May 18 20, 2005

ADDITION TO THE ORIGINAL BUDGET

 

ITEM 127-101-R0505 Authorization to Assess Utility Surcharge

 

THAT: The Board of Regents of the Montana University System authorizes a utility surcharge to be assessed against the students of the various campuses for the FY 2006 and FY 2007 years. The surcharge will be separately assessed against and applied toward the General Operating and Auxiliary Subfunds impacted by natural gas charge increases. In each case, the amounts of the surcharge will be established in an amount that will generate revenues equal to the estimated natural gas charges which exceed the amounts budgeted by the campuses.

 

On or before September 1, 2005, the campuses will report to OCHE the amount that was budgeted in 2005 for natural gas, the assumptions used to calculate the surcharge, the final natural gas supply contract rate and contract term, and the surcharge for each year. The Commissioner of Higher Education will report this information to the Board of Regents in September 2005.

 

EXPLANATION: Natural gas utility costs have increased significantly since the Board of Regents established the budget plan for the 2007 biennium. This action is necessary to provide funds for these increased utility costs. The use of a surcharge will allow the board and the campuses to re-assess utility costs prior to the expiration of the two year natural gas supply contracts that were recently entered into by most campuses.