Open Budget Forum January Biennium

Transcription

1 Open Budget Forum January Biennium

2 Table of Contents Eastern Washington University Open Budget Forum January 2009 Agenda...1 Governor s Budget Proposal Overview A-1 A-4 Governor s Budget Proposal Impact by Unit B-1 Resource Allocation Task Force Final Document C-1 C-55 Board of Trustees Budget Principles..D-1 D-2 Administrative Plan.....E-1 E11 FY10 Tuition Projection.....F-1 Budget Presentation G1 G14 1/12/2009

3 Open Budget Forum January 12, pm Martin 158 AGENDA 1. FO President Terrance MacMullan: Welcome and Introductions 2. Vice President Mary Voves: Update on General Budget Scenario 3. Dean Rex Fuller: Budget Process Overview 4. Provost John Mason: Distribution of Board of Trustees Budget Guidelines 5. Vice President Mary Voves: Report on Vice Presidents' Reduction Strategies 6. Provost John Mason: Questions, Suggestions and Comments

4 Eastern Washington University Proposed Budget Overview 12/19/2008 EWU (9/1/08) Governor (12/18/08) Senate (March/April 2009) House (March/April 2009) Conference (March/April 2009) Operating Budget General New Enrollments Eastern did not request any new enrollments for the biennium. Current enrollment level is 9,184 FTES. FY2010 9,184 FTES 9,184 FTES FY2011 9,184 FTES 9,184 FTES Operating Budget Governor Directed Freeze and 1% cut In August and October 2008 the Governor directed state agencies to cut gasoline consumption and freeze new hiring, out-ofstate travel, personal service contracts, and equipment purchases not related to public safety or other essential activities. A portion of this reduction continues into the biennium. FY2010 N/A -$2,048,000 FY2011 N/A Continues into FY2011 Operating Budget General Budget Reduction The Governor s budget proposal states that the research and regional colleges and universities may offer fewer courses and reduce faculty positions. Students may experience larger class sizes and fewer support services. FY2010 N/A -$5,038,000 FY2011 N/A An additional reduction of -$2,518,000 Page 1

5 Eastern Washington University Proposed Budget Overview 12/19/2008 Operating Budget Classified Salary Increases The Governor s budget provides no funding for classified employee salary increases. EWU (9/1/08) Classified increases as bargained in contract. Governor (12/18/08) Classified increases as bargained are not funded in the Governor s budget proposal Senate (March/April 2009) House (March/April 2009) Conference (March/April 2009) Operating Budget Faculty and Administrative Exempt Salary Increases The Governor s budget proposal does not include any funds for faculty or administrative exempt salary increases. FY2010 N/A 0% FY2011 N/A 0% Operating Budget Tuition Increases Resident Undergraduate (RU) tuition increase maximums. Unlimited tuition increases allowed for other fee paying categories. FY2010 and FY2011 N/A Limits RU tuition increases at Eastern to 7% over prior year for both FY2010 and FY2011 Operating Budget Math Science Teacher Endorsements The Governor s budget requires the college of education to develop a plan, by October 30, 2009, to increase the number of math and science teacher endorsements and certificates granted by the institution. The plan shall address the college's math and science teacher endorsement and certification completion goals. Plan components may address: Student advising practices, increase outreach and recruitment efforts, linkages with university mathematics and science departments, and implementation of redesigned, innovative endorsement and certification programs. To accomplish this work, enrollments may need to be shifted from low-need endorsement and certificate areas to math and science. Page 2

6 Eastern Washington University Proposed Budget Overview 12/19/2008 Operating Budget Governor s Budget Restrictions EWU (9/1/08) Governor (12/18/08) Senate (March/April 2009) The president and regents shall manage budget reductions to minimize the impact to students. In recognition of the fact that higher education is an important driver of economic development, each institution must continue to prepare graduates in certain programs with high employer demand. Eastern Washington University shall produce at least 463 graduates in the following programs: Natural resources/conservation, computer science, mathematics, engineering, physical sciences, biological sciences, and health professions/clinical sciences. House (March/April 2009) Conference (March/April 2009) Operating Budget Unfunded Requests Faculty and Exempt Salaries Campus Safety Student Success and Retention Network Infrastructure Library Collection Academic Technology Alternative Teacher Education Collective Bargaining Unit 1 Collective Bargaining Unit 2 $10,977,000 $803,000 $3,036,000 $6,354,000 $200,000 $2,006,000 $185,000 $1,366,000 $178,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Page 3

7 Eastern Washington University Proposed Budget Overview 12/19/2008 EWU (9/1/08) Governor (12/18/08) Senate (March/April 2009) House (March/April 2009) Conference (March/April 2009) Capital Budget New Appropriations Patterson Hall Construction Biology Chemistry Science Center Predesign Preventative Maintenance Minor Works- Health, Safety, Code Minor Works- Facility Preservation Minor Works- Infrastructure Preservation Minor Works- Program $28,000,000 $400,000 $2,217,000 $7,000,000 $8,550,000 $5,050,000 $21,400,000 $28,000,000 $400,000 $2,217,000 $2,500,000 $3,000,000 $1,500,000 $8,600,000 EWU Riverpoint The Governor s budget gives Eastern permission to enter into a financing contract for the Riverpoint purchase. $5,500, 000 $5,500,000 Capital Budget Reappropriations As requested by Eastern, the Governor s budget funds capital reappropriations: Patterson Hall Minor Works Health, Safety, Code Minor Works- Facility Preservation Minor Works- Infrastructure Preservation Minor Works- Program $400,000 $1,500,000 $1,750,000 $2,500,000 $3,300,000 $400,000 $1,500,000 $1,750,000 $2,500,000 $3,300,000 Page 4

8 Eastern Washington University Governor's Budget Proposal Reduction Levels Operating Budget Funds (State and Tuition) Original Budget FY2009 Percent of Total FY2010 Reduction Allocation Additional FY2011 Reduction Biennium Total Base Reduction President's Unit 1,275, % 106,300 37, ,100 Intercollegiate Athletics 2,996, % 248,000 88, ,100 Academic Affairs 53,812, % 4,442,800 1,579,100 6,021,900 Business & Finance 12,598, % 1,041, ,100 1,411,700 Student Affairs 6,065, % 503, , ,800 University Advancement 2,807, % 233,900 83, ,900 Information Resources 6,175, % 510, , ,500 GUO's, Central Reserves, Utilities (exempted) 9,300, % University Total $ 95,033, % $ 7,086,000 $ 2,518,000 $ 9,604,000 \\ \f\Operating Budget Book\OperBk \Budget Forum\Budget Reduction Scenarios xls Summary 1/8/2009 2:10 PM

9 To: Dr. Rodolfo Arévalo, President From: Rex Fuller, Dean and Task Force Chair Date: May 21, 2008 Re: Resource Allocation Task Force On behalf of the Resource Allocation Task Force (RATF), I am pleased to forward you our final report. Your charge to the RATF was: to assess and develop a zero-based or modified zero-based resource allocation model to determine a process by which Eastern s resources will be allocated. The RATF spent the bulk of fall and winter quarter reviewing budget models and from those deliberations developed a modified zero-based approach. The RATF has held campus-wide meetings and vetted its work in coming to this final report. The Task Force recommends that Business and Finance develop templates to support the budgeting process. A noted in the report, we are also recommending that the RATF reconvene at a future date to review the implementation of the model if it is adopted by the campus. The RATF is unanimous in recommending the final report to you for final consideration. However, if you have questions, the Task Force is more than willing to meet with you. We look forward to seeing this recommendation implemented. College of Business and Public Administration Office of the Dean N. 668 Riverpoint Blvd., Suite A, Room 310 Spokane, WA fax: Eastern Washington University is committed to equal opportunity and affirmative action in employment.

