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Fixed Cost Projections
Fixed costs are a collection of expenditures over which the institution has limited direct control such as utility rates, major institutional service contracts, and rates for existing fringe benefits. Administrators responsible for managing activities associated with such fixed costs have the primary responsibility of projecting these costs for the annual budget period. After review by the Office of the Vice President for Planning, Policy, and Budget and any further clarification by the area vice president, fixed cost expenditure increases/decreases will be factored into the institutional revenue and expenditure projections as a priority funding issue. Due to the priority funding of institutional fixed costs, central controls are placed on the expenditure of fixed cost dollars and these dollars are to be used to fund only the fixed cost requested.
