January 14, 2014
Institutional Priorities Committee
Minutes of January 14, 2014
3:00pm - 5:00pm
DeRosa Center Room 211
Present: Atterbury, Cavanaugh, Day, Eibeck, Fox, Gale, Hein, Kleinert, Lyon, Meyer (Chair), Murta, Pallavicini, Perrot, Rogers, Shaw, Staniec
Absent: Arnold, Cayton, Lackey, Leland, Luu, Martin
Call to Order: 3:00pm
Minutes: Minutes for the December 10, 2013 meeting were approved.
Brief update on McGeorge
Murta handed out a flyer on the master's program in Law (MSL). The program is currently in its first year and increased enrollment is expected next year. Competition is starting nationally for MSL programs. President Eibeck asked that pamphlets be passed out for Board of Regents meeting.
Murta gave a quick update on fall 2014 admissions for the JD program. The initial target was 165 new students, but they are watching closely as applications are down from the prior year. A McGeorge budget will be presented at a subsequent IPC meeting (possibly on February 11).
FY 14 Board book materials
Perrot presented the unrestricted funds budget. There is an expectation of over an additional $800,000+ of revenue, a savings of over $800,000+ in costs. There is therefore around $1,632,600 million dollars in additional positive net revenue. However, there will be additional commercial real estate ($1,418,600) and campus transitions ($2,889,400) costs which will reduce the projected year-end operating reserve (surplus).
Review FY 15 preliminary revenue/expense assumptions
Moody's has indicated that net tuition will be constrained in the higher education industry. As a result of external factors, Pacific is creating a Strategic Investment Fund (SIF), keeping the tuition increase low, and restraining expenditure growth.
Stockton campus key budget assumptions were discussed (850 new freshmen and 3.9% tuition increase). Discount rate forecast was slightly lowered. New student targets were discussed, including continuing students, graduate students, PharmD students for the Stockton campus. The committee reviewed potential tuition increases for undergraduates and Pharmacy. Room and board costs are still being considered. The group discussed factors that would lead to a decision on tuition increase, including external factors and peer institutions. "Cost" as perceived versus actual cost is assumed to be a factor in parent and student decisions to come to Pacific.
Perrot reviewed preliminary incremental revenue estimates.
Reallocation plan summary
The SIF for FY15 and FY 16 actual vs. target were discussed. There is $1,500,000 of additional monies for FY 2015. There should be a fund of $11.6 million in FY 2015 and $15 million in FY 2016. Decisions for the SIF will not be finalized until the April Board of Regents meeting.
IPC open campus forum
Group stated that the IPC forum may need to be in early March.
Future Agenda Items
- Arelene Cash should be invited to next meet IPC meeting.
- IPC to review tuition rate increase