10 Resource Allocation Task Force Final Report May 21, 2008 Barbara Alvin Jane Button Bob Campbell Rex Fuller (Chair) Ann Le Bar Trudy Miller Annette Skaer Mary Jo Van Bemmel Mary Voves, Ex Officio Bob Zinke

11 Introduction The budgeting process at EWU is designed to give the University the ability to meet changing institutional needs, while supporting its historical mission. The budget should be strongly linked to the University s Strategic Plan. In the past EWU s budget process has been largely incremental with some limited funding tied to strategic initiatives and enrollment. While this approach may have served the University well in times of increasing enrollments, it does not allow for sufficient flexibility in times of stable or declining enrollments. The University will be facing increased competition for enrollment in the coming years. In such an environment, the campus must develop a resource allocation process that enables it to reallocate funds to support expanded and new initiatives. Resource Allocation Task Force In this environment, President Arévalo appointed the Resource Allocation Task Force to develop an allocation model that will assist EWU in managing its financial resources in an increasingly competitive higher education environment. Specifically, President Arévalo charged the task force as follows: The charge of the Resource Allocation Task Force is to assess and develop a zero-based or modified zero-based resource allocation model to determine a process by which Eastern s resources will be allocated. As its initial step the Resource Allocation Task Force (RATF) reviewed selected articles that addressed varying approaches to the budgeting process. In addition, the Presidents Executive Committee was also considering these issues. After review and consideration of the various approaches, the RATF determined that a modified zero-based model would best serve the University. The principal advantages of this approach are: 1) it allows for reallocation of funding to support key initiatives, both new and continuing, 2) it curbs mission creep by re-evaluating past budgeting commitments and requires justification of spending in accord with the University Strategic Plan, and 3) finally it is responsive to changing circumstances. Most important, the approach allows for a direct link between budgeting and the Strategic Plan. The modified ZBB provides for campus and community input by: Reviewing University Strategic Plan and key initiatives with campus community Identify funding priorities for policy based funding Establishing and communicating timelines for budget process Providing a consistent approach for making budgeting proposals Establishing budget priorities that can be vetted by the University Budget Committee, Cabinet and Board of Trustees University Budget Committee The University Budget Committee is an advisory group consisting of representation from faculty, classified staff, exempt staff, students and administrators. This body is advisory to the President and all members shall be appointed by the President based on recommendations from appropriate constituencies. The UBC shall work with the President to establish priority funding recommendations based on the University s Strategic Plan. The Budget Committee will review new budget proposals. 1

12 In time of budget reversions the committee will review budget reduction plans. In addition, the committee will participate in the development of the University funding initiatives which are submitted biennially to Olympia. Committee members are expected to represent their constituencies while applying a university wide perspective to the budget deliberations and recommendations. The committee will be chaired by the VP for Business who will have no voting rights. The Budget office will staff the committee and maintain minutes and official records of actions. The Budget Committee will meet once monthly throughout the year. Voting members of the UBC will serve two year terms. They will be rotating terms: one half of the committee membership rotates each year to allow for experience and continuity. Voting membership: Three faculty members nominated by the faculty senate One classified staff member One student representative One dean One representative from the exempt staff One representative from each of the VP areas One representative from Athletics The committee is chaired by the VP for Business who will have no voting rights. Each dean or division head prepares the necessary planning forms to submit to the VP of the appropriate division for consideration through the divisional budget process. Budget proposals are then forwarded to the University Budget Committee. The UBC holds hearings in which the units may justify their proposals. These hearings are open to the campus community. The UBC makes a preliminary recommendation to the President. Budget Process Eastern s external state budget process is a two year (biennial) process. Eastern will submit its biennial operating budget request (for FY10 & FY11) to Olympia in September This budget request is used by the Office of Financial Management to prepare the Governor s budget proposal to be released in December The Legislature will prepare a final budget during the 2009 legislative session. The final legislative budget will be signed by the Governor about mid-april Basic Process for Resource Allocation Eastern s internal strategic budget planning process coincides with the external biennial budget cycle. For example, the internal strategic budget planning process for biennium (i.e., FY10 and FY 11) began in January The internal budget planning calendar for FY10 and FY11 follows: January thru May 2008 University strategic budget directions and initiatives are discussed campus-wide to determine foci for planning FY10 and FY11. 2

13 June 2008 University budget priorities are discussed with the Board of Trustees (BOT) at the June retreat. Clear written funding priorities and goals for FY10 & FY11 are established by the President after the BOT retreat. July and August 2008 University funding goals established and shared, discussed, applied and clarified with university leadership at the Cabinet retreat. September and October 2008 Divisional budget development process. Each division holds meetings to discuss and plan FY10 and FY11 budget proposals. Divisional budget development processes may vary from simple to complex depending on the needs of the unit. Steps: Based on the Strategic Plan, funding goals and priorities and specific budget instructions for the biennium are normally distributed to the campus community no later than September. Each unit prepares two budget proposals: Stable Funding includes funding level costs for core functions, and Either Enhanced Funding includes funding level costs for basic services, and additions for enhanced services/programs to constituents. Or Decreased Funding includes funding level costs for reduced core services. (See, Appendix B for a description of stable, enhanced and decreased levels) Each budget proposal for each unit should include: a brief narrative description and justification for the budget proposals how the budget proposals support the University Strategic Plan goals the impact of no or partial funding the tie to key performance indicators and University accountability measures a proposed assessment plan Budget proposals are submitted to the appropriate VP no later than November. All divisional budget proposals must include a brief narrative description and justification, a tie to the University Strategic Plan, the impact of no or partial funding, and a proposed assessment plan. November and December 2008 Provost and Vice Presidential budget development process. Each executive level holds meetings to discuss and plan FY10 and FY11 budget proposals. Executive budget development processes may vary from simple to complex depending on the needs of the unit. All executive budget proposals must include a brief narrative description and justification, a tie to the University Strategic Plan, the impact of no or partial funding, and a proposed assessment plan. Steps: The Provost or VP reviews budget proposals within their unit and schedules forums within their unit to share and discuss the budget proposals. The Provost or VP prepares separate executive budget proposals: Each unit prepares two budget proposals Stable Funding includes funding level costs for core functions, and Either Enhanced Funding includes funding level costs for basic services, and additions for enhanced services/programs to constituents. Or Decreased Funding includes funding level costs for reduced core services. 3

