Editor’s Note: This is the third installment of a series of budget articles.

Eastern’s budget increased by about $3.18 million, which carried over from Fiscal Year 11 funds because of Eastern’s cash flow management in response to lacking state payments.

In June, the state owed Eastern about $21 million of its total appropriated FY 11 funds of about $47.4 million. Since then, the state has reimbursed Eastern with about $12.1 million and still owes about $8 million.

William Weber, the vice president for business affairs, said the $3.18 million is a pool of one-time-only funds resulting from the two major ways the university has compensated for funds the state owes.

“Typically we do not have significant amounts carry over like this,” Weber said. “It is an anomaly and is the result of how we managed the cash flow situation.”

The two major ways the cash flow was managed are cutting back on spending and borrowing internally from local non-restricted funds, which consist of income that is not from tuition or general revenue funds, he said.

“We purposely did not spend our full budget authority and have cut back on funding as much as possible while still being able to have classes and keep the university running,” Weber said. “This has helped supplement our expenditures on a temporary basis as we try to move forward with the situation with the state.”

The spending cuts significantly affected the university in terms of personnel, he said.

“The employee headcount of full and part-time employees is down by more than 100 compared to two years ago,” Weber said. “We have also cut back on travel and equipment expenditures, which now require VP approval.”

The state comptroller’s office has promised to pay the rest of the appropriated FY11 funds by the end of December, he said.

The state was paying for FY 12 appropriations on time until early November.

“We were told that we will not receive any more FY 12 payments until the end of the calendar year in order for the state to catch up with payments,” Weber said. “Currently we have received roughly $10 million from the state for the FY 12 appropriated general revenue.”

The total state appropriation for FY 12 is about $46.8 million.

The $3.18 million was added to Eastern’s budget for revenue expenditure funds.

The university’s FY 12 budget approved by the Board of Trustees on June 20 totaled about $114.74. The Board of Trustees approved the $3.18 million increase on Nov. 18, bringing the total to about $117.92 million.

Rachel Rodgers can be reached at 581-2812 or [email protected].