University of Vermont

UVM FY 14 Proposed Budget

Staff Council's Update to UVM Staff

The Staff Council Compensation, Benefits and Budget Committee (CBB) would like to update staff on developments regarding UVM’s proposed FY 14 budget and highlight some of the more important components of general interest. The information that follows is from the proposed FY 14 budget that is set to be considered by the Board of Trustees during their May 17 and 18 meetings.

Throughout this past academic year, our committee has engaged in a number of discussions with Richard Cate, Vice President for Finance and Administration about the financial issues facing UVM in FY 14 and the coming years. We have greatly appreciated the opportunity to participate in the conversation about the priorities and the challenges before us.

The Budget, Finance, and Investment Committee (BFI) of the Board of Trustees met on Monday April 8, 2013. During the meeting, BFI reviewed the proposed FY 14 budget. Eric Hoefel and Tobey Clark, the two committee representatives appointed by Staff Council, participated in the meeting; Staff Council President Catherine Symans and Staff Council Administrator Jeff Bukowski attended the meeting as observers.

The following is a brief outline about the discussion that took place at that meeting

FY14 Budget Discussion:

  • The FY 14 budget has been balanced with the addition of $2 million from reserves and $5 million in expense reductions. Richard Cate noted that the cuts come from:
    • Approximately $1 million cut from deferred maintenance and equipment
    • There could be as many as three filled positions that are eliminated but final decisions are still pending
    • Other than the 10 Custodial Services positions that will not be filled as a part of the reorganization, there are about another five to seven FTE vacant positions that will not be filled. Final decisions are still pending.
    • Half a million dollars in custodial service cuts
    • Less matching funds dollars available for federal grants
    • Operational cuts in academic units
    • Cuts to the operating budgets of Athletics
  • The budget includes a 2.9% salary increase for non-represented staff
    • Concerns were voiced regarding the sustainability of the budget going forward
    • The President responded that discussions with Deans have begun around future budgets
    • The Provost stated the importance of increased revenue streams
    • The Committee Chair emphasized the need for flexibility

Debt Policy:

  • The Committee discussed the implications of allowing the 6% debt ratio as currently allowed by the University’s debt policy to remain in place rather than reducing it to 5% by 2017 as  previously approved. Keeping the debt ratio at the current 6% level would allow the University to issue additional debt to fund new initiatives.

In addition, more information was presented to business managers at the April Budget Finance and Administration Network (BFAN) meeting:

Planning Parameters:

  • State appropriation is forecast to remain at its current level of 40.7 million
  • Tuition rates will increase by 2.9% for both In-State and Out-of-State students. This means that tuition and mandatory fees will be $15,718 for Vermont students and $36,646 for Out-of-State students
  • Budgeting is based on having an undergraduate enrollment of 9,800 students, of which approximately 3,172 will be from Vermont and 6,628 will be from out-of-state
  • Research facilities and administrative cost reimbursement is forecast to see a 20.4% decrease. This is mostly due to sequestration.
  • The unrestricted endowment will increase by 5.5%
  • The benefit rate will be at 41.8%; 9.6% for temporary employees
  • Library acquisitions will realize a 2.1% increase
  • Operating and equipment budgets set to receive a 0.0% increase
  • Sponsored program incentive fund pool will see a 0.0% increase

Find more information about the FY 14 budget on the UVM Budget Planning website.

Additional information regarding the FY 14 budget is available on the Financial Analysis and Budgeting (FAB) website.

If you have specific concerns or questions about the FY 14 budget that you would like to raise with Staff Council in advance of the May 17-18, 2013 Board of Trustees meeting, please share those via e-mail to Staff.Council@uvm.edu by Tuesday, May 14, 2013. This will enable Staff Council to summarize and incorporate those thoughts in our address to the Board of Trustees scheduled for Friday, May 17, 2013.