SUBJECT: Fiscal Year 2004 Budget

BACKGROUND:

At the July 23, 2003 meeting, the Board approved the budget guidelines to be used by the administration to develop the FY04 operating budget. Since that time, the administration has developed the FY 04 budget in accordance with the guidelines approved by the Board of Regents in consultation with the Budget and Finance Committee as follows:

Revenue Assumptions:

State operating grant virtually same as reduced FY 03, an increase of $1,478.

Sales tax budgeted at level of actual collections for FY 03, a decrease of $752,551. This decrease is being funded by a transfer from the Smoothing Fund in the amount of $752,551 to keep the total sales tax income available to the General Fund for FY 04 at the same level as FY 03.

Tuition increase of $15 per credit hour

Undergraduate resident tuition $135 per credit hour

Additional tuition and fees increase from unbudgeted FY 03 actual enrollment

No increase in FY 03 actual enrollment, except Law, as basis for FY 04 budget

Expenditure Guidelines:

Performance-based salary increase pool for both faculty and staff

Non-discretionary increases for utilities, health insurance, and property/liability insurance

Support for strategic priorities - administrative information systems project, scholarships, student support services, facilities services, and academic programs

DESCRIPTION:

The FY04 summary tables of the budget are attached. These tables along with the executive summary detail the changes in the budget from FY03 to FY04.

FINANCIAL IMPLICATIONS:

As described above and in the attached budget summary tables, and as detailed in the FY04 Budget Book.

RECOMMENDATION:

President Farley recommends the Board of Regents approve the FY04 operating budget.

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Date Jerry B. Farley, President