Trustees approve 2005-06 spending plan
COLUMBUS – The Board of Trustees today (7/8) approved a 2005-06 general funds budget of $967.2 million for The Ohio State University's Columbus campus. This amount represents an increase of approximately 5 percent in revenues and spending in support of the priorities of the Academic Plan, the university's strategy to become a top-tier research university.
Barbara R. Snyder, executive vice president and provost, said the budget assumes enrollment will remain steady and increases financial aid 8.3 percent to $64 million, up from $59 million in 2005. Additional priorities are improving student services, supporting interdisciplinary research, increasing safety and security, supporting private giving and improving faculty and staff compensation, she said.
“By focusing on our strategic priorities, we will be able to continue to improve the quality of the education we provide our students while remaining effective stewards of taxpayers' dollars,” Snyder said.
Snyder said the colleges are the key focal points to advance the objectives of the Academic Plan. Consequently, the university's decentralized budget system is designed to make sure at least three quarters of increased annual revenues from tuition and fees and state share of instruction, as well as all indirect cost recoveries, are distributed back to the generating colleges. College resources increased $13 million, or 2.6 percent.
In addition, a total of nearly $24 million in continuing and one-time funds will seed university-wide initiatives that cross college boundaries and strengthen core support services. This includes nearly $10 million in continuing and one-time funds to support interdisciplinary research; $4 million in one-time funds for safety and security; and nearly $5 million in support of the university's development efforts. William J. Shkurti, senior vice president for business and finance, said the budget was based on four strategic principles. Resource allocations should support the Academic Plan; support the flow of resources to the colleges to carry out their missions; ensure continued operating efficiencies and high-quality support services; and advance effective financial stewardship.
He said work continues on reviewing core processes to identify savings and improved efficiencies. The efforts of the Purchasing Office to direct more of the university's purchases through prime vendor contracts is on track to realize between $12 million and $15 million in savings in 2005, while improvements in the capital construction process realized a $14.5 million savings in calendar year 2004 alone. The university also will accrue between $3 million and $8 million from improved management of the employee health benefits plans in 2005.
In addition to the General Funds Budget, Trustees approved the $3.3 billion All Funds Budget, which includes self-funded auxiliary operations such as the Health System and Athletics, as well as restricted use funds such as federal research grants and private gifts.
Trustees also approved a 6 percent increase in tuition for each of the university's regional campuses.
