New Budget Model Third Year Results

Prior budget system featured central control and fixed budgets New budget system is variable with decentralized decision-making New system began in July 2005 This report summarizes results for the third year under the new system.

Funding Tied to Revenue Generated: State Appropriations Tuition Special Programs Fees Facilitates enrollment growth to 8,000 students

State AppropriationsTuitionSpecial ProgramsFees Note: Prior agreements for special programs, fees and carry forward policy are incorporated into the new budget model.

Timing of Transfers Fees – each semester Special programs – each semester Tuition – end of year Updates Provided during the year

Note: The special revenue agreement for NetPlus ended in FY07, resulting in the reallocation of both actual and budgeted tuition revenue from Special Program Tuition to Regular Tuition in FY08.

FY06: 3% FY07: 5% FY08: 9% How has the new budget model impacted available funding as compared to the old system?

FY06: 14% FY07: 14% FY08: 10% How has the new budget model impacted available funding as compared to the old system?

FY06: 7% FY07: 13% FY08: 25% How has the new budget model impacted available funding as compared to the old system?

FY06: 5% FY07: 1% FY08: 0% How has the new budget model impacted available funding as compared to the old system?

FY06: -4% FY07: -8% FY08: -12% How has the new budget model impacted available funding as compared to the old system?

FY06: 0% FY07: 1% FY08: 3% How has the new budget model impacted available funding as compared to the old system?

FY06: 2% FY07: 4% FY08: 14% How has the new budget model impacted available funding as compared to the old system? Note: The increase in FY08 is due to revenue generated by the Early College program and First Year Experience courses, which are administered by the Provost’s Office.

FY06: 3% FY07: 6% FY08: 6% How has the new budget model impacted available funding as compared to the old system?

FY06: 1% FY07: 1% FY08: 1% How has the new budget model impacted available funding as compared to the old system?

FY06: 0% FY07: 0% FY08: 0% How has the new budget model impacted available funding as compared to the old system?

FY06: 1% FY07: 2% FY08: 4% How has the new budget model impacted available funding as compared to the old system?

FY06: 1% FY07: 1% FY08: 1% How has the new budget model impacted available funding as compared to the old system?

 Revenue Targets: Undergraduate – assumed tuition up 5.9% and enrollment up 2% Graduate – assumed tuition up 4.9% with varied enrollment assumptions by program  Change in State Appropriations  Change in Fixed Costs Note: Fixed costs include utilities, debt service payments, maintenance contracts, business operation and insurance recharges.

 Budget Model Worked Well  Level of understanding varies  Results varied by unit  Graduate payouts exceeded targets  Undergraduate payouts exceeded targets  Budget model payouts in line with enrollment

 Give top priority to revenue and enrollment growth  Set aside a reasonable reserve, then invest the rest to support increasing enrollment  Consider deployment of available resources to areas with highest growth potential  Work cooperatively with other groups to increase enrollment

VCA OfficeDave Barthelmes Financial ServicesJerry Glasco Christy Brownell Website

How is the budget set for the campus? The budget is set based on assumptions regarding enrollment and tuition rates, state appropriations, changes in fixed costs and new initiatives. How is my base budget determined each year? Each unit’s base budget is determined based on its share of dollars assumed for revenue, state appropriations, fixed costs, and new initiatives. How is my merit funded? Merit is covered by increases to budgets for a given year.