Minutes of WKU Board of Regents special meeting to approve the operating budget and faculty/staff compensation report

WKU Board of Regents

TopSCHOLAR

MINUTES OF THE BOARD OF REGENTS WESTERN KENTUCKY UNIVERSITY June 18,2004 AGENDA ITEM 1 - Call to Order Required statutory notice having been given, a special meeting of the Board ofRegents of Western Kentucky University was held in the Cornelius A. Martin Regents Room of the Mass Media and Technology Hall on the Western campus. The purpose of the special called meeting was to approve the 2004-05 Combined - Operating Budgets and Faculty and Staff Compensation Report, FY 2004-05. The meeting was called to order by Vice Chair Martin at approximately I p.m., CDT. AGENDA ITEM 2 - Roll Call The following members were present at the location indicated: Ms. Kristen T. Bale Mr. John V. Bradley Dr. Robert L. Dietle Ms. Pat Jordan Mr. Cornelius A. Martin Ms. Forrest Roberts Ms. LaDonna Rogers Mr. James B. Tennill, Jf. • Ms. Gray, Mr. Fischer, and Mr. Sheffer were absent. Others in attendance included: President Gary Ransdell, Ms. Liz Esters, Secretary to the Board ofRegents and Staff Assistant to the President; Mr. Robert Edwards, Assistant Vice President for University Relations; Mr. Michael Dale, Assistant Vice President for Academic Budget and Administration, Mr. Tony Glisson, Director ofHuman Resources; Mr. Tom Hiles, Vice President for Institutional Advancement; Dr. Luther Hughes, Associate Vice President for Enrollment Information; Dr. Wood Selig, Director of Athletics; Ms. Robbin Taylor, Assistant to the President for Governmental Relations; and Dr. Gene Tice, Vice President for Student Affairs. AGENDA ITEM 3 - Recommendation for approval of the 2004-05 Combined _ Budgets and Faculty and StafT Compensation Report, FY 2004-05 REQUEST: Approval of the 2004-05 Combined Budgets and Faculty and Staff Compensation Report, FY 2004-05 . FACTS: The Western Kentucky University 2004-05 Combined Budgets contains the proposed e<:iperating Budget and Capital Budget. The Operating Budget includes Educational and General (E&G) and Auxiliary Enterprises revenues and expenditures. E&G revenue consists ofunrestricted revenue - - primarily state appropriations and tuition and fees - - and restricted revenue (e.g., federal funds for student financial aid and extramural funding for grants and contracts). Auxiliary Enterprises revenue is derived from the self-supporting activities ofthe University such as housing (reimbursed costs from the Student Life Foundation), food services, and bookstore operations. The Capital Budget provides a listing of major capital and lease/purchase projects, funding sources, and the current status of these projects. The Western Kentucky University 2004-05 Combined Budgets is the University's financial plan for the fiscal year beginning July 1, 2004 and ending June 30, 2005. The 2004-05 Operating Budget and the dollar and percent increases, over the original 2003-04 budget, are distributed as follows : 2004-05 Strategic Budget Priorities Western Kentucky University'S 2004-05 Operating Budget reflects the following strategic budget priorities (not in priority order) for the allocation of unrestricted funds : 1. 	 Recruit and retain quality faculty and staff. (Strategic Plan Goal 3) Funds are needed to provide salary increases in recognition of outstanding performance and to improve the market competitiveness of the University'S salaries and benefits. Assure academic quality, particularly in addressing enrollment growth. (Strategic Plan ~. Goals 1,2, and 4) Funds are needed for additional faculty and staff positions and for operational costs to address program and student support needs resulting from enrollment growth. 3. 	 Improve our physical resources. (Strategic Plan Goals 4 and 5) Funds are needed on an ongoing basis to address campus maintenance and utilities requirements and to protect the University's investment in plant. Funds are. required for facilities maintenance and utilities associated with opening the new science building. 4. 	 Provide permanent funding for needs that have been met routinely by nonrecurring allocations. (Strategic Plan Goal 5) Funds are needed for inflationary cost increases and continued implementation ofselected items that are in the University's Strategic Plan. Funds are to be allocated for items for which no permanent funding has been identified in previous budgets. These priorities and other Strategic Plan priorities are to be achieved through the allocation of projected increases in tuition and fees revenue, self-generated departmental revenue, and through reallocation of existing budgeted funds within divisions. e There are numerous other needs identified for which no funding or inadequate funding is available. Where feasible, additional funding will come from reallocations ofbudgets within divisions and carry forward funds (prior year balances) allocations. 