Minutes of the University Budget Committee

Meeting Date: January 21, 2010

Regular Members Present: Tim Gavin, Susan DelVecchio, Scott MacGilvray, David Long, Todd Fraley, John Given

Ex-officio Members Present: Kevin Seitz, Anne Jenkins, Gary Vanderpool, Wanda Sandeford, Louis Warren, Joe Gaddis, Travis Poole

Meeting was called to order by Chairman Tim Gavin.

Agenda Items:

1. Presentation on the State of North Carolina economic situation and the implications for the ECU budget by Vice Chancellor Kevin Seitz :

At this point in the academic year uncertainty remains about any possible reversion that may be imposed by the State during the remainder of the fiscal year. Data from the fiscal research division of the state legislature ( Link to reports page: http://www.ncga.state.nc.us/fiscalresearch/generalfund_outlook/generalfund_outlook_pdfs/2010%20Outlooks/General_Fund_Revenue_Outlook_2010_01_13.pdf ) Reports that through December the General funds revenues were balanced only as the result of higher than expected one time income from a tax penalty forgiveness plan (implemented to get people to pay the taxes they already owed). Going forward there is still a projection for a significant revenue shortfall from budgeted levels over the remainder of this year and into the next year of the biennium. The current projections are that there will be a shortfall that may be as high as $500 million.

This shortfall will mean that there will be a need to decrease spending to balance the budget by the end of the year. There will likely be a reversion of funds requested, the magnitude of the request is not known at present but is anticipated to be 5% of the budgeted state funds. ECU has already held back 5% of our budget in anticipation of this eventuality. The 5% that has been held back is the result of the University holding unfilled but budgeted positions centrally. These dollars are the same ones used from last year’s budget to cover the one time reversion mandated by the state last year. As they remained in the budget, these dollars are again available to cover the anticipated 5% reversion request. As long as any reduction/reversion in the budget is less than or equal to this 5% figure, we should be able to cover this without needing to look at any further reductions in positions.

The State’s economy going forward is projected to improve very slowly over the next several years. When this is coupled with the expiration of short term tax increases, and the disappearance of the onetime Federal stimulus funds in 2011-2012, this means that we will likely face significant budgetary pressures for the foreseeable future.

2. This presentation was followed by a question and answer session. Two additional items were discussed with Mr. Seitz.

· What are the sources of funding for the current construction projects on campus?

Family Medicine Center: funded from a combination of state appropriations specifically for this project, private gifts, and some funding from the Medical Practice Plan.

Scott Hall renovation: funded from the student housing fees

Olympic sports facilities project: funded from the student athletic fee surcharge

Stadium expansion project: To be paid for by the projected increase in ticket sales. Regardless, the loan repayment is entirely on the athletics department.

· Has the athletic department ever contributed funds to support the general operations of the University?

The athletics department is self supporting and self funded. To the best of Mr. Seitz knowledge, other than the scholarships for the athletes that are completely funded by the athletic department, they have not provided funds directly to the University for operations outside of covering the athletic departments operating budget..

3. Open discussion on agenda items for the remaining meetings of the academic year.

The following tentative agenda items were put forward for the remaining meetings of this academic year;

February meeting: presentations on Health Sciences division by Vice Chancellor Horns, and on the University endowment and capital campaigns by Vice Chancellor Dowdy.

March meeting: Athletic Director Holland will be asked to present on the athletics department and issues related to enrollment and retention.

April meeting: devoted to preparing the annual report to the Chancellor

Next Meeting: February 18, 2010 at 4:00pm in Rawl Annex 142