Temple University Financial Overview

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Temple University Financial Overview
June 19, 2009
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Outline

• Review the current financial state of Temple
• Key financial factors and the broader economic
  impact
• 2009-2010 Budget update
• Looking forward

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Independent Third-Party Debt Rating

• Aaa U of Michigan U of Texas
• U of Virginia
• Aa1
• Aa2 PSU Pitt Penn Maryland
• Aa3 Rutgers PA/SSHE
  
• A1 Temple University
• A2
• A3
• Baa1
• Baa2
• Baa3 TUHS
• Ba1
• Junk Bonds Ba2 Non-Investment/Speculative
  Grade
• Ba3

Investment Grade Bonds
Source Moodys Investment Service Long-term
Debt Rating
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Key financial factors

• Declining trends in state appropriations
• Endowment
• Tuition
• Reliance as share of Education and General Budget
• Commitment to affordability
• Impact on students
• Debt burden
• Availability and affordability of credit

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Diminishing buying power of Commonwealth
appropriations
in thousands
35.9M loss in buying power since 2002
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Temple Revenue2009-2010 General Operating
793.1 Million
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2009-2010 Budget Highlights

• Key goals
• Minimize the tuition increase
• Address unmet need and rising student debt
• Strengthen the balance sheet
• Key features or responses
• 2.9 tuition increase
• Increase financial aid
• 5 operating budget reduction from FY09
• Role of Federal State Stabilization Funds

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Looking forward

• Continued considerations
• Monitoring state and federal support levels
• Assessing the impact on students
• Preserving enrollment
• Diversifying revenue
• Carefully steering Temple through very difficult
  times
• It is not business as usual