Open Budget Meeting

April 23, 2015

2

Budget Calendar & Timeline

CSU’s Internal Budget Process

Governor’s Proposal January

General Assembly

Winter

Finalized & BOR Axn

Spring

BOR Allocation June/July

CSU/BOR Request to OPB Aug-

Sept

3

State Appropriations 2015Major Repair & Renovation (MRR)

Tuition & Fees

Auxiliary Enterprises

• Salaries and Wages• Utilities• Supplies and Equipment• Technology• Facilities and Maintenance• Public Safety• Campus Activities and Services

• Capital funds can not be used to pay for salaries and wages

• State procurement guidelines must be followed

• Student fees must be used in conjunction with specific services

• Prudent fiscal management required for all sources

• State Appropriation varies• Focus on Financial Ratios• Economic conditions have a

direct impact on our ability to collect the revenues necessary to satisfy the needs and obligations of the University

Uses Restrictions Realities

CSU Foundation• Endowments• Scholarships• Unrestricted Annual

Giving

Sponsored Programs

Clayton State University’s Resources

State Approp. 41.4%Other 58.6%

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Open Budget Meeting

STATE APPROPRIATION & TUITION TRENDS FY09-FY15

Fiscal Year State Appropriation TuitionFY10 $19,818,176 $19,615,429 FY11 $22,635,358 $22,945,975 FY12 $21,503,584 $25,539,502 FY13 $21,736,525 $27,046,979 FY14 $23,251,922 $28,162,460 FY15 $24,067,121 $27,130,000* FY16 $25,198,595 $26,928,500*

FY10 FY11 FY12 FY13 FY14 FY15 FY16$15,000,000

$17,000,000

$19,000,000

$21,000,000

$23,000,000

$25,000,000

$27,000,000

$29,000,000

State AppropriationTuition

**

* FY15 and FY16 Tuition is projected

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Open Budget Meeting

Mandatory Fee Chart FY 2012 FY 2013 FY 2014 FY 2015Laker Card 20 20 20 20

Technology 57 57 57 57Student Activity 60 60 60 60Athletic 160 160 160 160Health 46 46 46 46Parking 34 34 34 34Student Activity Center 75 75 100 100

Categories that pay less/none: Distance Learning, eCore, Employees/TAP, Fayette County, Joint Enrolled, Main Campus - less than 3 hrs, Senior Citizens, WBSIT

17,231 17,533 17,163 16,579 $3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$7,788,4

12 $7,924,9

16 $8,186,7

51 $7,908,1

83

$6,348,2

48

$6,348,2

48 $7,190,6

88 $6,831,5

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Full Payment Actual Collected

Man

datory F

ee

FY2012 FY2014FY2013 FY2015 (Estimated)

$1,440,164

$684,722 $996,063 $1,076,644

Total Students

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Open Budget Meeting

250 250 250 250 $-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

$4,307,750

$4,383,250

$4,357,250

$4,144,750

$4,040,162

$4,085,165

$3,837,848

$3,625,994

Full Payment Actual Collected

Special Institutional Fee FY2012 FY2014FY2013 FY2015 (Estimated)

SIF Rate

$298,085 $519,402 $518,756$267,588

Open Budget Meeting

Allocation of State Appropriations FY2016

State Appropriation $24,067,121

   

Formula Funding ‐ Enrollment and Other Allocations  

Health Insurance & Retiree Fringes $189,130

Maintenance & Operations (M&O) $209,514

Teachers' & Employees' Retirement System $212,416

Merit Based Pay & Employee Recruitment/Retention Initiative $166,503

Department of Administrative Services Premiums (DOAS) $43,911

   

New Funding for Institutional Priorities (see details below):  

Three (3) Academic Advisors to support Complete College Georgia effort $160,000

New Storage Area Network (SAN) $150,000

Total of Enrollment and Other Allocation $1,131,474

   

Total $25,198,595

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CSU’s Budget Build

RevenueFY16 Budget

State Appropriation 25,198,595 Tuition 26,928,500 *Fees & Other General 5,656,650 Carry Forward Funds 600,000