14 Budget proposals for each unit should include: a brief narrative description and justification for the budget proposals how the budget proposals support the University Strategic Plan the impact of no or partial funding the tie to key performance indicators and University accountability measures a proposed assessment plan The Provost or VP communicates final executive budget proposal with all units. Budget proposals are submitted to the budget office in early January. January thru March 2009 President s Executive Council (PEC) review of executive budget proposals for FY10 and FY11. Preliminary tuition revenue projections for FY10 and FY11 (based on enrollment projections provided by Student Affairs) are provided by Business & Finance after Winter Quarter 10 th day. March and April 2009 The University Budget Committee (UBC) reviews and comments on executive level budget proposals. Late April The President, in consultation with the UBC and executive staff, makes budget allocation decisions for FY10 and FY11 using university strategic goals and priorities. Final tuition revenue projections for FY10 and FY11 (based on enrollment projections provided by Student Affairs) are provided by Business & Finance after Spring Quarter 10 th day. May 2009 First read of FY10 and FY11 budgets to Board of Trustees June 2009 Second read of FY10 and FY11 budgets and Board of Trustee approval biennial budgets are authorized and appropriated. July 2009 Strategic budget plans are implemented for FY10. Budgets are distributed to units and the new fiscal year begins. August 2009 Beginning of FY11 supplemental budget process. Priorities for supplemental budget proposals are discussed at Cabinet retreat November and December 2009 Campus begins preparation of FY11 supplemental budget revision proposals as directed by the president. January 2010 Provost and Vice Presidents review of FY11 supplemental proposals. Preliminary adjustment to tuition revenue budget for FY11 (based on enrollment projections provided by Student Affairs) are provided by Business & Finance after Winter Quarter 10 th day. Strategic budget planning cycle for begins February 2010 President s Executive Council review of FY11 supplemental proposals. March 2010 University Budget Committee review of FY11 supplemental proposals. 4

15 April The President, in consultation with the University Budget Committee and executive team, makes FY11 supplemental budget allocation decisions using university strategic goals and priorities. Final adjusted tuition revenue budget for FY11 (based on enrollment projections provided by Student Affairs) are provided by Business & Finance after Spring Quarter 10 th day. May 2010 First read of supplemental FY11 budget to Board of Trustees June 2010 Second read of supplemental FY11 budget and Board of Trustee approval. July 2010 Budgets are implemented for FY11. Budgets are distributed to units and the new fiscal year begins. August 2011 Biennial budget outcome assessment reports are submitted to the University Budget Committee and the President by the Provost and VPs comparing funding allocation with actual spending, outcome and assessment measures and executive level progress on Strategic Plan goals. Final reports will be posted to the university website and made widely available to the campus community. This accountability step is in accord with the intent of new legislation concerning accountability in higher education, which established a performance agreement for public higher education institutions. As noted in the legislation: Summary The goals and outcomes identified in a performance agreement shall be linked to the role, mission, and strategic plan of the institution of higher education and aligned with the statewide strategic master plan for higher education. (EHB 2641, Higher Education Performance Agreements, p. 3) The new allocation process described above differs in one fundamental way from the University s earlier model. The prior model did not address base budgets and assumed that base budgets would continue. The focus of the model was on meeting new enrollment demand (i.e., increased FTES over a rolling 3-year average), identification of policy dollars, and a University reserve. Such a model can be considered as a blend of formula driven budgeting and incremental budgeting. This approach worked well in periods of relatively predictable enrollment growth. However, in periods of steady enrollment, declining enrollment, and/or enrollment variations by program, a different approach is needed to allow for resources to move to the highest and best use for the University. The zero-based budget approach described above is designed to enable the University to align its funding decisions with its Strategic Plan s goals. By engaging a two-year process, reallocation decisions can be made in a manner that enables units to plan accordingly. Moreover, this approach will provide greater opportunities to enhance selected activities. The earlier model noted that a portion of the budget will be committed to fostering strategic initiatives, innovations and entrepreneurial activities that are directly related to the Strategic Plan of the University. Zero-based-budgeting affords the University more opportunity to accomplish this objective. The Task Force held as series of meetings with the campus concerning this proposal. These included: Cabinet, BOT Finance Committee, Senate Rules Committee, Senate, and three open 5

16 forums. At these meetings, the proposal was generally met with favorable comments; however, several open issues were identified. One matter concerned the need to utilize the work of the campus in identifying key performance indicators. The Task Force recommends that the earlier work be used as a foundation in establishing the performance indicators that should be used in the model. More importantly, the Task Force wants to stress the need to create a stronger linkage between the strategic planning process and budgeting. It is evident that the linkage will be crucial in determining the model s success. In conclusion, the success of the model will depend, to a large degree, on the degree to which the budgeting process allows for campus-wide dialog and participation. For this reason, the Task Force strongly recommends that the President, faculty leadership and staff leadership encourage participation in the process. In addition, the Task Force recommends that it reconvene to review the model after its first year of implementation. We recognize the complex nature of budgeting and understand that we may need to adapt the model as we engage in the process. 6

17 Appendix A Summary of zero-based budgeting as described by the Chartered Institute of Public Finance and Accounting, Zero Based Budgeting, zero-based budgeting (ZBB) consists of several steps or stages: Stage 1 Defining the Scope of ZBB Decide which parts of the organization are to be assessed using ZBB. For complex, multifunction organizations, it may be helpful to pilot the approach in a few areas where activities are closely aligned to organizational structure. It is essential that the activities to be assessed have clearly defined objectives, and wherever possible, measurable outputs and outcomes. Stage 2 Identify the resources This stage falls into 2 parts: The identification of the schedule of input resources that will be required in order to deliver the outputs The identification of the individuals who will take responsibility for assessing the various options. Stage 3 Objective matching stage It is possible that objectives may be deliverable at different service levels, and in these cases, the review should identify, as a minimum: Basic level of service (usually, in a public sector context, that which is required to meet statutory duties) Current level of service Any step changes in service Options for delivering each level may differ and will need to be identified. Clearly, it is essential to be able to analyze costs between fixed and variable elements. The outcome of these stages is a set of competing proposals that needs to be refined into the final decision items. This refining process involves evaluating the proposals and establishing priorities. Ranking the Decision Packages The decision packages should be evaluated and ranked in order of importance. Performance measurement tools including cost/benefit analysis are clearly a very important component, but it is also appropriate to apply a level of subjectivity. This is because few activities are capable of reduction to a manageable number of measures, while some ideal measures may not be practical because of difficulties in real world application, or simply because of the costs of data collection. For example, managers may believe that there would be a feelgood factor in taking a particular course of action. This could never be accurately quantified. Allocating resources The ranking list then results in a priority order for the allocation of resources. The most important activities are funded, whether they are existing ones, or new. The final budget will be made up of the decision packages that have been approved for funding, reallocated into the appropriate operational units. 7

18 Appendix B Stable Budget Proposal 1. Description and justification for the proposal. 2. How does this proposal support the University Strategic Plan s goals? Does the benefit warrant the program expenditures? Can the benefits be measured? If so, how? 3. What would happen if this was not funded? Who would be impacted? What would happen if this program were expanded? 4. How does this proposal contribute to improvement of the key performance indicators and university accountability measures? 5. What is the assessment plan for this proposal? What will be measured and how will that measure indicate success? Enhanced Budget Proposal 1. Description and justification for the proposal. 2. How does this proposal support the University Strategic Plan s goals? Does the benefit warrant the program expenditures? Can the benefits be measured? If so, how? 3. What would happen if this proposal was not funded? Who would be impacted? What would happen if this program were expanded? 4. How does this proposal contribute to improvement of the key performance indicators and university accountability measures? 5. What is the assessment plan for this proposal? What will be measured and how will that measure indicate success? Decreased Budget Proposal 1. Description of impact of decreased funding. 2. How will this impact achieving the University Strategic Plan s goals? Will the decreased funding yield meaningful financial gains? 3. How will this impact achievement of key performance indicators and university accountability measures? 8

19 Appendix C Glossary Budget Proposals: Stable a proposal that utilizes existing budget authority to achieve a unit s goals Decreased a proposal that utilizes less budget authority Enhanced a proposal that utilizes greater budget authority to enhance services and/or develop new initiatives Fiscal Years: FY10 refers to fiscal year , which begins July 1, 2009 and ends June 30, Supplemental Budget: refers to the second year budget of each biennium and the legislative process. For example, the Supplemental Budget for the biennium is the budget for The supplemental budget allows changes to funds allocated in the original capital, operating, or transportation budgets. 9

