1. NORTH CAROLINA STATE UNIVERSITY Budget and Budget Process

2. NC Statutory Authority State Budget Act: GS 143C-1-1 thru 143C-10-3 http://www.ncga.state.nc.us/statutes/generalstatutes/html/bychapter/chapter_143.html http://www.ncga.state.nc.us/statutes/generalstatutes/html/bychapter/chapter_143.html Higher Education: GS 116-1 thru 116-260 http://www.ncga.state.nc.us/statutes/generalstatutes/html/bychapter/chapter_116.html http://www.ncga.state.nc.us/statutes/generalstatutes/html/bychapter/chapter_116.html Community Colleges: GS 115D-1 thru 115D-97 http://www.ncga.state.nc.us/statutes/generalstatutes/html/bychapter/chapter_115D.html http://www.ncga.state.nc.us/statutes/generalstatutes/html/bychapter/chapter_115D.html

6. UNC System Appropriations/Tuition per FTE

12. BIENNIAL BUDGET REQUEST PROCESS Continuation Budget Expansion or Change Budget Capital Improvement Budget - Buildings & major renovations

13. BIENNIAL BUDGET REQUEST PROCESS Continuation (Annual) Budget –General inflation and cost increases –Salary & benefits increases for classified staff –Annualize prior year’s adjustments –Tuition & fee adjustment –Enrollment Change Request (formulaic) –Reserves for new facilities –Replace vehicles & motorized equipment

14. BIENNIAL BUDGET REQUEST PROCESS Expansion Budget Request: Academic Affairs Faculty Salary Increases STEM Initiative - Science, Technology, Engineering, & Mathematics Center for Bioenergy Technologies Entrepreneurship & Regional Economic Development Center for American Home & Universal Design Create Research Centers in key areas of NC State expertise Parking Fines and Forfeitures to public schools Graduate Student Enhancement Initiative

16. Tuition & Fees NC Constitution, Section 9 “Benefits of public institutions of higher education - The General Assembly shall provide that the benefits of The University of North Carolina and other public institutions of higher education, as far as practicable, be extended to the people of the State free of expense” General Tuition Increases – offset state general funds Campus Initiated Tuition Increases – retained by University Fees are charged for dedicated purposes – e.g. student health center, recreation & athletic programs, student activities, athletic & student support facility debt, etc.

17. 6.5% cap on increase of tuition & fees Cap is for 4 years starting in 2007-08 Tuition to remain in lower quarter of peers CAMPUS INITIATED TUITION INCREASE (CITI) Board of Governors guidelines

18. – Hold need-based students “harmless”-60% – Faculty salary increase-25% – Faculty salaries-increase course offerings-15% 2008-09 CITI INCREASE $100 Undergraduate Resident $200 Undergraduate Non-resident $2.3 million

19. Student Activity Fees - $364.50 Debt Service Fees - $177.00 Intercollegiate Athletics - $126.50 Student Health Services Operations - $221.00 Transit Operations - $114.00 Educational & Technology Fee (ETF) - $354.00 Mandatory Student Fees $1,357 per academic year

20. Tuition per academic year: DVM - $9,212 Resident; $31,975 Non-Resident CITI Professional Programs: Management & Design Fees per academic year: – Graduate Students - $11.00 – Engineering Computer Fee for majors - $90 – PGA Management majors - $400 Additional Student Payments

21. Replaced Lab & Course Fees Supports Student IT Services & Laboratories Allocation of Receipts by Provost ETF Committee recommends allocation to Provost 2008-09 Budget is $9.8 million Educational & Technology Fee Approved by BOG May, 1993

22. BIENNIAL BUDGET REQUEST PROCESS Capital Improvement Projects 2007-09 Request Repairs & Renovations – requested $124 million Major Projects – $1.4 billion in 6 year plan Self-Liquidating - $105 million in 6 year plan

23. Internal Budget Management Initial Allocation –Academic Programs –Other Institutional Support Compact Plans drive internal use Deans & Vice Chancellors responsible, often delegated to department head or director Reserves –University level for tuition shortfalls –Utility overruns, large Tort & Workers Compensation claims, emergency repairs, etc.

24. University Budget Advisory Committee Appointed by the Chancellor Committee is Advisory to the Chancellor Purpose is twofold: To develop a comprehensive understanding of: the resource issues facing the University the context in which budgetary decisions are made Identify core values & principles Composition of Committee reflects all areas of the academic enterprise: academic affairs, research, extension and engagement, and student affairs.

25. University Budget Advisory Committee Membership  Provost and Executive Vice Chancellor, Chair  1 Faculty Senator appointed by the Faculty Senate  2 Faculty appointed by the Provost  Chair & Past Chair of Chair-Elect of the Faculty  Chair & Chair Elect of the Staff Senate  Senior Dean  Chair of the Department Heads Council  Vice Chancellors for: o Finance and Business o Extension, Engagement, & Economic Development o Research & Graduate Studies

26. University Budget Advisory Committee Core Principles  Transparent Budget  Budget should be tied to vision and mission  Reductions should reflect mission, merit & performance  Budget Decisions should be based on vision & goals  All Faculty, Students, & Staff should be able to offer input  Committee should be source for receiving budget info, fostering campus understanding of budget, and offering advice to Chancellor and executive officers Committee also adopted principles for budget reductions, expansion, and efficiency

27. Budget Reality Inflationary increases generally not funded Utility costs funded recently but not always Budget reductions & one-time reversions have occurred in 9 of last 10 years 2007-08 it was $2.9 million continuing reduction (PACE) $117 million cut in last 10 years - $50 million was recurring Increases often limited to enrollment growth then funded with tuition increases & budget cuts Received $5 million in 2007-08 for Engineering May receive un-requested funds

28. Budget Outlook State Sales tax budgeted for 3-5% growth –Running at 1-3% growth Corporate tax budget for 1-5% growth –Running flat Payroll taxes are on target –But today (April 15) is critical date Unknowns are recession & drought