1. BUDGET UPDATE MICHAEL LAKE

2. State of the Economy State Revenues – Consumer spending is up; therefore, state revenues are up Revenue Estimating Conference – State revenues fell short of the budget: ◦ 9 out of 12 months in fiscal year 2008-09 ◦ Only 2 out of 9 months reported thus far for fiscal year 2009-10 Unemployment – Exceeds 8% locally, exceeds 10% state-wide 2Budget Update

3. State of the Economy Funding of State Universities ◦ Increases in state revenues translate to good news for the State University System (“SUS”) ◦ FSU receives approximately 15% of the funds allocated to the SUS Long-range Forecast – While 2010-11 looks fairly good compared to recent years, additional reductions are expected for 2011-12 and possibly 2012-13 3Budget Update

4. Key Issues for 2010 Session New Florida Initiative ◦ Created to demonstrate how the SUS can help Florida to build an economy based on knowledge and innovation ◦ Will provide $10 million in non-recurring funds to the SUS in fiscal year 2010-11 Science, Technology, Engineering & Mathematics (“STEM”) – Fields emphasized by the New Florida Initiative 4Budget Update

5. Key Issues for 2010 Session Bright Futures Program – Proposed bills: ◦ Required award recipients to work in Florida for a specific time period after graduation ◦ Died in committee State University System Governance ◦ House Bill 7237 ◦ Shifts a great deal of authority to the Board of Governors (“BOG”) 5Budget Update

6. Key Issues for 2010 Session Florida Transparency Act – Proposed bill: ◦ Required the State’s CFO to establish a chart of accounts to be used by all state agencies ◦ Died in House messages Gambling Compact with the Seminole Tribe – Expected to provide over $400 million to the State this year 6Budget Update

7. Proposed 2010-11 Appropriations Tuition & Fees – Increases will be finalized in May Public Education Capital Outlay (“PECO”) – $34 million for 2010-11 American Recovery & Reinvestment Act of 2009 (“ARRA”) Stimulus Funds – Including the College of Medicine, $23 million for 2010-11 7Budget Update

8. Proposed 2010-11 Appropriations Salaries, Insurance Benefits & Retirement ◦ No expected salary decreases, nor employee contributions to retirement plans ◦ There will be increases related to insurance premiums and copays (employees will be notified of the details very soon) Potential Budget Reductions – It appears at this point that budget reductions for 2010-11 will not impact departments 8Budget Update

9. 2010-11 Operating Budget Submission Memos and Other Communications ◦ Will be sent via email ◦ Memos are available at http://www.budget.fsu.edu/Budget-Director-s- Memoranda http://www.budget.fsu.edu/Budget-Director-s- Memoranda Training ◦ Required for those who will need to enter a 2010-11 budget request that did not complete last year’s training ◦ http://campus.fsu.edu/budgetoffice/ http://campus.fsu.edu/budgetoffice/ 9Budget Update

10. 2010-11 Operating Budget Submission Key Dates ◦ Available at http://www.budget.fsu.edu/2010- 11-Operating-Budget-Informationhttp://www.budget.fsu.edu/2010- 11-Operating-Budget-Information ◦ Also available on the Fiscal Year-End Calendar As always, if you have questions, please contact a member of the Budget Office staff (http://www.budget.fsu.edu/Budget- Office-Staff)http://www.budget.fsu.edu/Budget- Office-Staff 10Budget Update

11. Budget Office Contacts Michael Lake – Director ◦ mlake@admin.fsu.edu mlake@admin.fsu.edu ◦ 644-2478 Katie Martindale – Associate Director ◦ kmartindale@admin.fsu.edu kmartindale@admin.fsu.edu ◦ 645-7164 11Budget Update