacancy/attrition
Impacts 66 Positions: Saves $9.3M
Saves $3.4M
Attrition 25, Vacancy 19, Elimination 22 17
17

18. ACADEMIC AFFAIRS CUT STRATEGIES
FY 09-10 Incremental Reduction Plan
Incremental Multifaceted 3 Year Plan to Reduce Budget by $13.7M
Degree Program
Closure
Education Arts & Sciences
Recreation &Sports Management ( B-62, M-19) Religious Studies (B-87,M-33)
English Ed MAT (M-6) Mathematical Sciences (B-24)
French Ed (B-0)
French Ed MAT (M-2)
Mathematics Ed MAT (M-4) Nursing & Health Sciences
Science Ed MAT (M-2) Athletic Training (M-25)
Social Studies Ed MAT (M-5) Occupational Therapy (B-0)
Spanish Ed (B-0) Physical Therapy (M-0)
Spanish Ed MAT (M-0)
*Adult Education (M-9)
*Adult Education & Human Resource Development (D-27)
*Higher Education Administration (M-82,D-53)
Bold text = Faculty Senate opposition to closure
*International Education (M-19) Normal text = agreement by the Faculty Senate with the proposal
*Urban Education (M-11) Italicized text = administrative agreement with Faculty Senate recommendations
Degree level: B – Bachelor ; M – Master; D - Doctorate
*Degrees will be subsumed under existing degree program
Impacts 20 positions: Saves $1M
Elimination 20 18

19. NON- ACADEMIC AFFAIRS OPERATIONS
FY09-10 Incremental Reduction Plan
Budget of $83M, or 24% of Total E&G Budget
Implications:
 Utilities account for 17% of total
budget
 Another 18% is contractually
committed or infrastructure specific
and cannot be immediately
reduced
 Therefore, significant savings must
be absorbed from Personnel, OPS
and Other Expenses and Other
Support Areas
19
*Other Support Areas include Advancement, External Relations, Govt. Relations, Presidents Office and General Counsel

20. NON-ACADEMIC AFFAIRS OPERATIONS*
FY09-10 Incremental Reduction Plan
Group 1: Compliance and University-Wide Strategic Projects
Prioritization Examples: Equal Opportunity Program, IT Security, BioChemical Receiving
Group 2: Essential Services where service will be reduced or contractual
commitments renegotiated
Examples: IT Support Center, Media Technology Services, PeopleSoft
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
Example: Groundskeeping
Incremental  Planned cuts range from 1% to 7% by FY 2011-12
Planned Cuts  Group 4 cuts could exceed 35%
 $3.9M in additional cuts
 55 Positions: 7 Attrition, 21 Vacancy, 19 Eliminated** and 8 Reassigned
*Includes Finance & Administration, Advancement, Community Relations, General Counsel, Government Relations,
BOT Office, President’s Office 20
** Includes 2 replacement positions in HR

21. PERSONNEL IMPACT
E&G Reduction Plans Through 2012
FY08-09 FY09-10 FY10-11 FY11-12
Attrition 27 65 80 84
Vacancy 26 87 134 157
Elimination 43 52 65 76
Shift to Non-E&G
29 94 99 100
Funding Sources
Total Position
125 298 378 417
Reduction
Faculty 36 91 123 140
Non-Faculty 89 207 255 277
Total Position
125 298 378 417
Reduction
21
Cumulative FTE

22. THE FLORIDA INTERNATIONAL UNIVERSITY
Board of Trustees
AGENDA
 E&G Budget Assumptions FY09-10 (Maidique/Martinez)
 Legislative Update
 Gap Analysis
 E&G Budget Rolling Reduction Plans (Wartzok/Miller)
 Budget Cut Methodology
 Rolling Three Year Budget Reduction Plans
 College of Medicine Update (Maidique)
 Non-E&G Funds Budget FY09-10 (Miller)
 Construction Plan (Maidique)
22

