Transcript BSM&C Budget Primer Oct 22 2013

Budget Primer
October 22, 2013
Rick Straka
Macro Higher Ed Budget Issues
 Federal Budget Concerns
 Fiscal Cliff – Will Financial Aid Play a Part of Federal
Budget Fix?
 Impact on Federal Student Services Grants
Trio, Carl Perkins
 Student Debt Bubble
 State Budget Concerns
 Legislature Mandated Undergrad Tuition Freeze
 Performance Funding Accountability
5% Holdback in FY15 if Performance Measure Not
Met (Appears OK as of Now)
National Education Trends
 Impact of Online/Hybrid Learning on Student Life
and Facility Implications
 Commoditization of Higher Ed
 Compile Credits From Multiple Institutions
 Competition From Private For-Profit Institutions
 Refocus on Accountability For Outcomes
 Accreditation Focus on Integrated Planning,
Resource Allocation and Assessment
MSU Micro Budgeting Issues
 Current Emphasis on Enrollment Management
 Budget Balance Between Recruitment and Retention
 Trying to Gain Larger Share of Declining HS Grads
 Looking Outstate and International For Students
 Charting the Future/CSC (Cooperative Sourcing)
 Office Max/P-card/Grainger Procurement
 Administrative Collaboration in Non-Academic Areas
 HLC Use of CFI for Assessment of Financial Health
MSU Budget Process
 Operating Budget is Primarily Incremental in
Nature (Gen Fund, Student Fees, Room and Bd)
< Last Year’s Base +/- Incremental Change
 Incremental Change Aligned with Strategic Goals
< Mandated/Required Changes Also Considered
 Legislative and Bargaining Changes Challenging
< Biennial Budget Finalized 6 weeks prior to Biennium
Start
< Bargaining Agreements Often Settled Late in
Biennium
Gen Fund Budget Subcategories
 Basic Operations
< Base +/- Incremental
 Equipment
< 50% Base, 50% Zero Based
 Strategic Priority
< Zero Based
 Repair and Betterment
< Zero Based
Fund Budgeting
 General Fund
 General Fund Budget – Tuition and Appropriation
 Student Activities/Health Service/Athletics Ops
 Student Activity Fee Funding
 Student Union
 Student Fee Funded
 Residential Life
 Room and Board Fees
Q&A
What else is on your mind?
Budgeting Primer
October 22, 2013
Rick Straka