1. Budget Presentation
December 7, 2006

2. Why Talk about the Budget?
Demystify the process
Engage and get the participation of others in the budget process
Tie the budget into the Strategic Plan
Be able to see the big picture, not just your particular area of responsibility
Future – Process to start earlier

3. What is a Budget? Replacement of error for what was once chaos
Your best guess of your operating needs at a point in time
A Budget is a plan that outlines an organization's financial and operational goals. So a budget may be thought of as an action plan; planning a budget helps a business allocate resources, evaluate performance, and formulate plans

4. Faculty Handbook Responsibilities of each division chairperson
To assist in identifying budget needs and in monitoring the annual budget of the division;
LEGISLATION
Legislation passed by the faculty at faculty meetings is reviewed for policy, personnel, and budget implications by the Vice President for Academic Affairs and the President.

5. Faculty Handbook (cont).
Division chairs and directors of certain areas of activities must submit budgets in the spring of each calendar year for operational purposes in the following academic year. These budgets may be utilized after final approval by the Board of Trustees at their fall meeting. Faculty members, therefore, must submit requests for major purchases to the respective chair. All requisitions must be countersigned by the division chair or approved designate.

6. Budget Details
The total tuition budgeted for FY decreased $576,181 from FY actual. Crete campus net tuition per student is $8,715, due to more financial aid given to students. This is in contrast to the net tuition of $8,962 per Crete campus last fiscal year
Financial aid increasing to 49% of tuition revenue and reflecting more scholarship aid to incoming and current students.

7. Budget Details (cont.)
A 5% endowment spending policy that contributes 1% more to the percentage of total income than last year, due to the continued growth in total endowment funds.
Spending for New Initiatives and Equipment of $215,000 has been budgeted toward Instruction, Information Systems and Institutional support. We will continue to fund requests on a priority basis and to the extent funds are available in the budget.
The proposed budget anticipates $160,490 in income over expenses.

10. Questions?