The University is facing a budget gap of 4.3 million dollars for fiscal year 2012 (FY12). On Tuesday, October 18, the University hosted a Student Budget Forum in BCC 200 at 7:30. More than 45 students attended. Here are some of the details from the presentation.

The administration is studying ways to either increase revenues or decrease expenses for the future. The University’s goal is to balance its budget by the end of the year. The University has a good record of balancing its budget; the last time it ran a deficit was 41 years ago. According to the administration, adjustments that will be made will have minimal impact on academic programs and the overall student experience.

Revenues:

Red (on revenue pie) is from all students less the amount given out for financial aid.

Expenses:

Compensation expenses include salaries.

Non-compensation expenses include equipment, supplies, and library books.

Operations and maintenance includes utilities. This is added to the value of depreciation and interest paid on current debt. All of this amounts to nineteen percent of expenses for fiscal year 2012.

Options for closing the gap:

• Enrollment stabilization (undergraduate)
• Enrollment growth (graduate), as well as new programs. (This is the path to long-term financial stability according to the University)
• Increase other non-student sources of revenue.

• Use endowments to support existing operating budget items where endowment fund terms and restrictions allow.
• Eliminate vacant positions whenever possible.
• Savings from voluntary retirement program (no one would be forced to retire).
• Consider changes in benefits programs.
• Reduce non-compensation expenses through efficiencies, policies, and practices.
• People who took the voluntary retirement option’s positions have become vacant…some will be filled some won’t.
• Internal studies are being done to learn how to save little expenses everywhere (supplies, utilities).

Reorganization & Restructuring

• Restructure, reorganize, and consolidate functions, programs and activities.
• Combine some, reduce, and eliminate.
• Reducing some positions that will not have direct impact on the effectiveness of the academic mission.

Q&A period:

Q: When is the soonest date that we can see new enrollment figures for the next academic year?

A: Early November for new enrollment.

Q: Can you give us approximately how many positions will be affected during the restructuring period?

A: It is not feasible to identify an accurate number of positions that will be affected during restructuring.

Q: Is there a flaw in the projections that the administration is making? Why exactly did the university project so many freshmen       to enroll in the 2011-2012 year?

A: The University had an aggressive target for freshmen this year because of increased expenses on enrollment procedures. The        intention was to make up for a small junior class. The current goal for the undergraduate student body population is 3200.            The University has lowered expectations in terms of numbers for the Class of 2017. The University stands by its projections          for the upcoming fiscal years.

Q: What are the approximate University expenses on utilities per year?

A: The University spends approximately $5 million on utilities and $3 million on custodial work.

Q: Is there any impact on the amount of financial aid that will be given out?

A: The University is trying its best to keep the amount of need-based aid the same.

Q: Lowering the amount of students expected to enroll next year means that the amount of revenue will also decrease. How do           you plan to make up for that?

A: We have planned on a smaller freshmen class in two years. This means that a lesser amount of courses need to be offered to         freshmen, since the freshmen population will be lower. Fewer resources will need to be used to the freshmen class since it             will be smaller.