Buffalo State 2013/14 State Purpose Budget Overview Finance and Management September 20, 2013

State Purpose Budget Overview Determined by annual State budget process Allocated to campuses through SUNY budget model $83,939,800 in Two Components – State Tax Support and Revenue Target (primarily tuition revenue)

State Tax Support Overview State Taxpayer Funds  campus has little impact Decreases = State budget cuts $24,144,900 in and Increases = salary and inflation funding “Maintenance of Effort” under Rational Tuition Program per DOB = no increases or decreases

Tuition Revenue Overview Determined by enrollment and tuition rates Target enrollment levels determined by campus with SUNY approval $59,794,900 target in Tuition rates approved by governor/legislature as part of SUNY budget request Tuition is used to support State Purpose budget, with balance to campus SUTRA accounts

Tuition Overview Comparison of Total Tuition Revenue to Targets projected

Tuition Overview History of Total Tuition Revenue Start of Rational Tuition Program Estimated New Revenue: $3m / year Actual New Tuition Revenue: 2011/12 $1.5m 2012/13 $1.2m 2013/14 $.2m Three Year Total = $2.9m $6.1m less tuition revenue than projected

Enrollment History Undergraduate Student Headcount $3.04m less tuition revenue than projected at the start of Rational Tuition

Enrollment History Graduate Student Headcount $3.06m less tuition revenue than projected at the start of Rational Tuition

Comparison of State Purpose Revenues to Expenditures Budget Deficit

Budget Issues and Concerns Other revenue sources and reserves have been used to balance State Purpose deficits Budgets in units are higher than the budget we receive from the State (budget for savings of vacant positions in unit budgets) Inadequate systems to assist in monitoring budgets to actual activity Limited expenditure control

Approach to “right size” our Budget Bring our revenues and expenses into alignment Implement enrollment growth strategies for Fall 2014 Use reserves to cushion the impact and address critical needs this year only. We will reduce expenses this year Two strategies:  Grow revenues  Reduce expenses

How much will we cut and how will we do it? Implement position control Provide units with funding for $1.1m in negotiated salary increases from central sources Projected Expenditures = $84.7m Desired Expenditure Reduction = $1.6m Target Budget = $83.1m Monitor unit budgets against actual expenditures Establish a total campus budget that addresses ½ of the projected $3.2m deficit

Calculation of Revised Unit Budgets

Questions/Comments?