Planning and Budget Advisory Council
The Chancellor’s Planning and Budget Advisory Council reviews and provides input on matters related to SIU Carbondale’s budget.
Meeting Summary: September 25, 2018
Main topics for the meeting were a summary of state appropriated and income fund revenues and expenses for the period FY15 through FY18 and a comparison of the FY18 original operating budget to actual results.
Summary of state appropriated and income fund revenues and expenses and board meeting update: Judy Marshall, chair, distributed a summary that provides a snapshot of SIU Carbondale’s actual revenues and expenses from FY15 through FY18 and the budget for FY19. This summary was presented to the SIU Board of Trustees as part of a budget presentation on September 12, 2018.
FY15 is considered the “base year” for state appropriated funding, and the campus received almost $103 million. Tuition revenue was $107 million, and SIU Carbondale ended the year with $15 million in income fund cash. Following the state funding impasse, the university received a little over $29 million in appropriations for FY16, a cut of $73.4 million compared to the prior years. The campus cut $12.6 million in expenses but still ended up with a $45 million deficit.
The appropriation was restored in FY17 but tuition revenue dropped. In FY18, the appropriation was cut 10 percent and tuition revenue dropped a bit more, but the university had a significant reduction in spending compared to FY15. There is still a deficit cash balance in the income fund, but progress continues to be made. The FY19 budget reflects a 2 percent increase in appropriations. Tuition income is expected to be flat, with a decrease in on-campus tuition offset by an increase in distance education tuition.
For the first time since FY10, departments were not asked to cut their budgets.
The board approved the FY19 budget during its regular meeting on September 13, 2018. Also approved was a 1% general salary increase for non-represented employees. The increase is effective July 1, 2018, and will be included in future paychecks.
Comparison of FY18 actual results to the original budget: A comparison of the FY18 original operating budget to actual revenues and expenses was distributed. Each of the budget’s major fund groups was explained:
- Appropriated funds – The amount is determined by the state. SIU Carbondale spends 100 percent of the appropriation. It is “use it or lose it”; unused funds do not carry forward to the next year. In FY18, the university lapsed 60 cents.
- Income funds – This is tuition revenue. Projections of tuition revenue for the next year begin in late fall by reviewing the number of applications and admissions. The number firms up when registration begins in April. By early July, the projection is accurate. FY18 revenue was more than budgeted due to increased tuition from distance education and from collection of past due bills. The actual tuition assessment for fall semester 2018 was in line with projections. Spring tuition is usually about 90 percent of fall.
- Grants and contracts – For revenue budgeting and financial reporting, grants are reported at the amount of expenses. Grant expenses in FY18 were only 1.7 percent more than the budget, but the actual revenues received exceeded the budget by 17.6 percent. The annual budget is based on spending in the past three years, adjusted by any expected changes
- Indirect cost recovery - This is overhead earned from externally funded grants. The amount has decreased as grant spending has decreased.
- Revenue bond operations – This includes areas such as the Student Center, University Housing, Student Recreation Facility, Student Health Center, Child Care Center, athletics facilities and a few others. Budgets are determined by staff within those areas. Revenues are dependent on student fees and are budgeted to be less in FY19 due to decreased enrollment. Spending is also budgeted to be less in FY19, compared to FY18. Some of these areas will use cash reserves to cover expenses in excess of current year revenues. Cash held by these units is considered restricted and is not available for other uses.
- Self-supporting activities – This includes areas such as athletics, farms, broadcasting service, SIU Press, IT fee, Facilities Maintenance fee, Distance Education fee, and activities accounts within departments. The budgets for these areas are determined by staff within the areas. Cash held by these units is unrestricted.
FY2019 Operating Budget by Line Items and Major Fund Groups – “Table A” is included in the Board approved budget. The table provides a one-page summary of the overall budget for the campus.
Other items – It was announced during the Board of Trustees meeting that there will be no request for a tuition increase for FY20 (fall 2019 semester). Fee proposals are still being considered. Any requests for fee increases will be taken for discussion to the appropriate student groups. It was noted that the fee for student health insurance is set by the vendor and will likely be increased based on claims history.
The group discussed enrollment and steps underway to increase the number of students attending SIU Carbondale including SIU Day and marketing materials. The group expressed an interest in inviting Jennifer DeHaemers to speak to the committee at the next meeting.
The next meeting will be held in November.