Academic Affairs Budget Workshop for Academic Deans, Department Heads, and Directors

OVERVIEW OF THEWKU FY 2009-10 BUDGET

OCTOBER 2009

PRESENTED BY MIKE DALE & LADONNA HUNTONOFFICE OF THE PROVOST & VPAA

WESTERN KENTUCKY UNIVERSITY

SOURCE INFORMATION: WKU BUDGET 2009-10

Academic Affairs Budget Workshopfor Academic Deans, Department

Heads, and Directors1

University Budgets2

University budgets contain two key ingredients: Revenues Expenditures

Let’s discuss revenues and then expenditures.

Revenue Funds Glossary

Tuition & Fees: Includes fall, spring, summer, and winter tuition revenues, DELO distance learning and contract revenues, restricted tuition accounts, mandatory student fees, and other fees.

State Appropriations: For FY 10, includes regular state operating appropriations, budget reduction reserve, and debt service.

Restricted Grants & Contracts: Includes instructional, research, and public service funds received from federal, state, local, and private sources.

3

Revenue Funds Glossary (cont)

Restricted Student Financial Assistance: Includes financial assistance grants such as Pell Grants, KEES, and College Access Programs.

Net Asset Allocation: FY 09 carry forward funds budgeted in FY 10. These represent one-time funds.

Other Revenue Funds: Includes a wide variety of other fund sources such as indirect cost recovery funds, sales and services of educational activities, ticket sales, conferences and workshops, parking permits, etc.

Auxiliary Enterprises: Food and vending contracts, University Centers, commissions, housing, and bookstore revenues.

4

FY 10 Total Budgeted Revenue by Source

5

Public Funds (Tuition & Fees and State Appropriations) account for about 65 percent of WKU’s total budget revenues:

FY 10 Total Budgeted Revenue by Source

Source $ Amount % Amount

Tuition & Fees $142,338,000 40.73%

State Appropriations $ 83,371,600 23.86%

Res – Grants & Contracts

$ 25,319,000 7.25%

Res – Student Fin Aid $ 41,407,000 11.85%

Net Asset Allocation (CF)

$ 15,621,000 4.47%

Other $ 20,716,400 5.93%

Auxiliary Enterprises $ 20,672,000 5.92%

Total $349,445,000 100.01%

6

FY 2009-10 WKU Tuition & Fees7

Fall and spring registration fee tuition represent about 80 percent of WKU’s total estimated tuition and fees for FY 2009-10:

FY 2009-10 WKU Tuition & Fees

Tuition & Fees $ Amount

Fall Registration Fees (T) $ 58,858,000

Spring Registration Fees (T) $ 54,352,000

Summer Registration Fees (T) $ 8,541,000

Other Registration Fees (ELDP) (PMBA) (T)

$ 656,000

DELO Registration Fees (T) $ 9,186,000

Restricted Tuition Accounts (RTAs) (T) $ 3,345,000

Student Athletic Fee (MSF) (F) $ 6,144,000

Other Fees (F) $ 1,256,000

Total Tuition & Fees $142,338,000

8

FY 2009-10 WKU State Appropriations9

The Commonwealth of Kentucky has appropriated over $83 million to support WKU in FY 10. State Appropriations usually include operating funds and debt service funds. For FY 2009-10, WKU has set aside about $4 million of the operating funds as a state budget reduction reserve:

FY 2009-10 WKU State Appropriations

State Appropriations $ Amount

Regular Appropriation (Includes $4,012,300 which WKU set aside as a budget reduction reserve for FY 10)

$81,413,500

Debt Service $ 1,958,100

Total State Appropriations $83,371,600

10

WKU Budget11

The FY 2009-10 WKU Operating Budget contains three types of budgeted funds: Unrestricted E & G Funds Restricted E & G Funds Auxiliary Enterprises

Operating Budget Glossary

Unrestricted E & G: Most of the regular departmental and office budget indexes represent Unrestricted E & G budget funds.

Restricted E & G: These represent grant funds, including instruction, research, and public service grants as well as student financial assistance grants such as Pell Grants, KEES, and College Access Programs.

Auxiliary Enterprises: Campus service units that generate funds to sustain and grow operations such as housing and bookstore operations.

12

WKU Operating Budget Summary

The University’s total budget is made up of Unrestricted and Restricted Educational & General (E & G) funds along with Auxiliary Enterprises funds. About ¾ of the total University budget represents Unrestricted E & G funds:

13

WKU Operating Budget Summary

The University’s total budget is made up of Unrestricted and Restricted Educational & General (E & G) funds along with Auxiliary Enterprises funds:

Budget Category FY 2009-10 Budget

Total WKU Budget $349,445,000

Total E & G Budget $328,773,000

Unrestricted E & G Budget $262,047,000

Restricted E & G Budget $ 66,726,000

Total Auxiliary Enterprises $ 20,672,000

14

Unrestricted E & G Expendituresby Major Classification

15

About 57 percent of Unrestricted E & G expenditures represent personnel (salaries and benefits) expenses.

FY 10 Budgeted Expenditures (In Millions)

Major Classificatio

nUnrestricted Restricted Auxiliary Total

Personnel $148.2 $ 0.8 $ 7.0 $156.0

Operating $ 58.6 $24.9 $ 9.9 $ 93.4

Budget Reduction Reserve

$ 4.0 $ 0.0 $ 0.0 $ 4.0

Utilities $ 8.9 $ 0.0 $ 2.5 $ 11.4

Capital Outlay $ 5.3 $ 0.0 $ 0.8 $ 6.1

Student Aid $ 22.9 $41.0 $ 0.0 $ 63.9

Debt Service $ 14.1 $ 0.1 $ 0.5 $ 14.7

Total $262.0 $66.8 $20.7 $349.5

16

WKU FY 10 Unrestricted E & G Budget

17

WKU FY 10 Unrestricted E & G Budget

Org Area Regular Rev Dep Total $ Total %

Academic Affairs

$140,160,586

$13,762,000

$153,922,586

58.59%

Athletics $ 18,950,938

$ 18,950,938

7.21%

Campus Services

$ 29,102,238

$ 29,102,238

11.08%

C of S / GC $ 465,230

$ 465,230

0.18%

Finance & Admin

$ 5,889,681

$ 4,112,000

$ 10,001,681

3.81%

Information Tech

$ 11,701,893

$ 180,000

$ 11,881,893

4.52%

Institutional Adv $ 3,355,075

$ 3,355,075 1.28%

President $ 804,214

$ 804,214 0.31%

Public Affairs $ 2,043,421

$ 375,000

$ 2,418,421 0.92%

Research $ 2,556,036

$ 2,556,036 0.97%

Student Affairs $ 5,863,632

$ 159,000

$ 6,022,632 2.29%

University – Wide

$ 23,223,657

$ 23,223,657

8.84%

Total $244,116,601

$18,588,000

$262,704,601

100.00%

18