November 8, 2018
FY 2019 budget update
Dear K-State community,
The 20th day fall enrollment census was recently announced and the fiscal year 2019 main campus tuition revenue projection has been updated. The projected tuition revenue amount for FY 2019 is less than the amount allocated in the base budget by approximately $4.5 million. We will use university reserves of $2.1 million generated from one-time utility savings in FY 2018 to partially offset the loss of tuition revenue.
Therefore, we are implementing a one-time general use callback of $2.4 million to recover the difference in order to balance the budget. The callback will be implemented differentially between revenue and service centers funded with main campus tuition revenues. Revenue centers, units that generate tuition revenue, will be reduced .90 percent and service centers, those units that are supported from tuition, will be reduced 1.0 percent.
This methodology continues the differential reductions implemented last spring to establish the FY 2019 base budget. The budget office has provided the callback information to the president, provost, vice presidents, deans and unit heads.
Keep in mind, the actual spring tuition revenue calculations will not be completed until after the 20th day in February 2019. The shortfall estimate is provided to our unit leaders now so they can plan to cover the loss of tuition revenue within their departments. The FY 2019 tuition revenue amount will be finalized in February when we finalize student credit hour generation for the fiscal year. If necessary, the one-time callback may be revised and plans finalized as necessary.
Kansas State University continues to work to address the enrollment and budget situation. As Provost Taber and Vice President Bosco mentioned in a recent K-State Today article, the university is moving rapidly from discovery to implementation of our Strategic Enrollment Management Plan.
I want to recognize the many faculty and staff who continue to be committed to providing our students a quality education and a positive learning experience in a constrained resource environment. I want to thank all of you who are working to find new revenue streams as well as financial efficiencies and savings. If you have any questions regarding the university general use budget please contact me at cab@k-state.edu or Ethan Erickson at eerickson@k-state.edu.
Sincerely,
Cindy Bontrager
Vice President for Administration and Finance