bballman,you are basically correct. The one thing I would clarify is that the coach's $ budget is not what is important for NCAA rules - the key is that they can't exceed the 11.7. The $ budget can be important to the Athletic Director and the President or CFO of the university, but the 11.7 is the important number that the NCAA is concerned about.
Thanks Rick, you certainly know MUCH more than me. I was just trying to point out a scenario where the coach is sometimes hogtied by more than one set of conditions. NCAA rules are one of them. The budgetary constraints of his baseball program may be another. In-state/out-of-state mix and the costs associated with that may be included in that budgetary constraint.
That may not even apply to the OP, but it I think it is a consideration that players and coaches need to be cognizant of.