Purdue University Calumet

2009-2010 Budget Summary

2009-2010 Budget Summary Town Hall Report (PowerPoint)
September 22 & 23, 2009

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2009-2010 Budget Summary Memorandum
August 31, 2009 from Chancellor Howard Cohen

TO:	The University Community
FROM:	Howard Cohen, Chancellor
RE:	2009-2010 Budget Summary

Purdue University Calumet, in a situation historically unique to the current biennium, will experience both a budget cut and a budget increase in its 2009-2010 state appropriations.  The approved operating allocation from the state of Indiana represents a 4.2% cut in recurring funds.  State recurring funds support expenditures for such things as salaries, benefits, supplies and expenses and other continuing commitments. During this same time period, Purdue Calumet received an equivalent increase in one-time funds.  These funds can be used to make capital improvements or pay for expenses that are not ongoing. Given the current economic conditions of the state, it would be unrealistic to assume that the one-time funds will continue after 2011 or that we will recover the base budget reductions.   Consequently, we will be wise to establish a culture of conservation as we allocate our resources to best achieve our strategic objectives in the years ahead.

Following passage of the state appropriations bill, the Purdue Board of Trustees authorized a

Purdue University Calumet tuition rate increase of 5% for resident students and 6% for non-residents.  This decision was delayed until after conclusion of the special session of the Indiana General Assembly on June 30 which resulted in a two month delay in the normal planning cycle for such decisions.  While sensitive to the difficulty the increase might cause for many students, the Board thought it essential to protect the long-term financial integrity of the university.

A few detailed highlights regarding Purdue Calumet’s budget are shown on the attached sheets.  These allocations, both recurring and one-time, will allow the university to continue moving forward toward its strategic objectives even during these difficult financial times.  We will continue to closely monitor our use of resources to insure that we achieve the optimum benefit from every dollar available to us.

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Purdue Calumet Operating Budget

Revenue Source	2008-2009	2009-2010	Change
State Operating Appropriations	$ 28,212,704	$ 27,028,286	$(  1,184,418)
Tuition Revenue	44,051,589	47,544,309	3,492,720
Other	3,538,707	3,601,261	62,554
Total Revenue Change	$ 75,803,000	$ 78,173,856	$  2,370,856
Reallocation of existing budgets			1,245,800
Total Available Recurring Funds			$  3,616,656

State Operating Appropriations

• State operating funds were reduced by almost $ 1.2 million with one-time American Recovery and Reinvestment Act (ARRA) funds in an identical amount used to temporally offset the funds lost.  These ARRA funds will be available again in 2010-2011 (plus another $ 280,000 to offset additional state reductions in that year) but will be lost for 2011-2012.  Prudent management of university resources require that ARRA funds be limited to one-time uses only.

Capital Appropriations

• The legislature did not allocate construction funds for our Emerging Technology Building (Gyte Annex replacement) project.
• We will continue our planning activity for this building in anticipation of the construction funding being approved during the 2011 legislative session.

Tuition

• For new resident undergraduate students,  the per credit hour fee for 2009-2010 is $ 192.70.
• For new non-resident undergraduate students the new credit hour fee is $ 452.95.
• The tuition rate increases (for 2009-2010) will generate an additional $ 2.4 million in projected revenue and the 2.6% increase in enrollment an additional $ 1.1 million.
• The 2009-2010 budgeted enrollment level is still 1.1% below the actual enrollment for 2008-2009.
• Students will be required to pay student service fees and parking fees based on all credit hours taken—previously students were charged only for the first 12 hours.
• A complete listing of PUC’s fees can be found at www.calumet.purdue.edu/finaid/FEES0910.pdf .

Scholarships

• Scholarships and other student financial aid monies are funded from a variety of sources; university, state, federal, and private.  University funds were increased to keep pace with tuition rate increases. 
• Total financial aid from all sources are:

	Undergraduate	Graduate	Total
Budgeted Scholarships & Grants	$ 19,207,000	$  203,000	$  19,410,000
Institutional & Statutory Fee
Remissions	240,000	2,000	242,000
Loans	34,027,000	3,468,000	37,495,000
Employment & Employment-Related	2,495,000	3,058,000	5,553,000
Total	$ 55,969,000	$ 6,731,000	$ 62,700,000

Salary Adjustments, Benefits and Staffing

• In accordance with state leadership expectations and consistent with the policy across all Purdue campuses, we will be providing no general salary adjustments for university employees this year.
• Salary increases resulting from faculty promotions have been provided in the budget.  Staff promotions will be funded from existing departmental budgets when approved.
• Departmental  budgets to support  minimum wage increases for student workers have been increased by $ 40,000
• All increases in university employee benefits, $ 361,000, have been paid from university funds.  None of these increased costs have been passed on to employees.
• Employee parking rates remain unchanged.
• While a number of positions were eliminated as a result of lower recurring operating funds, no benefit-eligible employees were furloughed due to these budget reductions

Instructional Support Funding

Conversion of some Limited Term Lecturers to Continuing Lecturers positions	$ 250,000
Direct additional support for instructional lab operations	$ 208,000

(These funds will be allocated to departments based on approximately $ 5 per lab hour.)

Support of Academic Advising System	$ 80,000
Library Electronic Resources	$ 100,000

New Positions

The following new positions have been created to support our strategic goals on student retention and recruiting and to support growing needs on campus:

Counselor in the Student Counseling Center	$  50,000
Registered Nurse in the Student Health Center	$  40,000
University Police patrol officer	$  46,000
Information Access Specialist	$  55,00

The Specialist will assist all levels of management in having ready access to information critical for strategic decision making.

Employee Benefits and support

$  80,500

Strategic Planning Reserve

• $ 1 million in the recurring budget has been retained to address future strategic needs of the university.
• For 2009-2010, this will serve as a reserve of one-time funds to support unforeseen or critical needs to reduce the potential impact on departmental base budgets and to support additional staffing needed to support increased enrollment.

Other

Repair and Rehabilitation Recurring Budget	$  367,000
Year  1 of the 10 year Athletic expansion plan	$    77,000
Utilities and insurance	$  223,000
Fee Remissions	$  374,000

One-time Allocations

Using one-time allocations from ARRA funds and carry-forwards from regular university operations, we have planned the following one-time allocations:

Gyte Advising Center/Reference & Help Desk expansion	$    700,000
Classroom upgrades	$    300,000
Library facilities upgrades	$    250,000
Faculty computer renewals	$    450,000
Schneider Avenue (formerly Woodmar Clinic) renovation	$ 1,535,000
Alumni Hall Foyer renovation	$    100,000
Alumni Hall Ceiling renovation	$    100,000
Fitness Center Equipment	$      40,000
Vice Chancellor Special Projects Reserve	$    400,000

In addition to university funds, $ 1 million from a state revolving bond fund will be available for various energy savings projects on campus.   Additional funding from this source will be available in subsequent years.