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UNIVERSITY BUDGET PRESENTATION May 3, 2019

UNIVERSITY BUDGET PRESENTATION May 3, 2019. UNIVERSITY BUDGET PRESENTATION May 3, 2019. UNIVERSITY BUDGET PRESENTATION May 3, 2019. PART 1: FY 19 University Budget. PART 2: Mandatory Fee Funded Areas. PART 3: FY 19 Financial Performance. PART 4: FY 20 University Budget.

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UNIVERSITY BUDGET PRESENTATION May 3, 2019

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  1. UNIVERSITY BUDGET PRESENTATION May 3, 2019

  2. UNIVERSITY BUDGET PRESENTATION May 3, 2019

  3. UNIVERSITY BUDGET PRESENTATION May 3, 2019 PART 1: FY 19 University Budget PART 2: Mandatory Fee Funded Areas PART 3: FY 19 Financial Performance PART 4: FY 20 University Budget PART 5: Future Challenges

  4. PART 1: FY 19 University Budget

  5. FISCAL YEAR 2018-19 BUDGET $113,021,700 Total has deducted approximately $20 million in “pass through” expenses related to Pell Grants and foundation scholarship funding

  6. $113,021,700 CSU total has deducted approximately $20 million in “pass through” expenses related to Pell Grants and foundation scholarship funding Source= USG website

  7. $113,021,700

  8. $113,021,700 Total has deducted approximately $20 million in “pass through” expenses related to Pell Grants and foundation scholarship funding

  9. $44,649,537

  10. $44,649,537

  11. $42,996,424

  12. $42,996,424 Source= USG website

  13. STATE APPROPRIATIONS AS A PERCENTAGE OF TOTAL CSU FUNDING Some variables of this ratio were estimated in order to reflect impact of reducing Pell Grant expenses from previous year budgets

  14. STATE APPROPRIATIONS AND TUITION + INSTITUTIONAL FEE + MANDATORY FEESAS A PERCENTAGE OF TOTAL CSU FUNDING Some variables of this ratio were estimated in order to reflect impact of reducing Pell Grant expenses from previous year budgets

  15. PART 2: Mandatory Fee Funded Areas

  16. $10,466,896 Total has deducted approximately $20 million in “pass through” expenses related to Pell Grants and foundation scholarship funding

  17. $10,466,896

  18. STUDENT RECREATION CENTER FEE FUNDING & MISC REVENUE VERSUS EXPENSES 2013 FUND BALANCE= $2,273,971 PROJECTED 2022 FUND BALANCE= ($201,558)

  19. RECREATION CENTER BOND REFINANCING • IN MARCH 2019, USG REFINANCED $24,215,000 OUTSTANDING BALANCE OWED BY CSU FOR CONSTRUCTION OF STUDENT RECREATION CENTER • GOAL OF REFINANCING WAS TO LOWER ANNUAL PAYMENTS DUE FROM CSU OVER THE REMAINING TWENTY YEARS OF BOND DEBT PAYMENT PERIOD • REFINANCING LOWERED INTEREST EXPENSE FROM 6.04% TO 3.62% • LOWERED INTEREST RATES PRODUCED TOTAL SAVINGS TO CSU OF $8,327,111 OVER TWENTY YEARS • AS A RESULT, CSU’s DEBT SERVICE PAYMENTS WILL DECREASE, ON AVERAGE $416,355 ANNUALLY

  20. STUDENT RECREATION CENTER FEE FUNDING & MISC REVENUE VERSUS EXPENSES After Refinancing 2013 FUND BALANCE= $2,273,971 PROJECTED 2022 FUND BALANCE= 778,857

  21. ATHLETICS FEE FUNDING & MISC REVENUE VERSUS EXPENSES 68% subsidy level Board of Regents approved maximum subsidy level= 80%. Dashed line here estimates CSU’s spending level if their current subsidy level of 67% grew to 80%

