WICHITA STATE UNIVERSITY

Transcription

1 WICHITA STATE UNIVERSITY Actual FY 2016 Agency Est. Agency Req. Agency Req. FY 2019 FY 2019 Operating Expenditures: State General Fund $ 71,149,663 $ 71,617,393 $ 71,580,924 $ 70,738,088 $ 70,566,341 $ 70,873,049 $ 70,728,132 Other Funds 215,899, ,544, ,515, ,934, ,728, ,728, ,615,444 TOTAL $ 287,049,440 $ 306,161,622 $ 306,096,070 $ 302,672,528 $ 302,295,086 $ 302,601,734 $ 301,343,576 Capital Improvements: State General Fund $ 897,125 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 Other Funds 11,739,666 13,634,335 13,634,335 7,086,298 7,086,298 6,998,666 6,998,666 TOTAL $ 12,636,791 $ 13,734,335 $ 13,734,335 $ 7,186,298 $ 7,186,298 $ 7,098,666 $ 7,098,666 GRAND TOTAL $ 299,686,231 $ 319,895,957 $ 319,830,405 $ 309,858,826 $ 309,481,384 $ 309,700,400 $ 308,442,242 Percentage Change: Operating Expenditures State General Fund 0.3 % 0.7 % 0.6 % (1.2) % (1.4) % 0.2 % 0.2 % All Funds (0.7) (1.1) (1.2) (0.0) (0.3) FTE Positions 2, , , , , , ,087.3 Non-FTE Perm.Uncl.Pos TOTAL 2, , , , , , ,087.3 Wichita State University 2153

2 AGENCY OVERVIEW Wichita State University was established as Fairmount College and was operated by the Congregational Church from 1895 to In 1926, it became a municipal university under the jurisdiction of the City of Wichita. Since July 1, 1964, the institution has been a part of the state Regents system of higher education under the auspices of the Kansas Board of Regents. As a metropolitan university located in the state s largest urban area, the University serves a large number of nontraditional students. The University has two distinct student bodies: one is comprised of traditional students ages 18 to 23 who devote themselves full-time to school and campus activities, and the other is comprised of older students who work on a part-time or full-time basis while in school. A total of 14,474 students attended WSU during the Fall 2016 semester. This is a decrease of 21 students, or 0.1 percent, below the Fall 2015 semester. MAJOR ISSUES FROM PRIOR YEARS The 1999 Legislature passed the Higher Education Coordination Act (SB 345) that transferred supervision of community colleges, area vocational schools, technical colleges, adult education programs, and proprietary schools from the Department of Education to the Board of Regents. The 2001 Legislature adopted a proposal that provided for state universities to be funded through an operating block grant rather than the multiple line-item appropriations that had been used previously. The change was made to allow the institutions greater flexibility in managing their budgets and to base future funding on performance rather than an enrollment formula. The 2002 Legislature passed the University Research and Development Act (HB 2690) that authorized the issuance of not more than $120.0 million in bonds to fund a portion of the Financing for research facilities at the state universities. The 2006 Legislature passed legislation allowing interest earnings on certain state university funds to be spent on deferred maintenance. Under prior law, the interest earned by the General Fees Fund (tuition revenue) and the Restricted Fees Fund (student fees and other revenue) was retained in the State General Fund. The legislation transfers the amount of interest earned into the deferred maintenance fund. The 2011 Legislature passed legislation that created the Postsecondary Tiered Technical Education State Aid Act. Beginning with FY 2012, and in each fiscal year thereafter, each community college and technical college and the Washburn Institute of Technology is eligible for postsecondary tiered technical education state aid from the State General Fund for credit hours approved by the State Board of Regents, using a credit hour cost calculation model. The 2011 Legislature also passed legislation designating 50 counties as Rural Opportunity Zones (ROZs), effectively providing an income tax exemption for certain out-of-state taxpayers who relocate to those counties, and authorizing the counties to participate in a state-matching program to repay student loans of up to $15,000 for certain students who establish domicile in ROZ counties. Wichita State University 2154

3 The 2012 Legislature passed legislation requiring the State Board of Regents to establish a career technical education incentive program that will award $1,000, subject to appropriation, to a school district for each high school graduate who graduates from that district with an industry-recognized credential in a high-need occupation, as identified by the Secretary of Labor, in consultation with the State Board of Regents and the State Board of Education. The legislation requires the State Board of Regents to initiate the development of a statewide articulation agreement on career technical education programs among high schools, community colleges, technical colleges, and the Washburn Institute of Technology. This provision went into effect on July 1, The 2012 Legislature also passed legislation amending statutes governing the low-income family postsecondary savings accounts incentive program. The bill allows a third-party contributor, other than the account owner, to contribute money to a family postsecondary savings account. The 2012 Legislature also passed legislation removing the expiration date on the State Educational Institution Project Delivery Construction Procurement Act that applies only to university construction projects and services funded totally with non-state money. The act exempts certain construction projects and construction project services at state universities from many of the requirements imposed on other state agencies. The 2012 Legislature also passed legislation amending the Vocational Education Scholarship statutes that deal with state universities and negotiated contracts, extending a sunset on private and out-of-state postsecondary fees, changing requirements related to remedial education and the qualified admissions standards at state education institutions, and authorizing individual plans for success for students admitted under the minimum admissions standards. The 2013 Legislature reduced the University s State General Fund operating expenditures by 1.5 percent in both FY 2014 and FY There also was a reduction of all funds expenditures to salaries and wages of approximately 1.1 percent in FY 2014 and less than 0.1 percent in FY The 2014 Legislature added $3.5 million, all from the State General Fund, for the National Center for Aviation Training equipment and training and deleted $3.0 million from the Economic Development Initiatives Fund for the same project in FY The 2014 Legislature also added $5.0 million, all from the State General Fund for aviation research and deleted the $5.0 million transfer from the Department of Commerce for the same aviation research in FY The Governor s December 2014 State General Fund allotment reduced approved expenditures by $141,340 and the February 2015 State General Fund allotment reduced approved expenditures by $1.5 million in FY The Governor s March 2016 State General Fund allotment reduced approved expenditures by $2.2 million in FY The Governor s May 2016 State General Fund allotment reduced approved expenditures by $2.8 million in. Wichita State University 2155

