Introduction of Heidi Swift:

• President Hodge introduced Heidi Swift to the meeting.
• President Hodge highlighted Heidi Swift's extensive experience, including:
  • Years of service to the campus in various financial roles (Budget Director, Controller).
  • Experience working for the state.
  • Recent retirement from Mount Wachusett Community College.
• President Hodge expressed gratitude for Heidi Swift's willingness to return to assist the finance team.
• President Hodge emphasized the need for additional financial expertise and noted that Heidi has effectively streamlined the finance department.

2. Heidi's Impact and Contributions:

• President Hodge acknowledged Heidi as a valuable single point of contact.
• Heidi has successfully focused the finance team's attention on critical financial matters.
• Heidi's presence has allowed President Hodge to allocate time to other pressing campus issues.
• President Hodge emphasized Heidi's institutional knowledge, state expertise, and overall financial oversight.
• President Hodge thanked Heidi for vetting and validating existing financial information.
• The financial validation confirmed the accuracy of previous projections.

3. Future Priorities:

• Heidi will focus on managing cash flow and the investment portfolio.
• President Hodge and Heidi recognized the need for attention in these areas.
• Cash flow and investment portfolio management will remain priorities through fiscal year 2026.

4. Fiscal Year 25 and 26 Budget Preview and Campus Message:

• The meeting's purpose was to preview the Fiscal Year 25 budget and the Fiscal Year 26 campus message.
• The campus message will be distributed to the university after committee review and Board of Trustees preview, approximately 20-30 minutes before campus-wide distribution.
• A fifth Board of Trustees meeting is required to approve the Fiscal Year 26 budget.
• The timeline is similar to previous years, but with fewer preliminary meetings.
• Additional committee meetings are anticipated for Fiscal Year 26 planning due to a different approach and the need to maintain campus stability.

5. Introduction and Update from Heidi Swift:

• Heidi Swift provided an overview of her first 45 days with the finance team.
• She expressed excitement about returning to Fitchburg State and noted the campus's "rejuvenation."
• She highlighted the need for definition and the resilience and commitment of staff and stakeholders.
• She emphasized the importance of honest and open conversations regarding finances and budget impacts.
• She noted that the current economic climate is forcing all government entities to transition.
• She stressed the importance of aligning financial and academic processes to support enrollment and the campus's future.

6. Budget Document Discussion:

• The budget document for Fiscal Year 25, including quarter two actuals, was distributed via email and BoardDocs.
• Quarter two is considered a key benchmarking period for assessing annual financial activity.
• The financial state of the university is stable.

1. Budget Review and Enrollment Update:

• The budget review showed results close to budgeted actuals and aligned with FY24 activities.
• Fall FTE student numbers increased by 57, exceeding the budgeted figure.
• Spring FTE student numbers are projected to slightly increase.
• Out-of-state student numbers are 6% lower, but overall year-over-year numbers are on target.
• The campus community's collaborative effort in enrollment was noted, especially the outreach that occurred in the late summer.
• The increase of 57 students resulted in approximately $350,000 in additional revenue for the fall.
• The importance of monitoring fall-to-spring student retention was emphasized.
• The discussion was clarified to be about day school undergraduate enrollment.
• The transfer of students from graduate and online programs was discussed.
• The partnership with Rise Point for graduate and online programs was noted, along with its associated costs and benefits.
• Fitchburg State's online enrollment represents one-third of the state's public graduate and online enrollment.
• The strong collaboration between tenured and tenure-track faculty and SGOCE was highlighted as a key factor in the program's success.
• The importance of graduate and online program revenue to the operational budget was acknowledged.
• The need to explore new graduate programs and certificates, including online and in-person options, was discussed.
• The financial benefits of recruiting international and out-of-state students were highlighted.

2. Expense Review:

• Personnel expenses are 2.5% higher than expected.
• Utility expenses are 4% higher due to contractual rate increases.
• Capital expenditures are lower than the prior year by $1 million, but are expected to increase in quarter three.
• The renegotiation of electrical costs in December 2025 was mentioned.
• The involvement of the capital planning and management team in these negotiations was emphasized.
• Collective bargaining agreements will impact future expense numbers.
• The budget document was described as a good benchmark, and ongoing analysis of the actuals is taking place.
• The importance of separate budget presentations to the Board of Trustees was stressed.

3. Grant Funding:

• Grant spending is at 102% of the budget.
• There have been no impacts from federal executive orders on grant funding.
• Massachusetts is currently exempt from certain executive order restrictions.
• The state is prepared to backfill potential funding gaps.
• State dollars for commitments, including the $29 million success grant, are still pending.
• The state university presidents are advocating for additional state funding.

4. Questions and Discussion:

• Questions regarding the grant line item and potential impacts from executive orders were addressed.
• General discussion on the budget and the financial health of the university.

1. Enrollment and Fiscal Year 26 Budget Planning Message:

• Enrollment is a key factor in budget discussions and cannot be separated from the overall financial picture.
• A campus message regarding Fiscal Year 26 budget planning will be sent out after Board of Trustees review.
• The message is being sent out about two weeks later than usual, but the timeline is not a concern.
• The goal is to return to the standard budget submission timeline by March 14th.
• The message aims to shift the campus from a scarcity mindset to one of strategic growth and investment.
• The importance of enrollment for fulfilling the academic mission was emphasized.
• The enrollment management team will present a stretch goal for increased enrollment in Fall 2025 at the next meeting.
• The message outlines strategic growth priorities, including prioritizing people, investing in smart change for enrollment growth, and maximizing assets.
• The use of campus properties will be reviewed for alignment with the institution's mission.
• The practice of "extraordinary budget requests" will be eliminated.
• Budgets will be built based on actual spending and operational needs, rather than perceived needs.
• This process will be more complex in the first year and is expected to be fully implemented by Fiscal Year 27.
• Academic innovation funds will be shifted to the Provost's control to allow for more strategic allocation.
• The need to address critical life safety issues, such as updating law enforcement officers' equipment, was highlighted.
• Budget submission guidelines will require baseline budgeting, with cabinet-level supervisors working with Heidi Swift on strategic planning.
• The budget submission deadline is Friday, March 14th.
• A budget webpage with resources is available.
• Cost center managers are familiar with the process, and the new approach is expected to be welcomed.
• The Board of Trustees will receive a preview of the campus message before it is distributed.

1. Scheduling Fifth Board of Trustees Meeting:

• The final agenda item was to schedule a fifth Board of Trustees meeting for budget confirmation.
• May 12th was proposed as the date for the meeting.
• Attendees Karen Spinelli, David Tiernan, and Michael Fiorentino indicated the proposed date worked for their schedules.
• It was agreed that a message would be sent to the trustees, informing them of the discussed meeting date.
• President Hodge and Heidi Swift will present the proposed date during the budget presentation at the next meeting.
• The advanced notice of the meeting date was deemed beneficial for planning.
• The goal is to provide the Board of Trustees with a near-final budget before the summer.

No new business was discussed.