budget update september 19, 2008
DESCRIPTION
Budget Update September 19, 2008. FY 2008 Spending Plan. TODAY’S BUDGET DISCUSSION WILL FOCUS ON FY2008 AND FY2009 OPERATING BUDGETS – This does not include funding for: Capital Projects (new building) Federal, State, and private grants (student aid) Endowment – Scholarships. - PowerPoint PPT PresentationTRANSCRIPT
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Budget UpdateBudget UpdateSeptember 19, 2008September 19, 2008
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FY 2008
Spending Plan
FY 2008
Spending Plan
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TODAY’S BUDGET DISCUSSION WILL FOCUS ON FY2008 AND
FY2009 OPERATING BUDGETS –
This does not include funding for:
1. Capital Projects (new building)
2. Federal, State, and private grants (student aid)
3. Endowment – Scholarships
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WHERE DOES THE UNIVERSITY RECEIVE WHERE DOES THE UNIVERSITY RECEIVE ITS RESOURCES?ITS RESOURCES?
FY2008FY2008
Student Tuition and Fees $78,400,258 Student Housing & Food 19,420,806 Other Student Fees (app fee, cont. enrollment fee) 4,536,083
– Total Collected from Students $102,357,147 (57%)
State Appropriation $48,371,011 Fringe Benefits (state contribution for
employee benefits) 24,357,107– Total State Support $72,728,118 (40%)– Other Revenue (rental, interest
earnings, commission) $5,645,238 (3%)
– Total Revenue FY2008 $180,730,503 100%
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95.3% OF SOUTHERN’S REVENUE IS ENROLLMENT DRIVEN
Total Collected from Students $102,357,147
Appropriation basedon enrollment 69,849,793
$172,206,940
$172,206,940 / $180,730,503 = 95.3%
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HOW ARE THE RESOURCES SPENT?
PERSONNEL
Full Time Personnel $65,510,293
Part Time Personnel 16,911,256
Additional Compensation(overtime, longevity) 4,159,384
Fringe Benefits 32,092,294 *
Total Personnel Costs $118,673,227(66%)
* State support is $24,357,107
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OPERATING EXPENSES
Utilities $8,704,094 Institutional Financial Aid 7,259,423 Professional Services 5,556,605 Food Service Contract 5,255,285 Insurance 3,204,938 Repairs/maintenance Supplies 2,880,674 Library Materials/Books 2,204,510 Equipment 2,034,669 Other Expenses (travel, advertising,
office supplies, postage) 12,667,266
Total Operating Expenses $49,767,464(27%)
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DEBT SERVICES (per BOT Policies)
System Debt Service $7,062,542
Parking/Residence
Hall Debt Service 4,906,068
Total Debt Service $11,968,610 (7%)
Total Expenses $180,409,301 100%
Total Favorable $321,202 *
* 1/5th of 1.0% of total budget
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HOW ARE SCSU’S DISCRETIONARY DOLLARS USED TO SUPPORT FUNCTION/PROGRAM?
Instruction $63,851,016 43.50%Research 2,449,208 1.67%Academic Support 8,727,242 5.95%Library 6,449,292 4.39%Scholarships, Loans 7,668,049 5.22%Student Support Services 19,664,996 13.40%Institutional Support (Admin) 20,588,593 14.03%Physical Plant (Facilities) 16,952,650 11.54%Public Service 435,553 0.30%
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FY 2008 NEW BUDGET INITIATIVES (1.4 million)
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FY2008 SUMMARY
95.3% funding – student driven
61% of current budget – spent in support of academic programs
70% of new dollars = new faculty
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FY 2009
Spending Plan
FY 2009
Spending Plan
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BUDGET DEVELOPMENT FOR FY2009
December 2007 – January 2008
FY2008 mid-year review
Established 08-09 AY financial aid budget
Established guidelines for divisional budgets
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February 2008 – April 2008
– Received preliminary FY2009 Spending Plan guidelines from CSU System Office
Estimated State Appropriation
Final enrollment numbers for state supported funding
Office of Policy & Management (OPM) Inflation factors
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THE ORIGINAL BASE BUDGET FOR FY 2009IDENTIFIED A SHORTFALL OF $4.8 MILLION
($ WE NEED VS $ WE RECEIVE)WHY?