4 BUDGET SUMMARY AND KEY POINTS Agency Estimate The agency requests a revised estimate of $319.9 million, including $71.7 million from the State General Fund. This is an all funds increase of $14.6 million, or 4.8 percent. The State General Fund amount did not change. The increase is primarily due to increased operating expenditures of $8.2 million, including salaries and wages ($3.1 million), contractual services ($7.4 million), and other assistance ($2.8 million), with an offsetting decrease in commodities ($4.4 million). There also is an increase in capital improvements of $7.8 million due to the transfer of Educational Building Fund from the Board of Regents for rehabilitation and repair. The agency requests a revised estimate of $13.7 million, including $100,000 from the State General Fund, for capital improvements. This is an all funds increase of $6.4 million, or 86.8 percent, and a State General Fund increase of $100,000 above the approved amount. This is mainly due to the transfer of the Educational Building Fund from the Board of Regents for rehabilitation and repair. There were no approved State General Fund expenditures last year. The agency is requesting the use of aviation research funds for capital improvements to the National Institute for Aviation Research (NIAR) facility. Governor Recommendation The Governor recommends expenditures of $319.8 million, including $71.7 million from the State General Fund. The recommendation is an all funds decrease of $65,552, or less than 0.1 percent, and a State General Fund decrease of $36,469, or 0.1 percent, below the agency s revised estimate. The decrease is attributable to the Governor s FY 2016 amount. The Governor concurs with the agency s capital improvement revised estimate in. Agency Request The agency requests an operating budget of $302.7 million, including $70.7 million from the State General Fund. This is a decrease of $3.5 million, or 1.1 percent, from all funds and $879,305, or 1.2 percent, from the State General Fund below the revised estimate. The decrease is primarily due to decreases in all expenditure categories. The agency requests $7.2 million, including $100,000 from the State General Fund, for capital improvements. This is an all funds decrease of $6.5 million, or 47.7 percent. The decrease is primarily due to no Educational Building Fund expenditures. The agency is requesting the use of State General Fund expenditures from the aviation research funds for capital improvements to the NIAR facility. Wichita State University 2156

5 Governor Recommendation The Governor recommends operating expenditures of $302.3 million, including $70.6 million from the State General Fund. The recommendation is an all funds decrease of $377,442, or 0.1 percent, and a State General Fund decrease of $171,747, or 0.2 percent, below the agency s FY 2018 request. The decrease is attributable to the Governor s FY 2016 amount, which results in an all funds reduction of $182,117, including $102,098 from the State General Fund, and to provide a moratorium on agency death and disability payments for one quarter, which results in an all funds reduction of $195,325, including $69,649 from the State General Fund. The Governor concurs with the agency s capital improvement budget for. FY 2019 Agency Request The agency requests an operating budget of $302.6 million, including $70.9 million from the State General Fund. This is an all funds decrease of $70,794, or less than 0.1 percent, and a State General Fund increase of $134,961, or 0.2 percent, from the request. There is an increase in salaries and wages ($831,858) with offsetting decreases in all other expenditure categories. The agency requests $7.1 million, including $100,000 from the State General Fund, for capital improvements. This is an all funds decrease of $87,632, or 1.2 percent, below the request. The agency is requesting State General Fund expenditures from the aviation research funds for capital improvements to the NIAR facility. FY 2019 Governor Recommendation The Governor recommends FY 2019 operating expenditures of $301.3 million, including $70.7 million from the State General Fund. The recommendation is an all funds decrease of $1.3 million, or 0.4 percent, and a State General Fund decrease of $144,917, or 0.2 percent, below the agency s FY 2019 request. The decrease is attributable to the Governor s FY 2016 amount, which results in an all funds reduction of $258,158, including $144,917 from the State General Fund. The recommendation also includes a deletion of $1.0 million, all from the State General Fund, for the Center of Innovation for Biomaterials in Orthopedic Research (CIBOR). The Governor concurs with the agency s capital improvement budget for FY Wichita State University 2157

6 BUDGET TRENDS OPERATING EXPENDITURES FY 2009 FY 2019 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Gov. Rec. FY 2019 Gov. Rec. Gov. Rec. SGF All Funds Fiscal Year SGF % Change All Funds % Change FTE 2009 $ 72,243,875 (1.4)% $ 217,063, % 1, ,137,368 (8.5) 231,800, , ,596, ,572, , ,285,189 (2.0) 250,525, , ,176,386 (0.2) 256,070, , ,335,814 (2.8) 263,039, , ,934, ,997, , ,149, ,049,440 (0.7) 2, ,580, ,096, , ,566,341 (1.4) 302,295,086 (1.2) 2, ,728, ,343,576 (0.3) 2,087.3 Eleven-Year Change $ (1,515,743) (2.1)% $ 84,279, % : $10.5 million change from special revenue funds to SGF with no net effect to the budget allotments = $1.6 million; 2016 allotment = $2.2 million; 2017 allotment = $2.8 million. Wichita State University 2158

