Town Hall Meetings

Budget Update and PlanningJanuary 11, 2010

Town Hall Meetings

Budget Update and PlanningJanuary 11, 2010

AgendaAgenda

President’s RemarksPresident’s Remarks FY 10 StatusFY 10 Status FY 10 ReductionsFY 10 Reductions FY 11 EventsFY 11 Events FY 11 PrinciplesFY 11 Principles FY 11 AssumptionsFY 11 Assumptions Enrollment ProjectionEnrollment Projection FY 11 Revenue and Expense ProjectionsFY 11 Revenue and Expense Projections FY 11 Process/StrategiesFY 11 Process/Strategies FY 12 and FY 13 OutlookFY 12 and FY 13 Outlook QuestionsQuestions

FY 06 Budget ExpendituresPresident’s RemarksPresident’s Remarks

Budget Decision Principles Maintain Integrity of Mission Four Distinctive Characteristics

Accessibility that leads to success Character that reflects our region Education that drives knowledge to

action A portfolio of distinctive programs

http://www.stcloudstate.edu/adminaffairs/budget/http://www.stcloudstate.edu/adminaffairs/budget/documents/documents/GeneralUniversityBudgetdecisonprinciples2.pdfGeneralUniversityBudgetdecisonprinciples2.pdf

FY 06 Budget ExpendituresFY 10 StatusFY 10 Status

FY 2010 Budgets December 2009

Revenue: 143,281,872

Carryforward 1,900,000

Enrollment Increase 150 FTE (14,700) 834,975

MnSCU Interest Income Reduction (350,000)

Total Revenue 145,666,847

Expenditures: (145,281,872)

Additional Expenses (1,000,000)

Total Expenses (146,281,872)

Balance: (615,025)

Reserves: 7,000,000

Summer School RevenueSummer School Revenue 300,000300,000 Continued Studies RevenueContinued Studies Revenue 150,000150,000 Unclassified Salary SavingsUnclassified Salary Savings 100,000100,000 UtilitiesUtilities 75,000 75,000 TotalTotal 625,000625,000

FY 10 ReductionsFY 10 Reductions

Budget Advisory GroupBudget Advisory GroupFY 11 Events

Supply and Equipment PlanningSupply and Equipment Planning Budgets Forms IssuedBudgets Forms Issued Planning within Vice Presidential UnitsPlanning within Vice Presidential Units Continuing ConsultationContinuing Consultation Allocation from the Office of the Allocation from the Office of the

ChancellorChancellor

Budget Advisory GroupBudget Advisory GroupFY 11 Events

Town Hall March, 2010Town Hall March, 2010 Report to Office of the Chancellor Report to Office of the Chancellor

and House Committee March, and House Committee March, 20102010

Budgets Entered June, 2010Budgets Entered June, 2010 Start of FY 11 on July 1, 2010Start of FY 11 on July 1, 2010

Budget Advisory GroupBudget Advisory GroupFY 11 Budget Planning

Possibilities for FY 2011: SCSU Impact

Budget imbalance FY 2010 (615,025)

Carryforward funds used to balance FY 2010 budget (1,900,000)

If the MnSCU appropriation is reduced $50 million: (5,189,634)

If the MnSCU appropriation is reduced $75 million: (7,784,451)

Insurance increases at 6.7% effective Jan. 2011: (875,000)

Employees receive steps per contract: (1,100,000)

If utilities increase by 3%: (195,000)

Debt service increases by projected amount (1,229,358-1,037,928): (192,000)

If ARRA funds are rescinded: (4,347,470)

(Tuition amount is $1,573,592, Operations amount is $2,773,878)

Tuition increase of 5% based on enrollment of 14,725 FYE less ARRA funds: 3,925,000

(Includes enrollment adjustment and tuition increase)

If the Awards of Excellence funds are offset against reduction: 341,220

Enrollment Projection

13,000

13,500

14,000

14,500

15,000

Stu

den

ts

Fiscal Year

FYEFY 2002 through 2009

Total FYE Enrollment

Projected Enrollment

FY 06 Budget Expenditures

FY 11 Revenue and Expense FY 11 Revenue and Expense ProjectionsProjections

Low Scenario High ScenarioRevenue FY 2010: 146,116,847 146,116,847 Tuition: - 3,925,000 Awards of Excellence - 314,220 Total: 146,116,847 150,356,067

Expenditures: (145,281,872) (145,281,872)FY 2010 Budget Imbalance (615,025) (615,025)Prior Year Carryforward (1,900,000) (1,900,000)Appropriation Reduction (7,784,851) (5,189,634)Insurance Increases (650,000) (650,000)Employee Step Increases (1,100,000) (1,100,000)Utilities Increase (195,000) (195,000)Debt Service (192,000) (192,000)Subtotal (158,718,748) (156,123,531)Gap (12,601,901) (4,767,464)

ARRA funds rescinded (4,347,470) -

Revised Gap (15,949,371) (4,767,464)

FY 11 Process/StrategiesFY 11 Process/Strategies

Planning Guide of 10% Reduction in Planning Guide of 10% Reduction in Expense by Vice-Presidential UnitsExpense by Vice-Presidential Units

Organizational EconomiesOrganizational Economies Operation of “Centers” Program Offerings Consider Program/Market Rate TuitionConsider Program/Market Rate Tuition Tuition Waivers/StipendsTuition Waivers/Stipends

FY 11 Process/StrategiesFY 11 Process/Strategies

Direct and Indirect Cost AllocationDirect and Indirect Cost Allocation Leave Without PayLeave Without Pay Work Force AnalysisWork Force Analysis Printing and Major Supply ItemsPrinting and Major Supply Items Consider Key Strategic InvestmentsConsider Key Strategic Investments

FY 12 & FY 13 OutlookFY 12 & FY 13 Outlook

FY 2012 and 2013 Biennial Budget Planning as of December, 2009

Projected $5.4 Billion State Deficit

MnSCU Share is 3.9% of State

SCSU share is 10.42% share of MnSCU

Potential FY 2012 and 2013 Biennium Budget Reduction:

(21,944,520)

FY 12 & FY 13 OutlookFY 12 & FY 13 Outlook

Possible Base Changes from FY 11: FY 12 FY 13

If SCSU share of MnSCU appropriation is distributed

(10,972,260)

If Salaries are adjusted at 2% (based on FY 11 Salaries)

(1,920,000)

(1,960,000)

If Fringe Benefits increase based on salary adjustment

(600,000)

(625,000)

If Health Insurance increases16.5% Jan. 2011, 8% Jan. 2012

(1,500,000)

(2,300,000)

Debt Service MnSCU calculated

(244,174)

(401,869)

ARRA funds discontinued

(4,347,470)

Tuition increase of 8% based on enrollment of 14,750

4,300,000

Tuition Increase of 5% based on enrollment of 14,780   4,800,000 

Budget Gap

(15,283,904)

(486,869)

www.stcloudstate.edu/budget

~Questions~~Questions~

Budget WEB site URLBudget WEB site URL