Overall Budget 1 perspective:

• This is a very lean budget going into a very unpredictable time.  We are not sure how construction projects will affect the revenue from room rentals and food sales.  There is no cushion in our budget if there is any loss in revenue.
• Most reductions in this budget are one year, one time reductions and are not reoccurring.
• The repair budget for the Memorial Union and the buildings it supports has been underfunded by $30K to $50K for the last few years.  We have been able to maintain a balanced but get by re-allocating funds from long term projects to meet current needs.
• We are currently working with a budget that has a net present value 28% smaller than 10 years ago and a student population that is 29% larger.
• Many of the Memorial Union programs and services do not generate their own velocity they respond to the velocity.  As the student population increases on campus, more students use the facilities increasing the use of paper supplies and trash, there is more “wear and tear” on FF&E, and there are increase numbers of students attending programs and events.  The only way to control the velocity is to lock the doors of eliminate programs that are well attended.
• The OSU Memorial Union organization generates 53% of its operating budget and receives 47% from student fees.  In comparison, University of Oregon receives 51% of its operating budget from student fees (and their leadership center, civic engagement center on in separate budgets) and Portland State receives 61% of its budget from student fees.
• Many times expenses and revenues are linked.  For example we can reduce hours of operation but it will also reduce revenue generated by retail food service.  We can increase Event Services rates to generate more revenue, but student groups producing events will have to increase their budgets to cover the increases.  We can increase prices at the restaurants but then students will have increased costs to get coffee and a meal while on campus, or may chose to dine elsewhere.  We can reduce the marketing unit’s budget but it could result in lower attendance (and revenues) at events.