7 Actual 2016 Estimate Summary of Operating Budget FY Agency Estimate Request Dollar Change from FY 17 Percent Chg. from FY 17 Rec. Governor s Recommendation Rec. Dollar Change from FY 17 Percent Change from FY 17 By Program: Institutional Support $ 19,975,772 $ 25,912,540 $ 23,405,315 $ (2,507,225) (9.7) % $ 25,902,434 $ 23,360,519 $ (2,541,915) (9.8)% Instructional Services 75,489,698 75,946,951 76,811, , ,938,381 76,712, , Academic Support 29,507,405 27,129,780 26,594,224 (535,556) (2.0) 27,122,839 26,550,929 (571,910) (2.1) Student Services 22,394,244 21,657,142 21,770, , ,648,432 21,728,337 79, Research 54,054,563 61,460,262 60,946,713 (513,549) (0.8) 61,459,004 60,915,217 (543,787) (0.9) Public Service 22,524,740 20,374,279 20,458,261 83, ,373,015 20,443,662 70, Student Aid 31,059,758 37,142,515 37,142, ,142,515 37,142, Auxiliary 7,364,112 7,299,242 6,869,116 (430,126) (5.9) 7,296,878 6,860,543 (436,335) (6.0) Physical Plant/Central Services 22,163,235 22,973,436 23,243, , ,947,097 23,149, , Debt Service 2,515,913 6,265,475 5,431,251 (834,224) (13.3) 6,265,475 5,431,251 (834,224) (13.3) TOTAL $ 287,049,440 $ 306,161,622 $ 302,672,528 $ (3,489,094) (1.1) % $ 306,096,070 $ 302,295,086 $ (3,800,984) (1.2)% By Major Object of Expenditure: Salaries and Wages $ 173,891,122 $ 181,695,473 $ 180,210,312 $ (1,485,161) (0.8) % $ 181,629,921 $ 179,832,870 $ (1,797,051) (1.0)% Contractual Services 49,091,632 51,041,296 50,026,837 (1,014,459) (2.0) 51,041,296 50,026,837 (1,014,459) (2.0) Commodities 12,211,373 13,851,102 13,709,778 (141,324) (1.0) 13,851,102 13,709,778 (141,324) (1.0) Capital Outlay 15,226,374 13,677,224 13,663,298 (13,926) (0.1) 13,677,224 13,663,298 (13,926) (0.1) Debt Service 2,515,913 6,265,475 5,431,251 (834,224) (13.3) 6,265,475 5,431,251 (834,224) (13.3) Subtotal - Operations $ 252,936,414 $ 266,530,570 $ 263,041,476 $ (3,489,094) (1.3) % $ 266,465,018 $ 262,664,034 $ (3,800,984) (1.4)% Aid to Local Units 12,707 12,707 12, ,707 12, Other Assistance 34,100,319 39,618,345 39,618, ,618,345 39,618, TOTAL $ 287,049,440 $ 306,161,622 $ 302,672,528 $ (3,489,094) (1.1) % $ 306,096,070 $ 302,295,086 $ (3,800,984) (1.2)% Financing: State General Fund $ 71,149,663 $ 71,617,393 $ 70,738,088 $ (879,305) (1.2) % $ 71,580,924 $ 70,566,341 $ (1,014,583) (1.4)% General Fees Fund 80,566,986 87,862,688 87,071,635 (791,053) (0.9) 87,843,476 86,951,694 (891,782) (1.0) Restricted Fees Fund 72,403,431 76,553,415 75,912,053 (641,362) (0.8) 76,547,078 75,848,616 (698,462) (0.9) All Other Funds 62,929,360 70,128,126 68,950,752 (1,177,374) (1.7) 70,124,592 68,928,435 (1,196,157) (1.7) TOTAL $ 287,049,440 $ 306,161,622 $ 302,672,528 $ (3,489,094) (1.1) % $ 306,096,070 $ 302,295,086 $ (3,800,984) (1.2)% Wichita State University 2159

8 By Program: Request Summary of Operating Budget - FY 2019 Agency Estimate Request FY 2019 Dollar Change from FY 18 Percent Change from FY 18 Rec. Governor s Recommendation Rec. FY 2019 Dollar Change from FY 18 Percent Change from FY 18 Institutional Support $ 23,405,315 $ 23,504,164 $ 98, % $ 23,360,519 $ 23,470,842 $ 110, % Instructional Services 76,811,063 76,814,764 3, ,712,771 76,779,999 67, Academic Support 26,594,224 26,257,361 (336,863) (1.3) 26,550,929 26,229,364 (321,565) (1.2) Student Services 21,770,736 21,860,949 90, ,728,337 21,825,881 97, Research 60,946,713 60,874,115 (72,598) (0.1) 60,915,217 59,869,019 (1,046,198) (1.7) Public Service 20,458,261 20,500,519 42, ,443,662 20,495,362 51, Student Aid 37,142,515 37,142, ,142,515 37,142, Auxiliary 6,869,116 6,900,703 31, ,860,543 6,891,390 30, Physical Plant/Central Services 23,243,334 23,448, , ,149,342 23,340, , Debt Service 5,431,251 5,298,533 (132,718) (2.4) 5,431,251 5,298,533 (132,718) (2.4) TOTAL $ 302,672,528 $ 302,601,734 $ (70,794) (0.0) % $ 302,295,086 $ 301,343,576 $ (951,510) (0.3)% By Major Object of Expenditure: Salaries and Wages $ 180,210,312 $ 181,042,170 $ 831, % $ 179,832,870 $ 180,784,012 $ 951, % Contractual Services 50,026,837 49,760,906 (265,931) (0.5) 50,026,837 49,360,906 (665,931) (1.3) Commodities 13,709,778 13,502,846 (206,932) (1.5) 13,709,778 13,102,846 (606,932) (4.4) Capital Outlay 13,663,298 13,366,227 (297,071) (2.2) 13,663,298 13,166,227 (497,071) (3.6) Debt Service 5,431,251 5,298,533 (132,718) (2.4) 5,431,251 5,298,533 (132,718) (2.4) Subtotal - Operations $ 263,041,476 $ 262,970,682 $ (70,794) (0.0) % $ 262,664,034 $ 261,712,524 $ (951,510) (0.4)% Aid to Local Units 12,707 12, ,707 12, Other Assistance 39,618,345 39,618, ,618,345 39,618, TOTAL $ 302,672,528 $ 302,601,734 $ (70,794) (0.0) % $ 302,295,086 $ 301,343,576 $ (951,510) (0.3)% Financing: State General Fund $ 70,738,088 $ 70,873,049 $ 134, % $ 70,566,341 $ 70,728,132 $ 161, % General Fees Fund 87,071,635 87,261, , ,951,694 87,187, , Restricted Fees Fund 75,912,053 75,693,939 (218,114) (0.3) 75,848,616 75,668,695 (179,921) (0.2) All Other Funds 68,950,752 68,773,216 (177,536) (0.3) 68,928,435 67,759,226 (1,169,209) (1.7) TOTAL $ 302,672,528 $ 302,601,734 $ (70,794) (0.0) % $ 302,295,086 $ 301,343,576 $ (951,510) (0.3)% Wichita State University 2160