23. .
COLLEGE OF MEDICINE
FY09-10 Update
 130 faculty on board, 14 of 15 chairs identified
Faculty &  1st and 2nd year curriculum completed
Students  43 students accepted from 3,332 applicants
 Students begin orientation August 3, 2009
 Provisional accreditation obtained in record time
 Agreements in place with:
 Jackson Public Health Trust
Affiliations  Leon Medical Centers
 Mercy Hospital
 Miami Children’s Hospital
 Mount Sinai Medical Center
 State funds increase of 100% to $22M
State Funds/  Over $53M in donations to date; $14M expected in FY09-10
Gifts/Grants  $10M gift from Benjamin Leon Jr. and Family
 $10M gift from Miami-Dade County for an ambulatory facility
 $2.4M in new and transferred grant awards
 $2.7M in Stimulus related applications as of April 2009
Faculty Practice  Starting Faculty/Staff clinic on University Park
campus
Plan
23

24. THE FLORIDA INTERNATIONAL UNIVERSITY
Board of Trustees
AGENDA
 E&G Budget Assumptions FY09-10 (Maidique/Martinez)
 Legislative Update
 Gap Analysis
 E&G Budget Rolling Reduction Plans (Wartzok/Miller)
 Budget Cut Methodology
 Rolling Three Year Budget Reduction Plans
 College of Medicine Update (Maidique)
 Non-E&G Funds Budget FY09-10 (Miller)
 Construction Plan (Maidique)
24

25. FIU UNIVERSITY BUDGET
FY09-10 Expenditures
OPERATING BUDGET
$685M*
Activity &
Service, $12M,
E&G State Funds, 2% Athletics, $19M,
$219M, 31% 3%
Technology Fee,
$6M, 1%
Scholarships,
$88M, 12%
Sponsored
Research, $89M,
13%
Auxiliary
Enterprises,
$107M, 15%
DSO's, $13M, 2%
Fiscal Stabilization
E&G Tuition, Funds, $15M, 2%
$126M, 18%
* Net of interfund adjustments, includes College of Medicine
25

26. ACTIVITY & SERVICE
FY09-10 Budget
Recommended fee increase of $1.08/credit hour
brings total fee to $11.60/credit hour
 Fee is charged equally to all levels of students
Allocation to fund student life
 70% supports student programs and
infrastructure like Graham and Wolfe Centers
 30% supports student activities and groups
 Renovations in Graham Center and Wolfe
Incremental Fee University Center and UP Recreation Center
Uses  Additional operations for BBC Pool
 Increase allocations of funds for student
groups and affinity programs
26

27. ATHLETICS ENTERPRISE
FY09-10 Budget
 Net loss of $1.6M in FY08-09 covered by
Athletics reserve balance
Operation
 Net loss expected to be at the same level in
FY09-10 using majority of the reserve balance
 Construction nearing completion
Field House
 Academic use approved by BOG allowing for
matching of donor gift
 Bridge financing still pending
 Risk of breach on debt covenant if revenue
Athletics Finance generation from special event sales, stadium
Corp naming rights and sponsorships do not
materialize
 Major League Soccer contract will not materialize
adding additional pressure on other revenue
sources
27

28. FINANCIAL AID SCHOLARSHIPS
FY09-10 Budget
 Need-based Scholarships projected to increase $8.0M
Need Based Activity
 Pell grant maximum award increased by $619 per student
to $5,350
 Differential Tuition allocation of 30% to Need Based Aid
 Non Need-based Scholarships projected to increase $5.3M
Non-Need
Based Activity  An increase in the number of students receiving Bright
Futures
 Additional funds allocated toward Athletic Scholarships
28

29. SPONSORED RESEARCH
FY09-10 Budget
 Revenues to increase by $4.1M to $90M ($110M)*
Operations  Increase in number of awards received in FY08-09
 Impact of Federal stimulus awards which are
required to be spent within 18 months of receipt
 Higher indirect cost rate
 Growing from 42% to 44%
 Effective rate will increase by 2% to 20%,
targeting industry benchmark of 50% of the federal
rate
 Grants Module implementation to be completed
Investments July 2009
29
* National Science Foundation survey of research and development expenditures is projected at $110M

