1. 2008 Budget Forum 2008 BUDGET FORUM Larry A. Nielsen Provost Executive Vice Chancellor Charles D. Leffler Vice Chancellor Finance & Business Terri Lomax Interim Vice Chancellor Research & Graduate Studies

2. 2008 Budget Forum BUDGET 101

3. 2008 Budget Forum How big is the pie?

4. 2008 Budget Forum

8. How is the pie sliced?

9. 2008 Budget Forum

10. What ingredients go into the pie?

11. 2008 Budget Forum

14. Federal Contracts & Grants$114,000,00044.3% State/Local Contracts & Grants$38,000,00014.8% Non-Governmental Contracts & Grants$50,000,00019.5% Non-Capital Gifts & Grants$55,000,00021.4% TOTAL Contracts & Grants$257,000,000100% Sources of Grants & Contracts

15. 2008 Budget Forum 2007-08 Federal Grants & Contracts $114 Million National Science Foundation23% Department of Agriculture20% Department of Health & Human Services (NIH)14% Department of Education14% Department of Defense10% Department of Commerce5% Department of Energy6% National Aeronautics & Space Agency2% Environmental Protection Agency2% Department of the Interior1% Department of Homeland Security1% Other2%

16. 2008 Budget Forum

18. Sources of Tuition & Fees $170 Million Resident Tuition$107,000,00062.9% Non-Resident Tuition$43,000,00025.3% Extension Instruction$7,600,0004.5% Application Fees$2,200,0001.3% Educational & Technology Fees$10,200,0006.0% TOTAL$170,000,000100%

19. 2008 Budget Forum

20. How does the pie get bigger?

21. 2008 Budget Forum Tuition NC State is a “best value” Tuition and fees are second-lowest among peers Campus Initiated Tuition increases (CITI) Board of Governors requirements – 6.5% cap – Lower quarter of peers

22. 2008 Budget Forum Legislative Increases Continuation - Inflationary - Legislative - Enrollment Expansion - New programs Capital - Bricks and mortar - Repair and renovation

23. 2008 Budget Forum Grants & Contracts

24. 2008 Budget Forum BUDGET 102

25. 2008 Budget Forum Strategic Budgeting UNC Tomorrow Enrollment Growth and CITI Compact Planning Facilities & Administrative Budget reductions

26. 2008 Budget Forum Recent Trends MEASURE2004-052005-062006-072007-08 Total Enrollment29,95730,14931,13031,802 % Graduate Student Enrollment20.9%21.3%20.8%21.5% Full-Time Permanent Faculty1,6381,6711,6521,723 Student-to-Faculty Ratio15.716.016.316.2 Average Faculty Salary$74,390$76,040$80,650$84,570 Research Expenditures $ (000s) per Faculty FTE$147.1$146.1$146.2$151.2 Instructional Expenditures per Student FTE$9,258$9,712$10,149N/A

27. 2008 Budget Forum Enrollment Change Allocation 2008-09 Academic Affairs Distance EducationCVMTOTAL% Academic Affairs$14,037,734$1,408,100$703,701$16,149,53565.58% Library$1,517,370$138,885$7,975$1,664,2306.76% Information Technology$1,111,167$101,705$7,459$1,220,3314.96% Other Institutional Support$5,204,489$353,137$34,939$5,592,56522.70% Total$21,870,760$2,001,827$754,074$24,626,661100.00%

28. 2008 Budget Forum Campus Initiated Tuition Increase 2008-09 Campus-Initiated Tuition Rate Increases Undergraduate Resident CITI$100 Undergraduate Nonresident CITI$200 Graduate Resident CITI$0 Graduate Nonresident CITI$0 FTE Used to Project Revenue Undergraduate Residents19,93076% Undergraduate Nonresidents1,4095% Graduate Residents3,17012% Graduate Nonresidents1,7097% Total FTE26,218100% Projected Revenue Undergraduate Residents$1,993,00088% Undergraduate Nonresidents$281,80012% Graduate Residents$00% Graduate Nonresidents$00% Total Revenue$2,274,800100%

29. 2008 Budget Forum 2008-09 CITI Allocation Financial Aid$957,00042.1% Pack Promise$400,00017.6% Sub-total$1,357,00059.7% GSSP$00.0% Faculty Salaries Promotional Bonuses$410,40918.0% Salary Increases$158,2917.0% Sub-total$568,70025.0% Academic Support$349,10015.3% Total$2,274,800100.0%

