Transcript Current UW Budget Process - University of Washington

Budget 101
Sarah Norris Hall
Planning & Budgeting
February 25, 2015
1
PRESENTATION OVERVIEW

Budget basics

Budget calendar and overview

FY15 Regents’ Budget

2015-17 State operating and capital submissions
•

2
Next steps
Development of Provost’s FY16 budget process
BUDGET VS. ANNUAL REPORT
3
BUDGET OVERVIEW

The budget is a record of allocations, or a spending plan that
incorporates values – it is one representation of many policy
and financial decisions that have developed throughout the
previous four months

The UW budget process allows Regents to




4
Alter tuition rates
Change allocations
Consider capital projects
Make changes to the prioritization of certain central efforts

No standard financial health metrics can be derived from a
budget

However, we can evaluate whether allocation principles are
effective
ABB Rules Apply
TERMINOLOGY REVIEW: UW CODE TERMS
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
General Operating Funds (GOF): budget type used for
allocations of state appropriations and net operating fee
revenue (base component of tuition)

Designated Operating Funds (DOF): budget type used for
allocations of indirect cost recovery from grants/contracts,
summer quarter, overhead revenue, fees and discretionary
investment income

Activity Based Budgeting (ABB): method by which
incremental GOF/DOF revenue is taxed to fund central
expenses and then allocated to schools and colleges

Ten-Year Capital Plan: list of proposed projects by Tier and
Program Use (range of estimated expense now included)

Regents Cap Budget: list of projects that MAY go to Regents
for approval in the coming fiscal year
NGF, or UW “State” Total
TERMINOLOGY REVIEW: STATE BUDGET
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
General Fund State (GFS): sales/B&O tax revenue
supporting general government, for which HE (a
discretionary part of the budget) receives 11%

Education Legacy Trust (ELT): estate/cigarette tax revenue
supporting education for which K12 receives most

UW Building Account: Combination of Building Fee,
MetroTract, timber/land revenue from which the Legislature
appropriates funds for minor/major capital projects

Book 1/Book 2: Governor reqd. to write balanced budget or,
“Book 1,” but will assume new revenue in a “Book 2”

Proviso: Operating budget allocation for specific program
support in budget bill (T/P)
RESOURCES ON THE WEB


