Table of Contents. Operating Budget Introduction Biennial Operating Budget Overview... 3

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1 EASTERN WASHINGTON UNIVERSITY OPERATING & CAPITAL BUDGETS FISCAL YEAR 2005

2 Table of Contents Operating Budget... 1 Introduction... 1 Biennial Operating Budget Overview Biennial Operating Revenue by Fund Source... 4 Recommended Fiscal Year 2005 Operating Budget... 5 Educational and General Operations... 5 General Fund State (Fund 001)... 5 Tuition Operating Fees (Fund 149)... 5 Student Tuition Rates... 5 Student Tuition Revenue and Projected Enrollments... 6 Student Tuition Waivers... 6 Operating Fee Revenue Fund... 8 Dedicated Local Fund (Fund 148)... 8 Service Funds (Funds 4XX)... 9 Stores Operations Printing and Duplicating Workforce Construction University Telecommunication Services Motor Pool Auxiliary Enterprises Service and Activity Fee Revenues/Associated Students EWU Activities Intercollegiate Athletics Bookstore Pence Union Building Parking Services Housing and Dining Scholarships and Fellowships Sponsored Programs Grants and Contracts Recommended Operating Budget Action Capital Budget Introduction i

3 Table of Contents Overview Recommended Capital Budget Action Appendix... A Summary of Revenues, Expenditures, and Transfers...A Revenues and Transfers Summary...B Expenditures and Transfers Summary...C Academic Year Tuition and Fees... D Academic Year Enrollment...E General Information...F Summary of Auxiliary Enterprise and Service Funds... G Auxiliary Enterprises... H Service Funds...I Fund Transfers FY J Fund Transfers FY K Performance and Accountability Goals... L ii

4 Operating Budget EASTERN WASHINGTON UNIVERSITY OPERATING AND CAPITAL BUDGET REQUEST FISCAL YEAR 2005 Introduction Operating Budget The operating budget cycle for Eastern Washington University is both annual and biennial in nature. The State of Washington provides operating resources to the university through a biennial legislative appropriations process with annual supplemental appropriations in the second year of each biennium. The State legislature also sets the maximum increases on resident undergraduate student tuition rates. Eastern collects tuition from the students and budgets the revenue locally. The State appropriation and student tuition are the major sources of funding for Eastern s operating budget. Other resources include dedicated local funds, service funds, auxiliary funds, scholarship and fellowship funds, and sponsored research funds. These other resources are budgeted on an annual basis. The first section, Operating Overview, presents an overview of the biennial operating budget, including a summary of the fiscal details of the biennial operating budget. This section also includes budget changes followed by a summary of the provisos and restrictions on uses of funds, as required. The second section, Operating Budget, presents the recommended annual operating budget for the first year of the biennium. The operating budget section contains descriptions and highlights of the four major budget categories: Educational and General Operations, Auxiliary Enterprises, Scholarships and Fellowships, and Sponsored Programs. Educational and General Operations Educational and General Operations consists of the general fund state appropriations, tuition operating fees, dedicated local funds, and the service activity funds. This budget supports the activities and services that are intrinsic to the university, including teaching, research, student services, libraries, administration, and maintenance of the campus physical plant. Auxiliary Enterprises Auxiliary Enterprises includes services that are essential to the support of the university s academic programs. Each enterprise is designed to generate sufficient revenue to cover the cost of its operating and capital needs. 1

5 Operating Budget Scholarships and Fellowships Scholarships and Fellowships reflects the student aid programs, federal and state aid programs, and privately endowed scholarships. This category handles transactions of student assistance programs for which recipients of the awards must meet the qualifications specified by sponsoring agencies, but the recipient is not required to repay the award. Sponsored Programs Grants and Contracts Sponsored Programs Grants and Contracts includes restricted grants and contracts with various federal, state, and local governmental agencies and private organizations. Each grant or contract is for a specific program or project, and functions associated with the award must be performed in accordance with conditions of agreement with the sponsoring agencies. 2

6 Operating Budget Biennial Operating Budget Overview Biennial Operating Budget A recap of significant changes that led to Eastern Washington University s legislatively authorized operating budget for the second fiscal year of the biennium follows: 2004 Supplemental Legislative Session Salary Increase The legislature did not provide for a cost of living increase for employees in FY2005. Enrollment Increase The 2004 legislature authorized $437,000 for 78 additional enrollments for Eastern in FY2005. Health Benefit Rate Increase The 2003 legislature provided funding to cover the increase in health benefit rates from $ to $ per month in FY2005. Recruitment and Retention The 2003 legislature provided $255,000 in FY2005 for competitive salary adjustments or offers to attract and retain quality faculty and staff. Facility Maintenance and Operations The 2003 legislature provided $278,000 in FY2005 for maintenance and operations of Computing and Engineering Sciences building and Senior Hall new square footage. 3

7 Operating Budget Biennial Operating Revenue by Fund Source Fund Source % of % of % of Biennium Total FY 2004 Total FY 2005 Total Educational and General Gen. Fund-State Fund 001 $84,853, % $41,648, % $43,204, % Tuition Operating Fees Fund Fund ,342, % 28,505, % 29,837, % Dedicated Local Fund Fund ,414, % 11,727, % 14,687, % Service Funds (net of recharges) *Funds 4XX 192, % 97, % 94, % Subtotal 169,801, % 81,978, % 87,823, % Auxiliary Enterprises *Funds 5XX 51,591, % 25,344, % 26,247, % Scholarships & Fellowships Fund ,025, % 18,400, % 19,625, % Sponsored Programs Fund ,025, % 13,219, % 13,806, % Total $286,443, % $138,941, % $147,501, % *Funds 4XX include 440, 446, 447, 448, 450, 455 and 460. Funds 5XX include 521, 522, 523, 524, 570, 571, 572 and