20 Appendix D The University Budget Committee The University Budget Committee is an advisory group consisting of representation from faculty, classified staff, exempt staff, students and administrators. This body is advisory to the President and all members shall be appointed by the President based on recommendations from appropriate constituencies. The UBC shall work with the President to establish priority funding recommendations based on the university s strategic plan. The Budget Committee will review new budget proposals. In time of budget reversions the committee will review budget reduction plans. In addition, the committee will participate in the development of the University funding initiatives which are submitted biennially to Olympia. Committee members are expected to represent their constituencies while applying a university wide perspective to the budget deliberations and recommendations. The committee will be chaired by the VP for Business who will have no voting rights. The Budget office will staff the committee and maintain minutes and official records of actions. The Budget Committee will meet once monthly throughout the year. Voting members of the UBC will serve two year terms. They will be rotating terms: one half of the committee membership rotates each year to allow for experience and continuity. Voting membership: Three faculty members nominated by the faculty senate One classified staff member One student representative One dean One representative from the exempt staff One representative from each of the VP areas One representative from Athletics Each dean or division head prepares the necessary planning forms to submit to the VP of the appropriate division for consideration through the divisional budget process. Budget proposals are then forwarded to the University Budget Committee. The UBC holds hearings in which the units may justify their proposals. These hearings are open to the campus community. The UBC makes a preliminary recommendation to the President. Final allocations are made after consultation with the BOT. 10

21 Frequently Asked Questions: o What are the university divisions? President (including Athletics) Academic Affairs Business and Finance Student Affairs Advancement Information Resources Appendix E RATF Campus Budget Forums Notes o o o What funding sources does the proposed budget model include? Initially Ledger 1 only (state appropriations and tuition revenues); however, it is the goal to include all funding sources in the future What is the difference between basic and core funding levels? They are the same. The task force used them interchangeably while drafting the proposal. It is the minimum funding level required by a department or unit to fulfill its mission. Is there a web site for feedback and/or additional questions? Contact Rex Fuller at rfuller@mail.ewu.edu or any of the committee members. Noteworthy Points During all Presentations: o The RATF proposal is a budgeting framework and not a rigid model. The framework will be tested, evaluated, and refined as we use it. o The Delaware Study will be used as a starting point in Academic Affairs to get a sense of where departments are in terms of enrollment. Declines in enrollment don t necessarily indicate that funding should be reduced; they may indicate that additional funding is needed. May 5, :00-2:30 Cheney: o Attendance: 18 (excluding executives (Dr. Arevalo and Dr. Mason attended) and RATF committee members) Questions and Responses: o From a faculty member in Engineering and Design: Can you give us examples of core functions? Rex Fuller: These are the absolute needs we must have to meet our missions. The enhanced service level is beyond the core function level. o o From a faculty member: What is the impact of reduced funding? Rex Fuller: Which of all of our functions could we give up? It involves discussions with those closest to the functions. From a faculty member: How can overlap between funding sources be accommodated? Rex Fuller: It is up to the individual units to determine the best use of all funding sources. 11

22 o From a faculty member in Music: She was interested in the enrollment and revenue projections and if departmental funding would be available for recruitment and retention. Rex Fuller: There has been funding this year for recruitment and retention. Dr. Mason: The Delaware Study will provide Eastern with comparative peer data on enrollment and funding levels by department. This will be a starting point for Academic Affairs discussions. The workload adjustment is a starting point; a decline in enrollment might signal the need for additional funding in a unit rather than reduced funding based upon the old RAM model. Rex Fuller: The old RAM model didn t tie back to national norms. Bob Zinke: The proposed budgeting framework is more systematic. May 6, :00-2:30 Cheney: o Attendance: 31 (excluding RATF members) Questions and Responses: o From Julie Thayer: What is different about the proposed model from the old model? Rex Fuller: The new model includes a complete review of budget authority in the biennial year and is modified zero based. It is not entirely enrollment driven as was the RAM model. The new model allows for balancing inequities and re-basing if necessary. The new model works in an environment without enrollment growth and allows for base reauthorization. o o From a faculty member: What would the narrative (stable, enhanced, decreased) look like? Rex Fuller: Everything should come forward with a unified look. From the same faculty member: What is the focus of the assessment? Rex Fuller: It will be different for each unit; there are imposed goal/assessments from the state, and KPIs will be incorporated. From Judd Case: How do we deal with growth? Rex Fuller: The Delaware Study will be a tool that helps to identify norms for comparative analysis. The model doesn t automatically redirect funding to units that are growing; however, it could redirect funding to growing units. The model allows flexibility for value based funding. The old RAM model didn t use norm comparison and automatically redirected funding to growing units and away from declining units. May 6, :30-5:00 Riverpoint: o Attendance: 6 (excluding RATF members) Questions and Responses: o From a staff member: What are the changes that we anticipating? Which data is used for the enrollment projections? Rex Fuller: We are using state and national demographic data that indicates that college enrollments will most likely continue to decline. We are past the growth stages that occurred during the last decade, and we have to strategically position the university for changes in enrollment and in the economy. o From Don Fuller of the Communications Disorders department: How will the model impact accreditation? Rex Fuller: The model will help to determine the desired cost for programs, and decisions will have to be made. Don: If a program is stable but not growing, would it be able to receive increased funding? (The Communications Disorders department is not growing due to the fact that they are unable to place additional students into practicums because the Spokane market is saturated). Rex Fuller: Programs should not grow just for growths sake. A program can remain stable and still receive additional 12

23 funding. Enrollment is just one piece of the review. It s difficult to move significant funding from one unit to another; however, the model systematically addresses this issue. o o Bob Zinke: In the current system, everything is invisible. The proposed process has decision points that are open. Transparency is very important because when the process is more open to the public, the legislature, and other constituencies they can see the affects of reduced funding to the institution. Rex Fuller: Budget alignment will make EWU budget presentations more competitive. The return on the investment of public dollars will be more apparent for dollars appropriated to Eastern than for other institutions that haven t strategically aligned their budget requests. 13

24 Eastern Washington University Proposed Biennial Budgeting Process for Fiscal Years 2010 and

25 Resource Allocation Task Force Members Barbara Alvin Faculty Jane Button Business & Finance Bob Campbell Student Affairs Rex Fuller (Chair) Ann Le Bar Faculty Trudy Miller Advancement Annette Skaer Academic Affairs Mary Jo Van Bemmel Classified Staff Mary Voves (Ex Officio) Bob Zinke Faculty 2

26 Resource Allocation Task Force Charge The charge of the Resource Allocation Task Force is to assess and develop a zero-based or modified zero-based resource allocation model to determine a process by which Eastern s resources will be allocated. 3

27 Recommended Biennial Budgeting Process Modified zero based strategic budgeting Designed to meet changing needs Linked to University Strategic Plan Enables reallocation to support expanded and new initiatives 4

28 Budgeting Principles Transparent Flexible Accountable Responsive Systematic 5

29 Biennial Budgeting Process Overview Proposed internal budget planning for FY10 and FY11: Budget planning process begins in early 2008 to allow for complete participation from all constituent groups Board of Trustee approval of biennial budgets in June 2009 Implementation of approved budgets from July 2009 through June 2011 The budgeting process ends with outcome assessment reports completed in August

