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22 University Budget Cycle July 1st Fiscal Year Begins September 15th Budget Request November 10th Budget Director’s Recommendation December 10 th Governors Appeal Process January 10th Governor’s Budget Recommendation January – April House & Senate Deliberations April 30th Final Budget Decisions May/June Regents Discussions For the New Year June 30th Fiscal Year Ends

SGF – 34.2M GF – 28.1M Restricted – 18.5 Other – 11.7M 3 Major Sources of Revenue 3 Total FY 2010 Budget - $92.5M University Budget

Instruction – 32.4M Academic Support – 8.7M Student Services – 6.7M Institutional Support – 7.0M Physical Plant – 10.0M Research – 3.5M Public Service – 2.3M Scholarships – 9.8M Auxiliary Services – 6.0M Debt Service – 2.2M Local – 2.7M Service Clearing – 1.2M 4 Major Expenditures by Program 4 University Budget Total FY 2010 Budget - $92.5M

55 Major Expenditures by Function University Budget Total FY 2010 Budget - $92.5M

6 State of Kansas Budget State General Fund Summary (Dollars in Millions) Source: Kansas Legislative Research Department Communication dated 7/29/2009 FY 2008 Actual FY 2009 Revised FY 2010 Projected FY 2011 Projected Beginning Balance$935.0$526.6$65.8$0.0 Revenues$5,693.4$5,590.7$5,385.9$5,428.0 Total Available$6,628.4$6,117.3$5,451.7$5,428.0 Total Expenditures$6,101.8$6,051.5$5,451.7$5,959.0 Ending Balance$526.6$65.8$0.0-$531.0 As Percent of Expenditures8.6%1.1%0.0% 6

7 State of Kansas FY 1993 – FY 2010 General Fund Receipts & Expenditures 7 Source: Division of Budget

8 Makeup of University General Use Budget 8 (EST)

9 FY 2009: Response to $1.6 million cut Reduced OOE budgets Positions left vacant Cancelled major software acquisition Reduced travel & equipment acquisitions Encouraged energy savings 9

10 FY 2010: Reductions from FY 2009 base at end of legislative session FY 2009 SGF Base$38,912,540 7% Reduction (DOB Rec.)(2,702,388) 3% Reduction (Omnibus)(1,010,899) Other Reductions(343,484) FY 2010 SGF Base$34,855,769 10

11 FY 2010 SGF Base$34,855,769 2% Allotment (7/2/09)(702,145) Classified Market Adj. (Hay Study)109,335 Other Adjustment (KBOR)13,857 FY 2010 SGF Adjusted Base$34,287,816 $4.6M Reduction in FY 2010 State General Fund FY 2010: Reductions from FY 2010 base after legislative session 11

12 Group Health Insurance (Premiums)173,419 Faculty Promotions74,967 Classified Market Adj. (Hay Study)62,092 Classified Longevity (Funding Shift)94,176 Total Added Costs$404,654 FY 2010: Added Costs 12

13 FY 2010: Making up the $5.0 million gap Reduced Salary & Wage Budgets (28 Positions Affected) $1.2M Reduced OOE Budgets.9M Added Tuition Revenue1.5M Utilized One-Time Reserves1.4M Total$5.0M 13

14 Retain people – our most valuable resource Protect quality of the educational experience for students Protect students – access, scholarship, employment and tuition Share burden across campus Spread impact over two fiscal years Avoid layoffs and furloughs Focus on long-term health and well-being of the university Strictly adhere to policies & laws regarding various fund uses Principles that guide our decisions 14

15 A look ahead at FY 2011 State Revenue – additional cuts are likely Added Costs Group health insurance (GHI) premium increase More employees and spouses on GHI Year 3 of classified pay plan Faculty Promotions Tuition Revenue Student Enrollment 15

16 What we can all do to help Attract students to the university Help students be successful Look for new opportunities Communicate ideas to us 16

17 Questions? 17

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