University Leadership Presenta1on February 18, 2014 BUDGET 101

Transcription

1 University Leadership Presenta1on February 18, 2014 BUDGET 101

2 What is a Budget? Annual Opera1ng Budget- Fiscal plan of opera1on including an es1mate of proposed expenditures and the means to fund them.

3 Components of Budget K- State budget divided into three subagencies (by statute) Main Campus (Includes Salina and Olathe) Veterinary Medical Center Research and Extension (Extension Systems and Agriculture Research Programs) Why? BeAer comparison to Regent s insctucons and peers

4 What expenditures are budgeted? Salaries and Fringe Benefits Unclassified Faculty and Unclassified Professionals Classified State Civil Service PosiCons (changing to University Support Staff FY 15) Students

5 What expenditures are budgeted? OOE - Other Opera1ng Expenditures: Non- salary items such as classroom materials, travel, office supplies, maintenance expenses, office equipment, souware, etc.

6 FISCAL YEAR 2014 GENERAL USE BUDGET (millions of dollars) S&W OOE TOTAL Main Campus $221.7 $ Vet. Med. Center Research & Exten Grand Total $297.6 $86.9 $384.5 Pct. of Total 77% 23% 100%

7 What is NOT in the operacng budget? Debt Service Principal and interest payments (Some central OOE pool lines used for DS) Capital Improvements New building construccon Repair of buildings (Included in the capital improvement budget)

8 What is NOT in the operacng budget? Affiliated Corpora1ons Controlled KSU Research FoundaCon K- State AthleCcs Local Agency K- State Union CorporaCon Local Agency K- State Olathe InnovaCon Campus, Inc. KSU Veterinary Clinical Outreach, Inc. K- State DiagnosCc and AnalyCcal Services KSU InsCtute for CommercializaCon Teachers and Employees AssociaCon of KSU Non- Controlled KSU Alumni AssociaCon KSU FoundaCon Kansas Crop Improvement Student PublicaCons, Inc. Local Agency (Budget may include revenues that reimburse K- State expenditures)

9 FY 2014 BUDGET BY FUND Fund Source Millions State Appropria1ons (Main Campus, R & E, Vet Med) $ Student Tui1on (Main Campus, Vet Med) Hospital & Diagnos1c Lab (Vet Med) 6.0 Federal Land Grant Funds (R & E) 9.1 GiUs, Grants, & Contracts Auxiliary Enterprises (Housing, Lafene) 43.0 Service Clearing (Charge backs Facili1es, Telecom) 25.4 Local Agencies (Athle1cs, Union, Student Publica1ons) 51.2 Grand Total $781.7 GU $384.5 RU $397.2

10 K-State s FY 2014 Operating Budget (Revenue Shown in Millions)

11 Budget Funds General Use Funds (GU) - Funds allocated to departments comprised of: State General Fund (SGF) - State funds appropriated by the Legislature General Fees - Student Tui1on Veterinary Health Center Revenue Federal Land- Grant Funds

12 Budget Funds Restricted Use Funds (RU)- revenue dedicated for specific purposes, i.e., grants and contracts, giu income, sales and service, indirect cost recovery (SRO), auxiliary, local agency and service clearing.

13 How is the opera1ng budget developed each year? Legisla1ve Budget Cycle University Budget Process

14 LegislaCve Budget Cycle Kansas Board of Regents develops and submits the system- wide request K- State submits priority budget enhancements June Discussion between KBOR and KSU President August KBOR approves budget enhancements - September KSU Budget request is submiaed to Division of Budget September 15 th

15 LegislaCve Budget Cycle Division of Budget submits recommendacons to Governor November Governor delivers budget recommendacons to the Legislature January Legislature makes final budget recommendacons. May (usually)

16 LegislaCve Budget Cycle Board of Regents determines K- State s operacng grant increase (SGF) if one is appropriated. June Board of Regents approves the following fall s tuicon rate increase. June

17 University Budget Process (In transicon) President Schulz created the University Budget Advisory CommiAee VP Admin & Finance develops three year funding model Mandated expenses (benefit rate adjustments) Handbook increases President commitments (3- year salary plan)

18 University Budget Process (In transicon) TuiCon Strategies CommiAee Review Begin meecng late November early December Review of 3- year expense plan focus on first year Discussion of any fee proposals submiaed Develop recommendacon to President/Univ Bud CommiAee Unit Heads submit enhancement funding requests

19 University Budget Advisory CommiAee develops recommendacon for President April TuiCon plan is submiaed to Board of Regents May first reading Budget allocacons are submiaed to units May University Budget Process (In transicon)

