Transcript Slide 1
Budget Update October 22, 2010
Today’s Presentation
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Budget Summaries
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FY2010 Results
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FY2011 Update
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FY2012 Projection
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Next Steps
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Budget Updates – Town Hall Meetings
September 19, 2008 November 7, 2008 March 13, 2009 March 5, 2010 October 22, 2010 (Today) All presentations are posted on the Finance and Administration web site under “What’s New”
http://www.southernct.edu/finadm/whatsnew/
SCSU Personal Services History Personal Services 2006 2007
Full-Time Personnel Lecturer Teaching Lecturer Non Teaching University Assistants 58,815,523 8,314,200 772,469 2,140,279 61,376,973 9,360,084 745,817 2,126,285
2008
65,815,182 967,903 2,136,212
2009
69,611,436 9,751,694 10,306,113 826,823 1,624,351
2010
62,966,390 11,502,143 755,707 1,382,642 Over time Rehire Retirees 1,006,099 77,082 1,083,783 156,831 1,213,605 273,428 869,175 295,923 859,397 550,811
Total $71,125,652 $74,849,773 $80,158,024 $83,533,821 $78,017,090
SCSU Expenditure History Expenditures 2006 2007
Conferences 500,397 633,692
2008
769,403
2009
527,586
2010
579,202 Bad Debt Expense Credit Card Fees Travel Out of State Office Supplies Electricity Heat
Total
369,367 576,619 307,729 453,919 3,193,919 1,898,175
$7,300,125
337,364 642,821 445,822 507,430 4,086,393 1,888,492
$8,542,014
150,756 801,973 510,664 561,869 4,748,429 2,373,396
$9,916,490
(680,117) 781,003 127,895 493,162 4,471,298 1,746,030
$7,466,857
(365,228) 873,032 186,270 435,143 4,604,072 1,645,840
$7,958,331
SCSU Revenue History Revenues
Tuition & Fees
2006 2007 2008 2009
70,800,466 75,601,175 79,300,061 85,187,399
2010
89,481,497 State Appropriation 65,339,670 69,907,481 74,718,887 70,804,254 Interest Income 2,039,496 2,967,918 2,510,138 944,949 70,104,864 219,832
Operating Fund Balance by Fiscal Year FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
Net Income or (Loss) Ending Fund Balance with Comp Abs Less- Comp Abs Liability Ending Fund Balance ($2,413,607) ($9,434,954) ($2,640,703) ($1,292,342) $6,482,909 $1,411,483 $2,077,937 $3,333,082 $2,316,763 ($1,043,254) 11,150,517 (7,672,191) 4,952,733 (8,894,206) 2,085,421 (8,667,597) 155,114 (8,029,632) 6,948,696 8,890,296 10,873,322 14,965,718 17,638,848 (8,340,253) (8,870,370) (8,775,459) (9,534,773) (9,891,140) 15,848,937 (9,144,483) $3,478,325 ($3,941,473) ($6,582,176) ($7,874,518) ($1,391,557) $19,926 $2,097,863 $5,430,945 $7,747,708 $6,704,454
Operating Fund Balance by Fiscal Year FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
Net Income or (Loss) Ending Fund Balance ($2,413,607) ($9,434,954) ($2,640,703) ($1,292,342) $6,482,909 $1,411,483 $2,077,937 $3,333,082 $2,316,763 ($1,043,254) Ending Fund Balance with Comp Abs 11,150,517 Less- Comp Abs Liability (7,672,191) 4,952,733 (8,894,206) 2,085,421 (8,667,597) 155,114 (8,029,632) 6,948,696 8,890,296 10,873,322 14,965,718 17,638,848 (8,340,253) (8,870,370) (8,775,459) (9,534,773) (9,891,140) 15,848,937 (9,144,483) $3,478,325 ($3,941,473) ($6,582,176) ($7,874,518) ($1,391,557) $19,926 $2,097,863 $5,430,945 $7,747,708 $6,704,454
FY 2010
