Clayton State University Budget Build Process Overview

Open Budget Meeting May 3, 2018

Open Budget Meeting CLAYTON STATE UNIVERSITY BUDGET BUILD PROCESS Overall All funding requests must be in alignment with the university s strategic priorities. The use of funds and support of the University s mission from the previous year(s) is considered in developing future budgets. Instructions and criteria for funding requests will be distributed at the start of the budget build process. The budget office will provide reports and timelines to assist in the preparation of funding requests. General Funds Process: I. II. Each Vice President will submit funding requests for the new fiscal year. Informal meeting occurs with each Vice President and the President, Vice President for Business and Operations, Assistant Vice President of Budget and Finance and the Director of Budgets; where the VP discusses their budget needs for the next year. Data gathered from sessions will be compiled and distributed to the Planning & Budget Advisory Council (PBAC). Each Vice President will be given the opportunity to review their request(s) before the PBAC meeting. Then each VP s request goes before the PBAC members for discussion and to answer any questions that the PBAC may have. PBAC members will review the requests in light of the institution s strategic priorities and assign each request as A; B; C; or D priority. Each priority level is assigned a point value: (5) A; (3) B; (2) C; (1) D. All voting sheets are then tallied and results reported to the PBAC. Results of the priority assignment are reported to the President as recommendations for funding. The President retains final decision making authority as to what is funded in the new budget. III. IV. V. VI. VII. VIII. IX. Other Funds: I. Each director and/or VP will present their budget to the Vice President for Business and Operations, Assistant Vice President of Budget and Finance and the Director of Budgets. The President may elect to attend. The proposed budget will be reviewed for reasonableness and support of the strategic plan. The proposed budget requests/recommendations will be presented to the President for final approval. II. III. Budget Finalization: The Vice President for Business and Operations, Assistant Vice President of Budget and Finance and the Director of Budgets will conduct a final review for accuracy and completeness and then post information on the Budget and Finance and the Planning & Budget Advisory Council Websites. The Board of Regents processes will be followed for submission and implementation. 2

Clayton State Universitys Resources State Appropriation Tuition Institutional Fee and Course Fees 54.4% State* 2% Auxiliary Services & Student Life 18% 25% Continuing Education 45.6% Other Indirect Funds 1% 2% 0% Technology Restricted 17% MRR 29% 6% Restrictions Realities Uses Prudent fiscal management required for all sources State Appropriation varies Focus on Financial Ratios Economic conditions have a direct impact on our ability to collect the revenues necessary to satisfy the needs and obligations of the University *6% MRR excluded Salaries and Wages Utilities Supplies and Equipment Technology Facilities and Maintenance Public Safety Campus Activities and Services Capital funds can not be used to pay for salaries and wages State procurement guidelines must be followed Student fees must be used in conjunction with specific services 3

Open Budget Meeting STATE APPROPRIATION & TUITION TRENDS FY14 - FY18 Fiscal Year FY14 FY15 FY16 FY17 FY18* Based on FY18 Budget data as Actuals are not available until after 6/30/18 State Appropriation $ 23,251,922.00 $ 24,067,121.00 $ 25,198,595.00 $ 24,688,217.00 $ 25,584,910.00 Tuition $27,338,759.00 $27,333,575.00 $27,831,086.00 $28,129,766.33 $29,246,500.00 $30,000,000.00 $25,000,000.00 $20,000,000.00 State Appropriation Tuition $15,000,000.00 $10,000,000.00 $5,000,000.00 FY14 FY15 FY16 FY17 FY18* * FY18 Tuition is projected 4

Open Budget Meeting Fall Enrollment 2011-2017 8000 7261 7140 7022 7012 7003 6996 6860 7000 6537 6463 6336 6087 5943 5778 5768 6000 5000 4000 3000 2000 787 777 1000 644 545 430 448 441 425 390 368 332 299 271 225 0 Fall 2011 Fall 2012 Fall 2013 Fall 2014 Fall 2015 Fall 2016 Fall 2017 MOWR Undergraduate Graduate Total Linear (Undergraduate) 5

Open Budget Meeting Fees & Changes Mandatory Fees Athletic Fee - $10 Increase Special Institutional Fees Other Fees Distance Learning 6

Open Budget Meeting FY18 FY19 Teacher Education Internship Fee Discontinued in FY19 Online Course Fee Reduced to $25 per course with maximum of $75 per term 7

