UW System Administration Office of Budget and Planning Annual Budget Allocations and Guidelines

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1 Budget & Planning 780 Regent Street, Suite 237 Madison, Wisconsin (608) (608) Fax website: March 6, 2014 Via Only To: From: Re: Budget Officers Gary Buehler UW System Administration Office of Budget and Planning Annual Budget Allocations and Guidelines The planning allocations have been entered into the planning allocation system. You can download the allocations for your institution by going to and clicking on Planning Allocation Reports. Instructions for how to use the online system can also be found on that web page. The planning allocations reflect the funding that was included in the Final Legislative Budget and Compensation. Items included in the initial allocations are: 1) % Classified Represented Pay Plan; 2) % Summer Session Pay Plan; 3) % Unclassified Pay Plan; 4) % Graduate Assistant Pay Plan; 5) % Classified Pay Plan; 6) % Senior Executive Pay Plan; 7) Unfunded Pay Plan Costs; 8) Lawton and AOP Adjustments; 9) Distinguished Professor Funding Reallocated to All Institutions; ALLOCATION INFORMATION % Classified Represented Pay Plan-This allocation provides funding for the % pay plan increases approved by the Legislature for represented classified staff in January The allocation is based upon the October 2012 payroll % Summer Session Pay Plan-This allocation provides funding for the 1% pay plan increase needed to supplement summer session salaries during the summer of % Pay Plan for Faculty, Academic Staff, Graduate Assistants, Classified Staff and Senior Executives- These allocations distribute a 1% increase for the above staff based on the October 2012 payroll base rolled up by 1% for the pay plan.

2 Unfunded Pay Plan Costs This item allocates a reduction of $8,600,000 to reflect the unfunded pay plan costs related to the fee share of estimated compensation and fringe benefit adjustments in The fee share cannot be generated due to a State required tuition freeze. The allocation is distributed based on each institution s share of the UW System s GPR/Fee budget excluding debt service, utilities, financial aid, separately budgeted tuition, and Extension credit programs. This item has been allocated as undistributed. Please see the Other Budget Development Information section below regarding the process for allocating these undistributed funds Lawton and AOP Adjustments - This allocation adjusts the Lawton and Advanced Opportunity Program (AOP) funding based upon each institution's proportion of a three-year rolling average headcount of students of color. Distinguished Professor Funding Reallocation - As part of the flexibilities included in the Legislative Budget under the block grant, distinguished professorships are no longer required by statute. However, institutions may continue to grant them at their discretion, using their own resources. As the contracts that existed prior to July 1, 2011 expire, the funding is being returned to the system and allocated to all institutions based upon their proportional share of the prior year s adjusted pooled GPR/Fee budget. The allocation reflects those Distinguished Professorships that expired in As the remaining Distinguished Professorship contracts expire, those funds will also be allocated to the institutions, with the final funds being allocated in OTHER BUDGET DEVELOPMENT INFORMATION Budgeting for Classified Staff Salaries Please build the allocation for the classified 1% pay plan increases into your budgets as lump sums. Do not distribute these amounts by individual. The classified 1% pay plan will be distributed later by person in the Human Resource System (HRS) as has been the practice historically. Individual salaries in the budget should reflect the classified staff rates. Market increases that were included in the Compensation Plan for classified staff in have not been allocated. Funding for these increases will be provided by Financial Administration during the year-end process once the actual costs are known. Permanent funding for these increases will be allocated in Distribution of 1% Pay Plan against the Unclassified Continuing Staff Base The System Administration Office of Human Resources and Workforce Diversity has confirmed that the 1% pay plan should be distributed to all those with satisfactory performance, and the Chancellor s Discretionary increases will not be used. They also understand there may be employees in the continuing staff base who are not performing satisfactorily and ineligible for the pay plan increase. Therefore, the requirement that all institutions distribute 1% of the continuing staff base (page 7 of BSUM) is being suspended for The reallocation of those dollars not granted to the unsatisfactory performers is dependent upon institution specific pay plan guidelines. However, institutions should not distribute more than 1% of their continuing staff base for pay plan increases in the merit line.