8 Education and General Recommended Fiscal Year 2005 Operating Budget This section of the budget presentation provides clarification of the four major categories of expenditures and revenue by which the university s operating budget is developed: Educational and General Operations; Auxiliary Enterprises; Scholarships and Fellowships; and Sponsored Programs. Additionally, it provides an overview of programs and services that the University will offer in the 2005 fiscal year. The requested budgets listed are for expenditure authority. Educational and General Operations The 2005 fiscal year operating budget for educational and general operations is recommended at $88,019,879 or approximately 59.7% of the total university budget. The first two components of the Educational and General budget are the general fund state budget that is provided by the legislature and the operating fee tuition revenue collected from students. General Fund State (Fund 001) Eastern s legislatively authorized and state funded enrollment level for fiscal year 2005 was 8,228 full-time equivalent students (FTES). The 2004 legislature funded 78 additional enrollments in fiscal year Requested Budget FY 2005 $ $43,204,200 Tuition Operating Fees (Fund 149) The operating budget authorized institutions to increase tuition fee rates for FY2005 by up to 7% over the academic year 2004 rates for the resident undergraduate student feepaying category, with no upper limit restriction for the other fee paying categories. For fiscal year 2005 the budget is built on an increase of 7% in tuition and fees for undergraduate fee-paying categories. The table below compares the tuition rates for academic years 2004 and Student Tuition Rates Academic Year Academic Year Percent Student Category Increase Resident Undergraduate $ 3,582 $ 3, % Resident Graduate 5,772 5, % Nonresident Undergraduate 12,438 13, % Nonresident Graduate 17,085 17, % 5

9 Education and General The operating fee revenue estimate is based on the tuition rates in each of the student feepaying categories previously listed. Although the legislatively budgeted enrollment level for Eastern is 8,228 FTES, Eastern plans to over-enroll by 622 FTES for an estimated enrollment level of 8,850 FTES. The following table shows the estimated gross tuition revenue by feepaying category for the 2005 Fiscal Year. Student Tuition Revenue and Projected Enrollments Student Category % of Total Student Headcount Revenue Resident Undergraduate 81.1% $ 23,324,068 Resident Graduate 8.6% 3,424,019 Nonresident Undergraduate - Domestic 7.6% 8,435,537 Nonresident Undergraduate - International 1.3% 1,383,331 Nonresident Graduate - Domestic 1.2% 1,672,102 Nonresident Graduate - International 0.2% 261,625 Gross Operating Fee Revenue 100.0% $ 38,500,682 The legislature has given Eastern the authority, in RCW 28B and RCW 28B , to provide students with operating fee waivers. In FY2005, the waiver allocations totaling $ 6,930,096 will be used to reduce tuition costs for over 1,000 full-time equivalent students. These waivers reduce the net operating fee revenue that can be allocated as Eastern s operating budget. Student Tuition Waivers Eastern Washington University provides various types of student tuition waivers to help meet the financial needs of its students. Resident/Nonresident Graduate Appointments: An academic department or program may recommend students of outstanding promise for a Graduate Service Appointment (GSA). GSAs are awarded on a competitive basis for a waiver of part or all of the student s tuition. WICHE Waivers: The Western Interstate Commission for Higher Education (WICHE) was established to promote collaboration among member states and their colleges and universities. Qualified students from 15 western states are eligible to receive reduced tuition in select programs. At Eastern, these programs are Social Work, Creative Writing, and Physical Therapy. Reciprocity Foreign Nations: Certain students of foreign nations may be exempt from paying all or a portion of their tuition. Such waivers promote reciprocal placements and waivers in foreign nations for Washington Residents. 6

10 Education and General Reciprocity Oregon, Idaho, and B.C.: Similarly, EWU provides tuition waivers to qualifying students from Oregon, Idaho, and British Columbia. Veterans Waivers: Eastern provides waivers to qualifying veterans of the Persian Gulf combat zone and veterans of the Vietnam conflict. Gender Equity: Eastern grants a number of tuition waivers to athletes in order to achieve or maintain gender equity in intercollegiate athletic programs. Washington Scholars Program: Washington Scholar award recipients receive a tuition and fee waiver for twelve quarters of academic study at Eastern. State Need-Based Tuition Waivers: Washington state residents identified as needy by the Free Application for Federal Student Aid (FAFSA) may be eligible for tuition waivers. Western Undergraduate Exchange: Through the WUE program Eastern may waive student tuition down to 150 percent of the resident rate. Additional Waiver Authority: In addition to the waiver authority granted under RCW 28B , waiver authority is granted under RCW 28B to waive all or a portion of the operating fees for any student. Estimated Allocation of Tuition Waivers $ 6,930,096 7

