Purdue trustees OK university’s conceptual general fund budget

WEST LAFAYETTE, Ind. — The Purdue University Board of Trustees on Friday (June 17) approved a conceptual general fund budget for fiscal year 2017 that provides allocations for strategic priorities in academic and student support and employee compensation.

The general fund budget, historically approximately 54 percent of Purdue’s total budget, is driven primarily by student fees and state appropriations, both of which were set in 2015 as part of the state’s biennial budget process. The full operating budget, which will be presented to trustees in October, is being developed by campus units and will include all sources of revenue and a detailed expenditure plan.

“Our priority in developing our budget is to keep Purdue affordable for students and their families while continuing to enable investment in mission-centric initiatives in transformative education, world-changing research and STEM leadership,” said Bill Sullivan, Purdue treasurer and chief financial officer. “We are pleased that efficiency savings at each of our campuses contributes to the ongoing support of these important strategic investments.”

Purdue is entering the fourth year of a tuition freeze at the West Lafayette campus, where tuition continues to be held to the same level as in 2012-13. At the same time, the university has worked to find efficiencies across all areas that yielded $8.9 million for reinvestment in priority initiatives in FY 2017. In addition, the university expects a savings of 4.3 percent in medical expenditures.

For FY 2017, trustees approved general fund expenditures that include an allocation of $18.5 million toward academic areas and student support on the West Lafayette campus. Additionally, the approved budget provides $15.3 million for a merit salary pool of 2.5 percent at West Lafayette, with 0.5 percent of that pool conditional upon contribution to efficiencies. The merit salary pool at Purdue Northwest is set at 2 percent, and at Indiana University-Purdue University Fort Wayne, the salary increase policy will be 1.5 percent. Purdue Northwest also will invest in equity adjustments for faculty and staff with the unification of Calumet and North Central in FY 2017.

As part of the conceptual general fund budget, trustees approved the following revenue and expenditure plan for FY 2017:

*At the West Lafayette campus: $1.069 billion, an increase of $24 million driven principally by changes in enrollment.

*At Purdue Northwest: $122.9 million, a decrease of $423,906, driven principally by changes in enrollment and decreases in state-funded debt service for debt being retired.

*At Indiana University-Purdue University Fort Wayne: $109.4 million, a decrease of just over $2 million, driven primarily by declines in student enrollment and state-funded debt service for debt being retired. 

Source: Bill Sullivan, 765-494-9705, sully1976@purdue.edu