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4 Initial Decrease from 2008 $17.8 million Recent Proration 11.0 _____ Total 2009 Decrease $ 28.8 million Down 20.6% from 1 year ago. Current Year Appropriation
5 Division budgets compared to net state appropriation (in millions) Budget Approp. O&M College of Med Hospitals
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9 Division budgets compared to net state appropriation (in millions) Budget Approp. O&M College of Med Hospitals
10 Operations and Maintenance Budget,
11 Operations and Maintenance Net Cut in State Funds from 2008: $16.4 million Increased revenue (tuition, etc.): $5.7 million Internal budget cuts: $1.9 million Net shortfall: $8.8 million
12 COSTS: (“fixed” costs) Benefits: $8.9 million Health insurance: 6.9 million Utilities: 10.8 million Retiree pension: 9.8 million Peehip for retirees: 2.4 million Debt service: $9.9 million TOTAL fixed costs:$48.7 million
13 Others: Supplies/travel/operating $16.6 million Other 1.3 million Scholarships 4.8 million Subtotal: $22.7 million Salaries: $92.5 million TOTAL: $163.9 million
14 Fixed Costs: $48.7 million Others: $22.7 million Salaries: $92.5 million TOTAL: $163.9 million
15 REVENUES: State Appropriations:$69.2 million Tuition and Fees: 72.7 million Other: 13.1 million (Sales of educational services, interest income, grants overhead, and misc.) TOTAL: $155.1 million
16 Total Operations and Maintenance Budget Shortfall, : Costs:$163.9 million Revenues: million ________________________ Shortfall: $ 8.8 million
17 Budget Reduction Measures
18 1)Equipment & Personal Computers (2008 O&M total = $5 million) 2) Travel (2008 O&M total = $3 million) 3) Cell Phones ($350,000 saved) 4) No Across-Board Salary Increases
19 5)Staff Position Freeze 6)Staff Reclassification Freeze 7)Temporary Personnel 8) Overtime Pay
20 Revenue Measures 1) Increased enrollment 2) Increased tuition 3) Control personnel costs
21 USA compared to other organizations affected by the economic downturn: 1. Demand for USA’s products is going up, not down. 2. USA needs to retain employees to address this demand.
22 Cost/savings per 1 percent of payroll (University-wide): $3.1 million (O&M only): $1 million Revenue generated per 1 percent of tuition increase: $573,000
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