Submitted Budget

Printable version of the MU 2012-12 Budget: FY13 Budget PresentationSIFCmuboardfor SIFC February3.2012

February 3, 2012
To: Student Incidental Fee Committee
From: Memorial Union Board
Re: 2012-2013 Memorial Union Budget

Contacts:

Ashley Barnes
Memorial Union President
103 Memorial Union
Phone: 541-737-1564
Email: mupresident@oregonstate.edu

Michael Henthorne
Memorial Union Director
112 Memorial Union
Phone: 541-737-6256
Email: michael.henthorne@oregonstate.edu

Jennifer Creighton
Finance Accounting Manager, Auxiliaries & Activities Business Center
215 Memorial Union
Phone: 541-737-6251
Email: Jennifer.Creighton@oregonstate.edu

Budget Summary

Attached is the proposed 2012-2013 Memorial Union budget.  The base budget conforms to 2012-2013 Student Incidental Fee Budgeting Guidelines.  The proposed budget does not contain a per term per student fee increase and preserves all services and student jobs.
The budget is organized by index and line item.  The proposed base budget provides for a 0% increase per student incidental fee for the Memorial Union.  The Memorial Union continues to strive to fund as much of the budget as possible from earned revenue.  In the 2012-2013 budget earned revenue will provide 50% of the funding.

Overall Budget Change Matrix:
The submitted budget has no increase (0%) in student fees for 2012-13 fiscal year. The cost per student per term for 2012-2013 is $ 65.78 ($59.80 summer term).

Budget impact from Increase in Enrollment

FY12 Student Population: 57,900

FY13 Student Population: 62,600

8.1% increase in OSU Student Population

Incidental Fees

Total FY12 Incidental Fees  $ 4,119,622
Total FY13 Incidental Fees  $ 4,440,748
Total FY13 Dollars to Allocate  $ 321,126

Mandatory Costs

Utilities
Snell Hall: $ 23,266
Memorial Union: $  8,021
Total Utilities: $ 31,287
Salaries + OPE + Min. Wage Incr.  $ 129,900
Total Mandatory Costs  $ 161,187

Non-Mandatory Costs

Decision Package #1

Program Adviser – Student Events & Activities Diversity – Cultural Programs (12mos) $66,000

Decision Package #2

Program Adviser – Student Events & Activities Cultural Meals Programs (10mos) $62,000

Decision Package #3

GTA – Center for Civic Engagement $33,722

Decision Package #4

Student Equity Increases for SLI $26,328

Decision Package #5

Team Liberation $2,100

Total Non-Mandatory Costs $190,150
Total Mandatory & Non-Mandatory Costs $ 351,337

__________________________________________

Budget by Category

Revenue:

The Memorial Union budget is supported by 47.6% earned revenue which is generated from rentals, ticket sales, vendor leases, and Memorial Union Retail Food Service’s sales. The budgeted revenue growth will be primarily the result of inflation increases. We do not anticipate a significant change in market share, no new retail locations are planned for FY13. Interest Income is projected to increase compared to the prior year budget due to the OUS Internal Bank.

Student Fee Revenue includes a requested $0.00 (0%) increase in the per student fee for the Memorial Union.

Expenses:

Student Payroll is budgeted to increase due to minimum wage increases. In addition, Student Leadership and Involvement has increased student pay with the roll out of a new student equity model which is attached. The Memorial Union and Memorial Union Retail Food Service will employ about 400 students and provide $1,363,114 in student wages.

Classified Salaries are budgeted to increase per the collective bargain agreement. This increase is result of possible cost of living increases.

Unclassified salaries are budgeted to increase 4%. This increase is result of possible cost of living increases on January 2013.

Other Payroll Expense is budgeted to increase per the SIFC fee preparation budget guidelines. Health care and Other Payroll costs are mandatory and budgeted on a per employee basis and not a flat percentage increase.

Other Expenses:

Operating supplies expense includes significantly more than what we view as traditional office supplies. This line item includes supplies that are directly related to volume and supplies consumed in providing goods for resale in our revenue generating units, such as flip charts in meeting rooms or linens &
table cloths at events. This category of expense represents about 2% of the total budget.

