From the Vice President for Finance and Management
The annual process to establish Buffalo State’s budget for core operations has been protracted this year, resulting from lengthy statewide discussions concerning the NY SUNY 2020 plan, including its rational tuition policy. Typically, SUNY’s Board of Trustees approves the annual SUNY financial plan by mid-May. That action occurred on June 30 this year for the fiscal year effective July 1, 2011, to June 30, 2012.
For information on NY SUNY 2020, please visit http://www.suny.edu/sunynews/News.cfm?filname=06-24-11RationalTuition.htm.
Translating SUNY’s 2011–2012 Financial Plan into operating budgets for the campuses has taken some time, but we are now able to share what this year’s fiscal landscape looks like for Buffalo State. We appreciate that new tuition receipts will assist us in planning and provide renewed opportunity to support students, continuing programs and new initiatives in ways that have not been possible in recent years. Ours will be a focused and deliberate path, leading from the fiscal uncertainties of the last four years to a period of intentional choices and program support by design. We will monitor the collection of tuition and other cash receipts vigilantly, as our budget will be—as it has been—dependent on these collections for balanced fiscal operations. In 2011–2012, however, we will again rely on cash reserves, in addition to receipts from enrollment beyond budgeted student enrollment, to bridge the gap in a budget totaling $85,146,200. The factor of drawing from cash reserves will loom even larger this year should enrollment at planned levels not occur.
Significant changes incorporated into Buffalo State’s 2011–2012 budget include the following:
- Rational Tuition Policy – The policy includes a $300 tuition increase for full-time, in-state undergraduate students; authorization is provided for five years of a $300 increase each year. New tuition revenue for Buffalo State, for budgeted enrollment of 9,004 FTE, is projected at $2.6 million.
- Tuition Credit for TAP – This is a new program implemented to mitigate the effects of the tuition increase for students receiving TAP; details are currently being addressed for the administration of this program. Buffalo State’s cost for this new item is projected at $648,200 and is expected to be the first claim on new tuition receipts in each year of the tuition increase, equivalent to 25 percent of new tuition receipts.
- SUNY Reduction of $164 million – Buffalo State’s assigned share of this reduction is $5,140,500.
- SUNY State Support Increase for “Costs to Continue” of $48.5 million – Funding for these costs includes contractual salary obligations, supply and energy inflation needs, and a share of the “Tuition Split” dollars associated with the spring 2009 tuition increase. Buffalo State’s assigned share of this increase in state support is $1,734,100.
- Salary Raise Costs – There are new costs in 2011–2012 resulting from the last round of actions included in prior-year contracts. Buffalo State has projected this need at $764,200 and must cover the cost fully since state support increases ($1,734,100) were absorbed by the assigned reduction ($5,140,500), creating a net negative of $3,406,400 for the campus.
- Buffalo State’s Two-Year Mitigation Plan – This campus plan to close a multiyear budgetary gap produced Year No. 1 reductions totaling $4,093,600, which have been implemented effective July 1, 2011. Some expenditures will continue but are designated for support from new revenue sources and/or other funds. Year No. 2 actions as specified by divisional executives are in review for implementation effective July 1, 2012.
- Academic Affairs Instructional Temporary Service (for adjuncts) – A projected need of $3 million is in addition to available budget ($374,500) and projected reallocations of personal service position savings ($2.1 million). In 2011–2012, it is expected that this supplemental need will be covered by drawing from prior years’ tuition cash reserves [SUTRA over-enrollment].
- SUTRA Over-Enrollment – This category includes tuition receipts, collected in previous years and the current year, for student enrollment that exceeds budgeted enrollment of 9,004 annual average FTE. For the first time, we have included a component in the annual financial plan to use current year over-enrollment receipts, and that amount has been projected at $2,587,600. It is also this component of the financial plan that will be affected immediately if projected enrollment levels are not met. Should enrollments not occur this year as expected, it will be necessary to draw additionally on available cash reserves, as well as review for reductions in planned costs.
- IFR Cash Reserves – As needed, a draw of up to $1,221,000 is initially authorized to support expenses in the current year financial plan.
Buffalo State’s 2011–2012 Budget/Financial Plan totaling $85,146,200 is predicated currently on revenue of $54,429,200 from budgeted student enrollment and other ancillary cash receipts, state support of $23,908,400, and use of SUTRA cash and IFR reserves of up to $6,808,600 to support this year’s expenditure level.
Additional details concerning the reconciliation for Buffalo State’s 2011–2012 Financial Plan, as well as July 1, 2011, departmental allocations, can be found on the Budget Office website.
As the state’s economic health has worsened and SUNY campuses have become increasingly dependent on tuition (rather than tax) revenues, the SUNY budget process has become increasingly complex, making it difficult for many in our community to discuss the subject with confidence. This has happened even as campuswide assemblies have been asked to examine how the budget can help support Buffalo State’s current and future priorities. I assure you that we anticipate the need to continue the conversations started last year regarding the fiscal health of Buffalo State, including how we can all contribute to the viability of ongoing programs and strategic initiatives.
In future discussions, we hope to demystify some of the current influences on this year’s budget and answer any questions you may have. To help us prepare responses to your questions, please send your questions to Rebecca Schenk, director of budget and internal controls. Your questions and comments will help guide a planned response as to how we discuss the budget this year.
Please contact me or Rebecca Schenk if you have any questions.