11 Education and General The gross operating fee revenue is also reduced by the legislated 3.5% Financial Aid/EWU Need Grant fund. Adjustments to the gross revenue estimate include a 1.2% uncollectible allowance rate and estimated interest earnings. The following chart summarizes the reductions to the gross operating fee revenue. The net, after additions and reductions, becomes the available funds for this portion of Eastern s operating budget. Operating Fee Revenue Fund Gross Operating Fee Revenue $ 38,500,682 Less: 14% Tuition Waivers (5,390,073) 3.5% EWU Financial Aid (1,142,695) Uncollectible Allowance (462,006) Plus: Interest Income 115,000 Subtotal Operating Fee Revenue $ 31,620,908 Less: Fund Balance - Additional Waiver Authority $ (1,290,023) Waivers for Scholarships - Investment in Quality (250,000) Addition to EWU Financial Aid (243,885) Operating Tuition Fee Revenue $ 29,837,000 Requested Budget FY 2005 $29,837,000 The legislatively authorized general fund state allocation of $$43,204,200 and the operating fee (tuition) revenue of $ 29,837,000 combine to form the major portion of the operating budgets for Eastern s principle operating units, including Academic Affairs, Student Affairs, Business and Finance, University Advancement and the President s unit. Dedicated Local Fund (Fund 148) The dedicated local fund is the third component of the Educational and General Operations budget and was established within the University to provide educational programs that support the mission of the University but that are not directly funded by the Washington State Legislature. The expenditure budget for the dedicated local fund is based on an estimated level of revenues. If revenues exceed projections, additional expenditure authority is granted up to the amount of over-realized revenues. Some of the programs in this fund include course fees, Summer Session, Running Start, International Field Studies, Study Abroad, University Press, and other continuing education courses. 8

12 Education and General The Summer Session program is the major contributor to this fund. Its operating budget for the fiscal year 2005 instructional session is $ 2,867,650 with an anticipated enrollment of over 3,000 students. Requested Budget FY 2005 $ 15,158,875 Service Funds (Funds 4XX) The service activities or internal revolving funds are the fourth and final component of the Educational and General Operations budget. The function of this category of the University s budget is primarily to provide goods and services for other university functions. The $4,020,424 recharges recorded by the service funds are dollars approved as part of the four major operating expenditure categories. The FY 2005 expenditure budget for the service funds is recommended at $3,840,228. The expenditure budgets for the service funds are based on an estimated level of revenues and utilization of selected fund balances. If revenues exceed projections, additional expenditure authority is granted up to the amount of over-realized revenues. Actual transfers for plant renewal and replacement may meet or exceed anticipated transfers. A description of the service fund activities follows. 9

13 Education and General Stores Operations Stores Operations provides a vital support function and service to the Physical Plant and the general university community. This unit provides the Physical Plant with a means for the prevention of stock duplication. Stores Operations stocks a variety of materials and supplies for routine plant use, regular and preventive maintenance parts, and custodial supplies. Stores Operations and the Physical Plant have completed a conversion to an enhanced software program for the management of work orders/service orders, inventory control, and purchasing functions. The result is faster procurement time for materials, better fund accountability, and readily available financial data for planning purposes. Revenues/Recharges $109,500 Expenditures $ 66,918 Printing and Duplicating The Printing and Duplicating operation provides efficient typesetting, quality printing, bindery, copying and pre-press services for on and off-campus custom printing, along with external print coordination for the university community and its partners. During fiscal year 2004, the Print Shop successfully moved to their new home in Tawanka. The expanded space will allow the operation to focus on additional student services including a self-service copy and computer use area during fiscal year In addition, the Print Shop intends to begin carrying some retail paper products and customized print items. Revenues/Recharges $ 580,000 Expenditures/Deductions $ 566,993 Workforce Construction The Workforce Construction functions consist of Architectural, Engineering and Construction Services, Architectural Engineering and Housing Services, Construction Workforce, Construction Workforce Asbestos, Auto Shop and Plant Stores operations. The goals for fiscal year 2005 are to continue to support major capital projects as well as implement in-house construction projects that support the mission of the university. During fiscal year 2005, Workforce Construction will provide comprehensive planning and construction, sustain effective partnerships with other university departments, and work with university constituents to implement appropriate stewardship of capital resources. The fund consistently invests available resources in the facilities of the university and provides 10

14 Education and General professionally trained and dedicated staff support to make high quality and cost effective solutions a reality. Revenues/Recharges $ 2,334,450 Expenditures $ 2,134,162 University Telecommunication Services University Computing and Telecommunications provides local and long-distance telephone and voice mail services through two private telephone switches owned by the university. One telephone switch is located on the Cheney campus and the other is located at the Spokane Center. In addition, local telephone, long distance, and voice mail services are provided to students living in the residence halls. The level of telecommunication services currently provided will not change substantially in FY2005. Presently, 2,000 of our phones are working on equipment not supported by any vendor and we are dependent on the secondary market (used components) for replacement parts. Therefore, we will move ahead to replace the aging switch in FY2005. Revenues/Recharges $ 898,374 Expenditures/Deductions $ 894,843 Motor Pool The Motor Pool is a self-supporting entity funded by receipts generated by vehicle rentals. This service function is designed to ensure that rental vehicles are available to meet the shortterm transportation needs of the various University departments and organizations. The Motor Pool maintains a fleet of 14 vehicles. In FY2005, Motor Pool will continue to evaluate and improve transportation services and provide academic and administrative departments with better services and motor vehicles that are more desirable. The fund will be evaluating replacement of the existing fleet with newer used vehicles through local GSA Auto Auctions. These vehicles are maintained well and serve customer needs at a fraction of the cost of brand new vehicles. Revenues/Recharges $ 192,500 Expenditures $ 177,312 11

15 Auxiliary Enterprises Auxiliary Enterprises Auxiliary Enterprises is the next major budget category within Eastern s operating budget. It provides essential elements of support to the University s academic programs. The 2005 fiscal year expenditure budget, including deductions, for the combined auxiliary enterprises is recommended at $26,032,359 or 17.7% of the total University budget. The expenditure budgets for the auxiliary funds are based on an estimated level of revenues and utilization of selected fund balances. If revenues exceed projections, additional expenditure authority is granted up to the amount of over-realized revenues. Actual transfers for plant renewal and replacement may meet or exceed anticipated transfers. The enterprises are briefly described in the following pages. 12

