Looking to the Future

Transcription

1 University of Colorado Looking to the Future Our Economic Future How We Excel Where We Are Headed Todd Saliman Vice President & Chief Financial Officer, CU System Jeff Parker Vice Chancellor Administration and Finance, CU Denver I Anschutz Medical Campus

2 Did you know? More than 57,500 students enrolled in degree programs at CU, fall CU contributed $5.3 billion to Colorado s economy in Superlative record of five Nobel Laureates and eight MacArthur Genius Fellows. CU is Colorado s third-largest employer. Technology from CU research labs started 11 new companies last year. CU is an important contributor to key industry sectors, including health care, aerospace, renewable and sustainable energy, and biotechnology. Spent $246 million on construction projects (some are multi-year projects), helping sustain an industry particularly hard hit by the recession. 2

3 CU Anschutz Medical Campus Economic Impact Anschutz Medical Campus AMC and Affiliated Hospitals Total Economic Impact on Colorado* (AMC, Hospitals, Indirect) FY 2012 Jobs Faculty, staff, student employees FY 2012 Payroll Wages, salaries, benefits 7,136 16,033 $830M $1.4B 32,400 to 35,700 jobs supported $1.93B to $2.1B in personal income FY 2012 Expenses Payroll and operating $1.2B $2.6B $3.8B to $4.6B income and spending Construction Complete or underway $1.1 billion 3.1 million square feet $3.8 billion 8.4 million square feet Original construction resulted in 33,000 man years of work. Projects recently completed or underway Dental Medicine Expansion, Health and Wellness UCH new tower CHC new tower VA Hospital AMC projects currently under construction provide up to 2,100 jobs, over $100M in payroll and over $270M in spending. 3

4 Clinical, Education & Research Accolades Clinical: No. 1 academic hospital in the country: University of Colorado Hospital (University HealthSystem Consortium) US News & World Report: University of Colorado Hospital: #1 in Denver area Children s Hospital Colorado: #5 in the U.S. National Jewish Health and University of Colorado Hospital: #1 respiratory hospital in U.S. Education: Medical School (primary care): #5 Medical School (family medicine specialty): #3 Medical School (pediatrics specialty): #5 College of Nursing (Nurse practitioner: pediatric): #5 Research: NIH funding for Schools of Pharmacy ($/PhD): # 3 NIH awards for public university Schools of Medicine: #11 4

5 Providing the Best Clinical Care More than 170 of 300 physicians named in 2012 survey of Denver Top Docs in 5280 magazine are CU faculty or clinical volunteers. 5

6 World-Class Hospitals on Campus Children s Hospital Colorado ~ 500,000 outpatient/er visits 82,000 inpatient hospital days 3,590 health care workers 318 beds (tower adding 124 beds) University of Colorado Hospital ~670,000 outpatient/er visits 112,000 inpatient hospital days 4,000 health care workers 400 beds (tower will add up to 288 new beds) More to come: In 2015, the Veteran s Administration Hospital will relocate from 9 th and Colorado Denver location 6

7 Higher Education Funding Background FY , 19% of the state budget went to higher education. FY , that share had fallen to 14%. FY , the share will likely be about 8%. CU s share of the 8% will likely be about $150.2 million. The state budget high point for higher education was $706 million in FY The Governor s request for FY is $543 million. This year, 5.3% of CU s budget comes from the state. Colorado ranks 48 th in the nation for state funding per full-time student in higher education. 7

8 Colorado s Revenue Growth Trend 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0%

9 Allocation of the State s General Fund Projection 9

10 Higher Ed Cut Deeply per Resident Student FY through FY Change in State Support 80% 60% 40% 20% 0% -20% -40% -60% 57% 17% 0% Western Ft. Lewis Adams -23% -30% -33% -35% -36% -36% -42% -45% -47% -49% UNC Mesa Metro CU-Boulder CCCS CSU Mines UCCS CU Anschutz CU Denver 10

11 CU s Revenue Sources Total Budget = $2.9 billion 11

12 CU Anschutz Medical Campus FY Budget Total Budget Amount $1.2 Billion Auxiliary $180.3M 15% Tobacco $13.9M 1% State Appropriation $50.0M 4% Tuition/Fees $73.2M 6% Other /F&A $85.0M 7% Gifts $31.7M 2% UPI $487.1M 40% Grants/ Contracts $303.5M 25% 12