State Budget
•
Runs on a two year (biennial cycle) starting with an evennumbered calendar year. The 2015 Legislative session
will conclude with a 2015-17 (FY16 &FY17) budget
•
http://www.leg.wa.gov/LIC/Documents/EducationAndInformation/Citizens
_Guide_to_Budget.pdf
•
http://www.leg.wa.gov/legislature/Pages/Bill2Law.aspx
Regents Budget
•
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Annual budget cycle that incorporates projections for
Regents’ consideration and for GOF/DOF allocations to
units http://opb.washington.edu/
BUDGET PROCESS
UW state budget
materials
developed
Tuition
rates
finalized,
published
Regents
budget
adopted
Internal budget
development
begins
Governor’s
budget
released
WE ARE HERE
Final Budget
Released
Summary budget docs
released for review
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UW state
budget
materials to
OFM
Tuition
projections
produced
Budget
negotiations
Tuition
discussions
begin
Legislative
session
begins
Provost budget
meetings held
Thorough operating budget process timeline is available here:
http://opb.washington.edu/sites/default/files/opb/Budget/OE_BudgetProcess_v5.pdf
FY15 Regents’ Budget
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FY15 REVENUES AND EXPENDITURES = $6.4 BILLION
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UNIVERSITY OPERATING RESOURCES
University Operating Resources
FY 2015
Proposed
FY 2014
Adopted
246,471,000
608,730,000
855,201,000
253,896,000
556,890,000
810,786,000
233,000,000
24,000,000
50,570,000
16,176,000
7,945,000
7,144,000
200,000
339,035,000
226,771,000
20,000,000
51,631,000
16,176,000
6,595,000
6,072,000
200,000
327,445,000
General Operating Fund
State General Fund
Tuition Operating Fees
TOTAL REVENUES
Designated Operating Fund
Indirect Cost Recovery
Institutional Overhead
Summer Quarter Tuition
Investment Income
Miscellaneous Fees
UWB & UWT Admin Overhead
Administrative Allowances
TOTAL REVENUES
TOTAL - UNVERSITY OPERATING RESOURCES
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1,194,236,000
1,138,231,000
UNIVERSITY OPERATING RESOURCES BY CAMPUS
University Operating
Resources
FY 2015
Proposed
Seattle
Bothell
Tacoma
TOTAL
219,125,000
(7,918,000)
7,261,000
514,146,000
732,614,000
11,754,000
(480,000)
566,000
50,042,000
61,882,000
15,506,000
(427,000)
1,084,000
44,542,000
60,705,000
246,385,000
(8,825,000)
8,911,000
608,730,000
855,201,000
339,035,000
0
0
339,035,000
1,071,649,000
61,882,000
General Operating Fund
State General Fund Base
State Cuts
Proviso Funds
Tuition Operating Fees
Designated Operating Fund
TOTAL REVENUES
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60,705,000 1,194,000,000
ALL OTHER REVENUES/EXPENDITURES
Revenues and Expenditures by Area
Research Enterprise
Grants and Contracts Direct Costs
Total
Restricted Funds
Gift Income & Endowment Distr.
State Restricted Funds
Total
UW Medicine health system (Preliminary)
UW Medical Center
Harborview Medical Center***
Valley Medical Center
NW Hospital
UW Physicians
Airlift NW
UW Neighborhood Clinics
Total
Auxiliary Activities
Housing and Dining
Intercollegiate Athletics
Educational Outreach
Parking
Additional Auxiliary Activities
Total
Total Revenues/Expenditures
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FY 2015
Proposed
FY 2014
Adopted
1,114,898,000
1,114,898,000
1,089,898,000
1,089,898,000
243,800,000
8,776,000
252,576,000
224,715,000
8,844,000
233,559,000
1,016,000,000
830,000,000
489,000,000
342,000,000
269,000,000
43,000,000
37,000,000
3,026,000,000
944,000,000
785,000,000
450,000,000
320,000,000
253,000,000
50,230,000
33,100,000
2,835,330,000
99,426,000
103,886,000
105,900,000
37,943,000
468,000,000
815,155,000
91,736,000
95,621,000
106,417,000
36,598,000
418,443,000
748,815,000
6,402,865,000
6,045,833,000
2015-17
State Operating & Capital Submissions
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2015-17 OPERATING REQUESTS – PERFORMANCE
Performance Level Requests
(in order of priority)
Required 15% Reduction Decision Package
Competitive Compensation
WWAMI Spokane Expansion
School of Dentistry RIDE Expansion
Replacement of RV Barnes Research Vessel
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Requested State Funds
($ in thousands)
FY16
n/a
FY17
Total
n/a
n/a
18,903 38,563 57,466
3,481
4,541
8,022
987
1,685
2,672
11,207
0 11,207
2015-17 CAPITAL REQUESTS - PRESERVATION
Requested Funds
Preservation Project Requests
(in order of priority)
Minor Capital Repairs – Preservation & Sub
Projects
Health Sciences Education Phase I – T Wing
Renovation/Addition
UW Tacoma Classroom Building Renovation
- Urban Solution Center
UW Tacoma Campus Development & Soil
Remediation
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($ in thousands)
State
Funds
UW Building
Account
57,800
69,000
8,000
-
18,000
-
5,000
-
Lewis Hall Renovation
16,000
-
Burke Museum Renovation
(UW as Agent for Burke Museum)
46,200
2015-17 CAPITAL REQUESTS - PROGRAMMATIC
Requested Funds
Programmatic Project Requests
(in order of priority)
State
Funds
UW Building
Account
Computer Science & Engineering Expansion
40,000
-
Life Sciences Building I
40,000
-
School of Nursing Simulation Learning Lab
4,000
-
Health Sciences Interprofessional Education
Classroom Phase I
3,000
-
500
-
UW Bothell Phase 4 – Academic STEM
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($ in thousands)
OTHER ELEMENTS OF NOTE
Next Steps:

March revenue forecast released early, see:
http://depts.washington.edu/opbblog/2015/02/februaryrevenue-forecast-update/

Governor’s budget was released in December and is largely
described as a “cuts budget,” see:
http://opb.washington.edu/sites/default/files/opb/Policy/Go
vernor-Inslee-Budget-2015-17.pdf

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Overly simplistic example for information’s sake: Governor’s budget
sets bar for compensation but lacks sufficient funds. If all employees
budgeted in GOF budgets rec’d a 3% increase (Gov’s assumption) we
would need $24 million to implement, but only $4.8 million is
provided and tuition is frozen for resident undergraduates
Meanwhile…
Provost FY16 Budget Development
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PROVOST’S FY16 BUDGET DEVELOPMENT
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
Budget letter and all supporting materials/templates were
sent to Deans, Chancellors, Vice Presidents, Vice Provosts
and Administrators. All documents are available online:
http://opb.washington.edu/content/fy16-budgetdevelopment

Schools, colleges and campuses responded to requests for
•
growth plans (contraction plans, if applicable)
•
faculty hiring trends (recruitment, retention, retirement)
•
tuition rate suggestions
•
administrative obstacles
•
carryover spending plans
•
requests for Provost Reinvestment Funds
PROVOST’S FY16 BUDGET DEVELOPMENT

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Academic Support (admin units) submitted
information about:
•
Services provided and dollars dedicated to those
services “Administrative Services Study”
•
Requests for Provost Reinvestment Funds
•
Carryover spending plans
PROVOST’S FY16 BUDGET DEVELOPMENT
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
Possible that we’ll be dealing with state budget reductions
and/or targeted reductions in specific areas (e.g. FY15’s
“Lean” cut) in FY16

Resident undergraduate tuition is back on the table this
legislative session, but all other rates (nonresident
undergrad, grad and professional) remain under full control
of the UW’s deans, faculty, leadership, Regents

Requests for new Provost funds will be contemplated
alongside carryover spending plans

Undergoing significant effort to consider how academic
support units conduct their work, how they’re funded,
whether they’re adequately funded and whether the
activities are mission-critical
Questions
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