Fiscal Year 2015
Operating Budget
Approved by:
Ramapo College Trustees
June 23, 2014
Board of Trustees
George C. Ruotolo, Jr.
Chair
William F. Dator
Vice Chair
David G. Schlussel
Secretary
Kevin Ng
Student Trustee
Vincent Colman
Peter McBride
Gary L. Montroy
A.J. Sabath
Thomas A. Zelante, Esq.
President
Peter P. Mercer
Executive Summary
This executive summary provides a brief overview of Ramapo College’s operating plan and projected sources and expenditure of funds for the fiscal
year beginning July 1, 2014 and ending June 30, 2015.
The operating budget was developed to support the vision of Ramapo College and is aligned with the Strategic Plan of the College. As the College
continues to link the budget process to planning, the administration remains committed to managing resources effectively. Pressures and demands
have grown over the past decade while direct state support has remained flat with rising costs. The College will persist in its efforts to carefully
review expenditures and reallocate resources where necessary in order to meet its strategic planning goals.
Throughout the year, budgets are monitored to ensure that expenditures do not exceed authorized amounts and are used for intended purposes.
The College maintains an online budgetary control system (Ellucian Banner) to assist unit directors with the management of their accounts.
Approval of the budget and setting of tuition and fees is ratified by the Ramapo College Board of Trustees who constitutes authority for the
administration to expend funds within the total dollar limit of the approved budget.
The Fiscal 2015 Budget
The operating budget of $152 million is an increase of $4 million over FY2014, which represents a 2.8% increase. Additional cost factors include
bargaining unit contracts and employee fringe benefit expenses. The Administration continues to effectively adjust spending in order to balance the
budget and keep tuition and fee increases at a reasonable level. The Board of Trustees approved no increases in tuition and fees, housing and
board charges. The increase of 15.4% in institutional support expenses was due to the reallocation of SPIF and Inflationary funding from other
program reserves, and the addition of the Government Relations and General Counsel departments to the Institutional Support budget.
Ramapo’s base state appropriation of $16.1M remains the same for FY2015. The additional revenue in state fringe benefits of $2.7M is offset by an
increase to the fringe benefits expense. In FY2015, the state support will fund approximately 28.4% of our total operating budget, while student
tuition and fees funds approximately 43.4%. A major cost savings initiative in the FY2015 budget was the defeasance of the 2003H and 2004E bond
series, resulting in a savings of $3.5M.
Other assumptions that were incorporated into the FY2015 base operating budget include:
•
•
•
Salary step / increments for union employees
Funding for top priorities to meet our strategic planning initiatives
Inflationary increases
The following pages provide some of the highlights of the FY2015 operating budget.
Where the Money Comes From
Ramapo’s operating budget has
five (5) major sources of funding.
Sources of FY2015 Revenues
Auxiliary
26.5%
• State appropriation – includes direct
state support and state funded
fringe benefits
State
Support
28.4%
• Net tuition
• Fees
• Auxiliary – self-supporting activities
that includes student housing
charges, meal plan, bookstore,
student activity and student center
fees
• Other sources – includes interest
income and other miscellaneous
sources
Other 1.7%
Fees 12.8%
Net Tuition
30.6%
Revenue Budget Summary FY2014 vs. FY2015
($) in Millions
FY2014
FY2015
Amt Diff.
% Diff
Educational & General Revenues
Direct State Appropriation
$ 16,130 $ 16,130 $
-
0.0%
State Funded Fringe Benefits
$ 24,363 $ 27,145 $ 2,782
11.4%
Net Tuition
$ 45,123 $ 46,804 $ 1,681
3.7%
Student Fees
$ 19,264 $ 19,550 $
286
1.5%
Other Sources
$
2,591 $
2,381 $
(210)
-8.1%
Interest Income
$
200 $
200 $
-
0.0%
Total Educational & General Revenues
$ 107,671 $ 112,210 $ 4,539
4.2%
Auxiliary Services
$ 40,755 $ 40,389 $
(366)
-0.9%
Total Revenue
$ 148,426 $ 152,599 $ 4,173
2.8%
What the Operating Budget Funds
Expenditures by Program
Debt Service
11.4%
Auxiliary Svcs
16.2%
Physical Plant
11.7%
Institutional
Support 14.4%
Expenditures by Category
Instruction
32.4%
Other
11.3%
Academic
Support 4.8% Debt Service
11.4%
Student
Services 9.1%
• 37.2% funds academic activities such as
instruction, advising, and library.
