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Budgeting at UNC Pembroke Enrollment Growth funding FY-2011 FACTS FY-2012 Planning. Board of trustees Meeting September 23, 2010. Purpose of Today’s Presentation. Develop a better understanding of State budgeting and the associated processes Discuss UNCP budgeting in detail. - PowerPoint PPT Presentation
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Develop a better understanding of State budgeting and the associated processes
Discuss UNCP budgeting in detail
April 21, 20232UNC Pembroke
The North Carolina Legislature and the State Constitution
The “State Budget Act” as defined in General Statue 143C-1-1 establishes procedures for the following: 1. Enacting the State budget2. Preparing the recommended State
budget3. Administering the State budget.
April 21, 20233UNC Pembroke
North Carolina General Statute 143C-2-1 provides that the Governor is Director of the Budget. As such, the Director has responsibility to prepare and recommend the State budget, and the Director’s powers extend to all agencies, institutions, departments, bureaus, boards and commissions of the State of North Carolina.
April 21, 20234UNC Pembroke
The Governor may -- and does -- delegate certain powers and authorities of the Governor as Director of the Budget to the Office of State Budget and Management (OSBM) (G.S. 143C-2-1(a)).
April 21, 20235UNC Pembroke
The Governor has delegated the authority to OSBM to:1. Prepare the recommended budget2. Certify the ratified budget3. Distribute the budget to state agencies4. Monitor, report, and control the State
budget.
April 21, 20236UNC Pembroke
Issues Biennial Instructions for Budget Preparation
Requests State Agencies Develop Budget Request
Prepares Economic and Revenue Forecast
Reviews Agency Budget Requests Governor Finalizes Biennial Budget and
Six-Year Capital Improvement PlanApril 21, 20237UNC Pembroke
Governor Presents Budget Message to General Assembly
Presents Governor's Budget to General Assembly
Appropriation Subcommittees Review All Budget Requests
General Assembly Finalizes Budget and OSBM Certifies
April 21, 20238UNC Pembroke
Legal Basis State Executive Budget Act Higher Education Reorganization Act of 1971
Board of Governors’ Role: Presents comprehensive financial plans to General
Assembly Modifies plans based on resources made available
by Legislature Establishes annual budgets which are
administered by the constituent institutions
April 21, 20239UNC Pembroke
“A single, unified recommended budget for all public senior higher education.”
Statute prescribes form of budget requests – three categories:§ Continuing Operations (enrollment, utilities, vehicle
replacement) – allocated to institutions§ Academic Salary Increases – lump sum to Board of
Governors and then allocated to campuses§ Expansions/Reductions, when appropriate – by
priority – lump sum to Board of Governors and then allocated to campuses• New and expanded programs• Capital improvements• Increases to remedy deficiencies April 21, 202310UNC Pembroke
Key steps in process of budget preparation:
1. UNC President receives general instructions from Governor via State Budget Office.
2. Budget workshops are conducted separately with three groups:• UNC General Administration Council • Chancellors• Board of Governors
April 21, 202311UNC Pembroke
Key steps in process of budget preparation: (continued)
3. In conjunction with the decisions reached at the budget workshops, instructions are provided to the campuses for preparation of institutional budget requests.• Continuation budgets• Academic salary increases• Expansions and improvements
4. Chancellor is responsible for the preparation of budget requests for the institution and the assignment of any institutional priorities that may be applicable. The process of campus involvement is determined by the Chancellor, who appoints delegates to work with UNC General Administration. April 21, 202312UNC Pembroke
Key steps in process of budget preparation: (continued)
5. Institutional budgets are reviewed:• Continuation Budget – reviewed by Vice President-
Finance for general consistency and conformance.• Academic Salary Increases – campus data
reviewed by Senior Vice President for Academic Affairs and the Vice President-Finance in a similar manner to continuation budgets.
• Expansions and Improvements – reviewed by internal review committee, headed by Senior Vice President-Academic Affairs, composed of the General Administration Council.
April 21, 202313UNC Pembroke
Key steps in process of budget preparation: (continued)
6. President confers throughout the process with the Chancellors.• Afterward, Vice President-Finance prepares
recommendations for Board and its Budget and Finance Committee.