16 Auxiliary Enterprises Service and Activity Fee Revenues/Associated Students EWU Activities The ASEWU-Activities includes the operation of student government and provides funds for concerts, social activities, campus recreation, commuting services, student publications such as The Easterner, clubs and organizations, and other associated student-sponsored activities. Additionally, it supports programs such as band, art galleries, theatre, choral activities, athletics, and childcare. The Associated Student budget for FY2005 will be used to continue to meet the needs of all students, including funds for clubs and organizations, expanded social activities, outdoor programs, operations of the Associated Student government, and student newspaper. Criteria to evaluate the budget proposals for the individual clubs/organizations and programs include direct services to students, member participation, fund raising, and campus involvement. With the growing interest in Club Sports on our campus, the Associated Students have allocated money from increasing enrollments to Club Sports including baseball, fast-pitch softball, ice hockey, soccer, tae kwon do, and volleyball for fiscal year The Social Activities budget covers the majority of the extra-curricular activities for students. Social Activities, one of the largest of the ASEWU budgets, funds the major concerts, special events, lectures, dances, film, entertainment, and educational programs on Eastern s campus. Also funded within the Social Activities budget are expenses for the Eagle Entertainment leadership group and the student organization responsible for the implementation of the campus activities. Across the broad range of activities from a successful athletic program, to quality fine arts, to a wide variety of student activities the Associated Student leadership is confident that this proposal embodies the best possible use of the available funds. The improving quality and increased number of services and activities parallel the expanding wants and needs of the students of Eastern Washington University. Funding for this activity is provided from student service and activity fees and a fund addition from the Pence Union Building fund. The fund deductions in fiscal year 2005 cover the debt service on the series 1993 Service & Activity fee revenue bonds. Revenues/Additions $ 2,241,413 Expenditures/Deductions $ 2,333,563 13

17 Auxiliary Enterprises Intercollegiate Athletics Intercollegiate Athletics generates the local funding support for the operations of the intercollegiate athletics program. This fund includes program support costs, travel, and scholarships that are granted to student participants based on their athletic ability. Revenue sources for this function include gate receipts, guarantees, advertisement and promotion, corporate sponsors, concessions, donations and investment income, as well as an allocation of student service and activities fees. Plans for FY2005 include continued implementation of the gender equity plan, increasing contributions to the Eagle Athletic Association, increasing corporate sponsorships, and increase gate revenues/attendance at home athletic contests. In addition, Eastern Athletics will continue to seek operational efficiencies in travel and support operations. In support of the success of our student athletes, Eastern Athletics will continue to monitor and enhance academic support programs. Revenue/Additions $ 3,341,420 Expenditures/Deductions $ 3,341,420 Bookstore The Bookstore, located in the Pence Union Building, serves the students needs for textbooks, supplies, computer hardware and accessories, and insignia items. The Bookstore staff provides the best possible service to their customers and creates a pleasant shopping environment for all. The primary objective is to market academic and nonacademic books and supplies at the lowest possible price while maintaining a financially sound and stable operation. The Bookstore s computer department offers technical sales assistance with Apple and PC computers. Customer Services, located in the Bookstore, sells tickets to university events, prepaid phone cards, and other items. They also offer gift-wrapping and photo development. The Bookstore also operates a Spokane store located in the basement of the university s Spokane Center facility at First and Wall and a store at Brewster Hall in Cheney. The requested fund deductions will go to a reserve for future Bookstore needs. Revenues $ 6,867,264 Expenditures/Deductions $ 6,763,447 14

18 Auxiliary Enterprises Pence Union Building The Pence Union Building (PUB) provides a central gathering place that serves as the hub of college life for the University. It provides services, conveniences, and amenities that the members of the university community need. The PUB also provides a venue for communitybuilding and the strengthening of relationships through informal association outside the classroom. The Pence Union Building provides space for informal recreational activities, formal meetings and events, and student clubs and organizational meetings. The PUB houses the University Bookstore, university writing lab, computer facilities lab, and food facilities including Baldy s, The Deli, Eagle Espresso, and Eagle Shop. It also has a game room, travel agency, hair salon, and a variety of private vendors. During FY2005, remodeling is scheduled for the original portion of the PUB. The remodeling will take place during the summer and fall of 2004 and will involve the Student Lounge, Associated Students offices, and Student Life offices. The PUB operates as an auxiliary enterprise and receives much of its revenues from rental fees. The fund deduction provides operating dollars to the associated student fund and transfers funding for minor capital improvements to a reserve fund. Revenues/Additions $ 897,185 Expenditures/Deductions $ 887,657 Parking Services Parking Services provides for the parking on campus, and promotes safety and customer service to faculty, staff, students, and visitors alike. Revenues are generated through the sale of parking permits as well as by parking meters, special events fees, and the assessment of parking fines and infractions. This service includes the management of 20 permit lots on campus. In FY2004, the Eagle Access program was implemented providing cost free transportation on Spokane Transit Authority busses to all students, faculty, and employees of EWU. As a result, ridership on STA increased by approximately 40% over the previous year. The intention is to continue this program for FY2005. Revenues $ 580,000 Expenditures $ 580,000 15