9 BUDGET OVERVIEW A. Current Year Adjustments to Approved State General Fund Budget The 2016 Legislature approved a State General Fund budget of $71,717,393 for Wichita State University. No adjustments have been made subsequently to that amount. CHANGE FROM APPROVED BUDGET Legislative Approved Agency Estimate Agency Change from Approved Governor Rec. Governor Change from Approved State General Fund $ 71,717,393 $ 71,717,393 $ 0 $ 71,680,924 $ (36,469) All Other Funds 233,618, ,178,564 14,560, ,149,481 14,531,171 TOTAL $ 305,335,703 $ 319,895,957 $ 14,560,254 $ 319,830,405 $ 14,494,702 FTE Positions 2, , , The agency requests a revised estimate of $319.9 million, including $71.7 million from the State General Fund, in, including capital improvements. This is an all funds increase of $14.6 million, or 4.8 percent. The State General Fund amount did not change. The increase is primarily due to increased operating expenditures of $8.2 million, including salaries and wages ($3.1 million), contractual services ($7.4 million), and other assistance ($2.8 million), with an offsetting decrease in commodities ($4.4 million). There also is an increase in capital improvements of $7.8 million due to the transfer of the Educational Building Fund from the Board of Regents for rehabilitation and repair. The Governor recommends expenditures of $319.8 million, including $71.7 million from the State General Fund. The recommendation is an all funds decrease of $65,552, or less than 0.1 percent, and a State General Fund decrease of $36,469, or 0.1 percent, below the agency s revised estimate. The decrease is attributable to the Governor s FY 2016 amount. Wichita State University 2161

10 B. Budget Year OPERATING BUDGET SUMMARY Agency Request Governor s Recommendation Difference Total Request/Recommendation $ 302,672,528 $ 302,295,086 $ (377,442) FTE Positions 2, , Change from : Dollar Change: State General Fund $ (879,305) $ (1,014,583) All Other Funds (2,609,789) (2,786,401) TOTAL $ (3,489,094) $ (3,800,984) Percent Change: State General Fund (1.2) % (1.4) % All Other Funds (1.1) (1.2) TOTAL (1.1) % (1.2) % Change in FTE Positions The agency requests an operating budget of $302.7 million, including $70.7 million from the State General Fund. This is a decrease of $3.5 million, or 1.1 percent, from all funds and $879,305, or 1.2 percent, from the State General Fund below the revised estimate. The decrease is primarily due to decreases in all expenditure categories. The Governor recommends operating expenditures of $302.3 million, including $70.6 million from the State General Fund. The recommendation is an all funds decrease of $377,442, or 0.1 percent, and a State General Fund decrease of $171,747, or 0.2 percent, below the agency s FY 2018 request. The decrease is attributable to the Governor s Wichita State University 2162

11 FY 2016 amount, which results in an all funds reduction of $182,117, including $102,098 from the State General Fund, and to provide a moratorium on agency death and disability payments for one quarter, which results in an all funds reduction of $195,325, including $69,649 from the State General Fund. Reduced Resources The Governor has requested that agencies with select funds provide a reduced resources budget submission of approximately 5.0 percent for and FY The information below provides details of the agency s reduced resources budget submission for the State General Fund. REDUCED RESOURCES Agency Submission Governor s Recommendation Item SGF All Funds FTE SGF All Funds FTE Operating Expenditures $ 3,036,904 $ 3,036, $ 0 $ Technology Transfer Facility 96,200 96, Aviation Infrastructure 168, , Aviation Research 240, , TOTAL $ 3,541,904 $ 3,541, $ 0 $ The agency submitted a 5.0 percent reduced resource budget of $3.5 million, all from the State General Fund, as directed in the budget instructions of the Division of the Budget. The Governor does not recommend the agency s reduced resources budget. Wichita State University 2163

