May 1, 2003 University Town Hall Budget Meeting

2 Considerations for Budget Planning Projected budget based on: –15% tuition increase –Enrollment held steady Financial aid status is still unclear Legislature has not reached a decision –House proposal: 13.6% cut to MnSCU –Senate’s proposal: 8% cut to MnSCU –Governor’s proposal: 15.7% cut to MnSCU MnSCU tuition approval: –First reading: June –Second reading: July

3 FY’04 Proposed Budget Reductions Academic Affairs: Various positions vacated or reallocated $1,716,592 AISEC visiting student 9,000 International visiting professor 20,000 Moving, severance, substitution and sick pay 450,000 Academic Initiatives 100,000 Entrepreneurial Center 25,000 Sub-total $2,320,592

4 FY’04 Proposed Budget Reductions Administrative Affairs: Expenditure/Revenue transfer Printing Services $50,000 Various positions vacated or reallocated 35,000 Savings heat/air conditioning adjustment 75,000 Public Safety 30,000 Staff development (1/2) 22,250 Colbert lease 35,000 Tennis Center lease 12,000 Phone system 100,000 Repair and Replacement 200,000 Memberships 10,000 Sub-total $569,250

5 FY’04 Proposed Budget Reductions University Advancement: Various positions vacated or reallocated $166,441 Operating budget reductions 55,000 Founders Day, travel, events reductions 20,000 Internal process streamline 5,000 Sub-total $246,441

6 FY’04 Proposed Budget Reductions Student Life and Development: Various positions vacated or reallocated $215,882 Reduce Kick-off budget (1/2) 20,000 Sub-Total $235,882

7 FY’04 Proposed Budget Reductions President's Office: Athletics $50,000 University Wide: Voluntary leave without pay 45,000 Administrative support fees 200,000 Supply and equipment 133,884 Unused accounts 20,000 Sub-total $448,884

8 FY’04 Proposed Budget Reductions Academic Affairs $2,320,592 Administrative Affairs 569,250 University Advancement 246,441 Student Life & Development 235,882 President’s Office and University-wide $448,884 Total FY’04 Budget Reduction$3,574,608* * $246,441 soft money through University Advancement is not included in the total

9 Assumed Variables for Planning Enrollment: FY’04, FY’05=14,325 State allocation for FY’04, FY’05 based on MnSCU estimate from Governor's Budget Plan as of 2/18/03 Salary 5% FY’04, 5% FY’05 Fringe increase to 30% of salaries in FY’04, FY’05 Utilities increase 3% in FY’04, FY’05 Credit card expense adjusted for web-site payment Legal costs increase $200,000 FY’04, FY’05 MnSCU policy regarding reserves - requires 5% reserve, adjusted to 3% FY’04, FY’05

10 Possible Tuition Increases 15% across the board increase International student increase of $10/credit Differential tuition for College of Business and other programs –Investigate implications –Consultation with Student Government

11 Possible Restructuring SCSU organizational structure should: –Reflect values and goals of the University –Promote student intellectual and personal development Consultants suggested three alternatives –Report is available online at: Campus-wide Task Force will: –Develop set of recommendations –Consult with University community to solicit feedback –Submit final recommendations by Nov.

12 Restructuring Process Timeline April 20 Consultant’s Report May 2003 Creation of Task Force Summer 2003 Task Force meets Sept. - Nov Recommendations and consultation Faculty Staff Students Goal: Implementation July 1, 2004

May 1, 2003 Questions or Comments?