Open Budget Meeting Total Students Mandatory Fee Chart Laker Card FY 2016 20 FY 2017 20 FY 2018 20 FY 2019 20 Technology 57 57 57 57 Student Activity 60 60 60 60 Athletic 160 160 160 170 Health 46 46 46 46 Parking 34 34 34 34 Student Activity Center 100 100 100 100 Categories that pay less/none: Distance Learning, eCore, Employees/TAP, Fayette County, Henry County, Joint Enrolled, Main Campus - less than 3 hrs, Senior Citizens, WebBSIT 8

Open Budget Meeting Special Institutional Fee FY 2017 FY 2015 FY 2018 (Estimated) FY 2016 $4,500,000 $541,586 $849,892 $747,745 $710,616 $4,000,000 $3,500,000 $3,544,755 $4,164,500 $4,292,500 $3,000,000 $4,243,500 $4,152,000 $3,532,884 $3,314,608 $3,610,414 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- SIF Rate $250 $250 $250 $250 Full Payment Actual Collected 9

Open Budget Meeting FY18 Budget Wrapping Up Available Funds: Estimated Salary & Benefits Savings Sweep $1,500,000 Budget Spend Estimate Sweep $ 350,000 Total Funds Available $1,850,000 Uses of Funds: Tuition Carry Forward $ 830,000 In-Kind SAC & CE (45/200) (Estimated) $ 245,000 Total Uses of Funds $1,075,000 Possible Funds Available for Various Year-End Items Such as One-Time Funding Requests & Unresolved Budget Issues $ 775,000 10

Open Budget Meeting FY18 Year-End Spend Requests Provost (11 Requests) $ 150,237.00 ITS(17 Requests) $1,176,100.00 Business & Operations (21 Requests) $ 263,358.00 University Advancement (1 Requests) $ 340,000.00 Student Affairs (2 Requests) $ 8,100.00 Spivey (3 Requests) $ 12,640.00 Campus Wide (5 Requests) $ 285,902.00 TOTALS $2,236,337.00 11

Open Budget Meeting UNRESOLVED BUDGET ISSUES Necessary Obligations That Have Occurred or In Progress Signage Utilities Caused Budget Shortfall Interpreters Staff-BOR Music Building Water Proofing $ 5,000.00 $ 145,000.00 $ 50,000.00 $ 205,000.00 $ 19,100.00 #OCR Resolution Costs Subtotal $ 25,000.00 $ 449,000.00 $ 75,000.00 $ 499,100.00 Upcoming Obligations Academic Core Moves Interpreters OneUSG Cost for Travel Subtotal Grand Total $ 25,000.00 $ 90,000.00 $ 12,000.00 $ 127,000.00 $ 576,000.00 to $ 127,000.00 $ 626,100.00 *Potential Issues Academic Core FF&E $ 70,000.00 to $ 700,000.00 (some funds may be needed FY18 for long lead items) #Reminder $830k to $850K Carry Forward 12

CSU Internal FY19 Budget Meetings FY19 Annual Spend Requests Provost (18 Requests) $693,077 Business & Operations (7 Requests) $341,445 ITS (7 Requests) $421,678 University Advancement (1 Request) $45,000 Student Affairs (3 Requests) $192,533 TOTALS $1,693,733 13

Open Budget Meeting Allocation of State Appropriations FY2019 State Appropriation $25,539,423 Formula Funding Enrollment and Other Allocations Enrollment Earnings (Loss) $932,645 Maintenance & Operations (M&O) $18,645 Annualize FY18 Adjustments $25,643 Health Insurance & Retiree Fringes $0 Teacher s Retirement System $781,484 Department of Administrative Services Premiums (DOAS) $(68,761) Total of Enrollment and Other Allocations $1,689,656 Total FY2019 State Funds Budget $27,229,079

CSUs Budget Build FY19 BUDGET BUILD SCENARIO Fall Enrollment 7000 Revenue State Appropriation Tuition Fees & Other General Carry Forward Funds 27,229,079 28,000,000 5,081,255 850,000 61,160,334 Expenditures Updated current budget Funding Available to Distribute 60,183,874 976,460 Required Funding Items added: University Contingency Increase in software licenses Faculty Promotions including benefits Stressors/Market Adjustments 278,000 10,633 71,472 125,000 485,266 Additional Funds Available 491,194 15

Open Budget Meeting 16

Summer Budget CSU Annual Budget is divided into three parts: Fall/Spring/Summer Summer 2018 Revenue is split about 30% for FY18 and 70% FY19 17

Open Budget Meeting Capital Budget FY 2018 MRR $625K Academic Core Renovations oFY18 Requests $6.9M Interior Renovations & FF&E Looking Forward FY 19 Academic Core oFY 19 Chiller & FF&E $5.3M 18

Discussion and Questions 19