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A $1 million question: What should the ASUO do with its extra funds?
An enrollment underestimate caused a budget surplus, which has accrued interest for two years
by Jill Aho | Senior News Editor
With more than $1 million in extra cash, the student government has more money than it knows what to do with.
As of the end of last school year, the ASUO had $800,000 in over-realized funds-money that has not been budgeted for but charged to students-that has been accruing for two years in an interest-bearing account.
The Student Senate has $240,000 in surplus in another account.
Previously, student leaders have spent over-realized money on revamping the EMU Amphitheater and on installing solar panels on the EMU; last year's Senate discussed the possibility of using its surplus to fund a new bike rack.
This year's student government, however, has yet to come up with any concrete ideas about how to spend the money.
"It means a lot to have that much money," said Sen. Jonathan Rosenberg, a Senate Finance Committee member. "It means even more how we use that money."
The over-realized money is the result of more students than expected enrolling at the University. The Programs Finance Committee, the panel that awards money from incidental fees to student groups annually, takes figures from University administration and calculates the amount of fees per student needed to cover the upcoming year's budget.
Last year, the PFC used a figure of 17,547 fee-paying students, calculating that a $13 increase was needed to fulfill its more than $10 million budget.
Jim Blick, assistant registrar, said he calculated that 15,679 incidental fee-paying students had enrolled as of last week. Official enrollment numbers are expected to be available later this week.
If exactly 17,547 people enroll this year, the account will not grow. If more people enroll, the funds will increase.
ASUO accountant Lynn Giordano expects enrollment numbers will be larger than last year's estimate. Either way, it is unlikely the over-realized fund will shrink, she said.
The over-realized funds are kept in two separate accounts, Giordano said. A Green Tape Notebook rule requires 5 percent of the annual budget to be kept in a prudent reserve as a precaution. The $800,000 is in addition to this reserve amount.
As of the end of last school year, the ASUO had $800,000 in over-realized funds-money that has not been budgeted for but charged to students-that has been accruing for two years in an interest-bearing account.
The Student Senate has $240,000 in surplus in another account.
Previously, student leaders have spent over-realized money on revamping the EMU Amphitheater and on installing solar panels on the EMU; last year's Senate discussed the possibility of using its surplus to fund a new bike rack.
This year's student government, however, has yet to come up with any concrete ideas about how to spend the money.
"It means a lot to have that much money," said Sen. Jonathan Rosenberg, a Senate Finance Committee member. "It means even more how we use that money."
The over-realized money is the result of more students than expected enrolling at the University. The Programs Finance Committee, the panel that awards money from incidental fees to student groups annually, takes figures from University administration and calculates the amount of fees per student needed to cover the upcoming year's budget.
Last year, the PFC used a figure of 17,547 fee-paying students, calculating that a $13 increase was needed to fulfill its more than $10 million budget.
Jim Blick, assistant registrar, said he calculated that 15,679 incidental fee-paying students had enrolled as of last week. Official enrollment numbers are expected to be available later this week.
If exactly 17,547 people enroll this year, the account will not grow. If more people enroll, the funds will increase.
ASUO accountant Lynn Giordano expects enrollment numbers will be larger than last year's estimate. Either way, it is unlikely the over-realized fund will shrink, she said.
The over-realized funds are kept in two separate accounts, Giordano said. A Green Tape Notebook rule requires 5 percent of the annual budget to be kept in a prudent reserve as a precaution. The $800,000 is in addition to this reserve amount.
Viewing Comments 1 - 1 of 1
Dorothy
dorothy b.
posted 10/25/06 @ 8:01 AM PST
In the words of an ex=Californian,"Put it all away,in a special fund,for a rainy day;because,eventually,you WILL have a rainy day."
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