Fiscal Years 2014 and 2015 Budget Highlights
Tuition and Mandatory Fees: 2.9% increase for FY14 and FY15
- All Enrollment Categories: 2.95% increase for FY14 and FY15 except continuing MBA and graduate business.
- Continuing MBA and Graduate Business: 5.0% increase for FY14 (pricing discontinued after FY14).
- New MBA and Graduate Business: standard graduate rates apply effective FY14.
- Summer: Academic year 2012-2013 rate for FY14 and 2.95% increase for FY15.
- Summer Continuing MBA and Graduate Business: 5.0% increase for FY14 (pricing discontinued after FY14).
Residence Halls: Increases of 1.5% for double occupancy and 2.5% for single and triple occupancy each year.
Meal Plan: 2.2% increase each year.
Parking: No Increase for FY14 and FY15.
New Revenue Initiatives: $250,000 in FY14 and $2.75 million in FY15 through new programs and program enhancements in the School of Professional & Extended Studies, School of Public Affairs, and College of Arts and Sciences.
Investment Income: Increased $250,000 to total $5.25 million in FY14 and another $500,000 to total $5.75 million in FY15.
Endowment Income: Increased $1 million to total $4.2 million in FY14 and another $250,000 to total $4.45 million in FY15.
Faculty and Staff Salaries: $3.6 million for a 2.5% performance-based salary pool and benefits for faculty and staff effective September 2013, and another $3.9 million for a 2.5% pool effective September 2014. No market adjustment pool is set aside for staff salaries as benchmarking analysis indicates average staff salaries are above the market median. However, adjustments to staff salary compensation bands will be implemented over three years beginning in FY14.
Full-time Faculty: $1.1 million to hire three new tenure-track faculty in FY14 and four additional in FY15 to enhance instructional resources. $400,000 in FY14 and an additional $400,000 in FY15 to adjust faculty salaries in response to market pressures, special opportunities, and retention efforts.
Term Faculty: $864,000 over two years to provide permanent funding for current term faculty and new term faculty. $150,000 in each year for promotions and salary adjustments in response to market.
Adjunct Faculty: $200,000 earmarked in FY15 for adjunct faculty compensation.
Staff: $3.3 million over two years for salaries and benefits for 17 new full-time staff positions to accommodate the university's program expansion efforts and 20 continuing from new program initiatives such as three-year BA programs, academic technology training, high performance computing, and virtual student services implemented in previous years.
Faculty and Staff Benefits: $1.5 million over two years to fund the university's compliance with the new health care regulations effective January 2014. $2.75 million over two years to provide competitive benefit offerings to attract and retain high-quality faculty and staff, and to expand the university's health benefit subsidy to include additional employees.
Financial Aid: $7.4 million over two years to match the undergraduate enrollment increase and index to the tuition increase, and an additional $500,000 each year to meet increasing financial need. $1.77 million over two years to enhance diversity by providing financial support to low-income students to participate in study abroad or other enrichment programs, fund additional Frederick Douglass Distinguished Scholarships, and support students who participate in the Washington Internships for Native Students program. Undergraduate financial aid funding is planned to be at the 30% level in FY14 and FY15. Graduate financial aid will increase $1.6 million over two years to match the enrollment increase, index to the tuition increase, and fund PhD dissertation fellowships.
Supplies and Expenses: A wide range of initiatives to improve the quality of programs and respond to external environmental factors, including: expanding three-year BA programs; student participation and travel in living-learning communities, research, and service activities; continued support for research centers and institutes; and initiatives to advance the President's Climate Plan commitment.
New Housing Facilities: $1.7 million over two years to fund operating expense for the new Cassell Hall, Nebraska Hall expansion, and rental units at the Berkshire apartments.
Marketing Initiatives: $1.47 million over two years to enhance promotion of graduate programs, evolve the brand campaign, renew AU's web design, continue a partnership with the Washington Nationals, and develop a digital American Magazine.
Development: Increased $243,000 over two years to expand multicultural and local programming to enhance alumni relations, and increase support for regional development efforts.
Athletics: Increased $264,000 to be competitive among Patriot League schools, and to fund operating expense for a fitness center in new Cassell Hall.
Technology Capital Funding: Increased $2.5 million over two years to fund enterprise portfolio projects such as online learning and virtual computing labs, video streaming, and administrative service enhancements; $485,000 over two years to fund technology support for teaching and research; $680,000 for technology life-cycle replacement; $535,000 for fixed cost increases; and $161,000 to increase Internet capacity over two years.
Library Acquisitions: Increased $327,000 in FY14 and an additional $350,000 in FY15 to keep up with cost increases that exceed the rate of inflation for the current library collection and electronic databases, and to increase collections to support the research and teaching goals of faculty and new academic programs.
Capital Renewal and Deferred Maintenance (CRDM) Fund: Increased $1.3 million in FY14 and an additional $453,000 in FY15, which includes the new and expanded residence halls and continuation of the preventive maintenance program.
Facilities Modernization Fund: Increased $500,000 in FY14 and an additional $500,000 in FY15 for modernizing institutional facilities in accordance with the Capital Budget.
Debt Service: Increased $4.5 million in FY14 and an additional $2.1 million in FY15 to provide funding for a capital financing strategy to build and/or renovate new facilities projects such as the law school facility at the Tenley Campus in accordance with the Capital Budget.
Transfer to Quasi-Endowment Funds: While the established policy of budgeting annual transfers equal to 2% of the total operating budget remains intact, transfers to quasi-endowment funds equal 1% of the total operating budget in each year to allow for additional support of strategic plan initiatives in light of the effort to keep tuition rate increases to a minimum.
Tuition Management Reserve: No tuition management reserve budget is required for FY14 and FY15 as the reserve balance met the target of 5% of tuition revenue in FY13.
Transfer to Fund Strategic Plan Initiatives: $1.94 million in FY14 and $1.43 million in FY15 from the internally designated Strategic Plan Initiative accounts.
Internal Reallocations: 0.5% of operating budget or $1.3 million to fund the university's highest priorities.
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