Understanding the UMass Boston Budget Finance and Administration Advisory Group March 2009 REVENUE 2 State Appropriation and Tuition & Fees Are 2 Largest Sources of Revenue 3 FY08 Revenue from All Sources Totaled $274.7M. 39.8% 35.1% 19.3% 3.3% 0.7% 0.6% 0.5% 0.7% Over Time, UMass Boston Has Become Increasingly Dependent upon Tuition & Fees 4 Understanding Our Revenue Sources: State Appropriation vs. Tuition and Fees 5 As the graph on the previous page illustrates, over time, UMass Boston has become increasingly dependent upon tuition and fees to fund its operations. The FY08 state appropriation represented about 40% of UMass Bostons total revenue, a decrease of 35% compared to FY85. This change is the result of previous state budget cuts and the fact that, even in good times, the state appropriation has grown more slowly than our salary expenses. Recent budget reductions accelerate this process. As a result, although historically, people have preferred to have the salaries for their departments on the state appropriation rather than soft source of trust funds, the reality is that trust funds are becoming a more reliable funding source than the state appropriation. Fees Retained on Campus To Support Operations** 6 ** Gross, excludes waivers EXPENSES 7 UMass Boston Operating Budget by Expense Type 8 Over 60% of UMass Bostons operating expenses are for personnel. Fall 2008 FTEs by Executive Area 9 Source: OIRP Breakout of FY09 Expense Budget* by Executive Area 10 * Includes grants & contracts, state-funded fringe benefits, & tuition discounts; excludes depreciation & capital spending ** Includes energy, cleaning, central assessment for Presidents Office, shuttle bus service, and fringe (Medicare, Universal Health & Unemployment)) Breakout of FY09 Academic Affairs Budget by Major Category 11 FY09 Budget by College 12 Breakout of A&F Budget 13 % of Budget * Excludes Parking & Transportation and Central Reprographics ** Excludes shuttle bus service *** Includes mailroom Breakout of Central Expenses 14 * Medicare, Universal Health & Unemployment