Texas State University President Kelly Damphousse and Executive Vice President Eric Algoe report that the University budget for fiscal year 2025 (FY25) is expected to increase 8.3 percent over the prior fiscal year, bringing the annual University budget “close to the $1 billion mark.”
In a July 10, 2024, letter to the Board of Regents of the Texas State University System, Damphousse and Algoe report that TXST enjoys strong popularity among high school students who apply to the university in numbers that are only exceeded by two other Texas college campuses.
Based on the strength of the university’s popularity, Damphousse and Algoe hope that the campus will benefit from rising enrollment, but they have not relied on rising enrollment to bolster budget assumptions. Therefore, growth in University revenues for the FY25 budget is expected to come from two primary drivers: (1) state appropriations and (2) student housing.
While the advent of a newly authorized Texas University Fund (TUF) resulted in $22 million in new funds from the state, the budget numbers that Damphousse and Algoe submitted to the board for approval at the Quarterly Meeting of August 8-9 show that the legislature also reduced university CORE funding by $5 million, resulting in a net increase of about $17 million in Bill Pattern General Revenue from the state.
In their letter to the board that is also included in public board meeting documents for the Quarterly Meeting, Damphousse and Algoe celebrated “the official launch of TXST Online and the more than 30 new fully online programs” which “will eventually generate significant revenue increases in years to come.”
Budget numbers reflect that spending on the new online initiative will result in a fiscal year-over-year increase of nine hundred percent for “Other Transfers Out,” as $3.48 million will be allocated for the Accelerated Online Program, $840 thousand for Round Rock programs, and $331 thousand in Partner Programs “associated with new TXST Global initiatives.”
Other notable increases include a 23 percent increase (or $22.5 million) in Sales and Services and a 46 percent increase (or $2.6 million) in the Budgeted Use of Fund Balance.
In keeping with recent budget trends in the university’s “Run to R-1,” the expenditures for Instructional Support are budgeted to decrease by two to three percent (or $5 to $6 million), while expenditures for Research are expected to increase $19-$20 million (or 40 percent to 60 percent depending upon the budget table consulted.) The $19-$20 million increase in the university’s Research budget corresponds to the approximate amount of money that the university would have received from TUF money approved by Texas voters in a 2023 referendum; however, as mentioned above, the University could not budget the number fully, because of other reductions in state appropriations.
The category of Salaries and Wages is budgeted to increase 4 percent (or $13.2 million) with other Payroll Related Costs up 2.5 percent (or $2.3 million). Taken together, Salary and Wages ($333 million) and Payroll Related Costs ($95 million) make up 47 percent of FY 25 Total Expenditures ($911 million), or 58 percent of Total Operating Expenditures ($731 million) which do not include Transfers Out.
A breakout table for Auxiliary Funds reflects double digit increases in expected revenues from student Medical Services Fees (22 percent); Student Center Fees (23 percent); and Student Bus Fees (29 percent.) Meanwhile Sales and Services are also expected to rise for Housing (28 percent); dining (20 percent); and Athletics (26 percent).
While Housing Revenue is expected to increase about $15 million, the budget calls for $13.6 million in new expenses to recognize the debt service incurred by recently acquired apartment complexes as well as the newly constructed Alamito and Cibolo Residence Halls.
The Student Programming and Services budget will increase 4.6 percent to $4.2 million. Spending on the Artists and Lecture Series will flatline at about $34 thousand for the year, while the Cultural Entertainment Series will increase by about $4 thousand or 3 percent (to $132 thousand). The Student Publications budget will be downsized by 14 percent to $215 thousand.
The university budget was approved on August 8, 2024, at the regents’ Quarterly Meeting.
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