Budget Overview Budget Information Committee February 26 2007

Budget Overview Budget Information Committee February 26, 2007 1

Questions submitted in advance n What is the purpose of a University budget? 2

Budget Overview Purpose of a Budget n Governing document n Management tool and spending plan n Communication of the University's priorities n A baseline for financial performance 3

Questions submitted in advance n What is the purpose of a University budget? n What processes are in place to ensure budget transparency and communication of budgetary information to the university community? 4

Budget Overview Budget Transparency n Public document posted on YSU website. n Budget document is 20+ pages of detail. n Financial managers of all university depts. receive budget detail report. n Discussed and approved by Board of Trustees at public meetings. n Budget to actual comparison presented quarterly at public Board meetings. n Audited financial statements posted on web. n Budget Information Committee. 5

Budget Overview YSU’s General Fund Budget n FY 2007 = $135 million n 13, 183 students (fall 2006) n 1, 050 employees n 1, 800 student employees n 139 acres with 41 major buildings n 2. 7 million square feet of building space 6

Budget Overview General Fund Revenues by Source, FY 2007 7

Budget Overview Tuition vs. State Funding, FY 02 – FY 06 8

Budget Overview YSU Tuition vs. State Funding for YSU, FY 02 – FY 06 9

Budget Overview State funding trends 10

Budget Overview General Fund Expenditures by Division, FY 07 11

Questions submitted in advance n What is the purpose of a University budget? n What processes are in place to ensure budget transparency and communication of budgetary information to the university community? n Why have the budget increases for Academic Affairs’ been lower than other divisions in recent years? 12

Budget Overview 13

Budget Overview n Budget Change since FY 2001 14

Budget Overview YSU’s FTE Enrollments 15

Budget Overview YSU Faculty (FTE) 16

Budget Overview YSU Student to Faculty Ratio (FTE) 17

Questions submitted in advance n What is the purpose of a University budget? n What processes are in place to ensure budget transparency and communication of budgetary information to the university community? n Why have Academic Affairs’ budget increases been lower than other divisions in recent years? n Why did “institution-wide” increase by 44. 2%? 18

Budget Overview Office of the President 19

Office of the President Total FY 2007 budget: $4, 427, 870 20

Questions submitted in advance n What is the purpose of a University budget? n What processes are in place to ensure budget transparency and communication of budgetary information to the university community? n Why have Academic Affairs’ budget increases been lower than other divisions in recent years? n Why did “institution-wide” increase by 44. 2%? n Why did “other administration” increase by 39%? 21

Budget Overview Administration 22

Questions submitted in advance n What is the purpose of a University budget? n What processes are in place to ensure budget n n transparency and communication of budgetary information to the university community? Why have Academic Affairs’ budget increases been lower than other divisions in recent years? Why did “institution-wide” increase by 44. 2%? Why did “other administration” increase by 39%? Why did non-divisional transfers increase? Provide specific accounting of transfers, including transfers to the Foundation. 23

Budget Overview Non-Divisional Transfers 24

Budget Overview University policy on Transfers n All inter-fund transfers ≥$100, 000 must be approved by the Board of Trustees. n All inter-fund transfers of <$100, 000 must be reported to the Board of Trustees. n All transfers within the operating budget ≥$250, 000 must be reported to the Board of Trustees. n Transfers between General Fund and YSU Foundation are rare. 25

Questions submitted in advance n What is the purpose of a University budget? n What processes are in place to ensure budget n n n transparency and communication of budgetary information to the university community? Why have Academic Affairs’ budget increases been lower than other divisions in recent years? Why did “institution-wide” increase by 44. 2%? Why did “other administration” increase by 39%? Why did non-divisional transfers increase? Please provide specific accounting. Where is the money from healthcare co-pays going? 26

Budget Overview Fringe Benefit Costs: $23. 6 million in FY 06 27

Budget Overview Budget Growth since FY 2000 – FY 2007 28

Questions submitted in advance n What processes are in place to ensure budget n n n transparency and communication of budgetary information to the university community? Why have Academic Affairs’ budget increases been lower than other divisions in recent years? Why did “institution-wide” increase by 44. 2%? Why did “other administration” increase by 39%? Why did non-divisional transfers increase? Please provide specific accounting. Where is the money from healthcare co-pays going? An accounting of all reserve funds? 29

Budget Overview Reserve Funds n Funds set aside for a “rainy day” n Reserves ≠ base dollars. n Reserves = one-time dollars. 30

Budget Overview Institutional Reserves n 5% Operating Contingency: $6, 760, 000 n Plant funds: n Housing Services: $1, 153, 000 n Kilcawley Center: $1, 342, 000 n Parking Services: $893, 000 31

Budget Overview n State’s measure of fiscal health places an emphasis on maintaining reserves. n The state’s scoring system places the greatest weight on reserves. n Net Income: 20% of total score. n Viability: 30% of total score. n Primary Reserve: 50% of total score. n If financial distress is detected, a campus can be placed under state fiscal watch. 32

Budget Overview Capital Budget n FY 2007: $44. 4 million n Not part of operating budget n Funding sources: n State capital appropriations n Philanthropy n Debt proceeds 33

Budget Overview Debt per FTE - Ohio public universities, FY 05 34

Budget Overview Budget Process December – June n Develop revenue estimates n Develop enrollment projections n Develop tuition & fee scenarios n Obtain up-to-date state funding estimates from Ohio Board of Regents 35

Budget Overview Budget Process December – June n Model expenditures n Personnel costs are priority n Other fixed costs n Other base costs 36

Budget Overview Budget Process March n Present draft budget to Board of Trustees June n Submit final budget to Board for approval December n If necessary, submit a modified budget to the Board for approval 37

Budget Overview Other questions for future discussion n Summer School Committee report n Banner budget n Student wages n Other topics? 38