Insights from University Budget Meetings and Trends

Open Budget Meeting April 23, 2015

Budget Calendar & Timeline Governor s Proposal January CSU/BOR Request to OPB Aug- Sept General Assembly Winter CSU s Internal Budget Process BOR Allocation June/July Finalized & BOR Axn Spring 2

Clayton State Universitys Resources Tuition & Fees Auxiliary Enterprises StateAppropriations 2015 Major Repair & Renovation (MRR) Sponsored Programs CSU Foundation Endowments Scholarships Unrestricted Annual Giving State Approp. 41.4% Other 58.6% Uses Restrictions Realities 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 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 3

Open Budget Meeting STATE APPROPRIATION & TUITION TRENDS FY09-FY15 Fiscal Year FY10 FY11 FY12 FY13 FY14 FY15 FY16 State Appropriation Tuition $19,818,176 $22,635,358 $21,503,584 $21,736,525 $23,251,922 $24,067,121 $25,198,595 $19,615,429 $22,945,975 $25,539,502 $27,046,979 $28,162,460 $27,130,000* $26,928,500* $29,000,000 $27,000,000 $25,000,000 State Appropriation $23,000,000 Tuition $21,000,000 $19,000,000 $17,000,000 $15,000,000 FY10 FY11 FY12 FY13 FY14 FY15 FY16 * * * FY15 and FY16 Tuition is projected 4

Open Budget Meeting FY2014 FY2015 (Estimated) FY2012 FY2013 $8,000,000 Mandatory Fee $684,722 $996,063 $1,076,644 $7,000,000 $8,186,751 $1,440,164 $7,924,916 $7,908,183 $7,788,412 $7,190,688 $6,831,539 $6,000,000 $6,348,248 $6,348,248 $5,000,000 $4,000,000 $3,000,000 17,231 17,533 17,163 16,579 Total Students Full Payment Actual Collected Mandatory Fee Chart Laker Card Technology Student Activity Athletic Health Parking Student Activity Center Categories that pay less/none: Distance Learning, eCore, Employees/TAP, Fayette County, Joint Enrolled, Main Campus - less than 3 hrs, Senior Citizens, WBSIT FY 2012 20 57 60 160 46 34 75 FY 2013 20 57 60 160 46 34 75 FY 2014 20 57 60 160 46 34 100 FY 2015 20 57 60 160 46 34 100 5

Open Budget Meeting Special Institutional Fee $5,000,000 FY2015 (Estimated) FY2014 FY2013 FY2012 $4,500,000 $519,402 $518,756 $267,588 $298,085 $4,000,000 $3,500,000 $3,000,000 $4,085,165 $4,040,162 $3,837,848 $3,625,994 $2,500,000 $4,383,250 $4,357,250 $4,307,750 $4,144,750 $2,000,000 $1,500,000 $1,000,000 $500,000 $- $250 $250 $250 $250 SIF Rate Full Payment Actual Collected 6

Open Budget Meeting Allocation of State Appropriations FY2016 State Appropriation $24,067,121 Formula Funding Enrollment and Other Allocations Health Insurance & Retiree Fringes $189,130 Maintenance & Operations (M&O) $209,514 Teachers' & Employees' Retirement System $212,416 Merit Based Pay & Employee Recruitment/Retention Initiative $166,503 Department of Administrative Services Premiums (DOAS) $43,911 New Funding for Institutional Priorities (see details below): Three (3) Academic Advisors to support Complete College Georgia effort $160,000 New Storage Area Network (SAN) $150,000 Total of Enrollment and Other Allocation $1,131,474 Total $25,198,595