19 Auxiliary Enterprises Housing and Dining The Housing and Dining department provides room, board, and event planning services for students, staff, and visitors of the University. The goal of this department is to provide a safe, pleasant, and well-maintained environment that supports the educational, personal, and social growth of all residents. The accomplishment of this goal will enhance student recruitment and retention while generating sufficient revenues to meet all operating costs, debt service, and capital requirements. An annual fund deduction covers the debt service on the housing bond, a renewal and replacement fund, and various minor capital projects. Housing In FY2004, Housing replaced all of Streeter Hall s windows and carpeting. The project also included replacement and enhancement of the lighting and an upgrade of Streeter s fire system. Fund deductions will cover the Brewster Hall lease and mandatory payments for the 1992 Housing bonds. Improvements and upgrades will also be made in Morrison Hall during FY2005. Dining Services Dining Services maintains eight campus locations for food and beverage services. Baldy s, The Deli, Eagle Espresso, and Eagle Shop are located in the Pence Union Building. Morris Street Café is located between Morrison and Streeter Halls. Rio s, Sticks and Spoons, and Deli South are in Tawanka Commons. Through these eight locations, Dining Services is able to provide a variety of nutritional choices to our diverse student body at reasonable prices. Event Planning continues to grow with an increase in campus events and activities. The Event Planning Department provides a variety of services to the university departments, non-university organizations, and visitors. These services include planning and organizing special university events as well as arranging food service, housing, and space needs that are associated with such events. During FY2005, Dining Services intends to complete the Bakery, Espresso, and Smoothie Bar shops in Tawanka. Fund deductions will pay for residence hall furnishings, debt service on housing bonds, sinking funds on 2002 series bonds, and minor capital projects. Budget information below reflects both Housing and Dining. Revenues $ 12,320,000 Expenditures/Deductions $ 12,126,272 16

20 Scholarships and Fellowships Scholarships and Fellowships For FY 2005, this budget category totals $19,625,000 or 13.3% of the university budget as a whole. Student aid programs are funded through federal and state aid programs and through privately endowed scholarships. The purpose of this function is to handle the transactions of student assistance programs requiring no student repayment. Recipients of these awards must meet program qualifications as specified by sponsoring agencies. Federal financial aid includes the PELL Grant and the Supplemental Educational Opportunity Grant (SEOG). The State financial aid category includes the State Need Grant, coordinated through the Higher Education Coordinating Board, and the EWU Grant, which uses most of the 3.5% loan fund as a need grant. The Private financial aid category reports the endowed scholarships awarded to students meeting specific criteria. Examples in this category include the Trustee s Scholarship, President s Scholarship, Washington Scholars, Killin Academic Scholarship, EWU Alumni Scholarship, Swartz Medical Technology Scholarship, Academic Honors Scholarship, Wittenback Trust, and many others. Requested Budget FY 2005 Federal $10,200,000 State 8,800,000 Private 625,000 Total $19,625,000 17

21 Sponsored Programs Sponsored Programs Grants and Contracts For FY2005, the sponsored program category totals $13,806,000 or 9.4% of the total university budget. Federal and state programs provide the largest source of funding for this budget; other support is provided from private organizations and local agencies. Federal funds include grants such as the Department of Education s bilingual education program and the Department of Health and Human Services Early Head Start program. The Federal Work Study funds for Eastern s students are reported in this category. State funds include the State Work Study funds for Eastern s students and grants such as the Department of Social and Health Services field practicum. Local funds include grants from the Spokane Tribe for Lake Roosevelt Studies and the State of Idaho Department of Health and Welfare. Private funds include scholarships funded through EWU Foundation and interest earned on the Washington state program for matching private gifts to create Distinguished Professorships and Fellowships. The following is a list of state matches to date: Distinguished Professorships in Business and Public Administration Distinguished Professorship in Health Care/Physical Therapy E. Clair Daniels Distinguished Professorship in Accounting Fosseen/Kusaka Distinguished Professorship--Arts and Letters Edward Johnson Distinguished Professorship--American Indian Studies Two Roland and Marian Lewis Fellowships in Education Ruth R. Gosset Memorial Fellowship in Social Work Florence and Earle Stewart Fellowship in Creative Writing Pat and Darlene McManus Fellowship in Creative Writing Reid Lab School Fellowship--Education and Human Development Herman and Jean Swartz Fellowship in Biotechnology Herman and Jean Swartz Fellowship in Nursing Carol Joy Fellowship in Music John Joy Fellowship in Natural Studies David A. and Sandra L. Sabey Undergraduate Fellowship--Business and Public Administration Lucille Christ Undergraduate Fellowship in Aging Studies J. Herman Swartz & Jean Swartz Bennett and Frances & Williams P. Werschler Fellowship in Biology Phillip D. Grub Fellowship in Music Other funds represents additional restricted funds received by a department in the form of an administrative allowance for oversight of a grant or other small contracts. Requested Budget FY 2005 Federal $7,035,000 State 2,497,000 Local 1,918,000 Private 2,097,000 Other 259,000 Total $13,806,000 18

22 Operating Budget Recommended Operating Budget Action It is recommended that the Board of Trustees approve the operating budget of $147,483,238 for FY2005, which begins July 1, 2004 and ends June 30, The operating budget is summarized as follows: Educational and General General Fund State & Tuition $ 73,041,200 Dedicated Local Funds, Service Funds 14,978,679 Total Education and General 88,019,879 Auxiliary Enterprises (incl. transfers) 26,032,359 Scholarships & Fellowships 19,625,000 Sponsored Programs 13,806,000 Total $147,483,238 Auxiliary Enterprises 18% Scholarships & Fellowships 13% Sponsored Programs 9% Educational and General 60% 19

