Follow these steps to pull together your budget information:
Note, this is only expenditures. Use the following formula to “create” your income:
State/University Funds: Look at your total expenditures, round the number to the nearest million, and then reduce it by 55%. For example, if your total expenditures for 2020-2021 total to $22,179,250.00; First round this number to the nearest million ($22,000,000.00), then calculate 55% of that amount ($22,000,000.00 x 55% = $12,100,000.00). This will be your State/University Funds.
Fines and Fees: Calculate as 1.5% of your Total Operations Costs. If your Total Operations Costs is $750,000, then you would collect 1.5% of that in fines and fees ($750,000 x 1.5% = $11,250).
Cash gifts, Fundraising, and Book Sale Proceeds: Calculate as 25% of your Total Operation Costs.
Endowment: Calculate as 40% of your Total Expenditures.
In theory, this should give you a “balanced” budget for the 2020-2021 budget year. It’s okay if you have more money than you need. If you have less money than you need, increase your endowment amount just enough to balance or go slightly over.
Completing the Assignment
Budget Changes: You’ll need to make some changes to the budget based on the natural ebbs and flows of finances and budgeting:
For Income & Revenue
Decrease the Total Revenue from your State/University by 2%.
Decrease your endowment funds by 2%.
Your fines and fees will be 1.5% of your Total Operations Costs. You should not adjust this amount.
You can increase Cash gifts, Fundraising, and Book sale proceeds by a maximum of 10% each. You can choose to increase by less than 10%, but should not increase by more than 10%
For Expenditures: Operations
Assume an inflation rate of 2% for the following operating expense line items:
Bibliographic Utilities, Network, Consortia
Computer Hardware and Software
Supplies
Your Budget Request:
Balancing your budget: You have discretion to change any items in your operating expenditures that have not been impacted by the required budget changes mentioned above. Under Expenditures: Personnel, you can change professional development funding as needed.
For actual personnel, you can only add personnel – you cannot remove any personnel. If you do add personnel, be sure to also consider the increase in fringe benefits and professional development.
Submissions
You will be submitting two items for this assignment:
Budget Proposal: You should upload the template you completed, which includes both the previous year’s budget and the requested (balanced) budget based on the changes you made.
Budget Rational: Remember, while your budget template (table) is a part of your proposal, you still need to explain to the reader exactly what you are talking about.
Briefly explain the rationale for your 2022/2023 overall budget request. Talk specifically about what you are requesting and why.
Be sure to also explain all changes you made in order to balance the 22/23 budget, including the changes mandated by the assignment instructions.