Original enrollment targets for FY 2008 were not achieved
+
Other CSUS Universities exceeded their enrollment goals
=
Reduced share of State Appropriation from fundable enrollment
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Fundable EnrollmentCentral Eastern Southern Western
FY2007 Fundable Enrollment 6,955 3,443 7,172 3,694
FY2008 Fundable Enrollment 7,222 3,625 7,132 3,915
FY2008 Student Change 267 182 - 40 221 3.8% 5.3% - 0.6% 6.0%
FY2008 Original Enrollment Goals 0.1% 2 .8% 2 .0% 2 .0%
FY2008 Distribution Share 32 .71% 16.19% 33.73% 17.37%
FY2009 Distribution Share 32 .99% 16.56% 32 .58% 17.89%
Change in Distribution Share 0.26% 0.37% -1.15% 0.52%
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Impact on Southern's FY2009 Budget
Distribution Percentage BudgetPool Change Change
206,180,993 x 1.15% = (2,371,081)
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OTHER FACTORS THAT CONTRIBUTED TO SHORTFALL:
Revised CSUS distribution ($500,000 lost revenue)
The original budget assumed no vacant positions
Therefore…
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Reexamined FY 2009 enrollment targets with the Enrollment Management Council
– FT undergraduate > +1.0%
– FT graduate > flat
Resulted in $500,000 increased revenue
Staggered hiring; kept some staff positions vacant resulting in $1.7 million
Reduced operating expenditures by $1.4 million
Utilize $1.2 million from Unrestricted Reserve Balance
NOTE: Reserves continue to be in compliance with BOT policy.
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ESTIMATED CURRENT UNRESTRICTED RESERVES
Debt Service $8,600,544
Required per BOT Policy 9,303,668
Designated Reserves 4,373,251
TOTAL $22,277,463
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May 2008 – July 2008
Balanced FY09 Spending Plan was presented to the Board of Trustees
o June 13, 2008 Reviewed by BOT
o July 17, 2008 BOT approves FY2009 Spending Plan
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JULY 2008–GOVERNOR INITIATES A 3% RESCISSIONIMPACT BY EXPENSE CATEGORY
Full Time (turnover) ($200,000)University Assistants (295,948)Part Time Staff (193,534)Overtime (189,213)All Other P.S. (shift differential) (107,034)Fringe Benefits (667,719)Other Expenses (consulting & prof. services) ( 383,268)
Total ($2,036,716)
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STRATEGIES THAT ARE BEING APPLIED TO MANAGE THE BUDGET:
• Focus of budget management is adherence to Strategic Plan
• Enrollment teams:o Enrollment Management Councilo Enrollment Operations Committeeo Summer Enrollment Committeeo Graduate Councilo Deans Council
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• Energy Conservation:o Locked rate for electricityo Planned reverse auction for natural gaso Conservation initiatives (switches, controls, temp.
regulation & light bulbs)o New electrical & mechanical systems for Earl Hall,
Jennings & Lyman
• Facility Usage:o Ensure that we are recovering our costs for outside
facility rentalo Pursue opportunities to increase other revenue streams
• Vigilance on the expense side of the budget
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HIRING FREEZE - EFFECTIVE MAY 29, 2008
• All administration and faculty positions are covered by the freeze
• University may request an exemption for public health and safety reasons
• Every effort must be made to minimize overtime expense
• There will be no relief from the part-time cap in the current AAUP collective bargaining agreement
• Use of outside consultants will be closely scrutinized
• Any management positions that become vacant in the Fall 2008 will remain vacant at least until January 2009
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OUT-OF-STATE TRAVEL – RESTRICTION
May 29, 2008 – Chancellor Carter requested the university presidents to authorize out-of-state travel requests that are “deemed essential to university business.”
Exceptions are:• Contractually–mandated travel• Student clubs/organizations funded from student
activity funds• Grant funded travel
Quarterly reports to demonstrate savings If savings are not apparent, then an overall
moratorium will be placed on out-of-state travel
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WHERE ARE WE NOW?
1. Expecting another 2% rescission
2. Developing strategies to increase enrollment where we have interest and capacity (Graduate School)
3. Focusing on recruitment of transfer students (Compac Agreements)
4. Working to retain undergraduate students through to graduation