23 Capital Budget EASTERN WASHINGTON UNIVERSITY OPERATING AND CAPITAL BUDGET REQUEST FISCAL YEAR 2005 Introduction Capital Budget The capital budget cycle for Eastern Washington University is a biennial process. The State of Washington provides capital resources to the university through a biennial legislative appropriations process with annual supplemental appropriations. The legislature authorizes the use of both state and local funds for specific capital projects and/or project categories. The State Building Construction Account and the Capital Projects Account are the major sources of funding for Eastern s capital budget. Additional capital funding comes from the Education Construction account and the Gardner Evans Bonds. Transfers to the Local Plant Fund from the auxiliary enterprise or service funds are resources used for capital improvements. State Building Construction Account (Fund 057) The State Building Construction Account within the general fund of the state treasury was established for the deposit of proceeds from the sale of state general obligation bonds, as authorized by the Legislature. Debt service is paid from the general revenue of the State. Capital Projects Account (Fund 061) The Capital Projects Account has two major sources of revenue: the Normal School Permanent Fund and Building Fees. Normal School Permanent Fund The United States federal government gave land to the State of Washington for the support of the state normal schools, more commonly known as Eastern Washington University, Central Washington University, Western Washington University, and the Evergreen State College. Over the years, approximately 36,000 acres were sold by the state and the proceeds deposited in the Normal School Permanent Fund. The principal in the normal school permanent fund is regularly invested by the state Investment Board. 20

24 Capital Budget The investment income is distributed to the four institutions by way of this Capital Projects Account. Also deposited to this account is revenue from timber sales. Building Fees Tuition and fees paid by Eastern students are comprised of three fees: Operating, Student Service and Activity, and Building. The Building Fee is deposited into the Capital Projects Account. Education Construction Account (Fund 253) The Education Construction Account consists of transfers from the emergency reserve account, as required by Initiative Measure No. 601, to be used for common school or higher education construction. Gardner Evans Bonds (Fund 357) The Gardner Evans bonds were authorized by the legislature in the 2003 legislative session for critical capital needs of the state s institutions of higher education. The legislature recognizes that the number of traditional collegeaged students is increasing and that a large number of adults are returning to college to update skills or retrain so that they can meet the demands of Washington s changing workforce. In response, these bonds were created to maintain or improve the current infrastructure and simultaneously to provide new instruction and research capacity on the higher education campus. Local Plant Fund Transfers from the local operating budgets to this fund finance capital improvements for the auxiliary enterprise or service funds. Transfers to cover loan payments, lease payments, or debt service payments are also transferred to this fund. The capital budget provides funds for planning, acquiring, constructing, and renovating the University s physical facilities and grounds. These capital projects may span multiple years. Long-term implications of current capital budget decisions make it essential to execute wellplanned and thoughtful capital programs. The following section, Supplemental Capital Budget Overview, presents an overview of the changes to the capital budget, including a summary of the fiscal detail of the biennial budget. 21

25 Capital Budget The second section, Capital Budget Recommendation, presents the recommended supplemental capital budget for the biennium. The capital budget data contains descriptions and budget amounts for the recommended capital projects. Overview Supplemental Capital Budget Request In the 2004 legislative session, additional funds were provided from the Gardner Evans bonds for Phase 2 of the Senior Hall project. The capital budget recommendation presents a recap of the Board approved biennial capital budget, the services and auxiliary local fund projects for FY05, and the new supplemental budget request. 22

26 Capital Budget Senior Hall Renovation, Phase 2 Description: Senior Hall was built in 1920 and is listed on the National Register of Historic Places. It is one of six buildings that comprise the university s historic district. The building currently houses the School of Social Work and the Criminal Justice program. The building has received no major renovation since its original construction. Project Objective: The current building spaces were originally configured as housing space, so they were not designed to provide an appropriate teaching and learning environment, particularly as technological demands increase. Additionally, the functional life expectancy of the building s major systems has been exceeded so that the time and cost of repairs has become excessive. Construction has been developed in two phases: an extensive remodel of the existing 28,000 square foot building followed by a 19,000 square foot, three-story infill of the existing, undeveloped courtyard. Schedule: Construction will begin September 2004 with essential completion by December Requested Project Budget: New Supplemental Appropriation Phase 2 (Fund 357): $8,120,012 Appropriation Phase 1(Fund 357): 6,000,000 Total Project $14,120,012 23

27 Capital Budget Local Fund Capital Projects Description: In addition to state-funded projects, Eastern Washington University funds a number of locally funded capital projects. Project Objective: Projects include improvement of residence halls, bookstore and PUB facilities. Schedule: These projects are ongoing from July 2004 thru June Requested Project Budget: Bookstore Remodeling: $75,000 Housing and Dining: 550,000 Pence Union Building Remodeling: 56,400 Total $681,400 24

28 Capital Budget Capital Budget Summary New Requested Projects Reapprop Approp Budget Approved Biennial Budget State 057 Funds $7,308,000 $6,191,326 $13,499,326 State 061 Funds 1,925,000 6,300,000 8,225,000 State 253 Funds 1,400,000 1,726,000 3,126,000 State 357 Funds - 25,000,482 25,000,482 Local Funds - - 2,330,000 Approved Biennial Budget $10,633,000 $39,217,808 $52,180,808 FY 2004 Supplemental Budget State 357 Funds (Sr Hall Remodel Phase 2) 8,120,012 8,120,012 Total Biennial Budget $10,633,000 $47,337,820 $60,300,820 Local Fund Capital Projects for FY05 Bookstore Remodeling 75,000 PUB Remodeling 56,400 Housing & Dining 550,000 Total Local Fund Projects 681,400 Revised Capital Budget (including Local Fund Projects) $60,982,220 25

29 Capital Budget Recommended Capital Budget Action It is recommended that the Board of Trustees approve the supplemental capital budget of $8,801,412 (including local funded projects of $ 681,400) for FY2005, which begins July 1, 2004 and ends June 30, This supplemental budget is in addition to the existing $52,180, capital budget for a revised capital budget total of $60,982,220. The supplemental capital budget is summarized as follows: Gardner-Evans Bonds (Fund 357) $ 8,120,012 Local Funded Projects 681,400 Total $8,801,412 Local Funded Projects 8% Education Construction Account 92% 26

