assembled a budget briefing to inform the campus community of
some basic facts concerning the College’s budget. This will
provide important background information as we think about the
future of the College within the upcoming state budget process.
The College will
generate nearly $100 million in revenue during the 2009-10 fiscal
year from a variety of sources. Our core operating budget,
consisting of state tax dollar support ($17 million) and tuition
income ($30 million), comprises approximately half of the total.
This is the fund that pays for the core operations of the College
such as teaching, research, and support services.
Another $25 million
is held in dedicated funds including income from student fees
and related income, dormitory income, and summer session tuition.
These are self-sustaining funds that generate (usually through fees)
the amount of money needed to provide the services they support.
consists of income generated by campus related entities
including OAS ($17.4 million), the Research Foundation ($6.3
million), and the College Foundation ($1.8 million). These groups
are independent entities but they play a significant role in
supporting College activities.
Approximately $73 million
of our revenue is allocated by division and function as shown
below. Of this amount, $25 million is dedicated to various income
funds such as dormitory operations and debt service, summer session,
and other income-generating activities.
Academic Affairs comprises 40% of our allocated budget, followed by
Finance and Administration including Facilities (24%), and Student
Development (17%) with the remainder allocated to College
Advancement, Community Relations, Equity and Inclusion, and the
President’s Office, as well as campus-wide costs such as utilities
Over the past two
years, the College experienced unprecedented fiscal challenges:
Reductions in the 2008-09 budget adopted by the state
Additional mid-year budget reductions during 2008-09
A 14% increase in tuition rates since Spring 2008
Further reductions in the 2009-10 budget
The overall reduction in state support since the
2008-09 budget was enacted totals $6.4 million, or a reduction of
33% in our state support.
While much of this loss was offset by tuition
increases and state funding for contractual salary raises, this
still represents an inflation-adjusted loss of $2.4 million.
The proportion of state support declined from 45% to
36% of our core operating budget.
The College met these budget reductions through a combination of
Froze 26.5 FTE Positions
12 vacant faculty
non-instructional positions across the campus
Deferred equipment replacement & technology upgrades
Used savings from position turnover
Drew down accumulated savings
Fortunately, our College had been experiencing some growth prior
to 2008-09. Our core operating budget had grown by nearly $10
million, or 24%, since 2005-06. The reductions in FTE positions
were done proportionately across all divisions of the College, and
the total number of positions is still 13 FTE higher now than two
We are monitoring the state’s budget situation
closely and planning accordingly. While projections vary, we could
be facing further budget reductions in the $3 to $4 million range
this year and next. We are hopeful that any reductions can be
accommodated with accumulated savings and additional budgetary
measures identified in the coming months. In addition, our recently
launched strategic-planning process will help us identify program
priorities and areas of strength which can guide our
resource-allocation decisions in future years.
We will keep you apprised of any further budget
developments as they unfold during the year. We appreciate your
personal efforts to conserve resources and limit expenditures as we
will again face an uncertain state budget in 2010. Through careful
planning and fiscal responsibility, we will meet budgetary
challenges and continue to strengthen our College.
October 1, 2009