30 7 Biennial & Annual Budget Timeline

31 8 Overview of Two Year Cycle

32 Budgeting Timeline Detail Planning January thru May 2008 University strategic budget directions and initiatives are discussed campuswide to determine foci for planning FY10 and FY11. 9

33 Budgeting Timeline Detail Priorities and Goals June 2008 University budget priorities are discussed with the Board of Trustees (BOT) at the June retreat. Clear written funding priorities and goals for FY10 & FY11 are established by the President after the BOT retreat. 10

34 Budgeting Timeline Detail Priorities and Goals July and August 2008 University funding goals established and shared, discussed, applied and clarified with university leadership at the Cabinet retreat. 11

35 12 DIVISIONAL BUDGET PROCESS

36 Divisional Budget Development September and October 2008 Divisional budget development process. Each division holds forums to discuss and plan FY10 and FY11 budget proposals. Divisional budget development processes may vary from simple to complex depending on the needs of the unit. 13

37 Divisional Budget Development All divisional budget proposals must include a brief narrative description and justification, a tie to the University Strategic Plan s goals, the impact of no or partial funding, and a proposed assessment plan. 14

38 Divisional Budget Development Steps: Based on the Strategic Plan, funding goals and priorities for the following biennium are distributed to the campus community no later than early September. Specific budget instructions for the following biennium are distributed to all units in early September. Budget instructions may require budget reductions. Each unit prepares two budget proposals: Stable Funding includes funding level costs for core functions, and Either Enhanced Funding includes funding level costs for core services, and additions for enhanced services/programs to constituents. Or Decreased Funding includes funding level costs for reduced core services. 15

39 Divisional Budget Development Budget proposals for each unit should include: a brief narrative description and justification for the proposals how the budget proposals support the University Strategic Plan s goals the impact of no or partial funding the tie to key performance indicators and University accountability measures a proposed assessment plan Budget proposals are submitted by early November. 16

40 17 EXECUTIVE LEVEL BUDGET PROCESS

41 Executive Level Budget Development November and December 2008 Provost and Vice Presidential budget development process. Each executive level holds forums to discuss and plan FY10 and FY11 budget proposals. Executive budget development processes may vary from simple to complex depending on the needs of the unit. 18

42 Executive Level Budget Development All executive budget proposals must include a brief narrative description and justification, a tie to the University s Strategic Plan s goals, the impact of no or partial funding, and a proposed assessment plan. 19

43 Executive Level Budget Development Steps: The Provost or VP reviews budget proposals within their unit and schedules forums within their unit to share and discuss the proposals. The Provost or VP prepares two budget proposals: Stable Funding includes funding level costs for core functions, and Either Enhanced Funding includes funding level costs for core services, and additions for enhanced services/programs to constituents. Or Decreased Funding includes funding level costs for reduced core services. 20

44 Executive Level Budget Development Budget proposals for each unit should include: a brief narrative description and justification for the proposal how the budget proposals support the University s Strategic Plan s goals the impact of no or partial funding the tie to key performance indicators and University accountability measures a proposed assessment plan The Provost or VP communicates final executive budget proposals with all units. Budget proposals are submitted to the budget office in early January. 21

45 Executive Review January thru March 2009 President s Executive Council (PEC) reviews executive budget proposals for FY10 and FY11. Preliminary tuition revenue projections for FY10 and FY11 22

46 University Budget Committee & Campus Review March and April 2009 The University Budget Committee (UBC) reviews and comments on executive level budget proposals. UBC presents to Faculty Senate and holds open campus forums. 23

47 University Budget Committee The University Budget Committee is an advisory group consisting of representation from faculty, classified staff, exempt staff, students and administrators. This body is advisory to the President and all members shall be appointed by the President based on recommendations from appropriate constituencies. The UBC shall work with the President to establish priority funding recommendations based on the University s Strategic Plan. 24

48 University Budget Committee Voting membership: Three faculty members nominated by the faculty senate One classified staff member One student representative One dean One representative from the exempt staff One representative from each of the VP areas One representative from Athletics The committee will be chaired by the VP for Business (ex officio) 25

49 Budgeting Timeline Detail Final Budget Recommendations Late April The President, in consultation with the University Budget Committee and executive staff, makes budget allocation decisions for FY10 and FY11 using university strategic goals and priorities. Final tuition revenue projections for FY10 and FY11. 26

50 Budgeting Timeline Detail Board of Trustees Approval May2009 First read of FY10 and FY11 budgets to Board of Trustees June 2009 Second read of FY10 and FY11 budgets and Board of Trustee approval. Budgets are authorized and appropriated. 27

51 28 Supplemental Budget

52 Budgeting Timeline Detail Implementation for FY10 and Supplemental Process July 2009 Strategic budget plans are implemented for FY10. August 2009 Beginning of FY11 supplemental budget process. Priorities for supplemental budget proposals are discussed at Cabinet retreat. 29

53 Budgeting Timeline Detail Campus Supplemental Budget Request November and December 2009 Campus begins preparation of FY11 supplemental budget revision proposals as directed by the President. 30

54 Budgeting Timeline Detail Supplemental Executive Review January 2010 Provost and Vice Presidents review divisional FY11 supplemental proposals. Preliminary adjustment to tuition revenue budget for FY11 Note: Strategic budget planning cycle for FY12 & FY13 begins 31

55 Budgeting Timeline Detail Supplemental Executive Review February 2010 President s Executive Council review of FY11 supplemental proposals. 32

56 Budgeting Timeline Detail Supplemental UBC & Campus Review March 2010 University Budget Committee review of FY11 supplemental proposals. University Budget Committee presents to Faculty Senate and holds campus forums. 33

57 Budgeting Timeline Detail Final Supplemental Budget Recommendations April 2010 The President in consultation with the University Budget Committee and executive staff makes FY11 supplemental budget allocation decisions using university strategic goals and priorities. Final adjusted tuition revenue budget for FY11. 34

58 Budgeting Timeline Detail BOT Supplemental Budget Approval May 2010 First read of supplemental FY11 budget to Board of Trustees June 2010 Second read of supplemental FY11 budget and Board of Trustee approval. 35

59 Budgeting Timeline Detail Implementation of FY11 Budgets July 2010 Budgets are implemented for FY11. 36

60 37 OUTCOMES ASSESSMENT

61 Budgeting Timeline Detail Outcomes Assessment August 2011 Biennial budget outcome reports are submitted to the University Budget Committee and the President by the Provost and VPs comparing funding allocation with actual spending, outcome and assessment measures and executive level progress on the University s Strategic Plan s goals. Final reports are posted to the website and made widely available to the campus community. Official end to the FY10 & FY11 biennial budgeting cycle 38

62 Changes in Budget Model and Process The new budget allocation process differs in one fundamental way from the University s earlier budget model. The prior model did not address base budgets and assumed that base budgets would continue. In periods of steady enrollment, declining enrollment, and/or enrollment variations by program, a different approach is needed to allow for resources to move to the highest and best use for the University. 39

63 Summary The modified zero based strategic budgeting approach uses a transparent and participatory process to align university funding decisions with strategic plan goals. 40