CSUs Budget Build Revenue FY16 Budget 25,198,595 26,928,500 * 5,656,650 600,000 State Appropriation Tuition Fees & Other General Carry Forward Funds 58,383,745 Includes current Salary, Benefits, Travel, & OS&E Increase TRS $171,099 Increase Health Insurance $ 58,837 Additional funding for AVP Marketing & Communications $ 2,700 M&O Funded Positions: Lab Technician $ 53,200 (2) Custodial Positions $ 54,000 Priority Items Funded by BOR: (3) Academic Advisors $160,000 New Storage Area Network (SAN) $150,000 Expenditures Updated current budget 57,675,885 Funding Available to Distribute 707,860 Required Funding Items added: University Contingency Increase in software licenses Faculty Promotions including benefits Salary Stressors including benefits Replacement Storage Area Network (SAN) Funding for Merit Raises including benefits 150,000 17,079 59,030 53,872 58,000 388,480 726,461 Unresolved Issues Enterprise Back-Up System Litigation 216,000 20,000 * Tuition will need to be reviewed for enrollment numbers 8

Summer Short Fall CSU Annual Budget is divided into three parts: Fall/Spring/Summer Summer 2014/2015 Budget: $3,740,000 Revenue: $1,381,267* Shortfall: $2,357,733 Summer 2015 Revenue is split about 40% for FY15 and 60% FY2016 * As of April 17, 2015 9

Open Budget Meeting Merit Salary Increase Salary and Administrative Policy The Board of Regents allocated to each institution funds to provide for salary increases for employees. Salary increases shall be awarded solely on merit, with a range determined by the institutional president. Institutions are permitted to augment state funds using other appropriate fund sources to create a salary pool. It is expected that individual merit salary increases will be reasonably distributed among employees based on the range determined by the institutional president. Across-the-board increases are not permitted. Salary increases may exceed ten percent for employees exhibiting exceptionally meritorious performance; however, institutions must request prior approval from the Chancellor in writing of any merit increases exceeding ten percent. Additionally, the policy allows flexibility for institutions to make appropriate promotions or position reclassifications, special changes to recruit or retain employees, adjustments for targeted populations or adjustments to address market and compression issues. Such salary adjustments must be supported by appropriate documentation (e.g., market analysis or internal salary studies). Employees covered from other fund sources such as sponsored funds and auxiliary funds will be subject to the same policy requirements noted above and must be paid from the corresponding fund source rather than state funds.* CSU amount $166,503 from USG $159,478 from CSU Total 1% $325,981 (only funds for State funded positions) *Total 1% $42,197 (for Auxiliary and other non-State funded positions) 10

Open Budget Meeting Capital Budget FY 2015 Major Repairs & Renovations(MRR) allocation of $~525,000 can be used for some of these projects oUpgrade HVAC System in Arts & Sciences, Phase II Funding authorized for FY 2014 for the New Science Building ($19.8M) Funding for FF&E for the New Science Building ($2.9M) Successful Request for FY16 Academic Core Renovation of $1.4M 11

Open Budget Meeting FY15 One Time Expenditures Majority of funding available for one time expenditures will be utilized for Library renovations 12

CSU Internal FY16 Budget Meetings Total of 64 Requests. 17 One-Time Funding: $2,436,290. 47 Permanent Funding: $2,753,826. 13

Performance Funding Legislators have some unanswered issues. During summer they will study and review. Some institutions also expressed concerns about funding levels. Anticipate start in FY17. 14

Mandatory Fees Proposed Revision to the Mandatory Fee Sections 7.3.2.1 Mandatory Student Fees; 7.3.2.2 Elective Fees and Special Charges; 7.3.4.2 Waiver of Mandatory Fees A. Fees assessed to all undergraduate and all full-time undergraduate students will be considered mandatory. B. Requires institutions to seek student input and Board approval for any fee that is assessed to all students within one or more grade levels (e.g., all freshman or all lowerclassmen). C. Mandatory food service fees not associated with housing are explicitly listed as an example of a mandatory fee along with athletic fees, technology fees, etc. in an effort to clarify issues related to mandatory fees and dining plans. 15

PeopleSoft Upgrade Our current PeopleSoft Version 8.9 was upgraded to 9.2 Reduce Modifications Reduce Complexity Increase Standardization Improve Expense module functionality Increase automation of current manual processes User Acceptance Test (UAT) occurred in February 2015 Campus Training scheduled for April 29, 2015 16

Discussion and Questions 17