  22. PART 3: FY 19 Financial Performance

  23. ENROLLMENT TREND THROUGH FALL 2017

  24. 2018-19 FINANCIAL CHALLENGE 4.47% decrease versus 2017

  25. $44,649,537

  26. $43,149,537 $1,500,000 shortfall versus budget IMPACT OF ENROLLMENT SHORTFALL Total has deducted approximately $20 million in “pass through” expenses related to Pell Grants and foundation scholarship funding

  27. $113,021,700

  28. $727,000 approved permanent increases to budgets

  29. $727,000 approved permanent increases to budgets • Art Department Chair funding (salary plus benefits)= $150,000 • Three positions moved to state funded= $140,000 • Faculty Promotions funding= $100,000 • Athletic sports information and training room expenses moved to state funded account= $100,000 • Remaining funding for Cybersecurity faculty position plus benefits= $85,000

  30. $727,000 approved permanent increases to budgets • DUO - Two Factor Authentication= $45,000 • USG eliminated fee supporting RN to BSN Academic Coaches at mid year= $50,000 • Increased Orientation and Camp PROWL programming= $32,000 • Increased cost of assessment management software not budgeted= $25,000

  31. $568,000 approved one time increases to budgets

  32. $568,000 approved one time increases to budgets • EAB Enrollment / Recruitment support software= $468,000 • Increased support of Academic Affairs research initiatives= $100,000

  33. TUITION REVENUE SHORTFALL= $1,500,000 PLUS APPROVED PERMANENT INCREASES TO BUDGETS= $727,000 PLUS APPROVED ONE-TIME INCREASES TO BUDGETS= $568,000 TOTAL FY 19 FINANCIAL CHALLENGE= $2,795,000

  34. ADDRESSING THE FINANCIAL CHALLENGE= $2,795,000 • Over thirty positions open for all or part of 2018-19= $1,400,000 • Actual benefit expenses projected to be less than budgeted amount= $1,000,000 • Contingency built into budget= $415,000 POTENTIAL YEAR END SURPLUS= $0 TO $500,000

  35. PART 4: FY 20 University Budget

  36. FISCAL YEAR 2019-20 PROJECTED BUDGET $116,886,710 Total has deducted approximately $20 million in “pass through” expenses related to Pell Grants and foundation scholarship funding

  37. FY 20 FUNDING INCREASES ENROLLMENT EARNINGS= $1,196,610 2.5% UNDERGRADUATE / 2% GRADUATE TUITION APPROXIMATE INCREASE= $920,000 2% MERIT RAISES = $867,262NEW SALARY FUNDS PARTIAL OFFSET OF E-TUITION= $265,500 ACTUAL E-TUITION REVENUE REDUCTION IS APPROXIMATELY $540,000. CSU HAS IMPLEMENTED EXPENSE SAVINGS (TO BE DISCUSSED LATER) TO OFFSET THE TOTAL E-TUITION REVENUE REDUCTION ENHANCEMENT FOR STUDENT SUCCESS= $120,000 HEALTH INSURANCE & RETIREE CHARGE= $100,579

  38. FY 20 FUNDING INCREASES TEACHER’S RETIREMENT SYSTEM= $38,884 USG’s “KNOW MORE, BORROW LESS” INITIATIVE= $34,000 STATE FUNDING COVERING MAINTENANCE & OPERATING COST OF NEW FACILITIES= $26,269 DEPARTMENT OF ADMINISTRATIVE SERVICES (DOAS) PREMIUMS= $24,013 TOTAL NEW FUNDING= $3,593,117

  39. CHARGES AGAINST CSU FUNDING RESULTING FROM USG INITIATIVES FUND HEALTH INSURANCE & RETIREE CHARGE= $100,579 FUND TEACHER’S RETIREMENT SYSTEM= $38,884 FUND USG’s “KNOW MORE, BORROW LESS” INITIATIVE= $34,000 FUND MAINTENANCE & OPERATING OF NEW FACILITIES= $26,269 FUND DEPARTMENT OF ADMINISTRATIVE SERVICES (DOAS) PREMIUMS= $24,013 TOTAL CHARGES RESULTING FROM USG INITIATIVES= $243,745

