Buffalo State

2013/14 State Purpose Budget Overview

Finance and ManagementSeptember 20, 2013

State Purpose Budget Overview

• Determined by annual State budget process

• Allocated to campuses through SUNY budget model

• $83,939,800 in 2013-14

• Two Components – State Tax Support and Revenue Target (primarily tuition revenue)

State Tax Support Overview

• State Taxpayer Funds campus has little impact

• Decreases = State budget cuts

• $24,144,900 in 2012-13 and 2013-14

• Increases = salary and inflation funding

• “Maintenance of Effort” under Rational Tuition Program per DOB = no increases or decreases

Tuition Revenue Overview

• Determined by enrollment and tuition rates

• Target enrollment levels determined by campus with SUNY approval

• $59,794,900 target in 2013-14

• Tuition rates approved by governor/legislature as part of SUNY budget request

• Tuition is used to support State Purpose budget, with balance to campus SUTRA accounts

Tuition OverviewComparison of Total Tuition Revenue to Targets

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

(3,000,000)

(2,000,000)

(1,000,000)

0

1,000,000

2,000,000

3,000,000

4,000,000

1,308,063.00

367,694.00

3,448,706.00

1,730,883.00 1,172,036.00

587,367.00

(1,941,477.00)(2,447,900.00)

SUTRAprojected

Tuition OverviewHistory of Total Tuition Revenue

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

43,921,863.0 42,944,594.0 47,641,906.0

53,406,883.0 54,046,436.0 56,095,067.0 56,868,823.0 57,015,000.0

Start of Rational Tuition Program

Estimated New Revenue:

$3m / year

Actual New Tuition Revenue:

2011/12 $1.5m

2012/13 $1.2m

2013/14 $.2m

Three Year Total = $2.9m

$6.1m less tuition revenue than projected

Enrollment HistoryUndergraduate Student Headcount

Fall 2005

Fall 2006

Fall 2007

Fall 2008

Fall 2009

Fall 2010

Fall 2011

Fall 2012

Fall 2013

8,400

8,600

8,800

9,000

9,200

9,400

9,600

9,800

10,000

10,200

9,010

9,314

9,139

9,371

9,822 9,788

10,012

9,786

9,386

Undergraduate Headcount

Projected at 9/13

$3.04m less tuition revenue than projected at the start of Rational Tuition

Enrollment HistoryGraduate Student Headcount

Fall 2005

Fall 2006

Fall 2007

Fall 2008

Fall 2009

Fall 2010

Fall 2011

Fall 2012

Fall 2013

0

500

1,000

1,500

2,000

2,500

1,996 1,906 1,854 1,863 1,892 1,907

1,657 1,465 1,387

Graduate Headcount

Projected at 9/13

$3.06m less tuition revenue than projected at the start of Rational Tuition

Comparison of State Purpose Revenues to Expenditures

2010-11 2011-12 2012-13 2013-1477,000,000

78,000,000

79,000,000

80,000,000

81,000,000

82,000,000

83,000,000

84,000,000

85,000,000

86,000,000

82,858,843.0

80,038,611.0

81,261,215.0 81,491,900.0

83,630,780.0

80,222,387.0

82,581,215.0

84,719,200.0

Total State Purpose Revenues

(projected)

BudgetDeficit

Budget Issues and Concerns

• Other revenue sources and reserves have been used to balance State Purpose deficits

• Budgets in units are higher than the budget we receive from the State (budget for savings of vacant positions in unit budgets)

• Inadequate systems to assist in monitoring budgets to actual activity

• Limited expenditure control

Approach to “right size” our Budget

• Bring our revenues and expenses into alignment

• Implement enrollment growth strategies for Fall 2014

• Use reserves to cushion the impact and address critical needs this year only.

• We will reduce expenses this year

• Two strategies: Grow revenues Reduce expenses

How much will we cut and how will we do it?

• Implement position control

• Provide units with funding for $1.1m in negotiated salary increases from central sources

Projected Expenditures = $84.7mDesired Expenditure Reduction = $1.6mTarget Budget = $83.1m• Monitor unit budgets against actual expenditures

• Establish a total campus budget that addresses ½ of the projected $3.2m deficit

Calculation of Revised Unit Budgets

Current Reduction Distribution of RevisedAllocations to Allocations Salary Raise Allocations

2013/14 2013/14 Resources 2013/14

Academic Affairs 45,631,400 (1,882,800) 565,100 44,313,700

Finance and Management 14,604,200 (602,600) 213,200 14,214,800Institutional Advancement 3,151,200 (130,000) 32,300 3,053,500Information Services and Systems 7,931,700 (327,300) 121,800 7,726,200Student Affairs 7,250,500 (299,200) 104,400 7,055,700President's Area 908,700 (37,500) 6,000 877,200General University 7,204,500 (297,300) (1,042,800) 5,864,400

Campus Total 86,682,200 (3,576,700) 0 83,105,500

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