Question

TABLE 12.3 Personnel Expenses Expense Type Salaries Fixed Benefits Variable Benefits Total Nonpersonnel FTE FY 2014 $1,500,257 534,240 262,545 $ 2,297,042 50.00

Personnel expenses: You have been tasked with com-puting baseline budget targets for the upcoming budget cycle. Using Table 12.3 as your starting point, make the fol-lowing adjustments:

(a) All employees are expected to receive a 3% cost-of-living increase in the next year.

(b) The fixed benefit rate will increase by $12.50 per full-time equivalent (FTE) employee. There are 50 FTEs.

(c) The variable benefit rate will increase by 1.25% for all employees in the next year.

(d) Budget baselines are not given out with cents, so round to the nearest dollar.

Answer 1