Purdue trustees OK university's conceptual operating budget

May 16, 2014  

WEST LAFAYETTE, Ind. - The Purdue University Board of Trustees on Friday (May 16), approved a conceptual general fund operating budget for fiscal year 2015 that includes allocations to strengthen Purdue Moves, by supporting efforts such as student affordability and the College of Engineering expansion, as well as investing in resources to retain top faculty.

"Allocating funds to support the engineering expansion while keeping Purdue affordable for students and families is in line with Purdue Moves," said Al Diaz, executive vice president for business and finance, treasurer.

Purdue Moves is a range of initiatives designed to broaden Purdue's global impact and enhance educational opportunities for its students, including the expansion of the College of Engineering. The 2015 budget will allocate $9 million to engineering to assist in hiring additional faculty and improving facilities and infrastructure for expansion to meet the nation's needs for more engineering graduates.

And as part of the university's cost-savings during the past year to support freezing tuition, Purdue will be able to allocate $12.3 million to continue supporting student affordability.

Also, the West Lafayette and North Central campuses have a compensation merit salary increase policy that averages to 1.5 percent to be applied consistently across each staff group. The Calumet campus budget plan provides a 1.5 percent merit salary policy for clerical and service staff only.

"Top faculty is key, and in order to promote competitiveness in faculty salaries, $1 million is being allocated at the West Lafayette campus for faculty retention and equity," Diaz said. "We're paying attention to the competitiveness in salary and compensation for Purdue faculty compared to their respective peer groups or markets."

As part of the conceptual budget, the trustees also approved each campus' spending plan for fiscal year 2015:

* At the West Lafayette campus: A 0.59 percent increase to $1.017 billion.

* At Purdue Calumet: A 0.77 percent decrease to $83.5 million.

* At Indiana University-Purdue University Fort Wayne: A 2.9 percent decrease to $107.9 million.

* At Purdue North Central: A 2.3 percent increase to $33.6 million.

Operational cost increases include employee benefits, fuel, utilities, insurance and necessary physical facilities projects such as plant expansion, said Melissa Johnson, director of budget and fiscal planning. All campuses experienced savings due to effective assessment and negotiation of medical plans, along with a renewed focus on consumer-driven health care.

The fiscal year 2015 general fund budget is anticipated to be about $1.24 billion system-wide. Tuition and fee revenue represents the largest share, 62 percent, of the proposed general fund budget. The general fund budget also relies on state appropriations, which remain flat at the West Lafayette campus at $244.8 million for fiscal year 2015. In May 2013, the frozen tuition rate for fiscal year 2015 was approved for the West Lafayette campus. The general fund, which supports the university's academic mission, represents only a portion of the university's total system-wide operating budget. The full operating budget totals more than $2.32 billion for fiscal year 2014 and includes the general fund; sponsored programs; gifts; and revenue from residence halls, athletics, other auxiliary income and university-funded financial aid.

The final operating budget, including general and other funds and their allocation details, will be presented to the board in September. 

Writer: Amy Patterson Neubert, 765-494-9723, apatterson@purdue.edu 

Source: Melissa Johnson, 765-494-7124, johnsonmr@purdue.edu

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