The data in the following table present expenditures by object category for the School of Public Affairs at Enormous State University. As with most elite programs at state universities, the school has accepted missions of teaching, research, and service to the university, state, and nation. The operations reported here, however, include only the general fund (tuition and state support); they do not encompass activities financed by private or government contracts or grants. Analyze these data as if you were initiating work for the 2020 budget request. You have been warned that total resources may decline by 8 percent when considering the current financial downturn of the nation Prepare a FY 2020 budget request for the Enormous State University School of Public Affairs on a spreadsheet (e.g. Excel). Clarity and neatness counts!! You are in the middle of FY 2019. The "estimated" FY 2019 figures in the example became your actual FY 2019 budget. You have been directed to prepare a FY 2020 budget proposal for the university's budget office which reduces the total FY 2019 expenditure by 3%. Explain and justify your FY 2020 request in memo form. The university budget officer, quite obviously, cannot be familiar with all the details of various programs offered by the university so the budget justification meeting tends to focus on various ratios, shares, and trends in the budget data. Your justification memo should attempt to preempt such questions. Attach your budget proposal in table form. Include 5 budget years before the FY 2020 proposal. The following rules apply to FY 2020 proposals: 1. You may not lay off any full time faculty, although layoffs of personnel other than full time faculty are permitted. You may not reduce the base pay of any personnel. 2. A recent study by a reputable consultant indicated that Enormous State's FY 2019 faculty pay scale is about 8% below that of similar universities' faculty salaries. The same study also found that professional salaries are 9% and clerical salaries 10% below similar universities. Needless to say representatives of all three groups have been pushing hard for FY 2020 salary increases and there have been rumors that all three groups will push for unionization if salaries are not improved 3. Group health insurance is provided for all non student employees. The state has informed the university that a 5% increase in the present group health rate charged for FY 2019 will be implemented in FY 2020. (Hint: You have to determine the health base to determine the health rate. The base is determined by adding the specified salaries to get the health base. To get the rate, divide the insurance annual amount by the base.) 4. Retirement fund contributions are paid for all full time staff. The state had decided to increase the present rate by 1.5 percentage points for FY 19 to build up the investment pool in preparation for huge numbers of projected retirements in a decade or so. (Hint: You have to determine the retirement base to determine the retirement rate. The base is determined by adding the specified salaries together to get the retirement base. To get the rate, divide the retirement annual amount by the base.) 5. "Transfers out" are contributions to a reserve fund (rainy day fund) which may be rolled over into new fiscal years. State law restricts annual contributions to this fund to no more than 2% of a unit's total budget and the fund may not grow to more than 3% of the unit's most recent annual budget. At this time, the fund total is equivalent to the FY 2019 contributions. FY 19 FY 20 Category FY 15 FY16 FY 17 FY 18 (Estimated) (Projected) Academic salaries (full-time faculty) $1,900,000 $1,981,105 $2,062,114 $2,190,971 $2,683,484 Part-time instructors $307,462 $273,991 $441,704 $181,518 $173,366 Student academic/fellowships $266,117 $248,422 $324,121 $602,463 $669,886 Professional salaries $325,587 $315,889 $356,074 $494,062 $448,589 Clerical salaries $413,674 $445,983 $470,417 $522,382 $555,350 Wages (part-time workers) $27,219 $19,744 $24,406 $33,473 $43,299 Group insurance (health) $174,210 $189,110 $173,143 $225,403 $312,875 Retirement $619,326 $653,963 $723,261 $791,787 $917,874 Subtotal $4,033,595 $4,128,207 $4,575,240 $5,042,059 $5,804,723 General supplies and expenses $402,839 $425,141 $460,098 $549,090 $719,504 Travel $82,718 $97,064 $96,462 $120,600 $134,162 Equipment $92,112 $32,904 $74,616 $197,844 $367,512 Transfers out $0 $0 $0 $43,100 $15,000 Subtotal $577,669 $555,109 $631,176 $910,634 $1,236,178 Total $4,611,264 $4,683,316 $5,206,416 $5,952,693 $7,040,901 Health base Retirement base Health rate Retirement rate Supplies/FT Sal Travel/FT Sal Equip/FT Sal