2 Revenue Hi&hli&hts The largest source of revenue to Western Kentucky University is tuition and fees. The Operating Budget includes the projected revenue based on the 2004-05 tuition and fees rates and actual enrollment from fall 2003. Tuition and fees also include Correspondence Study Course Fees and Course-Specific Fees that are returned to the respective units. The budget includes total Educational and General tuition and fees totaling $81,651,000 which is an increase of$17,207,000 over budgeted 2003-04. Included in this increase is the Academic Quality (Phase I) restricted tuition revenue approved by the Board ofRegents and implemented in spring 2004. Within the Auxiliary Enterprises revenue, the budget also includes restricted tuition of$1 ,569,000 (an increase of$52,000) for Student Centers. Budgeted tuition does not include an estimate for Academic Quality (Phase II) based on the approved increase in tuition rates for spring 2005. A revision to the budget will be submitted to the Board ofRegents based on fall 2004 enrollment and historical fall-to-spring retention rate. The second largest source of funding for Western Kentucky University is from the Commonwealth of Kentucky. The 2004 General Assembly adjourned without passing a biennial budget. It is anticipated that Governor Fletcher will implement an emergency spending plan, ifthere is no budget for the start of the fiscal year. Given the current State fiscal outlook, the University's e FY 05 budget includes no increase in state appropriation. State appropriation will account for 30.5 percent of total E&G budget and 40.3 percent of the unrestricted E&G budget of the University. Tuition and fees revenue will account for approximately 36.2 percent of the total E&G budget and 47.8 percent of the unrestricted E&G budget of the University. The proposed 2004-05 Operating Budget includes the following projected tuition revenue available for allocation: Projected Tuition Revenue Increase $17,130,000 Less: State Appropriation Decrease Not Covered by Base Reduction (1,900,000) Projected Investment Income Decrease (145,000) Total Increases Available for Allocation $15,085,000 Proposed Allocations of Tuition Revenue Increase The proposed allocations are summarized by budget priority and the Strategic Plan Goals e addressed within Challenging the Spirit. Some items could fit under more than one budget priority or Strategic Plan goal, but each funding item has been placed in one category only. 1. 	 Recruit and retain quality faculty and staff. (Strategic Plan Goal 3: Assure high-quality faculty and stafl) In order to attract and retain faculty and staff, funds are needed to provide salary increases in recognition of outstanding performance and to improve the market competitiveness of the University'S salaries and benefits. Health Insurance Program 	 $33 J,OOO Workers Compensation Rate Increase 	 230,000 Three Percent Merit Pool and Three Percent Increase for Pool Budgets and Vacant Positions 2,600,000 Police Market Equity Adjustments 135,000 Quarterly Advertising, Vacant Positions ] 2,000 Faculty Promotions 37,000 KTRS/Optional Retirement Program, University Contribution 150,000 Purchase of Sick Leave for Retirement Service Credit, KTRS 50,000 Development Officer, College ofHealthlHuman Services 38,000 Subtotal $3,583,000 3 2. 	 Assure academic quality, particularly in addressing enrollment growth. (Strategic Plan Goall: Increase student learning, Strategic Plan Goal 2: Develop the student population, and Strategic Plan Goal 4: Enhance responsiveness to constituents) In order to assure academic quality, particularly in addressing enrollment growth, funds are needed for additional faculty and staifpositions and for operational costs to address program and student support needs resulting from enrollment growth. Funds are needed to meet the needs of new student populations especially through on-line learning. Summer School Program 285.000 Engincering Faculty Positions (pcnnancnt hmding) 239.000 Faculty Positions (pennanent funding) 190.000 Restrictcd Tuition Allocations 6.591.000 International Graduate Students Tuition Fcllmvships 71.000 Scholarships/Grants-in-aid 1,330,000 Division of Extended Learning and Outreach (DELO) 1,287,000 Owensboro Extended Campus, Modular Units Leasc 38,000 Disabled Student Services Program 54,000 Reduction of Phonathon Charge to 10 Percent 28,000 Subtotal 10,113,000 3. 	 