58,383,745

Expenditures Updated current budget 57,675,885

Funding Available to Distribute 707,860

Required Funding Items added: University Contingency 150,000 Increase in software licenses 17,079 Faculty Promotions including benefits 59,030 Salary Stressors including benefits 53,872 Replacement Storage Area Network (SAN) 58,000 Funding for Merit Raises including benefits 388,480

726,461

Unresolved Issues Enterprise Back-Up System 216,000 Litigation 20,000

* Tuition will need to be reviewed for enrollment numbers

Includes current Salary, Benefits, Travel, & OS&EIncrease TRS $171,099Increase Health Insurance $ 58,837Additional funding for AVP Marketing & Communications $ 2,700M&O Funded Positions:Lab Technician $ 53,200(2) Custodial Positions $ 54,000Priority Items Funded by BOR:(3) Academic Advisors $160,000New Storage Area Network (SAN) $150,000

Summer Short Fall

• CSU Annual Budget is divided into three parts: Fall/Spring/Summer

• Summer 2014/2015 • Budget: $3,740,000• Revenue: $1,381,267* • Shortfall: $2,357,733

• Summer 2015 Revenue is split about 40% for FY15 and 60% FY2016

* As of April 17, 2015

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Open Budget Meeting

Merit Salary Increase• Salary and Administrative Policy

The Board of Regents allocated to each institution funds to provide for salary increases for employees. Salary increases shall be awarded solely on merit, with a range determined by the institutional president. Institutions are permitted to augment state funds using other appropriate fund sources to create a salary pool. It is expected that individual merit salary increases will be reasonably distributed among employees based on the range determined by the institutional president. Across-the-board

increases are not permitted. Salary increases may exceed ten percent for employees exhibiting exceptionally meritorious performance; however, institutions must request prior approval from the Chancellor in writing of any merit increases exceeding ten percent.

Additionally, the policy allows flexibility for institutions to make appropriate promotions or position reclassifications, special changes to recruit or retain employees, adjustments for targeted populations or adjustments to address market and compression issues. Such salary adjustments must be supported by appropriate documentation (e.g., market analysis or internal salarystudies).

Employees covered from other fund sources such as sponsored funds and auxiliary funds will besubject to the same policy requirements noted above and must be paid from the correspondingfund source rather than state funds.*

• CSU amount—$166,503 from USG $159,478 from CSU

Total 1% $325,981 (only funds for State funded positions) *Total 1% $42,197 (for Auxiliary and other non-State funded positions)

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Open Budget Meeting

Capital Budget FY 2015

Major Repairs & Renovations(MRR) allocation of $~525,000 can be used for some of these projects

o Upgrade HVAC System in Arts & Sciences, Phase I I

Funding authorized for FY 2014 for the New Science Building ($19.8M)

Funding for FF&E for the New Science Building ($2.9M)

Successful Request for FY16

Academic Core Renovation of $1.4M

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Open Budget Meeting

FY15 One Time Expenditures

Majority of funding available for one time expenditures will be utilized for Library

renovations

• Total of 64 Requests.

– 17 One-Time Funding: $2,436,290.

– 47 Permanent Funding: $2,753,826.

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CSU Internal FY16 Budget Meetings

• Legislators have some unanswered issues.

– During summer they will study and review.

• Some institutions also expressed concerns about funding levels.

• Anticipate start in FY17.

14

Performance Funding

Mandatory Fees

Proposed Revision to the Mandatory Fee Sections

7.3.2.1 Mandatory Student Fees; 7.3.2.2 Elective Fees and Special Charges; 7.3.4.2 Waiver of Mandatory Fees

A. Fees assessed to “all undergraduate” and “all full-time undergraduate” students will be considered mandatory.

B. Requires institutions to seek student input and Board approval for any fee that is assessed to all students within one or more grade levels (e.g., all freshman or all lowerclassmen).

C. Mandatory food service fees not associated with housing are explicitly listed as an example of a mandatory fee along with athletic fees, technology fees, etc. in an effort to clarify issues related to mandatory fees and dining plans.

15

PeopleSoft Upgrade

• Our current PeopleSoft Version 8.9 was upgraded to 9.2 – Reduce Modifications– Reduce Complexity– Increase Standardization– Improve Expense module functionality  – Increase automation of current manual processes

• User Acceptance Test (UAT) occurred in February 2015• Campus Training scheduled for April 29, 2015

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Discussion and Questions

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