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APSU staff outline state budget outlook and report healthy FY23–24 financial indicators
Summary
University budget staff told trustees the governor’s recommended FY26 budget includes a recurring $2,274,500 increase for Austin Peay and the presentation of FY23–24 financial ratios shows reserves and debt metrics above cautionary thresholds.
Associate Vice President Sandra Hamilton presented the governor’s recommended budget and how it would affect Austin Peay State University’s FY26 planning, and Vice President Shahruz Arubhavar reviewed the university’s FY23–24 financial report.
Hamilton said the governor’s recommended budget includes a recurring operating appropriation increase to Austin Peay of $2,274,500. She said the administration’s breakdown on the slide allocated $656,700 of that amount to employee benefits related to health insurance premium increases and $1,617,800 through formula funding to support a 2.6% employee salary increase. Hamilton also said the governor’s proposal includes $2,000,000 in nonrecurring capital maintenance funds for an HVAC project (described in the presentation as the Dunsin or HVAC project).
On the FY23–24 financial report, Arubhavar and staff presented standard financial health ratios and benchmarking against national standards from the National Association of College and University Business Officers. The presentation showed the university’s primary reserve ratio and viability ratio above the cautionary thresholds and near expectation lines; staff noted the return on net assets was inflated in part by a $20 million state payment related to the Oracle ERP transition in FY24 and cautioned that the elimination of HEERF pandemic funds affects year‑to‑year comparability. The composite financial index and net operating ratio were presented as indicating the university remains in a healthy position relative to benchmarks shown on the slides.
No action was required on the governor’s budget presentation or the FY23–24 financial report; Hamilton said the governor’s recommendations have not been formally approved by the legislature. Trustees asked whether the benchmark reports are shared with state oversight bodies; staff said the university submits numbers to THEC, which produces reports on LGI financial health.
