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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