Agenda Item No. V. B. 1.

Washburn University Board of Regents

SUBJECT: Fiscal Year 2003 Budget

BACKGROUND: At the July 24, 2002 meeting, the Board approved the budget guidelines to be used by the administration to develop the FY03 operating budget. Since that time, the administration has developed the FY 03 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 same as FY 02, less Governor's reduction of $79,455

Sales tax increase based on FY01 actual collections adjusted for the 9.55% decline in FY 02 collections, $721,832

Tuition increase of $10 per credit hour

Undergraduate resident tuition $120 per credit hour

Additional tuition and fees increase from unbudgeted FY 02 actual enrollment

No increase in FY 02 actual enrollment, except Law

Other miscellaneous revenues of approximately $40,000

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, athletics

DESCRIPTION: The FY03 summary tables of the budget are attached. These tables along with the executive summary detail the changes in the budget from FY02 to FY03.

FINANCIAL IMPLICATIONS: As described above and in the attached budget summary tables, and as detailed in the FY03 Budget Book.

RECOMMENDATION: President Farley recommends the Board of Regents approve the FY03 operating budget.

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Date Jerry B. Farley, President