Central RC-Len Cullo, VPFA Purpose – The Central RC, unlike the other support RCs, is a budgeting construct where we provide for costs that are unavoidable or that are not easily budgeted at the RC level. Composition -The Central RC has no control over its revenue flows; the budget deficits can only be addressed through reductions in costs. Each of the academic and support RCs are consumers of costs that are budgeted at the Central RC. For the most part, reductions in costs funded out of the Central RC will impact the operations of the other RCs.
Central RC - Financial Outlook E&G General Original Budget FY 2015-16 Budget Request FY 2016-17 FY 2017-18 Revenue 152,500 130,520 120,520 Personnel Expense 1,899,611 1,755,032 Non-Personnel Expense 5,702,628 5,851,770 5,598,770 Net Budget Request 7,499,739 7,308,242 7,186,832 Increases/(Decreases) to FY16 Original Budget 21,980 31,980 (297,619) (296,549) 84,142 (168,858) Total Change to FY16 Original Budget (191,497) (433,427)
Central RC Breakdown of Expenses – FY17 Budget E&G General FY 2015-16 FY 2016-17 PASSHE CHARGES: $1,074,500 $ 1,084,500 PASSHE CHANCELLOR'S ALLOCATION (.5% TAX) $210,000 $225,000 $235,000 PASSHE LEGAL SERVICES $215,000 PASSHE LABOR RELATIONS $40,000 PASSHE PAYROLL AND HR SUPPORT $115,000 $100,000 PASSHE CONSTRUCTION SERVICES $76,500 PASSHE ADMINISTRATIVE SUPPORT SYSTEMS (SAP) $668,000 TRANSFER IN FUNDS FROM TECH FEE $(250,000)
Central RC continued Breakdown of Expenses – FY17 Budget E&G General FY 2015-16 FY 2016-17 FY 2017-18 CENTRALLY BUDGETED COMPENSATION EXPENSES: $2,419,287 $2,119,284 $2,119,692 UNEMPLOYMENT & WORKERS COMPENSATION $350,000 $245,000 EMPLOYEE TUITION WAIVERS $749,892 $699,892 LEAVE PAYOUTS $746,323 $646,323 SICK LEAVE REPLACEMENT $103,241 $54,718 $54,835 PROMOTIONS $124,831 $128,351 $128,642 HEALTH CARE RESERVE (PASSHE – MANDATED) $345,000 NET UTILITIES $1,551,714 $1,553,700 UTILITIES $2,600,849 $2,603,700 UTILITIES CHARGEBACKS $(1,049,135) $(1,050,000)
Central continued Breakdown of Expenses – FY17 Budget E&G General FY 2015-16 FY 2016-17 FY 2017-18 OTHER CENTRAL EXPENSES $2,606,738 $2,691,278 $2,428,940 RHEA LUMBER LEASE $138,000 $140,000 DEBT SERVICE $725,070 $462,070 BAD DEBTS EXPENSE $800,000 CENTRAL FISCAL SVCS (AUDIT, BOND, COLLECTION, CASH MANAGEMENT, CREDIT CARD FEES) $275,000 $248,500 STUDENT WAGES - GRANT FUNDED $(220,000) INSURANCE, BACKGROUND CHECKS $187,324 $192,708 $193,370 ADMINISTRATIVE CHARGEBACK $(122,200) $(95,000) CAPITAL CAMPAIGN CONTRIBUTION $23,544 $0 E&G SCHOLARSHIPS $750,000 $900,000 CONTINGENCY $50,000
Central RC continued Breakdown of Expenses – FY17 Budget E&G All Other FY 2015-16 FY 2016-17 FY 2017-18 OTHER RC GENERATED REVENUE (interest, healthcare rebates, rent, fees) $152,500 $130,520 $120,520 TOTAL E&G EXPENSE $7,652,239 $7,438,762 $7,186,832 TOTAL BUDGET REQUEST $7,499,739 $7,308,242 $7,066,312 Year over Year Increase/(Decrease) ($191,497) ($241,930) Accumulated Increase/(Decrease) ($433,427)
Central RC – Budget Realignment Eliminated Central contingency amount Reduced centrally budgeted compensation Unemployment Compensation Workers Compensation Tuition Waivers Leave Payouts Sick Leave Health Insurance
Central RC – Highest Priority Activities We achieved substantial savings in the following areas: Utilities Bad Debt Expense Rental Expense Reduction Cash Management and Credit Card Fees PASSHE Charges Space Utilization