SUNY Board of Trustees Passes Resolutions to Increase Minimum Wage to $15/Hour For Non-Union Hourly Paid Employees
This week the SUNY Board of Trustees passed two resolutions on the minimum wage. The first is for state-operated campuses, and it approved a gradual increase in the wage for non-union, hourly paid employees to $15.00 per hour by July 1, 2021 with an accelerated schedule – by December 31, 2018 – for those state-operated campuses within NYC.
The second resolution that passed calls for the Boards of Trustees of the 30 community colleges and of Alfred Ceramics and Cornell University to do the same. The Governor did not include funding in his proposed budget for any increase in the minimum wage for non-union employees.
The cost to the operating budget would be $117K maximum per year if bargaining unit employees are included. Non-union student workers cost would be $260K ($43K/year for 6 years). ESPA bargaining unit employees who earn less than $15/hour would be $446K ($74K/year) less negotiated increases (if 2%, it would cut this number in half to $37K a year). Also Grant cost (non-union student workers) would be $112K ($19K/year for 6 years).
Governor Cuomo’s 16-17 Recommended Budget Includes no Increase in Basic Aid
Governor Cuomo released his recommended 16-17 budget yesterday. It did not include any increase in basic state aid per student. The recommendation for no increase is typical, with funds historically being added by the Senate and Assembly.
In addition, the Governor’s recommended budget eliminated GAP funding, and child care funds have been greatly reduced.
25 of the 30 NYS community colleges will experience state aid reductions if the budget is approved at this level due to enrollment declines. SUNY Broome’s state aid will increase by an estimated $368k – the largest NYS community college increase.
’16-17 Budget Development Underway – Budget Scenarios to be Explored in Coming Months
The ’16-17 budget development process has been underway since mid-December, with department’s putting together their detailed proposals, which will be emerging in the coming weeks and will be prioritized by the deans and the executive team.
As priorities emerge, budget scenarios modeling a variety of enrollment, state aid, tuition, and spending levels will be developed and presented for discussion at the February, March, and April Board of Trustees meetings.
At this month’s meeting, we will be discussing the level of detail Board members desire be presented along with the budget scenarios.
Spring ’16 Enrollment Decline Improving
…3.9% decline compared with last spring, steadily improving from 9.4% decline in early weeks of registration
At this time – two weeks before the start of the spring semester – student enrollment is down by 3.9% compared to last year at this time. This is a steadily improving position compared with the early weeks of registration, when it was down 9.4%. With two weeks of registration remaining, and upcoming spring Fast Forward enrollments; there is still opportunity for growth. The Fast Forward program for the fall semester was key to sustaining near flat enrollment and may have a similar impact for the spring semester. Spring Fast Forward enrollments will be finalized by mid-March.
For now it has been assumed that our spring revenue and (flat) enrollment targets will be met. They will be updated in March once actual enrollments and revenues are known. Due to growth in out-of-state and other NYS county enrollments, additional revenues are available to offset a 3.9% enrollment decline if it is sustained.
Winter ’16 Enrollment Grew 19.2%
Our winter term enrollments are continuing to see growth year after year. Currently we are up 13 FTEs for the winter term.
Fund Balance Watch
The latest forecast provides an ending fund balance of $4.5M, or 9.1% of the current net operating budget. SUNY Broome has been able to increase our fund balance by careful management of current expenditures, health insurance savings, and favorable retirement system rates. SUNY Broome’s fund balance forecast suggests that we are achieving our goal of 10%.
External Audit Wrapping Up
Our external audit is wrapping up, and our auditors will report at the February BOT meeting.
Tax Form Security Improved
This year we will be issuing all tax forms using pressure sealed forms rather than window envelopes. This addresses the concern
Developed by R, Losinger, VPAFA; J. Tillotson, Associate VP and Controller; and L. Allen, Budget and Institutional Effectiveness Specialist, January 13, 2016
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