Spring 2015
E&G Interim Budget Update
FY 2014-15 (Current Year)
FY 2015-16 (Request Year)
As of March 16, 2015 (Interim BUDRPT submission)
BLOOMSBURG UNIVERSITY
BUDGET SUBCOMMITTEE – APRIL 17, 2015
UNIVERSITY FORUM – APRIL 22, 2015
PLANNING AND BUDGET – APRIL 23, 2015
1
E&G Interim Budget Report Submission
•
Interim BUDRPT16 submitted to the State System on March 16, 2015
•
Updates BUDRPT16 submitted to the State System on September 2, 2014
FY 2014-15

Applies actuals as of February 18, 2015 and forecasts revenue and expenditures for the remainder of
the fiscal year. E&G special program and E&G self-supporting funds receive a corresponding
adjustment to the expenditure/transfer line or use of carryforward line, as appropriate.

Generally assumes 100% spend of carryforward fund balance as submitted by divisions to the Budget
Office during July/August 2014 (adjustments are made for any plans revisions that the Budget Office
receives from the divisional vice presidents).

Assumes anticipated E&G general fund expenditures for services/supplies, capital, and transfers
remain consistent with original budget, unless variances and/or reclassifications between line items
are known.
FY 2015-16

Updates/revises request year, FY 2015-16
2
FY 2014-15 E&G Interim Budget Update Summary
Educational and General Fund (General, Special
Programs, Self-Supporting)
E&G Revenue/Sources
Tuition
Fees
Total Tuition and Fees
State Appropriation
Transition Funds
All Other Revenue
Use of Carryforward Fund Balance 1
Original BUDRPT
Submission 9/2/14
Interim (Revised)
BUDRPT Submission
3/16/15
$
$
$
Total Revenue/Sources
$
E&G Expenditures and Transfers
Compensation Summary:
Salaries and Wages
Benefits
Subtotal, Compensation
$
Revenue/Sources less Expenditures/Transfers
10,248,234
144,831,187
$
72,923,633
35,083,634
108,007,267
$
29,923,819
2,887,852
4,012,249
144,831,187
2
Services and Supplies
Capital Expenditures
Transfers
Total Expenditures and Transfers
81,053,196
15,975,445
97,028,641
32,870,585
140,000
4,543,727
Difference
79,967,058
15,897,377
95,864,435
32,968,555
140,000
4,643,977
$ (1,086,138)
(78,068)
$ (1,164,206)
97,970
100,250
8,461,574
142,078,541
(1,786,660)
$ (2,752,646)
$
72,006,978
33,244,298
105,251,276
$ (916,655)
(1,839,336)
$ (2,755,991)
$
29,761,164
2,271,512
4,794,589
142,078,541
(162,655)
(616,340)
782,340
$ (2,752,646)
$
$
$
-
1
-
-
Original BUDRPT submission included use of $2.9MM of carryforward to balance the E&G General Fund budget ($1.4MM
institutional reserve and $1.5MM Academic Enhancement). Interim (Revised) BUDRPT submission does not rely on use of
funds from institutional reserve to balance the budget.
2
Balanced; all
E&G funds
Includes student financial aid (non-employee waivers and institutional scholarships) and utilities.
3
Key Revenue and Expenditure Drivers-FY 2014-15 Interim
Update
Key Revenue Drivers
 Tuition revenue lower than originally projected (enrollment for fall/spring down (primarily non-resident
undergraduate); winter up) (-$1.1MM)
 Fee revenue lower than originally projected (-$78K); dependent upon enrollment
 Performance funding came in slightly higher than originally projected (+$98K)
 Change in Use of Carryforward Fund Balance attributed to:

(-$1.4MM)
Planned use of institutional reserve originally planned to be used to balance the E&G General Fund budget;
based on actual activity to date plus projections for the remainder of the fiscal year, use of these funds is no
longer needed to balance the E&G General fund budget

(-$.3MM)
Use of carryforward fund balance originally planned to balance E&G self-supporting budgets that is
no longer necessary based on revised salary and benefit projections

