University Leadership Presenta1on February 18, 2014 BUDGET 101
What is a Budget? •  Annual Opera1ng Budget-­‐ Fiscal plan of opera1on including an es1mate of proposed expenditures and the means to fund them. Components of Budget •  K-­‐State budget divided into three subagencies (by statute) •  Main Campus (Includes Salina and Olathe) •  Veterinary Medical Center •  Research and Extension (Extension Systems and Agriculture Research Programs) •  Why? •  BeAer comparison to Regent’s insCtuCons and peers What expenditures are budgeted? •  Salaries and Fringe Benefits •  Unclassified – Faculty and Unclassified Professionals •  Classified – State Civil Service PosiCons (changing to University Support Staff FY 15) •  Students What expenditures are budgeted? •  OOE -­‐ Other Opera1ng Expenditures: Non-­‐salary items such as classroom materials, travel, office supplies, maintenance expenses, office equipment, soUware, etc. FISCAL YEAR 2014 GENERAL USE BUDGET (millions of dollars) S&W
Main Campus $221.7
Vet. Med. Center 26.9
Research & Exten 49.0
Grand Total
Pct. of Total
OOE
$69.4
11.6
5.9
TOTAL 291.1 38.5 54.9 $297.6 $86.9 $384.5 77%
23%
100% What is NOT in the operaCng budget? •  Debt Service •  Principal and interest payments •  (Some central OOE pool lines used for DS) •  Capital Improvements •  New building construcCon •  Repair of buildings •  (Included in the capital improvement budget) •
What is NOT in the operaCng Affiliated Corpora1ons budget? •  Controlled •
•
•
•
•
•
•
•
KSU Research FoundaCon K-­‐State AthleCcs – Local Agency K-­‐State Union CorporaCon – Local Agency K-­‐State Olathe InnovaCon Campus, Inc. KSU Veterinary Clinical Outreach, Inc. K-­‐State DiagnosCc and AnalyCcal Services KSU InsCtute for CommercializaCon Teachers and Employees AssociaCon of KSU •  Non-­‐Controlled •  KSU Alumni AssociaCon •  KSU FoundaCon •  Kansas Crop Improvement •  Student PublicaCons, Inc. – Local Agency (Budget may include revenues that reimburse K-­‐State expenditures) FY 2014 BUDGET BY FUND Fund Source
State Appropria1ons (Main Campus, R & E, Vet Med) Student Tui1on (Main Campus, Vet Med)
Hospital & Diagnos1c Lab (Vet Med)
Federal Land Grant Funds (R & E)
GiUs, Grants, & Contracts
Auxiliary Enterprises (Housing, Lafene)
Service Clearing (Charge backs – Facili1es, Telecom)
Local Agencies (Athle1cs, Union, Student Publica1ons)
Millions $ 159.7 209.7 6.0 9.1 277.6 43.0 25.4 51.2 Grand Total
$781.7 GU
$384.5
RU
$397.2
K-State’s FY 2014 Operating Budget
(Revenue Shown in Millions)
Budget Funds •  General Use Funds (GU) -­‐ Funds allocated to departments comprised of: •  State General Fund (SGF) -­‐ State funds appropriated by the Legislature •  General Fees -­‐ Student Tui1on •  Veterinary Health Center Revenue •  Federal Land-­‐Grant Funds Budget Funds •  Restricted Use Funds (RU)-­‐ revenue dedicated for specific purposes, i.e., grants and contracts, giU income, sales and service, indirect cost recovery (SRO), auxiliary, local agency and service clearing. How is the opera1ng budget developed each year? Legisla1ve Budget Cycle University Budget Process LegislaCve Budget Cycle •  Kansas Board of Regents develops and submits the system-­‐wide request –  K-­‐State submits priority budget enhancements – June –  Discussion between KBOR and KSU President – August –  KBOR approves budget enhancements -­‐ September •  KSU Budget request is submiAed to Division of Budget – September 15th LegislaCve Budget Cycle •  Division of Budget submits recommendaCons to Governor –  November •  Governor delivers budget recommendaCons to the Legislature –  January •  Legislature makes final budget recommendaCons. –  May (usually) LegislaCve Budget Cycle •  Board of Regents determines K-­‐State’s operaCng grant increase (SGF) if one is appropriated. –  June •  Board of Regents approves the following fall’s tuiCon rate increase. –  June University Budget Process (In transiCon) •  President Schulz created the University Budget Advisory CommiAee •  VP Admin & Finance develops three year funding model –  Mandated expenses (benefit rate adjustments) –  Handbook increases –  President commitments (3-­‐year salary plan) University Budget Process (In transiCon) •  TuiCon Strategies CommiAee Review –  Begin meeCng late November early December –  Review of 3-­‐year expense plan – focus on first year –  Discussion of any fee proposals submiAed –  Develop recommendaCon to President/Univ Bud CommiAee •  Unit Heads submit enhancement funding requests University Budget Process (In transiCon) •  University Budget Advisory CommiAee develops recommendaCon for President –  April •  TuiCon plan is submiAed to Board of Regents –  May – first reading •  Budget allocaCons are submiAed to units –  May KANSAS STATE UNIVERSITY - MAIN CAMPUS AND ESARP 1)
ADMINISTRATION AND FINANCE
FY 2015 - LEGISLATIVE BUDGETS
DRAFT AS OF: February 14, 2014
KFY 2015 Est. FY 2015 Est.
State
Budget As
Governor
2025
Appropriated
Budget
Annual Commitments
Base Maintenance Items
5
Merit Salary Increases (2%)
$ 8,154,000
$ 8,154,000
5
University Support Staff Salary Increase (2%)
$ 702,565
$ 702,565
5
Targeted Faculty Salary Enhancements (125, 150, 175)
$ 800,000
$ 800,000
5
Faculty Promotions
$ 885,000
$ 885,000
5
Backfill 5-Year Promotions
$ 500,000
$ 500,000
5
Fringe Benefit Increase MC and ESARP including GHI incr, longevity plus KPERS
$
50,000
$
50,000
2
Institutional Scholarships
$ 1,328,000
$ 1,328,000
6
Utilities Infrastructure
$ 1,000,000
$ 1,000,000
2,3,5 Instructional Fees/GTA Waiver Increase (5% Increase)
$ 445,500
$ 445,500
5
New Faculty Positions
$ 599,604
$ 599,604
1,5 Base funding support for academic unclassified professionals
$ 263,861
$ 263,861
5
Cover State Reduction FY 15 and Human Capital - FY 2015, 2016, 2017
$ 1,000,000
$ 1,000,000
2
Student-Centered Tuition Enhancements 2)
$ 141,600
$ 141,600
1,5 Security Studies Replacement of Grant Funds (faculty in History and Political Science) $ 400,000
$ 400,000
1
Pre-Award Services Support
$
50,000
$
50,000
2,3 Student Services Support
$ 132,900
$ 132,900
4
Alumni Database
$
85,000
$
85,000
6
Academic Building Support
$ 360,000
$ 360,000
Subtotal Base Budget Allocations
$16,898,030
$16,898,030
Funding Sources
Internal Reallocation 2)
Tuition Rate Increase (5%,5%,5%/year)
State Funding (As appropriated during 2013 legislative session)
Legislative Adjustments (Governor - Restored Salary Cap Reduction)
Enrollment growth projections
Subtotal Funding Sources
Annual Change to Base Excess (Deficit) Revenue
$ 6,350,381
$ 8,100,000
$ 1,447,649
$ 1,000,000
$16,898,030
$
-
$ 3,734,133
$ 8,100,000
$ 1,447,649
$ 2,616,248
$ 1,000,000
$16,898,030
$
-
FY 2015 Est.
Senate
Budget
FY 2015 Est.