30. AUXILIARY ENTERPRISES
FY09-10 Budget
Revenues remain relatively flat in FY09-10 while
expenses increase to absorb investments and
properly align costs
 Investments
130  Expansion of Parking garages -
$2M
 Replacement of obsolete network
120
infrastructure - $2M
$11 M  Housing capital improvements
110
In $ Millions
$0.7M
100 Increasing cost of operations (filling
$118 $120 vacant positions and Utilities costs) - $2M
$116
90 $111
$107 $105
$100 Realignment of E&G expenses - $3M
80 $87
70
Actuals 06-07 Actuals 07-08 Forecast 08-09 Budget 09-10
Revenue Expenses
Note: Expenses include debt service 30

31. TREASURY OPERATIONS
FY09-10 Budget
FIU Portfolio - April 2009
Portfolio Since
Fixed
Cash & Short Performance FY Inception
Income, $61.
Term
8 M, 30%
Securities, $1
04.1 M, 50% FY 05-06 3.3% 3.3%
FY 06-07 7.3% 6.3%
FY 07-08 2.3% 4.5%
FY 08-09
Equity, $18.6 (4.2%) 1.8%
(thru 4/30)
M, 9%
Alternatives, FY 09-10
$23.1 4.0% ---
(Budget)
M, 11%
31

32. FIU FOUNDATION
FY09-10 BUDGET
Highlights:
Scholarships &
Programs Non-
Endowed and Non-endowment
Building Funds Scholarship & Program revenues are
Endowed $4M
$0.2M (1%)
(15%) forecasted to be $8M for new gift
agreements and expected pledge
payments. Reduction due to delay of
Endowments State Match for Courtelis program
$4M (15%) expected in future years.
Pledged Investment returns based on 5% return
Admnistrative Revenue $11M
Fee
on $95M
(41%)
$1M (1%)
Pledged revenues totaling $11M
Annual Fund included committed contracts of $18M
$0.4M (1%)
net of 25% allowance and $7M in
Investment anticipated payments.
Returns $5M MARC Building
(15%) Rental Income
$1M (5%)
32

33. THE FLORIDA INTERNATIONAL UNIVERSITY
Board of Trustees
AGENDA
 E&G Budget Assumptions FY09-10 (Maidique/Martinez)
 Legislative Update
 Gap Analysis
 E&G Budget Rolling Reduction Plans (Wartzok/Miller)
 Budget Cut Methodology
 Rolling Three Year Budget Reduction Plans
 College of Medicine Update (Maidique)
 Non-E&G Funds Budget FY09-10 (Miller)
 Construction Plan (Maidique)
33

34. FIU UNIVERSITY BUDGET
FY09-10 Construction Plan
Construction Funds
$249M
 Major construction projects in progress:
 Nursing & Allied Health (Molecular
Biology)
 Satellite Chiller Plant
 Social Science Building (International
Studies)
 Parking Garage V / Public Safety
Building
 Science Classroom Complex
 Graduate Classroom/Research Building
 International Hurricane Research Center
 Field House
Total University Budget $934M
34

35. UNFUNDED MATCH TO DATE
Facilities $1.2
Endowment $9.0
New Funds (FY 08-09) $4.9
TOTAL $15.1
AMOUNT IN MILLIONS
35

36. THE FLORIDA INTERNATIONAL UNIVERSITY
Board of Trustees
AGENDA
 E&G Budget Assumptions FY09-10 (Maidique/Martinez)
 Legislative Update
 Gap Analysis
 E&G Budget Rolling Reduction Plans (Wartzok/Miller)
 Budget Cut Methodology
 Rolling Three Year Budget Reduction Plans
 College of Medicine Update (Maidique)
 Non-E&G Funds Budget FY09-10 (Miller)
 Construction Plan (Maidique)
36