1 / 19

FY 2012 Budget Update: Strategies for Addressing Deficit and Enrollment Challenges

The FY 2012 budget update presented at the Town Hall Meeting outlines severe financial challenges faced by the university. Despite efforts like reducing full-time positions, implementing a hiring freeze, and adjusting tuition fees, the university remains with a significant budget deficit exacerbated by declining state appropriations and student enrollments. Key strategies for overcoming these hurdles include continued operational cost containment, budget reductions in divisional areas, and proactive enrollment management. These initiatives aim to secure the university's financial sustainability in light of current economic pressures.

winter-walton
Télécharger la présentation

FY 2012 Budget Update: Strategies for Addressing Deficit and Enrollment Challenges

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Budget UpdateOctober 6, 2011

  2. FY 2012 Presented at Town Hall Meeting 10/22/10

  3. FY 2012

  4. FY 2012 • Steps taken when the FY2012 Spending Plan was developed: • Reduced full-time positions from 1,023 to 998 • Continued to achieve operational savings from our ongoing cost • containment program • No funding set aside for strategic initiatives • Tuition and fees were increased by 2.5 percent

  5. FY2012 • Despite these actions, the university was still left with a significant budget deficit due to an extra payroll and the growth of non-general fund expenses.  The following actions were taken to close the gap for FY2012: • The University received board approval to use almost $4 million of reserves to cover the general fund portion of the 27th payroll for FY 2012 • As part of the FY2012 budget preparation, each vice president provided budget reduction outlines for their respective areas. To close the remaining gap, divisional budgets were reduced by $4.7 million. This included holding positions vacant, including temporary one-year faculty appointments, custodial and clerical staff, and administrators • A change in board policy that reduced university CHEFA debt obligations by 20 percent. Several refinance opportunities, along with lower interest rates, saved $1.85 million

  6. FY 2012 Once the concession agreement was finalized, Southern was notified on August 25, 2011 that the State appropriation would be reduced by an additional $4,198,835. The concession agreement reduced Southern salary and fringe expense by $2,880,227, leaving a budget gap of $1,318,608. To close the gap, management positions will be held vacant until March 1, 2012 or longer. Additional reductions were required in non-divisional OE. (*) Note: The 8/25/11 reduction to the Gen’l Fund & FB paid-by-State appropriation is offset by the following expense savings (resulting from employee concessions): Elimination of BU increases $1,831,808 Reduction in Longevity 208,999 Related Fringe Benefit Reduction 839,420 $2,880,227

  7. FY 2012 On September 7, 2011, The University received a third notification that the State appropriation would be further reduced by $1,257,490. To close this gap, it will require holding 16 administrative positions vacant until January 1, 2012 and 1 position for the entire year. Additional reductions were also required in non-divisional OE.

  8. FY 2012 * • NOTE: Net Reduction is 15.9% of the Original FY 2012 Spending Plan State Appropriation • 12,642,151 / 79,471,740 = 15.9%

  9. FY 2012 NOTE: This Trend is Nationwide

  10. FY 2012 The FY2012 Spending Plan was built on an assumption of a 2% enrollment increase. We wanted to “grow” our way out of the effect of our budget reductions.

  11. FY 2012

  12. FY 2012

  13. FY 2012

  14. FY 2012

  15. FY2012 • Current Strategies • Meeting to develop strategies to increase enrollment: • USPaRC • University Budget & Planning • Enrollment Management Council • Continue to hold positions vacant/hiring freeze • Reduce departmental budgets (OE, Student Labor & UA)

  16. FY2012 • In conclusion: • The current path that Southern is following – • Diminishing state appropriations • Shrinking student enrollments • will not sustain Southern as the University we know today

More Related