Chapter 4
Resources

 

SVSU Fiscal Policies

SVSU Fiscal policies: To achieve the three priority budget goals identified previously, SVSU has made reductions in a variety of smaller, incisive ways that cause the least possible harm:
• The university has frozen or made minor reductions in departmental supplies and services budgets and capital expenditure budgets
• The replacement cycle for computing equipment has been extended from three to four years
• Initiatives are underway to realize savings in utilities budgets
• The new facilities opening this year are being managed with current staffing levels.
Some administrative reorganizations that consolidate functions are also expected to result in savings; colleges and departments have also reduced their operating budgets.

In spite of recent economic uncertainties, the university continues to serve its student population well. It effectively prepared for the opening of needed new facilities and implemented a budget plan to fund increasing costs related to salary and fringe benefits, utilities, deferred maintenance, and numerous other costs essential to running the institution. Per-student expenditures have increased, on average, about 3.8% per year.

General Fund FYES Expenditures
General Fund Expenditures
Figure 4-8
(Enlarged Graphic)

SVSU continues to position itself as a cost-efficient institution, able to maintain a resource base that enables it in large part to achieve its objectives in spite of lower state appropriations. Its expenditures per FYES remain the lowest of the Michigan public universities:

Expenditures Per FYES
FY2002-2003 by Michigan's State Universities
Expenditures Per FYES FY2002-2003
Figure 4-9
(Enlarged Graphic)

To summarize, SVSU’s prudent and financially sound management is evidenced by the following:
• Operations consistently within available resources for general operations, auxiliary activities, and capital projects
• Steady and consistent revenue growth, as shown in Figure 4-10:

Revenues by Decade
Revenues by Decade
Figure 4-10
(Enlarged Graphic)

• Lower per-student spending than any public university in Michigan
• Annual external financial audits with no material findings
• Adequate access to bond markets when capital project financing is required
• Accumulated unrestricted net assets, as shown in Figure 4-11:

Unrestricted Net Assets
Unrestricted Net Assets
Figure 4-11
(Enlarged Graphic)

Thus it is evident that during this decade of transformational change, resources have been effectively allocated to support the mission and objectives of the University.