• Debt makes up 11.4% of the operating
budget, a decrease from FY2014 due to
defeasance of bonds.
Contracted &
Professional
8.8%
Fuel & Utilities
3.4%
Maintenance &
Capital Improv.
2.6%
Salaries and
Benefits
62.5%
• Salaries and benefits make up the majority of the
budget at 62.5%.
• The operating budget has very little discretionary
non-fixed costs.
• Other includes materials, supplies, and services.
Expenditure Budget Summary FY2014 vs. FY2015
($) in Millions
FY2014
FY2015
Amt Diff.
% Diff
Educational & General Expenditures
Instruction
$
46,953 $
Academic Support
$
6,983 $
7,326 $
343
4.9%
Student Services
$
13,153 $
13,746 $
593
4.5%
Institutional Support
$
19,075 $
22,011 $ 2,936
15.4%
Physical Plant
$
16,826 $
17,807 $
981
5.8%
Financial Aid & Scholarships
$
211 $
205 $
(6)
-2.8%
Total Educational & General Expenditures
$ 103,201 $ 110,544 $ 7,343
7.1%
Auxiliary Expenditures
$
24,251 $
24,675 $
424
1.7%
Debt Service-Educational & General
$
7,944 $
8,122 $
178
2.2%
Debt Service-Auxiliary
$
13,030 $
9,258 $ (3,772)
-28.9%
Total Debt Service Expenditures
$
20,974 $
17,380 $ (3,594)
-17.1%
Total Expenditures
$ 148,426 $ 152,599 $ 4,173
2.8%
49,449 $ 2,496
5.3%
Cost Saving Initiatives
• The College has been able to
contain costs, reduce expenditures,
and reallocate resources.
• Cost containment is vital to our
budget process for future strategic
investments.
• Debt reduction due to defeasance
of bonds.
• Other cost savings initiatives:
a. utility costs reduction
b. salary elimination/ defer hiring
c. across the board non salary cuts
d. other expenses (SPIF, reserves)
Tuition and Fees
The FY2015 budget is based on the annualized undergraduate tuition and fee rates.
FY2014
Rate
FY2015
Rate
$
Increase
%
Increase
In-State
Tuition
Fees
Capital Improvements Fee
Sub Total
$ 8,650.00
$ 3,738.00
$ 1,000.00
$ 13,388.00
$ 8,650.00
$ 3,738.00
$ 1,000.00
$13,388.00
$0.00
$0.00
$0.00
$0.00
0.0%
0.0%
0.0%
0.0%
Housing (Mackin Triple )
Board (Super 14 Plan)
$ 8,180.00
$ 3,450.00
$ 8,180.00
$ 3,450.00
$0.00
$0.00
0.0%
0.0%
Total In-State Resident
$ 25,018.00
$25,018.00
$0.00
0.0%
Out-of-State
Tuition
Fees
Capital Improvements Fee
Sub Total
$ 17,300.00
$ 3,738.00
$ 1,000.00
$ 22,038.00
$17,300.00
$ 3,738.00
$ 1,000.00
$22,038.00
$0.00
$0.00
$0.00
$0.00
0.0%
0.0%
0.0%
0.0%
Housing (Mackin Triple)
Board (Super 14 Plan)
$ 8,180.00
$ 3,450.00
$ 8,180.00
$ 3,450.00
$0.00
$0.00
0.0%
0.0%
Total Out-of-State Resident
$ 33,668.00
$33,668.00
$0.00
0.0%