1 Budget Overview Budget Information Committee February 26, 2007

2 Questions submitted in advance What is the purpose of a University budget?

3 Budget Overview Purpose of a Budget Governing document Management tool and spending plan Communication of the University's priorities A baseline for financial performance

4 Questions submitted in advance What is the purpose of a University budget? What processes are in place to ensure budget transparency and communication of budgetary information to the university community?

5 Budget Overview Budget Transparency Public document posted on YSU website. Budget document is 20+ pages of detail. Financial managers of all university depts. receive budget detail report. Discussed and approved by Board of Trustees at public meetings. Budget to actual comparison presented quarterly at public Board meetings. Audited financial statements posted on web. Budget Information Committee.

6 Budget Overview YSU’s General Fund Budget FY 2007 = $135 million 13,183 students (fall 2006) 1,050 employees 1,800 student employees 139 acres with 41 major buildings 2.7 million square feet of building space

7 Budget Overview General Fund Revenues by Source, FY 2007

8 Budget Overview Tuition vs. State Funding, FY02 – FY06

9 Budget Overview YSU Tuition vs. State Funding for YSU, FY02 – FY06

10 Budget Overview State funding trends

11 Budget Overview General Fund Expenditures by Division, FY07

12 Questions submitted in advance What is the purpose of a University budget? What processes are in place to ensure budget transparency and communication of budgetary information to the university community? Why have the budget increases for Academic Affairs’ been lower than other divisions in recent years?

13 Budget Overview

14 Budget Overview Budget Change since FY 2001

15 Budget Overview YSU’s FTE Enrollments

16 Budget Overview YSU Faculty (FTE)

17 Budget Overview YSU Student to Faculty Ratio (FTE)

18 Questions submitted in advance What is the purpose of a University budget? What processes are in place to ensure budget transparency and communication of budgetary information to the university community? Why have Academic Affairs’ budget increases been lower than other divisions in recent years? Why did “institution-wide” increase by 44.2%?

19 Budget Overview Office of the President

20 Office of the President Total FY 2007 budget: $4,427,870

21 Questions submitted in advance What is the purpose of a University budget? What processes are in place to ensure budget transparency and communication of budgetary information to the university community? Why have Academic Affairs’ budget increases been lower than other divisions in recent years? Why did “institution-wide” increase by 44.2%? Why did “other administration” increase by 39%?

22 Budget Overview Administration

23 Questions submitted in advance What is the purpose of a University budget? What processes are in place to ensure budget transparency and communication of budgetary information to the university community? Why have Academic Affairs’ budget increases been lower than other divisions in recent years? Why did “institution-wide” increase by 44.2%? Why did “other administration” increase by 39%? Why did non-divisional transfers increase? Provide specific accounting of transfers, including transfers to the Foundation.

24 Budget Overview Non-Divisional Transfers

25 Budget Overview University policy on Transfers All inter-fund transfers ≥$100,000 must be approved by the Board of Trustees. All inter-fund transfers of <$100,000 must be reported to the Board of Trustees. All transfers within the operating budget ≥$250,000 must be reported to the Board of Trustees. Transfers between General Fund and YSU Foundation are rare.

26 Questions submitted in advance What is the purpose of a University budget? What processes are in place to ensure budget transparency and communication of budgetary information to the university community? Why have Academic Affairs’ budget increases been lower than other divisions in recent years? Why did “institution-wide” increase by 44.2%? Why did “other administration” increase by 39%? Why did non-divisional transfers increase? Please provide specific accounting. Where is the money from healthcare co-pays going?

27 Budget Overview Fringe Benefit Costs: $23.6 million in FY06

28 Budget Overview Budget Growth since FY 2000 – FY 2007

29 Questions submitted in advance What processes are in place to ensure budget transparency and communication of budgetary information to the university community? Why have Academic Affairs’ budget increases been lower than other divisions in recent years? Why did “institution-wide” increase by 44.2%? Why did “other administration” increase by 39%? Why did non-divisional transfers increase? Please provide specific accounting. Where is the money from healthcare co-pays going? An accounting of all reserve funds?

30 Budget Overview Reserve Funds Funds set aside for a “rainy day” Reserves ≠ base dollars. Reserves = one-time dollars.

31 Budget Overview Institutional Reserves 5% Operating Contingency: $6,760,000 Plant funds: Housing Services: $1,153,000 Kilcawley Center: $1,342,000 Parking Services: $893,000

32 Budget Overview State’s measure of fiscal health places an emphasis on maintaining reserves. The state’s scoring system places the greatest weight on reserves. Net Income: 20% of total score. Viability: 30% of total score. Primary Reserve: 50% of total score. If financial distress is detected, a campus can be placed under state fiscal watch.

33 Budget Overview Capital Budget FY 2007: $44.4 million Not part of operating budget Funding sources: State capital appropriations Philanthropy Debt proceeds

34 Budget Overview Debt per FTE - Ohio public universities, FY05

35 Budget Overview Budget Process December – June Develop revenue estimates Develop enrollment projections Develop tuition & fee scenarios Obtain up-to-date state funding estimates from Ohio Board of Regents

36 Budget Overview Budget Process December – June Model expenditures Personnel costs are priority Other fixed costs Other base costs

37 Budget Overview Budget Process March Present draft budget to Board of Trustees June Submit final budget to Board for approval December If necessary, submit a modified budget to the Board for approval

38 Budget Overview Other questions for future discussion Summer School Committee report Banner budget Student wages Other topics?