A proposed Otago University Students' Association (OUSA) budget would result in an operating surplus of $861,643 next year, down 17% on the expected operating surplus of just over $1 million this year.
OUSA has released its proposed 2013 budget ahead of a referendum which is timed to coincide with student elections next week.
The proposed budget comes as the association grapples with a lack of income growth as it operates in a post-voluntary student membership (VSM) environment.
Since the introduction of VSM, OUSA has been largely reliant on a service level agreement it signed with the University of Otago for its income.
The budget expects income for 2013 to be about the same as last year at $3,102,219 compared with $3,101,996, with its operating budget climbing from $2,063,355 to $2,240,576.
The expected smaller operating surplus for next year is because of proposed spending increases, which include an extra $93,127 allocated to Clubs and Societies and an extra $61,250 allocated to the student support centre.
OUSA hopes to make an extra $32,007 from next year's Orientation, bringing the total expected profits from events during the start-of-year festivities to $77,775.
The proposed budget cautions it was drawn up before the earthquake strength of OUSA buildings had been tested, which is expected to be finished by the end of the year and could lead to strengthening costs, and before the agreement with the university for next year had been made.
OUSA president Logan Edgar said the organisation was in a relatively strong financial position largely because it ran a "pretty lean budget" in the three years leading up to the introduction of VSM this year.
The proposed budget remained "tight" largely because of the "heightened accountability", which came with its agreement with the university.
"We want to provide better services for less money," he said.
OUSA was following the university's lead in getting its buildings tested for earthquake strength.
"They have given us a bit of a hurry-up to get it going, that's why we are investigating now rather than later," he said.
