florida international university g-51 april 9, 2010
DESCRIPTION
FIU ASSUMPTION FOR FY STATE APPROPRIATIONS 3TRANSCRIPT
Florida International University
G-51April 9, 2010
STATE REVENUES
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STATE OF FLORIDAGeneral Revenue Forecast (millions) 2010-11
Funds Available (1) 23,631 Growth %
Base Budget (20,669) Critical Needs (2,828) Estimated GR Cut (FIU Assumption)Estimated Expenditures (2) (23,496) Growth %
ENDING BALANCE (Critical Needs)
135
% of Base Budget 0.7%High Priority Needs (1,709) Growth %
ENDING BALANCE (Critical Needs, High Priority Needs)
(1,574)
% of Base Budget -7.6%
FIU PLANNING ASSUMPTION % of High Priority Needs that will be funded 25%High Priority Needs (427) ENDING BALANCE (Critical Needs, and a % of High Priority Needs)
(292)
FY 0910 Balance Forward adjustment (-50%) (542)
Estimated GR Shortfall (GR Cut) (834) FIU Planning Assumption -4.0%
(1) Assumes a balance of $1,084 from FY 0910. Figures from Economic & Demographic Research - March 9, 2010 General Revenue Estimating Conference(2) EDR - September 15, 2009 Florida Long Range Financial Outlook (pg. 14-15)(3) Reduction %s do not consider impact of funding for Critical Needs that might be allocated to the University
No additional budget reductions expected in FY 10/11 outside of the approved 3 yr budget reductions submitted in prior years’ plans
2% Reduction Planned for FY 10/112% Contingency
FIU ASSUMPTION FOR FY 10-11STATE APPROPRIATIONS
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FIU BUDGET ASSUMPTION
SENATE PROPOSAL
(3.16)
HOUSE PROPOSAL
(3.16)
General Revenue 160.0 158.8 158.8 Ed Enhancement 21.1 21.1 21.1
FY 09-10 State Appropriations + Annualizations 181.1 179.9 179.9
PO&M for New Space 0.2 0.2 -
Restoration of Non-recurring Funds - 2.1 -
Budget Reduction (7.8) (11.1) (14.0) Includes Employee compensation and Benefit reduction proposed by the House
Add backs (targeted programs) 7.2 1.3 State Priority Areas and Florida Retirement System
Projected State Appropriations FY 10-11 173.5 178.3 167.1 % Growth -4.2% -0.9% -7.1%
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Tuition ForecastEnrollment
FTE24,412
FTE24,510
FTE25,201
FTE25,425
FTE26,534
Preliminary Budget
Base Forecast
FTE – Annual Count based on Fiscal Year (Fall, Spring, Summer) College of Medicine based on 2009-10 projections submitted to the BOGLevel mix projection is based on FY 2009-10 Forecast (Fall, Spring, Summer)
BudgetActuals
BUDGET ASSUMPTIONSTuition Fees
Undergraduate: 8% Increase
Graduate: 10% Increase
Law/COM: 15% Increase
Base Tuition
Differential Tuition Applies to Undergraduate tuition only
Rate Applies to new students as of Fall 2007 except students with prepaid contracts
Increase of 7% bringing us to a maximum of 15% increase per year including base tuition.
30% directed towards need based Financial Aid
70% to be used towards undergraduate education expenses
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Pending BOT/Legislature
Approval
BUDGET ASSUMPTIONSOther Fees
Health Fee Under consideration - Pending Committee Discussion
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Parking Fee Under consideration – Proposed 5% increase - Pending Approval
Activity & Service Fee Remains unchanged at $11.60 / Credit Hour
Athletics Fee Remains unchanged at $14.51 / Credit Hour
Aux Management Fee Increases to 6.5% from 5.5% except for Health and A&S which remain at 5%
Technology Fee Remains unchanged at 5% of Tuition
Control Totals to Colleges/Schools • E&G Budget control totals will be based on FY09-10 Final Budget adjusted for:
– Recurring and nonrecurring legislative line items
– Cuts for FY10-11, as approved in the 3-year Budget Reduction Plans, will be communicated during the budget process by EABMs
– Adjustments in critical investments and unfunded operations/obligations
Salaries• No University wide recurring salary adjustments assumed
– Departments should budget for individual salary actions
• Funding for new E&G positions approved based on Critical Investments & unfunded operations/obligations
• University will continue to use 50% salary float on vacant positions to mitigate impact
BUDGET ASSUMPTIONSExpenses
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PERSONNELPooled Fringe Benefit Rate - Rationale
Provides a simpler process for managing budgets• No change to employee benefit plans or enrollment• Actual benefits are difficult to determine and manage; Seven types (Health,
Life, Retirement, Social Security, Medicare, Workers Compensation, Unemployment Compensation) with multiple variable rates
Considered to be a best practice of leading research institutions• Reduces questions on specific benefits allowed under grant funding
Provides a more equitable method for paying out terminal leave• Last department of record is not burdened with terminal leave payout
Provides an opportunity to recover employee benefit costs currently funded and managed at the institution level, for example, Unemployment Insurance and Workers Compensation
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PERSONNELPooled Fringe Benefit Rate - Overview
FIU will implement a University-Wide Pooled Fringe Benefit rate effective the first full payroll after July 1, 2010 and it will be applicable to all departments and projects
• The hybrid rate currently in place for Sponsored Research projects will be replaced by and expanded to the University-Wide Pooled Fringe Benefit Rate
The Rate is calculated by developing an employee group rate, a pool of employee fringe benefit costs and dividing by the salaries and wages base for that group
The rate is then applied to the employee’s salary and wage to determine the employee’s benefit cost
Pooled Fringe Benefit Rate =Total Employer Paid Fringe Benefits
for Employee Group
Total Salaries and Wages
Employee Benefits = Pooled Fringe Benefit Rate x Employee Salary
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PERSONNELPooled Fringe Benefit Rate - Proposed Rates
Subject to final review and approval by the Department of Health and Human Services (external)
Employee Group Pooled Fringe Benefit Rate
Faculty / Administrative 29.39%
Staff 42.28%
Other OPS and Temporary Faculty 2.09%
Student OPS 0.12%
Cell-Phone & Miscellaneous Payroll Allowances and Other Earnings
7.65%
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PERSONNELPooled Fringe Benefit Rate - Process
Rates are calculated annually by the Office of the Controller, Human Resources, Office of Sponsored Research and Office of Financial Planning in advance of the coming fiscal year• Based on actual costs from previous fiscal year and includes under and over
recovery from that year
The rate is approved by the Department of Health and Human Services for use with grants and contracts
Approved rates are built into the budget and are applied from the beginning of the coming fiscal year• Units will be charged benefits at the approved pooled fringe benefit rate in
account 771950• Actual benefits (including payouts, workers compensation and
unemployment compensation) will be charged to a central fringe benefit pool department
• Employees will be paid salary and fringe benefits under normal payroll procedures. Actual benefits will be recorded in the detailed payroll ledger.
STIMULUS FUNDS
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