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Budget Update
March 13, 2009
AGENDA

Overview – President Norton

FY2009 Budget update

FY2010 Budget reductions

Proposed draft Guiding Principles for Budget
Actions

Next Steps for Departmental and Program Review
Unanswered Questions

How much will our budget be reduced?
– State appropriation may not be finalized until May,
June, July….

What financial options may be available to the
State?
–
–
–
–
Retirement incentive
Layoffs
Employee concessions
Salary freeze
*Travel Reduction
*Furlough Days
*20% DAS Fleet Reduction
*Hiring Freeze
*Elimination of nonessential purchases
*Freeze Management
Salaries
Unanswered Questions

Does Southern have the approval to refill critical
positions (Faculty, Health & Safety, etc.) for next
year?

What will our enrollment be for next year?

What will tuition and fees be set at in FY2010?
FY2009 Budget Update
Revenue:
Current
Projection
FY2008





Student Tuition and Fees
$78,400,258
Student Housing & Food
19,420,806
Other Student Fees (app fee, cont. enrollment fee)
4,536,083
– Total Collected from Students
$102,357,147 (57%)
State Appropriation
Fringe Benefits (state contribution for
employee benefits)
– Total State Support
– Other Revenue (rental, interest
earnings, commission)
– Total Revenue
FY2009
$82,286,473
20,145,333
5,084,052
$107,515,858 (59%)
$48,371,011
$47,178,634
24,357,107
$72,728,118 (40%)
23,701,944
$70,880,578 (38%)
$5,645,238 (3%)
$180,730,503 (100%)
$4,823,162
(3%)
$183,219,598 (100%)
FY2009 Budget Update
Revenue:





Original
Current
Projection
FY2009
FY2009
Student Tuition and Fees
$83,499,241
Student Housing & Food
19,610,108
Other Student Fees (app fee, cont. enrollment fee)
5,282,870
– Total Collected from Students
$108,392,219 (59%)
State Appropriation
Fringe Benefits (state contribution for
employee benefits)
– Total State Support
– Other Revenue (rental, interest
earnings, commission)
– Total Revenue
$82,286,473 *
20,145,333
5,084,052
$107,515,858 (59%)
$46,429,633
$47,178,634
24,586,402
$71,016,035 (38%)
23,701,944
$70,880,578 (38%)
$5,351,942 (3%)
$184,760,196 (100% )
* Decrease is attributed to Part Time enrollment decline
$4,823,162
(3%)
$183,219,598 (100%)
FY2009 Budget Update
SOUTHERN’S REVENUE IS
ENROLLMENT DRIVEN
95.8% of revenue is from enrollment
75% of SCSU’s expenditure is personnel driven
FY2009 Budget Update
Remaining 25% is operations:
Current
Projection
FY2009




Utilities
Institutional Financial Aid
Food Service Contract (pass through)
Insurance (pass through)
$8,843,022
7,884,491
5,810,403
3,638,301
26,176,217





Professional Services
Repairs/maintenance Supplies
Library Materials/Books
Equipment
Other Expenses (travel, advertising,
waivers, telecom, office supplies, postage)
4,700,604
2,479,082
2,204,510
1,225,000
9,859,504
20,468,700
Total Operating Expenses
$46,644,917 (25%)
$20,468,700 – Only 10% of budget is discretionary
FY2010 Budget Reduction
Budget Reduction Possibilities
10%
7,795,449 *
15%
11,064,129
20%
14,332,810
25%
18,064,062
30%
21,795,315
* Overall, the State budget gap is greater than 25%
Governor’s current SCSU reduction equals 10%
Each 5% reduction is approximately $3.3 million
FY2010 Budget Reduction
Budget Actions in place this fiscal year to close the FY2010 budget gap

$3,402,710 Currently there are 56 vacant or soon-to-be
vacant non-teaching positions. This
amount represents budgeted savings for FY2010
and includes fringe benefits.






273,858
251,341
295,948
189,213
383,268
Reduced out-of-state travel by 50%
Heating/cooling temperature adjustments
Reduced University Assistants
Reduced Overtime
Reduced associated costs for supplies,
professional services, and food/refreshment
233,341 Management/Confidential salaries frozen for FY2010
$5,029,679
FY2010 Budget Reduction
Additional reductions that can be made to close remaining FY2010
10% budget gap of $2,765,770

$665,736
Not refilling 12 faculty positions that will be vacated by 2
year temporary appointments (includes fringe benefits)
 906,600
Reduce non-contractual reassigned time by 66%
(returns 22.5 FTE faculty to classroom instruction)
 401,558
Additional conservation efforts and price/consumption
analysis for electricity, natural gas, and oil
 618,406
Reduce departmental Operating OE budgets by an
additional 5%
Library materials reduction