7. After a final budget workshop for the full Board, the Budget and Finance Committee recommends the adoption to Board.
8. Board takes final action, then submits to Governor and Advisory Budget Commission
April 21, 202314UNC Pembroke
Key steps in process of budget preparation: (continued)
9. President represents University in any hearings with Governor.
10.Governor forwards recommendations to General Assembly.
11.President, or his designees, represent University in Legislative hearings.
April 21, 202315UNC Pembroke
The SCH enrollment change formula is driven by the projected change in student credit hour (SCH) production as classified in a 12-cell funding matrix comprised of 4 areas of instruction assigned a cost category and 3 levels of instruction.
April 21, 202316UNC Pembroke
Category IV Category II
14 – Engineering66 – Nursing
Category III25 – Library Science03 – Natural Resources & Conservation51 – Health Professions01 – Agriculture04 – Architecture44 – Public Administration & Services40 – Physical Sciences50 – Visual & Performing Arts11 – Computer & Information Sciences15 – Engineering-related Technologies26 – Biological Sciences
*Student Teaching Courses
13 – Education*05 – Area, Ethnic, Cultural & Gender Studies30 – Multi/Interdisciplinary Studies52 – Business, Management & Marketing24 – Liberal Arts & Sciences, Humanities31 – Parks, Recreation, Leisure & Fitness19 – Family & Consumer Sciences16 – Foreign Languages, Literatures & Linguistics
Category I09 – Communications & Journalism42 – Psychology27 – Mathematics45 – Social Sciences23 – English38 – Philosophy & Religion43 – Corrections & Criminal Justice54 – History
April 21, 202317UNC Pembroke
The three levels of instruction are undergraduate, masters, and doctoral. These three levels are based on differences in the cost of instruction associated with average class size.
April 21, 202318UNC Pembroke
April 21, 202319UNC Pembroke
EXHIBIT 3-1 SCH Enrollment-Change Funding Model Actual UNCP Calculations Regular Term RequestProgram Category Student Credit Hours SCH per Instructional Position Instructional Positions Required
Ugrad Masters Doctoral Ugrad Masters Doctoral Ugrad Masters Doctoral
Category I -2924 -1386 0 708.64 169.52 115.56 -4.126 -8.176 0.000
Category II 5243 1379 0 535.74 303.93 110.16 9.786 4.537 0.000
Category III 2217 790 0 406.24 186.23 109.86 5.457 4.242 0.000
Category IV -311 0 0 232.24 90.17 80.91 -1.339 0.000 0.000
Total 4225 783 0 9.778 0.603 0.000
Total All SCHs 5008 Subtotal Positions 10.382
Campus Ugrad Cost Factor with Positions 20.00% 1.956
data input Total Positions Required 12.337
calculated Instructional Salary Rate of Campus $74,584
model provided Instructional Salary Amount $920,176
Other Academic Cost Rate and Amount 44.89% $413,067
Total Academic Requirements $1,333,243
Library Rate 11.48%
Library Amount $153,056
Gen'l Instt. Support Rate 54.05%
Neg Adjustment Factor 50.00%
Gen'l Instt. Support Amount $720,618
Total Requirements $2,206,918
Calculation of Appropriation Request
Requirements Generated by SCH Model $2,206,918
TuitionRevenue FTE Tuition Revenue$
In-State Ugrad FTEs 342 2060 $704,520
OoState Ugrad FTEs 12 11267 $135,204
Res per GS116-143.6 5 2060 $10,300
In-State Grad FTEs 43 2159 $92,837
OoState Grad FTEs 1 11486 $11,486
Total Expected Revenue $954,347
Request Amount $1,252,571
In general, SCHs are fundable if they are derived from degree creditable instruction in the regular term (fall or spring semester) via on-campus or distance learning efforts. SCHs are deemed non-fundable if covered by other state appropriations, or if tuition is set to cover the full cost of instruction.
