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Committee approves estimated 2024–25 and proposed 2025–26 operating budgets; trustees hear details on revenue drivers and carryforwards
Summary
The Business and Finance Committee approved the estimated operating budget for FY2024–25 and the proposed FY2025–26 operating budget. Presentation highlighted flat enrollment projection with a 5% tuition increase, elimination of reliance on HEERF funds, and that ~70% of revenues support student education.
The Austin Peay State University Business and Finance Committee on April 11 approved the estimated operating budget for fiscal year 2024–25 and the proposed operating budget for fiscal year 2025–26 after a presentation by Associate Vice President for Budget and Finance Sandra Hamilton.
Hamilton told trustees the university—s operating budget is organized into unrestricted education and general funds and auxiliary funds (housing, dining and other self-sustaining units). For fiscal 2025–26 the proposed budget assumes flat enrollment, includes a 5% tuition increase, and reflects an increase in the state appropriation to cover employee salary and benefit adjustments. The presentation said roughly 70% of university revenues fund instruction, academic support and student services.
Hamilton said a key difference between the estimated 2024–25 figures and the proposed 2025–26 budget is the absence in the proposed budget of nonrecurring carryforwards that will not be known until the university closes the fiscal year on June 30; those carryforward amounts will be reflected in an October revised budget to be presented to the board in December. Trustees discussed the prior use of HEERF (Higher Education Emergency Relief Fund) money and confirmed the university is not relying on HEERF for the current proposed budget.
Trustees asked for clarifications about why operating expenses appeared to decrease in the proposed budget (from about $64,000,000 estimated in FY2024–25 to about $56,000,000 proposed for FY2025–26). Hamilton explained the apparent decrease is the result of excluding nonrecurring carryforward funding from the proposed-year presentation; the underlying ongoing expenses are not expected to decline by that magnitude. She said carryforwards will be incorporated in the October revision after fiscal-year close.
Other details discussed included the university—s student mix (traditional, part-time, military-affiliated students — the presentation cited that 30% of enrollment is military-affiliated), the variety of tuition and scholarship sources (Pell Grants, Tennessee Lottery scholarship, last-dollar scholarship program starting this fall), and that state appropriations have increased since fiscal 2021 (presentation cited a 52% increase since FY2021).
The committee moved, seconded and the secretary called the roll: Trustee Atkins — yes; Trustee Cannata — yes; Trustee Jenkins — yes; Trustee McInnis — yes; Trustee Roe — yes. The motion carries.
Sandra Hamilton said the October revised budget will show the carryforward numbers after fiscal-year close and the committee will review that revision at a later meeting.
No changes to tuition policy beyond the previously noted 5% tuition projection were adopted in this item; the action recorded was approval of the estimated and proposed operating budgets as presented.
