REPORT OF THE
1. ACTION
ITEMS.
a. Championship Budget Requests. [Attachment A]
(1) Recommendation. Approve the recommended championship budget requests for the 2006-07 and 2007-08 fiscal years.
(2) Rationale. The Budget Committee recommends approval of the budget requests for championship initiatives totaling $593,000 for 2006-07 and $208,000 for 2007-08. In 2006-07, championship budget requests include $158,000 for participant awards; $30,000 for a one time set-up fee for participant awards; $111,000 for an increase in travel parties for baseball, men’s and women’s basketball, and women’s rowing; $30,000 for web casting; $20,000 for predetermined sites for softball; $16,000 for an increase in football officiating crews; $24,000 for an increase in the men’s and women’s tennis squad size; $174,000 for an increase in men’s and women’s cross country field size; $15,000 for an internship for the indoor and outdoor track championships; and $15,000 for other initiatives. In 2007-08, budget requests include $85,000 for an increase in travel parties for baseball, men’s and women’s basketball and rowing; $62,000 for predetermined sites for baseball and softball; and $61,000 for an increase in regional hosting opportunities for women’s ice hockey.
(3) Budget Impact. $801,000 for 2006-07 and 2007-08 biennial.
b. Non-championship Budget Requests. [Attachment B]
(1) Recommendation. Approve the recommended budget requests for non-championship initiatives for the 2006-07 and 2007-08 fiscal years.
(2) Rationale. The Budget Committee recommends approval of the budget requests for non-championship initiatives totaling $569,000 in 2006-07 and $400,000 in 2007-08. In 2006-07, non-championship budget requests include $163,000 for additional staff and reclassification of staff to better support Division III; $400,000 for a voluntary two-year drug testing pilot program; and $6,000 for additional student-athlete reinstatement to the CD-ROM. In 2007-08, non-championship budget requests include $400,000 for an enhancement to Tier II of the Strategic Initiatives Grant Program.
(3) Budget Impact. $969,000 for 2006-07 and 2007-08 biennial.
c. Division III Reserve Policy. [Attachment C]
(1) Recommendation. Review and approve the revised mandated reserve policy for Division III, effective with the 2006-07 fiscal year.
(2) Rationale. The committee’s goal was to set a mandated reserve level as a percentage of the Division III revenue instead of a flat amount. This would allow more flexibility as the mandated reserve level would increase as revenue increases. The committee felt that with an ever increasing budget, the flat mandated reserve amount of $1,500,000 was no longer adequate or realistic. The committee recommends a mandated reserve level of 10 percent of the Division III revenue allocation. Along with the Division III insurance policy, this level of a reserve would further protect Division III in the event of a catastrophic event. It would allow the division to function during the year following the event while not completely draining Division III funds.
(3) Budget Impact. Not applicable.
d. Division III Target Budget Allocations. [Attachment D]
(1) Recommendation. Review and approve a target allocation for Division III budgeting purposes.
(2) Rationale. The committee wishes to codify a target budget allocation to ensure that a balance is maintained between championship and non-championship initiatives. Since 2002, the Division III championship budget has been approximately 75 percent of the total budget while the non-championship portion of the total Division III budget has been approximately 25 percent. The committee felt that this 75-25 percent allocation has been adequate. The committee recommends using this 75-25 percent allocation as a target allocation average for use over a four-year period (two-biennial budget cycles).
(3) Budget Impact. Not applicable.
2. INFORMATIONAL
ITEMS.
a. 2005-06 Budget-to-Actual. [Attachment E]
The second quarter results include $16,600,000 in revenue and $7,678,983 in expenses. The team automatic qualification enhancements estimated at $1.5 million are in effect for this fiscal year. There is an additional $5 per diem increase covered through the annual championship inflationary allocations. Based on the budget for 2005-06 the reserve balance is estimated to be $9.5 million.
b. Six-year Revenue and Expense Projections. [Attachment F]
This schedule includes the results and projections from 2004 through 2010. With the inclusion of budget requests for 2006-07 and 2007-08, the projected reserve balance in 2010 is $3 million. In 2008-2010, there are no new initiatives included in the budget figures, so any approved future initiatives will further reduce the reserve balance.
c. Budget Timeline. [Attachment G]
Currently,
divisional budget committees are reviewing budget requests and recommending
items for funding. In April,
Management Councils receive requests from divisional budget committees as well
as Executive Committee recommendations for Association-wide funding. The Executive Committee will approve the
Association-wide and divisional budgets for 2006-07 and 2007-08 at its April
meeting and will finalize the 2006-07 budget in August.
d. Future Meeting.
The committee will meet via teleconference in the fall to review the budget for 2006-07 and the final results from 2005-06.
Committee Chair: John Fry,
Staff Liaison: Beth Altstadt Barnett, Finance