April 21, 202320UNC Pembroke
Regular term degree credit instruction delivered on campus or at off-campus resident credit centers
Distance education degree credit instruction delivered to NC resident students, regardless of location, summer and regular academic year
Distance education degree credit instruction delivered to non-resident students within NC
Repeated courses Degree credit instruction offered via
electronic delivery
April 21, 2023UNC Pembroke 21
Non-degree-credit instruction Certain instruction offered below the
baccalaureate level Instruction to students auditing courses Instruction generating continuing education
units (CEU’s) On-campus instruction delivered during the
summer term Distance education delivered outside NC to
non-resident students Instruction to university employees where
employee tuition waiver is claimedApril 21, 2023UNC Pembroke 22
April 21, 202323
REVENUE 2007 2008 2009 2010
Unrestricted
State Appropriations $50,606,593 $57,624,051 $50,448,094 $53,580,406
Student Tuition and Fees $15,176,812 $18,038,017 $19,614,674 $21,167,374
Other Revenue $1,710,090 $657,179 ($284,703) $230,767
SUBTOTAL UNRESTRICTED $67,493,495 $76,319,247 $69,778,065 $74,978,547
Sales and Services $10,323,642 $13,835,062 $14,697,312 $14,975,706
Restricted
Federal Grants and Contracts $10,162,452 $11,804,653 $14,872,757 $21,881,143
State and Local Grants and Contracts $271,605 $769,624 $405,523 $476,452
Nongovernment Grants and Contracts $48,168 $49,760 $96,368 $166,606
Capital Appropriations $10,716,197 $6,127,194 $1,709,530 $3,234,143
Additions to Endowments $473,304 $433,656 $1,188,853 $660,489
SUBTOTAL UNRESTRICTED $21,671,726 $19,184,887 $18,273,031 $26,418,833
Total Revenue $99,488,863 $109,339,196 $102,748,408 $116,373,086
UNC Pembroke
April 21, 2023
Sales and Services:
Sales and Services of Aux Enterprises:
Residential Life $4,670,966
Dining $3,379,254
Student Union Services $45,479
Health, Physical Ed, Recreation $767,875
Bookstore $3,941,642
Parking $257,511
Athletic $181,194
Other $1,168,696
Sales and Services of Ed and Rel Act. $284,695
Total Sales and Services $14,697,312
UNC Pembroke 24
Division Adj. Requirements % of Subtotal
Chancellor $5,480,194 7.15%
Instruction $43,141,048 56.25%
Academic Support $10,570,599 13.78%
VC Business Affairs $9,564,651 12.47%
VC Student Affairs $1,962,079 2.56%
VC Enrollment $3,630,214 4.73%
VC Advancement $766,207 1.00%
VC University Relations $1,577,422 2.06%
Sub Total $76,692,414 100.00%
Utilities $2,802,272
Student Financial Aid $1,998,036
SUM $81,492,722
April 21, 202325UNC Pembroke
Operational Funding Over-arching parameters provided by
VC for Business Affairs as set by General Administration.1. Continuation Budget Request – developed
and entered into GA budget system by Director of Budget and Financial Planning. Various divisional employees provide input especially facilities staff.
April 21, 202326UNC Pembroke
2. Expansion and Reduction Requests• Divisional input solicited from appropriate
departments, prioritized, and submitted to Budget Director.
• Budget Director summarizes input to be shared with the executive staff (ES) and Chancellor.
• ES sets University priorities.• Chancellor approves priorities or modifies.• Approved data entered into GA budget system.
April 21, 202327UNC Pembroke
3. Capital Budgeting (new projects, appropriated and non-appropriated as well as repair and renovation requests)• Asst. VC for Facilities directs the process with
direction given by General Administration.• Six year plans for new projects and for the repair
and renovations.• Divisions- Request for projects or needs is made to
departments and prioritized and shared with Asst. VC for Facilities.
• Asst VC- Summarizes all requests by category. Shares with ES and Chancellor.
• Chancellor- Approves or modifies the recommendations.
