May 16, 2011
Legislative update, May 16
To: K-State faculty, staff and students
From: Sue Peterson, Assistant to the President and Director of Government Relations; and Bruce Shubert, Vice President, Administration and Finance
The Legislature finished the session early Friday morning, May 13.
Though some details are yet to unfold, we believe legislative action will reduce K-State's State General Fund (SGF) budget by about $3.16 million (approximately 1.9 percent) in FY 2012. Additionally, we must fund a number of required budgetary needs that include: 1. Replacing Federal Stimulus funding currently being used to fund student aid and graduate student salaries; 2. Increased costs for employer group health insurance and other employee fringe benefits; 3. Increasing student aid; 4. Increased utility costs; 5. Funding University handbook required salary increments (promotions).
The Kansas Board of Regents (BOR) will receive the first reading of K-State's FY 2012 tuition proposal next week. Our current plan, subject to BOR approval of our tuition proposal, will allow us to absorb the SGF reduction and fund the required cost increases from tuition rate increase revenue, revenue produced from enrollment changes and targeted funding reductions agreed to last spring. We will not be able to provide resources to create a salary increase pool or to make progress towards funding Graduate Research Assistant tuition waivers.
The Legislature provided $5 million to K-State for animal health and food safety. These funds will be administered by the Kansas Department of Commerce (KDOC). We will continue working with KDOC to create a plan that meets requirements necessary to access those funds.
A program to significantly expand the number of engineering graduates in Kansas was also approved, with $1 million to be divided among Wichita State, KU and K-State in FY 2012. That amount will increase to $10.5 million per year in FY 2013 and will be divided equally among the three schools. These funds will be administered by the KDOC. We will continue working with KDOC to refine our program proposal.
The Classified Market Equity pay plan was not funded.
Legislation to begin addressing the KPERS unfunded liability and to establish a KPERS focused commission was passed.
Pease feel free to contact either of us with comments or questions.