III. The FY 2019 Operating Budget Taking into consideration the drivers discussed earlier, along with the anticipated state allotment, below is the FY 2019 Budget compared to the preceding three years (FY16 and FY17 are actuals, FY18 is forecasted, FY19 is Budget). This data represents all operating fund groups and is portrayed as revenues and functional expenses.
% Change
FY 2019 Budget - Operating Funds
FY16 FY17 FY18 (F) FY19 (B)
FY17 FY18 (F) FY19 (B)
One takeaway from this data is that we are budgeting to realize lower net margin in FY 2019 than in FY 2018, although a more likely outcome is the same or more margin. The most significant contributor to this is wages and benefits, which are budgeted to increase at much higher rates than we have actually experienced. This is the result of budgeting position by position, without factoring in a vacancy rate. Each year we experience vacancies in positions as it takes time to recruit replacements and sometimes positions are held open for a period of time at the discretion of the appointing authority. In broad terms, across the university this equates to 1-2 percent of the university’s budget ($2M to $3M annually). Our budgeting system does have the capability to calculate a vacancy rate, and this will be considered in the future. Another way to portray the operating funds is by fund group. The chart below shows the preliminary results for FY 2018 compared to budget, as well as the FY 2019 budget compared to FY 2018 actual preliminary results. 196,631 204,431 215,473 223,211 4.0% 5.4% 3.6% 99,028 103,327 107,408 115,129 4.3% 3.9% 7.2% 30,886 32,788 34,664 37,311 6.2% 5.7% 7.6% Goods & Services 62,105 64,519 67,728 68,573 3.9% 5.0% 1.2% Total Expenses 192,019 200,635 209,800 221,013 4.5% 4.6% 5.3% Net Margin 4,612 3,796 5,672 2,198 -17.7% 49.4% -61.3% Wages Benefits Revenues
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