NORTH CAROLINA STATE UNIVERSITY

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NORTH CAROLINA STATE UNIVERSITY

• Budget and Budget Process

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NC Statutory Authority

• State Budget Act GS 143C-1-1 thru 143C-10-3
  http//www.ncga.state.nc.us/statutes/generalstatut
  es/html/bychapter/chapter_143.html
• Higher Education GS 116-1 thru 116-260
  http//www.ncga.state.nc.us/statutes/generalstatut
  es/html/bychapter/chapter_116.html
• Community Colleges GS 115D-1 thru 115D-97
  http//www.ncga.state.nc.us/statutes/generalstatut
  es/html/bychapter/chapter_115D.html

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UNC SystemAppropriations/Tuition per FTE
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BIENNIAL BUDGET REQUEST PROCESS

• Continuation Budget
• Expansion or Change Budget
• Capital Improvement Budget - Buildings major
  renovations

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BIENNIAL BUDGET REQUEST PROCESS

• Continuation (Annual) Budget
• General inflation and cost increases
• Salary benefits increases for classified staff
• Annualize prior years adjustments
• Tuition fee adjustment
• Enrollment Change Request (formulaic)
• Reserves for new facilities
• Replace vehicles motorized equipment

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BIENNIAL BUDGET REQUEST PROCESS

• Expansion Budget Request
• Academic Affairs
• Faculty Salary Increases
• STEM Initiative - Science, Technology,
  Engineering, Mathematics
• Center for Bioenergy Technologies
• Entrepreneurship Regional Economic Development
• Center for American Home Universal Design
• Create Research Centers in key areas of NC State
  expertise
• Parking Fines and Forfeitures to public schools
• Graduate Student Enhancement Initiative

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Tuition Fees

• NC Constitution, Section 9 Benefits of public
  institutions of higher education - The General
  Assembly shall provide that the benefits of The
  University of North Carolina and other public
  institutions of higher education, as far as
  practicable, be extended to the people of the
  State free of expense
• General Tuition Increases offset state general
  funds
• Campus Initiated Tuition Increases retained by
  University
• Fees are charged for dedicated purposes e.g.
  student health center, recreation athletic
  programs, student activities, athletic student
  support facility debt, etc.

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CAMPUS INITIATED TUITION INCREASE (CITI) Board
of Governors guidelines

• 6.5 cap on increase of tuition fees
• Cap is for 4 years starting in 2007-08
• Tuition to remain in lower quarter of peers

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2008-09 CITI INCREASE100 Undergraduate
Resident200 Undergraduate Non-resident2.3
million

• Hold need-based students harmless-60
• Faculty salary increase-25
• Faculty salaries-increase course offerings-15

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Mandatory Student Fees1,357 per academic year
Student Activity Fees - 364.50 Debt Service Fees
- 177.00 Intercollegiate Athletics -
126.50 Student Health Services Operations -
221.00 Transit Operations - 114.00 Educational
Technology Fee (ETF) - 354.00
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Additional Student Payments

• Tuition per academic year
• DVM - 9,212 Resident 31,975 Non-Resident
• CITI Professional Programs Management Design
• Fees per academic year
• Graduate Students - 11.00
• Engineering Computer Fee for majors - 90
• PGA Management majors - 400

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Educational Technology FeeApproved by BOG May,
1993
Replaced Lab Course Fees Supports Student IT
Services Laboratories Allocation of Receipts by
Provost ETF Committee recommends allocation to
Provost 2008-09 Budget is 9.8 million
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BIENNIAL BUDGET REQUEST PROCESS

• Capital Improvement Projects
• 2007-09 Request
• Repairs Renovations requested 124 million
• Major Projects 1.4 billion in 6 year plan
• Self-Liquidating - 105 million in 6 year plan

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Internal Budget Management

• Initial Allocation
• Academic Programs
• Other Institutional Support
• Compact Plans drive internal use
• Deans Vice Chancellors responsible, often
  delegated to department head or director
• Reserves
• University level for tuition shortfalls
• Utility overruns, large Tort Workers
  Compensation claims, emergency repairs, etc.

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University Budget Advisory Committee

• Appointed by the Chancellor
• Committee is Advisory to the Chancellor
• Purpose is twofold
• To develop a comprehensive understanding of
• the resource issues facing the University
• the context in which budgetary decisions are
  made
• Identify core values principles
• Composition of Committee reflects all areas of
  the academic enterprise academic affairs,
  research, extension and engagement, and student
  affairs.

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University Budget Advisory CommitteeMembership

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• Provost and Executive Vice Chancellor, Chair
•     1 Faculty Senator appointed by the Faculty
  Senate
• 2 Faculty appointed by the Provost
• Chair Past Chair of Chair-Elect of the
  Faculty
• Chair Chair Elect of the Staff Senate
• Senior Dean
• Chair of the Department Heads Council
• Vice Chancellors for
• o  Finance and Business
• o  Extension, Engagement,
  Economic Development
• o  Research Graduate Studies
  
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University Budget Advisory CommitteeCore
Principles

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• Transparent Budget
•     Budget should be tied to vision and mission
• Reductions should reflect mission, merit
  performance
• Budget Decisions should be based on vision
  goals
• All Faculty, Students, Staff should be able
  to offer input
• Committee should be source for receiving
  budget info,
• fostering campus understanding of budget, and
  offering
• advice to Chancellor and executive officers
• Committee also adopted principles for budget
  reductions, expansion, and efficiency
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Budget Reality

• Inflationary increases generally not funded
• Utility costs funded recently but not always
• Budget reductions one-time reversions have
  occurred in 9 of last 10 years
• 2007-08 it was 2.9 million continuing reduction
  (PACE)
• 117 million cut in last 10 years - 50 million
  was recurring
• Increases often limited to enrollment growth then
  funded with tuition increases budget cuts
• Received 5 million in 2007-08 for Engineering
• May receive un-requested funds

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Budget Outlook

• State Sales tax budgeted for 3-5 growth
• Running at 1-3 growth
• Corporate tax budget for 1-5 growth
• Running flat
• Payroll taxes are on target
• But today (April 15) is critical date
• Unknowns are recession drought