The proposed budget for fiscal year 2011 includes building the university’s reserves, the implementation of phase 2 of the classified pay plan and pay raises for non-classified employees and faculty. But the budget remains tight as officials try to adjust to state cuts and place the university back on solid financial ground.
“It’s going to be status quo,” said Diane Newton, vice president of finance and administration. “It won’t necessarily be a good year next fiscal year. While the first run through of the FY 2011 preliminary budget showed a deficit of $2.4 million, it wasn’t unexpected. We had to build into the budget the transfers to reserves that had not been there in the past.”
While the preliminary budget is currently balanced, it didn’t come without sacrifice, Newton said. The proposed budget includes making the October and January cuts taken in this fiscal year permanent. Also, rather than using the FY2011 Stimulus money for projects, only a small percent will be dedicated to critical maintenance needs, all in housing, with the remainder being used to shore up the reserves.
“Because of the commitment by the campus community we expect to be able to add to the fund balances,” she said. “While not where they will need to be, they’ll at least be heading in the right direction.”
The goal is to build up an eight to nine percent reserve. Newton noted that it will take a several years to reach that level.
While the state restored some of the funding cut from this fiscal year for next year’s appropriation, state leaders also reduced the Educational Excellence Trust Fund by $273,000, Newton added.
“While the budget includes a modest increase of $1 per hour for tuition, that will only generate approximately $284,358 based on current enrollment,” she said.
Other contributing factors to the tighter budget include increases in property, liability, workers compensation and unemployment insurances and an increase to the university’s current budget for utilities.
The Phase 2 implementation of the classified pay plan will only affect 17% of the classified employees, Newton said. Others received their salary change in Phase 1 implemented for this fiscal year. The state currently has said no increases for classified employees.
The budget includes a proposed 2.5 percent pool for pay raises for non-classified and faculty, some of which will be across the board raises with the remainder for merit and equity, she said.
“Dr. Meadors is still committed to including a pay increase for non-classifieds and faculty as they have not received one in two years,” Newton said.