Budgetary Terms State General Fund (SGF) - State funds appropriated by the Legislature General Fees - Student Tuition General Use Funds (GU) - Funds that comprise K-State’s Unrestricted Base including State General Fund, General Fees, hospital revenue & certain federal appropriations in Research & Extension

Budgetary Terms Restricted Use Funds (RU)- revenue dedicated for specific purposes, i.e., grants and contracts, gift income, sales and service and sponsored research overhead (SRO) HEPI – Higher Education Price Index (a measure of inflation for higher education) Block Grant – How State General Funds are distributed to the universities

FY 2010 Budget Timeline June 08 - BOR Sets initial guidelines September 08 - Budget submitted to the State January 09 - Governor/Legislature begins Tuition discussions begin February 09 - Meet with Deans and Unit Heads April/May 09 - Legislative action solidifies Tuition plan presented to BOR May 09 - Budget finalized and distributed to campus June 09 - Legislature and BOR complete action BOR uses HEPI to generate System-wide request K-State appears before Ways and Means and the House Appropriations Committee to highlight K-State needs and value to the state April/May – The level of funds we have to distribute is determined (new SGF/Block Grant and tuition revenue) . We also determine the cost of legislatively prescribed salary and fringe benefit rate changes. Additional funds not used for salary and fringe benefit increases is typically applied to library funding, faculty salary enhancements, need based aid, utility increases and other targeted areas of need (determined by President’s staff). Theegislatively prescribed salary and fringe benefit rate changes and available SGF and tuition revenue is determined. Revenue not used to fund salary and fringe benefit increases is applied to priority needs (library funding, faculty salary enhancements, need based aid, utility increases and other targeted needs)

FY 2009 BUDGET BY FUND Grand Total $731.9 Fund Source Millions State Appropriations (Main Campus, R & E, Vet Med) $ 185.2 Student Tuition (Main Campus, Vet Med) 142.7 Hospital & Diagnostic Lab (Vet Med) 5.3 Federal Land Grant Funds (R & E) 8.8 Gifts, Grants, & Contracts 295.2 Auxiliary Enterprises 39.0 Service Clearing 23.4 Local Agencies 32.3 Grand Total $731.9 GU $342.0 RU $389.9

FISCAL YEAR 2009 GENERAL-USE BUDGET (millions of dollars) Salaries OOE TOTAL Main Campus $186.4 $60.6 $247.0 Vet. Med. Center 23.9 5.9 29.8 Research & Exten 57.7 7.5 65.2 Grand Total $268.0 $74.0 $342.0 Pct. of Total 78% 22% 100%

FY 2009 General Use Funds by Sub-agency SGF Other GU Total Main Campus $117.2 $129.8 $247.0 Vet. Med. Center 11.6 18.2 29.8 Research & Exten 56.4 8.8 65.2 Grand Total $185.2 $156.8 $342.0 Pct. of Total 54% 46% 100%

Governor’s Recommendations 3% SGF reduction in FY 2009 7% (an additional 4%) SGF reduction in FY 2010 Moratorium on selected fringe benefit costs in FY 2010 with savings transferred back to the State 1% salary adjustment in FY 2010 with no funding provided Year 2 of classified pay plan adjustment with some funding provided ($8.5 million statewide) in FY 2010

Governor’s Recommendations Selected reductions of other FY 2010 Higher Ed initiatives (Aviation infrastructure, Graduate Medical Education, Academy of Math and Science, KU pharmacy funding) The Governor’s budget will not be adopted (it’s based on November estimates) December revenues were down $50 million Another estimate will be made in April

FY 2010 Considerations Significant new base funding needed for utilities Possible enrollment loss because of decreased scholarship funding and the economy’s impact on families Limited potential for tuition rate increase Fringe Benefit Rate Change ($1.4 million)

FY 2010 considerations Mandated 1% salary increase ($2.5 million at K-State) Classified pay plan funding (last year’s cost was $900k) Commitments to professorial performance enhancements and promotion increases ($600k)

FY 2010 considerations Commitment to operate and pay for the BRI Funding committed until building is self-sufficient ($2 million current year – NBAF may contribute) Funding needs for other existing or potential commitments (e.g. Childcare Center) Possible loss of federal earmark funds (NABC, College of Ag, Security Studies, etc.)