3 Pay Plan Implementation Video Conference The System Administration Office of Human Resources and Workforce Diversity, the Budget Office, and the UW Service Center will hold a joint video conference on Thursday, March 13th from 9:00 to 10:30 a.m. If you have not already received information regarding this Video Conference and would be interested in attending please contact Renee Stephenson (rmstephenson@uwsa.edu.) Distribution of Undistributed The Unfunded Pay Plan allocation was built into the allocation system as Undistributed allowing institutions the greatest flexibility on how it will be built into the budget. The form for reporting the actual distributions back to System Administration can be found on the web at: and is called Distribution of Undistributed Template for FY15 Unfunded Pay Plan Costs. The fringe benefit rates that can be used for these distributions are included in the forms. These allocations were made on funds If your institution would like to take a portion of the reduction amount (excluding 109) off of another fund within the block grant, please cut and paste a copy of the original template to show the distribution on additional funds. If you would like the System Budget Office to build the cuts in by program and major class in order to ease the reconciliation process prior to budget your submission, please forward the forms to me and I will update the allocation system. Reallocation of Budget Reduction Understanding that institutions did not have sufficient time to plan for the permanent $32 million budget reduction in FY14, institutions may reallocate the reduction in FY15. If your institution would like to reallocate the reduction, please contact me and I will send you the final allocation amounts as they were taken last year, and provide you with the template for reporting and allocating the changes in FY15. Strategic Plan Submissions Each institution should submit, along with their budget, the institutional Strategic Plan and a one to two page summary detailing how the budget submission supports the Strategic Plan. The supplemental information should include: Institutional initiatives that have required reallocating funding both within and across programs Major shifts out of instruction Major shifts into institutional support Other significant shifts between programs Significant shifts among major classes It is likely that the supplemental information will be summarized and presented to the Board of Regents in the annual budget document to highlight reallocations and decisions that are made at your institution to support your mission and strategic plan.

4 To better inform the Board of Regents of institutional strategic directions, a request will be made in the near future asking for your planned uses of one time balances in GPR Salary Line Shifts Any shifts into the 1(a) salary line could require a subsequent shift into fringe benefits due to the Memorandum of Understanding on position creation which states the university is liable for any fringe benefits associated with shifts onto the salary line. Please note that with the exception of Debt Service (110), the State Lab of Hygiene (117), the Veterinary Diagnostic Lab (126), and UW-System Administration (301), all GPR funds are considered 1(a) funds. Non-GPR Positions For all non-gpr funding sources, the System Budget Office will be comparing the number of positions in the budget submission to the number of filled positions in the January 2014 position report. Budgeted positions should not be significantly higher than the January filled position control levels without justification. Auxiliary Budget Submissions Auxiliary budgets should be submitted via to Jake Miller (jmiller@uwsa.edu) by your institution's budget submission due date. Auxiliary budget forms have been mailed to your institution s Auxiliary and Budget Officers. Zero out Fund 233 Institutions may use fund 233 for the gift funding that had previously been in fund 133 to ease financial reporting. However, we cannot show a budget on fund 233. If your institution chooses to budget on fund 233 please shift the funding and FTE in the back of your budget to fund 133 so the budget summary total shows no fund 233 by major class or program. Reports to Request Prior to Budget Submission To assure all budget development issues have been resolved please run the budget development reports at during your budget development process and prior to submitting your budget. The reports that should be free from errors without explanation are: Record Errors for all staff Technical Adjustments Over Max/Under Min for all staff Persons greater than 100% Audit UDDS Codes Also on the Budget Reports web page you will find a link to the Human Resources System (HRS) to Budget Comparison Report, and training materials for running the report. This report should also be run several times throughout the development process to assure the budget is up to date. Please contact me if you have any questions regarding these reports.

5 3270 Availability The budget system will be available from 7:00 AM to 7:00 PM Monday through Friday, excluding holidays. The System Budget Office has also requested that the budget system be available on Saturdays from 8:00 a.m. to 6:00 p.m., and Sundays from 10:00 a.m. to 6:00 p.m. the weekends of March 8, March 15, March 22, March 29, April 5, and April 12. Any other requests for weekend availability should be made at least five working days before the date needs to be confirmed. Please contact me to request other dates for weekend access. Timeline Budget materials for the Comprehensive institutions should be submitted by April 1, Budget materials for UW-Madison, UW-Milwaukee, UW Colleges, UW- Extension, System Administration, and Systemwide should be submitted by April 15, We ask that each institution have a staff member available at least two full week after the budget submission to assist with budget checkout. Questions regarding compensation related issues or allocations should be directed to Jen Goytowski (jgoytowski@uwsa.edu) or Renee Stephenson (rmstephenson@uwsa.edu). Other general budget related questions can be sent to me at gbuehler@uwsa.edu. CC: President Cross Chancellors Vice Chancellors/Provosts Senior Vice President Miller Interim Vice President Wildeck Senior Associate Vice President Al Crist Associate Vice President Freda Harris