The Operating Budget

Operating Revenue Factors

Improved facilities for science teaching and research often result in a rise in the general level of activity in science departments. This higher level of activity will result in increases in both revenue and expenses. All or some portion of the increase in operating costs will have to be met by an increase in unrestricted budget support. Some of these increases can be met by savings or income from other lines in the operating budget, including: savings in insurance costs, savings in annual maintenance costs, and science endowment fund revenue.

Operating Expense Factors

Improvements in science facilities may require larger budgets for direct program costs, such as faculty salary budgets if student enrollments, supplies, and lab use increase. Other operating expenses that need to be considered include: building operation/maintenance, equipment maintenance, equipment upgrade/replacement, building depreciation, and debt service. In general, estimates based on historical information will become underestimates exceeded as new facilities come on line, and the ambitions of faculty and students alike become more expensive.