12 C. FY 2019 Budget Year FY 2019 OPERATING BUDGET SUMMARY Agency Request Governor s Recommendation Difference Total Request/Recommendation $ 302,601,734 $ 301,343,576 $ (1,258,158) FTE Positions 2, , Change from : Dollar Change: State General Fund $ 134,961 $ 161,791 All Other Funds (205,755) (1,113,301) TOTAL $ (70,794) $ (951,510) Percent Change: State General Fund 0.2 % 0.2 % All Other Funds (0.1) (0.5) TOTAL (0.0) % (0.3) % Change in FTE Positions The agency requests an operating budget of $302.6 million, including $70.9 million from the State General Fund. This is a decrease of $70,794, or less than 0.1 percent, from all funds and a State General Fund increase of $134,961, or 0.2 percent, from the request. There is an increase in salaries and wages ($831,858) due to increases in health insurance and KPERS benefits, with offsetting decreases in all other expenditure categories. The Governor recommends FY 2019 operating expenditures of $301.3 million, including $70.7 million from the State General Fund. The recommendation is an all funds Wichita State University 2164

13 decrease of $1.3 million, or 0.4 percent, and a State General Fund decrease of $144,917, or 0.2 percent, below the agency s request. The decrease is attributable to the Governor s FY 2016 amount, which results in an all funds reduction of $258,158, including $144,917 from the State General Fund. The recommendation also includes a deletion of $1.0 million, all from the State General Fund, for the Center of Innovation for Biomaterials in Orthopedic Research (CIBOR). FY 2019 Reduced Resources The Governor has requested that agencies with select funds provide a reduced resources budget submission of approximately 5.0 percent for and FY The information below provides details of the agency s reduced resources budget submission for the State General Fund. FY 2019 REDUCED RESOURCES Agency Submission Governor s Recommendation Item SGF All Funds FTE SGF All Funds FTE Operating Expenditures $ 3,043,652 $ 3,043, $ 0 $ Technology Transfer Facility 96,200 96, Aviation Infrastructure 168, , Aviation Research 240, , TOTAL $ 3,548,652 $ 3,548, $ 0 $ The agency submitted a 5.0 percent reduced resource budget of $3.5 million, all from the State General Fund, as directed in the budget instructions of the Division of the Budget. The Governor does not recommend the agency s reduced resource budget. Wichita State University 2165

14 Governor s Recommended Salary and Wage Adjustments 27th Payroll Period. The average fiscal year contains 26 biweekly payroll periods. Because of the biweekly nature of the payroll system and how the pay dates have fallen on the calendar since the system was implemented, a 27th payroll period occurs in. The last time this occurred was in FY The current estimate for the cost of the 27th pay period is $107.2 million, including $40.3 million from the State General Fund. The next anticipated occurrence of a 27th pay period will be in FY Longevity Bonus Payments. For,, and FY 2019, the Governor recommends funding longevity bonus payments for eligible state employees at the statutory rate of $40 per year of service, with a 10-year minimum ($400) and a 25-year maximum ($1,000). Classified employees hired after June 15, 2008, are not eligible for longevity bonus payments. The estimated cost for the recommended payments is $4.9 million, including $1.8 million from the State General Fund. For, the estimated cost is $5.1 million, including $1.9 million from the State General Fund. For FY 2019, the estimated cost is $4.4 million, including $1.6 million from the State General Fund. For this agency, there are no longevity bonus payments. Kansas Public Employees Retirement System (KPERS) Adjustments. KPERS Employer Contributions. The employer retirement contribution rate for KPERS State and School is scheduled to be percent in, percent for, and percent for FY For,, and FY 2019, the Governor recommends the employer contribution amounts be reduced, with the intention of holding employer contributions in these fiscal years to a similar amount as FY 2016 actual employer contributions, which included a quarter moratorium. This proposal also eliminates the scheduled contribution rate increases for FY 2017 through FY The estimated expenditure reduction to freeze KPERS employer contributions is $87.8 million, including $85.9 million from the State General Fund, in ; $141.6 million, including $140.2 million from the State General Fund, for FY 2018; and $202.3 million, including $198.5 million from the State General Fund, for FY Additionally, the Governor recommends not to pay approximately $97.4 million, all from the State General Fund, in delayed FY 2016 employer contributions, in with 8.0 percent interest per annum. For this agency, reducing employer contributions to KPERS would reduce expenditures by $65,552, including $36,469 from the State General Fund, in ; by $182,117, including $102,098 from the State General Fund, for ; and by $258,158, including $144,917 from the State General Fund, for FY Death and Disability. The Governor recommends extending the current moratorium on employer contributions to the Group Insurance Reserve Fund through the first quarter of. The employer contribution rate is recommended to return to 1.0 percent for FY The estimated expenditure reduction for the recommended moratorium on the first quarter of contributions is $12.6 million, including $10.1 million from the State General Fund. For this agency, a one quarter moratorium on Group Insurance Reserve Fund contributions would reduce expenditures by $195,325, including $69,649 from the State General Fund, for. KPERS Policy Changes. The Governor recommends extending the amortization period on the unfunded actuarial liability (UAL) by ten years. Currently, the UAL is scheduled to be amortized in FY In addition, the Governor recommends the combined KPERS State and School employer contribution rate be decoupled. Currently, a contribution rate is established for the combined KPERS State and the KPERS School group. The KPERS State group has a considerably lower UAL than the KPERS School group and the actuarial recommended contribution rate for the KPERS State group is consistently below the combined KPERS State and School rate. Wichita State University 2166

15 Funding Sources Funding Source Agency Req. Percent of Total Percent of Total Agency Req. Percent of Total FY 2019 Percent of Total FY 2019 State General Fund 23.3 % 23.3 % 23.4 % 23.5 % General Fees Fund Restricted Fees Fund All Other Funds TOTAL % % % % Note: Totals may not add due to rounding. Wichita State University 2167

