Budget Blog – What’s New in the FY2019 budget?

 

The Board of Regents (BOR) of the University System of Georgia (USG) voted to approve the FY2019 USG Budget on Tuesday, May 15, 2018, in the amount of $7.794 Billion with Middle Georgia State (MGA)’s portion being $102,294,845.  MGA’s budget can be broken down as follows:

What impacted MGA’s FY2019 E&G revenue?

  • State Appropriations increased by $1,800,204 made up of the following:
  • Increase in special funding in support of University Transition – $1,051,654
  • Increased TRS funding of $1,021,836. The percentage paid to TRS by the institution on behalf of TRS-covered employees is increasing from 16.81% to 20.9% of salary.
  • Maintenance and operations funds decreased by $218,500 as a result of decreased square footage.
  • Other miscellaneous adjustments created a decrease of $54,786.

 

  • Total tuition declined by $338,855 from the FY2018 budget due to the following two adjustments:
    • Tuition revenue decreased due to the 33% decrease in the Online Tuition Differential – reduction of $1M – (the remaining differential will be phased out over the next two years); and
    • Tuition revenue Increased based on the Fall enrollment target of 7,500 students.

 

Where did the net new money go?

 President Blake endorsed the following with the new funds:

  • Faculty and Staff Raises
  • New faculty positions:
    • IT Assistant Professor
    • Finance Assistant Professor
    • Psychology Assistant Professor
    • Music Assistant Professor
  • New Staff positions
    • 4 Academic Advisors
    • Career Services position
    • New Security Position in Office of Technology Resources
    • Registrar’s Office position

 And as always, Faculty promotions were fully funded.

 

 What’s next for FY19?

 Fiscal Year 2019 faces two contradictory forces. One is the possibility of increased revenue from enrollment growth and the other is the looming reduction (FY2020) in online tuition differential.  As President Blake indicated in his State of the University address, for the next several years we must grow revenue faster than we grow expenditures     Therefore, we will closely monitor enrollment and maintain strict controls on spending, especially additions to the budget.

Budget Services will continue to monitor MGA’s budget and post updates as the year progresses.