Agenda Item No. IV. C. 1. a.

Washburn University Board of Regents

SUBJECT: Fiscal Year 2006 Budget

BACKGROUND:

In an effort to move the budget cycle for the FY 2006 general fund operating budget to a "modified normal budget schedule," the Administration developed guidelines for the FY 2006 budget process in consultation with the Regent's Budget and Finance Committee. The FY 2006 Salary Increase summary including the distribution of performance increases, entry level increases, faculty promotions, and collective bargaining unit wage increases was approved by the Board of Regents at its May 13, 2005 meeting. Since that time, the Administration has developed the remainder of the FY 2006 general fund operating budget which will be presented to the Budget and Finance Committee for approval at its June 15, 2005 meeting. The guidelines for the FY 2006 budget are as follows:

Revenue Assumptions:

State operating grant increase of $455,060.

Sales tax collections for FY 05 were above budget; however, in order to maintain a conservative budget, the sales tax estimate is based on FY 04 actual collections, an increase of $1,814,427.

Tuition increase of $14 per credit hour

Undergraduate resident tuition of $164 per credit hour

Additional tuition and fees revenue from enrollment growth

Expenditure Guidelines:

Performance-based salary increase pool for both faculty and staff

Non-discretionary increases for utilities, health insurance, and property/workers' comp insurance

Support for strategic priorities and enrollment growth - academic programs and additional funding for implementation of the academic plan/transformational experiences, scholarships, student support services, facilities services, enrollment management, and information systems needs

Allocations for classroom renovations

DESCRIPTION:

The FY 06 summary tables of the budget are attached. These tables along with the executive summary detail the changes in the budget from FY 05 to FY 06.

FINANCIAL IMPLICATIONS:

As described above and in the attached budget summary tables, and as detailed in the FY 06 Budget Book.

RECOMMENDATION:

President Farley recommends the Board of Regents approve the FY 06 operating budget.

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Date Jerry B. Farley, President