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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> Paliotta, Amanda
<br>
<b>Sent:</b> Thursday, April 07, 2016 10:19 AM<br>
<b>To:</b> Mauck, Sheri<br>
<b>Subject:</b> Clarification on Legis. 14% Reduc. Scenaro<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Sheri – please send the communication below to all Business Officers on my behalf. Thank you.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">To All Business Officers:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Understandably, many of you have had questions relating to the calculations of the Legis. proposed 14% reduction scenario. It is important to recognize that the FY’17 Legis. scenario is based on a completely new set of assumptions and
parameters that is not based on the actual FY’16 budgets or total revenue reductions experienced by higher education.<o:p></o:p></p>
<p class="MsoNormal">Below is an description of how the Legis. calculations were figured for the higher education system:<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo2"><![if !supportLists]><span style="mso-list:Ignore">1.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>Original FY’16 appropriation of<span style="color:#1F497D">
</span>$963,412,106 was reduced by $56,199,281 (equates to only the total system FY’16 GR reduction). After holding $61,721,705 in debt service harmless from cuts, this reduction equates to a 6.23% for all other allocations (including institutions, const. agencies,
State Regents admin. and programs and financial aid programs). The purpose of this calculation is only to establish a Legis. base appropriation. It does
<b><u>NOT</u></b> match your current year’s (FY’16)reduction. This is the amount being used for the new Legis. base appropriation going into FY’17.
<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo2"><![if !supportLists]><span style="mso-list:Ignore">2.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>After holding harmless the $61,721,705 in FY’17 debt service requirement, the new Legis. FY’17 base is further reduced by another 14% ($118,368,757) for all other allocations (including institutions, const. agencies, State Regents admin.
and programs and financial aid programs).<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo2"><![if !supportLists]><span style="mso-list:Ignore">3.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>Percentage changes for Legis. FY’17 scenario compared to new Legis. FY’17 base are:<o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo2">
<![if !supportLists]><span style="mso-list:Ignore">a.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>Debt Service – 0.00%<o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo2">
<![if !supportLists]><span style="mso-list:Ignore">b.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>Institutions, const. agencies, State Regents admin, etc. – 14.00%<o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo2">
<![if !supportLists]><span style="mso-list:Ignore">c.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>Total System – 13%<o:p></o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo2"><![if !supportLists]><span style="mso-list:Ignore">4.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>Final % changes for Legis. FY’17 scenario compared to Orig. FY’16 appropriations are:<o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo2">
<![if !supportLists]><span style="mso-list:Ignore">a.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>Debt Service – 0.00%<o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo2">
<![if !supportLists]><span style="color:#1F497D"><span style="mso-list:Ignore">b.<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]>Institutions, const. agencies, State Regents admin, etc. – 19.36%<span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo2">
<![if !supportLists]><span style="mso-list:Ignore">c.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>Total System – 18.12%<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Any projected impacts being conducted based on the Legis. 14% reduction scenario should be based off the figures provided to you on March 14, from Sheri Mauck through the COBO list serv.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I hope this description helps answers any questions you may have.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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