Tuition, state funds contribute to larger FY15 budget

Iowa State's  General Fund budget for the year that begins July 1 will contain nearly $49 million in additional revenue above the budget for the current year. When it meets next week in Ames, the state Board of Regents will review amended FY14 budgets and get a first look at FY15 budgets. Final approval for the FY15 budget is expected at the board's Aug. 6 meeting.

The largest piece of the $48.81 million new revenue pie is an estimated $37.2 million in additional tuition. While resident undergraduate tuition will remain constant for the third year in a row, increases for resident graduate (1.81 percent), nonresident undergraduate (1.74 percent), nonresident graduate (3.2 percent) and all veterinary medicine (4.5 percent) students, and a student body expected to surpass 34,000 will generate additional revenue. Another key piece is state appropriations, nearly $7 million more in the general university appropriation and nearly $2 million more in funding specifically for the Ag Experiment Station ($1.77 million), Veterinary Diagnostic Laboratory ($237,364) and Small Business Development Center ($101,000).

Iowa State's requests for additional line item funding for extension and the research park were not fulfilled. State funding for FY15 is not guaranteed until Gov. Terry Branstad signs the appropriations bills.

In total, the additional revenue represents an 8 percent increase to the FY14 general fund budget, and brings the FY15 general fund budget to just under $660 million. The general fund (or operating) budget makes up about half of Iowa State's total annual budget, which exceeds $1.2 billion. Other pieces of the overall budget include financial gifts, sponsored funding, Ames Laboratory and auxiliary units such as athletics, residence, parking and utility systems.

Incremental revenue increases

*Estimated, for Ag Experiment Station, Cooperative Extension

State funds for building projects

FY15 will include the final $18.6 million in state funds for Sukup and Elings halls, the new home of the agricultural and biosystems engineering department. State funding for the project over four years totals $60.4 million. The project also relied on $14.1 million in private gifts.

Iowa State also will receive $2 million from the state in FY15 to begin plans for a new biosciences facility and addition to Bessey Hall. The state commitment to the biosciences project is $52 million over four years.

How it will be used

Leaders will use nearly $13.4 million for employee compensation, including $4.72 million for professional and scientific staff reclassifications, spouse accommodations and increases associated with faculty promotions. The state insurance plan, which covers most ISU merit staff, will cost Iowa State another $685,000 next year. The ISU Plan, which covers faculty and P&S staff, is performing efficiently and the university's cost is expected to remain flat in FY15.

This summer, employees are moving into Sukup and Elings halls, phase 2 of the biorenewables complex and home to the agricultural and biosystems engineering department. It will cost an estimated $1.64 million annually to operate those facilities.

Approximately $9.1 million of $31.35 million targeted for strategic priorities will be used for additional student financial aid. The remaining $22.25 million will be allocated to the four divisions in this breakout:

• Academic affairs: $18.69 million
• Business and finance: $1.31 million
• Student affairs: $0.90 million
• University administration: $1.35 million ($700,000 to be used for faculty recruitment)

The funds are to be used in ways that address President Steven Leath's four university priorities: maintain academic excellence, enhance our basic and applied research footprint, promote economic development, and improve the campus environment. Under these broad umbrellas, funds also will be used to implement recent recommendations of the president-appointed Committee on Enhancing Institutional Excellence or the Student Experience Enhancement Council.

In preliminary FY15 budget planning, the three senior vice presidents and the president proposed more than $42 million in strategic uses for new funds. They have an internal June 13 deadline to pare down their proposals to match their allocations or reallocate within their budgets to pay for new initiatives.

Allocating new revenues

*Inflationary increases on utilities, city services, software licenses, library journals, insurance, etc.
**Faculty promotions, P&S reclassifications, spouse accommodations