Budget Process at American University

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Budget Process at American University
Presentation to University-Wide Budget
Meeting February 10, 2003 This presentation
material is available on the Budget Office
website at http//www.american.edu/finance/budget/
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Outline

• Budget Planning Process
• General Budget Information
• FY2004 and FY2005 Budget Highlights
• Supporting Budget Materials

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I. Budget Planning Process

• Budget formulation criteria presented to the
  Board of Trustees
• University Councils Role
• Faculty Senates Role
• Multi-year budgets which incorporate strategic
  planning and financial resource planning
• The budget approved and presented by the
  President to the Board of Trustees
• Communication to the university community

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II. General Budget Information

• FY2003 Current Year Budget Approved by the
  Board
• Revenue Budget
• Pricing Policy
• Expenditure Budget
• Financial Safeguards
• Merit and Market Increases for Faculty and
  Staff
• Universitys Contribution to Health Plans
• Financial Aid

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Revenue Budget

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Pricing Policy

Tuition and Mandatory Fee Increases AU 3
Tiers Private AY95-96 to AY96-97 3.7
4.9 5.0 AY96-97 to AY97-98 4.6
4.7 5.0 AY97-98 to AY98-99 4.7
5.6 5.0 AY98-99 to AY99-00 4.8
4.8 4.7 AY99-00 to AY00-01 5.0
4.5 5.2 AY00-01 to AY01-02 5.1
5.2 5.5 AY01-02 to AY02-03 4.3
6.3 5.8 Average 4.6 5.1 5.2 40
competing institutions identified by Enrollment
Services reported by the College Board
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Expenditure Budget

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Financial Safeguards

• Enrollment Contingency 3.5 million
• Transfer to Quasi Endowment 5.2 million
• Pre-fund Salary Increases 3.0 million
• Deferred Maintenance 6.0 million
• Total 17.7 million
• Percent of FY03 Budget 6

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Staff Salary Compared to Market Median

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Faculty Salaries Compared to AAUP Standards

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Merit and Market Increases

Staff Faculty Merit Market Market FY1
997 3.0 600K 300K FY1998 3.0 1.2M 265K
FY1999 2.5 1.4M 225K FY2000 2.5 1.4M
350K FY2001 4.0 1.4M 800K FY2002 4.0 1.7
M 943K Total 7.7M 2.9M
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Universitys Contribution to Health Plans

Calendar Year University
Cost 2000 3.4M 2001 3.8M (1st year of
contribution change) 2002 4.9M (2nd year of
contribution change) 2003 5.6M Total 17.7M
University contribution changed to
80 for individual (95 for individual
earning less than 25K) 65 for individual 1
65 for family
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Financial Aid

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IV. Supporting Budget Materials

• Board Approved FY2004 and FY2005 Budget
  Formulation Criteria and Schedule
• Tuition and Residence Halls Rate Increases,
  FY1980 FY2003
• Market Comparison Data for Tuition
  (undergraduate, graduate and law) and Residence
  Halls
• FY2003 Current Year Budget Approved by the Board