MAG BUDGET
FY20-21
Our budget this year will be close to the two previous years; while overall revenues in each program category are up somewhat or steady compared to last year, the total budget will be down from the previous $24.5M to $22M a decrease of nearly 10%. This is not due to significant revenue or program changes, but in how we budget funding flows from the federal transportation exchange funds. All funds that come through MAG are identified in the budget; however, some funds are not used for MAG staffing or programs. As discussed in previous years, we have a program with UDOT to trade our federal transportation funds for UDOT state funds that are distributed by MAG to local entities for construction projects. These funds show up in the MAG budget, but not in staffing or programs, and any comparison with previous years budgets must take this into consideration.
Additionally, the HEAT program has been a part-year program with emergency-only assistance during summer months. The federal agency responsible for funding the program was expecting to take the program year-round during fiscal year 21-22. This timetable has been accelerated on account of the COVID-19 pandemic and will start the summer of 2020.
If funds are approved by MAG but stay in accounts controlled by another entity (e.g. CMAQ, some CDBG, and Federal Highways) and are distributed directly to a contractor, that money does not show in our budget.
Requests for transportation planning studies go before the Technical Advisory Committee for vetting and prioritization before going to the Metropolitan Planning Organization’s Regional Planning Committee. This is a practice that was started in 2018. Planning studies are a typical line item in our Metropolitan Planning Organization (MPO) budget.
Total budgeted salaries have increased from $3.9M to about $4.1M or approximately 5%. This is mostly due to budgeting for some unfilled positions and budgeted increases in COLA, Merit, and longevity (However, other than longevity/holiday bonus, no other salary increases will be implemented at this time. Fringe has increased around 5% as well. Health insurance has increased 5.0% (total of $36,159 increase or 0.5% of total salary/fringe budget which is about $68 per employee, per month) while retirement costs have stayed the same. In the past we have had between 0% and 3% salary increases. We are currently in a pandemic and cannot predict what the economy will do within the next year. We have been very financially conservative in the past and continue to do so.
