Transcript U.S. Airline Industry 1978-88 Free

Budget Update
September 19, 2008
FY 2008
Spending Plan
TODAY’S BUDGET DISCUSSION
WILL FOCUS ON FY2008 AND FY2009
OPERATING BUDGETS –
This does not include funding for:
1. Capital Projects (new building)
2. Federal, State, and private grants (student aid)
3. Endowment – Scholarships
WHERE DOES THE UNIVERSITY RECEIVE
ITS RESOURCES?
FY2008



Student Tuition and Fees
Student Housing & Food
Other Student Fees (app fee, cont. enrollment fee)
– Total Collected from Students


State Appropriation
Fringe Benefits (state contribution for
employee benefits)
– Total State Support
– Other Revenue (rental, interest
earnings, commission)
– Total Revenue FY2008
$78,400,258
19,420,806
4,536,083
$102,357,147 (57%)
$48,371,011
24,357,107
$72,728,118 (40%)
$5,645,238
(3%)
$180,730,503 100%
95.3% OF SOUTHERN’S REVENUE IS
ENROLLMENT DRIVEN

Total Collected from Students

Appropriation based
on enrollment
$102,357,147
69,849,793
$172,206,940
$172,206,940 / $180,730,503
=
95.3%
HOW ARE THE RESOURCES SPENT?
PERSONNEL

Full Time Personnel
$65,510,293

Part Time Personnel
16,911,256

Additional Compensation
(overtime, longevity)

Fringe Benefits

Total Personnel Costs
4,159,384
32,092,294 *
$118,673,227
* State support is $24,357,107
(66%)
OPERATING EXPENSES









Utilities
Institutional Financial Aid
Professional Services
Food Service Contract
Insurance
Repairs/maintenance Supplies
Library Materials/Books
Equipment
Other Expenses (travel, advertising,
$8,704,094
7,259,423
5,556,605
5,255,285
3,204,938
2,880,674
2,204,510
2,034,669
office supplies, postage)
12,667,266
Total Operating Expenses $49,767,464 (27%)
DEBT SERVICES (per BOT Policies)

System Debt Service

Parking/Residence
Hall Debt Service
Total Debt Service
Total Expenses
Total Favorable
$7,062,542
4,906,068
$11,968,610
(7%)
$180,409,301 100%
$321,202 *
* 1/5th of 1.0% of total budget
HOW ARE SCSU’S DISCRETIONARY DOLLARS
USED TO SUPPORT FUNCTION/PROGRAM?
Instruction
Research
Academic
Support
Library
Scholarships,
Loans
Student Support Services
Institutional Support (Admin)
Physical Plant (Facilities)
Public Service
$63,851,016
2,449,208
8,727,242
6,449,292
7,668,049
19,664,996
20,588,593
16,952,650
435,553
43.50%
1.67%
5.95%
4.39%
5.22%
13.40%
14.03%
11.54%
0.30%
FY 2008 NEW BUDGET INITIATIVES (1.4 million)
FY2008 SUMMARY
 95.3%
funding – student driven
of current budget – spent in support
of academic programs
 61%
 70%
of new dollars = new faculty
FY 2009
Spending Plan
BUDGET DEVELOPMENT FOR FY2009
December 2007 – January 2008

FY2008 mid-year review

Established 08-09 AY financial aid budget

Established guidelines for divisional budgets
February 2008 – April 2008
– Received preliminary FY2009 Spending Plan
guidelines from CSU System Office