110,000

63,470
$2,765,770
Reduce Non-teaching PT positions (includes
fringe benefits)
FY2010 Budget Reduction
Recap

$2,765,770

5,029,679
$7,795,449
Reductions that would have to be
made before July 1, 2009
Reductions in place
Estimated 10% reduction for
FY2010
FY2010 Budget Reduction
Unfortunately, we must be prepared for a
larger reduction in state appropriation
15%
11,064,129
20%
14,332,810
25%
18,064,062
30%
21,795,315
FY2010 Budget Reduction
Tuition/Fee Increase
5% Tuition Rate Increase
@ 300 enrollment increase
(12,000 students) =
$4.0 million
This only takes us to the 15% reduction
FY2010 Budget Reduction
Remember:
This is a short term
plan for July 1, 2009 for FY2010
FY2011 and FY2012 will
require additional reductions
Guiding Principles – Development (draft)

February 12
President Norton charges the University Budget and Planning Committee and the
University Strategic Plan Review Committee with identifying guiding principles which
will frame budget actions
Budget & Planning Committee
Strategic Plan Review Committee
Mr. James E. Blake – Chair
Mr. Eric Anderson
Mr. Peter Boppert
Ms. Lise Brule
Mr. William Burton
Dr. Pamela O. Brucker
Mr. Greg Cochenet
Dr. Nicholas P. Edgington
Dr. Ross B. Gingrich
Dr. James M. Granfield
Dr. Ronald D. Herron
Dr. Peter R. Madonia
Ms. Barbara Mallick
Dr. Gregory Paveza
Ms. Leilannie Quintana
Ms. Megan A. Rock
Mr. Robert G. Sheeley
Ms. Judith A. Sizensky-Searles
Dr. Selase W. Williams
Dr. Marianne Kennedy - Co-chair
Mr. Andrew Marullo
Dr. Angela Todaro
Dr. Annette Madlock
Mr. Brian Johnson
Mr. Christopher M. Piscitelli
Dr. Christine Unson
Dr. Glenda Dejarnette
Mr. Greg R. Crerar
Dr. Kenneth Florey
Dr. Maria Diamantis
Mr. Mark A. Waters
Dr. Nicholas Edgington – Co-chair
Dr. Paul Stepanovich
Dr. David E. Pettigrew
Mr. Ray Kellogg
Dr. Stephen Joyner
Dr. Troy Paddock
Mr. Robert G. Sheeley
Dr. Christina D. Baum
Ms. Judith A. Sizensky-Searles
Guiding Principles – Development (draft)

February 20 Joint meeting of both committees was convened which resulted in
a set of draft principles. It was agreed that a sub-committee
composed of members from both committees would refine the
principles

March 6
Sub-committee met and reached consensus on the final set of draft
principles

March 9
Final draft principles were circulated to both committees for
final comments

March 10
Final draft principles were reviewed at President Norton’s staff
meeting

March 11
Final draft principles were distributed to the University community

March 13
Draft Principles discussed at Town Hall meeting
Guiding Principles (draft)
Overarching Principles
The vision and mission of the university, as stated
in the 2007 – 2012 University Strategic Plan
(USP) will serve as the basis for budgetary
decisions impacting short term and long term
planning
 In recognition that any budget reduction scheme
induces apprehension, the process will be
transparent and effectively communicated to all
constituents of the University

Guiding Principles (draft)
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 consonant with
advancement of the USP
Guiding Principles (draft)

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
Guiding Principles (draft)
Maintain appropriate student, faculty, and staff
access to the campus, and the 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 (draft)
 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
Guiding Principles (draft)
 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
Guiding Principles (draft)

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
NEXT STEPS
Send suggestions/revisions to:
Mr. James Blake – [email protected]
Dr. Nicholas Edgington – [email protected]
Dr. Marianne Kennedy – [email protected]
NEXT STEPS
Academic Departments

Confirm the fall 2009 course schedule, instructor
assignments, effective course rotation and monitor course
fill rate

“Formulate an Academic Program Plan that establishes
clear goals for the advancement of existing academic
programs and sets priorities for new and existing resources.”
(USP goal A.1.)

Responsibility: Department Chairs, Deans and
Provost
NEXT STEPS
Administrative Departments

Assuming zero-based budgeting, what would be your level
of service?
– Assess/survey department’s service objectives
– Prioritize service objectives
– Minimally, what resources are needed to provide these services?
– Who are these services provided to (students, faculty, staff, donors,
others)?
– What would be the impact if these services were no longer
provided?
Responsibility: Vice Presidents, Deans, Directors and
Department Heads
Questions ?