1

Board of Trustees

May 21, 2012

Operating Budget

Fiscal Year 2013

2

DiscussionDiscussion

‣Background– State funding of Higher Education and impact on CSM

– Revenue/Expense History

‣Fiscal Year 2013 Budget– Current Unrestricted Fund

– Designated, Restricted and Endowment Funds

– CSM Foundation Budget

3

Higher Education Funding

4

CSM State FundingCSM State Funding

5

Revenue HistoryRevenue History

6

Expense History – By FunctionExpense History – By Function

Expenses by TypeExpenses by Type

7

Fiscal Year 2013 Budget– Current Unrestricted Fund

– Designated, Restricted and Endowment Funds

– CSM Foundation Budget

8

9

Fiscal Year 2013 Proposed BudgetFiscal Year 2013 Proposed Budget

Current Unrestricted Fund Designated Fund

Current Restricted Fund

Endowment and Loan Fund Total

Revenue 149,600,000$ 14,500,000$ 74,100,000$ 1,100,000$ 239,300,000$

Expense 149,400,000$ 10,500,000$ 69,200,000$ 300,000$ 229,400,000$

Net Activity 200,000$ 4,000,000$ 4,900,000$ 800,000$ 9,900,000$

Fiscal Year 2013 Budget Proposal

Current Unrestricted Incremental Current Unrestricted Incremental Budget Summary Budget Summary

10

Fiscal Year 2012 Base Budget Surplus $2,600,000

Revenue Increases 12,150,000 Expense Increases 14,540,000 Net $210,000

Budget Request SummaryCurrent Unrestricted Fund

11

Current Unrestricted Revenue Current Unrestricted Revenue

‣Total Revenue projected increase of $12.1 million

Revenue BaseFY 13

Adjustments FY13 Budget

Tuition 88,500,000 9,700,000 98,200,000

State Funds 16,300,000 (500,000) 15,800,000

Continuing Education 2,500,000 500,000 3,000,000

Fees 3,600,000 700,000 4,300,000

Indirect Cost Recoveries 10,000,000 600,000 10,600,000

Undesignated Auxiliaries 13,400,000 1,400,000 14,800,000

Other 3,200,000 (300,000) 2,900,000

Total 137,500,000 12,100,000 149,600,000

12

Current Unrestricted Expense by Current Unrestricted Expense by Functional AreaFunctional Area

‣Total Expense projected to increase $14.5 million

Expense BaseFY 13

Adjustments FY13 Budget

Instruction 50,500,000 4,400,000 54,900,000

Research 3,500,000 100,000 3,600,000

Academic Support 15,300,000 1,900,000 17,200,000

Student Services 3,900,000 700,000 4,600,000

Institutional Support 10,800,000 500,000 11,300,000

Operations and Maintenance 19,500,000 1,200,000 20,700,000

Scholarship and Fellowships 12,200,000 2,400,000 14,600,000

Undesignated Auxiliaries 19,200,000 800,000 20,000,000

Capital Renewal and Replacement - 1,500,000 1,500,000

Operating Reserve - 1,000,000 1,000,000

Total 134,900,000 14,500,000 149,400,000

13

Current Unrestricted Fiscal Year 2013Current Unrestricted Fiscal Year 2013Expense by TypeExpense by Type

Expense Increases:New Academic Faculty (11 TTT; 3 mid-year hires) 1,130,000Deans for Colleges (3) 870,000New Classified and Non-Academic Staff 1,000,000Labor Increases - Fringe Benefit Increase/Annualization/ Merit Pool/PERA 2.5% increase 4,750,000New Buildings Operating and Labor 460,000Resident Financial Aid and Graduate Support – SB003 1,030,000Non Resident Undergraduate Financial Aid 1,520,000Non Resident Graduate Support 180,000Other Operating and Miscellaneous 1,100,000Capital Renewal and Replacement Reserve 1,500,000Operating Reserve 1,000,000Total FY 2013 Budget Requests $14,540,000

14

New Academic Faculty PositionsNew Academic Faculty Positions

‣11 new positions after retirements - $1.1 million (projection): Chemical and Biological Engineering - 1 FTE

Civil and Environmental Engineering – 1 FTE

Electrical Engineering and Computer Science – 1 FTE

Mining Engineering – 1 FTE

Applied Mathematics & Statistics – 1 FTE

Petroleum Engineering – 2 FTE

Physics – 1 FTE

3 FTE (TTT) other strategic and opportunity hires

15

Academic Faculty FTEAcademic Faculty FTE

FY07 FY12 FY12 FY13 FY14Actual Budgeted Actual Proposed Planned

Tenure/Tenure Track 171 202 181 211 220

Teaching Faculty 39 69 58 73 73

Total 210 271 239 284 293

Academic Faculty Headcount

16

New Expense RequestsNew Expense Requests

‣18.5 new non-academic faculty positions totaling $2,000,000 (salary and fringe): Academic ($1,200,000) – 7 positions

Student Support ($500,000)– 8 positions

Research Support ($200,000) – 1.5 positions

Continuing Education ($100,000) – 1.5 positions

‣New Building ($300,000) – 7.5 positions Maintenance

17

Salary & Benefit ActionsSalary & Benefit Actions

‣Salary Actions: FY 2010 – No classified or across the board faculty salary increaseso $500,000 equity pool set aside; $225,000 utilized

FY 2011 - No classified or across the board faculty salary increaseso $700,000 equity pool set aside; $600,000 utilized (1.6% of Faculty Salary)

FY 2012 - No classified or across the board faculty salary increaseso $1,300,000 equity pool set aside (3% of Faculty Salary)

FY 2013 - No classified or across the board faculty salary increaseso $1,700,000 equity pool set aside (3% of Faculty Salary with benefits)

‣Benefit Increases: FY2012o Faculty 1.5%o Classified 5.4%o 2.5% contribution of PERA reverts back from employee to employer

($1,400,000)

18

Undergraduate Financial AidUndergraduate Financial Aid

19

Graduate Student SupportGraduate Student Support

20

Budget Proposal – Other FundsBudget Proposal – Other Funds

*Includes new expenses of $130,000 for 1.83 FTE and operating for new building. See Appendix A for details.

Designated Fund*

Current Restricted Fund

Endowment and Loan Fund

RevenueFees 10,800,000$ Grants and Contracts 61,000,000$ Auxiliary 2,800,000$ Gifts 13,100,000$ Other 800,000$ 1,100,000$

Total Revenue 14,400,000$ 74,100,000$ 1,100,000$

Expense 10,500,000$ 69,200,000$ 260,000$

Net Activity 3,900,000$ 4,900,000$ 840,000$

Fiscal Year 2013 Budget Proposal

CSM Foundation BudgetCSM Foundation Budget

21

CSM Support*:

Legislative Relations Federal Legislative Services $140,000Colorado Legislative Services $110,000Travel - CSM Representatives $6,000

$256,000

CSM Alumni AssociationGeneral Support $180,000

General CSM Support

CSM President's Discretionary $400,000Marketing $100,000Provost $100,000S.V.P. Finance and Operations $10,000V.P. Student Affairs $10,000V.P. Research and Tech Transfer $10,000

$630,000

CSM Services $10,000

Total CSM Support $1,076,000

*Still under review – changes possible