64 EWU's Board of Trustees approved the following Statement of Budget Reduction Principles at a special Board meeting December 17, EWU Board of Trustees Statement of Budget Reduction Principles The following Statement of Budget Reduction Principles underscores the Board of Trustees' commitment to the Eastern Washington University Mission, Strategic Plan and achievement of the Board of Trustees Goals: In the current unfavorable economic environment which is likely to persist, it is the responsibility of the Eastern Washington University Board of Trustees to articulate the policy basis upon which budget decisions will be made. In the face of this budget crisis, the university must develop budget priorities that will enable it to emerge from this crisis stronger and more focused. The Board of Trustees firmly believes that it is our fiduciary responsibility to guide and assist the President in this effort. The budget reduction strategy must ensure that near term decisions complement longer term planning. Eastern Washington University will use this process to affirm, re define, and refine its mission as a comprehensive institution and to focus its academic programs to prepare students for success in their professional careers while contributing as citizens to the global society. The following Budget Reduction Principles should apply no matter the size or degree of the reduction. The Principles will guide the University's budget reduction process, and as such, the President should: 1. Conduct a collaborative and transparent process involving all stakeholders of the University. 2. Place student success first protect the teaching mission. 3. Place University priorities over unit priorities, while maintaining the flexibility to meet future challenges and opportunities. 4. Lead the University community to the understanding that it cannot be all things to all people and interests. The University community must have the courage to eliminate and/or consolidate programs and efforts in order to preserve the overall quality and mission of the University. 5. Evaluate, and if feasible, implement any and all revenue enhancement strategies. 6. Continuously ask: "Is what we are doing more important than what we should be doing?"

65 7. Fully engage the knowledge, imagination, ingenuity, and creativity of the University community to arrive at innovative solutions which will address the budget shortfalls. The Board of Trustees charges the University to develop an administrative plan to implement these Budget Reduction Principles to address the following goals: Goal 1: Tighten Identify those things the institution should do to gain effectiveness and efficiencies campus wide. Determine the effect of this reduction to allow for more developed targeted strategic reductions. Goal 2: Target Develop strategic budget reductions that help the institution achieve a newly affirmed/refined/defined vision. Determine institutional strategies and actions to reach this vision and target functions, services, and programs that are not focused on achieving that vision. Goal 3: Enhance Identify opportunities where the university can adopt an entrepreneurial approach to capturing revenue, market share, and partnerships with external constituencies.

66 Administrative Plan For Implementing the Board of Trustees Budget Reduction Principles Vision, Values, and Voices Building upon our successes, Eastern Washington University has defined itself as an institution of opportunity. We acknowledge that ultimately our visibility, public awareness, and reputation as an institution is based upon the academic and professional success of our students, faculty, and staff. Keeping mindful of the significant progress we have already made, we must continue to build on the institution s mission and achieve the goals set forth by the Board of Trustees. In the face of the significant budget reductions in the coming biennia, the university must develop budget priorities that will enable it to prosper in better economic times. For example, the university must strengthen its partnerships with communities we serve. These linkages span economic, cultural, social and educational pursuits. As a regional university, Eastern will be measured by how well it brings real value to the constituencies and communities it serves. Using the recently adopted budgeting model, the current budget challenge is an opportunity to: Affirm, develop, and refine who we are as an institution Engage staff, faculty, and students, and the Board of Trustees in dialog that will discover appropriate budget decisions and strategies Re affirm the mission of the university, and strengthen our niche in the higher education arena As we affirm, re define, and refine this definition of who we are as an institution, we need to continuously ask, Is what we are doing more important than what we should be doing? In this environment of limited resources, the primary considerations center on the work of the university that must continue no matter what the resource level. These considerations include: Our primary target audience Our newly defined vision The programs that serve this vision The services and support required to support this vision What is essential to attaining the vision Attainment of the institutional mission and the Board of Trustees Goals In addition, the budget process must consider the Mission and Strategic Goals (Appendix 1) of the university and the Goals set forth by the Board of Trustees (Appendix 2). These form the basis for careful decision making to ensure that the university will be poised to move forward in the years following these trying budget times. 1 P age

67 Budget Reduction Principles The following Budget Reduction Principles will guide the Budget reduction process: The university places student success first protect the teaching mission The university priorities will take precedence over unit priorities while maintaining the flexibility to meet future challenges and opportunities Conduct a collaborative and transparent process involving all stakeholders of the university The university cannot be all things to all people; we must have the courage to eliminate or consolidate efforts in order to preserve the overall quality of the institution Evaluate revenue enhancement strategies Continuously ask, Is what we are doing more important than what we should be doing? 2 P age

68 Achieving Budget Goals With Institutional Mission, Vision, and Strategic Goals, the Board of Trustees Goals Reduction, and Budget Reduction Principles in mind, we will determine budget cut recommendations to achieve these goals: Goal 1: Tighten First, we tighten the belt, cut at the margins, things we should be doing any way to become more efficient: Identify those things the institution should do to gain effectiveness and efficiencies campuswide. Target 5% 10 % budget reductions Determine the effect of this reduction to allow for more developed targeted strategic reductions. The following strategies will help us in accomplishing this goal: Strategy 1: Efficiency and Effectiveness Action 1: Analyze and realign all IT maintenance and licensing contracts to achieve cost savings and effectiveness Action 2: Evaluate appropriate level of academic support services Action 3: Evaluate and align academic budgets with enrollments and norm based workloads Action 4: Analyze and realign/centralize all IT support functions on campus Action 5: Analyze and realign/centralize all marketing resources and functions on campus Action 6: Review and coordinate student recruitment efforts Action 7: Review conversion of recruitment documents to web based advertising Action 8: Complete implementation of Degree Audit System (DARS) Action 9: Evaluate and realign Academic Personnel into a single University personnel office Action 10: Evaluate retirement incentives for faculty and staff to achieve permanent budget savings Action 11: Analyze campus conservation (i.e. Prioritized service zones for most heavily to least used areas campus, reduced irrigation costs, reduced heating and cooling costs, reduced costs of paper usage Action 12: Evaluate service and support functions that might be delivered in an alternative, more cost effective manner Action 13: Evaluate service and support functions that might result cost savings through job sharing Action 14: Work with Olympia to reduce regulations that drive extra work and bureaucracy Action 15: Evaluate and streamline business practices 3 P age

69 Action 16: Analyze and eliminate unnecessary under enrolled course offerings Action 17: Analyze and eliminate unnecessary reassigned time for faculty Action 18: Analyze and eliminate unnecessary overload for all employees Action 19: Analyze and realign units under reduced leadership with reduced support staff Action 20: Continue centralization of course scheduling to improve utilization of facilities Action 21: Analyze and eliminate redundant evaluation processes Strategy 2: Define Essential Services Action 1: Evaluate and eliminate maintenance service functions that are not business critical/essential for possible cost savings Action 2: Analyze appropriate level of maintenance service and appearance for campus Action 3: Analyze the appropriate level of essential academic support services Action 4: Review and realign all IT support functions on campus Action 5: Analyze the appropriate level of Advising Services (i.e. undeclared and majors) Action 6: Analyze and pare course offerings to focus on essential courses to meet student needs Action 7: Evaluate and eliminate expendable community outreach activities Action 8: Evaluate and eliminate nonessential accreditations 4 P age

70 Goal 2: Target Once we have identified the Tighten goal, develop strategic budget reductions that help the institution achieve a newly affirmed/refined/defined vision: Determine institutional strategies and actions to reach this vision Target functions, services, and programs that are not focused on achieving that vision. The following strategies will help us in accomplishing this goal: Strategy 1: Initiate a process that will allow the university to affirm, re define, and refine its mission as a comprehensive institution and to focus its academic programs to prepare students for success in their professional careers while contributing as citizens to the global society. Action 1: Develop a focused strategic planning process to accomplish this task Strategy 2: Maintain and strengthen the core mission of EWU and cut non core activities and programs Action 1: Review curriculum for possible re design and/or elimination Action 2: Evaluate viability of off campus locations (i.e. Bellevue, etc.) Action 3: Analyze and reduce number and frequency of extracurricular events Action 4: Revisit the level of commitment to first generation students Strategy 3: Ensure increased production of graduates for Washington s projected workforce needs Action 1: Evaluate the demand for programs that meet Washington s workforce needs Action 2: Review level of career counseling available to students Action 3: Analyze commitment of resources to meet performance targets for graduates in high demand fields. 5 P age

