2007 budget forum 2007 budget forum larry a. nielsen provost executive vice chancellor charles d....

2007 Budget Forum

2007 BUDGET FORUM

Larry A. Nielsen ProvostExecutive Vice Chancellor

Charles D. LefflerVice ChancellorFinance & Business

John G. GilliganVice ChancellorResearch & Graduate Studies

2007 Budget Forum

BUDGET 101

2007 Budget Forum

How big is the pie?

2007 Budget Forum

2007-08 Estimated BudgetBy Revenue Source

$1,087,000,000

Non-Capital Gifts & Grants4.5%

Sales & Services14.5%

Other Sources2.4%

Federal Appropriations

2.0%

State/Local Contracts & Grants

3.0%Federal Contracts &

Grants11.0%

State Appropriations43.6%

Tuition & Fees14.6%

Non-Governmental Contracts & Grants

4.4%

2007 Budget Forum

2007-08 Estimated BudgetBy Major Area of Expenditure

$1,087,000,000

Depreciation4.9%

Auxiliary Enterprises10.8%

Student Financial Aid2.8%

Plant Maintenance & Operations

7.4%

Public Service12.0%

Academic Support6.7%

Student Services1.7%

Instruction28.6%

Institutional Support5.2%

Organized Research19.9%

2007 Budget Forum


$1,087,000,000

Depreciation4.9%




7.4%

Public Service12.0%



Instruction28.6%



Enabling Functions

39.5%

2007 Budget Forum


$1,087,000,000

Depreciation4.9%




7.4%

Public Service12.0%



Instruction28.6%



Core Functions

60.5%

2007 Budget Forum

How is the pie sliced?

2007 Budget Forum

NC State University2006-07 Expenditures

By Use

Scholarships and Fellowships

2%

Depreciation5%

Utilities3%

Services16%

Supplies and Materials

11%

Salaries and Benefits

63%

2007 Budget Forum

2006-07 ExpendituresBy Major DivisionIn Millions of Dollars

Colleges 640.2

Research & Graduate Studies 26.3

Extension, Engagement & Econ Dev 25.3

Athletics 45.8

Chancellor’s Office 10.3

Finance & Business 148.7

Legal Affairs 1.0

Libraries 31.2

Provost’s Units 115.2

Student Affairs 79.9

University Advancement 11.2

Utilities 30.0

2007 Budget Forum

College of Agriculture & Life Sciences 228.4

College of Design 10.5

College of Education 20.1

College of Engineering 124.8

College of Humanities & Social Sciences 45.4

College of Management 22.7

College of Natural Resources 30.4

College of Physical & Mathmatical Sciences 71.6

College of Textiles 20.7

College of Veterinary Medicine 65.6

TOTAL Colleges 640.2

2006-07 ExpendituresBy College

In Millions of Dollars

2007 Budget Forum

What ingredients go into the pie?

2007 Budget Forum


$1,087,000,000



Other Sources2.4%


2.0%


3.0%Federal Contracts &

Grants11.0%

State Appropriations

43.6%

Tuition & Fees14.6%


4.4%

2007 Budget Forum

2007-08

State Appropriations$474 M

Academic Affairs

$369.7

Agricultural Research

$61.6

Cooperative Extension

$42.6

78% 13% 9%

2007 Budget Forum


$1,087,000,000



Other Sources2.4%


2.0%


3.0%

Federal Contracts & Grants11.0%


Tuition & Fees14.6%


4.4%

2007 Budget Forum

2007-08

Federal Appropriations$22.0 M

• Are appropriated directly to NC State as a Land Grant University

• Major sources include:– Smith Lever Act of 1914

(CALS Coop Extension)– Hatch Act of 1887

(CALS Ag Research)– McIntire-Stennis of 1962

(CNR Forestry Research)

• Require matching State funds

2007 Budget Forum


$1,087,000,000



Other Sources2.4%


2.0%


3.0%Federal

Contracts & Grants11.0%


Tuition & Fees14.6%


4.4%

2007 Budget Forum

2007-08

Federal Grants & Contracts$120 M

• National Science Foundation 21%• Department of Agriculture 18%• Department of Health & Human Services 15%• Department of Commerce 10%• Department of Defense 10%• Department of Energy 9%• Department of Education 7%• National Aeronautics & Space Agency 3%• Environmental Protection Agency 2%• Department of the Interior 1%• Department of Homeland Security 1%• Other 3%

2007 Budget Forum

Facilities & Administrative (F&A) Receipts

• Generated from Sponsored Grants & Contracts• F&A cost rate structure is Federally negotiated• F&A is a reimbursement, not a fee nor a profit• Cost of providing common services (utilities,

facilities maintenance, payroll & accounting services, public safety, etc.)