30. 2008 Budget Forum Compact Plan Implementation COLLEGE2008-09 Academic Budget % of Total Academic Budget 2008-09 Allocation % of Total Allocation Agriculture and Life Sciences$23,095,4229. 7%$1,043,17510.2% Design$7,274,6803.1%$782,6837.7% Education$15,491,5796.5%$901,7228.9% **Engineering$66,672,73728.1%$896,5388.8% Natural Resources$7,717,0093.3%$389,9643.8% Humanities & Social Sciences$32,353,61013.6%$2,395,13123.5% Physical & Mathematical Sciences$34,466,26914.5%$1,504,12314.8% Textiles$7,970,2743.4%$461,2374.5% Veterinary Medicine$26,422,74911.1%$239,3532.4% Management$15,654,9626.6%$1,564,39715.4% Subtotal Colleges$237,119,291100.0%$10,178,323100.0% Vice Provosts$44,984,759$3,495,138 Libraries$23,879,553$1,664,230 Subtotal Provost’s Units & Libraries$68,864,312$5,159,368 TOTAL$305,983,603$15,337,691 **Engineering received $5M in 2007-08 and $2M in 2008-09 through the expansion budget

31. 2008 Budget Forum Facilities & Administrative (F&A) Receipts Generated from Sponsored Grants & Contracts F&A cost rate structure is Federally established F&A is cost recovery, not a fee nor a profit Cost of providing common services - research administration - utilities & facilities maintenance - payroll & accounting services - public safety - library, IT, etc.

32. 2008 Budget Forum F&A Receipts In millions of dollars

33. 2008 Budget Forum F&A Allocations 2007-2008 Total F&A = $29,539,786 2008-2009 F&A Budgeted = $29,500,000 AreaFor every $ reimbursed, amount negotiated 15% special allocation &GSSP For every $ reimbursed, amount allocated 85% Colleges (including special allocations) 36.9%100%46.0% Research Administration4.4%3.5% Building Use (Centennial Campus Infrastructure and Capital Debt Service) 9.2%11.2% Library2.7%2.3% Office of Information Technology7.0%5.5% Institutional Administration39.8%31.5% Total100%

34. 2008 Budget Forum 2008-09 Budget Reduction Summary State Appropriated Funds Budget CodeContinuing Base BudgetBudget Reductions Academic Affairs$515,095,651$17,677,839 Agricultural Research Service$71,095,095$2,601,236 Cooperative Extension Service$60,207,442$2,082,471 University Total$646,398,188$22,361,546

35. 2008 Budget Forum 2008-09 Budget Reductions Academic Affairs Budget Code CutStrategyAmount PACE Reduction – RecurringCentral$1,065,424 Flexibility Reduction – Recurring Budget Principles (50%)$1,145,148 Across the Board (50%)$1,145,148 Allotment Reversion – Non-Recurring Central (25%)$3,580,530 Budget Principles (25%)$3,580,530 Across the Board (50%)$7,161,059 University Total$634,877,250$17,677,839

36. 2008 Budget Forum 2008-09 Budget Reductions Academic Affairs Budget Code Budget UnitContinuing Budget% of Total Total Reductions% of Total Colleges$237,119,29146.0%$5,502,62631.1% Library$23,879,5534.7%$899,3315.1% Provost Units$44,984,7598.7%$3,008,94417.0% SUBTOTAL Provost & Colleges$305,983,60359.4%$9,410,90153.2% Utilities$30,558,5755.9%$539,6963.1% Other Institutional Support$105,815,72520.5%$4,542,22225.7% Personnel Benefits Budget$69,737,74813.6%$1,394,7557.9% Tuition Reserve$3,000,0000.6%$1,790,26510.1% ACADEMIC AFFAIRS TOTAL$515,095,651100.0%$17,677,839100.0%

37. 2008 Budget Forum 1.Expect recurring cuts 2.University Budget Advisory Committee (UBAC) 3.What to stop doing? 4.What to keep or start doing? (UNC Tomorrow) 5.New Compact Plan (09-12) (planning guidelines to come) 6.Your ideas? For 2009-11

38. 2008 Budget Forum Questions? www.provost.ncsu.edu www.ncsu.edu/finance-business