Transcript Shining Some Light on the Budget Process The University of West Georgia September 27, 2007

Shining Some Light on the Budget Process
The University of West Georgia
September 27, 2007
Plan for Today’s Presentation
1.
Budget concepts -- different fund categories
Focus on E&G for the remainder of the presentation.
2.
The Budget Process:
Formula from State to USG
How USG allocates to institutions
How we allocate it to Divisions
3.
Internal Accountability Measures and Metrics
1. Budget concepts:
The Mysteries of Fund Accounting
 How come you had money to build a fountain, when we lack
sufficient classes for Freshmen?
 How many classes will we have to cut to build a Stadium?
 I notice that there are plans to build a new parking lot on the North
Campus – how many classes will we have to cut to build it?
 With a $100 Million dollar budget, how come we can’t build a
parking deck?
All Dollars Are Not Green!
Some General Fund Categories
 Educational and General (E&G)
 Auxiliary:
Health Services
Athletics
Housing
Bookstore
Transportation
 Fees:
Technology Fees
Student Activities
 MRR
 Capital
 Foundation
2. The Budget Process
Focus on E&G for the remainder of
the presentation
Two Intertwined Processes
Deans
Board of Regents
VPs
Departments:
Faculty (Staff)
PAC / President
Deans
VPs
Institutions
Board of Regents
Governor
Legislature
Governor
A. Budget Process and Timetable:
“Before” it comes to UWG
June: Institutions submit requests for health
insurance increases, new retirees, and O&M for new
academic square footage
Board of Regents staff develops a budget request
and Board approves a proposal for the Governor’s
Office of Planning and Budget (OPB)
(FY09 request approved at August 7th meeting)
Fall: Chancellor and senior staff present, explain,
and defend the budget proposal to OPB and
Governor
New Process begun for FY2008
During the fall months, system budget analysts
will be comparing West Georgia to peer
institutions
IPEDS
USO comprehensive universities
Comparison of Expenditures per student FTE
The Process (Continued)
January: Governor proposes the Budget for the
entire State to the Legislature:
The major component of the USG budget is Formula
Funding
Special Funding Initiatives
“B” Budget
Capital Budget
Other Adjustments, such as Budget Cuts
The Formula
Is a mathematical device used by the State of
Georgia to allocate E&G funds to Board of
Regents.
Is based on student credit hours, operation and
maintenance of physical plant, and other
organized activities.
In the formula, upper level and graduate credit
hours are funded at a higher level than lower
level (1000-2000) credit hours.
The Process (Continued)
Separately, Governor proposes Salary Increases
(average % and effective date) to the Legislature in
January – in recent years, this % has been the same
as that of K-12 teachers.
The Process (Continued)
 January to March/April (40 Days): The Legislature debates
the budget; House, Senate, Conference Committee.
During this period, there are considerable efforts on the part of USG
staff, Presidents, VPs, Legislative Advocates
(friends/supporters/faculty), etc. to include items of interest to the
USG.
 February: System Office holds budget hearings with
institutions
 March/April: Governor signs budget or declines to do so (In
GA, the Governor has line-item veto)
 April: University System of Georgia Office receives final
allocation and makes allocations to institutions
Allocations to Institutions
Useful to think of these allocations as:
Continuing funds
New Funds
Salary raise allocations (75% of total needed)
Basis for allocations of New Funds to institutions:
Credit Hours (80%)
Performance (5%)
Strategic / Discretionary (15%)
The Process (Continued)
April/May: Institutions have a very short time
(days) to finalize budget
President’s Advisory Committee – Recommends
distribution of new funds to President for allocation
within Divisions
June: Board of Regents approve budgets for the
fiscal year starting on July 1
B. UWG Internal Processes
 Sept/October: Departments formulate needs for new funds and
submit requests to Deans
 Mid-October: UWG receives instructions for development of
FY2009 budget from USO
 October: Colleges & non-academic departments submit requests
for new funding to divisional VPs
 November: VPs formulate requests for new funding
 December: PAC completes request for new funding and submits to
System Office
 February: Budget hearing at System Office
April/May: The Allocation Process of New
Money to Divisions
Any money allocated to specific initiatives by
the USG must go to those initiatives
Contingency Reserves:
If not needed for budget cuts/shortfalls, reserves are
used for library acquisitions, equipment for buildings,
or other (typically one-time) university needs.
“Allocable” money is computed. Portions of
new funds based on
Strategic directions of USG and West Georgia
Percentage of divisional budget to total budget
FY2008 Budget Highlights
New funding related to strategic plan:
$1,047,184
Retained Retention/Progression/Graduate
Initiative funds, $350,000
1st Amendment includes $188,847 for Nursing
initiative
UWG inclusion in “robust tier” of USG
institutions – with % tuition increase equal to that
of research institutions.
