May 1, 2003

University Town Hall Budget Meeting

2

Considerations for Budget Planning • Projected budget based on:

– 15% tuition increase– Enrollment held steady

• Financial aid status is still unclear• Legislature has not reached a decision

– House proposal: 13.6% cut to MnSCU– Senate’s proposal: 8% cut to MnSCU– Governor’s proposal: 15.7% cut to MnSCU

• MnSCU tuition approval:– First reading: June – Second reading: July

3

FY’04 Proposed Budget Reductions

Academic Affairs:Various positions vacated or reallocated $1,716,592

AISEC visiting student 9,000

International visiting professor 20,000

Moving, severance, substitution and sick pay 450,000

Academic Initiatives 100,000

Entrepreneurial Center 25,000

Sub-total $2,320,592

4

FY’04 Proposed Budget ReductionsAdministrative Affairs:Expenditure/Revenue transfer Printing Services $50,000

Various positions vacated or reallocated 35,000

Savings heat/air conditioning adjustment 75,000

Public Safety 30,000

Staff development (1/2) 22,250

Colbert lease 35,000

Tennis Center lease 12,000

Phone system 100,000

Repair and Replacement 200,000

Memberships 10,000

Sub-total $569,250

5

FY’04 Proposed Budget Reductions

University Advancement:Various positions vacated or reallocated $166,441

Operating budget reductions 55,000

Founders Day, travel, events reductions 20,000

Internal process streamline 5,000

Sub-total $246,441

6

FY’04 Proposed Budget Reductions

Student Life and Development:Various positions vacated or reallocated $215,882

Reduce Kick-off budget (1/2) 20,000

Sub-Total $235,882

7

FY’04 Proposed Budget Reductions

President's Office:Athletics $50,000

University Wide:Voluntary leave without pay 45,000

Administrative support fees 200,000

Supply and equipment 133,884

Unused accounts 20,000

Sub-total $448,884

8

FY’04 Proposed Budget Reductions

Academic Affairs $2,320,592

Administrative Affairs 569,250

University Advancement 246,441

Student Life & Development 235,882

President’s Office and University-wide $448,884

Total FY’04 Budget Reduction $3,574,608*

* $246,441 soft money through University Advancement is not included in the total

9

Assumed Variables for Planning• Enrollment: FY’04, FY’05=14,325

• State allocation for FY’04, FY’05 based on MnSCU estimate from Governor's Budget Plan as of 2/18/03

• Salary increases @ 5% FY’04, 5% FY’05

• Fringe increase to 30% of salaries in FY’04, FY’05

• Utilities increase 3% in FY’04, FY’05

• Credit card expense adjusted for web-site payment

• Legal costs increase $200,000 FY’04, FY’05

• MnSCU policy regarding reserves - requires 5% reserve, adjusted to 3% FY’04, FY’05

10

Possible Tuition Increases

• 15% across the board increase

• International student increase of $10/credit

• Differential tuition for College of Business and other programs– Investigate implications– Consultation with Student Government

11

Possible Restructuring• SCSU organizational structure should:

– Reflect values and goals of the University – Promote student intellectual and personal development

• Consultants suggested three alternatives– Report is available online at:

www.stcloudstate.edu/documents/organization

• Campus-wide Task Force will:– Develop set of recommendations– Consult with University community to solicit feedback

– Submit final recommendations by Nov.

12

Restructuring Process Timeline

April 20

Consultant’s

Report

May 2003

Creation of

Task Force

Summer 2003

Task Force

meets

Sept. - Nov. 2003

Recommendations

and consultation

• Faculty

• Staff

• Students

Goal: Implementation July 1, 2004

May 1, 2003

Questions or Comments?