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Financial Services Newsletter

Brought to you by the Financial Services Division of  Kennesaw State University.

Volume 2, Issue 3 • June 2009 General Editor: Julie Peterson, MAcc, CPA Technical Editor: Susan Campbell, BA, MCSE

In this issue

ASaP

Auxiliary Services and Programs

Budget & Planning

Business Services

Also this month

Meet this highly-skilled KSU alum, people-person and artist, Student Accounts Manager Cathleen Kiss

Get to know the ASaP Wunderkind, KSU alum and musician, Meal Plan Manager Rob Nolen

Guest Columns

On a Lighter Note...

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Contact a member of your Financial Services Leadership Team

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Budget Update

by Dawn Gamadanis

FY2010 Budget:

The FY10 Budget was completed and submitted to the Board of Regents (BOR) on May 18th.

The budget included an additional 1% cut or a cumulative cut of 11.5%; however, the overall KSU FY10 budget increased by $16.5m. The sources of this increase in funding are as follows:

  • State Appropriation $2.5m
  • Federal Stimulus funding $4.4m
  • Tuition rate & enrollment revenue $4.6m
  • Institutional fee of $100/student $5.0m

KSU will use this funding primarily to support operations that have been impacted by our increased enrollment demand. KSU’s fall 2008 student enrollment increased by 4% over fall 2007 and spring enrollment increased by 4.5% over the prior year. We are anticipating a similar increase for FY2010.

Supporting this growth has been a challenge to KSU in light of the recent budget reductions. KSU suffered a loss in our state appropriations of $9.5M in FY2009 and another $1.2M in our FY2010 beginning budget.

To help lessen the impact of the budget reductions and meet the increased enrollment demand while maintaining a level of quality in our instruction and programs, KSU will utilize our FY10 funding in the following manner:

  • 35 Faculty positions
  • 31 Non-Faculty support positions
  • Restore some operating funds
  • Maintenance and Operation costs including additional positions in Facilities
  • Annualization of merit increases provided in January 2009
  • Increases in health and retirement costs

However, there are stipulations that must be followed or kept in mind on the utilization of some of this funding. In particular, the federal stimulus funds and the institutional fee are temporary sources of funds. The federal stimulus funding will be removed in FY12 and the institutional fee is only guaranteed currently for FY10. Therefore, KSU must identify permanent sources of revenue going forward to make up for the loss of these funds in the coming years. Strategically planning how we will allocate our resources is critical and essential to how well KSU will fare in FY12 and beyond.

More cuts for FY10 are probable. Therefore, we are encouraging department managers to continue to monitor their expenditures throughout the year. To help assist you in this manner, you will find that your budget and expenditure reports are available online through KSU Connect. These reports include budget information, encumbrances, expenditures, p-card, and AGS information and are updated nightly. For information on how to access your reports, please visit the "Frequently Asked Questions" page on the Budget & Planning website.