STATE APPROPRIATION ALLOCATION
Allocation:
The University receives revenue from the State in support of its operations. Increases in the revenue stream are subject to approval of the State Legislature after review of the USNH Biennial Budget request. Under RCM, the state appropriation revenue is allocated to units as follows:
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28% to Program Appropriation Units (PAU) (Agricultural Experiment Station, Cooperative Extension, Marine Program, UNHM, NHPTV and Consulting Center). For Cooperative Extension, UNHM and NHPTV, this allocation includes the operating allocation as earmarked by the state as well as a balancing adjustment to make the transition from the current system to RCM. This amount becomes a permanent revenue stream and is inflated annually at the rate of the general state appropriation increase.
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30% to Academic units (Durham based schools/colleges only) and Research units. $44,356 is allocated directly to UNHM to help offset costs related to the Bachelor's of Engineering Technology program (beginning in FY04). The remaining amount of state appropriation is distributed to units on the basis of prior completed fiscal year faculty salaries from all funding sources (E&G, auxiliary, internally designated, gift, grant/contract). Faculty salaries do not include fringe benefits or graduate assistants but do include all other forms of faculty pay (object code beginning with 01).
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20% to the UNH Library. This amount represents the major funding source for the Library RC unit. This amount will be inflated annually at the rate of the general state appropriation increase.
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22% for the University Fund. The University Fund has two components - a balancing adjustment and a fund used for one-time and permanent allocations to RC units as allocated by the Central Budget Committee. For additional information on the University Fund, please refer to the University Fund document in Section IV of this manual.
Cooperative Extension - Salary Increase Funding Agreement:
Cooperative Extension (CE), UNH and USNH have an agreement with the State of New Hampshire that all salary increases on County and Federal Extension Educators will be funded by the University through state appropriations.
Under RCM, annual increases in state appropriations are passed onto RC units based on the overall % increase in appropriations. If the appropriation increase is not sufficient to cover CE salary increases, the University will fund the difference with an additional allocation of state appropriation revenue. The only exception to this is if the Vice President for Finance and Administration determines a financial crisis exists at the University that would preclude the University from providing the additional funding. In this case, an additional funding request would be brought before the Central Budget Committee by the Vice President for Research and Public Service.
Additional state appropriation to fund additional salary increases will not be denied because of the success of CE in generating additional revenue.
The amount of additional state appropriation calculation is: increase in state appropriation over the prior fiscal year allocation less salary increases and related fringe benefits for 1UX026/1UX028 and federal funds. If there is a deficit, that is the amount that will be funded by additional state appropriations. If there is a surplus, there is no additional allocation.
The calculation for FY02:
| State Appropriation increase @ 5.07% | $295,338 |
| Less: | |
| 1026/1028 salary increase @ 6% | $171,538 |
| Federal funds salary increases @ 6% | $167,947 |
| Fringe @ 34% on salary increases | $115,425 |
| Total Net to be funded by additional state $ | $(159,572) |
Critical Needs Funding:
In the event that the Board of Trustees has identified a critical need to be funded from State Appropriation revenue, the identified amount would be taken off the top of the University's share and the remainder would be distributed to the various units based on the methodology described above. Examples of critical needs are new building operating costs and equipment for NHPTV.
Appendix 1
State Appropriation Calculation
This is a detailed methodology of how state appropriation is distributed to RC units.
Calculation of total State Appropriation revenue by RC unit:
1. Calculate total State Appropriation revenue for the entire university:
University state appropriations
Program Appropriation Unit (PAU) state appropriations including UNHM and NHPTV
2. Gather unit data for allocations: Summarize all faculty salaries paid from all funds by responsibility center (academic and research units only) unit for the prior completed fiscal year.
3. Calculate State Appropriation revenue for each unit:
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Allocate amounts (28%) to fund PAU’s:PAU’s are: UNHM, NHPTV, Cooperative Extension, Agricultural Experiment Station, Marine Program, and Industrial Research and Consulting Center Each year, all PAU’s will receive the appropriation amount they received in the prior year and will be grown at the rate of the increase from the State of NH (plus critical needs).UNHM, NHPTV and Cooperative Extension receives an allocation to cover transition variance in costs from current system to RCM. The transition variance allocation will be set in year one and will grow at the rate the state appropriation grows.
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Allocate 20% of total state appropriation revenue to the Library to recognize designation as state research library
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Allocate 30% of total state appropriation revenue to academic and research units based on faculty salaries by multiplying rate by faculty salaries for each unit after deducting $44,356 allocation to UNHM (beginning in FY04).
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Remainder of state appropriation (22%) revenue designated for University Fund.
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Add all state appropriation revenue attributed to units together to arrive at total
state appropriation revenue by unit.
