Penn State Altoona Budget Overview 2005 2006

1
Penn State AltoonaBudget Overview2005 - 2006
2
University Budget Process

• July Provost sends a memo with budget for the
  new academic year. Based on previous years
  budget, with /- e.g., salary increases/recycling.
  
• July 1 June 30 Tuition income is received by
  Central Administration.

3
University Budget Process Contd

• November We receive temporary funds allocation
  based on tuition income received and projected.
• April Central Administration conducts second
  projection of tuition income based on funds
  received. We either receive additional funds or
  must send funds back if tuition income is below
  projection.
• May June Final adjustments are made based on
  actual tuition income received by Central
  Administration.

4
University Income

• Tuition
• State Subsidy (Abysmally low)
• Unrestricted Gifts

5
University Income Contd

• Restricted purposes
• Research Funds
• Gifts, including interest from endowments
• State Capital Funds (buildings)

6
(No Transcript)
7
Our Income Allows us to Create Expense Budgets

• Base Budgets (Permanent Funds)
• Temporary Funds
• Restricted Purposes (Research, Some Gifts, State
  Buildings)

8
Penn State Altoona 2005-2006 BudgetIncome

• Tuition income base budget 39,666,811
• Estimated increase, temporary funds
  2,558,241
• Estimated income 42,255,052

9
Penn State Altoona 2005-2006 BudgetExpenses

• Base Budget (Permanent Funds) 22,248,199
• Estimated increase, temporary funds
  2,558,241
• Total Expense Budget 24,836,440

10
Base budget (permanent funds)22,248,199

• Academic Affairs 12,922,611 59
• Athletics 547,721 2
• Business Operations 4,682,544 22
• Chancellors Office 979,024 4
• Continuing Educ and Training 317,036 1
• Development 99,277 0
• Enrollment Services 754,670
  3
• Finance 162,007 1
• Student Affairs 1,421,332 6
• University Relations 361,977
  2
• 22,248,199 100
  

11
(No Transcript)
12
(No Transcript)
13
Penn State Altoona2005-2006 Budget

• Tuition Income Budget 42,255,052
• Expense Budget 24,836,440
• Difference 17,418,612

14
Where does the 17.4m go?

• Faculty and staff fringe benefits
• 2005/2006 6.3m
• Centralized support services (HR, Payroll,
  Sponsored Programs, etc.)
• Penn State Name (Priceless)

15
Faculty Salary Increases

• Total funds available for salary increases
  determined by Central Administration.
• Total percent available for merit salary
  increases is a certain percent (e.g., 2.5, 3)
  of the filled faculty/staff positions.

16
Faculty Salary Increases Contd

• Additional funding is available through the
  Presidents Excellence fund to reward excellence.
  The percentage available is determined by
  Central Administration (e.g., 1.5). These funds
  must be used for salary increases.
• Operating funds may NOT be used for salary
  increases, unless special permission is granted
  by the Provost (e.g., for salary disparities -
  the match funds approved for salary increases for
  Associate Professors).

17
Additional Information on the Budget

• Link to view Penn States budget
• http//www.budget.psu.edu/OpenBudget/default.asp
• Link to view Penn State Altoonas budget
• http//www.budget.psu.edu/OpenBudget/DeptSumm2001.
  asp?adminarea076fy20052006fundtype01TypeB

18
And your questions?
19
Update on University Budget Situation

• President, Provost, and VPCC teleconference
  Wednesday, 1000 a.m., CAC.
• 15.1m tuition shortfall for the 12 former
  Commonwealth College campuses (4.6m more than
  the 10.5m projected in June).

20
2005/06 University Plan to Cover Shortfall

• Step A Close 15.1m shortfall.
• -10.5m gap projected in June
• 8.5m Central Administration
• 2.0m OVPCC carryover funds
• -Additional 4.6m gap based on actual Su/Fa 2005
  enrollments
• 1 Temporary Recycling
• OVPCC
• Other Sources

21
2005/06 University Plan to Cover Shortfall

• Step B Fund Institutional Grants/Scholarships
  for 2006/07
• -1.1m Central Administration
• -Other Sources

22
Impact of Plan on Altoona

• Temporary Recycling - 1 of Net Permanent Budget
  (05/06) 211,053
• Prediction Unlikely that Altoona will receive
  any of the Institutional Grants

23
2006/07 University Budget Plan

• 15.1m shortfall temporarily addressed in 05/06
  budget.
• 06/07 budget plan will begin to bring permanent
  expense levels for CC in line with available
  tuition revenues.
• Plan is a combination of permanent and temporary
  adjustments for 06/07.
• Permanent adjustments will continue in 07/08 and
  beyond to bring permanent expense levels in line
  with tuition revenues.