University budget to increase for 2011 fiscal year

West Virginia University's 2011 fiscal year budget will increase 3 percent from 2010.

The budget for 2011 is $901,411,000 compared to $874 million from last year.

The budget includes a reduction of in-state appropriations of $14.2 million, this is expected to be completely replaced with federal stimulus funding.

"There are some major reasons for the increase, including a $6 million increase in revenue from tuition and fees due to increases in these passed on May 5," said Elizabeth Reynolds, associate vice president for Planning and Treasury Operations.

The budget limits faculty and staff salary increase commitments in anticipation of future reductions of state funds beginning in 2012. The majority of the salary increases will be for one-time non-recurring raises.

There is a $19 million increase in salaries and wages. This will provide a funding pool equal to 1.4 percent of budgeted salary dollars to fund a salary raise program, Reynolds said.

Specific salary increase plans will be discussed at the Board of Governors September meeting.

"I'm very pleased we were able to freeze in-state tuition and to minimally increase out-of-state tuition," said Board of Governors Chair Carolyn Long.

"I am also pleased that the University can provide a quality education and still have enough money to provide the faculty and staff the salary they deserve. This year's budget offers more benefits than ever before."

There is a $7.5 million increase in employee benefit costs due to increase salary expense and increases in West Virginia Public Employees Insurance Agency employer rates.

There is an $8 million increase in revenues from grants and contracts, a $6.6 million increase from auxiliary enterprises such as housing, dining and athletics and a $3.5 million increase from sales of educational activities, Reynolds said.

There is a $4 million
reduction in supplies budgets and a $5.5 million increase in depreciation.

The budget also anticipates $10 million in a combination of revenue growth and internal budget reallocations to support the salary increase pool and balance the budget. This money will be used in future years to deal with the reduction in funding from the state.