71 Goal 3: Enhance Identify opportunities where the university can adopt an entrepreneurial approach to capturing revenue, market share, partnerships with externally constituencies. The following strategies will help us in accomplishing this goal: Strategy 1: Work with elected officials in crafting solutions that will help mitigate the effects of the State s current financial difficulties on EWU Action 1: Explore, in cooperation with the other 4 year Universities, different tuition models (i.e. differential tuition or changes to the plateau based model) Action 2: Advocate for flexibility in both tuition and implementation of spending reductions Action 3: Fully utilize the tools that are authorized by the legislature Strategy 2: Identify areas where fees for services are appropriate Action 1: Review fee proposals for Student Affairs activities, such as orientation fees, summer program fees, etc. Action 2: Review and develop a fee for or eliminate use of credit cards for tuition payments (costs $400,000 a year in service fees from the credit card companies) Strategy 3: Focus self support projects on new markets rather than on regularly matriculated students Action 1: Evaluate and develop new online and distance certificate programs Action 2: Analyze and target summer offerings to new audiences instead of ongoing students Action 3: Analyze and eliminate or curtail self support operations that fail to balance expenses and revenues Action 4: Seek new grant opportunities to underwrite endowed professorships Strategy 4: Review the need for leased space Action 1: Review and realign all existing lease contracted Strategy 5: Increase EWU s enrollment Action 1: Review and refocus recruitment and retention efforts to the newly defined mission and vision Strategy 6: Utilize Division I athletics as a vehicle to enhance the visibility, image, and value of Eastern Washington University 6 P age

72 Action 1: Leverage athletics in the recruitment and retention of students at Eastern Washington; Action 2: Evaluate possible new marketing materials that promote EWU s unique position as the state s only regional comprehensive participating in Division I athletics; Utilize EWU s Division I successes in recruiting materials as well as information materials to the state legislature Action 3: Evaluate the use of athletics as a key component in student life initiatives at EWU Action 4: Work collaboratively with Alumni Affairs to create synergy between athletic contests and alumni activities Action 5: Evaluate home athletic contests as a way to involve and inform key constituencies of Eastern Washington Action 6: Maintain accordance with all federal laws as well as NCAA Division I standards and bylaws Strategy 7: Enhance the diversity of the campus in all its aspects, (e.g., students, faculty, staff, advisory boards) Strategy 8: Enhance the visibility of EWU Spokane Action 1: Secure additional space for programs at EWU Spokane 7 P age

73 Outcomes By accomplishing the above defined Budget Goals, the institution will achieve the following outcomes: Affirm, refine, or redevelop institutional mission and vision Achieve cost savings by reducing unnecessary contracts Achieve cost savings from re designed, more effective, contracts Centralize Services without undo loss of quality Realize more effective operations Realize cost savings from reduced duplication of effort (systems and staff) Achieve a balanced, equitable approach to allocation of resources Increased standards, formalized processes, and enhanced quality Prioritize resource investment Achieve cost savings, effectiveness from reduced duplication of effort Achieve cost savings from reduced publication costs Achieve permanently reduced staffing and permanent salary savings 8 P age

74 Appendix 1 Eastern Washington University s Mission Eastern Washington University is a student centered, regionally based, comprehensive university. Its campus is located in Cheney, within the Spokane metropolitan area, with additional learning centers in the region and elsewhere in Washington state. Its mission is to prepare broadly educated, technologically proficient and highly productive citizens to attain meaningful careers, to enjoy enriched lives, and to make contributions to a culturally diverse society. Strategic Goals Goal I: Goal II: Goal III: Goal IV: Goal V: Goal VI: A rigorous & engaged student learning experience An academic community culture that supports and engages faculty and staff throughout their careers An institution wide commitment to community engagement that benefits our students, the university, the region and the world. Grow resources and capacity Allocate resources, capacity and people Manage resources, capacity and people 9 P age

75 Appendix 2 EWU Board of Trustees Goals Enrollment/Retention/Student Success The continued viability of Eastern Washington University is dependent on a number of success factors that enhance the opportunities for students. As a result, the Board of Trustees will support the efforts to assess student recruitment, retention and educational programming strategies: To enable students to graduate within the defined University goals To retain and graduate a larger and more diverse student population As a part of the overall focus on student success, it is important that efforts be made to recruit and retain a nationally recognized, diverse, student centered faculty and staff that represent the diverse student population Diversity The Board acknowledges that there is much more work to do to achieve our vision for a university community that is inclusive, respectful and supportive of all its members; a community that celebrates its diversity and its unity; a community that expects honesty; and that provides and environment for safe interaction among its members. During the year, the Board sets as one of its goals the achievement of measurable improvements in diversity representation among students, faculty, administration, committees, boards and contractors; the achievement of measurable improvements in the successful advancement; promotion and longevity of underrepresented populations within these ranks, and achievement of measurable improvements in the campus climate for diverse and underrepresented populations. Riverpoint/Spokane The time has come to move more decisively to articulate a clear and detailed plan for EWU s course offerings at the Riverpoint Campus. The Riverpoint Campus vision needs to be further refined and clarified. The Board supports efforts on behalf of the University and the Greater Spokane Area to refine and clarify Eastern s role at the Riverpoint Campus by: Assessing which programs should be offered in Spokane Developing a timeline for the alignment of programs back to Cheney Campus and the offerings at the Riverpoint campus Developing a comprehensive plan for the buildings/space needed to accomplish the immediate and long term goals The Board believes that it is important that the University secure a permanent base on the Riverpoint Campus. We direct the President to move forward with the purchase of a portion of the Spokane Community College Building. 10 P age

76 Raise awareness and visibility of Eastern Washington University Creating awareness, visibility and emphasizing differentiating attributes are key components in recruitment and retention of students, faculty and staff, legislative agendas and other government initiatives, fund raising and alumni engagement. The Board encourages and supports the efforts of University leadership, during the year to: Identify those attributes that differentiate Eastern from other educational institutions in the Greater Spokane area and in the State of Washington. (Uniqueness, greater quality, increased opportunity, etc.) Conduct an aggressive effort to tell our story locally and statewide, using all the vehicles available. ( Our story is who we are, what we are trying to do, and the differentiating attributes. Using all the vehicles available means doing more than just using paid media, public relations, marketing and printed materials. It s using alumni, speakers, Trustees, volunteer boards, third parties, etc.) Increase the number of relationships and the understanding of individuals and organizations which could help to determine the University s future. (Legislators, civic leaders, potential donors, key partners, Westsiders, etc.) 11 P age

