2008 Budget Forum 2008 BUDGET FORUM Larry A. Nielsen Provost Executive Vice Chancellor Charles D....

2008 Budget Forum

2008 BUDGET FORUM

Larry A. Nielsen ProvostExecutive Vice Chancellor

Charles D. LefflerVice ChancellorFinance & Business

Terri LomaxInterim Vice ChancellorResearch & Graduate Studies

2008 Budget Forum

BUDGET 101

2008 Budget Forum

How big is the pie?

2008 Budget Forum

State of North Carolina2008-09 General Fund Revenues

$21.3 Billion

Individual Income Tax

55%

Sales & Use Tax26%

Corporate Income Tax -

5%

Non-Tax Revenues

5%Other Taxes

9%

2008 Budget Forum

State of North Carolina2008-09 General Fund Budgets

$21.3 Billion

Reserves & Debt Service

7%

Justice & Public Safety10%

Health & Human Services

25%General Government

2%

UNC System13%

Community Colleges4%

Public Education37%Natural & Economic

Resources2%

2008 Budget Forum

NC State University2008-09 Estimated Budget

By Revenue Source$1,140,000,000

Federal Appropriations

2%

Auxiliaries & Other14%

Contracts & Grants

23%

State Appropriations

46%

Tuition & Fees15%

2008 Budget Forum


By Major Area of Expenditure$1,140,000,000

Depreciation5%

Auxiliary Enterprises

11%

Student Financial Aid3%

Plant Maintenance & Operations

7%

Public Service11%

Academic Support6%

Student Services2%

Instruction30%

Institutional Support6%

Organized Research

19%

2008 Budget Forum

How is the pie sliced?

2008 Budget Forum

NC State University 2008-09 Estimated Expenditures By Use

$1,140,000,000

Salaries & Benefits62%

Depreciation5%

Utilities3%

Scholarships & Fellowships

3%

Services16%

Supplies & Materials

11%

2008 Budget Forum

What ingredients go into the pie?

2008 Budget Forum




2%


Contracts & Grants

23%


46%

Tuition & Fees15%

2008 Budget Forum

Contracts & Grants

23%

Federal Contracts & Grants $114,000,000 44.3%

State/Local Contracts & Grants $38,000,000 14.8%

Non-Governmental Contracts & Grants $50,000,000 19.5%

Non-Capital Gifts & Grants $55,000,000 21.4%

TOTAL Contracts & Grants $257,000,000 100%

Sources of Grants & Contracts

2008 Budget Forum

2007-08

Federal Grants & Contracts$114 Million

• National Science Foundation 23%• Department of Agriculture 20%• Department of Health & Human Services (NIH) 14%• Department of Education 14%• Department of Defense 10%• Department of Commerce 5%• Department of Energy 6%• National Aeronautics & Space Agency 2%• Environmental Protection Agency 2%• Department of the Interior 1%• Department of Homeland Security 1%• Other 2%

2008 Budget Forum




2%


Contracts & Grants

23%


46%

Tuition & Fees15%

2008 Budget Forum

Sources of Tuition & Fees$170 Million

Resident Tuition $107,000,000 62.9%

Non-Resident Tuition $43,000,000 25.3%

Extension Instruction $7,600,000 4.5%

Application Fees $2,200,000 1.3%

Educational & Technology Fees $10,200,000 6.0%

TOTAL $170,000,000 100%

2008 Budget Forum




2%


Contracts & Grants23%

State Appropriations46%

Tuition & Fees15%

2008 Budget Forum

How does the pie get bigger?

2008 Budget Forum

Tuition

• NC State is a “best value”• Tuition and fees are second-lowest among peers• Campus Initiated Tuition increases (CITI)• Board of Governors requirements

– 6.5% cap– Lower quarter of peers

2008 Budget Forum

Legislative Increases• Continuation

- Inflationary- Legislative- Enrollment

• Expansion- New programs

• Capital - Bricks and mortar- Repair and renovation

2008 Budget Forum

Grants & Contracts

2008 Budget Forum

BUDGET 102

2008 Budget Forum

Strategic Budgeting

• UNC Tomorrow• Enrollment Growth and CITI• Compact Planning• Facilities & Administrative• Budget reductions

