3111.02  OPERATING EXPENSES AND EQUIPMENT

The projection shows the Operating Expenses and Equipment incorporated in 
the current-year Governor's Budget with the exception of the allotments for 
overhead charges, which were adjusted to reflect the new level of these fixed 
charges to Continuing Education.  (In the Housing and Parking Programs, 
these charges are included in Uses of Funds under Systemwide Expenses---
Other.)

The amounts shown (other than overhead charges) are projected at the price 
level currently budgeted for the current year and, therefore, include current-
year price increases.  They do not, however, include the price increases that 
may take effect for the budget year.  Price increase estimates for the budget 
year have been incorporated in the Uses of Funds section of the projection as 
a single line entitled:

9978-4 Price Increase Reserve

This reserve will be used by Budget Planning and Administration as the 
source of funding in adjusting individual Operating Expenses and Equipment 
allotments after receipt and analysis of the Department of Finance Price Letter 
applicable for the budget year.

In detailing the request for the budget year, individual allotments should be 
increased or decreased as required by the dollars shown as "Surplus."  Also, if 
the projection does not reflect a realistic distribution between allotments 
and/or subprograms, the figures should be changed and a more realistic 
presentation shown.

Any requests for equipment should be keypunched as:

0998-5 Equipment---Other

and must be supported by an equipment list.

NOTE:  Price increases for the budget year should not be included, and the 
projection for Continuing Education overhead charges must be keypunched 
as projected.