Minor Equipment includes equipment with an individual value of more than $200 but less than $5,000, which will last more than one year.

Memorial Union Budget 2012-2013 Memorial Union Budget 2012-2013 Utilities are a significant expense (approximately 11% of non-payroll expenses) to the Memorial Union budget. The Memorial Union Budget is responsible for utility expenses for both the Memorial Union and MU  East buildings. Budget guidelines provide for rate increases of 5-17%.

Maintenance & Repairs for the Memorial Union and MU East buildings. These costs include routine and non-routine maintenance and repair costs for both buildings.

Assessment and overhead expenses. Unfortunately these expenses are mandated by the State of Oregon, Oregon State University, and the Oregon University System. These expenses are beyond the control of the Memorial Union.

Programming expenses are direct expenses for Student Leadership and student programs provided and coordinated by the Memorial Union and Memorial Union Program Council. It should be noted that out of the $259,862 of budgeted programming expense, $200,000 is recovered by sponsorship income, outside rental income, and ticket prices.

Other Expenses will increase by 2% and primarily due to inflation increases. These expenses are directly related to services and supplies increasing. Examples include: office supplies, software licenses, plant care, equipment rentals, and security services.

Depreciation & Reserves recognizes and records the expense of capitalized buildings and equipment over the useful life of an asset. This line item also records the amount the Memorial Union identifies for remodels and upgrades of meeting rooms and public spaces. This line item records no change from last year’s budget.

Budget detail by Index
What the MU does by index and discussion of significant variances.

Administration provides administrative support and coordination for the whole MU organization. This index records expenses that cannot be directly allocated to individual indexes or the cost of such allocation would be
greater than the benefit. Examples include salaries for the Director, Assistant Director, and support staff.

Beginning in FY07 the Memorial Union was required to pay county property tax on the portion of the building leased to outside retail activities. This expense is estimated to be $26,452 and is mandatory but is
being charged back to the branded vendors.

Memorial Union Building Services records income and expenses related to MU Building operations, other than repairs and maintenance. These expenses are relatively fixed and less dependent upon volume and special
events. Variable Income and Expenses are recorded in MU Event Services. Unclassified and Classified wages are at the mandated level with no additions/reductions in staffing. Other expenses are projected to be at budget guidelines.

MU Event Services records the revenue and expenses related to equipment and event services provided by the MU for building reservations and special events. Expenses and variable labor are recorded separately from
Building Services not only to provide better tracking, but also to more accurately represent the cost of services provided.

Memorial Union Facility Operations records the fixed facility costs of operating the main MU Building, MU East facility cost are recorded in a separate index MUNEST discussed below. MU Facility operations records

Memorial Union Budget 2012-2013 Memorial Union Budget 2012-2013
the rental of space to outside vendors such as OSU Bookstore, and Branded Vendors base monthly rents. This index also records the hard costs of operating and keeping the building open: heat, lights, water and waste
disposal. Services of the MU Building include four student lounges, four music practice rooms, and 10 public computers, in addition to other services. This account also includes classified maintenance labor to support each of the OSU Cultural Centers.

Bookstore rent is the significant source of revenue in this index. The rental rate is based on a percent of gross sales and is set by a long term contract. Payroll costs are based on mandated reductions with no change in
staffing levels. Despite likely rate increases utility costs are projected to increase. Other expenses are budgeted per SIFC guidelines.

Memorial Union Facility Repairs records the repair and maintenance expenses related to the Memorial Union Building. This index also records the required code compliance and renovations of public spaces in the
Memorial Union Building. Given the age of the MU repair cost can increase greater than the level of general inflation, quite simply old buildings require more maintenance and repairs than newer facilities.

Memorial Union Custodial provides in house custodial services and supplies to the MU Building. While keeping our facilities clean, it also provides students with a source of employment and enables the MU to better
manage it utility expenses by eliminating a graveyard shift. This index records cost recovery from MU East for the custodial services to that building. Labor is the most significant portion of this budget, other expenses are slightly greater than inflation due to increasing enrollment and increased use of facilities.

