Fiscal Year 2016
Operating Budget
Approved by:
Ramapo College Board of Trustees
June 30, 2015
Board of Trustees
George C. Ruotolo, Jr.
Chair
William F. Dator
Vice Chair
David G. Schlussel
Secretary
Josef Weikl
Student Trustee
Vincent Colman
Peter McBride
Gary L. Montroy
A.J. Sabath
Charles H. Shotmeyer
Bartholomew J. Talamini
Susan A. Vallario
Sharlene S. Vichness
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 expenditures of funds for the
fiscal year beginning July 1, 2015 and ending June 30, 2016.
The operating budget was developed to support the vision of Ramapo College and is aligned with its Strategic Plan. As the College continues to
link the budget process to planning, the administration remains committed to managing resources effectively. As costs have risen over the past
year direct state support has decreased. 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 constitute authority for the
administration to expend funds within the total dollar limit of the approved budget.
The Fiscal 2016 Budget
The operating budget of $155.4 million is an increase of $2.8 million over FY2015, which represents a 1.8% increase. Additional cost factors include
projected increases in bargaining unit contracts and higher 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 a 2.5% increase
in tuition and fees, housing and board charges. The overall increase will be $600 for a full time NJ residential student and $816 for an out-of-state
student.
Ramapo’s base state appropriation of $14.6M is a reduction of $1.5M or 9.25% from FY2015. The additional revenue in state fringe benefits of
$672,000 is offset by an increase to the fringe benefits expense. In FY2016, state support will fund approximately 27.3% of our total operating
budget, while student tuition and fees funds approximately 44.7%.
Other assumptions that were incorporated into the FY2016 base operating budget include:
•
•
•
•
•
Tuition and fee increase of 2.5%
Housing and board increase of 2.5%
Salary step / increments for union employees projected at 1%
Funding for top priorities to meet our strategic planning initiatives
Inflationary increases
The following pages provide some of the highlights of the FY2016 operating budget.
Where the Money Comes From
Ramapo’s operating budget has
five (5) major sources of funding.
Sources of FY2016 Revenues
Auxiliary
26.5%
• State appropriation – includes direct
state support and state funded
fringe benefits
State
Support
27.3%
• Net tuition
• Fees
• Auxiliary – self-supporting activities
that includes student housing
charges, meal plan, bookstore,
student activity and student center
fees
• Other sources – includes interest
income and other miscellaneous
sources
Other 1.5%
Fees 13.1%
Net Tuition
31.6%
Revenue Budget Summary FY2015 vs. FY2016
($) in Millions
FY2015
FY2016
Amt Diff.
% Diff
Educational & General Revenues
Direct State Appropriation
$
16,130 $
14,638 $
(1,492)
-9.2%
State Funded Fringe Benefits
$
27,145 $
27,817 $
672
2.5%
Net Tuition
$
46,804 $
49,019 $
2,215
4.7%
Student Fees
$
19,550 $
20,348 $
798
4.1%
Other Sources
$
2,381 $
2,223 $
(158)
-6.6%
Interest Income
$
200 $
100 $
(100)
-50.0%
Total Educational & General Revenues
$ 112,210 $ 114,145 $
1,935
1.7%
Auxiliary Services
$
41,218 $
829
2.1%
Total Revenue
$ 152,599 $ 155,363 $
2,764
1.8%
40,389 $
What the Operating Budget Funds
Expenditures by Program
Debt Service
11.2%
Auxiliary Svcs
15.8%
Expenditures by Category
Instruction
32.6%
Physical Plant
11.9%
Institutional
Support 14.3%
Other
11.0%
Academic
Support 4.9% Debt Service
11.2%
Contracted &
Professional
9.3%
Fuel & Utilities
3.3%
Maintenance &
Capital Improv.
2.8%
Student
Services 9.3%
Salaries and
Benefits
62.4%
• 37.5% funds academic activities such as
instruction, advising, and library.
• Salaries and benefits make up the majority of the
budget at 62.4%.
• Debt makes up 11.2% of the operating
budget.
• The operating budget has very little discretionary
non-fixed costs.
• Other includes materials, supplies, and services.
Expenditure Budget Summary FY2015 vs. FY2016
FY2016
FY2015
($) in Millions
Amt Diff.
% Diff
Educational & General Expenditures
Instruction
$
49,449
$
50,724
$
1,275
2.6%
Academic Support
$
7,326
$
7,628
$
302
4.1%
Student Services
$
13,746
$
14,277
$
531
3.9%
Institutional Support
$
22,011
$
22,168
$
157
0.7%
Physical Plant
$
17,807
$
18,459
$
652
3.7%
Financial Aid & Scholarships
$
205
$
189
$
(16)
-7.8%
Total Educational & General Expenditures
$ 110,544
$ 113,445
$
Auxiliary Expenditures
$
24,675
$
24,559
$
(116)
-0.5%
Debt Service-Educational & General
$
8,122
$
7,960
$
(162)
-2.0%
Debt Service-Auxiliary
$
9,258
$
9,399
$
141
1.5%
Total Debt Service Expenditures
$
17,380
$
17,359
$
(21)
-0.1%
Total Expenditures
$ 152,599
$ 155,363
$
2,901
2,764
2.6%
1.8%
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 FY2016 budget is based on the annualized undergraduate tuition and fee rates.
FY2015
Rate
FY2016
Rate
$
Increase
%
Increase
In-State
Tuition
Fees
Capital Improvements Fee
Sub Total
$
$
$
$
8,650
3,738
1,000
13,388
$
$
$
$
8,866
3,832
1,000
13,698
$
$
$
$
216
94
310
2.5%
2.5%
0.0%
2.3%
Housing (Pine )
Board (Ultimate Plan)
$
$
8,020
3,530
$
$
8,221
3,620
$
$
201
90
2.5%
2.6%
Total In-State Resident
$
24,938
$
25,538
$
600
2.5%
Out-of-State
Tuition
Fees
Capital Improvements Fee
Sub Total
$
$
$
$
17,300
3,738
1,000
22,038
$
$
$
$
17,731
3,832
1,000
22,563
$
$
$
$
431
94
525
2.5%
2.5%
0.0%
2.4%
Housing (Mackin Triple)
Board (Super 14 Plan)
$
$
8,020
3,530
$
$
8,221
3,620
$
$
201
90
2.5%
2.6%
Total Out-of-State Resident
$
33,588
$
34,404
$
816
2.5%