Town Hall Meeting Budget Allocation Nov. 15 & 16, 2005

Historical Perspective State tax rebate in 2000 September 11, 2001 State budget deficits in 2002 Campus cost saving measures in 2003 Positive budget balance in 2004 One-time and Permanent Strategic Investments in 2005

Current Issues Internal Issues Three years of declining enrollment Increasing enrollment in on-line courses Low retention and graduation rates External Issues and Opportunities Projected decline in high school graduates Projected increase in non-traditional students Opportunity to pursue applied doctorate degrees Closing of General College at U of M

Collaborative Budget Process Meet and Confer with bargaining units Student government consultation Town Hall Budget meetings

Initial Budget Assumptions Enrollment13,90014,200 Tuition increase 4%0% Salaries 4%4% Health insurance 7.5%7.5% Fuel increase 55% 5% Supplies and equipment 3%2% Tuition waivers GAs4%0% Reserve balance5%5% Debt service based on FY 06 appropriation November 1, 2005 Office of the Chancellor allocation FY 06FY 07

Budget Variables Issues Pending for FY’06, FY’07 Final Contract Settlement Costs Tuition rate for FY07 (Chancellor’s Allocation Adjustment rec’d Nov.1)

FY ’06 Allocations Update Proposed Additions to base: Began to restore funding levels to that of FY’03 and FY’04 Allocated in spring, effective July 1, 2005 Contingent Additions to base: Enhance operations to provide a better educational environment for our students Strategic planning themes Allocated in summer, effective July 1, 2005

Additional Graduate assistants Accreditation expenses Additional Undergraduate Studies faculty and student development Contingent Additions: Academic Distinction

Contingent Additions: Diversity & Social Justice Additional ADA accommodations SEVIS coordinator in International Studies Enhance Respect and Responsibility program

Contingent Additions: Service Community Campus security officer Additional 75% FTE academic advisor New student kickoff activities MN Campus Compact membership (1/2 funded by SL&D)

Contingent Additions: Technology Electronic classrooms LR&TS equipment Computer security technician

Contingent Additions: Univ./Community Relations Recruitment-focused advertising Additional development position Athletic Media Relations position KVSC position (restore manager cuts)

Contingent Additions: University Infrastructure 2 general maintenance workers 1 trades maintenance worker Strategic planning position (Institutional Effectiveness) Repair & Replacement funding restoration Maintenance vehicles

Budget Planning Process for FY ’07 Student recruitment and retention Student support University infrastructure Based on strategic planning themes Parameters for priorities

FY’06 & FY’07 Budgets FY’06AdjustmentsFY’07 State Appropriation 52,486,476(709,261)51,777,215 Tuition 66,596,4101,429,65068,026,060 Other 2,316,0001,200,0003,516,000 Total Gross Revenue 121,398,8861,920,389123,319,275 Enrollment Fluctuation (750,000) Total Net Revenue $121,398,8861,170,389$122,569,275 Salaries 73,524,3982,947,81276,472,210 Fringe 21,520,0271,263,77022,783,797 Supplies & Equipment 15,942,971379,18616,322,157 Fenced & Contractual 2,026,98720,1072,047,094 Permanent Investments 4,385,942996,0865,382,028 Reserve Requirement 155,000 Total Expenditures117,400,325 5,761,961123,162,286 Balance 3,998,561(4,591,572)(593,011)

Proposed Additions to FY’06 & ’07: Budget Implications Budget AdditionsFY’06FY’07 Balance (11/01/05)$3,998,561($593,011) Academic Distinction(2,052,725)(2,147,100) Service Community(1,506,000)(916,000) Diversity & Social Justice---(140,000) University Community Relations ---(273,000) Total439,836(4,069,111) Tuition Increase (if balanced on tuition) ---6%

Proposed Additions to FY’06 & ’07: Academic Distinction Academic program start-up (salaries and operating budget) COSE study and pre-design Employment certification fees Electron microscope First Year Experience Program (Associate Dean, clerical and program expansion) Graduate student recruitment & scholarships

Institutional Effectiveness International admissions & recruitment Marketing MnSCU/COE Teacher Center On-line classes PSEO funding Search firms/ Deans & VP Twin Cities admissions recruiter 801 renovation (Ethnic Studies/advising) Proposed Additions to FY’06 & ’07: Academic Distinction

Proposed Additions to FY’06 & ’07: Diversity & Social Justice CARE Campus Climate Initiative Under-served student services

Proposed Additions to FY’06 & ’07: Service Community 24/7 library access (student request) Call box cameras Career Services/Athletics Counseling & Psych Services Division of General Studies (partial restoration, director, and program expansion) Furnishings & equipment Grad asst/HR Kick Off Week expansion Purchase th Ave S. Risk manager

Proposed Additions to FY’06 & ’07: University Community Relations Fundraising campaign support Graphics Graduate Assistant Alumni Office receptionist (part-time) (partial restoration of cuts)

What Comes Next? November 16 – FY 07 Student Consultation letters to MSUSA November 21 – President’s Council approves final FY 07 budget materials & submits to Chancellor’s office December 7 – MnSCU Board holds public hearings January – Final MnSCU Board approval February – FY 06 budget updated with Spring enrollment figures, and final FY 07 budget published on campus May – FY 07 budget detail sheets issued to departments June – FY 07 budgets entered in system

And finally… …FY 08 and FY 09 budget discussions begin in the spring!

Town Hall Meeting Questions or Comments? For a copy of this presentation and complete budget documents discussed go to: