Agenda Item No.

Washburn University Board of Regents

SUBJECT: FY01 Budget

DESCRIPTION:

At the February 16, 2000 meeting, the Board approved the budget guidelines to be used by the Administration to develop the FY01 operating budget. These guidelines were developed assuming the funding formula for SB345 approved by the Kansas Board of Regents is implemented in full for FY01. Based on approval of this budget, employment contracts can be finalized.

The Board approved the following revenue and expenditure guidelines:

Revenue Assumptions:

State Operating Grant Increase---

Governor's recommendation.

Steady state sales tax revenues.

4% Tuition and/or fee Increase---

$107 per hour for undergraduate residents or its equivalent.

Expand 2+2 Program beyond the Kansas City market.

Steady state enrollment (except Law).

$192,000 tuition contingency.

Other miscellaneous revenue of approximately $250,000.

Applications fee revenue of approximately $63,500.

Use of reserves of $350,000 for marketing.

Expenditure Guidelines:

Merit based salary increase pool for both faculty and staff (based on 3% incremental increase on filled positions). Includes funds for adjusting wages to market.

Additional Faculty salary merit pool (based on 3% of filled positions). Includes funds for promotions.

Other Operating Expense (OOE) increase of 2%.

Permanent decrease in budget due to enrollment declines.

Expand 2+2 outside the Kansas City market.

Support AACSB accreditation for the School of Business.

Support student recruiting and marketing efforts.

Support development of web-based programs.

The budget changes are reflected in Exhibit 1. (There are certain revenues and expenditures earmarked from activities of KTWU, Law School and benefit reimbursements, etc.)

Highlights of the proposed FY01 operating budget include:

Total E&G revenues of $46.7 million, a $3.03 million increase over the FY00 budget. This increase resulted primarily from the State Aid grant increase and sales tax. Interest and endowment income are budgeted to increase as are miscellaneous revenues from increased levels of departmental activity.

Total E&G expenditures of $46.4 million, of which $350,000 is to be funded from planned distribution of reserves. This increase of $3.03 million from the FY00 budget is allocated primarily for salary pool and benefit increases of 3% (6% for faculty), 2% for Other Operating Expenses, and self-funded increases for the Law School, KTWU, and the 2+2 PLAN expansion.

The FY01 budget includes permanent budget reductions of $(424,000). In addition, it includes the internal reallocation of over $300,000 to meet the priority needs of the units.

The Proposed Classified Compensation Schedule is enclosed as Exhibit 5.

This schedule provides the entry rate for each job classification.

The entry rates are adjusted each year to remain competitive with the State and private employers.

Major changes were made this year to the Library assistants and Security/Police positions.

The proposed increase in salary levels of family health premiums is enclosed as Exhibit 6.

Premiums have increased 12% since 1997.

Salaries have increased less than 10% in the same period.

The proposed schedule increases the University contribution by $2,000 for each category.

This is 12% for the lowest range and 5% for the highest range on the schedule (comparing rates established 1997 and the proposed salary rates at the top of the page).

Budget for this increase is expected to be adequate, as long as health insurance rate increases stay below 10% in FY01.

FINANCIAL IMPLICATIONS:

As described above and on the attached exhibits.

RECOMMENDATION:

President Farley recommends that the Board of Regents approve the FY01 Operating Budget.

_____________________ ______________________

(date) Jerry B. Farley, President

EXHIBIT 2

Recommended Tuition and Fees for 2000-2001 (Effective Fall Semester)

A.

University Tuition

FY00

FY01

Change

	Undergraduate Resident	$103	$107	$4
	Undergraduate Non-Resident	$232	$241	$9
	Law Resident	$251	$274	$23
	Law Non-Resident	$378	$427	$49
	Graduate Resident	$139	$145	$6
	Graduate Non-Resident	$286	$298	$12
	PLAN 2+2	$135	$140	$5
	Undergraduate - Distance Education	$135	$140	$5
	Graduate Distance Education	$175	$175	$0
B	Student Activity Fee (As recommended
	Undergraduate and Graduate	$25	$28	$3
	Undergraduate and graduate	$13	$14	$1
	Exception to above: There will be no activity fee charge for students
	Law students taking in excess of 6 credit hours per semester	$20	$20	$0
C	Room and Board for Residence Halls
	Board Rate	$1,665	$1,730	$65
	Residence Hall Rate	$1,655	$1,680	$25
D	Family Housing	$195	$195	$0
E	Application Fee	---	$20	$20

EXHIBIT 3

Faculty Salary Policy for 2000-2001 (Effective 7-1-00) applicable to adjunct faculty, summer faculty, emeriti faculty and teaching overload.

EXHIBIT 42000-2001 Public Budget Hearing

A. The Board of Regents is scheduled for a regular board meeting on July 12, 2000. At this meeting, the Board is to approve the FY01 Public Budget document for publication. The Public Hearing is scheduled for 4:00 p.m., Wednesday, July 26, 2000 in the Kansas Room, Memorial Union, Washburn University.

B. The Administration recommends cancelling the July 12 meeting. The Board will review the Public Hearing Budget documents at its June 21, 2000 meeting. Following the Public Hearing on July 26^th the Board will conduct its regular July meeting.