16 General Fees Fund Under KSA , the Board of Regents has the authority to set tuition rates at each university and the funds collected from tuition are deposited in the general fees fund, excluding the student activity fees deposited in the restricted fees fund. Tuition is set by the Board of Regents after Session has concluded each year. Resource Estimate Actual FY 2016 Agency Estimate Governor Rec. Agency Request Governor Rec. Agency Request FY 2019 Governor Rec. FY 2019 Beginning Balance $ 6,958,693 $ 7,782,295 $ 7,782,295 $ 5,657,901 $ 5,677,113 $ 5,027,296 $ 5,166,449 Revenue 84,427,581 87,388,126 87,388,126 87,388,126 87,388,126 87,388,126 87,388,126 Transfers in 144, , , , , , ,219 Total Funds Available $ 91,530,626 $ 95,325,640 $ 95,325,640 $ 93,201,246 $ 93,220,458 $ 92,570,641 $ 92,709,794 Less: Expenditures 83,462,140 89,512,520 89,493,308 88,018,731 87,898,790 88,223,649 88,149,642 Transfers Out 138, , , , , , ,219 Off Budget Expenditures 147, Ending Balance $ 7,782,295 $ 5,657,901 $ 5,677,113 $ 5,027,296 $ 5,166,449 $ 4,191,773 $ 4,404,933 Ending Balance as Percent of Expenditures 9.3% 6.3% 6.3% 5.7% 5.9% 4.8% 5.0% Month Highest Ending Balance Month Lowest Ending Balance August August August August August August August $ 17,902,310 $ 20,882,868 $ 20,882,868 $ 17,544,263 $ 17,544,263 $ 18,081,333 $ 18,081,333 December July July July July July July $ 1,349,195 $ 2,234,111 $ 2,234,111 $ 1,322,211 $ 1,322,211 $ 1,362,687 $ 1,362,687 Wichita State University 2168

17 Enrollment Trends The following table summarizes recent enrollment trends at Wichita State University. Headcount enrollment reflects the actual number of students enrolled. Full-time equivalent converts those students to full-time based on the number of credit hours that students are enrolled. Fall 2011 Fall 2012 Fall 2013 Fall 2014 Fall 2015 Fall 2016 Fall 2011 to Fall 2016 Headcount 15,100 14,898 14,550 15,003 14,495 14,474 Change 294 (202) (348) 453 (508) (21) (626) % Change 2.0% (1.3)% (2.3)% 3.1% (3.4)% (0.1)% (4.1)% FTE Students 11,686 11,684 11,696 11,962 14,017 11,560 Change 320 (2) ,055 (2,457) (126) % Change 2.8% (0.0)% 0.1% 2.3% 17.2% (17.5)% (1.1)% Student Credit Hours 161, , , , , ,647 Change 5, ,210 (4,226) (259) (1,163) % Change 3.2% 0.0% 0.0% 2.0% (2.6)% (0.2)% (0.7)% Wichita State University 2169

18 PROGRAM DETAIL EXPENDITURES BY PROGRAM GOVERNOR S RECOMMENDATION All Funds SGF Institutional Support Instructional Services Academic Support Student Services Research Public Service Student Aid Auxiliary Physical Plant/Central Services Debt Service Program All Funds Percent of Total SGF Percent of Total Institutional Support $ 23,360, % $ 4,557, % Instructional Services 76,712, ,928, Academic Support 26,550, ,141, Student Services 21,728, ,258, Research 60,915, ,625, Public Service 20,443, , Student Aid 37,142, Auxiliary 6,860, Physical Plant/Central Services 23,149, ,127, Debt Service 5,431, TOTAL $ 302,295, % $ 70,566, % Wichita State University 2170

19 FTE POSITIONS BY PROGRAM FY 2016 FY 2019 Program Actual FY 2016 Agency Est. Agency Req. Agency Req. FY 2019 FY 2019 Institutional Support Instructional Services Academic Support Student Services Research Public Service Student Aid Auxiliary Physical Plant/Central Services Debt Service TOTAL 2, , , , , , ,087.3 Wichita State University 2171

20 A. Institutional Support The Institutional Support program includes central management and long-range planning activities, fiscal operations, general administration and logistical services, personnel management, and community and alumni relations activities. The agency requests operating expenditures of $23.4 million, including $4.6 million from the State General Fund. The request is a decrease of $2.5 million, or 9.7 percent, from all funds and $1.4 million, or 23.9 percent, from the State General Fund below the revised estimate. The decrease is attributable to a decrease in salaries and wages. The Governor recommends operating expenditures of $23.4 million, including $4.6 million from the State General Fund. The recommendation is a decrease of $44,796, or 0.2 percent, from all funds and $13,519, or 0.3 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount and to provide a moratorium on agency death and disability payments for one quarter. The agency requests FY 2019 operating expenditures of $23.5 million, including $4.6 million from the State General Fund. The request is an increase of $98,849 or 0.4 percent, from all funds and $34,527, or 0.8 percent, from the State General Fund above the request. The increase is attributable to an increase in salaries and wages. The Governor recommends FY 2019 operating expenditures of $23.5 million, including $4.6 million from the State General Fund. The recommendation is a decrease of $33,322, or 0.1 percent, from all funds and $10,063, or 0.2 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount. B. Instructional Services The Instructional Services program includes all general and remedial instruction of students. The agency requests operating expenditures of $76.8 million, including $25.0 million from the State General Fund. The request is an increase of $864,112, or 1.1 percent, from all funds and $321,992, or 1.3 percent, from the State General Fund above the revised estimate. The increase is primarily due to an increase in salaries and wages ($690,692). The Governor recommends operating expenditures of $76.7 million, including $24.9 million from the State General Fund. The recommendation is a decrease of $98,292, or 0.1 percent, from all funds and $35,708, or 0.1 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount and to provide a moratorium on agency death and disability payments for one quarter. The agency requests FY 2019 operating expenditures of $76.8 million, including $25.1 million from the State General Fund. The request is an increase of $3,701, or less than 0.1 percent, from all funds and $119,850, or 0.5 percent, from the State General Fund above the request. The increase is primarily due to salaries and wages ($235,572) with an offsetting decrease in contractual services ($233,298). Wichita State University 2172

