What is a balanced budget

1
What is a balanced budget?

• November 8, 2001

2
Financial Equilibrium

• Academic Affairs
• Student Affairs
• Business Affairs
• Auxiliaries
• Service Centers
• Models
• Every tub on its own bottom
• A rising tide lifts all ships in the harbor

3
Sources of Funds

• State Appropriations, General Revenue
• Net Tuition and Fees
• Investment Income
• Auxiliary Enterprises
• Contracts, Gifts, and Grants
• State Appropriations, HEF
• Sales and Services

4
Uses of Funds
5
Financial Equilibrium
6
How do you increase operating revenues?

• State Appropriations
• Formula Funding
• Line item Funding
• Net Tuition and Fees
• Rates
• Growth
• Investment Income
• Rate of Interest
• Amount of Principal

7
Potential New Sources of Recurring Funds in FY 03

• Increase tuition
• Statutory tuition will increase 2 per hour
• Designated tuition 1/SCH 170,000
• Increase Fees
• Student Services 100 increase 2 million
• Incidental fees
• Laboratory fees
• Distance Education fee
• Library fee
• Life Safety Surcharge
• Sustained growth in enrollments beyond budget

8
How much do you increase tuition/fee rates?

• Cover cost increases and mandates
• Recurring needs
• One-time needs
• Charge for excellence
• Recurring wants
• One-time wants
• As much as possible but be competitive
• Whatever the market will bear

9
Proposed New Recurring Uses of Funds in FY 03

• Institutional Scholarships 1 million
• Capital Campaign operations 700,000
• Additional Faculty hires 300,000
• Utility Deregulation 125,000
• 3 Pay Increase 450,000-900,000
• Continuation of Marketing Program 250,000
• Engineering Program(s)

10
Proposed New Recurring Uses of Funds in FY 03

• Other Program Growth
• Academic Affairs
• Student Affairs
• Business Affairs
• Dallas Cowboys Training Camp
• Interim Financing of the Science and Technology
  Building
• Replace lost Contracts and Grants

11
How can the budgets be balanced?

• Increase total tuition and fees by a reasonable
  amount
• Use new funds for balance among sectors and among
  restricted budgets
• Add to or maintain reserves in all budgets
• If possible, choose and fund a center for
  excellence, focus on another when able
• Establish and follow a multi-year plan
• Teamworkgenuine teamwork

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Business and Administration Division

• Our mission is to provide the best possible
  environment for the student and teacher to come
  together and have a positive learning experience.
  Our goal is to make the highest and best use of
  our limited resources.