20 K- State 2025 KANSAS STATE UNIVERSITY - MAIN CAMPUS AND ESARP 1) ADMINISTRATION AND FINANCE FY LEGISLATIVE BUDGETS DRAFT AS OF: February 14, 2014 FY 2015 Est. Budget As Appropriated FY 2015 Est. Governor Budget FY 2015 Est. Senate Budget FY 2015 Est. House Budget Annual Commitments Base Maintenance Items 5 Merit Salary Increases (2%) $ 8,154,000 $ 8,154,000 $ 8,154,000 $ 8,154,000 5 University Support Staff Salary Increase (2%) $ 702,565 $ 702,565 $ 702,565 $ 702,565 5 Targeted Faculty Salary Enhancements (125, 150, 175) $ 800,000 $ 800,000 $ 800,000 $ 800,000 5 Faculty Promotions $ 885,000 $ 885,000 $ 885,000 $ 885,000 5 Backfill 5-Year Promotions $ 500,000 $ 500,000 $ 500,000 $ 500,000 5 Fringe Benefit Increase MC and ESARP including GHI incr, longevity plus KPERS $ 50,000 $ 50,000 $ 50,000 $ 50,000 2 Institutional Scholarships $ 1,328,000 $ 1,328,000 $ 1,328,000 $ 1,328,000 6 Utilities Infrastructure $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 2,3,5 Instructional Fees/GTA Waiver Increase (5% Increase) $ 445,500 $ 445,500 $ 445,500 $ 445,500 5 New Faculty Positions $ 599,604 $ 599,604 $ 599,604 $ 599,604 1,5 Base funding support for academic unclassified professionals $ 263,861 $ 263,861 $ 263,861 $ 263,861 5 Cover State Reduction FY 15 and Human Capital - FY 2015, 2016, 2017 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 2 Student-Centered Tuition Enhancements 2) $ 141,600 $ 141,600 $ 141,600 $ 141,600 1,5 Security Studies Replacement of Grant Funds (faculty in History and Political Science) $ 400,000 $ 400,000 $ 400,000 $ 400,000 1 Pre-Award Services Support $ 50,000 $ 50,000 $ 50,000 $ 50,000 2,3 Student Services Support $ 132,900 $ 132,900 $ 132,900 $ 132,900 4 Alumni Database $ 85,000 $ 85,000 $ 85,000 $ 85,000 6 Academic Building Support $ 360,000 $ 360,000 $ 360,000 $ 360,000 Subtotal Base Budget Allocations $ 16,898,030 $ 16,898,030 $ 16,898,030 $ 16,898,030 Funding Sources Internal Reallocation 2) $ 6,350,381 $ 3,734,133 $ 6,350,381 $ 6,350,381 Tuition Rate Increase (5%,5%,5%/year) $ 8,100,000 $ 8,100,000 $ 8,100,000 $ 8,100,000 State Funding (As appropriated during 2013 legislative session) $ 1,447,649 $ 1,447,649 $ 1,447,649 $ 1,447,649 Legislative Adjustments (Governor - Restored Salary Cap Reduction) $ 2,616,248 Enrollment growth projections $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 Subtotal Funding Sources $ 16,898,030 $ 16,898,030 $ 16,898,030 $ 16,898,030 Annual Change to Base Excess (Deficit) Revenue $ - $ - $ - $ - 1) Includes Research and Extension and excludes K-State Salina and Veterinary Medicine 2) SCTE allocations - Educ Opportunity Fund - $25k with $350k transferred from SCTE funds; LGBT - $73,600; and Veteran's Center - $43,600 3) 1% internal reallocation - $2,465,000 2% internal reallocation - $4,931,000

21 K- State 2025 KANSAS STATE UNIVERSITY - MAIN CAMPUS AND ESARP 1) ADMINISTRATION AND FINANCE FY FY 2017 PLANNING BUDGETS DRAFT AS OF: February 17, 2014 FY 2015 Est. Base Budget Best Case Annual Commitments Base Maintenance Items FY 2016 Est. Base Budget FY 2017 Est. Base Budget 5 Merit Salary Increases (2%) $ 8,154,000 $ 4,200,000 $ 4,300,000 5 University Support Staff Salary Increase (2%) $ 702,565 $ 722,535 $ 743,015 5 Targeted Faculty Salary Enhancements (125, 150, 175) $ 800,000 $ 535,500 $ 624,750 5 Faculty Promotions $ 885,000 $ 900,000 $ 927,000 5 Backfill 5-Year Promotions $ 500,000 $ 500,000 $ - 5 Fringe Benefit Increase MC and ESARP including GHI incr, longevity plus KPERS $ 50,000 $ 2,000,000 $ 1,250,000 2 Institutional Scholarships $ 1,328,000 $ 1,168,000 $ 1,000,000 6 Utilities Infrastructure $ 1,000,000 $ 1,000,000 $ 500,000 2,3,5 Instructional Fees/GTA Waiver Increase (5% Increase) $ 445,500 $ 468,000 $ 491,000 5 New Faculty Positions $ 599,604 $ 1,000,000 $ 1,000,000 1,5 Base funding support for academic unclassified professionals $ 263,861 $ - $ - 5 Cover State Reduction FY 15 and Human Capital - FY 2015, 2016, 2017 $ 1,000,000 $ 500,000 $ - 2 Student-Centered Tuition Enhancements 2) $ 141,600 $ - $ - 1,5 Security Studies replacement of grant funds (faculty in History and Political Science) $ 400,000 $ 400,000 $ - 1 Pre-Award Research Services Support $ 50,000 $ - $ - 2,3 Student Services Support $ 132,900 $ - $ - 4 Alumni database $ 85,000 $ - $ - 6 Academic Building Support $ 360,000 $ 1,450,000 $ - Subtotal Base Budget Allocations $ 16,898,030 $ 14,844,035 $ 10,835,765 Funding Sources Internal Reallocation 3) $ 3,734,133 $ 5,444,035 $ 1,035,765 Tuition Rate Increase (5%,5%,5%/year) $ 8,100,000 $ 8,400,000 $ 8,800,000 State Funding (As appropriated during 2013 legislative session) $ 1,447,649 $ - $ - Legislative Adjustments (Governor - Restored Salary Cap Reduction) $ 2,616,248 $ - $ - Enrollment growth projections $ 1,000,000 $ 1,000,000 $ 1,000,000 Subtotal Funding Sources $ 16,898,030 $ 14,844,035 $ 10,835,765 Annual Change to Base Excess (Deficit) Revenue $ - $ - $ - 1) Includes Research and Extension and excludes K-State Salina and Veterinary Medicine 2) SCTE allocations - Educ Opportunity Fund - $25k with $350k transferred from SCTE funds; LGBT - $73,600; and Veteran's Center - $43,600 3) 1% internal reallocation of general use base budget - $2,465,000 2% internal reallocation of general use base budget - $4,931,000

22 That s the budget in a nut shell.any quescons?