Improve our physical resources. (Strategic Plan Goal 4: Enhance responsiveness to constituents and Strategic Plan Goal 5: Improve institutional effectiveness) In order to ensure timely and successful utilization of a major new academic (science) building, funds are required for facilities maintenance and utilities associated with the new building. As part of University's major effort to improve campus physical resources, funds are needed on an ongoing basis to address campus maintenance and utilities requirements and to protect the University's investment in plant. Parking and Transportation Plan Implementation 58,000 Facilities Rescrve 19,000 Utilities Rate/Utilization Incrs/Open Science Complcx (six mths) 498,000 Carlislc Property Paymcnts 14,000 Constmction Management Staffing (pcnnancnt funding) 150,000 Subtotal 739,000 4. 	 Provide permanent funding for needs that have been met routinely by nonrecurring allocations. (Strategic Plan Goal 5: Improve institutional effectiveness) Funds are needed for inflationary cost increases and continued implementation of selected items that are in the University's Strategic Plan. These funds will provide permanent funding for needs that have been met routinely by nonrecurring allocations. Loan Servicing System and International Tax Rcporting 11.000 Washington Contract 175.000 Workstudy FWlding 283,000 Shipping/Rcceiving, Moving Expenses 20,000 General Institutional Expcnses (central) 161,000 Subtotal 650,000 Total Proposed Allocations from Projected Tuition Revenue Increase $15,085,000 Capital Budget The Capital Budget includes anticipated capital projects that will be under way next year or are currently under way including the source of funding, estimated cost, and the status of each respective project. These authorized projects will address many of the projects identified in the University's Six-Year Capital Plan and the Deferred Maintenance Plan. At the time ofbudget development, the 2004 General Assembly had not enacted a biennial budget. The Capital Budget includes projects planned in anticipation that bonds will be authorized e during 2004-05. 4 Capital Budget Highlights The following high-priority capital projects were included in Governor Fletcher's proposed 2004­06 Biennial Budget. These projects mayor may not be initiated depending upon the final version of the 2004-06 Budget. Pending Legislative Authorization: State General Fund Bond Renovate Science Campus, Phase II $27,000,000 State General Fund BondfUniversity Funds Capital Renewal and Maintenance 3,269,000 Math and Science Academy 10,000,000 Agency Bonds South Campus Improvements 11,500,000 Student Health Services Clinic 4,000,000 Total $55,769,000 RECOMMENDATION: President Gary A. Ransdell recommends that the Western Kentucky University Board ofRegents approve the 2004-05 Combined Budgets and Faculty and Staff Compensation Report, FY 2004-05. Motion to approve the 2004-05 Combined Budgets and the 2004-05 Compensation Report was made by Ms. Bale and seconded by Mr. Tennill. President Ransdell summarized the budget recommendation and answered questions from the Board. Dr. Diede inquired about the total amount of the university'S long-term debt once this budget is approved. Although the answer to this question couldn't be immediately given, President Ransdell indicated that Western is one of the few universities in the nation that, year before last, Moody's raised debt rating because ofthe growing enrollment and the successful capital campaign . • A response will be provided to Dr. Diede's question. Ms. Bale's motion for approval passed unanimously. With no further business on the agenda, motion for adjournment by Mr. Tennill, seconded by Ms. Bale. The meeting adjourned at approximately 1 :20 p.m. 5 CERTIFICATION OF SECRETARY I hereby certifY that the minutes herein above set forth an accurate record ofvotes and actions taken by the Board of Regents of Western Kentucky University in a special rly meeting held June 18, 2004, in the Cornelius A Martin Regents Room in Mass Media and Technology Hall on the Western campus, and further certify that the meeting was held in compliance with KRS 61.810, 61.815, 61.820, and 61.825 (enacted as Sections 2,3,4 and 5 of House Bi11100, 1974 Regular Session, General Assembly). r&:.J-o~ (U;z;;;:' Efu%th W. Esters Secretary • Ctl¢uJ ~i4J&lt~cx.~/Cornelius A Martin Elizaeth W. Esters Vice Chair Secretary July 30, 2004 July 30, 2004 • 6 

Special Meeting

http://digitalcommons.wku.edu/cgi/viewcontent.cgi?article=1760&context=bor

Special Meeting

Abstract

Similar works

Full text

Available Versions

TopSCHOLAR