New Budget Process Overview

Transcription

1 New Budget Process Overview 1

2 Millions $0 $20 $40 $60 $80 $100 $120 State Budget Reductions : FY 08/09 to 16/17 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 $16.6 $16.6 $20.7 $37.3 $24.8 $62.2 $20.2 $8.1 $82.4 $82.4 $82.4 $8.1 $90.4 $2.0 $98.5 $ /09 09/10 10/11 11/12 14/15 15/16 16/17 Total The cumulative state budget reductions from FY 08/09 to 16/17 total $100.5 million 2

3 SUNY 2020 Tuition & Fees The growth in tuition revenue from 10/11 to 15/16 was $99 million $69 million of this was related to the SUNY 2020 tuition rate increases $30 million was driven by enrollment increases at the higher tuition rates Academic Excellence Fee revenue grew to $8.7 million Data Source: Budget Office 3

4 2,000 1,800 1,600 1,400 1,200 1, How has personnel been impacted? State Employee FTEs: Regular & Temporary Service 1,825 1,854 1,739 1,748 1,795 1,610 1,628 1,661 1,544 1,543 1,320 1,372 1,407 1,460 1,338 1, /09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Instructional Non-Instructional Graduate Students Data Source: Pyramid, Payroll 17 4

5 Millions Historical State Expenditures: FY 08/09 to 15/16 $450 $400 $350 Negative 1.3% Compound Annual Growth Rate [08/09 to 11/12] Positive 6.7% Compound Annual Growth Rate [08/09 to 11/12] $300 $250 $200 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Data Source: Budget Office 5

6 Why a new budget process? External challenges No current rational tuition plan Currently unfunded contractual costs No current increase in State tax support No maintenance of effort (MOE) Internal challenges Decreasing cash balances Decreasing State rollovers Byzantine process masking deteriorating issues 6

7 Millions Internal Fiscal Environment VP State Rollovers $30 $20 $10 $0 ($10) ($20) ($30) FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Est. 16/17 Est. 17/18 The VP State rollovers at the end of 15/16 was negative $4.7 million Data Source: Budget Office 7

8 Millions $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Internal Fiscal Environment Historical IFR & SUTRA Cash Balances vs. SUNY s Recommended Minimum & Maximum Unrestricted Reserves 6/30/09 6/30/10 6/30/11 6/30/12 6/30/13 6/30/14 6/30/15 6/30/16 IFR - Income Fund Reimbursable SUTRA - State University Tuition Reimbursable 10% Unrestricted Reserve Minimum 25% Unrestricted Reserve Maximum Data Source: Pyramid, Budget Office 8

9 Tough fiscal times will require difficult choices Guiding principles of the new budget process New year budgets will be set and finalized via this process; non-emergency off-cycle requests will not be considered until the next budget development process New requested investments must be in support of furthering the university s strategic priorities Budget submissions should be compatible with the assumptions in the budget call letter Each unit s operating expenditure plan may not exceed its anticipated resources; units are encouraged to use tools developed during the Project 50 Forward process to reduce expenses All IFR accounts must be in compliance with the campus s IFR Deficit Policy Position requests for new or expanded functions will be considered annually during the budget process review period; the Budget Working Group will continue to review and evaluate requests to refill existing positions For each unit, the budget development process must run concurrently with the budget management process Structural deficits must be eliminated 9

10 What are the benefits of the new budget process? Aligning the budget to the university s strategic priorities Synchronizing VP budget requests with the campus financial planning timeline Producing a timely, balanced, comprehensive budget Improving transparency Call letter with planning assumptions and guidelines Presentations to the Budget Working Group Presentations and funding requests will be shared with CAPRA and University Council Support for VP financial leaders Monthly meetings Improve communication Bring up challenges / propose solutions Share best practices Additional management reports Addition of historical actuals into the Campus Budget Module Improving accountability 10

11 Aligning the budget to the university s strategic priorities Raise the four year graduation rates Maintain our commitment to diversity and access while providing the highest quality education Incentivize growth in sponsored research Strengthen institutional effectiveness and efficiency 11

12 Jan 9 Budget call letter is distributed New Budget Process Timeline Jan 30 Campus Budget Module (CBM) is open for units to input their budget Feb 20 All budget preparation documents are due: March Completed budget in CBM Narrative Presentation file Budget request form for new funding (if applicable) The Budget Office will review of all budget preparation documents (completed CBM budgets, narrative, presentation file and supplemental budget request forms) The Accounting Office will review of the IFR budget requests Vice Presidents will present their budgets to BWG The Budget Office will update Central Funds and produce the anticipated campus funding levels for the new year March 27 the Budget Office sends CAPRA and University Council each VP area s prioritized budget requests and presentation file April 14 feedback from CAPRA and University Council is due April 24 final funding decisions are due from the President and BWG May 5 the Budget Office will notify impacted areas of the approved adjustments to the new year budget May 31 deadline for divisional finance leaders to update CBM to include the budget adjustments 12