MAG Budget Executive Summary FY21-22

Budget Information

Our budget this year will be close to last year’s; 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 $22.8M to $22.3M a decrease of less than 2%. 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.

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. Had we included the nearly $25.4M in additional COVID funding our total revenues would have increased to $48M.

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.

Revenues

Our total revenue is $22,396,150, representing a decrease from last year's $22,803,631. This decrease is due mainly to how the MAG/UDOT federal road exchange funds are budgeted. Our Local Planning Assistance funding from the State has remained the same as last year at $140,000, which is now double that of earlier years. The General Fund will be $179,297 based upon the budget formula adopted in 2005, of $0.25 per capita. This is slightly higher than last year which was $175,574. A detailed explanation of the proposed use of this fund is found in the budget. Other revenues from state and local sources are expected to stay relatively flat, while federal funds will increase significantly. 

MAG Budget Revenue Chart

Expenses

Total salaries this year will be $4,722,050 (which includes the assumptions on COLA, Merit, Insurance, Retirement, and Longevity as listed below), an approximately fourteen percent (14%) increase from last year's total of $4,146,919. This is mainly due to increasing the number of employees due to programmatic needs and COLA and Merits.

Salaries

Total budgeted salaries have increased from $4.1M to about $4.7M or approximately 14%. This is mostly due to increases in staff for programmatic needs, budgeting for some unfilled positions and budgeted increases in COLA, Merit, and longevity. Fringe has increased around 11% as well. Health insurance has increased 5.9% which is about $80 per employee, per month, while retirement costs have stayed the same. In the past we have had between 0% and 3% salary increases. Last year we were in the start of a pandemic and did not implement any COLAs or merits. We have been very financially conservative in the past and continue to do so.

Summary

Our total salary/fringe increase of 5.1% COLA + 2% Merit + .7% Insurance + 1.0% longevity = 8.8% budget impact.