2008 Budget Forum

Recent Trends

MEASURE 2004-05 2005-06 2006-07 2007-08

Total Enrollment 29,957 30,149 31,130 31,802

% Graduate Student Enrollment 20.9% 21.3% 20.8% 21.5%

Full-Time Permanent Faculty 1,638 1,671 1,652 1,723

Student-to-Faculty Ratio 15.7 16.0 16.3 16.2

Average Faculty Salary $74,390 $76,040 $80,650 $84,570

Research Expenditures $ (000s) per Faculty FTE $147.1 $146.1 $146.2 $151.2

Instructional Expenditures per Student FTE $9,258 $9,712 $10,149 N/A

2008 Budget Forum

Enrollment Change Allocation 2008-09

Academic Affairs

Distance Education CVM TOTAL %

Academic Affairs $14,037,734 $1,408,100 $703,701 $16,149,535 65.58%

Library $1,517,370 $138,885 $7,975 $1,664,230 6.76%

Information Technology $1,111,167 $101,705 $7,459 $1,220,331 4.96%

Other Institutional Support $5,204,489 $353,137 $34,939 $5,592,565 22.70%

Total $21,870,760 $2,001,827 $754,074 $24,626,661 100.00%

2008 Budget Forum

Campus Initiated Tuition Increase 2008-09Campus-Initiated Tuition Rate Increases

Undergraduate Resident CITI $100

Undergraduate Nonresident CITI $200

Graduate Resident CITI $0

Graduate Nonresident CITI $0

FTE Used to Project Revenue

Undergraduate Residents 19,930 76%

Undergraduate Nonresidents 1,409 5%

Graduate Residents 3,170 12%

Graduate Nonresidents 1,709 7%

Total FTE 26,218 100%

Projected Revenue

Undergraduate Residents $1,993,000 88%

Undergraduate Nonresidents $281,800 12%

Graduate Residents $0 0%

Graduate Nonresidents $0 0%

Total Revenue $2,274,800 100%

2008 Budget Forum

2008-09 CITI Allocation

Financial Aid $957,000 42.1%

Pack Promise $400,000 17.6%

Sub-total $1,357,000 59.7%

GSSP $0 0.0%

Faculty Salaries

Promotional Bonuses $410,409 18.0%

Salary Increases $158,291 7.0%

Sub-total $568,700 25.0%

Academic Support $349,100 15.3%

Total $2,274,800 100.0%

2008 Budget Forum

Compact Plan Implementation

COLLEGE 2008-09 Academic Budget

% of Total Academic

Budget2008-09

Allocation% of Total Allocation

Agriculture and Life Sciences $23,095,422 9. 7% $1,043,175 10.2%

Design $7,274,680 3.1% $782,683 7.7%

Education $15,491,579 6.5% $901,722 8.9%

**Engineering $66,672,737 28.1% $896,538 8.8%

Natural Resources $7,717,009 3.3% $389,964 3.8%

Humanities & Social Sciences $32,353,610 13.6% $2,395,131 23.5%

Physical & Mathematical Sciences $34,466,269 14.5% $1,504,123 14.8%

Textiles $7,970,274 3.4% $461,237 4.5%

Veterinary Medicine $26,422,749 11.1% $239,353 2.4%

Management $15,654,962 6.6% $1,564,397 15.4%

Subtotal Colleges $237,119,291 100.0% $10,178,323 100.0%

Vice Provosts $44,984,759 $3,495,138

Libraries $23,879,553 $1,664,230

Subtotal Provost’s Units & Libraries $68,864,312 $5,159,368

TOTAL $305,983,603 $15,337,691

**Engineering received $5M in 2007-08 and $2M in 2008-09 through the expansion budget

2008 Budget Forum

Facilities & Administrative (F&A) Receipts

• Generated from Sponsored Grants & Contracts• F&A cost rate structure is Federally established• F&A is cost recovery, not a fee nor a profit• Cost of providing common services

- research administration- utilities & facilities maintenance- payroll & accounting services- public safety- library, IT, etc.

2008 Budget Forum

F&A ReceiptsIn millions of dollars

0

5

10

15

20

25

30

35

1999-00 2001-02 2003-04 2005-06 2006-07 2007-08

2008 Budget Forum

F&A Allocations2007-2008 Total F&A = $29,539,786

2008-2009 F&A Budgeted = $29,500,000

Area For every $ reimbursed,

amount negotiated

15% special allocation

&GSSP

For every $ reimbursed, amount

allocated

85%

Colleges (including special allocations)

36.9% 100% 46.0%

Research Administration 4.4% 3.5%

Building Use (Centennial Campus Infrastructure and Capital Debt Service)

9.2% 11.2%

Library 2.7% 2.3%

Office of Information Technology 7.0% 5.5%

Institutional Administration 39.8% 31.5%

Total 100% 100%

2008 Budget Forum

2008-09 Budget Reduction Summary

State Appropriated Funds

Budget Code Continuing Base Budget Budget Reductions

Academic Affairs $515,095,651 $17,677,839

Agricultural Research Service $71,095,095 $2,601,236

Cooperative Extension Service $60,207,442 $2,082,471

University Total $646,398,188 $22,361,546

2008 Budget Forum

2008-09 Budget Reductions

Academic Affairs Budget Code

Cut Strategy Amount

PACE Reduction – Recurring Central $1,065,424

Flexibility Reduction – RecurringBudget Principles (50%) $1,145,148

Across the Board (50%) $1,145,148

Allotment Reversion – Non-Recurring

Central (25%) $3,580,530

Budget Principles (25%) $3,580,530

Across the Board (50%) $7,161,059

University Total $634,877,250 $17,677,839

2008 Budget Forum

2008-09 Budget Reductions

Academic Affairs Budget Code

Budget Unit Continuing Budget % of TotalTotal

Reductions % of Total

Colleges $237,119,291 46.0% $5,502,626 31.1%

Library $23,879,553 4.7% $899,331 5.1%

Provost Units $44,984,759 8.7% $3,008,944 17.0%

SUBTOTAL Provost & Colleges $305,983,603 59.4% $9,410,901 53.2%

Utilities $30,558,575 5.9% $539,696 3.1%

Other Institutional Support $105,815,725 20.5% $4,542,222 25.7%

Personnel Benefits Budget $69,737,748 13.6% $1,394,755 7.9%

Tuition Reserve $3,000,000 0.6% $1,790,265 10.1%

ACADEMIC AFFAIRS TOTAL $515,095,651 100.0% $17,677,839 100.0%

2008 Budget Forum

1. Expect recurring cuts2. University Budget Advisory Committee (UBAC)3. What to stop doing?4. What to keep or start doing? (UNC Tomorrow)5. New Compact Plan (09-12) (planning guidelines to come)6. Your ideas?

For 2009-11

2008 Budget Forum

Questions?www.provost.ncsu.edu

www.ncsu.edu/finance-business

2008 Budget Forum 2008 BUDGET FORUM Larry A. Nielsen Provost Executive Vice Chancellor Charles D....

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