Open Budget Meeting April 23, 2015

2 Budget Calendar & Timeline CSU’s Internal Budget Process Governor’s Proposal January General Assembly Winter Finalized & BOR Axn Spring BOR Allocation June/July CSU/BOR Request to OPB Aug- Sept

3 State Appropriations 2015 Major Repair & Renovation (MRR) Tuition & Fees Auxiliary Enterprises Salaries and Wages Utilities Supplies and Equipment Technology Facilities and Maintenance Public Safety Campus Activities and Services Capital funds can not be used to pay for salaries and wages State procurement guidelines must be followed Student fees must be used in conjunction with specific services Prudent fiscal management required for all sources State Appropriation varies Focus on Financial Ratios Economic conditions have a direct impact on our ability to collect the revenues necessary to satisfy the needs and obligations of the University UsesRestrictionsRealities CSU Foundation Endowments Scholarships Unrestricted Annual Giving Sponsored Programs Clayton State University’s Resources

4 Open Budget Meeting STATE APPROPRIATION & TUITION TRENDS FY09-FY15 Fiscal Year State AppropriationTuition FY10$19,818,176$19,615,429 FY11$22,635,358$22,945,975 FY12$21,503,584$25,539,502 FY13$21,736,525$27,046,979 FY14$23,251,922$28,162,460 FY15$24,067,121$27,130,000* FY16$25,198,595$26,928,500* * FY15 and FY16 Tuition is projected

5 Open Budget Meeting Mandatory Fee ChartFY 2012FY 2013FY 2014FY 2015 Laker Card20 Technology57 Student Activity 60 Athletic 160 Health 46 Parking34 Student Activity Center Categories that pay less/none: Distance Learning, eCore, Employees/TAP, Fayette County, Joint Enrolled, Main Campus - less than 3 hrs, Senior Citizens, WBSIT Total Students

6 Open Budget Meeting $267,588

Open Budget Meeting Allocation of State Appropriations FY2016 State Appropriation$24,067,121 Formula Funding ‐ Enrollment and Other Allocations Health Insurance & Retiree Fringes$189,130 Maintenance & Operations (M&O)$209,514 Teachers' & Employees' Retirement System$212,416 Merit Based Pay & Employee Recruitment/Retention Initiative$166,503 Department of Administrative Services Premiums (DOAS)$43,911 New Funding for Institutional Priorities (see details below): Three (3) Academic Advisors to support Complete College Georgia effort$160,000 New Storage Area Network (SAN)$150,000 Total of Enrollment and Other Allocation$1,131,474 Total$25,198,595

8 CSU’s Budget Build Revenue FY16 Budget State Appropriation 25,198,595 Tuition26,928,500 * Fees & Other General5,656,650 Carry Forward Funds 600,000 58,383,745 Expenditures Updated current budget57,675,885 Funding Available to Distribute707,860 Required Funding Items added: University Contingency 150,000 Increase in software licenses 17,079 Faculty Promotions including benefits 59,030 Salary Stressors including benefits53,872 Replacement Storage Area Network (SAN)58,000 Funding for Merit Raises including benefits 388, ,461 Unresolved Issues Enterprise Back-Up System216,000 Litigation20,000 * Tuition will need to be reviewed for enrollment numbers Includes current Salary, Benefits, Travel, & OS&E Increase TRS $171,099 Increase Health Insurance $ 58,837 Additional funding for AVP Marketing & Communications $ 2,700 M&O Funded Positions: Lab Technician $ 53,200 (2) Custodial Positions $ 54,000 Priority Items Funded by BOR: (3) Academic Advisors $160,000 New Storage Area Network (SAN) $150,000

Summer Short Fall CSU Annual Budget is divided into three parts: Fall/Spring/Summer Summer 2014/2015 Budget: $3,740,000 Revenue: $1,381,267* Shortfall: $2,357,733 Summer 2015 Revenue is split about 40% for FY15 and 60% FY2016 * As of April 17,

10 Open Budget Meeting Merit Salary Increase Salary and Administrative Policy The Board of Regents allocated to each institution funds to provide for salary increases for employees. Salary increases shall be awarded solely on merit, with a range determined by the institutional president. Institutions are permitted to augment state funds using other appropriate fund sources to create a salary pool. It is expected that individual merit salary increases will be reasonably distributed among employees based on the range determined by the institutional president. Across-the-board increases are not permitted. Salary increases may exceed ten percent for employees exhibiting exceptionally meritorious performance; however, institutions must request prior approval from the Chancellor in writing of any merit increases exceeding ten percent. Additionally, the policy allows flexibility for institutions to make appropriate promotions or position reclassifications, special changes to recruit or retain employees, adjustments for targeted populations or adjustments to address market and compression issues. Such salary adjustments must be supported by appropriate documentation (e.g., market analysis or internal salary studies). Employees covered from other fund sources such as sponsored funds and auxiliary funds will be subject to the same policy requirements noted above and must be paid from the corresponding fund source rather than state funds.* CSU amount—$166,503 from USG $159,478 from CSU Total 1% $325,981 (only funds for State funded positions) *Total 1% $42,197 (for Auxiliary and other non-State funded positions)

11 Open Budget Meeting

12 Open Budget Meeting

Total of 64 Requests. –17 One-Time Funding: $2,436,290. –47 Permanent Funding: $2,753, CSU Internal FY16 Budget Meetings

Legislators have some unanswered issues. –During summer they will study and review. Some institutions also expressed concerns about funding levels. Anticipate start in FY Performance Funding

Mandatory Fees Proposed Revision to the Mandatory Fee Sections Mandatory Student Fees; Elective Fees and Special Charges; Waiver of Mandatory Fees A.Fees assessed to “all undergraduate” and “all full-time undergraduate” students will be considered mandatory. B. Requires institutions to seek student input and Board approval for any fee that is assessed to all students within one or more grade levels (e.g., all freshman or all lowerclassmen). C. Mandatory food service fees not associated with housing are explicitly listed as an example of a mandatory fee along with athletic fees, technology fees, etc. in an effort to clarify issues related to mandatory fees and dining plans. 15

PeopleSoft Upgrade Our current PeopleSoft Version 8.9 was upgraded to 9.2 –Reduce Modifications –Reduce Complexity –Increase Standardization –Improve Expense module functionality –Increase automation of current manual processes User Acceptance Test (UAT) occurred in February 2015 Campus Training scheduled for April 29,

Discussion and Questions 17