30 Appendix Appendix Summary of Revenues, Expenditures, and Transfers Requested Actual Actual Projected Budget REVENUES Educational and General $77,374,784 $80,449,385 $81,978,600 $87,823,390 Auxiliary Enterprises 22,104,735 24,276,303 25,344,300 26,247,282 Scholarships & Fellowships 16,082,548 17,573,280 18,400,000 19,625,000 Sponsored Programs 12,037,119 13,861,907 13,219,013 13,806,000 Total Revenues $127,599,186 $136,160,875 $138,941,913 $147,501,672 Percentage Increase 5.8% 6.7% 2.0% 6.2% EXPENDITURES Educational and General $72,557,747 $74,843,502 $75,869,475 $88,019,879 Auxiliary Enterprises 21,239,022 23,242,240 24,516,442 26,032,359 Scholarships & Fellowships 16,082,548 17,573,280 18,400,000 19,625,000 Sponsored Programs 12,037,119 13,861,907 13,219,013 13,806,000 Total Expenditures $121,916,436 $129,520,929 $132,004,930 $147,483,238 Percentage Increase 4.6% 6.2% 1.9% 11.7% Net Revenue / Expenditures $5,682,750 $6,639,946 $6,936,983 $18,434 A

31 Appendix Revenues and Transfers Summary Requested Actual Actual Projected Budget EDUCATIONAL & GENERAL General Fund- State $45,591,632 $43,906,379 $41,648,800 $43,204,200 Operating Fee Account 22,507,019 26,579,943 28,505,000 29,837,000 Summer Session Dedicated Local 2,895,459 2,727,924 2,621,000 3,154,498 Other Dedicated Local 6,242,474 7,104,023 9,106,000 11,533,292 Service Funds (Net of Recharges) 138, ,116 97,800 94,400 Educational & General Subtotal 77,374,784 80,449,385 81,978,600 87,823,390 AUXILIARY ENTERPRISES Auxiliary Enterprises 18,760,253 20,495,123 21,517,000 22,148,262 Mandatory Transfers (Additions) Nonmandatory Transfers (Additions) 343, , , ,300 Service & Activity Fees 3,000,563 3,354,322 3,574,000 3,845,720 Auxiliary Enterprises Subtotal 22,104,735 24,276,303 25,344,300 26,247,282 SCHOLARSHIPS & FELLOWSHIPS Federal Financial Aid 8,292,104 8,968,813 9,300,000 10,200,000 State Financial Aid 7,257,678 8,083,218 8,500,000 8,800,000 Private Financial Aid 532, , , ,000 Scholarships & Fellowships Subtotal 16,082,548 17,573,280 18,400,000 19,625,000 SPONSORED PROGRAMS Federal Research/Other 5,307,903 6,601,446 6,455,859 7,035,000 State Research/Other 2,605,712 2,874,904 2,462,013 2,497,000 Local Research/Other 1,572,542 1,740,064 1,905,995 1,918,000 Private Research/Other 1,687,114 2,368,089 2,154,507 2,097,000 Department Restricted 863, , , ,000 Sponsored Programs Subtotal 12,037,119 13,861,907 13,219,013 13,806,000 Total, All Funds $127,599,186 $136,160,875 $138,941,913 $147,501,672 Percentage Increase 5.8% 6.7% 2.0% 6.2% B

32 Appendix Expenditures and Transfers Summary Requested Actual Actual Projected Budget EDUCATIONAL & GENERAL Instruction College of Business Public Administration $3,745,953 $3,784,504 $3,702,000 $3,776,951 College of Education & Human Development 4,666,407 4,548,697 4,700,000 4,675,663 College of Social & Behavioral Sciences 4,621,197 4,647,886 4,712,000 4,946,161 College of Arts and Letters 5,571,332 5,493,466 5,522,000 5,790,696 School of Social Work 1,601,783 1,722,059 1,653,000 1,597,938 College of Science, Mathematics & Technology 8,788,668 8,908,354 8,724,000 9,477,027 Summer School Dedicated Local 2,247,543 2,022,460 2,510,667 2,867,650 Dedicated Local Fund (less summer school) 2,704,481 3,232,845 3,233,494 7,104,956 Instruction Other 2,616,909 2,639,571 3,353,839 5,977,603 Instruction Subtotal 36,564,273 36,999,842 38,111,000 46,214,645 Research 285, , , ,523 Public Service 55,394 75, , ,829 Academic Support 4,410,343 4,666,625 4,705,000 5,052,040 Libraries 3,985,065 4,060,373 4,008,000 4,087,935 Student Services 8,752,023 8,961,012 8,565,000 10,299,090 Institutional Support 9,602,601 10,299,649 10,594,000 12,384,361 Plant Operations & Maintenance 8,814,006 9,269,868 9,192,000 9,602,652 Service Funds (net of recharges) 88, , ,475 (180,196) Total Educational & General $72,557,747 $74,843,502 $75,869,475 $88,019,879 AUXILIARY ENTERPRISES Auxiliary Enterprises $19,015,299 $21,022,579 $21,762,000 $23,438,267 Mandatory Transfers (Deductions) 1,411,352 1,571,670 1,804,818 1,740,733 Nonmandatory Transfers (Deductions) 812, , , ,359 Total Auxiliary & Service Enterprises $21,239,022 $23,242,240 $24,516,442 $26,032,359 SCHOLARSHIPS & FELLOWSHIPS Total Scholarships & Fellowships $16,082,548 $17,573,280 $18,400,000 $19,625,000 SPONSORED PROGRAMS Total Sponsored Research $12,037,119 $13,861,907 $13,219,013 $13,806,000 Total, All Funds $121,916,436 $129,520,929 $132,004,930 $147,483,238 Percentage Increase 4.6% 6.2% 1.9% 11.7% C