($-.2MM)
Delay of sustainability initiative project until FY 2015-16

(+$.2MM)
Additional use of carryforward fund balance to fund Greenly Center furniture
4
Key Revenue and Expenditure Drivers-FY 2014-15 Interim
Update (cont.)
Key Expenditure and Transfer Drivers
 Labor cost lower than originally projected. Original turnover/savings calculated as $3.3MM. Revised projection
for turnover/savings = $6.1MM. Increase in turnover/savings = $2.8MM. Revised projection for turnover/savings
largely attributed to:



(+$3.2MM)
(+$2.2MM)
(+.4MM)
Savings attributed to retirements/vacant positions across all bargaining units
Faculty pool savings
Additional healthcare/annuitant savings
 Services and supplies increase attributed to sustainability initiative project moved to next fiscal year (-$.2MM)
offset by several small variances. NOTE: New background check clearance requirement is projected to cost $89K.
 Capital expenditures decrease attributed to line item reclassification (capital to transfer) for planned use of
carryforward for the HSC generator project (-$459K) and the MCHS Vivarium project (-$157K); total (-$616K).
 Transfer increase primarily attributed to line item reclassification (capital to transfer) (+$616K) plus additional use
of carryforward fund balance to fund Greenly Center furniture (+$200K)
5
Key Revenue and Expenditure Drivers-FY 2014-15 Interim
Update (cont.)
Summary
 Budget is balanced for all E&G funds (General, Special Programs, Self-Supporting)
 Majority of projected bottom line improvement ($1.4MM) is attributed to additional E&G General
fund salary and benefits turnover/savings ($2.5MM) offset by a projected shortfall in tuition revenue
($1.1MM)
 Does not rely on use of $1.4MM from the institutional reserve (E&G General fund) to balance the
budget
 Does rely on use of $1.5MM of academic carryforward fund balance to balance the E&G General fund
budget
 Does rely on foregoing $1.0MM of additional plant investment
6
Uncommitted Institutional Reserve (E&G General Fund) Rollforward
7/1/14-6/30/15 Projected
Uncommitted Balance 7/1/14
Amount Used to Help Balance FY 2014-15 E&G General Fund Budget
Projected FY 2014-15 Carryforward to Institutional Reserve
Miscellaneous Adjustments to Institutional Reserve During FY 2014-15
Uncommitted Balance 7/1/15-Projected
(millions)
$ 12.1
$ (1.4)
$
1.7
$
0.1
$ 12.5
$1.7MM comprised of:
 (+$2.5MM ) Projected additional salary and benefit turnover/savings (retirements/vacant
positions; temp faculty, sabbatical, promotion pools; healthcare/annuitant)
 (+.1MM)
Additional projected revenue (performance funding, interest income)
 (+.2MM)
Projected reduced expenditures (non-base budget items-legal expenses, etc.)
 (-$1.1MM)
Shortfall in projected tuition revenue
7
FY 2015-16 (Request Year) Key Assumptions
Tuition and Fees
 Implementation of per credit tuition pricing which results in an annualized FTE enrollment decrease of 2.8%
(anticipated reduction in the number of students taking more than 15 credits and the factoring in of the unexpected
drop in non-resident enrollment in FY 2014-15 on projected FY 2015-16 enrollment; no drop in headcount expected as
a result of per credit tuition pricing)
 Undergraduate resident per credit tuition rate consistent with FY 2014-15 per credit rate ($284)
 Undergraduate non-resident per credit tuition rate 200% of FY 2014-15 undergraduate resident per credit rate ($568)
 0% tuition increase (graduate)
 Health Services/Wellness Fee increase of $58/semester
 0% increase in Academic Enhancement and Technology Tuition fees
 Miscellaneous fees adjusted based on FY 2014-15 revised budget (projected actuals)
State Appropriation
 Revised estimate per State System; assumes flat appropriation with FY 2015-16 formula file applied for base
appropriation ($29,902,829) and performance funding equal to FY 2014-15 allocation ($2,975,641)
All Other Revenue
 Generally consistent with FY 2014-15 revised budget (projected actuals)
Use of Carryforward Fund Balance
 Majority of balance ($1.2MM) reflects planned use of carryforward fund balance as submitted by divisions to the