3. Internal Accountability
Measures and Metrics
Budgeted Positions by Division FY94 – FY08
1200
1000
800
600
FY94
FY08
400
200
0
Acade mic Affairs Stude nt Se rvice s
Unive rsity
Advance me nt
Pre side nt/IRP*
Busine ss &
Finance , Fiscal
Facilitie s
Total
Percentage Change in Budgeted Positions by Division FY94 – FY08
Percentage Change in Student Headcount and FTE
58%
60.0%
50%
50.0%
FTE: 39%
40.0%
HC: 34%
30.0%
20.0%
20.0%
13%
10.0%
0%
0.0%
Academic Affairs Student Services
University
Advancement
President/IRP*
1%
Business &
Finance, Fiscal
Facilities
Percentage of University Budgeted
Positions: FY 2008
Facilities
14.8%
Business & Finance,
Fiscal
8.0%
President/IRP*
0.8%
Academic Affairs
64.2%
University Advancement
3.7%
Student Services
8.5%
Facilities
20.2%
Business &
Finance, Fiscal
10.4%
Academ ic Affairs
56.0%
President/IRP*
1.4%
University
Advancem ent
4.1%
Student Services
8.0%
Percentage of University Budgeted Positions: FY 1994
UWG FY2008 Original Budget by Division
E&G only, excluding capital projects
Academic Affairs
$ 50,621,680
Student Services
5,105,923
University
Advancement
3,284,313
Business & Finance,
Fiscal/Facilities
Institutional
12,272,844
5,336,858
TOTAL
$ 76,621,618
Technology Fees
$ 1,202,550
Academic Affairs 66%
Student Services 7%
Univ Adv 4%
B&F, Fiscal/Facilities 16%
Institutional 7%
FY2009 Budget
 Peer Comparisons
 Accountability & Challenge
Prove RPG funds have been a benefit
Stay in “robust” tier
UWG as a destination institution
 New requests from institutions must be tied to USG’s
strategic goals of …
1. Renew excellence in undergraduate education
2. Create enrollment capacity – 100,000 students
3. Increase USG’s participation in research and
economic development
4. Strengthen the USG’s partnerships with state’s
other education agencies
5. Maintain affordability so that money is not a
barrier
6. Increase efficiency
Peer Comparisons
based on FY2007 expenditures
 Total Expenditures
per student FTE
(FY2007)
 “Robust” Tier
Georgia Southern
Valdosta
Kennesaw
West Georgia
UWG
$8,444
Average, “robust” tier
8,278
Average, Regional &
State Univ
8,793
Instructional Exp
per Student FTE
% of Institutional Total
Expenditures
$4,219
49.96 %
Avg “Robust 4”
4,215
50.95 %
Avg
Comprehensives
4,230
48.43%
Avg, all USG
3,828
44.32 %
UWG
Academic
Support* Exp per
Student FTE
% of Institutional Total
Expenditures
$1,521
18.01%
Avg “Robust 4”
1,080
13.05 %
Avg
Comprehensives
1,117
12.84%
Avg, all USG
1,017
13.15 %
UWG
* Library, ITS, Deans' Offices (including A&S Technical Support), Townsend Center,
Graduate School, VPAA, RPG Initiative, Technology Fees, Indirect Cost Revenues, …
Institutional
Support* Exp/FTE
% of Institutional Total
Expenditures
$1,243
14.72 %
“Robust 4”
1,485
18.05 %
Comprehensives
1,653
18.71 %
Avg, all USG
1,519
14.37 %
UWG
* Retiree payments, President’s account, Planning Initiatives (reserve), Institutional
Research & Planning, Divisions of Business & Finance and University Advancement, …
Operation &
Maintenance Exp
per Student FTE
% of Institutional Total
Expenditures
$908
10.75 %
Avg “Robust 4”
905
10.84 %
Avg
Comprehensives
1,067
12.05%
Avg, all USG
1,112
13.06 %
UWG
Student Services
Exp per Student
FTE
% of Institutional Total
Expenditures
$ 522
6.18 %
Avg “Robust 4”
548
6.58 %
Avg
Comprehensives
621
7.03%
Avg, all USG
605
5.17 %
UWG
Percentage of Majors by College, FY2007
34.6%
45.0%
Arts & Sciences
Business
Education
20.4%
Credit Hour Production by College, FY2007
17%
70%
Arts & Sciences
Business
Education
13%
Percentage of Degrees by College, FY2007
Arts & Sciences
Business
Education
39.8%
39.5%
20.7%
Percentage Share of Colleges' Budgets
25%
59%
Arts & Sciences
Business
Education
16 %
Total FY08 Original Budget including
fringe
Arts & Sciences
$21,147,732
Business
5,736,655
Education
8,955,422
Total
$35,839,809
Summary of Today’s Presentation
1.
Budget concepts -- different fund categories
Focus on E&G for the remainder of the presentation.
2.
The Budget Process:
Formula from State to USG
How USG gives it to institutions
How we allocate it to Divisions
3.
Internal Accountability Measures and Metrics
Thank you for all you do,
and
Thank you for coming!
What questions may I answer for
you?