  40. CHARGES AGAINST CSU FUNDING RESULTING FROM CSU INITIATIVES FUND 2% MERIT INCREASES TO STATE AND TUITION FUNDED POSITIONS= $867,262 APPROXIMATELY $230,000 IN ADDITIONAL MERIT INCREASES WILL BE FUNDED BY NON STATE & TUITION FUNDING SOURCES REDUCTION TO FUNDING TO REFLECT FALL 2018 ENROLLMENT DECLINE= $700,000 UTILIZE USG’s STUDENT SUCCESS FUNDING TO SUPPORT ADDITION OF TWO ACADEMIC ADVISORS= $120,000 TOTAL CHARGES RESULTING FROM CSU INITIATIVES= $1,687,262

  41. TOTAL NEW FUNDING= $3,593,117 LESS • CHARGES RESULTING FROM USG INITIATIVES= $243,745 LESS • CHARGES RESULTING FROM CSU INITIATIVES= $1,687,262 TOTAL AVAILABLE FOR ALLOCATION= $1,662,110

  42. $1,662,110 USES OF FUNDS AVAILABLE FOR ALLOCATION ADDRESS FY 19 APPROVED INCREASES TO BUDGETS = $727,000

  43. $1,662,110 USES OF FUNDS AVAILABLE FOR ALLOCATION LESS ADDRESS FY 19 APPROVED INCREASES TO BUDGETS = $727,000 ADDRESS FY 19 APPROVED INCREASES TO BUDGETS = $727,000 TOTAL AVAILABLE FOR NEW INITIATIVES= $935,110

  44. $935,110 USES OF FUNDS AVAILABLE FOR NEW INITIATIVES • FACULTY SALARY INCREASES TO MAINTAIN 90% OF MEDIAN= $365,000 • STAFF SALARY INCREASES TO REACH 90% OF MEDIAN= $160,000 • TWO FULL TIME PROFESSORS FOR ROBOTICS ENGINEERING PROGRAM (INCLUDES BENEFITS)= $410,110

  45. Remaining FY 20 Funding Needs= $5,000,000 • Information Technology infrastructure upgrade= $4,000,000 • Center for Transformational Learning (staffing and operating budget) = $200,000 • “Create You” branding; additional advertising= $200,000 • Increased funding for Orientation and Camp PROWL= $200,000 • Funding to support increases to raises received by faculty promoted from Associate Professor to full time Professor from $5,000 to $10,000 per position= $100,000

  46. Remaining FY 20 Funding Needs= $800,000 • Operating budget increase to support Academic Affairs Innovation Fund= $100,000 • Upgrade campus wide credit card processing software to assure compliance with existing regulations= $100,000 • Musicology Faculty position (includes benefits)= $70,000 • Funding to support School of Communication expenses previously funded by course fees= $30,000

  47. Potential Sources of Funding Required to Address Remaining FY 20 Funding Needs= $5,000,000 • Reallocations • Cost savings identified by CAR Innovation Hub • Utilization of existing contingency funds and / or funding available at year end • USG small capital project funding (potential funding source for IT infrastructure upgrade)

  48. PART 5: Future Challenges

  49. FUNDING REDUCTIONS RESULTING FROM USG LONG TERM INITIATIVES ELIMINATION OF TUITION DIFFERENTIAL CHARGED TO ONLINE UNDERGRADUATE STUDENTS CSU REQUIRED TO ELIMINATE DIFFERENTIAL OVER A THREE YEAR PERIOD 2020-21 2019-20 2018-19 REQUIRED TOTAL FUNDING REDUCTION OVER THREE YEAR PERIOD: $2,500,000

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