Budget Presentation

December 7, 2006

Why Talk about the Budget?

1. Demystify the process2. Engage and get the participation

of others in the budget process3. Tie the budget into the Strategic

Plan4. Be able to see the big picture, not

just your particular area of responsibility

5. Future – Process to start earlier

What is a Budget? Replacement of error for what was once

chaos Your best guess of your operating needs

at a point in time A Budget is a plan that outlines an

organization's financial and operational goals. So a budget may be thought of as an action plan; planning a budget helps a business allocate resources, evaluate performance, and formulate plans

Faculty Handbook

Responsibilities of each division chairperson1) To assist in identifying budget needs

and in monitoring the annual budget of the division;

LEGISLATIONLegislation passed by the faculty at faculty meetings is reviewed for policy, personnel, and budget implications by the Vice President for Academic Affairs and the President.

Faculty Handbook (cont).

Division chairs and directors of certain areas of activities must submit budgets in the spring of each calendar year for operational purposes in the following academic year. These budgets may be utilized after final approval by the Board of Trustees at their fall meeting. Faculty members, therefore, must submit requests for major purchases to the respective chair. All requisitions must be countersigned by the division chair or approved designate.

Budget Details

The total tuition budgeted for FY 2006-07 decreased $576,181 from FY 2005-06 actual. Crete campus net tuition per student is $8,715, due to more financial aid given to students. This is in contrast to the net tuition of $8,962 per Crete campus last fiscal year 2005-06.

Financial aid increasing to 49% of tuition revenue and reflecting more scholarship aid to incoming and current students.

Budget Details (cont.)

A 5% endowment spending policy that contributes 1% more to the percentage of total income than last year, due to the continued growth in total endowment funds.

Spending for New Initiatives and Equipment of $215,000 has been budgeted toward Instruction, Information Systems and Institutional support. We will continue to fund requests on a priority basis and to the extent funds are available in the budget.

The proposed budget anticipates $160,490 in income over expenses.

2006-2007 BudgetOperating Revenues - $25,422,158

Tuition & Fees, 58%

Auxiliary Enterprises,

20%

Other Income, 2%

Endow ment Earnings, 15%

Annual Fund Gifts, 3%

Grants, 2%

2006-2007 BudgetOperating Expenses - $25,261,668

Auxiliary Enterprises, 19%

Instruction, 41%Academic

Support, 6%

Student Services, 12%

Institutional Support, 13%

Physical Plant, 7%

Transfers, 2%

Questions?