Recommended 200708 Budget Highlights

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Recommended 2007-08 Budget Highlights
Eastern Kentucky University Board of
Regents June 28, 2007
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2007-08 Budget Highlights
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2007-08 Operating Revenues
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2007-08 Operating Expenditures
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2007-08 Operating Expenditures
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• 2007-08 Expenditures Analysis

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Funding Priorities Summary FY05 to FY08
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Funding Priorities SummaryFY05 to FY08
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Cost Avoidance and Reallocation Initiatives

• Cost avoidance and reallocation initiatives serve
  to offset potential tuition increases by the
  allocation of funds resulting in internal
  efficiencies (reallocation) as well as the
  lessening the need for additional funding for
  various fixed costs (cost avoidance).
• Internal budget reallocations not only allow for
  allocation in a single year, but are permanent
  reallocations, thus the savings effect is
  compounded in future budgets.

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Cost Avoidance and Reallocation Initiatives FY05
to FY08
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Strategic Category Funding

• Four areas of Board emphasis relative to
  addressing funding needs as the University began
  addressing significant strategic areas
• Faculty and Staff Salary Equity
• Financial Aid
• Deferred Maintenance
• Contingency Fund

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Strategic Category Funding
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8 Million Unrestricted Fund Balance Allocation
Update

• Allocation of 8 million in Unrestricted Fund
  Balance is complete.
• Academic Equipment (1.5 million) and Classroom
  Furnishings Pool (1.0 million) allocations were
  coordinated through the Provosts office and
  distributed to the colleges and the libraries.
  These funds are being used to replace and upgrade
  academic equipment and classroom furnishings.
• The Technology Pool will be used to fund
  completion of the campus wide computer hardware
  rotation plan.

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8 Million Unrestricted Fund Balance Allocation
Update

• The Technology Pool will be used to fund
  completion of the campus wide computer hardware
  rotation plan.
• The Infrastructure Pools will be used for various
  facilities capital projects including the student
  requested upgrade of the Herndon Lounge in the
  Powell Building.
• Funds for the other strategic initiatives related
  to recruitment and retention have been
  distributed for utilization based on plans
  submitted from those respective areas.

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One-time Faculty Merit Funds from Unrestricted
Fund Balance

• The 1 million allocated for one-time faculty
  merit has been distributed.
• These funds were included in the faculty payroll
  on May 15th.

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Budget Development

• Two Phases
• Development of the Budget Guidelines
• Development of the detailed budget

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Budget Guidelines

• Developed by the Budget Advisory Council and
  recommended to the President
• President recommends final budget guidelines to
  the Board of Regents
• Board approves budget guidelines
• Budget guidelines are incorporated as the basis
  for allocation of new/reallocated funds in the
  preparation of the upcoming fiscal year budget

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Budget Advisory Council Representatives
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Budget Cycle
Update analytical tools and prepare budget
assumptions
Units enter budgets
Budget guidelines developed Complete preliminary
forecast
Funding notification to Units
Units submit proposals for funding requests
Unit Budget Hearings
Board of Regents Approval of budget guidelines
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Document Flow

• Academic

Financial Manager
Dean
Provost
Office of Budgeting

• Non-Academic

Financial Manager
Manager, Director, Assistant Vice President
Vice President
UnitOrganization
GroupDirect Reports to President
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