A meeting of the Finance Committee of the Board of Trustees convened at 10:08 a.m. on Friday, June 7, 2024, in Room 326 of Stewart Center on the campus of Purdue University in West Lafayette, Indiana.

Committee members present: Michael Klipsch, Chair; Sonny Beck; Malcolm DeKryger; Gary Lehman; and Shawn Taylor. Other trustees present: Michael Berghoff; Kevin Boes; JoAnn Brouillette; and Vanessa Castagna. Theresa Carter participated via conference call.

Officers and administrators in attendance were: Mung Chiang, president; Patrick Wolfe, provost and executive vice president for academic affairs and diversity; Eva Nodine, senior vice president, assistant treasurer, and assistant secretary; Steve Schultz, general counsel; and Cindy Ream, corporate secretary and senior executive assistant to the Board.

I. APPROVAL OF MINUTES

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to approve the minutes of meetings convened August 4, 2023 and December 8, 2023.

II. (SW) APPROVAL OF FY25 OPERATING BUDGET

Eva Nodine, senior vice president, assistant treasurer, and assistant secretary introduced Andrew Bean, associate vice president of finance and accounting, who respectfully requested approval of the University’s FY 2025 operating budget. Mr. Bean shared highlights noting system-wide steady-state operating revenues of $3.159 billion exceed steady-state operating expenses of $3.087 billion, resulting in an operating surplus of 2.3% ($72 million). He shared that excluding impacts from the realignment of IUPUI engineering, technology and computer science degree programs to Purdue, revenue is budgeted to grow 2.8% compared to FY 2024. This increase is primarily driven by West Lafayette undergraduate enrollment increases, growth in sponsored awards, new rates for on-campus student housing and dining, and athletics revenue increases. Mr. Bean noted expense increases are attributable to strategic investments in the Daniels School of Business, research excellence initiatives, and new online program growth plus faculty/staff compensation increases (3% for the main campus and Northwest, 2% merit for Fort Wayne), higher minimum graduate assistant salaries, and completion of necessary utility infrastructure maintenance on the West Lafayette campus. In closing he noted that tuition and housing rates remain frozen at the West Lafayette campus for FY25, the twelfth consecutive year for tuition and fees. Tuition rates will increase by 3% at the regional campuses, below the 3.5% max rate in the last biennial recommendation from the Indiana Commission for Higher Education.

Upon proper motion duly made and seconded, the Finance Committee voted unanimously to recommend full Board approval of FY25 Operating Budget. A copy of the presentation and supporting documents were filed with the minutes.

By consent, the meeting adjourned at 10:20 a.m.