Proposed Budget Challenges and Funding Changes
Explore the challenges and changes in the proposed budget for FY 2021, including funding increases and internal funding adjustments. The budget passed by the legislature poses challenges, such as the elimination of operating funds increase and the need to address ongoing costs. Internal funding changes focus on utilizing revenue to support campus infrastructure and research initiatives. As the legislature reconvenes, potential budget reductions, including the elimination of salary increases, may impact future funding allocations.
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Presentation Transcript
FY 2021 Proposed Budget June 30, 2025 1
BUDGET PASSEDAS LEGISLATURE ADJOURNED CURRENT STATE FUNDING INCREASES: 1.5% Salary Increase -- $3,014,900 $1,000 minimum Benefit Cost Increases -- $553,100 AS APPROVED BY THE ADVISORY BOARD AND BOT NO TUITION / FEE INCREASES June 30, 2025 2
BUDGET CHALLENGE As the legislature adjourned, the budget passed eliminated the nearly $6 million in Operating Funds increase 5th year in a row for no operating cost increase Cumulative effect about $10 million annually Those costs have not gone away and over time have required the use of reserves that are no longer available. We need to address these costs. June 30, 2025 3
INTERNAL FUNDING CHANGESFOR FY 2021 Within the General Operating Budget, we take the first $12.5 million of F&A Revenue to support the overall campus budget. Excess revenue from Year 1 is carried forward to Year 2 for use in support of research in the colleges and VC Research Office. Sponsored Project Incentive (budgeted at $2.5 million) Distribution to Colleges (budgeted at $600,000) Research Support (varies based on revenue) For FY 2021, the campus will retain those funds to support the campus infrastructure and restore reserves. June 30, 2025 4
INTERNAL CHANGES (CONT.) 000 s $16,400 -12,500 Projected FY 20 F&A Revenue Budget Requirement Carried Forward to FY 21 $3,900 Sponsored Projected Incentive shifted to colleges Budgeted distribution to colleges 2,500 600 Available for campus needs $7,000 June 30, 2025 5
FY 2021 ALLOCATION 000 s Available for campus needs $7,000 Operations (Facilities & ITS) 3,000 Restore reserves 3,000 Chancellor Discretionary Fund 1,000 June 30, 2025 6
MOVING FORWARD The legislature is reconvening and there very likely will be changes to the approved budget. Elimination of the salary increase There exists the potential for a base budget reduction Could be permanent Could be one-time Could be up to 5% or about $8 million for the HSC June 30, 2025 7
WHATS NEXT Our intent is not to alter our tuition plan General tuition Increase 0% Tuition reductions in Medicine and Health Professions implemented We are reviewing potential actions for a 2% or 5% base reductions More to come June 30, 2025 8