Budget Office during July/August 2014
8
FY 2015-16 (Request Year) Key Assumptions (cont.)
Compensation
 Assumes all authorized positions will be filled as of July 1, 2015 or August 24, 2015 (start of Fall 2015 semester);
turnover/savings expected to remain consistent with original submission ($4.0MM)
 0% salary and wage increases (except for SPFPA bargaining unit; collective bargaining agreement negotiated)
 Mandatory benefit (hospitalization, retirement, etc.) built in based on assumptions from the State System
Services, Supplies, and Capital Expenditures
 Base budgets consistent with FY 2014-15 budgets with adjustments included as approved (i.e. university share of capital
campaign expenses, base budget addition for new SEM division, COT approved Academic Excellence institutional
scholarship program and BU tuition grants (part of per credit tuition pricing initiative), ACT 101/EOP institutional
scholarship program, etc.)
 Known contract, lease, utility, and general cost increases included where appropriate
Other
 In addition to per credit tuition pricing initiative and the initiative to restructure the fee for the Health Services/Wellness
operation, the interim/revised budget continues to include the following budget improvement initiatives which were also a
part of the original submission:
 E&G General fund base operating and capital budget allocation reduction -15% overall ($1.2MM)
 Annual Academic Enhancement fee contribution to E&G General fund operations ($.6MM)
 Annual Tech Tuition fee contribution to E&G General fund operations ($.4MM)
 Reduction in E&G General fund support of the Shuttle Bus operation ($.1MM)
9
FY 2015-16 E&G Interim Budget Update Summary
Educational and General Fund (General, Special
Programs, Self-Supporting)
E&G Revenue/Sources
Tuition
Fees
Total Tuition and Fees
State Appropriation
Transition Funds
All Other Revenue
Use of Carryforward Fund Balance
Original BUDRPT16
Submission 9/2/14
Interim (Revised)
BUDRPT Submission
3/16/15
$
$
$
Total Revenue/Sources
$
E&G Expenditures and Transfers
Compensation Summary:
Salaries and Wages
Benefits
Subtotal, Compensation
$
Revenue/Sources less Expenditures/Transfers
1
1,225,455
135,598,488
$
72,571,514
38,346,150
110,917,664
$
27,611,698
1,665,816
3,916,883
144,112,061
1
Services and Supplies
Capital Expenditures
Transfers
Total Expenditures and Transfers
81,227,239
16,038,681
97,265,920
32,731,312
4,375,801
(8,513,573)
$
$
$
89,341,846
16,845,630
106,187,476
32,878,470
4,454,801
1,293,620
144,814,367
$
71,952,708
37,970,504
109,923,212
$
31,666,456
1,665,816
3,784,229
147,039,713
(2,225,346)
Includes student financial aid (non-employee waivers and institutional scholarships) and utilities.
Difference
$
$
$
$
8,114,607
806,949
8,921,556
147,158
79,000
68,165
9,215,879
$
(618,806)
(375,646)
(994,452)
$
4,054,758
(132,654)
2,927,652
6,288,227
Unbalanced; Projected
deficits are in the E&G General
Fund; Special Programs/SelfSupporting funds are balanced.
10
Key Revenue and Expenditure Drivers-FY 2015-16 Interim
Update
Key Revenue Drivers
 Tuition revenue higher than originally projected; per credit tuition pricing as approved by the BOG on
1/22/15 updated for trends in current enrollment projections
 Fee revenue higher than originally projected; primarily related to increase in approved Health
Services/Wellness fee (+$1.0MM)
 Appropriation revenue higher than originally projected; figure provided by PASSHE (based allocation
updated for FY 2015-16 formula file; performance funding consistent with FY 2014-15 allocation)
 Increase in use of carryforward fund balance primarily attributed to sustainability initiatives moved
forward from FY 2014-15 (+$.2MM) offset by less use of carryforward fund balance due to Health
Services/Wellness fee increase (-$187K)
11
Key Revenue and Expenditure Drivers-FY 2015-16 Interim
Update (cont.)
Key Expenditure and Transfer Drivers
 Additional labor cost adjustments above original turnover/savings calculation primarily due to







