1
Total State Appropriations 2001-2010
In Millions
$140
$120
?
$100
$80
$60
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
$79.3
81.6
83.4
84.2
86.7
101.2
120.4
139.7
110.9
?
3
Current Year Appropriation
Initial Decrease from 2008
Recent Proration
$17.8 million
11.0
_____
Total 2009 Decrease $ 28.8 million
Down 20.6% from 1 year ago.
4
Division budgets compared to net state
appropriation (in millions)
2008-09
Budget
O&M
College of Med.
Hospitals
Approp.
163.9
69.2
97.3
30.0
317.0
9.6
5
Total Budget by Division - 2009
Hospitals
48%
Auxiliaries
3%
College of Medicine
17%
MCI
3%
O&M
29%
6
State Appropriations by Division - 2009
MCI
2%
O&M
62%
Hospitals
9%
College of Medicine
27%
7
Composition of Revenues - O&M
2001 and 2009
56%
60%
47%
45%
39%
50%
40%
30%
8%
20%
5%
10%
0%
2001
State Appropriations
2009
Tuition and Fees
Other
8
Division budgets compared to net state
appropriation (in millions)
2008-09
Budget
O&M
College of Med.
Hospitals
Approp.
163.9
69.2
97.3
30.0
317.0
9.6
9
Operations and Maintenance
Budget, 2008-09
10
Operations and Maintenance
Net Cut in State Funds from 2008:
$16.4 million
Increased revenue (tuition, etc.):
$5.7 million
Internal budget cuts: $1.9 million
Net shortfall: $8.8 million
11
COSTS:
(“fixed” costs)
Benefits:
Health insurance:
Utilities:
Retiree pension:
Peehip for retirees:
Debt service:
TOTAL fixed costs:
$8.9 million
6.9 million
10.8 million
9.8 million
2.4 million
$9.9 million
$48.7 million
12
Others:
Supplies/travel/operating $16.6 million
Other
1.3 million
Scholarships
4.8 million
Subtotal:
$22.7 million
Salaries:
TOTAL:
$92.5 million
$163.9 million
13
Fixed Costs:
$48.7 million
Others:
$22.7 million
Salaries:
$92.5 million
TOTAL:
$163.9 million
14
REVENUES:
State Appropriations:
Tuition and Fees:
Other:
$69.2 million
72.7 million
13.1 million
(Sales of educational services,
interest income, grants overhead,
and misc.)
TOTAL:
$155.1 million
15
Total Operations and Maintenance
Budget Shortfall, 2008-09:
Costs:
$163.9 million
Revenues:
155.1 million
________________________
Shortfall:
$ 8.8 million
16
Budget Reduction Measures
17
1) Equipment & Personal Computers
(2008 O&M total = $5 million)
2) Travel
(2008 O&M total = $3 million)
3) Cell Phones
($350,000 saved)
4) No Across-Board Salary Increases
18
5) Staff Position Freeze
6) Staff Reclassification Freeze
7) Temporary Personnel
8) Overtime Pay
19
Revenue Measures
1) Increased enrollment
2) Increased tuition
3) Control personnel costs
20
USA compared to other organizations
affected by the economic downturn:
1. Demand for USA’s products is going
up, not down.
2. USA needs to retain employees to
address this demand.
21
Cost/savings per 1 percent of payroll
(University-wide): $3.1 million
(O&M only): $1 million
Revenue generated per 1 percent
of tuition increase:
$573,000
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