21 The Governor recommends FY 2019 operating expenditures of $76.8 million, including $25.1 million from the State General Fund. The recommendation is a decrease of $34,765, or less than 0.1 percent, from all funds and $12,644, or 0.1 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount. C. Academic Support The Academic Support program includes all support services for the institution s primary missions and instruction, research, and public service. These support services cover libraries, museums, and galleries; educational media services; academic computing support; academic administration; and course and curriculum. The agency requests operating expenditures of $26.6 million, including $10.2 million from the State General Fund. The request is a decrease of $535,556, or 2.0 percent, from all funds and $142,408, or 1.4 percent, from the State General Fund below the revised estimate. There is a decrease in contractual services ($691,190) with an offsetting increase in salaries and wages ($155,634). The Governor recommends operating expenditures of $26.6 million, including $10.1 million from the State General Fund. The recommendation is a decrease of $43,295, or 0.2 percent, from all funds and $20,577 or 0.2 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount and to provide a moratorium on agency death and disability payments for one quarter. The agency requests FY 2019 operating expenditures of $26.3 million, including $9.9 million from the State General Fund. The request is a decrease of $336,863, or 1.3 percent, from all funds and $245,167, or 2.4 percent, from the State General Fund below the request. There are increases in salaries and wages ($93,344) and contractual services ($8,152) with offsetting decreases in commodities ($208,359) and capital outlay ($230,000). The Governor recommends FY 2019 operating expenditures of $26.2 million, including $9.9 million from the State General Fund. The recommendation is a decrease of $27,997, or 0.1 percent, from all funds and $13,318, or 0.1 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount. D. Student Services The Student Services program is responsible for the nonacademic activities surrounding the student s experience at the institution. These activities include social and cultural development, counseling and career guidance, financial aid administration, admissions, student health services, and intercollegiate athletics. The agency requests operating expenditures of $21.8 million, including $7.3 million from the State General Fund. The request is an increase of $113,594, or 0.5 percent, from all funds and $109,583, or 1.5 percent, from the State General Fund above the revised estimate. The increase is in salaries and wages. Wichita State University 2173

22 The Governor recommends operating expenditures of $21.7 million, including $7.3 million from the State General Fund. The recommendation is a decrease of $42,399, or 0.2 percent, from all funds and $20,041, or 0.3 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount and provide a moratorium on agency death and disability payments for one quarter. The agency requests FY 2019 operating expenditures of $21.9 million, including $7.3 million from the State General Fund. The request is an increase of $90,213, or 0.4 percent, from all funds and $50,430, or 0.7 percent, from the State General Fund above the request. The increase is in salaries and wages. The Governor recommends FY 2019 operating expenditures of $21.8 million, including $7.3 million from the State General Fund. The recommendation is a decrease of $35,068, or 0.2 percent, from all funds and $16,594, or 0.2 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount. E. Research The Research program includes most research projects conducted by university personnel whether individually or through an institute or research center. The agency requests operating expenditures of $60.9 million, including $10.6 million from the State General Fund. The request is a decrease of $513,549, or 0.8 percent, from all funds and an increase of $9,495, or 0.1 percent, from the State General Fund from the revised estimate. The decreases are primarily in salaries and wages ($282,397) and contractual services ($269,331). The Governor recommends operating expenditures of $60.9 million, including $10.6 million from the State General Fund. The recommendation is a decrease of $31,496, or 0.1 percent, from all funds and $649, or less than 0.1 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount and to provide a moratorium on agency death and disability payments for one quarter. The agency requests FY 2019 operating expenditures of $60.9 million, including $10.6 million from the State General Fund. The request is a decrease of $72,598, or 0.1 percent, from all funds and an increase of $4,305, or less than 0.1 percent, from the State General Fund from the request. There is an increase in salaries and wages ($77,694) with offsetting decreases in contractual services ($56,799) and capital outlay ($93,493). The Governor recommends FY 2019 operating expenditures of $59.9 million, including $10.6 million from the State General Fund. The recommendation is a decrease of $1.0 million, or 1.7 percent, from all funds and $105, or less than 0.1 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount and deleting funding for the Center of Innovation for Biomaterials in Orthopedic Research (CIBOR). Wichita State University 2174

