Budget Committee 2007-2008

Budget Committee

2007 - 2008 Members

  • Mark Strazicich, Chair ECO
  • Jammie Price SOC
  • Mark Mally TEC
  • Jeff McBridge HLES

Re: Budget Committee, Faculty Senate
Subject: Meeting with Tim Burwell, Vice Provost for Resource Management
Date of Meeting: April 18, 2008
Date of Report: April 24, 2008

Present: Mark Strazicich, Chair; Jammie Price; and Mark Malloy. Absent: Jeff McBride

Note: The following description of the budget process is provided as background and is copied from the report submitted by the Budget Committee last year (April 4, 2007).

Briefly describe how the budget process works. At the state level, there is a base or “continuation” budget. This bi-annual budget is based on state appropriations and tuition revenue. The state is currently planning a new two year budget. Some adjustments occur each year, mostly for faculty and staff salaries. There is also an “expansion” budget. This budget is composed of new money proposed by the Board of Governors and funded by the General Assembly. The General Assembly is not able to fund all expansion budget requests and sometimes cannot fund any expansion items. The current top operating priority in the expansion budget is for student financial aid. The second operating priority is to increase faculty salaries. The top capital priorities in the expansion budget are (1) funding for the College of Education building and (2) funding for an Allied Health building. The overall budget is approved by the General Assembly sometime between August and November. After ASU receives their budget, then funds are distributed to the different divisions (most goes to Academic Affairs). Our continuation budget is based on projections each fall (with some adjustments). We cannot carry over big monetary reserves. This year we had about 30 faculty positions in reserve. The UNC System uses a “matrix” formula to determine how many new faculty positions are allocated to the campus based on the growth in student credit hours in discipline and level. On campus, a separate matrix is used to help determine the total number of new faculty positions going to each college. It too uses changes in student credit hours (not the number of majors) along with other inputs from the departments to determine needs. The matrix has been in use for two years. The actual distribution of the new faculty positions within each college is determined by the Dean.

The meeting began at 3:05 pm. The following topics were discussed with Tim Burwell on April 18, 2007. 

1. During the past month, some extra funds have been distributed to the colleges at ASU. We will probably carry over some of this year’s funds into 2008-2009. The amount of funds to be carried over is approximately 1½ % of this year’s budget. The state of NC currently has a pretty good rainy day fund, so the state budget may be in better shape as compared to some other states. 

2. A total of 30 (net) new faculty positions will be requested for allocation on the Boone campus for 2008-2009. The position metric will allocate some of these new positions to the colleges. Other positions will be allocated by the Provost to fill special needs. Not all new faculty positions will be filled. This is the usual practice, as some faculty positions are held back to cover operating costs each year. Funds for new positions come from enrollment growth both on campus and at distant education locations. 18 additional new faculty positions will be requested for distance education sites in 2008-2009. ASU is forecasting significant growth in distance education, especially in Hickory.

3. Currently, the average faculty/teaching salary at ASU is approximately $73,000 without benefits, in terms of total dollars per full-time equivalent faculty. The full time equivalent number of faculty positions is calculated from all teaching positions on campus, including tenured, tenure-track, lecturers, visiting positions, adjuncts, and graduate stipends, etc.

4. Our average salary for Assistant and Associate Professors is at the 80th percentile of the medium of our peer group of institutions. We are still lagging behind the 80th percentile for our Full Professors, but hope to catch up in 2008-2009. Reaching the 80th percentile for average faculty salaries is a goal being undertaken throughout the UNC system. Each campus has its own peer group.

5. Expects a relatively good budget at ASU for 2008-2009, assuming that the state provides enrollment growth funding and does not subject us to significant budget cuts. In 2008-2009, we will also have a campus based tuition increase of 1.9 % for in-state tuition and 3 % for out-of-state tuition. (This is on tuition only and not fees.) The 2008-2009 ASU campus based tuition increase is expected to amount to a total of $939,000 in additional revenue. This revenue will be used for faculty salaries and benefits (50%), student financial aid (25%), and advising (25%).

6. The UNC system has requested an average faculty pay increase of 4% in 2008. This includes pay increases for all teaching positions. The average pay increase for tenured and tenure-track faculty would be greater than 4%.

7. Formulating the ASU budget is an on-going process. The Budget Committee (again) recommends an annual meeting with one or more senior administrators to explain and discuss the current budget and prospects for the upcoming year.

The meeting adjourned at 4:20 pm.

Respectfully yours,
Mark Strazicich

Chair, Budget Committee, Faculty Senate