NORTH CAROLINA STATE UNIVERSITY

Budget and Budget Process

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

• Higher Education: GS 116-1 thru 116-260 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

State of North Carolina2007-08 General Fund Revenues

$20.4 Billion

Sales & Use Tax28%

Individual Income Tax - 50%

Corporate Income Tax - 5%

Non-Tax Revenues8%

Other Taxes9%

State of North Carolina2007-08 Operating Budgets

$20.4 Billion

Reserves & Debt Service

7%

Justice & Public Safety10%

Health & Human Services

23%

General Government

2%

UNC System13%

Community Colleges5%

Public Education37%Natural & Economic

Resources3%

UNC System by University2006-07 State Appropriated Budgetand Budgeted Enrollment(in millions of dollars)

FTE Total Estimated StateEnrollment Requirements Receipts Appropriation

Appalachian State University 13,645 $166 $52 $114East Carolina University 21,824 345 101 244Elizabeth City State University 2,556 40 9 31Fayetteville State University 5,113 66 17 49N. C. A & T State University 10,741 143 55 88N.C. Central University 7,214 105 31 74NC State University 25,532 642 214 428University of N.C. @ Asheville 3,280 46 13 33University of N.C. @ Chapel Hill 25,653 726 235 491University of N.C. @ Charlotte 18,390 240 84 156University of N.C. @ Greensboro 14,650 198 59 139University of N.C. @ Pembroke 5,102 66 16 50University of N.C. @ Wilmington 10,887 138 47 91Western Carolina University 7,707 107 27 80Winston-Salem State University 6,064 83 18 65N. C. School of the Arts 1,080 34 10 24

Universities Total 179,438 $3,145 $988 $2,157UNC Gen Admin Operating 0 67 11 56UNC-GA Institutuional Programs 0 22 0 22

University System Total 179,438 $3,234 $999 $2,235

UNC SystemAppropriations/Tuition per FTE

AppropriationsUniversity per CapitaUNC-Chapel Hill $20,702North Carolina State University 17,670Elizabeth City State University 12,627Winston-Salem State University 12,493North Carolina Central University 11,578East Carolina University 11,543UNC Greensboro 11,426UNC Pembroke 10,326Western Carolina University 10,315UNC Asheville 10,186Fayetteville State University 10,004Appalachian State University 9,138UNC Charlotte 9,133UNC Wilmington 9,117North Carolina A & T State University 9,070Average (Mean) 11,622

NC State University2007-08 Estimated Budget

By Revenue Source$1.087 (in millions of dollars)

Non-Capital Gifts & Grants4.5%

Sales & Services14.4%

Other Sources2.4% Federal Appropriations

2.0%

State/Local Contracts & Grants3.0%

Federal Contracts & Grants11.0%

State Appropriations43.6%

Tuition & Fees14.5%

Non-Governmental Contracts & Grants

4.4%

NC State University2007-08 Estimated Budget

By Major Area of Expenditure$1.087 (in millions of dollars)

Depreciation4.9%Auxiliary Enterprises

10.8%

Student Financial Aid2.8%

Plant Maintenance & Operations

7.5%

Public Service12.1%

Academic Support6.7%

Student Services1.7%

Instruction28.6%

Institutional Support5.2%

Organized Research19.9%

NC State University2007-08 Budget

By Object($1,087 Million)

Scholarships and Fellowships

2%

Depreciation5%Utilities

3%

Services16%

Supplies and Materials

11%

Salaries and Benefits

63%

Expenditures 2002-03* 2007-08** % ChangeInstruction $228 $311 36.0%Organized Research 169 216 28.0%Public Service 95 131 38.0%Academic Support 60 73 22.0%Student Services 14 19 36.0%Institutional Support 50 56 12.0%Plant Maintenance & Operations 49 81 65.0%Student Financial Aid 17 30 76.0%Auxiliary Enterprises 89 117 31.0%Depreciation 34 53 56.0%Total Expenses $805 $1,087 35.0%

Sources:

* - NC State University Financial Report

** - Projected Budget

5 Year ComparisonBudget by Expenditure(in millions of dollars)

Revenues 2002-03* 2007-08** % ChangeTuition & Fees $106 $158 49.0%Federal Appropriations 20 22 12.0%State Appropriations 338 474 40.0%Federal Contracts & Grants 93 120 29.0%State/Local Contracts & Grants 30 33 12.0%Non-Governmental Contracts & Grants 43 48 11.0%Non-Capital Gifts & Grants 37 49 34.0%Sales & Services 121 157 30.0%Other Sources 12 26 126.0%Total Revenues $798 $1,087 36.0%

Sources: * - NC State University Financial Report** - Projected Budget

5 Year ComparisonBudget by Revenue Source

(in millions of dollars)

BIENNIAL BUDGET REQUEST PROCESS

• Continuation Budget

• Expansion or Change Budget

• Capital Improvement Budget - Buildings & major renovations

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

BIENNIAL BUDGET REQUEST PROCESSExpansion 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

NC State University Enrollment Change Funding ModelRegular Term: 2008-09 Request for Enrollment Change

ProgramCategory Undergrad Masters Doctoral Undergrad Masters Doctoral Undergrad Masters DoctoralCateg. I 6,091 143 106 709 170 116 8.595 0.844 0.917Categ. II 3,342 (572) 40 536 304 110 6.238 (1.882) 0.363Categ. III 5,805 757 238 406 186 110 14.290 4.065 2.166Categ. IV 1,928 239 381 232 90 81 8.301 2.651 4.709

17,166 567 765 37.424 5.677 8.15692.8% 3.1% 4.1% Campus UGr Cost Factor 0 0

18,498 Total Positions Required 51.257

Calculation of Appropriation Request Instructional Salary Rate of Campus $81,721

Requirements Generated by SCH Model $10,046,796 Instructional Salary Amount $4,188,773

Tuition Revenue: Other Academic Costs 0.448947 1,880,537 In-State U/G FTEs 500 3,530 $1,765,000 Out-of-State U/G FTEs (60) 15,728 ($943,680) Total Academic Requirements $6,069,310 *Res per GS116-143.6 U/G FTEs 80 3,530 $282,400 In-State Grad FTEs 65 4,038 $262,470 Out-of-State Grad FTEs 19 16,086 $305,634 Library Rate 11.485%

604 Library Amount $697,036Total Expected Revenue $1,671,824

Request Amount $8,374,972 Gen'l Instit. Support Rate 54.05% Neg.Adj't Factor: 50.00%Gen'l Instit. Support Amount $3,280,450

* - Represents "tuition remissions" for non-resident students who are receiving full-time scholarships Total Requirements at NCSU $10,046,796

Student Credit Hours SCH per Instructional Position Instructional Positions Required

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.

•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

– 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

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

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

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 FeeApproved by BOG May, 1993

BIENNIAL BUDGET REQUEST PROCESSCapital 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

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.

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.

University Budget Advisory CommitteeMembership

 

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   

University Budget Advisory CommitteeCore 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 offeringadvice to Chancellor and executive officers

Committee also adopted principles for budget reductions, expansion, and efficiency

 

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

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