2009-10 Budget Training

1. 2009-10 Budget Training

2. 09-10 Critical Issues • State Budget Reductions • Eminent Scholars Match • Endowment Distribution • Endowment Fee • Implementation of Bi-weekly Payroll • Communications Services Billing • Salary and Fringe Benefits

3. State Budget Reductions • Oct 2007 - $9.2 million • Oct 2008 - $10.6 million • 2009-10 – expect another $12.4 million • 09-10 target will be reduced by 6.2% • New Budget Reduction Summary form

4. Eminent Scholar Endowment Match • Program established in 1964 • $2.8 million match in 2008-09 • Originally a $1-$1 match, now down to a few cents. • Governor has proposed elimination • We have submitted a budget amendment to restore • Will assume the state’s match is gone for planning • For SG-supported schools, University will phase out over 3 yrs.

5. Endowment Distribution • Policy: 4%-6% of endowment market value • 08-09: 5% of June 30, 2008 market value • Endowment is down 27% • 09-10: will we hit 6% ceiling? • BOV will do what it can to preserve current distribution • But units are advised to have a contingency plan in the event a reduction is necessary

6. Endowment Fee • 0.5% of prior June 30th market value • To partially recover cost of administering endowment • Half retained centrally, half distributed to owner • 08-09 distribution has been made • 09-10 most certainly will be less (27% less as of 12/31)

7. Bi-Weekly Payroll • All non-faculty employees will be converted to bi-weekly payroll on September 14, 2009. • There will be a shift of payroll costs from FY11 to FY10. • LD_Bi-Weekly Budget Impact will project the impact of the shift. • Targeted awards will be held harmless – ignore in budget development • Non-targeted awards need to consider

10. 09-10 Critical Issues

11. Communication Services Billing • Currently, billed on a per unit basis • 09-10, to be billed on a per headcount basis • Reflects that the charge is for all communications, not just a phone line. • Winners and losers – SG budget re-allocation will occur between units that are not self-supporting to make this budget neutral • Mock bill being developed by ITC.

12. Salary and Fringe Benefits • No salary increase in 08-09 or 09-10 • Projected fringe benefit rates, increased for healthcare and FICA cap: • FT Faculty and Staff-Executive: 28.6% • FT Staff: 40.8% • PT w/ benefits: 26.0% • PT w/out benefits, wages: 7.1%

13. Submission Requirements • Tuition and Fee Increases • Budget Submission Narrative • Planned Expenditures from Selected Fund Sources • Integrated System Budget Detail Entry • Budget Reduction Summary • Capital Reserve Projections • Addenda Requests – emergency needs only • Annual Renovation and Infrastructure Projects (ARIP)

14. Planned Expenditures from Selected Fund Sources

17. Submission Requirements • Tuition and Fee Increases • Planned Expenditures from Selected Fund Sources • Budget Submission Narrative • Integrated System Budget Detail Entry • Addenda Requests – emergency needs only • Budget Reduction Summary • Capital Reserve Projections • Annual Renovation and Infrastructure Projects (ARIP)

18. Budget Reduction Summary

19. Due Dates(w/ VP approval) • Jan 19: Application, activity fees • Feb 4: Mandatory fees • Feb 4 – 23: Auxiliary budgets • Feb 23: SCPS and ISO budgets; Darden, Law, SOM tuition • Feb 23: Planned Expenditures from Selected Fund Sources • Mar 16: Wise budgets • Mar 23: GL budget detail • Mar 31: All remaining items, including addenda and ARIP