Memorial Union East records the facility operations cost for the MU East Building similar to the Memorial Union Facility index. Starting in FY13, the renting of the Forum will result in $20,000 in additional revenue for
the MU. While the MU has responsibility for the facilities, it has no programmatic control over services and programs offered by Educational Activities and ASOSU. The increase in total expense can also be attributed to additional repairs and maintenance of an aging building at the end of its useful life cycle.

The Basement records the revenue and expenses for Bowling (10 lanes), Billiards (4 tables), Amusement Machines, and special events in this area. The Memorial Union continues to actively enhance the programs and services available in the Basement to provide on campus leisure activities for OSU students. This program is managed and operated by undergraduate students.

MU Craft Center records revenue and expense related to the operation of the Craft Center which includes classes and a well-equipped studio for the following: ceramics, woodworking, jewelry/metals, an extensive glass program, textile arts, black & white photography and digital photography. 60% of the users of the Craft Center programs are OSU students. Additionally, the Craft Center offers special workshops for OSU Student
Groups that are free or materials cost only. Revenue is projected to be relatively flat and OSU students will continue to receive discounted rates and early registration privileges. Increases are within the budget
guidelines.

Concourse Exhibits provides support for the MU concourse exhibits as well as maintaining and preserving the Memorial Union art inventory. Currently the MU has an art collection of over 300 items with a recorded asset value of over $500,000. Most of the art work was donated with the condition that it remains part of the MU for future students to enjoy. The Memorial Union Board believes it is reasonable and prudent to care for this
investment. We have a responsibility to past, present and future students for maintaining this collection. Almost half of this budget is for student labor for artwork restoration.

Memorial Union Budget 2012-2013 Memorial Union Budget 2012-2013
Marketing, Assessment, & Graphic Arts supports the MU organizations with services for promoting MU events and services along with assessment tools to determine the effectiveness of those programs and services. This service is also provided to other OSU organizations for a fee. 72% of this budget is student labor in the MU Graphic Design Studio.

MU Technology records the hardware expenses and support related to computers and software in the MU organization. We believe it is more efficient and cost effective to manage centrally rather than across each
index. This budget provides for only increases within budget guidelines.

MU Student Media provides administrative and program support to Student Media Programs. While the Prism, Barometer, KBVR FM, and KBVR TV direct costs are funded by either advertising or Educational Activities (for FY14 budget this amount is anticipated to be moved from Ed Act’s budget to the MU budget), the Memorial Union provides the administrative and program support. Additionally, MU Publications coordinates and produces the OSU Directory which generates $26,500 in revenues.

Student Leadership & Involvement (SLI) has been in operation as a department within the Division of Student Affairs since July 1, 2007. SLI and the supporting comprehensive budget provide programs, services
and opportunities that intentionally promote student learning, personal development, and inclusion into the diverse campus community. SLI is composed of three basic centers of operation and also provides support
structures for three distinct student-led programs. The three centers include the Center for Leadership Development (MU 203), the Student Events and Activities Center (SEAC-MU 103) and SLI @ Snell Hall
(Snell 149). In addition, SLI provides programmatic advising and support to the Center for Civic Engagement, International Students of OSU (ISOSU), the Memorial Union Program Council (MUPC), Student Sustainability
Initiative, and Team Liberation.

This year, the SLI family of budgets will see significant changes and additions while maintaining a net zero impact on the student fees from the Memorial Union. As an organization the MU has decided to focus our
strategic budget development towards enhancing the student activities and student engagement budgets that make up SLI. Significant budget changes include the addition of two integral positions; 1) Diversity and Cultural Programs Advisor, and 2) Cultural Meals Kitchen Advisor (see related decision packages). Given the overwhelming increase in international student at OSU, our mission to develop global citizens, and our commitment to diversity and multiculturalism – these positions are essential additions to the campus. In addition, the SLI budget is seeing an increase in our total student pay line. This is an effort to bring our student pay more in line with University recommended pay and pay increases, offer increased salaries to students who have enhanced skills and have been through deeper levels of training, as well as adjust for minimum wage increases (see related decision package). Finally, the SLI budget sees an increase in the number of Graduate Teaching Assistants by adding one GTA to work with our newly re-conceptualized Center for Civic Engagement (CCE) (see related decision package). With our broad land-grant mission and service to the state at the forefront, this GTA position offers an opportunity to support the new CCE as we increase our civic engagement and service opportunities to students.