(-$1.1MM)
(-$.8MM)
(-$.2MM)
(+$.1MM)
(+$.1MM)
(+.3MM)
(+$.5MM)
Temp faculty pool reductions
Projected increases in retirements/vacant positions across all bargaining units
Projected reductions in faculty promotion and sabbatical pools
Projected increase in winter session pay
Projected increase related to reclassifications
Project increase related to unfrozen/new positions
Projected increase in overload
 Services and supplies increased to accommodate BU tuition grants (per credit tuition pricing) (+$3.0MM) and
COT approved institutional scholarship program (+$.2MM)
 Other key expenditure increases include:




Sustainability initiative from prior year (+.$2MM)
New SEM division budget establishment (+$.2MM)
Utilities increase (+$.2MM)
New background check clearance requirement (+$.1MM)
12
Key Revenue and Expenditure Drivers-FY 2015-16 Interim
Update (cont.)
Key Expenditure and Transfer Drivers
 Transfer decrease primarily attributed to $113K less debt service on steam plant upgrade project due to cash
flow requirements during construction
Summary
 Original submission projected an $8.5MM shortfall in the E&G General Fund
 Interim/revised submission with per credit tuition pricing and associated institutional aid, increased Health
Services/Wellness fee, and additional reductions in labor costs over initial turnover/savings calculation
results in a revised projected shortfall of $2.2MM in the E&G General fund
13
FY 2015-16 E&G Interim Budget Update Per Credit Tuition
Pricing vs. No Per Credit Tuition Pricing (Traditional Model)
FY 2015-2016 (Current Year) Interim (Revised) BUDRPT16 Summary (w/o Per Credit)
Educational and General Fund (General, Special
Programs, Self-Supporting)
E&G Revenue/Sources
Tuition
Fees
Total Tuition and Fees
State Appropriation
Transition Funds
All Other Revenue
Use of Carryforward Fund Balance
With Per Credit
Tuition Pricing
$
$
$
71,952,708 $
37,970,504
109,923,212 $
71,952,708 $
37,802,504
109,755,212 $
$
31,666,456
1,665,816
3,784,229
147,039,713 $
28,633,991
(3,032,465) Primarily BU Tuition Grant ($3.0MM)
1,665,816
3,784,229
143,839,248 $ (3,200,465)
E&G Expenditures and Transfers
Compensation Summary:
Salaries and Wages
Benefits
Subtotal, Compensation
$
1
1
79,283,307 $ (10,058,539) Traditional pricing
16,845,630
96,128,937 $ (10,058,539)
32,878,470
4,454,801
1,293,620
134,755,828 $ (10,058,539)
$
Revenue/Sources less Expenditures/Transfers
89,341,846 $
16,845,630
106,187,476 $
32,878,470
4,454,801
Difference
1,293,620
144,814,367 $
Total Revenue/Sources
Services and Supplies
Capital Expenditures
Transfers
Total Expenditures and Transfers
Without Per Credit
Tuition Pricing
(2,225,346)
(9,083,420)
(168,000) Employee dependent waivers
(168,000)
(6,858,074)
Includes student financial aid (non-employee waivers and institutional scholarships) and utilities.
14
FY 2015-16 E&G General Fund Projected Deficit Scenarios
Without Per
Credit Tuition
Pricing
(2,225,346) $
(9,083,420)
3,773,357
3,773,357
With Per Credit
Tuition Pricing
Projected Deficit w/Given Assumptions
State Appropriation Increase as Recommended by Governor Wolf
2.5% Across the Board Salary Increases (and Associated Benefits) 1
Total
$
$
(1,688,503)
(140,492) $
(1,688,503)
(6,998,566)
1
For illustrative purposes only. Does not reflect the bargaining position of either side of the negotiating
parties.
Projected Institutional Reserve Balance (E&G General fund) at 6/30/15 = $12.5MM
15
Key Unknowns Going into FY 2015-16
•
Results of all collective bargaining negotiations except SPFPA
•
Final state appropriation allocation and related impacts to tuition/technology
tuition increases
•
Final performance funding allocation
16
Discussion
17