April 21, 202328UNC Pembroke
2011 Enrollment Growth
Academic Affairs
Institutional Support
Total
Faculty salaries/benefits (20.09 positions)
$2,215,382 $2,215,382
Library $232,219 $232,219
Institutional Support $1,145,375 $1,145,375
Prior Year Enrollment Growth & Focus Growth
$2,342,574 $2,342,574
Total $2,447,601 $3,487,945 $5,935,550
April 21, 202329UNC Pembroke
April 21, 202330
Budget Changes Budget Amounts
Accounted For
To Be Accounted For
Flex Reduction $2,500,000
Tuition Offset $1,335,200 $1,164,800
Legislative Mandates
Reversion 1% $558,488
Recruitment $508,227
UNC Pembroke
April 21, 202331
Description Recurring Nonrecurring
Recruitment $350,000
Workman Compensation $350,000
Longevity $121,000
SciQuest Implementation $45,000 $45,000
Campus Police Officers - 3 $121,000
SCT Consultant $160,000
Shared Services $65,000
Audit Fees $55,000
Other Controller $ $42,800 $20,000
UNC Pembroke
April 21, 202332
Description Recurring Nonrecurring
Student Conduct Database $5,500
Leadership Program $12,000
Student Voice Assessment $17,860
Restore Selected Permanent Cuts
$43,113
Maintenance postage equipment
$21,748
Assistant Budget Director $82,171
Staff Tuition Waivers $14,000
Business Services - nonrecurring
$64,000
Human Resources $23,700 $14,000UNC Pembroke
April 21, 202333
Description Recurring Nonrecurring
UNCP Today $30,000
Level Three Body Armor $12,600
Touring Bus $250,000
Campus Maintenance and Appearance
$172,000 $125,000
Building Leases – Lowery Properties
$24,000
Maintenance .80 FTE $33,112
UNC Pembroke
Budget Memo # 1 Expansion/Reductions Submit top 3 expansion requests Plan for 5% and 10% reduction of base
budget GA will request funds for enrollment growth GA will consider requests for
1. Salary increases2. Campus safety
April 21, 202334UNC Pembroke
General Planning Information Tuition Increase Approved – 218/yr
6,676 FTE @ $218 = $1,455,368 9% Tuition increase
Additional Tuition Increase - $500/yr 6,676 FTE @ $500 = $3,338,000 20.6% tuition increase
Reductions 5% = $3,000,000 10% = $6,000,000
Prior Year Unallocated Enrollment Growth ???
April 21, 202335UNC Pembroke
April 21, 202336
Budget Memo # 2• Capital
1. Appropriated six year plan2. Non-appropriated six year plan3. Repair and renovations six year plan
UNC Pembroke
Instructions for Preparation of the 2011-13 State Budget http://www.osbm.state.nc.us/files/pdf_files/BudgetInstructions1_2011-13.pdf
The UNC Budget Development Process http://www.northcarolina.edu/finance/budget/Budget_Process.pdf
NC General Assembly Senate Bill 897 http://www.ncga.state.nc.us/Sessions/2009/Bills/Senate/PDF/S897v8.pdf
Enrollment Change Funding Model http://qed.ncat.edu/ir&p/funding-manual.pdf
April 21, 202337UNC Pembroke
Divisional Requests
Recurring
Non-recurring
April 21, 2023UNC Pembroke 38
1. How/what to fund from unallocated resources.
2. How current year decisions impact next year’s budget challenges.
3. Concern that many administrative departments are under funded and under staffed.
4. How to maintain current student/faculty ratios during this period of enrollment growth with budget reductions and reversions.
April 21, 2023UNC Pembroke 39
1. Anticipated 10% budget reduction ($6.0M)
2. Approved tuition increase $218 (9% increase, $1.5M additional revenue)
3. Possible reversions (1%-3%)4. Possible programmatic reductions
(administrative and academic)5. Consider possible additional tuition
increases (per General Administration, up to $500/year 20% increase ,$3.4M)
6. Prior year unallocated budgetsApril 21, 2023UNC Pembroke 40
April 21, 2023UNC Pembroke 41
Undergraduate Student Charges/Year
2009 - 2010
2010 -2011
Change Amount
Change Percentage
Tuition $2,060 $2,423 $363 17.6%
Fees $1,676 $1,717 $41 2.4%
Subtotal $3,736 $4,140 $404 10.8%
Room/Board $5,740 $5,990 $250 4.4%
Total Costs $9,476 $10,130
$654 6.9%
April 21, 2023UNC Pembroke 42
Budget Reduction of 10% $6.00M
Anticipated Budget Reversion of 2% $1.20M
Total Reduction/Reversion $7.20M
Possible Resolution
Approved Tuition Increase $1.50M
Restate FY 2011 Reversion $.56M
Unallocated Funds from Prior Years $1.50M
Programmatic Reductions (Administrative & Academic)
$2.30M
Additional Tuition Increase ($200/yr or 8.2%) $1.34M
Total $7.20M
April 21, 2023UNC Pembroke 43