23 F. Public Service The Public Service program is responsible for all non-credit instruction (except remedial instruction) and other activities primarily of benefit to external groups or individuals. These activities include outreach education and community service. The agency requests operating expenditures of $20.5 million, including $928,501 from the State General Fund. The request is an increase of $83,982, or 0.4 percent, from all funds and $10,856, or 1.2 percent, from the State General Fund above the revised estimate. The increase is primarily in salaries and wages ($88,931). The Governor recommends operating expenditures of $20.4 million, including $927,470 from the State General Fund. The recommendation is a decrease of $14,599, or 0.1 percent, from all funds and $1,031 or 0.1 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s recommendation to hold KPERS employer contributions at the FY 2016 amount and G. Student Aid The Student Aid program includes activities covering all forms of financial aid assistance such as scholarships, fellowships, and loans. The agency requests operating expenditures of $37.1 million, all from special revenue funds. This is the same amount as the revised estimate. provide a moratorium on agency death and disability payments for one quarter. The agency requests FY 2019 operating expenditures of $20.5 million, including $931,827 from the State General Fund. The request is an increase of $42,258, or 0.2 percent, from all funds and $3,326, or 0.4 percent, from the State General Fund above the request. The increase is in salaries and wages. The Governor recommends FY 2019 operating expenditures of $20.5 million, including $931,463 from the State General Fund. The recommendation is a decrease of $5,157, or less than 0.1 percent, from all funds and $364, or less than 0.1 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount. The Governor concurs with the agency s request for FY The agency requests FY 2019 operating expenditures of $37.1 million, all from special revenue funds. This is the same amount as the request. The Governor concurs with the agency s request for FY H. Auxiliary The Auxiliary program is responsible for activities that furnish goods or services to students, faculty, and employees of the institution such as housing services, food services, and parking services. Wichita State University 2175

24 The agency requests operating expenditures of $6.9 million, all from special revenue funds. The request is a decrease of $430,126, or 5.9 percent, below the revised estimate. The decrease is in all expenditure categories. The Governor recommends operating expenditures of $6.9 million, all from special revenue funds. The recommendation is a decrease of $8,573, or 0.1 percent, below the agency s request. The decrease is due to the Governor s FY 2016 amount and provide a moratorium on agency death and disability payments for one quarter. The agency requests FY 2019 operating expenditures of $6.9 million, all from special revenue funds. The request is an increase of $31,587, or 0.5 percent, above the request. The increase is in salaries and wages ($15,573) and contractual services ($16,014). The Governor recommends FY 2019 operating expenditures of $6.9 million, all from special revenue funds. The recommendation is a decrease of $9,313, or 0.1 percent, below the agency s request. The decrease is due to the Governor s FY 2016 amount. I. Physical Plant/Central Services The Physical Plant/Central Services program is responsible for the operation and maintenance of the facilities and grounds of the institution. This includes facilities planning, building maintenance, custodial services, and utilities. The agency requests operating expenditures of $23.2 million, including $12.2 million from the State General Fund. The request is an increase of $269,898, or 1.2 percent, from all funds and $249,505, or 2.1 percent, from the State General Fund above the revised estimate. The increase is in salaries and wages. The Governor recommends operating expenditures of $23.1 million, including $12.1 million from the State General Fund. The recommendation is a decrease of $93,992, or 0.4 percent, from all funds and $80,222, or 0.7 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount and provide a moratorium on agency death and disability payments for one quarter. The agency requests FY 2019 operating expenditures of $23.4 million, including $12.4 million from the State General Fund. The request is an increase of $204,777, or 0.9 percent, from all funds and $167,690, or 1.4 percent, from the State General Fund above the request. The increase is primarily in salaries and wages. The Governor recommends FY 2019 operating expenditures of $23.3 million, including $12.3 million from the State General Fund. The recommendation is a decrease of $107,440, or 0.5 percent, from all funds and $91,829, or 0.7 percent, from the State General Fund below the agency s request. The decrease is due to the Governor s FY 2016 amount. Wichita State University 2176

25 J. Debt Service The Debt Service program is responsible for payments of the interest on various forms of debt financing within the operating budget. The debt service principal payments are within the capital improvement budget. The agency requests operating expenditures of $5.4 million, all from special revenue funds. This is a decrease of $834,224 or 13.3 percent, below the revised estimate. Two of the four Engineering Research Lab bonds are paid off and the parking garage bond payments begin for FY The Governor concurs with the agency s request for FY 2018 The agency requests FY 2019 operating expenditures of $5.3 million, all from special revenue funds. This is a decrease of $132,718, or 2.4 percent, below the request. The remaining two of the four Engineering Research Lab bonds are paid off in. The Governor concurs with the agency s request for FY Wichita State University 2177

26 CAPITAL IMPROVEMENTS CAPITAL IMPROVEMENTS Agency Est. Agency Req. Agency Req. FY 2019 FY 2019 Rehabilitation and Repair $ 7,813,479 $ 7,813,479 $ 0 $ 0 $ 0 $ 0 NIAR Improvements 100, , , , , ,000 New School of Business , , Henrion Hall Renovations , , Raze Fairmount Towers , ,000 1,000,000 1,000,000 Miscellaneous Projects 185, , , , , ,500 Parking 500, , , , , ,000 Debt Service - Principal 5,135,356 5,135,356 5,800,798 5,800,798 5,313,166 5,313,166 TOTAL $ 13,734,335 $ 13,734,335 $ 7,186,298 $ 7,186,298 $ 7,098,666 $ 7,098,666 Financing: State General Fund $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 Educational Building Fund 7,813,479 7,813, All Other Funds 5,820,856 5,820,856 7,086,298 7,086,298 6,998,666 6,998,666 TOTAL $ 13,734,335 $ 13,734,335 $ 7,186,298 $ 7,186,298 $ 7,098,666 $ 7,098,666 Current Year Agency Estimate Current Year. The agency requests a revised estimate of $13.7 million, including $100,000 from the State General Fund. This is an all funds increase of $6.4 million, or 86.8 percent, and $100,000 from the State General Fund above the approved amount. This mainly is due to the transfer of the Educational Building Fund from the Board of Regents for rehabilitation and repair. There were no approved State General Fund expenditures. The agency budgeted the use of aviation research funds for capital improvements to the National Institute for Aviation Research (NIAR) facility in error. These funds should be in the operating budget. Wichita State University 2178