Budget UpdateMarch 13, 2009.ppt

1、Budget Update March 13, 2009,AGENDAOverview President NortonFY2009 Budget updateFY2010 Budget reductionsProposed draft Guiding Principles for Budget ActionsNext Steps for Departmental and Program Review,Unanswered Questions How much will our budget be reduced? State appropriation may not be finalize

2、d until May, June, July. What financial options may be available to the State? Retirement incentive *Travel Reduction Layoffs *Furlough Days Employee concessions *20% DAS Fleet Reduction Salary freeze *Hiring Freeze*Elimination of non-essential purchases*Freeze Management Salaries,Unanswered Questio

3、nsDoes 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:CurrentProjectionFY2008 FY2009 Student Tuition and Fees $78,400,258 $82

4、,286,473 Student Housing & Food 19,420,806 20,145,333 Other Student Fees (app fee, cont. enrollment fee) 4,536,083 5,084,052 Total Collected from Students $102,357,147 (57%) $107,515,858 (59%)State Appropriation $48,371,011 $47,178,634 Fringe Benefits (state contribution for employee benefits) 24,35

5、7,107 23,701,944 Total State Support $72,728,118 (40%) $70,880,578 (38%) Other Revenue (rental, interestearnings, commission) $5,645,238 (3%) $4,823,162 (3%)Total Revenue $180,730,503 (100%) $183,219,598 (100%),FY2009 Budget Update Revenue:CurrentOriginal ProjectionFY2009 FY2009 Student Tuition and

6、Fees $83,499,241 $82,286,473 * Student Housing & Food 19,610,108 20,145,333 Other Student Fees (app fee, cont. enrollment fee) 5,282,870 5,084,052 Total Collected from Students $108,392,219 (59%) $107,515,858 (59%)State Appropriation $46,429,633 $47,178,634 Fringe Benefits (state contribution for em

7、ployee benefits) 24,586,402 23,701,944 Total State Support $71,016,035 (38%) $70,880,578 (38%) Other Revenue (rental, interestearnings, commission) $5,351,942 (3%) $4,823,162 (3%)Total Revenue $184,760,196 (100% ) $183,219,598 (100%)* Decrease is attributed to Part Time enrollment decline,FY2009 Bud

8、get UpdateSOUTHERNS REVENUE IS ENROLLMENT DRIVEN95.8% of revenue is from enrollment75% of SCSUs expenditure is personnel driven,FY2009 Budget UpdateRemaining 25% is operations: CurrentProjectionFY2009 Utilities $8,843,022 Institutional Financial Aid 7,884,491 Food Service Contract (pass through) 5,8

9、10,403 Insurance (pass through) 3,638,30126,176,217 Professional Services 4,700,604 Repairs/maintenance Supplies 2,479,082 Library Materials/Books 2,204,510 Equipment 1,225,000 Other Expenses (travel, advertising, waivers, telecom, office supplies, postage) 9,859,50420,468,700Total Operating Expense

10、s $46,644,917 (25%)$20,468,700 Only 10% of budget is discretionary,FY2010 Budget Reduction Budget Reduction Possibilities10% 7,795,449 *15% 11,064,12920% 14,332,81025% 18,064,06230% 21,795,315 * Overall, the State budget gap is greater than 25%Governors current SCSU reduction equals 10%Each 5% reduc

11、tion is approximately $3.3 million,FY2010 Budget ReductionBudget 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.273,8

12、58 Reduced out-of-state travel by 50%251,341 Heating/cooling temperature adjustments295,948 Reduced University Assistants189,213 Reduced Overtime383,268 Reduced associated costs for supplies,professional services, and food/refreshment233,341 Management/Confidential salaries frozen for FY2010$5,029,6

13、79,FY2010 Budget ReductionAdditional reductions that can be made to close remaining FY201010% 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% (ret

14、urns 22.5 FTE faculty to classroom instruction)401,558 Additional conservation efforts and price/consumption analysis for electricity, natural gas, and oil618,406 Reduce departmental Operating OE budgets by an additional 5%110,000 Library materials reduction63,470 Reduce Non-teaching PT positions (i

15、ncludes fringe benefits)$2,765,770,FY2010 Budget ReductionRecap$2,765,770 Reductions that would have to be made before July 1, 2009 5,029,679 Reductions in place $7,795,449 Estimated 10% reduction for FY2010,FY2010 Budget ReductionUnfortunately, we must be prepared for a larger reduction in state ap

16、propriation 15% 11,064,12920% 14,332,81025% 18,064,06230% 21,795,315,FY2010 Budget ReductionTuition/Fee Increase 5% Tuition Rate Increase 300 enrollment increase (12,000 students) = $4.0 millionThis only takes us to the 15% reduction,FY2010 Budget ReductionRemember: This is a short term plan for Jul

17、y 1, 2009 for FY2010FY2011 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 bu

18、dget actionsBudget & Planning Committee Strategic Plan Review Committee Mr. James E. Blake Chair Dr. Marianne Kennedy - Co-chair Mr. Eric Anderson Mr. Andrew Marullo Mr. Peter Boppert Dr. Angela Todaro Ms. Lise Brule Dr. Annette MadlockMr. William Burton Mr. Brian Johnson Dr. Pamela O. Brucker Mr. C

19、hristopher M. PiscitelliMr. Greg Cochenet Dr. Christine UnsonDr. Nicholas P. Edgington Dr. Glenda DejarnetteDr. Ross B. Gingrich Mr. Greg R. CrerarDr. James M. Granfield Dr. Kenneth FloreyDr. Ronald D. Herron Dr. Maria DiamantisDr. Peter R. Madonia Mr. Mark A. WatersMs. Barbara Mallick Dr. Nicholas

20、Edgington Co-chair Dr. Gregory Paveza Dr. Paul Stepanovich Ms. Leilannie Quintana Dr. David E. PettigrewMs. Megan A. Rock Mr. Ray KelloggMr. Robert G. Sheeley Dr. Stephen Joyner Ms. Judith A. Sizensky-Searles Dr. Troy PaddockDr. Selase W. Williams Mr. Robert G. SheeleyDr. Christina D. BaumMs. Judith

21、 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 principlesMarch 6 Sub-committee met and reach

22、ed consensus on the final set of draft principlesMarch 9 Final draft principles were circulated to both committees for final commentsMarch 10 Final draft principles were reviewed at President Nortons staff meetingMarch 11 Final draft principles were distributed to the University communityMarch 13 Dr

23、aft Principles discussed at Town Hall meeting,Guiding Principles (draft)Overarching PrinciplesThe 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 recognitio

24、n 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

25、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 consonan

26、t 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-t

27、ime 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 a

28、ssets 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, an

29、d 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 reinstate

30、d 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

31、 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

32、 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 Universitys academic and/or programmatic unique strengthsMaintain efforts to prepare students to meet the w

33、orkforce needs of the nation, and particularly the State of Connecticut,NEXT STEPS Send suggestions/revisions to:Mr. James Blake Blakej2southernct.edu Dr. Nicholas Edgington Edgingtonn1southernct.edu Dr. Marianne Kennedy Kennedym4southernct.edu,NEXT STEPS Academic DepartmentsConfirm the fall 2009 co

34、urse 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: Departme

35、nt Chairs, Deans and Provost,NEXT STEPS Administrative DepartmentsAssuming zero-based budgeting, what would be your level of service? Assess/survey departments service objectives Prioritize service objectivesMinimally, 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 ?,