FY2010 FY 2009-2010 Income Statement Comparison Tuition & Fees Room/Board State Appropriation Interest Income All Other Revenue Total Revenue Full-Time Salary Expenses Part-Time Salary Expenses Lecturers- Teaching & Non Teaching Salary Expenses University Assistants Salary Expenses Graduate Assts. & Interns Salary Expenses Student Labor Salary Expenses Other Salary Expenses Fringe Expenses Total Personnel Services Expense Total OE & Equipment Total Transfers FY09 $ 85,187,399 18,906,558 70,804,254 944,950 2,817,370 178,660,531 69,611,436 1,526,622 11,132,937 1,624,351 508,797 2,870,936 4,504,376 34,971,197 126,750,651 41,597,595 11,355,538 FY10 $ 89,481,497 20,404,218 71,513,160 219,832 5,165,542 186,784,249 62,966,390 1,634,441 11,938,703 1,382,643 552,685 2,799,304 3,131,036 34,218,974 118,624,176 44,467,607 10,826,466 Change $ 4,294,098 1,497,660 708,905 (725,118) 2,348,172 8,123,717 (6,362,610) 107,495 815,370 (209,532) (24,676) (116,131) (1,340,135) (694,981) (8,126,475) 2,055,479 (95,341) Net Income /(Loss) (1,043,254) $ 12,866,000
FY2010 Operating Fund Balance and Commitments
Net Income or (Loss) Ending Fund Balance with Comp Abs Less-Comp Abs Liability Ending Fund Balance
Actions to Effect FY2011 State of CT Reduction of General Fund Appropriation (SCSU Portion) Unfunded Contract Mandates- FY2011 Actions to Effect FY2012 27th Payroll (Operating portion)* * Assumes that the General Fund protion is funded in FY2012 as requested.
Actions to Effect FY2013-15 RIP from FY2009- Vacation & Sick Accrual Payouts Total Ending Fund Balance with action to effect FY2011-2015 FY2010
$ 12,866,000 29,225,469 (9,655,015) 19,570,454
(3,812,567) (2,004,793) (1,510,343) (2,547,821)
$ 9,694,930
Budget Update
Brenda L. Sisco, Acting Secretary for the Office of Policy and Management outlined the following in her letter to State agency heads on August 13, 2010:
“The fiscal and economic situation facing the state will present extraordinary challenges for the next biennium.”
• • • • The State of Connecticut: Has borrowed over $900 million to close the FY2009 deficit Balanced the FY2009 – 2011 biennium by exhausting the $1.3 billion rainy day fund and using approximately $1.7 billion in federal stimulus funds (that will not be available in the next biennium FY2011 – 2013).
Did not fully fund the state’s pension obligations Is planning to borrow approximately $700 million to balance the FY2011 budget.
Budget Update What are some of the actions that have occurred since we last met:
• • • • • May 7, 2010 - Governor signs legislation that $13 million in non General Fund moneys will be transferred to the State in FY2011. SCSU’s share of the transfer was $3,812,567.
June 15, 2010 - CSUS was notified by the Office of Policy and Management that the General Fund block grant was reduced by $246,129. SCSU’s share was $72,183.
July 21, 2010 - BOT approves SCSU’s FY2011 Spending Plan and the CSUS’s FY2011 – 2013 Biennial Budget Current Services Request.
August 5, 2010 - Universities are asked to present reduction plans to Trustee Angelo J. Messina.
August 13, 2010 – CSUS received instructions from the Office of Policy and Management for the FY2011 – 2013 Biennium Budget Request. Instructions included an option for a 15% reduction.
Budget Update August 5, 2010 Budget Presentation to Trustee Messina and Chancellor Carter
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The following strategies were presented to close a 20% reduction representing $14,116,722:
$3,280,000 Represents reduction of SCSU’s OE base that has already occurred as part of the ongoing cost containment program $2,000,000 Proposed reductions that will be implemented in FY2011 – Reduction of credit card fees – Realignment of expenses from University’s operating fund to self-supporting activities – Other efficiencies $1,380,000 Increase FY2012 enrollment by 2% – Increase transfer students – Increase graduate students – Increase continuing students through retention efforts $3,505,213 Capture FY2011 turnover savings (salary and fringe) that will be applied to FY2012. Note that this is a one-time strategy.
$3,951,479 Reduce full-time positions by 42 – 50 positions
FY 2011
FY 2011 Budget adjustments that have occurred in FY2011
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SCSU is required to transfer $3,812,567 in fund balance to the State General Fund.
