FY17 BUDGET PRESENTATION
FISCAL YEAR 2017 OPERATING BUDGET: EDUCATION & GENERAL, AUXILIARY, DESIGNATED OPERATIONS, AND SERVICE CENTER FUNDS
Eastern Oregon University Board of Trustees 1|P a g e
November 10, 2016
FY17 BUDGET OVERVIEW
This report summarizes operating expense and revenue for fiscal year 2017. Fund types include: Education and General (E&G), Auxiliary Enterprise Funds and Designated Operations and Service Funds, all of which are defined herein. The Finance & Administration committee has recommended the FY17 operating budget for your approval. The Committee has reviewed this proposed operating budget and recommend approval of the expense and revenue budgets as presented. The 2016-17 EOU Operating Budget portrays a reasonable and balanced budget, given the moderate tuition increases, enrollment realities and state allocations.
The proposed budget addresses needs associated with increased on-campus enrollment and efforts to increase overall university enrollment. In addition, the FY17 operating budget builds on the 2015-16 success and invests in priorities, also provides some flexibility for new initiatives and investments. Budget Process
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FY17 OPERATING BUDGET: EDUCATION AND GENERAL (E&G)
The Education and General revenue budget consists of state allocation, tuition and student fees, internal sales and miscellaneous fees. The expense budget supports activities and services that are intrinsic to the university, including instruction, research, student services, libraries, administration, and maintenance of the campus physical plant. E&G Operating Budget Realities
Tuition increased by 3.9% for all categories Revenue budget based on projected 3% decline in enrollment Fall 2016 Invest a minimum of 11.25% of tuition in fee remissions Classified staff will receive a 2.25% COLA in December 2016 Faculty salary increase 5.8% effective 9/16/16 – pending CBA ratification State allocation for FY17 $20,741,864 (includes targeted funding wrestling, shared service, ETIC and SELP)
2016-17 Proposed E&G Operating Budget
FY06-FY17 Projected Ending Fund Balance
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E&G Expense Budget
FY16 E&G Expense Variance over FY16 FY16 $37,660,000 FY17 $39,789,000
Increases of $2,129,000, or 5.8%, include: • FY16 Unfunded Budget Expenses $490,000 (1.3%) • FY16 Salary/OPE Increases annualized into FY17, $437,000 (1%) • Efficiencies/Reallocations ($190,000) • FY17 New Initiatives/Investments $694,000 (1.8%)* • FY17 Salary/OPE Pool – Faculty, Classified, Administrative Professionals, Students $698,000 (1.8%)
*FY17 New Initiatives/Investments • • • • •
Human Resources Specialist $53,614 Athletics Eligibility Coordinator $59,232 Human Resources Salary Adjustments $23,887 Men’s Basketball Coach Salary Adjustment $14,127 Training and Development Program Expenses $25,000
Increases with Associated Revenue Stream • Head Wrestling Coach $71,362 • Assistant Wrestling Coach $47,127 • Manager, Organizational Transformation/Capital Projects $144,012 • Wrestling Program Expenditures $157,252 • College of Business Program Expenditures $14,500 • Student Affairs Personnel $83,887
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E&G Revenue Budget
* Business Differential fees were budgeted as course fees in FY16, however the revenue was accounted for in the tuition account type, therefore budget was aligned accordingly in FY17
FY16 E&G Revenue Variance over FY16 FY16 $38,328,000 FY17 $39,883,000
Primary increases in revenue of $1,555,000 includes: • State allocation increase of $696,000 • Tuition, course fees, and tuition remission of approximately $859,000
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FY17 OPERATING BUDGET: AUXILIARY ENTERPRISES
Auxiliary Services include services that are essential to the enhancement of the university’s academic programs. Auxiliary units are designed and expected to generate sufficient revenue to cover all costs of operating and capital need, and are not supported by State allocation/funding. Departments such as Housing and Dining, Family Housing, Student Health Center, Parking Services, Athletics and the Incidental Student Services Fee are considered Auxiliaries at EOU.
FY17 OPERATING BUDGET: DESIGNATED OPERATIONS
Designated Operations and Service Departments are those that provide self-support operations related to noninstructional activities such as field trips and community education. A Designated Operations fund will be established when approximately 80% or greater of a self-support activity is funded from external sources, including student fees for field trips. EOU’s Designated Operations Funds are academic department field trips, athletic and academic camps, workshops and the BASALT Magazine.
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FY17 OPERATING BUDGET: SERVICE DEPARTMENTS
A Service Department fund is established with the majority of the activity is internal to the university. Eastern’s primary service department is the copy center. EOU’s Serviced Departments include: Surplus property, Telecommunications and Audio Visual departments, Copy Services and Motor Pool.
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