House
Budget
$ 8,154,000
$ 702,565
$ 800,000
$ 885,000
$ 500,000
$
50,000
$ 1,328,000
$ 1,000,000
$ 445,500
$ 599,604
$ 263,861
$ 1,000,000
$ 141,600
$ 400,000
$
50,000
$ 132,900
$
85,000
$ 360,000
$16,898,030
$ 8,154,000
$ 702,565
$ 800,000
$ 885,000
$ 500,000
$
50,000
$ 1,328,000
$ 1,000,000
$ 445,500
$ 599,604
$ 263,861
$ 1,000,000
$ 141,600
$ 400,000
$
50,000
$ 132,900
$
85,000
$ 360,000
$16,898,030
$ 6,350,381
$ 8,100,000
$ 1,447,649
$ 6,350,381
$ 8,100,000
$ 1,447,649
$ 1,000,000
$16,898,030
$
-
$ 1,000,000
$16,898,030
$
-
1) Includes Research and Extension and excludes K-State Salina and Veterinary Medicine
2) SCTE allocations - Educ Opportunity Fund - $25k with $350k transferred from SCTE funds; LGBT - $73,600; and Veteran's Center - $43,600
3) 1% internal reallocation - $2,465,000
2% internal reallocation - $4,931,000
KState
2025
5
5
5
5
5
5
2
6
2,3,5
5
1,5
5
2
1,5
1
2,3
4
6
KANSAS STATE UNIVERSITY - MAIN CAMPUS AND ESARP 1)
ADMINISTRATION AND FINANCE
FY 2015 - FY 2017 PLANNING BUDGETS
DRAFT AS OF: February 17, 2014
FY 2015 Est.
Base Budget
Best Case
Annual Commitments
Base Maintenance Items
Merit Salary Increases (2%)
$
8,154,000
University Support Staff Salary Increase (2%)
$
702,565
Targeted Faculty Salary Enhancements (125, 150, 175)
$
800,000
Faculty Promotions
$
885,000
Backfill 5-Year Promotions
$
500,000
Fringe Benefit Increase MC and ESARP including GHI incr, longevity plus KPERS
$
50,000
Institutional Scholarships
$
1,328,000
Utilities Infrastructure
$
1,000,000
Instructional Fees/GTA Waiver Increase (5% Increase)
$
445,500
New Faculty Positions
$
599,604
Base funding support for academic unclassified professionals
$
263,861
Cover State Reduction FY 15 and Human Capital - FY 2015, 2016, 2017
$
1,000,000
Student-Centered Tuition Enhancements 2)
$
141,600
Security Studies replacement of grant funds (faculty in History and Political Science)
$
400,000
Pre-Award Research Services Support
$
50,000
Student Services Support
$
132,900
Alumni database
$
85,000
Academic Building Support
$
360,000
Subtotal Base Budget Allocations
$ 16,898,030
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4,200,000
722,535
535,500
900,000
500,000
2,000,000
1,168,000
1,000,000
468,000
1,000,000
500,000
400,000
1,450,000
14,844,035
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4,300,000
743,015
624,750
927,000
1,250,000
1,000,000
500,000
491,000
1,000,000
10,835,765
Funding Sources
Internal Reallocation 3)
Tuition Rate Increase (5%,5%,5%/year)
State Funding (As appropriated during 2013 legislative session)
Legislative Adjustments (Governor - Restored Salary Cap Reduction)
Enrollment growth projections
Subtotal Funding Sources
Annual Change to Base Excess (Deficit) Revenue
$
$
$
$
$
$
$
5,444,035
8,400,000
1,000,000
14,844,035
-
$
$
$
$
$
$
$
1,035,765
8,800,000
1,000,000
10,835,765
-
$
$
$
$
$
$
$
3,734,133
8,100,000
1,447,649
2,616,248
1,000,000
16,898,030
-
FY 2016 Est.
Base Budget
FY 2017 Est.
Base Budget
1) Includes Research and Extension and excludes K-State Salina and Veterinary Medicine
2) SCTE allocations - Educ Opportunity Fund - $25k with $350k transferred from SCTE funds; LGBT - $73,600; and Veteran's Center - $43,600
3) 1% internal reallocation of general use base budget - $2,465,000
2% internal reallocation of general use base budget - $4,931,000
That’s the budget in a nut shell….any quesCons?