Budget Update Academic Senate University Budget Committee September
Budget Update Academic Senate University Budget Committee September 12, 2006
Budget Update • • CSU Budget CSU New This Year HSU Budget HSU New This Year
CSU Revenue Budget • $75. 8 Million representing a 3% general fund increase from the Compact • $54. 4 million representing the buy-out in lieu of a fee increase (based on 8% undergraduate / 10% graduate) • $61. 3 million enrollment growth funding at $7, 225 GFS (in addition budget assumes $2, 264 per FTES in student fees) • $3. 4 million increase for Math/Science and Nursing Initiatives • $7. 1 million funding for CSU Outreach/Center for CA Studies • $23. 2 million increase in revenue from enrollment growth • Total CSU budget is $3. 7 B and a 7. 8% increase over last year
CSU Expenditure Budget • $-28. 3 million adjustment for decreased costs (retirement, enrollment, bond and fee interest payments, annuitant’s dental, and campus programs) • $6. 4 million increase in State University Grant Program • $33. 6 mandatory costs (health benefits, insurance, new space, energy) • $70 million for resident student enrollment growth • $2. 8 million MSN Nursing enrollment growth • $94 million employee compensation • $3. 5 million state-supported math/science, and nursing • $10 million for long-term needs for libraries, deferred maintenance and technology initiatives • $7 million CSU academic preparation and outreach • $184, 000 Center for CA Studies Fellows Program
CSU New This Year • Legislation approved to retain tuition and fees at the local campus • No more frenzied year end spending – the state will not require us to spend balances to zero • Centralized investment of revenue • Centralized banking – depository and disbursement banks • Funding for new resident students only C
HSU BUDGET
University Budget Committee Recommendations Description Part-time Lecturer Funding Financial Data Integrity VP of Advancement Position Effective Communication, Deaf Students Web Content Manager Operating Budget and Staff-OEM Development Officers Dollars $1, 300, 000 $305, 968 $200, 000 $245, 233 $69, 650 $530, 459 $247, 376
University Budget Committee Recommendations Description Smart Classroom Build-out Library Materials Budget Restoration / Augmentation Alternate Media & Assistive Technology Effective Student Retention Field Portion of Track and Field Total Top Recommendations Dollars $246, 966 $343, 000 $125, 650 $77, 602 $81, 992 $3, 773, 896
HSU Budget • Authorized and State funded enrollment level decreased to 7, 240 (7, 014 Resident) Full-time Equivalent Student (FTES) • Represents a decrease in the budget of 149 FTES or -$760, 496 • Enrollment target is rebenched to represent graduate unit loads for a full-time equivalent student to 12 units per term • FY 06 -07 budget built on the assumption of enrolling an annual average of 7, 148 FTES (including Summer Session) – Summer actual enrollments reported at 233 FTES – Need approximately 7, 170 FTES for Fall and 6, 890 FTES for Spring to meet HSU’s internal budget estimate for an annual average of 7, 148 FTES – Fall Enrollments as of 9/11 – 6, 830 FTES – Freshman up significantly – Transfers increasing – Continuing Students decreasing – Spring Semester – applications are down
Where Does Our Money Come From? General Fund Support Student/Other Fees Total General Fund Net Increase over 05/06 $71, 134, 997 $21, 068, 976 $92, 203, 973 $2, 443, 321
What Did We Fund? Mandatory Cost Increases Net Budget Increase FY 06 -07 Mandatory Costs $2, 443, 321 $4, 288, 875 (Salary Increases, Health and Retirement Rate Changes, Financial Aid, New Space Funding, University Advancement, Energy Costs) Budget Shortfall -$1, 845, 554
How Do We Fund The Cost Increases? One-time Campus-Wide Reallocation To FY 2006 -07 Base Budget Division Academic Affairs Student Affairs University Advancement Administrative Affairs President’s Division All University Total Across-the. Board Reduction -$1, 409, 900 -$199, 000 -$39, 500 -$289, 800 -$39, 500 -$22, 400 -2, 100, 000 Actual Net Changes -$425, 000 $234, 000 $90, 000 $308, 000 -$50, 000 -$157, 000 $0
What Did We Fund? Divisional Changes FY 06 -07 Academic Affairs Lecturers Searches Lab Courses Curriculum Revisions Total Reductions Funded $984, 900 -125, 000 -100, 000 -200, 000 -$425, 000 $984, 900
What Did We Fund? Divisional Changes FY 06 -07 Student Affairs OEM base Student retention SASOP O+E Campus IRA Support Counseling Total Reductions Funded $279, 000 $50, 000 $10, 000 -$35, 000 -$70, 000 -105, 000 $339, 000
What Did We Fund? Divisional Changes FY 06 -07 Administrative Affairs Staff Reductions -$412, 000 $70, 000 Grounds Workers $200, 000 Behav Soc Sci Building Move Financial Services positions Total Funded $450, 000 -$412, 000 $720, 000
What Did We Fund? Divisional Changes FY 06 -07 University Advancement Reductions Web designer Web Content Manager Total Funded $40, 000 $50, 000 $0 $90, 000
What Did We Fund? Divisional Changes FY 06 -07 President’s Division KHSU operating expense President’s operating expense Total Reductions -$10, 000 Funded -$40, 000 -$50, 000 $0
What Did We Fund? Divisional Changes Total FY 06 -07 All University Obligations University Reserve Reduction Total Reductions Funded -$22, 400 $0
How Do We Use Our Money? Recap Mandatory Costs $4, 288, 875 Net State Fund Increase $2, 443, 321 Net Funds Available $1, 845, 554 Net reallocations Budget Shortfall $134, 600 $1, 980, 154
One-time Funds to Mitigate Budget Reduction Extended Ed funds $730, 708 Interest earnings $100, 730 *BSS new space funds $500, 000 CMS Loan repayment $648, 716 Total $1, 980, 154 *Note that using BSS new space funds represents an additional reduction to Administrative Affairs
Additional Slide Added Post Presentation Divisional Comparison FY 0506 Original Budget, FY 0506 Revised Budget, and FY 0607 Budget Division President FY 0506 FY 0607 Original Budget Revised Budget $1, 313, 516 $1, 617, 638 $1, 452, 976 1, 376, 686 1, 793, 164 1, 669, 288 Academic Affairs 49, 312, 284 52, 779, 049 52, 424, 576 Administrative Affairs 10, 239, 378 11, 034, 568 11, 912, 468 Student Affairs 10, 824, 065 12, 158, 172 11, 738, 785 General University Exp 17, 394, 723 11, 569, 396 13, 005, 881 $90, 460, 652 $90, 951, 987 $92, 203, 973 University Advancement Total Note “FY 0607 Budget” includes salary increase, but does not include the one-time funding “Actual Net Changes” from slide 12.
HSU New This Year • HSU is now operating from a local trust fund – HM 500 • No more frenzied year end spending – the state will not require us to spend balances to zero • Cash flow has become very important to manage on our campus – Centralized investment of revenue – Centralized banking – depository and disbursement banks • HSU Pro. Card for non-travel purchases • First year for Western Undergraduate Exchange (WUE) Students C
Next Steps • Use this year to determine how to reduce our budget permanently to meet our revenue • Re-evaluate spending based on input from former President Bob Maxson • Compare our spending patterns to other, similarly-sized CSU campuses • UBC will reevaluate University Budget Committee Structure and Budget Policy and recommend changes • We all must work to retain and recruit more students • Save your money - we’ll need it next year
Questions? See this presentation at: www. humboldt. edu/~budget/
- Slides: 24