Budget negotiations carry high stakes for FAMU

The two chambers of the Florida Legislature have passed starkly different 2010-2011 budgets and are now preparing to negotiate a compromise.

The House’s spending plan (HB 5001) has $2.7B less than the Senate’s (SB 2700) because it excludes: $880M in supplemental Medicare money, $349M from a proposed statewide school board property tax increase, and more than $400M from a gaming compact with the Seminole tribe.

If the Senate budget prevails, FAMUans can breathe a temporary sigh of relief. But if the House plan becomes law, FAMU is headed for a disaster.

Here are the highlights (click the picture above for a larger view):

Public Education Capital Outlay (PECO)

PECO money, which comes from utility taxes, is the biggest source of construction funding for the State University System.

FAMU’s top PECO priority for 2010-2011 is $8M for utilities, infrastructure, capital renewal, and roofs. FAMU officials have warned that without the money, critical building code and electrical safety upgrades will be stalled.

Both the House and Senate appropriate $7M for this line item.

The second and third PECO priorities are $30.9M for Pharmacy Building Phase II and $17M for FAMU-FSU College of Engineering Phase III, respectively. Construction delays could negatively affect those programs’ re-accreditation processes. Pharmacy and Engineering colleges are required to meet certain lab space requirements in order to remain in good standing with their accreditors. FAMU pharmacy goes up for re-accreditation in 2010.

The Senate appropriates $25M for Pharmacy Phase II. The House only gives $3M.

FAMU/FSU Engineering Phase III received $4.1M from the Senate versus $2.8M from the House.

General Revenue and Stimulus

Any further cuts to FAMU's general revenue are likely to result in layoffs. In his 2010 State of the University Address, FAMU President James Ammons noted that 78 percent of the university's budget supports personnel.

FAMU is currently using about $7.4M in stimulus funds to help save jobs. Both chambers allocate an additional $7.4M in stimulus money.

Layoffs are certain under the House budget. FAMU had $82.8M left in general revenue after last year’s special session cuts. The House's 2010-2011 budget reduces that figure by about $1.8M.

The Senate budget provides FAMU with $87.4M, a more than $4M increase over last year’s final number.

Tuition/Fees

The two chambers both mandate an eight percent tuition increase. FAMU also has the option to heap an up to seven percent “differential” hike on top of that figure.

The legislature’s tuition and fee hike revenue projections continue to utilize “fuzzy math.”

As Ammons noted last year, the legislature bases its tuition and fee projections on the assumption that every student will take a full course load. This is a serious problem because most of FAMU’s students take smaller course loads as college gets more expensive. That directly slices into overall tuition revenue.

Pictured: House Speaker Larry Cretul and Senate President Jeff Atwater.