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SCSU State Appropriation reduced by $72,183.
FY 2011
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Fall 2010 Enrollment as of the Third Week Census:
Freshman cohort: 1,248 students; just two short of 1,250 goal New transfer students: a record 947 students Overall Graduate students: up 2% from Fall 2009 (1,000 students) Part time Undergraduate students: up 4.4% or 54 students Part time Graduate students: down 2.4% or 53 students • • •
Retention:
First Year retention rate was 78.3% (down 1.4% from previous year) Second Year retention rate of 67.2% (up 4.6% from previous year) Third Year retention rate of 58.3% (up 4.3% from previous year) • •
Results/impact
Overall head count is up 1.3 % or 149 students Overall FTE is up 2 % or 183 FTE’s
FY 2011 Spending Plan: Bargaining Unit AAUP Teaching Total Positions 444 Total Dollars Projected Positions $33,947,161 424 Projected Actuals $32,829,685 Projected Year-End Variance Fringe Benefit Savings Total Projected Savings 20 $1,117,476 $420,506 $1,537,982 Counselors Librarians Coaches Clerical Maintenace A & R Protective Services Healthcare SUOAF Mgt Confidential 129 130 12 3 14 24 237,734 1,102,956 1,493,204 5,987,842 5,578,948 786,146 26 1 1,522,227 92,468 198 14,443,990 42 4,701,485 26 3 200 41 129 125 12 3 14 24 239,732 1,090,590 1,488,772 5,994,124 5,100,726 770,391 1,550,044 267,614 14,855,531 4,765,215 (2) (2) 1 5 (1,998) 12,366 4,432 (6,282) 478,222 15,755 (27,817) (175,146) (411,541) (63,730) (752) 4,653 1,668 (3,774) 303,862 9,032 (15,736) (99,781) (159,966) (22,943) (2,750) 17,019 6,100 (10,056) 782,084 24,787 (43,553) (274,927) (571,507) (86,673) Grand Total 1,023 $69,894,161 * 1,001
* position count is 952 as of 09/23/10 payroll.
$ 68,952,423 22 $941,737 $436,769 $1,378,506
FY 2012
FY 2012 SCSU's STATE APPROPRIATION
State Appropriation Fringe Benefits Paid by State
Total FY 2011
$ 44,820,178 25,948,632
$ 70,768,810 FY 2012 *
$ 50,449,092 29,022,648
$ 79,471,740
* FY 2012 request reflects the following:
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Impact of 27th Payroll
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FY2012 Bargaining unit (BU) increases
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FY 2011 BU increases not previously covered by the State
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Annualization impact of FY11 new hires
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Fringe Benefits on all of the above
FY 2012
The CSUS was required to submit a budget option for a 15% reduction in its State Appropriation.
SCSU’s Share is:
5% 10%
SCSU Share:
$3,973,587 $7,947,174
15%
$ 11,920,761
20%
$15,894,348
FY 2012 What are some of the important budget actions that will occur this year?
• On or before November 15 will present the Governor elect with a proposed FY2011 – 2013 biennial budget.
th the Office of Policy and Management • • • • Early February 2011 the Governor will present his recommended Biennial Budget to the Legislature for its review and approval.
Either at the close of the legislative session or in special session the FY2011 – 2013 Biennial Budget will be approved.
Governor will approve/sign the budget to open the new fiscal year 2012.
July 2011 Board of Trustees will approve the FY2012 Spending Plan.
