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The Fiscal Year 2001-02
proposed budget for the Brown Medical School was developed through a process
involving senior administration of the school (Executive Dean for Administration,
Associate Dean for Research and Graduate Programs, and Associate Dean
for Medical Education). This group reviewed requests for incremental
expenditure increases within the context of a balanced budget and made
funding recommendations to the Dean of Medicine and Biological Sciences.
The recommended budget for FY02 is $49.2M and represents a 12.1 percent increase over the FY01 budget of $43.9M. This budget includes: • a 3.50 percent increase in the medical school tuition rate, • an endowment draw of 4.5 percent of the applicable market value, • a significant increase in restricted funding from federal and private grants and contracts, and • competitive salary pools for faculty and staff REVENUES Tuition and Fees The proposed budget includes a 3.50 percent increase in the medical school tuition rate, from $28,608 to $29,608, and a reduction in the number of medical student FTE's from 300 in FY01 to 290 in FY02. For the past few years we have seen an increase in the number of students who request part- or full-year leaves from the medical program to pursue independent study work, and we have reduced the budgeted FTE's accordingly. We continue to strive to moderate tuition rate increases and note that in the current 2000-01 academic year, Brown ranks 26th of the 51 private medical schools in terms of tuition rate. Also in this revenue category, a modest increase in tuition from Continuing Medical Education (CME) contributes an additional $40K. This increased income is directed toward supporting the costs of specific CME program offerings. Endowment Utilization We have budgeted a 16.9 percent increase in endowment income. We have lowered the endowment draw to 4.5 percent of the applicable market value. The 4.5 percent draw is projected to yield an overall revenue increase of 9.7 percent from the increased income distribution rate. The balance of the increase is attributed to new endowments supporting clinical professorships and to expanding the use parameters of underutilized endowments. Should the ACUP recommended endowment draw of 4.6 percent be approved, that would make an additional $70K of income available to support unrestricted expenditures. We would then be able to consider some of the incremental requests we were unable to fund in the budget we present here, including raising graduate student stipends to competitive levels and enhancing support ancillary to curricular issues. Grants & Contracts
The FY02 budget includes a total of $23.5M in restricted grants
and contracts from both federal and private sources, up $3.4M or 16.9
percent from the FY01 budget of $20.1M. This reflects our faculty's
continued success in competing for external research funding, most notably
a new $11M five-year grant from the NIH's Centers of Biomedical Research
Excellence Program (COBRE) to fund research facilities and projects
in genetics. The $3.4M increase is included in the summary below
and in the full spreadsheet.
Recovery of Indirect Costs Related to the increased revenue from direct costs on grants and contracts, we budget a $1.3M (20.0 percent) increase in indirect cost recovery, up from $6.5M to $7.8M. Other Sources of Revenue The reduction in this income category relates to restricted income in support of the shared chair in the Department of Psychiatry. As this shared chair arrangement matures, decreasing commitments from our affiliated hospitals, reported in this category, are balanced by increasing external research funds. EXPENDITURES We submit an expenditure budget in balance with the revenue budget. The expenditure budget is developed using ACUP-recommended salary increases for staff and faculty (3.25 percent merit, .75 percent equity) and a 2.0 percent inflationary increase in operating expenses. We have also included an allowance equivalent to 1.0 percent of base faculty salaries to support the second year of the four-year faculty salary initiative, which is designed to raise faculty salaries to levels competitive with other Ivy League and top-tier schools. Areas where the change in budget exceeds these salary and operating increases include: Sponsored Research The 16.0 percent increase in this area of the budget relates directly to the research share of restricted revenue discussed under Grants & Contracts above. Instruction & Department Research Total expenditures in this category for FY02 are 7.1 percent over FY01. Of that 7.1 percent increase, 3.0 points relate to the instruction share of restricted revenue discussed under Grants & Contracts above. The balance of the budget increase relates to compensation and operating support for three new junior faculty in the departments of Molecular Pharmacology, Physiology & Biotechnology (MPPB), Molecular Biology, Cell Biology & Biochemistry (MCB), and Molecular Microbiology & Immunology (MMI). Centers & Facilities Agreements with our centers provide incentives to share increased indirect cost recovery. This results in greater than inflationary growth in this category. General Administration & Institution We are very excited by the addition of the Associate Dean of Medicine for Public Health & Public Policy, Terrie Wetle. This strategic enhancement of the school's senior administration will heighten visibility on two fronts: on campus, in our public health program with the new Masters in Public Health (MPH) degree; and at the state and national levels in public policy issues. Student Financial Aid Use of gift and endowment funds in support of scholarship is projected to remain constant for next year. While our use of restricted funds for financial aid typically corresponds to changes in the tuition budget, we implemented a shift in the Program in Liberal Medical Education (PLME) undergraduate admissions policy beginning with the 1999-2000 academic year, moving us toward need-blind admissions at the medical school. Therefore, while both the principal and income balances for endowed scholarships continue to grow at a rate commensurate with the rest of our endowment, we will not see a scholarship increase disproportionate to tuition until the first "needier" PLME class admitted in 1999-2000 become medical students in 2003-04. Student Services This category includes funding to expand advising and career development, and to enhance clinical education programs. External Affairs & Development With the medical school's commitment to our fundraising campaign, this is the fourth and final year we have increased base funding for support of this area by $100K. This now puts the base budget for this operation at the post-campaign level. Financial Interface Fee and Contingency The interface fee is a formula-based expenditure that increases in proportion to the overall budget increase. Dean's Contingency is budgeted at 1.0% of the combined restricted and unrestricted revenue budget. Library We have budgeted a 10 percent overall increase in the acquisition budget. Debt Service In anticipation of the new Life Sciences building, this is the third year we include a $200K base budget increase to continue to prepare the budget to cover incremental expenses related to debt service and operation/maintenance of plant. We plan to increase the base budget by $200K for two additional years, through FY04, to reach a total base budget of $1.0M. As building plans are completed and final cost allocations are made, we will reevaluate the $1.0M target budget and adjust it accordingly. This base budget will be combined with increased indirect cost recovery and an E&G budget allocation to fully fund the debt obligation and operating costs once the building opens. SUMMARY The Brown Medical School is pleased to present our FY02 budget that is balanced with a recommended tuition rate of $29,608, a 3.50 percent increase from the FY01 rate of $28,608. I look forward to discussing this budget with the committee at our meeting on February 23rd. |