GPSC Fee Considerations

1
GPSC Fee Considerations

• Presented by Sara Becker,
• 2004-2005 GPSC Treasurer
• With special thanks to GPSC Finance Committee
• Adili Kabahita, Law School
• Jason Mehta, Law School
• Jeremy Williams, Sanford Institute
• Mike Pietsky, Fuqua
• Members of 2004-2005 Executive Board

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EXECUTIVE SUMMARY

• GPSC expenses have grown significantly, while
  revenue has remained flat
• Growth in expenses is largely driven by increased
  demand for student group funding
• GPSC fees are out of synch with comparable groups
  and peer institutions
• Current spending projections will not be
  sustainable past 2006-2007
• Next fall, GPSC general assembly will need to
  decide whether to raise fees or decrease costs in
  following academic year

Source GPSC Budget Records, 2000-2005
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GPSC FEE HAS BEEN FLAT FOR OVER 5 YEARSModest
Revenue Growth due to Increased Enrollment
Revenue (s)
GPSC Annual Revenue, 2000-2005
Academic Year
Source GPSC Budget Records, 2000-2005
4
WHILE EXPENSES HAVE BEEN RISING Expenses Now
Exceed Revenue
GPSC Annual Revenue Expenses, 2000-2005
(s)
Expenses
Academic Year
Source GPSC Budget Records, 2000-2005
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INCREASE IN EXPENSES LARGELY DRIVEN BY STUDENT
GROUP FUNDINGGroup Funding Increasingly Large
Proportion of Revenue
GPSC Annual Revenue Student Group Funding,
2000-2005

Academic Year
Revenue
10 14 24 46
53
Source GPSC Budget Records, 2000-2005
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FUNDING REQUESTS HAVE SKYROCKETEDConsequently,
Average Award Has Declined...
Number of Requests Per Year, 2001-2005
Average Award Per Event
230 423 387 929
Source GPSC Budget Records, 2001-2005. Note
Number of requests not recorded in 2000-1
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GPSC FEES SMALL FRACTION OF UNDERGRADUATE
FEESDSG Fees Growing, While GPSC Stays Flat
GPSC Fees Vs. Duke Student Government Fees,
2001-2004
(s)
GPSC
9.50
Academic Year
Source GPSC Budget Records, 2001-2004. SOFC
budget posted on DSG website (not available after
2004)
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GPSC FEES LOW RELATIVE TO PEER INSTITUTIONS
Source Institutions selected based on
comparable endowment levels (per GPSC Health
Committee). Data compiled by Adili Kabahita.
Note Northwestern Johns Hopkins do not have
fees.
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CURRENT SPENDING IS NOT SUSTAINABLEProjected to
Run Out of Carryover Funds in 2006-2007

• GPSC has had significant carryover funds for
  most of the past 5-10 years
• Beginning in 2003-2004, GPSC expenses exceeded
  revenue, reducing the carryover funds
• In 2004-2005 year, GPSC had 46K in carryover,
  down from over 60K the year before
• Based on year-to-date spending, carryover will
  reduce to 33K in 2005-2006
• Carryover is projected to run out in 2006-2007
• If 2005-2006 budget is approved, then carryover
  would be 15.8K in 2006-2007. This amount would
  not support current spending levels of
  approximately 70K per year.

Source GPSC Budget Records, 2000-2005
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GENERAL ASSEMBLY WILL NEED TO VOTE ON FEE LEVEL
IN FALL 2005Three Preliminary Recommendations

• Cost-cutting Vote to keep fees flat
• GPSC significantly reduces student group
  programming budget and encourages other
  Administrative offices to support student groups
• GPSC significantly reduces the Student Life
  budget and considers lower-cost social options or
  higher fees for events
• Moderate growth Vote to raise fees 5 / student
  (revenue increases 25-30K/ year)
• GPSC continues to increase student group funding
  (10K/year)
• GPSC holds annual retreat (5K/year)
• GPSC invests in website and communication efforts
  (2K/year)
• GPSC Student Life, Community Service, Academic
  Affairs and Other New Initiatives receive
  additional, modest support

Source GPSC Budget Records, 2000-2005
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GENERAL ASSEMBLY WILL NEED TO VOTE ON FEE LEVEL
IN FALL 2005Three Preliminary Recommendations
(continued)

• Aggressive Growth Vote to raise fees 10 /
  student (revenue increases 50-60K/ year)
• Fee raise in synch with Union increase and peer
  institutions
• GPSC significantly increases student group
  funding
• GPSC holds annual retreat
• GPSC continues to expand website and
  communication efforts
• GPSC increases national presence (e.g. more
  financial involvement in National Association for
  Graduate and Professional Students)
• GPSC returns to having a modest carryover for
  insurance / liability purposes
• GPSC Student Life, Community Service, Academic
  Affairs and Other Initiatives receive additional
  support GPSC holds more frequent, expensive
  events for graduate and professional community
• Other, new initiatives receive generous support

Source GPSC Budget Records, 2000-2005
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GENERAL ASSEMBLY COULD ALSO CONSIDER PERMANENTLY
CHANGING FEE STRUCTURE Some Options to Stay on
Top of Things...

• Set Review Could guarantee that fee will be
  reviewed and voted upon at specified times (e.g.
  1X per year, every other year, etc)
• This option could be used in isolation or
  combined with below options
• Inflationary Structure Could set GPSC fee to
  inflation, such that fees rise certain percentage
  per year
• Graded Increase Could increase GPSC fee by
  certain amount every year (or few years),
  regardless of inflation levels
• Trigger Method Could identify triggers for
  when fee needs to be reviewed (e.g. when
  carryover funds drop below certain level)

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WHAT NEXT? Things You Can Do to Before You Vote!

• Direct your constituents to the GPSC website and
  tell them to review this presentation!
• If you are graduating, please get your new GPSC
  rep up to speed!
• Ask your constituents for feedback
• On fees structure What do they want GPSC to do
  for them? What options do they like? What
  options might we not have considered?
• On how they want to be heard What works best for
  them? Surveys, flyers, e-mails, newspaper ads, or
  something else?
• Collect constituent feedback and share it with
  your NEW GPSC Treasurer, Scott Smith!
  scott_at_scottysmith.net
• Attend next years GPSC Retreat armed with
  feedback and get excited to make a decision next
  fall!
• REMEMBER this decision is up to YOU YOUR
  CONSTITUENTS! -)