2007 Budget Forum

F&A ReceiptsIn millions of dollars

0

5

10

15

20

25

30

35

1999-00 2001-02 2003-04 2005-06 2006-07 2007-08

2007 Budget Forum

Area

For every dollar reimbursed, this

amount negotiated, by unit:

For every dollar reimbursed, this

amount allocated, by unit:

Colleges (including special allocations) 41.1% 48.0%

Research Administration Building Use 3.0% 4.2%

Centennial Campus Infrastructure & Capital Debt Service

6.5% 12%

Institutional Administration 46.6% 33.4%

Library Use 2.8% 2.4%

TOTAL 100% 100%

F&A Allocations

2007 Budget Forum


$1,087,000,000



Other Sources2.4%


2.0%


3.0%

Federal Contracts & Grants11.0%


Tuition & Fees14.6%


4.4%

2007 Budget Forum

Sources of Tuition & Fees$159 M

Resident Tuition Receipts 68%Non-Resident Tuition Receipts 32%

2007 Budget Forum

Campus Initiated Tuition Increase(CITI)

• Legislatively-initiated tuition increases replaces State general funds in appropriation

• CITI stays on campus• Board of Governors guidelines

– 6.5% cap– 4 years– Lower quarter of peers

2007 Budget Forum

How does the pie get bigger?

2007 Budget Forum

2007 Legislative ActionsSelected Expansion Budget

• Graduate Student Recruitment and Retention$2,000,000 R (FY 07) / $2,000,000 R (FY 08) systemwide

• NC Research Campus at Kannapolis $8,500,000 R & $8,000,000 NR (FY 07 / $8,500,000 R (FY 08)

systemwide• College of Engineering

$5,000,000 R (FY 07) / $5,000,000 R (FY 08) – 55 positions

2007 Budget Forum

2007 Legislative ActionsSelected Expansion Budget

• Salary & Benefits IncreasesEPA employees - $14,660,502 R (FY 07)SPA employees - $4,942,458 R (FY 07)

• Future Efficiency Reductions(2,896,157) R (FY07) / (1,344,746) R (FY 08)

2007 Budget Forum

2007 Legislative ActionsSelected Continuation Budget

• Enrollment Increase$2,109,540 (FY 07)

• Utilities$4,963,255 R (FY 07) / $310,679 R (FY 08)

2007 Budget Forum

•Energy and Water Purchase Cost Increases (2006-07)

7.6 % electric rate increase ($/kWh)–Due to fuel adjustment charges

26% natural gas cost decrease ($/therm)–Due to market adjustment following Katrina and Rita

14.6 % water rate increase ($/CCF)

•Actions to Control Purchase Costs

Monitor electrical accounts for optimum rates

Evaluate tariff, transport, and strip natural gas rates

Evaluate fuel oil rates

2007-08

Projected Utility Expenditures$31.5 M

2007 Budget Forum

Total Utility Expenditures

45% increase since 2002-03

2007 Budget Forum

Energy Consumption per Gross Square Foot

Decrease in energy use per building area – down 3.9% since 2002-03

2007 Budget Forum

2007 Legislative ActionsCapital Improvements Budget

• Centennial Campus Library (planning)$17,000,000 NR (FY 07)

2007 Budget Forum


• CVM Companion Animal Hospital$38,000,000 NR (FY 07)

2007 Budget Forum


• College of Engineering, Building III $34,000,000 NR (FY 07)

2007 Budget Forum


• Repair and Renovation Reserve$13,564,500 NR (FY 07)