33 Appendix Academic Year Tuition and Fees Actual Actual Actual Proposed Tuition Rate Resident Undergraduate $2,964 $3,357 $3,582 $3,822 Resident Graduate 4,758 5,403 5,772 5,772 Nonresident Undergraduate 10,224 11,634 12,438 13,299 Nonresident Graduate 14,031 15,975 17,085 17,085 Total Academic Year Net Tuition Income $22,507,019 $26,579,943 $28,505,000 $29,837,000 Percentage Change 5.3% 18.1% 7.2% 4.7% $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $ Resident Undergraduate Resident Graduate Nonresident Undergraduate Nonresident Graduate D

34 Appendix Academic Year Enrollment * Projected Actual Actual Actual Budget Enrollment (Headcount) Freshmen 1,533 1,572 1,598 1,578 Sophomores 1,292 1,342 1,353 1,336 Juniors 2,021 1,957 2,127 2,100 Seniors 2,435 2,600 2,684 2,650 Graduates 1,355 1,386 1,364 1,347 Total Academic Year Enrollment (Headcount) 8,636 8,857 9,126 9,009 3,000 2,500 2,000 1,500 1, Freshmen Sophomores Juniors Seniors Graduates * The enrollment projection of 9,009 headcount represents Eastern s estimate of enrollments for This estimate is the basis for the revenue assumption. E

35 Appendix General Information Requested Actual Actual Projected Budget STUDENTS Number of Undergraduate Degrees Conferred 1,531 1,648 1,650 1,650 Number of Graduate Degrees Conferred Number of Students Receiving Financial Aid 7,182 7,659 8,150 8,650 PHYSICAL PLANT Assignable Square Feet: General Fund State 1,092,429 1,092,429 1,092,429 1,092,429 Auxiliary 583, , , ,454 Total 1,675,433 1,675,433 1,687,883 1,687,883 STATE FUNDS FACULTY FTE Faculty Graduate Assistants (GA) Total Faculty Salaries $20,913,401 $20,991,953 $21,840,000 $21,390,509 Average Faculty Salary $49,441 $49,277 $49,960 $50,838 Average Faculty Salary - Annualized $65,921 $65,703 $66,613 $67,784 Average GA Salary $38,092 $36,238 $37,457 $39,286 STAFF Administrative Exempt (FTE) Classified (FTE) Hourly (FTE) Total Staff Salaries & Wages $20,802,047 $20,886,712 $20,744,000 $21,762,519 Avg. Salaries for Administrative Exempt $55,355 $56,235 $56,000 $56,034 Avg. Salaries for Classified $35,724 $35,892 $35,900 $36,453 Avg. Salaries for Hourly $17,758 $18,049 $18,500 $18, State Funds Faculty Admin Exempt Classified Hourly GA F

36 Appendix Requested Actual Actual Projected Budget ALL FUNDS FACULTY FTE Faculty Graduate Assistants (GA) Total Faculty Salaries $25,106,962 $26,010,073 $27,366,000 $27,459,807 Average Faculty Salary $48,846 $49,262 $50,478 $50,704 Average Faculty Salary - Annualized $65,128 $65,682 $67,304 $67,605 Average GA Salary $37,190 $36,975 $39,017 $39,167 STAFF Administrative Exempt (FTE) Classified (FTE) Hourly (FTE) Total Staff Salaries & Wages $33,120,093 $33,819,935 $33,647,000 $35,380,025 Avg. Salaries for Admin Exempt $49,687 $50,132 $50,347 $50,618 Avg. Salaries for Classified $34,958 $35,068 $35,193 $35,452 Avg. Salaries for Hourly $17,822 $18,208 $18,630 $19, All Funds Faculty Admin Exempt Classified Hourly GA G

37 Appendix Summary of Auxiliary Enterprise and Service Funds AUXILIARY ENTERPRISES Requested Actual Actual Projected Budget Beginning Fund Balance $3,746,862 $4,612,575 $5,646,638 $6,474,496 Revenues 21,760,816 23,849,445 25,091,000 25,993,982 Fund Additions - Mandatory Fund Additions - Nonmandatory 343, , , ,300 Total-Revenues & Fund Additions 22,104,735 24,276,303 25,344,300 26,247,282 Expenditures 19,015,299 21,022,579 21,762,000 23,438,267 Fund Deductions-Mandatory 1,411,352 1,571,670 1,804,818 1,740,733 Fund Deductions-Nonmandatory 812, , , ,359 Total-Expenditures & Fund Deductions 21,239,022 23,242,240 24,516,442 26,032,359 Net Increase/(Decrease) 865,713 1,034, , ,923 Ending Fund Balance $4,612,575 $5,646,638 $6,474,496 $6,689,419 SERVICE FUNDS Beginning Fund Balance $842,839 $896,950 $838,755 $752,080 Revenues 138, ,116 97,800 94,400 Fund Additions - Mandatory Fund Additions - Nonmandatory 4, Total-Revenues & Fund Additions 142, ,116 97,800 94,400 Expenditures 4,010,265 4,336,579 4,032,400 3,740,228 Departmental Sales (Recharges) (4,033,225) (4,360,638) (3,954,610) (4,020,424) Fund Deductions-Mandatory 11,480 13,370 6,685 0 Fund Deductions-Nonmandatory 100, , , ,000 Total-Expenditures & Fund Deductions 88, , ,475 (180,196) Net Increase/(Decrease) 54,110 (58,195) (86,675) 274,596 Ending Fund Balance $896,950 $838,755 $752,080 $1,026,676 H