13 Colo Springs Denver Anschutz Boulder Current Funds Funding History- By CU Campus State Approp Tobacco Tuition & Fees F&A Other Unrestricted Auxiliary UPI Restricted FY 01: $655.0 Million FY 13: $1.3 Billion **FY13 4% 38% 6% 22% 29% FY01 12% 27% 6% 21% 32% FY 01: $542.7 Million FY 13: $1.3 Billion **FY13 4% 6% 6% 15% 40% 27% FY01 13% 3% 7% 14% 25% 36% FY 01: $127.4 Million FY 13: $240.3 Million **FY13 9% 57% 1% 3% 12% 19% FY01 25% 32% 1% 5% 13% 24% FY 01: $65.4 Million FY 13: $166.0 Million **FY13 10% 47% 19% 21% FY01 32% 29% 23% 15% **budgeted F&A - Facilities and Administration 13

14 CU Anschutz Medical Campus Education-Related Revenue Sources = $207 Million Significant Dependence on State Funding compared to other campuses General Fund Revenues split equally between tuition, state, and indirect costs Indirect Cost Reimbrusement 30.0% Fees/Other 8.1% State Funding 30.9% Non-Resident Tuition 8.3% Resident Tuition 22.8% Total Revenue: $207M 14

15 How CU Spends a State Dollar in FY cents 10.3 cents 9.1 cents 6.5 cents 4.8 cents 15

16 CU s Administrative Expenses Below Peers 16

17 Public Schools of Medicine Tuition & Fees + State Support per Student (2011) 17

18 Millions State Budget Shortfalls on Horizon $400.0 $200.0 $0.0 ($200.0) ($400.0) ($600.0) ($800.0) ($1,000.0) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY

19 Precarious Future for Higher Education Funding 19

20 Millions National Leader in Research $1,000 $800 $600 $561 $589 $617 $640 $637 $661 $714 $884 $793 $815 $400 $200 $0 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12* Denver Anschutz Medical Campus Colorado Springs Boulder 20

21 Sequestration Passed as part of 2011 Budget Control Act Requires automatic, across the board, cuts to federal budget (beginning Jan. 1, 2013) with annual statutory spending caps through 2021 Unless Congress and President agree on budget plan Full impact unknown at this time but what we know now: 9% Department of Defense funding (16% FY13), 5.3% all other federal agencies funding (9% FY13), 2% for Medicare funding (DME & IME both) and on the meaningful use reimbursements 21

22 CU Awards 42% of all Public Undergraduate Degrees in Colorado 23,911 Baccalaureate Degrees in 2012 UCCS 6% Anschutz 1% CU Denver 7% UNC 8% Western 2% Adams 1% CO Mesa 3% CU Boulder 28% Mines 3% Metro 13% Ft. Lewis 3% CSU-P 3% CSU-Global 2% CSU 20% 22

23 CU Awards 58% of all Public Graduate Degrees in Colorado 8,708 Graduate Degrees in 2012 CU Denver 21% UNC 8% Western 0% Adams 2% CO Mesa 0% Anschutz 10% UCCS 6% CU-Boulder 22% Metro 1% CSU-P 1% CSU-Global 2% Mines 5% CSU 22% 23

24 Health Care Workforce Supply Shortage By 2020, national shortage of 95,100 physicians, 45,000 in primary care, 46,000 surgeons and medical specialists Colorado Health Institute estimates shortage by 2025 of : 1,000 primary care physicians 14,000 nurses 14% of rural physicians in CO plan to leave practice in the next year. Rural shortages in: dentistry, mental health 24

25 25 Anschutz Medical Campus Funding Strategies Base/State Funding: Legislative University Clinical affiliates University Physicians Inc. Branch medical campus Sponsored Funding: Shift towards private sponsorships/partnerships Industry Clinical Trials/ CRO-CTO model Ramp-up Tech Transfer (devices vs. drugs) Hiring Plan Bridge Funding

26 26 Respond to news stories about CU. How You Can Help Send s to reporters or post a comment online below the article supporting a positive story or providing context to negative stories. Write letters to the editor. We can help you via the CU Advocates website or contact us directly. Take action on our requests to contact your legislator with a message we provide. Attend your elected officials town hall meetings. Ask them to make higher education a funding priority in the state. Promote CU to prospective students and parents. We can provide talking points. Attend advocacy educational forums to get more informed. Financially support CU.