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2010–2011 CAPITAL AND OPERATING BUDGET UNIVERSITY OF KENTUCKY.

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Presentation on theme: "2010–2011 CAPITAL AND OPERATING BUDGET UNIVERSITY OF KENTUCKY."— Presentation transcript:

1 2010–2011 CAPITAL AND OPERATING BUDGET UNIVERSITY OF KENTUCKY

2 Operating Budget Calendar Fall: Budget development process began with collecting revenue estimates; fixed cost increases; and programmatic budget requests January 5: 2010 General Assembly convened Winter/Spring: President’s Cabinet reviewed preliminary incremental revenues and expenses and set priorities; Provost held discussions with UCAPP April 15: 2010 General Assembly adjourns without passing budget April 23: CPE sets tuition and mandatory fees parameters April 27: Board of Trustees approves tuition and mandatory fees May 29: General Assembly passes biennial budget in Extraordinary Session June 8: Board of Trustees considers recommended University budget

3 Where the money comes from and what it pays for Operating Budget - $2.5 Billion Undesignated General Funds Money comes from: State appropriations Tuition Investment income Service assessments Pays for: Instruction Public service Administrative support Scholarships Designated General Funds Money comes from: UK HealthCare County appropriations Mandatory fees Course and program fees Pays for: Public service Instruction

4 Where the money comes from and what it pays for Operating Budget - $2.5 Billion) Auxiliary Funds Money comes from: UK Athletics Housing Dining Parking Pays for: Self-supporting auxiliary units pay all their expenses and receive no taxpayer or tuition support Restricted Funds Money comes from: Research grants and contracts Endowment income Gifts Federal and state student aid Pays for: Research Scholarships Public service Fund Balance Money comes from: Savings from prior years Pays for: Capital projects Faculty start-up packages Pilot programs

5 UK’s Operating Budget (in billions)

6 Budget at a Glance Little Change – minor changes since April tuition and fees presentation Little Growth - increase of only $38.5 million (1.6 percent) over Less State Support Again – decrease of $4.4 million from and $28.6 million since December 2007 Critical Investments – General Education, “Fighting Fund”, Employee Benefits Concern About “What’s Next”

7 Operating Budget Revenue Change Recurring: Undesignated General Funds$ 577,073,900$ 585,952,700$ 8,878,800 Designated General Funds1,205,097,8001,210,977,3005,879,500 Auxiliary Funds125,154,500133,591,8008,437,300 Restricted Funds358,807,300368,876,30010,069,000 Non-recurring: Fund Balances164,509,100169,717,1005,208,000 Total$2,430,642,600$2,469,115,200$38,472,600

8 Commonwealth of Kentucky Budget (HB 1) State Support for Operations o $4.4 million (1.4%) reduction o Includes $17.2 million of federal State Fiscal Stabilization Funds (SFSF) o $3.3 million (1.0%) additional reduction o No SFSF

9 Kentucky State Budget Reshaped by Cut after Cut* Source: Courier Journal, June 5, 2010

10 State Support - net of debt service (in millions) For FY , the state replaced $21.1 million in state appropriations with federal stimulus funds. For FY , the state will replace $17.2 million in state appropriations with federal stimulus funds. $289.3 Federal Stimulus Funds

11 State Support - net of debt service (in millions) For FY , the state replaced $21.1 million in state appropriations with federal stimulus funds. For FY , the state will replace $17.2 million in state appropriations with federal stimulus funds. $289.3 Federal Stimulus Funds

12 Tuition and Mandatory Fee Revenue and Net State Support (actual in millions) State support net of debt service and mandated programs. Includes stimulus funds. *Projected

13 Undesignated General Funds Estimated Fixed Cost Increase - FY Personnel: Faculty Promotions/Fighting Funds$937,700 Benefits 7,281,900$8,219,600 Operating Expenses: Livestock Disease Diagnostic Center392,000 Student Financial Aid2,851,000 Implementation of General Education Curriculum 2,689,200 Utilities1,000,000 Other Operating Expenses 722,000 Total Fixed Cost Increase $15,873,800

14 FY Funding Sources - Operating State Appropriations (1.4% budget cut)($4,395,700) Livestock Disease Diagnostic Center392,000 Tuition Revenue14,670,900 Other Revenues (1,788,400) Total Source Increment - Operating$8,878,800

15 FY Funding Gap - Operating Total Fixed Costs Increases$15,873,800 Total Revenue Decreases 8,878,800 Funding Gap – Operating($6,995,000)

16 Operating Budget Revenue Changes Thru State Support (Excluding Earmarks) Fixed Costs and Investments (including Student Financial Aid) Tuition and Other Revenue Total Shortfall FY $ 19,595,700 $ (53,013,000) $ 33,417,300 $ - FY $ (19,817,500) $ (8,214,500) $ 9,139,300 $ (18,892,700) FY $ (6,365,400) $ (15,778,500) $ 14,805,200 $ (7,338,800) FY $ (4,395,700) $ (15,481,800) $ 12,882,500 $ (6,995,000) FY $ (3,318,500)???

17 Faculty and Staff  One-time Payment Recommendation  Faculty and Staff (excluding UK HealthCare):  $1,000 one-time payment for eligible faculty and staff earning less than $70,000  One-time payment will be phased-out for faculty and staff earning $70,000 or more but less than $75,000 (minimum $200)  Eligible part-time faculty and staff will receive proportionate amount

18 Faculty and Staff* Estimated One-Time Payment Source of Funds: Undesignated General Funds$5,450,000 Other$1,900,000 Number Number of RecipientsPercentage Cost Including Benefits Faculty 1, %$ 750,000 Staff 6,4505,97593% 6,600,000 Total 8,2206,71082%$7,350,000 *Excluding UK HealthCare

19 Commonwealth of Kentucky Budget (HB 1) Capital Projects – Agency Bond Authorizations Construct New Housing$30,000,000 Guaranteed Energy Savings Performance Contract$25,000,000 Upgrade Student Center Infrastructure$17,805,000 Dentistry Clinical Projects$10,990,000 Construct Data Center$40,000,000 Purchase Pollution Controls$22,600,000 Construct Building Elevator Systems$5,000,000

20 Capital Budget The Capital Budget includes: o 18 active projects totaling $845 million o 28 potential projects totaling $409 million All projects have legislative authorization. UK Board of Trustees will continue to review and approve capital projects prior to initiation.

21 2010–2011 CAPITAL AND OPERATING BUDGET UNIVERSITY OF KENTUCKY


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