October 2, 2009

Purdue trustees hear report on operating budget

"This budget reflects Purdue's continual commitment to provide our students with a world-class education while being fiscally responsible to state taxpayers and those who choose our university," said Purdue President France A. Córdova. "These tough economic times have been hard on families, and in drafting this budget, we have kept our students in mind by focusing on making a Purdue education accessible and affordable."

The overall budget of $2.02 billion represents a 2.9 percent increase over fiscal year 2009 and includes allocations for priority initiatives to support strategic plans at each Purdue campus. Stimulus dollars from the American Recovery and Reinvestment Act were not used to fund recurring expenses. Instead, those funds are dedicated to one-time expenses, such as repair and rehabilitation costs and to help offset tuition costs for resident undergraduate students.

The university will receive more than $16 million less in recurring state operating funds from the previous year - about $14 million of that at the West Lafayette campus - but took several measures to maintain its operating budget. Merit raises for faculty and staff were suspended for fiscal year 2010. Purdue campuses together reduced budgets a total of $12.15 million in targeted areas to provide additional support for strategic initiatives.

The university also has aggressively raised money for new scholarships and grants, and is using federal stimulus money to help offset tuition costs, said James Almond, senior vice president for business services and assistant treasurer.

General fund allocations for mandatory costs, compensation and strategic priorities is $56.86 million system-wide, of which $14.7 million is budgeted for strategic plan and academic program enhancements.

The budget includes about $197 million in student financial aid system-wide.

"This is institutionally budgeted student aid," Almond said. "If you add in student employment and loan programs, financial aid is estimated system-wide at just over $692 million."

Purdue, which last January was included on the Princeton Review's list of 100 "best value colleges" that recognizes institutions with high-quality academics at a reasonable price, ranks eighth among the Big Ten's public universities in tuition and fees.

The full operating budget includes the general fund, sponsored programs, gifts, and revenue from residence halls, athletics, other auxiliary enterprises and university-funded financial aid.

Writer: Jim Bush, 765-494-2077, jsbush@purdue.edu

Sources: James Almond, 765-494-9706, jsalmond@purdue.edu

France A. Córdova, president@purdue.edu

Purdue News Service: (765) 494-2096; purduenews@purdue.edu

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