Budget2007

INDIANA UNIVERSITY SOUTH BEND: 

INDIANA UNIVERSITY SOUTH BEND Budget Presentation for Academic Senate Meeting November 2006 By Bill O’Donnell and Robert Pope

Slide2: 

Bill O’Donnell, Vice Chancellor for Administrative and Fiscal Affairs

Slide3: 

Components of 2005-07 $4.7 Million Reduction in Operating Appropriation Indiana University – includes all campuses Inflation funding $ 25.7M Enrollment change 6.8M Research support 8.0M Equity 1.3M Across-the-board reductions (46.5M) $ (4.7M)

Slide4: 

Impact of Appropriation Change by Campus ($ thousands) IU South Bend – (2005-07) Total Reduction $618,705

Source of Income Comparison: 

Source of Income Comparison

Slide6: 

General Fund Total Appropriations Decreased from 56% of campus revenues to 51% of campus revenues over a 9 year period. Student Fees Increased from 38% of campus revenues to 44% of campus general fund revenues.

Source of Income Comparison - Debt Service Broken Out: 

Source of Income Comparison - Debt Service Broken Out

Slide8: 

General Fund Operating Appropriations Decreased from 48% of campus revenues to 41% of campus revenues over a 9 year period. Student Fees Increased from 38% of campus revenues to 44% of campus general fund revenues.

Slide9: 

New Sources: Fee Rate Increase 1,021,584 State Appropriation ( 265,030) State Appropriation – Debt Service 417,174 Other Income ( 12,382) Total New Sources $ 1,161,346 New Uses: Salary & Benefit Increases 1,149,144 General Exp Increases 962,794 Debt Service Payments 417,174 Campus Budget Reallocations (702,324) Campus Deficit (Negative Plugs) (665,442) Total New Uses $ 1,161,346 INDIANA UNIVERSITY SOUTH BEND FISCAL YEAR 2006-07

Slide10: 

IU South Bend General Expenditure Increases Utilities 385,225 18/20 Retirement 161,365 Accounts Receivable Write-off (No wash-out) 140,829 Chancellor’s Merit Award 175,000 University Tax 17,486 Miscellaneous 82,889 Total Gen. Exp. Increases $ 962,794

Slide11: 

Source: Indiana University IPEDS data and the IU South Bend Institutional Research Office

Slide12: 

Source: Indiana University IPEDS data and the IU South Bend Institutional Research Office

Fund Balance / Reserves: 

Fund Balance / Reserves 2004 2005 2006

Slide16: 

Fiscal Year 2006-07 So Far…. 2006 Summer Session 2 credit hours down 17.2% from Summer 2005. 2006 Summer Session 2 credit hours down over 28% from Summer 2004 resulting in actual revenue down $714,396. Summer Session 1 credit hours down 11.4% from FY 2003-04 resulting in actual revenue down $207,334.

Slide17: 

Fiscal Year 2006-07 So Far…. Negative Plugs of $665,442. Current year salary savings of $ 214,582 to date. Projected revenue shortfall. Fall semester credit hours down 1.9%. Uncertainty about Spring & Summer I enrollment.

Slide18: 

Fiscal Year 2007-08 Planning Negative Plugs of $665,442. Salary increases – each 1% in raise = $400,000 needed in base budget. PeopleSoft Assessment Uncertainty about future enrollments. Uncertainty about next biennium’s state appropriations makes planning difficult. (End of legislative session is late notice).

FY 07-08 Big Budget Items: 

FY 07-08 Big Budget Items Negative Plugs 665,442 PeopleSoft (Version 8.9 & 9.0) 224,165 Natatorium 15,000 Chancellor’s Merit Award 200,000 TOTAL $ 1,104,607 2% Raise 800,000 Total $1,904,607

Slide20: 

Budget Policy Document Documents unwritten budget practices. Provides transparency and communicates the policy. The document provides a basis for faculty and staff input into budget policies. For the first time, allows divisions to keep a portion (50%) of current year salary savings. Reviewed annually for changes.

Slide21: 

Budget Policy – To Do List Need to discuss and outline expectations – division expectations and central administration expectations. Evaluate current budget policy and determine necessary changes or additions.

Student Housing Finances: 

Student Housing Finances No general fund money. $18.6 million bond issue to be repaid from rental revenue. INDOT Project - $980,000. Campus funds from Bookstore reserve and parking.

NYMEX - Natural Gas Rates: 

NYMEX - Natural Gas Rates

Slide24: 

Robert Pope, Chairman of the Academic Senate Budget Committee

Original CTE Plan Goals: 

Original CTE Plan Goals Reducing dependence on part-time faculty. Supporting student success to retain students through graduation. Ensuring library access to an appropriate electronic collection of materials. Making the academic connection for under-represented students. Promoting diversity through scholarships and faculty salary enhancement. Enhancing retention and academic planning through institutional research. Supporting technology to enhance instruction.

Slide26: 

IU South Bend – CTE Plan FY 2006-07 New Faculty Positions – CTE Funds 261,433 Arts ($55,624 with benefits) Sociology and Anthropology ($59,101 w/benefits) English ($59,100 with benefits) Computer and Informational Science ($87,608 w/benefits) Other New Position – Academic Affairs Graduate program recruitment professional 55,462 Institutional Research Position Information Management Analyst 52,410 Total CTE Plan Increases $ 369,305

Slide27: 

Other CTE Fund Uses: Chancellor Reck approved a one-time Academic Equipment Fund of $350,000 during FY 2005-06 from accumulated unspent CTE funds. Any academic equipment purchases not completed during FY 2005-06 need to be re-approved by Exec. VP Charles Bantz.

Slide28: 

IU South Bend Budget Objectives: Start the budget process earlier. Chancellor adopt a Strategic Plan objective as a campus priority for the year’s budget process. Identify non-budgeted activities / positions and budget for them. Budget for unavoidable costs such as utilities and university assessments. Eliminate or reduce negative plugs. Budget for new commitments the campus deems to be a high priority.

Slide29: 

Questions?