University Budget Advisory Committee
November 5, 2015
Summary
In attendance: Dr. Jeanne Colleran; Lisa Cornelius (for Mark McCarthy); Dr. Roy Day; Jennifer Dillon; Dr. Dwight Hahn; Dr. Dan Kilbride; Rich Mausser; Dr. Jerry Weinstein; Brian Williams; David Wong (Staff Council representative).
- Rich Mausser opened the meeting by welcoming everyone to the first University Budget Advisory Committee (UBAC) meeting of 2015-16. He explained that the charge of the UBAC was evolving with input from the Strategic Budgeting Task Force (SBTF). The focus of the SBTF is examining the University budgeting process and making recommendations for change. The first recommendation has been for the acceleration of the budgeting cycle. The University will seek Board of Director approval of the 2016-17 Operating Budget in March, 2016 which is seven months earlier than the current year 2015-16 budget which was approved at the October 2015 Board meeting.
- Rich Mausser reviewed the information that was shared with the Finance Committee on October 6, 2015. The University ended the 2014-15 fiscal year with a $1.1 million operating deficit. The preliminary deficit budget presented to the Board in May 2015 was rejected. Work was done by the Senior Leadership Team throughout the summer to reallocate funds and arrive at an operating budget with a $315,000 surplus which was approved by the Board in October. The first operating forecast for the year presented to the Finance Committee shows the surplus deteriorating somewhat to break-even due to an enrollment decline in both fifth-year undergraduates and in most graduate programs offset by increased fundraising revenue and savings from payroll float.
- The Board has asked for a preview of the 2016-17 budget at the December, 2015 meeting as well as assumptions for the following couple of years. Rich Mausser presented a framework of key budget assumptions that drive the University budget including freshman enrollment, retention rates, tuition and fees, room and board rate changes, impact of endowment spending policy changes and increases in various expense categories including salaries and benefits. After much discussion, the UBAC was in reasonable agreement that the assumptions were acceptable.
- Group discussion continued about how the operating surplus could be increased to allow for funding of strategic initiatives. Potential improvement in retention, an increase in the number of transfer students and in non-traditional revenue were discussed. The on-going work of the SBTF on the process for academic and non-academic program prioritization was mentioned as critical to the University to free up funds for new initiatives.
University Budget Advisory Committee
December 4, 2015
Summary
In attendance: Dr. Roy Day; Jennifer Dillon; Dr. Dwight Hahn; Dr. Dan Kilbride; Rich Mausser; Mark McCarthy; Dr. Elizabeth Swenson; Brian Williams; David Wong (Staff Council representative).
- Rich Mausser opened the meeting with discussion of the information that will be shared with the Finance Committee on December 8, 2015. The budgetary framework assumptions and resulting four year operating budget projections to be presented to the Finance Committee are the same as discussed at the prior UBAC meeting November 5, 2015. He stated that the primary issues to be discussed were the assumptions about faculty and staff raise pools and the level of funding for strategic initiatives. Specific strategic initiatives have not yet been identified by the USPG. Initiatives will either be funded through reallocation of existing budget dollars or through new funds to the extent they are available. If new funds are requested, the initiative will need to be reviewed by the UBAC. A question was raised about the source of funding for the new minority faculty post-doc program. Rich Mausser indicated that it was likely that funds would need to be reallocated within the academic budget to fund this new program.
- Capital spending and budgeting is another area reviewed and approved by the Board Finance Committee. Rich Mausser distributed a package to the group including a five-year high level capital spending overview, 2015-16 capital project budgets for both Facilities and Information Systems and lists of potential 2016-17 capital projects for both areas. Facilities uses a five-year replacement plan for projecting work and spending across the campus. Each year the needs are prioritized and considerations such as the schedule of summer events on campus, contractor availability, the potential for savings from combining similar projects, and the amount of time available for managing multiple projects are weighed to determine the final list of projects. IT projects, many of which support the currency of technology on campus, are prioritized as well. The potential project list is reviewed by the IT Steering Committee before it is finalized. Capital budgets have not been discussed with the University Budget Committee in the past and it was suggested that perhaps the UBAC should play a role in the review process. The 2016-17 capital budgets will be presented to the Finance Committee at the March 8, 2016 meeting.
University Budget Advisory Committee
February 26, 2016
Summary
In attendance: Dr. Jeanne Colleran; Dr. Barbara D鈥橝mbrosia; Dr. Roy Day; Jennifer Dillon; Dr. Dan Kilbride; Rich Mausser; Mark McCarthy; Dr. Elizabeth Swenson; Dr. Jerry Weinstein; Brian Williams; David Wong (Staff Council representative).
- Rich Mausser opened the meeting with an update on the current year forecast. Spring retention was lower than anticipated, specifically in the freshman and sophomore cohorts, resulting in a loss of net tuition revenue and room and board revenue. Fortunately, savings in several areas were identified that offset the revenue declines. The favorable medical expense trend has continued producing additional savings and the relatively mild winter temperatures and low natural gas and electricity rates are providing savings on utility expense. Additionally there is some interest savings due to the recent 2006 bond refinancing. The net impact of the revenue and expense changes is a forecast that remains at breakeven for the 2015-16 year