Fiscal 2013 and 2014 Budget Update

Transcription

1 Fiscal 2013 and 2014 Budget Update Following House Budget Approval March 13, 2013 Institute Budget Planning and Administration Jim Kirk 1

2 Georgia Tech s Operating Budget from the Bottom Up Georgia Tech Revenue Budget Summary Original Budget Fiscal Year 2013 (millions of dollars) Major Program Area State* Other General Subtotal - General Dept Sales & Svc Auxil & Sponsored Stdnt Acts Total** Resident Instruction $204.7 $361.0 $565.6 $36.5 $387.2 $989.3 GT Research Institute (GTRI) 5.8 $68.7 $ $ Enterprise Innov Institute 7.4 $1.1 $ $ Total Educ & Genl $217.8 $430.8 $648.6 $51.7 $536.5 $0.0 $1,236.9 Auxiliary & Student Activities TOTAL BUDGET $217.8 $430.8 $648.6 $51.7 $536.5 $147.0 $1,383.9 NOTES: *$197.4 of state/ri funding is formula funding principally based on enrollment. Original budget does not reflect mid-year budget cuts: 3% permanent ($6M) and 2% one-time ($4M). **Total excludes affiliate payments on behalf of Georgia Tech. Affiliates include: GT Foundation, Athletic Association, GT Research Corporation and the Alumni Association.

3 Total Institute Revenue Recap

4 Resident Instruction Revenue Recap 4

5 Summary of GT Budget Preparation December December January Mid- to late Feb. Early March March End of March Presentation of GT priorities to Board of Regents Revenue estimates Tuition and fee recommendations to BOR Budget instructions and forms issued to campus Base budget distribution to campus units (Form 1) Colleges & other unit budget submissions to respective Office of the President executives Internal budget meetings with executives March 15 submission of Form 2 s from all A&F VP s Legislature s approval - Appropriations Act Division budget requests finalized (Form 2 and backup) 5

6 Summary of GT Budget Preparation Mid-April Early April Mid- to Late April Early May July 1 st BOR Approval of tuition, fees and budget allocations Campus budget meetings with Office of President executives and deans/division heads Executive staff decisions on internal GT priorities Allocations to units: new allocations and/or reductions Preparation by units of detailed Original Budget Submission of original budget to BOR (approval at May BOR meeting) Budget execution for new FY begins 6

7 Student to Faculty Ratio Georgia Tech s Budget Challenges Faculty growth not keeping up with enrollment Student/Faculty ratio increase 18:1 to 24.0 over 12 years Larger class sizes and fewer course sections Georgia Tech Student:Faculty Ratio Fall 1996-Fall 2012 (Actual) Source: Institutional Planning and Research (October 2012) 7

8 Georgia Tech s Budget Challenges Faculty start-up requirements currently 50/50 funding between college and Institute budgets Strain on colleges for their shares Challenge in hiring faculty stars with large commitments Minimal central Institute funding earmarked Retirements and new recruitments strain on commitments Institutional/mandatory requirements health insurance, legal and risk management, utilities, Library publishers price increases Administrative support to faculty Facility expansion to meet enrollment and research requirements Lack of adequate state support for facilities Market challenges hiring and retaining faculty and staff Continued quality of student services with growing enrollment 8

9 FY13 Budget Update Revenue New formula funding $6.8M New funding approximates permanent 3% reduction in Governor s Amended FY13 budget of $5.9M $99.4M of state reductions, or 35% since FY09 Additional 2% one-time reduction of $3.8M for GT GT budget built to absorb both reductions centrally; no current plans to pass reductions on to campus units Increased enrollment and accompanying tuition revenue provides all new FY13 revenue Indirect cost (F&A) revenue not meeting budget offset by increased tuition 9

10 FY13 Budget Update Expenditures Principal funding priorities: Mandatory cost increases: Leases, police officers, High Performance Computing, child care center, state insurance increases, legal and risk management, publishers price increases, utilities Instruction: New faculty lines Faculty start-up costs Teaching support to address freshman enrollment Targeted faculty recruitment Compensation: Faculty promotion and tenure Retention and salary compression pool for faculty JCCS/classified staff adjustments for critical contributors and retention (TBD) 10

11 FY14 Revenue Outlook No state funding for merit increases Continuation of permanent 3% cut from FY13 Formula funding for enrollment recommended by Governor For GT, new formula $ approximately = 3% reduction Formula funding for facilities NOT recommended Clough Commons facilities costs not funded MRR (Major Repairs and Renovation) funded as recommended Indirect Cost/F&A Recoveries estimated continued decline Tuition and mandatory fees expected minimal increase to be approved by BOR 3-6% maximum tuition increase expected (9% requested) Continuation of $544 Institutional Fee 11

12 12

13 Budget Allocations per House Budget Appropriations Bill Concurrence with Governor: Funding of fringe benefit cost increases health insurance and retirement State funding to replace GT debt service payback ($2.1M) 3% permanent reduction to Resident Instruction and GTRI Formula funding increase for enrollment (slightly more than Governor) No formula funding for facilities M&O Full Major Repair and Renovation funding Differences from Governor s recommendations affecting GT: Additional reduction for Enterprise Innovation Institute ($106K) to bring EI 2 reduction to 3% Equipment funding for Engineered Biosystems Building ($5M) Small project funding for Chapin Building renovation ($1.875M) 13

14 Questions? Budget Forms and Instructions: Information BA/OB Budget 14