October 3, 2011
University financial summary from the vice president for administration and finance
October 3, 2011
To: Faculty, Staff and Administrators
From: Bruce Shubert, Vice President for Administration and Finance
I’d like to take this opportunity to bring you up to speed on the university’s financial situation — past, present and future. We sincerely appreciate the opportunity to collaborate with K-State students, faculty and staff to understand issues and help solve problems. I plan to regularly share information throughout the year as we collectively move Kansas State University forward.
The general use budget, consisting mostly of state funds and tuition, is about $355 million. Even with our most careful planning, we can face a $3.5 million difference between the budget and expenditures. As one example, utility costs can fluctuate by more than $1 million annually. We must carefully and constantly monitor and revisit our plans.
Last year Summary
Fiscal Year 2011 ended with actual tuition collections above budgeted receipts by about $9 million. We were able to fund additional student aid costs, additional utility costs and to create a modest reserve — a substantial portion of which will fund the old chemical landfill removal, one-time voluntary retirement program costs and critical infrastructure needs and utilities.
Current year Summary
- State funding was reduced by about $2.6 million ($2.4 million for Manhattan)
- General use fringe benefit costs were increased by about $3.2 million
- Selectively reduced budgets by $2.4 million as planned
- Increased tuition 3.96 percent on the Manhattan campus, 4.27 percent at Salina and 5 percent for the College of Veterinary Medicine
- Reduced university funding provided to athletics by $526,000
- Replaced $3.8 million in federal stimulus funding used for the base budget
- Replaced $2.4 million in state funding
- Funded $3.2 million in fringe benefit cost increases
- Increased the institutional aid budget by $2.8 million
- Committed to a permanent 2.5 percent general use unclassified and faculty salary increase ($2.5 million in FY 2012)
- Permanently funded needs such as handbook-required salary increases (promotions and professorial performance awards), utilities, faculty and staff spouse and dependent financial aid costs, incremental increases in summer session costs, Division of Continuing Education costs, graduate teaching assistant waiver costs, and other priority areas ($5.7 million)
The current situation:
- Fiscal Year 2012 state revenue collections are stable and we hope funding will remain steady.
- Tuition collections for this fiscal year look promising.
When the governor’s budget recommendations are released in January we will better understand the funds available to the university. The recommendation will be largely based on revenue estimates provided by the Consensus Revenue Estimating Group in November.
The Board of Regents Fiscal Year 2013 request includes several components of interest to Kansas State University.
- A 1.8 percent increase in the state operating grant.
- A 2.6 percent increase to state student financial assistance programs.
- A request to effectively double K-State’s current $4.3 million allocation to rehabilitation and repair projects.
- A request for an additional $20 million for systemwide deferred maintenance needs.
- Still under discussion with the Board of Regents is a request for $5 million to improve the College of Veterinary Medicine by adding faculty, increasing graduate student support, adding research equipment and updating laboratory space.
Some future challenges include:
- Continued significant increases in the cost of employer group health insurance.
- Increasing salaries for faculty and staff.
- Addressing graduate research assistant tuition support and increasing graduate student stipends.
- Funding a competitive student aid program.
- Addressing critical facility issues.
Please feel free to contact me (firstname.lastname@example.org) with questions or comments.
Vice President for Administration and Finance