FY10 Spending Plan Process

Finance and Administration Advisory Group

September 30, 2009

We Have a Final FY10 Budget

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• Despite the challenges posed by recession and resulting decrease in state support, we were able to craft a budget for FY10 that:

• Protects our academic core, advances key initiatives outlined in our strategic plan, and avoids layoffs, furloughs, and other major impacts on faculty and staff  

• Is balanced • Has a built-in reserve of $6 million to cover anticipated additional 9C cuts

from the state this fall.

• We achieved the above using 3-pronged strategy that relies on:

1. New revenue (a student fee increase, minus rebates for undergraduate in-state students, and one-time federal stimulus funding)

2. Redirecting existing trust fund revenues to support more expenses3. Implementing cost-reduction measures recommended by Deans and

Vice Chancellors under the 6% reduction scenarios requested during budget process.

Looking Ahead to FY11

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• The FY11 Challenge:• In FY11, we will lose $20M of federal stimulus money that our campus

is receiving in FY10.

• In addition, we expect significant pressure on expenses so that we can fund continued progress on strategic plan goals, enrollment growth, increased need for financial aid, master plan activity, collective bargaining agreements, life safety and facilities maintenance needs, and general inflation.

• Our strategy for FY11 will include both revenue growth and expense reductions.

Next Step in the FY10 Process is Spending Plans: Why Spending Plans?

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• Spending plan is mechanism for forecasting spending for campus to ensure that we will have enough cash to get through FY10. Ability to forecast is especially important during turbulent financial times.

• We start the budget process many months in advance of the start of the fiscal year, so we want to update our FY10 spending assumptions based on current information.

• Because we implemented spending cuts for FY10, we need to confirm with departments where they are reducing their budgets.

• Where feasible, we want to allocate out to departments specific budgets to implement the recommendations of the Growth Planning Committee.

• Spending plan is also accountability tool to help ensure that units have specific plans to live within their FY10 allocations. Because of budget cuts, we can’t operate same way we did in FY09.

Key Points about FY10 Spending Plan Process

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• We will manage the spending plan process through VCs.

• All-funds process: Spending plans will cover all unrestricted funds.• At level of major budget units (e.g., colleges for Academic Affairs, could

be departments in other areas).• At subsidiary code level, with certain mandatory account codes.

• If your department plans to spend any carry-forward dollars, • First get approval of your VC.• Then send narrative describing proposed spending to OBFP.

• We have released for posting and hiring the positions that Vacancy Review Committee had put on hold.

• We are using FAIR to facilitate FY10 spending plan process.• Once you have developed your plan for how your unit will allocate its

FY10 resources, you will fill out template in FAIR.• We will provide training on how to use FAIR to submit your

department’s spending plan.

FY10 Spending Plan Process

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• We plan to distribute to VCs the following information:

1. FY10 budget allocation for personnel and non-personnel expenses by funding source. 

a) Reduced for any spending reductions that were rated “1” in your department’s 6% reduction scenarios.

b) Increased for any new resources received in FY10 budget process, such as positions recommended by the Growth Planning Committee.

The table will look something like this simplified, hypothetical example: FY10 BUDGET ALLOCATION

XYZ COLLEGE/DEPARTMENTFunding Source Personnel Non-Personnel TotalState $1,000 $0 $1,000CTF $200 $200 $400Lab Fees $15 $76 $91RTF $0 $28 $28ESS $0 $15 $15Other Trust Fund $0 $0 $0Total $1,215 $319 $1,534

FY10 Spending Plan Process (continued)

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2. A list of "authorized" positions for all unrestricted funds (state, CTF, and other trust funds), benefitted positions only. 

3. Instructions about how to use FAIR as the vehicle for submitting your department’s spending plan. 

Proposed Schedule

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Dates Activity/Deliverable

October 2 OBFP distributes Spending Plan memo & supporting materials to Academic Affairs;

FAIR opens to Academic Affairs

October 9 OBFP distributes Spending Plan memo & supporting materials all other VCs;

FAIR opens to all other departments

October 2 - 30 Training available on how to use FAIR to submit spending plans; 1-on-1 assistance available from OBFP throughout spending plan process

Friday, October 30 Due date for completion of Spending Plans by units

November 2 – 20 Office of Budget & Financial Planning and Provost’s Office will review and approve spending plans

Month of November Meetings with selected departments to learn more about their proposed spending