Estimated State Appropriation

Final enrollment numbers for state supported funding

Office of Policy & Management (OPM) Inflation factors
THE ORIGINAL BASE BUDGET FOR FY 2009
IDENTIFIED A SHORTFALL OF $4.8 MILLION
($ WE NEED VS $ WE RECEIVE)
WHY?
Original enrollment targets for FY 2008 were not
achieved
+
Other CSUS Universities exceeded their enrollment
goals
=
Reduced share of State Appropriation from fundable
enrollment
Fundable Enrollment
Central
Eastern
Southern
Western
FY2007 Fundable Enrollment
6,955
3,443
7,172
3,694
FY2008 Fundable Enrollment
7,222
3,625
7,132
3,915
FY2008 Student Change
267
3.8%
182
5.3%
- 40
- 0.6%
221
6.0%
FY2008 Original Enrollment Goals
0.1%
2 .8%
2 .0%
2 .0%
FY2008 Distribution Share
32 .71%
16.19%
33.73%
17.37%
FY2009 Distribution Share
32 .99%
16.56%
32 .58%
17.89%
0.26%
0.37%
-1.15%
0.52%
Change in Distribution Share
Impact on Southern's FY2009 Budget
Distribution
Pool
206,180,993
Percentage
Change
x
1.15%
Budget
Change
=
(2,371,081)
OTHER FACTORS THAT
CONTRIBUTED TO SHORTFALL:
 Revised CSUS distribution ($500,000 lost
revenue)
The original budget assumed no vacant
positions
Therefore…

Reexamined FY 2009 enrollment targets with the
Enrollment Management Council
– FT undergraduate > +1.0%
– FT graduate > flat
Resulted in $500,000 increased revenue

Staggered hiring; kept some staff positions vacant
resulting in $1.7 million

Reduced operating expenditures by $1.4 million

Utilize $1.2 million from Unrestricted Reserve
Balance
NOTE: Reserves continue to be in compliance with BOT policy.
ESTIMATED CURRENT UNRESTRICTED RESERVES
Debt Service
$8,600,544
Required per BOT Policy
9,303,668
Designated Reserves
4,373,251
TOTAL
$22,277,463
May 2008 – July 2008

Balanced FY09 Spending Plan was presented to
the Board of Trustees
o June 13, 2008 Reviewed by BOT
o July 17, 2008 BOT approves FY2009 Spending Plan
JULY 2008–GOVERNOR INITIATES A 3% RESCISSION
IMPACT BY EXPENSE CATEGORY
Full Time (turnover)
University Assistants
Part Time Staff
Overtime
All Other P.S. (shift differential)
Fringe Benefits
Other Expenses (consulting & prof. services)
Total
($200,000)
(295,948)
(193,534)
(189,213)
(107,034)
(667,719)
( 383,268)
($2,036,716)
STRATEGIES THAT ARE BEING APPLIED TO
MANAGE THE BUDGET:
•Focus of budget management is adherence to
Strategic Plan
•Enrollment teams:
o Enrollment Management Council
o Enrollment Operations Committee
o Summer Enrollment Committee
o Graduate Council
o Deans Council
• Energy Conservation:
o Locked rate for electricity
o Planned reverse auction for natural gas
o Conservation initiatives (switches, controls, temp.
regulation & light bulbs)
o New electrical & mechanical systems for Earl Hall,
Jennings & Lyman
• Facility Usage:
o Ensure that we are recovering our costs for outside
facility rental
o Pursue opportunities to increase other revenue streams
• Vigilance on the expense side of the budget
HIRING FREEZE - EFFECTIVE MAY 29, 2008
• All administration and faculty positions are
covered by the freeze
• University may request an exemption for public
health and safety reasons
• Every effort must be made to minimize overtime
expense
• There will be no relief from the part-time cap in
the current AAUP collective bargaining agreement
• Use of outside consultants will be closely
scrutinized
• Any management positions that become vacant in
the Fall 2008 will remain vacant at least until
January 2009
OUT-OF-STATE TRAVEL – RESTRICTION
May 29, 2008 – Chancellor Carter requested the
university presidents to authorize out-of-state
travel requests that are “deemed essential to
university business.”
 Exceptions are:
• Contractually–mandated travel
• Student clubs/organizations funded from student
activity funds
• Grant funded travel
Quarterly reports to demonstrate savings
 If savings are not apparent, then an overall
moratorium will be placed on out-of-state travel

WHERE ARE WE NOW?
1.
Expecting another 2% rescission
2.
Developing strategies to increase enrollment
where we have interest and capacity (Graduate
School)
3.
Focusing on recruitment of transfer students
(Compac Agreements)
4.
Working to retain undergraduate students
through to graduation