2007 Budget Forum

BUDGET 102

2007 Budget Forum

RECENT TRENDS

HEADCOUNTS & DOLLARS 2003-04 2004-05 2005-06 2006-07

Bachelor’s Enrollment 19,988 19,950 20,194 21,062

Master’s Enrollment 3,363 3,497 3,478 3,535

Doctoral Enrollment 2,603 2,773 2,953 2,945

Degree-Seeking Enrollment 25,954 26,220 26,625 27,542

Total Enrollment 29,637 29,957 30,149 31,130

Full-Time Instructional Faculty 1,647 1,638 1,671 1,652

Total State Appropriations 341,732 366,633 399,961 Unavailable

RATIOS & AVERAGES 2003-04 2004-05 2005-06 2006-07

Student HC per Faculty HC 15.8 16.0 15.9 16.7

Appropriation per Student $13,200 $14,000 $15,000 Unavailable

Faculty Salary Average $71,600 $74,400 $76,000 $80,600

Research $ (000s) per Faculty FTE 127.7 136.5 139.1 Unavailable

2007 Budget Forum

Faculty Salaries

Of NC State’s peer institutions’ salaries:Full professors: 14th of 16Assoc professors: 13th of 16Asst professors: 14th of 16

Of NC State’s peer institutions’ benefits as % of salaries:

For all ranks: 13th of 16

2007 Budget Forum

Faculty Salaries2006-07

16 Peer Institutions

NC State at 25th percentile $80,600

Peer group’s 80th percentile $94,200

Total funding requirement $27,200,000

2007 Budget Forum

Staff SalariesSPA Staff• 75% already career-banded

To get to market value - $9.3 M

($3.8 M already invested by departments)

• 25% to be banded this fiscal year

Similar market challenges anticipated

EPA Non-Faculty• Market analysis will be done this year

2007 Budget Forum

Strategic Budgeting

• Compact allocations• Faculty positions• Faculty salaries• Budget reductions

2007 Budget Forum

Compact PlanningStrategic Investment Priorities / 3-Year Commitments (2007-10)

Faculty / staff quality N/A

Build research / grad programs 3.3 M

Comprehensive disciplines 1.5 M

Student leadership / engagement 1.4 M

Economic development 1.0 M

Public policy 0.3 M

STEM education 1.7 M

Globalization 0.6 M

Strengthen resource base N/A

Strengthen infrastructure 5.6 M

2007 Budget Forum

COM COE Others NTT

Salary & Benefits $150,000 $125,000 $100,000 $90,000

Operating $25,000 $25,000 $25,000 $10,000

Graduate Assistant $25,000 $25,000 $25,000 0

TOTAL ALLOCATION $200,000 $175,000 $150,000 $100,000

New Faculty Position Allocations

2007 Budget Forum

CITI Faculty Salary Allocation

College

(a)

Base Budget (%)

(b)

Salary Deficit

(%)

(c)

SCH Production (%)

(d)

Higher of (b), (c), re-scaled

(%)

(e)

$1,000

CALS 10.1 7.8 12.4 10.3 122

Design 3.3 0.3 2.0 1.7 20

CED 5.8 2.4 3.9 3.2 38

COE 23.0 21.9 13.4 18.2 216

CHASS 14.5 32.4 30.0 26.9 319

COM 7.2 15.9 8.8 13.2 157

CNR 3.5 1.3 2.2 1.8 22

PAMS 15.0 9.9 21.0 17.4 207

COT 3.5 2.8 1.8 2.3 28

CVM 11.8 3.1 1.9 2.5 30

SA 2.3 2.2 3.0 2.4 28

TOTAL 100 100 100 100 1,187

2007 Budget Forum

2007-08 Budget Reduction

Budget Unit % Cut Relative Cut

University Total 0.53 1.0

Library 0.27 0.5

Utilities 0.27 0.5

Colleges 0.44 0.8

Student Affairs 0.58 1.1

Vice Provost Units 0.83 1.6

Other Institutional Support 0.72 1.4

Agricultural Research 0.55 1.0

Cooperative Extension 0.48 0.9

2007 Budget Forum

More strategic budgeting to come…

2007 Budget Forum

Questions?www.provost.ncsu.eduwww.fis.ncsu.edu/FiBus

2007 budget forum 2007 budget forum larry a. nielsen provost executive vice chancellor charles d....

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