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P E N N S Y L V A N I A S T A T E S Y S T E M O F H I G H E R E D U C A T I O N
P E N N S Y L V A N I A S T A T E S Y S T E M O F H I G H E R E D U C A T I O N
Spring 2014 Adjustments
Board of Governors’ MeetingApril 9, 2014
PASSHE Budget Update
Total Budget$2,183.7
Educational and General$1,562.4
Auxiliary$327.9
Restricted$293.4
2013/14 Total Budget$ in Millions
As of October 2013
Capital/Transfers$1067%
Salaries & Wages$79652%
Benefits$35323%
All Other Operating
$30720%
2013/14 E&G Expenditures and Uses$ in Millions
E&G Expenditures: $1,562
As of October 2013
2013/14 and 2014/15 E&G BudgetAs Presented October 2013 ($ in Millions)
Revenue/Sources FY 2013/14 % Change FY 2014/15 $ Change % Change
Tuition $839.1 0.6% $835.2 ($3.9) -0.5%Fees 180.7 0.6% 180.1 (0.6) -0.3%State Appropriation 412.8 0.0% 412.8 0.0 0.0%All Other Revenue 70.8 -4.2% 69.7 (1.1) -1.6%Use of Carryforward 59.1 557.7% 47.5 (11.6) -19.7%Total Revenue/Sources $1,562.4 3.5% $1,545.2 ($17.2) -1.1%
Expenditures and TransfersCompensation Summary:
Salaries & Wages $795.6 2.3% $822.7 $27.1 3.4%Benefits 353.2 11.6% 384.4 31.2 8.8%
Subtotal, Compensation $1,148.8 5.0% $1,207.1 $58.3 5.1%Noncompensation Summary:Utilities 34.1 3.5% 34.5 0.4 1.3%Services & Supplies 273.2 4.7% 278.4 5.2 1.9%Capital Expenditures & Transfers 106.4 -14.3% 93.8 (12.6) -11.8%
Subtotal, Noncompensation $413.6 -1.0% $406.7 ($6.9) -1.7%Total Expenditures and Transfers $1,562.4 3.3% $1,613.9 $51.5 3.3%
Revenue/Sources less Expenditures/Transfers $0.0 ($68.7)
Tuition, Fees$1,015.2
Funding Requirement
*Requires $7 million in university cost reductions.Note: Other includes miscellaneous revenue and use of carryforward.
Numbers may not add due to rounding.
$ in Millions
Appropriation$412.8
2014/15 E&G Budget Request $ in Millions
E&G Budget: $1,606.9*
Other$117.2
Request$0
$10
$20
$30
$40
$50
$60
$70
4% E&G Appropriation
$16.5
Assume Tuition Increase
Similar to CPI$27.3
Priority ProgramsLine Item
$18.0
$61.7
As of October 2013
05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15*
$200
$250
$300
$350
$400
$450
$500
$550
State E&G Line Items Federal Federal for 08/09 Mid-Year Cut
$ in
Mill
ions
18% Reduction
PASSHE Appropriations
*Based upon Governor’s recommended Commonwealth budget.
State AppropriationsRecent Funding History
AgendaEnrollment ProjectionsAnnualized Full-Time Equivalent
5,801 or
5.2% less than
10/11
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/1580,000
85,000
90,000
95,000
100,000
105,000
110,000
115,000
120,000
103,359105,566
109,637112,030
109,741106,977
104,589 103,815
7.3%lessthan10/11
As of October 2013
Revised Enrollment ProjectionsAnnualized FTE Students
2013/14%
Change 2014/15FTE
Change%
ChangeOriginal 104,589 103,815 (774) (0.7%)Revised 104,682 103,428 (1,254) (1.2%)Difference 93 0.1% (387) (0.4%)
Current enrollment projections reveal: Improvement for FY 2013/14 Greater reduction in 2014/15 enrollment
Revised 2013/14 E&G Budget$ in Millions
Revenue/Sources Oct. 2013 Apr. 2014 $ Change % Change
Tuition $839.1 $843.2 $4.2 0.5%Fees 180.7 181.7 1.0 0.5%State Appropriation 412.8 412.8 - 0.0%All Other Revenue 70.8 70.2 (0.6) -0.9%Use of Carryforward 59.1 83.6 24.5 41.4%Total Revenue/Sources $1,562.4 $1,591.4 $29.0 1.9%
Expenditures and TransfersCompensation Summary:
Salaries & Wages $795.6 $792.4 ($3.2) -0.4%Benefits 353.2 348.5 (4.7) -1.3%
Subtotal, Compensation $1,148.8 $1,140.9 ($7.9) -0.7%Services & Supplies 307.2 309.7 2.4 0.8%Capital Expenditures & Transfers 106.4 140.8 34.4 32.4%Total Expenditures and Transfers $1,562.4 $1,591.4 $29.0 1.9%
2014/15 Cost Drivers
CategoriesPercent Increase $ in Millions
Salary Adjustments* 3.1% $23.9Health Care 7.0%** $12.6
Revised Health Care $9.5Retirement*** 21.4% $18.2Consumer Price Index 3.0%
*Estimated cost of required adjustments based on a static complement. **Varies by health care program. ***Includes estimated PSERS/SERS rate change of 29%.
Projected Retirement Costs20
02/0
320
03/0
420
04/0
520
05/0
620
06/0
720
07/0
820
08/0
920
09/1
020
10/1
120
11/1
220
12/1
320
13/1
420
14/1
520
15/1
620
16/1
720
17/1
820
18/1
920
19/2
020
20/2
120
21/2
2
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
ARP SERS PSERS
32%
27% SERS Rates as % of Salary
2013/14 15.1%2014/15 20.0%2017/18 31.6%
2014/15 E&G cost increasefor SERS and PSERS:
$13 million
Tuition, Fees$1,015.2
Funding Requirement$58.6
*Requires $7 million in university cost reductions.Note: Other includes miscellaneous revenue and use of carryforward.
Numbers may not add due to rounding.
$ in Millions
Appropriation$412.8
Revised 2014/15 E&G Requirement$ in Millions
E&G Budget: $1,603.8*
Other$117.2
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