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FY 2012 SPENDING PLAN ASSUMPTIONS
State Appropriation reduced by 15% 2% FT Enrollment Increase No Tuition & Fee Increase (except Insurances) Full Time PS budget fully annualized Full Time PS reflects no furlough days Full Time PS reflects BU increases PS includes 27th Payroll OE base reduced by $3,280,000-cost containment program already in place OE base reduced by $2,000,000 OE-additional cost containment initiatives in FY2011 OE base after above reductions reflects 1.1% inflation Financial Aid set-aside is at 15% When the above assumptions are applied to SCSU’s Spending Plan, the projected deficit is $5,994,946
Guiding Principles (March 2009)
• • • • • • • • Support and enhance the student academic experience Support and enhance the student life experience on campus – – Provide for sufficient qualified faculty and staff and an academically sound faculty/student ratio to support the teaching-learning mission of the university Prevent lay-offs of full-time faculty and staff Address budgetary gaps caused by vacancies (e.g., early or scheduled retirements) in a manner consistent with advancement of the USP Maintain enrollment to reflect appropriate mix of students (11,800 and 12,300 students –distributed through retention, transfer students, part-time students and a growing graduate student population, with a maximum enrollment of 1,350 for full-time entering freshman) Maintain a healthy (both physical and psychological) campus environment Maintain appropriate student, faculty, and staff access to the campus and University services, such that student success and learning are not impinged Ensure that University assets are safeguarded Comply with all governing laws, policies and procedures set forth by governing bodies (Federal, State, NEASC, CSUS BOT) and accrediting bodies for academic programs/schools within the University
• • • • •
Guiding Principles (March 2009)
Make budget decisions that are driven by facts, data, and reasonable projections without ignoring core values as identified in the USP – – – Do not eliminate a function that we think would have to be reinstated in the near future (2 years) No use of reserves (balanced budget FY2010) Reduce costs in areas that focus on one time expenditures and can be reinstated quickly when the economy changes (positively) – – Establish alternative revenue streams Before functions (resources, services, programs) are cut, alternative ways of meeting the needs those functions provide must be determined as expeditiously as possible Support faculty and staff efforts to receive external grants In dire budget crises where functions that advance the University Strategic Plan are adversely impacted by cost saving or revenue producing measures (e.g. increased student enrollment with decreased human resources to meet academic and support needs of those students), those functions will be given priority consideration for reallocation/allocation of resources when the economy changes positively Continue support for our University’s academic and/or programmatic “unique strengths” Maintain efforts to prepare students to meet the workforce needs of the Nation, and particularly the State of Connecticut
These Principles give us guidance but do not solve (close) the gap.
Options to close the Gap
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Hold positions vacant
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Increase Enrollment
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Other Efficiencies
This gap of $5,994,996 might be closed by the following:
Hold Vacant 61 full time positions 61 x $ 99,077 * = $6,043,697 * Median salary with fringe benefits
PERSONNEL
SUMMARY OF SEPARATIONS BY FISCAL YEAR Bargaining Unit
Faculty Counselors Librarians Coaches A & R Clerical Maintenance Protective Services SUOAF Mgt
Total FY2004
12 1 1 4 17 3 10 5
53 FY2005
24 2 6 9 16 4
61 FY2006
28 1 1 11 6 2 11 2
62 FY2007
24 6 9 11 3
53 FY2008
38 2 5 5 5 8 1
64 FY2009 * 52 2 19 8 132 2 2 1 24 22 FY2010
25 1 1 2 1 1 3 3
37 Average 25 1 1 6 8 2 10 3 55 * Note: FY 2009 is excluded from the calculation of the average because of the Retirement Incentive Program.
Average FY2012 Salary 55 positions to remain vacant Average Position X Dollars
$ 76,862
$1,921,551
76,420 76,078 60,444 65,267 48,862 42,607
76,078 60,444 293,174 340,852
58,786 73,306 106,983
$68,329 117,571 733,060 320,950 3,863,680
F/B @ 45%
1,738,656 $5,602,336
Example of Possible Solutions
50 Undergraduate students (in-state) generate 50 x $6,049 = $302,450 50 Graduate students (in-state) generate 50 X $6,889=$344,450 Every additional 100 students generate additional revenue of $646,900, which funds an average of 6.5 full time positions.
WHAT IS THE BIGGEST CHALLENGE IN CLOSING THE GAP?
The biggest challenge will be determining what positions are to be held permanently vacant.
Guiding Principles (March 2009)
“
Address budgetary gaps caused by vacancies (e.g., early or scheduled retirements) in a manner consistent with advancement of the USP”
Planning Process:
• Nov 2010 to Jan 2011 • February 2011 • March 2011 Administrative budget review Academic program review Vice Presidents’ recommendations for divisional 5%, 10%, 15% and 20% reductions Cabinet Review Town Hall Meetings