The Center for Leadership Development is committed to leadership education that promotes positive social change, servant leadership, and personal growth. Core programs include consultation and mentorship,
developmental workshops and seminars, leadership development courses, and strengths based assessment/educational programming.

The budget for the CLD sees only a redistribution of dollars by way of student pay line. We are trying to more accurately capture true program costs and have worked to place all of our student pay lines into each budget.

Memorial Union Budget 2012-2013 Memorial Union Budget 2012-2013
The Student Events and Activities Center is dedicated to creating community through activities and programming. Major support areas include the Memorial Union Program Council, International Students of
OSU, Cultural Meals Support Program, Club& Organization Support and Development and the Events & Activities Team. The SEAC provides a hub for campus programming, activities, and involvement as well as the  resources necessary to support OSU student groups who offer programming and events as a way for their communities to become visible.

Memorial Union Program Council (MUPC) is a student-coordinated program that produces an array of diverse, high quality events ranging from small programs to large concerts that enhance student life. Reorganization of the roles of the Memorial Union President and Vice President is reflected in the
removal of the Memorial Union President salary from MUPC and redistribution of these funds into the MU Admin budget. The MU Board will be advising on the reorganization of these roles. Student pay equity is also included in this budget $9.00 to $9.50 per hour.

The International Students of Oregon State University (ISOSU) seeks to facilitate cross-cultural interaction by hosting events and programs that invite many voices from around the world to be heard. We are committed to supporting and developing a wide range of international opportunities for the OSU community focusing on the education and appreciation of international issues and other cultures on this university campus. A more accurate reporting is included in this budget with inclusion of revenue from
ticket sales as well as actual cost of China Night, Africa Night, European Night and India Night. The nature of these events- larger audience (1200+), more expensive venue (LaSells), and unique needs (China service) raises these cost aprx $5000 per event which requires ticket sales to cover the cost. Student pay equity is also included in this budget- $9.10-$9.50 per hour.

Student pay equity was also distributed in the MUNSEA budget for 14 positions, MUNCMS budget for 5 positions.

Team Liberation is a group of facilitators (mostly students) of human relations workshops. These workshops include issues of racism, sexism, heterosexism, classism, ageism, ableism, religious intolerance, communication and community & leadership development in an interactive and inclusive way. Team Liberation facilitators have received over forty hours of intensive training, followed by additional peer mentoring in facilitation with diverse groups on campus and in the community.

This year, the Team Liberation budget seeks to increase the amount of dollars for training (see related decision package) in order to accommodate the high volume demand for the TL training by adding one addition training
per year.

The Center for Civic Engagement (CCE) is comprised of six student staff and is supported by one full-time Coordinator for Civic Engagement and Service and one Graduate Teaching Assistant. In addition, the CCE supports the PeaceJam Project, bringing a Nobel Peace Prize winner to the OSU campus each year for the past 7 years, as well as the Student Sustainability Initiative. In partnership with community-based organizations, the
Center for Civic Engagement is committed to providing service opportunities and programs that allow students, faculty, and staff to meet diverse community needs and learn and reflect about their roles as active citizens. By fostering a campus culture that inspires community engagement, civic leadership, and social responsibility, the CCE aspires for all OSU students and alumni to serve as catalysts for creating more livable, just, and
sustainable communities.

MU Retail Food Service currently operates 8 retail food outlets: Java Stop, Pangea, Buenos Burrito and Bites (convenience store) in the MU Building. Additional locations include Dixon Café, Java II, Java Cart and E Café @ Kelly. These locations provide students with convenient access to food and snacks and enhance the variety of food offerings on campus. Additionally, MU Retail Food Service directly provides approximately $609,600 in student employment.

Memorial Union Retail Food Service is budgeted to be a self-sustaining operation and faces many of the same challenges as other retail operations in today economy.

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