Budget Overview/Projection Fiscal Year 2004 and 2005 DKB: 6/2/03

Assumed Variables Used Re Projection

• Enrollment: FY 04 and FY 05=14,325, held steady
• State Allocation for FY 05 based on MnSCU estimate
• Salary adjustments based on tails in existing contracts @ 5% FY 04, 5% FY 05 for planning purposes
• Fringe increases from 29% to 30% of salaries in FY 04, FY 05
• Utilities Increase 4% in FY 04 and FY 05
• Credit Card Expense adjusted for web-site payment
• Legal Costs Increase $200,000 FY 04, FY 05
• MnSCU Policy regarding reserves - requires 5% reserve, adjusted to 3.0% FY 04, FY 05

Issues Pending

• Contract Settlement Costs for FY 04, FY 05
• Legal Settlement Costs
• Economic Recession
• State Allocation Estimate for FY 05
• Future Deallocation FY04