The document summarizes Florida International University's 2009 budget town hall discussion. It provides an update on state legislative budget cuts, outlines proposed budget reduction plans for academic and non-academic areas, and discusses strategies for addressing a cumulative budget gap over three years, including program closures and staff reductions. The discussion focuses on using one-time federal stabilization funds strategically and implementing incremental multi-year budget cuts across the university.

1. The Florida International University
Budget Town Hall Discussion
May 18, 2009
1

2. THE FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
 Update from Last Town Hall Meeting
 Legislative Budget Update
 Federal Stabilization Fund
 E&G Budget Reduction Proposed Plans
 Proposed Plans Academic Affairs
 Proposed Plans Non-Academic Affairs Operations
 Strategic Evolution of the University
 Devolution
 Compliance
 Next Steps: Timeline
2

3. LEGISLATIVE BUDGET UPDATE
Positive Unfavorable
Outcomes Impacts
 Tuition increase of 8% for undergraduate  Net 15% General Revenue reduction
 Undergraduate differential tuition up to 7%  $29M recurring reduction
additional
 Offset by $1.2M non recurring
 College of Medicine 100% funded
 Lotto funds reduction of $2.5M - uncertainty
 $10.9M additional recurring funds about future collections
 $.9M one time Federal Stabilization funds  PECO funding reduced by $31.2M over last
year
 Additional ONE TIME funding from Federal
Stabilization fund $14M  No funding for Courtelis Facility and
Challenge Grants
 Excluded from 2% state employee salary cut
RESULT : CONTINUE WITH BUDGET REDUCTION PLANS
3

4. RESTRICTIONS ON EDUCATION STABILIZATION FUNDS
Federal Guidelines
One Time Funds As Temporary Bridge
Possible  Education and General expenditures
Uses  Modernization, renovation, or repair of instructional, research, or
student housing facilities
 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
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)
4
* 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.

5. EDUCATION STABILIZATION FUNDS
5

6. EDUCATION STABILIZATION FUNDS
6

7. EDUCATION STABILIZATION FUNDS
7

8. THE FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
 Update from Last Town Hall Meeting
 Legislative Budget Update
 Federal Stabilization Fund
 E&G Budget Reduction Proposed Plans
 Proposed Plans Academic Affairs
 Proposed Plans Non-Academic Affairs Operations
 Strategic Evolution of the University
 Devolution
 Compliance
 Next Steps: Timeline
8

9. THREE YEAR ROLLING PLAN
Operating Gap
Cumulative Amounts
UNITS' CUTS ADDITIONAL
NET GAP
08‐09 plan CUTS
08‐09 ($15.0) $15.0 Done
09‐10 ($34.6) $23.2 $11.4
10‐11 ($48.7) $35.7 $13.0
11‐12 ($53.3) $35.7 $17.6
9

10. ACADEMIC AFFAIRS GROUP STRUCTURE
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

11. ACADEMIC AFFAIRS BUDGET 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
Reductions for planning purposes, subject to change

12. ACADEMIC AFFAIRS CUT STRATEGIES
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
enrollment services, convert print materials to library on line
access, computer replacements, marketing in select programs,
recruitment events, permanent and temporary staff
• Change instructional mix of summer courses, decreased use
of adjuncts due to enrollment strategy, increase class size,
eliminate faculty through vacancy, attrition
Impacts 66 Positions: Saves $9.3M
Saves $3.4M Attrition 25, Vacancy 19, Elimination 22 12

13. ACADEMIC AFFAIRS CUT STRATEGIES
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)
*International Education (M-19)
Degree level: B – Bachelor ; M – Master; D - Doctorate
*Urban Education (M-11)
*Degrees will be subsumed under existing degree program
Impacts 20 positions: Saves $1M
13
Elimination 20

14. NON-ACADEMIC AFFAIRS OPERATIONS*
BUDGET REDUCTION METHODOLOGY
Group 1: Compliance and University-Wide Strategic Projects
Examples: Equal Opportunity Program, IT Security, BioChemical Receiving
Prioritization
Group 2: Essential Services where service will be reduced or contractual
commitments renegotiated
Examples: Media Technology Services, Disaster Recovery, 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
 Planned cuts range from 1% to 7% by FY 2011-12
Incremental
Planned Cuts  Group 4 cuts could exceed 35%
 $3.7M in additional cuts
 58 Positions: 7 Attrition, 22 Vacant, 29 Eliminated or Reassigned
14
*Includes Finance & Administration, Advancement, Community Relations, General Counsel, Government Relations, BOT Office, President’s Office

15. THE FLORIDA INTERNATIONAL UNIVERSITY
AGENDA
 Update from Last Town Hall Meeting
 Legislative Budget Update
 Federal Stabilization Fund
 E&G Budget Reduction Proposed Plans
 Proposed Plans Academic Affairs
 Proposed Plans Non-Academic Affairs Operations
 Strategic Evolution of the University
 Devolution
 Compliance
 Next Steps: Timeline
15

16. HIDDEN BUDGET CUTS
Flexibility gained from devolution and strategic research mission
requires annual critical investments of $18.2M and 144 FTE
“Be careful what you ask – you may just get it”
Devolution Compliance
 Process  Permeates the culture of the institution
 2001 Statute* abolishes Board of Regents and through evolving research compliance,
authorizes Board of Trustees federal regulatory requirements and SACs
 Transitioned information systems and treasury accreditation, NCAA
operations
 Research
HIPAA, grant administration, controlled
 Incremental Functions
substances, human subjects
 Board of Trustee Office and Support
 Student/Employee
 Information Systems – Financials and Payroll International, confidential information,
 Treasury Operations bargaining, IT security, emergency
management, athletics
 SACS
Credentialing, assessments, QEP
 Unfunded Costs (estimated)  Unfunded Costs (estimated)
 Recurring costs of $5.7M annually  Recurring costs of $12.5M annually
 Incremental 25 FTE  Incremental 119 FTE
16
*2001 Statutes :229.002(1)(f), 229.003(5)(a), 229.008 (1-9). 2002 Statutes: 1011.40(2), 1011.4105 (1-5)

17. PERSONNEL GROWTH
 Analysis of personnel growth from 2002 to 2008
 E&G Faculty increased 85 positions
 E&G Administrative personnel grew 88 positions
 Non E&G positions grew by 105, funded from self sustaining
operations (C&G, Auxiliary, and Student Fees)
17

18. TIMELINE
May 26 Faculty Senate Meeting
Recommendations on program closures
June 1 Board of Trustees Budget Workshop
June 8 Governor’s Veto period expires (approximately)*
June 12 Board of Trustees Meeting
Please send all comments, questions and ideas to President Maidique at presmail@fiu.edu
* Governor must sign or veto legislation within 15 days of receiving the bill. As of May 13, 2008 the governor had not received the appropriations bill. 18

19. The Florida International University
Budget Town Hall Discussion
May 18, 2009
19