Town Meeting

1
Town Meeting
American University of Beirut

• 2005 / 2006 Budget
• June 2005

2
A Year of Progress

• Balanced Operating Results for last three years
  and Balanced Operating Budget for 2005/06
• Balanced Capital Budget that supports significant
  new construction and continued investment in
  academics and medicine
• Continuing Revenue growth at the AUBMC
• Inception of Strategic Planning Initiative

3
Hard Realities

• Investment draw is declining in 04/05 05/06
• Donor support for operations ( non-restricted
  funds) has declined
• Rising fuel costs
• Lebanese economy remains fragile and continues to
  suffer from slow growth
• Substantial Government receivables

4
Oil Prices
5
Challenges Ahead

• Stable enrollment
• Better management of student enrollment with
  focus on quality and diversity
• PhD programs on the horizon
• Operating costs of new student facilities
• Maintaining faculty strength
• Continued renewal of AUBs existing
  infrastructure

6
Whats coming in 2005-06?

• Major dislocations associated with major building
  projects
• Outsourcing of HIP

7
Budget Assumptions

• Stable overall student population
• 10 increase in fuel costs vs. 2004/2005 58
  vs. 2003/2004
• 8 increase in Library periodical costs
• 6 increase in replacement and renewal

8
Recommendations

• 2.75 to 5.0 increase in tuition rate
• Average of 3.7
• 6 increase in student scholarships
• 2.0 pool for merit increases

9
Net Revenue Growth
US Million Tuition Rate Increase 2.9 Inc
reased Hospital Revenues 3.9 Sub-Total 6.8 L
ess US Aid, Investment Income (1.0) Total

5.8
10
Operational Investments
11
Need Based Financial Support (000)
12
Faculty Investment
Including visiting academic staff and Medicine
13
Cost Creep
14
Non-Instructional Support Services Costs
15
Vital Capital Projects

• 
  Total Project Cost (USD Millions)
• Charles Hostler Student Center
  21.9
• Olayan School of Business
  18.4
• Irani Engineering Complex
  11.5
• Scientific Research Building
  4.5
• Medical Arts Facility (old OPD)
  8.0
• School of Nursing
  2.8
• Issam Fares Institute
  4.3
• Dar Al-Handasah Architecture Bldg
  4.3
• Bechtel Bldg
  3.0
• Engineering Science Library
  4.0
• Total
  82.7

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05/06 Capital BudgetMajor Projects
17
05/06 Capital Budget Funding
Renewal Replacement 10.6
million Related Investment Income 0.8
million AUB Funding
11.4 million Balance Carry Forward
(Prev.Approved) 4.8 million Loan Financing
12.7 million Donor Funding 8.6
million American Schools Hospitals Abroad
(ASHA) 1.8 million Total
39.3 million
18
Long-Term Objectives

• Academic Excellence
• Service Excellence
• Financial Balance