Budget Entries from FY 2001

FY 2002 Proposed Budget

Thursday, February 1, 2001

Introduction

This is the fifth year for campus-wide participation in the budget process, although last year there was no money to allocate due to the shortfall in salary appropriations. Each year has resulted in increased advanced planning and participation in the generation of requests and proposals from across the campus for the Cabinet to consider at the beginning of its deliberations.

The allocations which have been made represent budget additions from projected new revenue. Final decisions by the General Assembly and Governor, as well as changes in enrollment, could necessitate changes in the actual allocations. At this time, the shortfall in state revenue from projections is worrisome.

Not included in the allocations are additions for salary increases, since the collective bargaining agreements are still in the negotiations process. We anticipate the settlement to be fully funded in the Governor’s salary bill. We also expect the funding required for salary annualization of Regents merit employees step increases required in the AFSCME contract to be included in the salary bill. We do not, however, expect that our salary allocation will include funding for increases in health insurance benefits, which will then need to be covered by reallocation. Again, changes in the state revenue from projections could have an adverse impact on funding.

Each division will be expected to target reallocations of at least 2 percent toward achievement of our strategic planning goals. These are to be reported to the Cabinet on March 31.

Projected Income

Principal sources of income are state appropriations and tuition. The Governor’s budget recommendation for UNI, exclusive of salary increases, however, provided NO additional dollars for our operating budget. This compares to a request by the Regents for UNI of $3,000,000. Tuition is our only source of new income, and is projected to provide an additional $3,622,317. Of this, 19 percent ($688,240) is designated for student aid set-aside by current practice.

Proposed Expenditures

The Cabinet proposes to distribute the tuition income as follows (There is no new money proposed by the Governor, other than what will come in the salary bill):

I. Unavoidable Cost Increases

Amount

Purpose

Comments

$ 23,000

Insurance

Premium increase

$ 5,000

Institutional memberships

Dues increase

$ 4,700

Audit costs

Increase in billing from the State Auditor’s Office

$ 2,000

Board of Regents support

Increase in chargebacks to the University from the Board office

$ 700

Lakeside Lab

Increase in UNI’s share of support for the lab

$ 0

Utilities

No permanent adjustment is being recommended at this time; contingency funds have been designated for the short term.

II. Fulfilling Prior Commitments

$688,240

Student aid Set-a-side

UNI historically has designated 19% of tuition income to student aid.

$400,000

Performing Arts Center

This fulfills a $200,000 commitment made for FY 01, which will allow for reallocation to the library and other academic priorities, and a $200,000 commitment for FY 02. This completes the general fund support for operating costs.

$300,000

MEMFIS

This is a multi-year project--Modern Executive Management Financial Information System to replace the core systems of human resources, payroll, general ledger, purchasing, accounts payable, grants and contracts projects, and budgeting.

$140,000

Opening new buildings

This supports the custodial and associated facility costs for the Performing Arts Center that were not funded by the General Assembly last year.

 

III. Inflationary Increases

$220,000

Supplies and Services

This constitutes a 2% increase in supplies and services budgets; no increase was given last year.

$ 75,000

Student wage increase

This constitutes a 3% increase in student wage budgets at the departmental level.

 

IV. Strategic Initiatives

Goal/
Objective

Amount

Purpose

Comment

1.1, 1.3, 1.4

$1,000,000

Add tenure track faculty positions

This support, coupled with existing adjunct funds, will enable approximately 22 additional tenure track faculty to be hired.

3.1, 8.2

$ 252,577

Integrated marketing

Chargebacks for design and video services to departments will be eliminated except for grant-funded projects and auxiliary enterprises and three new positions added to implement the University’s integrated marketing plan, which will aid in student recruitment and increased revenue generation for the institution.

3.1, 7.0

$ 160,000

Information Management and Analysis

Staff positions will be added to improve the quality of data collection and analysis and the availability of information for use in decision making.

4.0, 5.0

$ 115,000

Integrated Student Services Center

Half salary for a student portal developer for online student services, a document imaging system and other needed equipment for the Center.

7.0

$ 96,000

Controller’s Office

Two positions will be added: an accountant to help address a backlog in grant and contract activities from the Graduate College and an accounts payable/travel manager for the new functions in Oracle.

4.0

$ 90,000

Diversity initiatives

Funding will support admission and retention efforts to meet the strategic plan goals of the Board of Regents and University.

5.1, 7.0

$ 50,000

Building repairs

This is a small increase to an already inadequate building repair budget.

Allocations have been made first to those areas in which there are unavoidable cost increases, second to some of those areas for which prior commitments had been made, third to inflation, and then to initiatives in support of the strategic plan (hotlink to it on web). All amounts are incremental additions to base budgets. You will recall that last year all tuition income had to be dedicated to meeting the shortfall in salary funding from the state. This forced reallocations to cover previous commitments. Funding this year restores those commitments.

The items funded represent priorities of the strategic plan, the performance indicators presented to the Board of Regents, and the highest priorities of divisions of the university, as well as some areas of unavoidable or nondiscretionary cost increases. The total dollars requested from all areas of the campus were several times greater than the total funds projected to be available.

The Cabinet sincerely appreciates the thoughtful deliberations by the campus community during the proposal process.

Consultation Process

As in the past, each vice president and the director of external relations will provide a consultative process to seek employee and student comment on the budget proposal. Each division is asked to report back to the full cabinet by March 2. In that report, each VP/director will be asked to identify proposed changes in the university allocation. Reallocations within each division for FY 2002 should be reported by March 31.

The web version of this document provides an e-mail response mechanism for those wishing to comment directly to the Cabinet. To respond in this manner, follow this link to acting vice president of business and finance, Eunice Dell (eunice.dell@uni.edu). Greater weight, however, will be given to those comments which flow from each division consultative process.

After consideration of all comments, the Cabinet will publish a "near-final" draft to the WEB-site on March 26. There will be a one-week period for email input to this version. The final draft, to be presented to the Board of Regents, will be published on the WEB on April 10.

FY 2003 Requests

FY2003 budget requests should also be developed during this consultative process and forwarded by March 2. Most "business as usual" needs will fall into the internal reallocation process. Requests to the Board of Regents should reflect the strategic plan, indicate measurable outcomes, and be capable of generating political support.