77 FY 2010 Preliminary Tuition Projection 7% RU increase FTES 9,000 FTES chg from FY09 - Headcount 9,162 FTES/HC Conversion Rate Bldg Fee & Operating fee chg: RU 7.00% NU 0.00% RG 0.00% NG 0.00% Waivers: 18.50% Uncollectible: 1.20% Winter 2008, Spring 2008, Fall Enrollment Mix 2008 EWU Grant: 3.50% Gross Operating Fee Revenue 47,330,665 Investment Income 750,000 Total Revenue 48,080,665 Less: Uncollectible (567,968) Tuition & Fee Waivers (8,651,100) EWU Grant Program (1,333,906) Total Deductions (10,552,974) Net Collected Tuition and Fees Revenue 37,527, Budgeted Tuition 35,729,000 Balance Available 1,799,000 \\ \f\Tuition\FY10\FY10 Tuition Projections.xls FY10, /8/2009 2:16 PM

78 Open Budget Forum Presentation, January 12, 2009 Eastern Washington University Open Budget Forum January 12, General Budget Update 2 1

79 Open Budget Forum Presentation, January 12, 2009 Governor s Budget Proposal Higher Education No new enrollments Overall reductions cuts in FY2010 and FY2011 approximately 13% of state funding Tuition increases: 7% max for RU No salary increases for faculty, classified, and administrative exempt employees No authorized fee increases 3 Legislative Timeline Session opens January 12, 2009 Legislative session days House and Senate budget proposals and Conference (final) budgets are usually released at the very end of the session Session to close April 26, 2009 Special sessions may extend the regular session timelines 4 2

80 Open Budget Forum Presentation, January 12, 2009 Sources of Operating Budget Fund Operating Fees 19% Total $ million Dedicated Local Fund % State Operating appropriation 30% Service Funds 3% Auxiliaries 16% Sponsored Programs 8% Source: FY2009 Annual Budget Document - Revenues Scholarships and Fellowships 11% 5 Ledger 1 Budget Sources State funds Operating Fee (Fund 149) Total Sources Uses President s Unit Intercollegiate Athletics Academic Affairs Business & Finance Student Affairs University Advancement Information Technology GUO s, Central Reserves, Utilities Total Uses Source: FY2009 original budget FY2009 Original Budget $59,304,000 35,729,000 $95,033,000 FY2009 Original Budget $1,275,862 2,996,234 53,812,374 12,598,689 6,065,798 2,807,931 6,175,118 9,300,994 $95,033,

81 Open Budget Forum Presentation, January 12, 2009 Internal Reduction Exercise FY2009 Original Budget FY 2010 Reduction Amount FY2011 Additional Reduction Biennium Total Base Reduction President s Unit $1,275,862 -$106,300 -$37,800 -$144,100 Intercollegiate Athletics $2,996, ,000-88, ,100 Academic Affairs Business & Finance 53,812,374 12,598,689-4,442,800-1,041,600-1,579, ,100-6,021,900-1,411,700 Student Affairs 6,065, , , ,800 University Advancement 2,807, ,900-83, ,900 Information Technology 6,175, , , ,500 GUO s, Central Reserves, Utilities 9,300, Total $95,033,000 -$7,086,000 -$2,518,000 -$9,604,000 7 Tuition Authority 1% increase in resident undergraduate net tuition generates about $257,000 7% increase in resident undergraduate net tuition generates about $1,799,

82 Open Budget Forum Presentation, January 12, 2009 Board Oversight The Board of Trustees (BOT) has established a sub- committee to serve as a liaison with Eastern s administration on budget issues. Kris Mikkelsen, Chair Gordon Budke Paul Tanaka 9 Budget Process Overview 10 5

83 Open Budget Forum Presentation, January 12, 2009 Eastern s Budget Process Eastern s new strategic biennial budgeting approach uses a transparent and participatory process to align university funding decisions with strategic plan goals. 11 Budget Process Timeline Budget planning process began in early 2008 to allow for complete participation from all constituent groups Divisional and executive level budget planning began, Fall 2008 Presidents executive committee budget review, Winter 2009 University Budget Committee (UBC) review, campus open forums, UBC recommendations to President, Spring 2009 Board of Trustee approval of biennial budgets, June 2009 Implementation of approved budgets from July 2009 through June 2011 The budgeting process ends with outcome assessment reports completed, August

84 Open Budget Forum Presentation, January 12, 2009 University Budget Committee (UBC) The University Budget Committee is an advisory group consisting of representation from faculty, classified staff, exempt staff, students and administrators. This body is advisory to the President and all members shall be appointed by the President based on recommendations from appropriate constituencies. The UBC works with the President to establish priority funding recommendations based on the University s Strategic Plan. 13 UBC Membership UBC Membership: three faculty members nominated by the faculty senate a classified staff member a student representative a dean a representative from the exempt staff a representative from each of the VP areas a representative from Athletics chaired by the VP for Business who has no voting rights. 14 7

85 Open Budget Forum Presentation, January 12, 2009 Overview of Two Year Cycle 15 Board of Trustees Budget Guidelines 16 8

86 Open Budget Forum Presentation, January 12, 2009 BOT Budget Reduction Principles Conduct a collaborative and transparent process involving all stakeholders of the University Place student success first protect the teaching mission Place university priorities over unit priorities, while maintaining the flexibility to meet future challenges and opportunities Lead the university community to the understanding that it cannot be all things to all people and interests. The university community must have the courage to eliminate and/or consolidate program and efforts in order to preserve the overall quality and mission of the university. 17 BOT Budget Reduction Principles Evaluate, and if feasible, implement any and all revenue enhancement strategies Continuously ask: Is what we are doing more important than what we should be doing? Fully engage the knowledge, imagination, ingenuity and creativity of the university community to arrive at innovative solutions which will address the budget shortfalls. 18 9

87 Open Budget Forum Presentation, January 12, 2009 BOT Budget Reduction Goals Goal 1: Tighten Identify those things the institution should do to gain effectiveness and efficiencies campus-wide. Determine the effect of this reduction to allow for more developed targeted strategic reductions. Goal 2: Target Develop strategic budget reductions that help the institution achieve a newly affirmed/refined/defined vision. Determine institutional strategies and actions to reach this vision and target functions, services, and programs that are not focused on achieving that vision. 19 BOT Budget Reduction Goals Goal 3: Enhance Identify opportunities where the university can adopt an entrepreneurial approach to capturing revenue, market share, and partnerships with external constituencies

88 Open Budget Forum Presentation, January 12, 2009 Administrative Plan for Implementing the Board of Trustees Budget Reduction Principles 21 Vision, Values, and Voices The current budget challenges are an opportunity to: Affirm, develop and refine who we are as an institution Engage faculty, staff, students, and the Board of Trustees in a dialog that will discover appropriate budget decisions and strategies Affirm the mission of the university, and strengthen our niche in the higher education arena 22 11

89 Open Budget Forum Presentation, January 12, 2009 BOT Budget Reduction Goals Goal 1: Tighten Strategy 1, Efficiency and effectiveness Strategy 2, Define essential services 23 BOT Budget Reduction Goals Goal 2: Target Strategy 1, Initiate a process that will allow the university to affirm, re-define, and refine its mission as a comprehensive institution and to focus its academic programs to prepare students for success in their professional careers while contributing as citizens to the global society. Strategy 2, Maintain and strengthen the core mission of Eastern and cut non-core activities and programs Strategy 3, Ensure increased production of graduates for Washington s projected workforce needs

90 Open Budget Forum Presentation, January 12, 2009 BOT Budget Reduction Goals Goal 3: Enhance Strategy 1, Work with elected officials in crafting solutions that will help mitigate the effects of the state s current financial difficulties on Eastern Strategy 2, Identify areas where fees for services are appropriate Strategy 3, Focus self-support projects on new markets rather than on regularly matriculated students Strategy 4, Review the need for leased space Strategy 5, Increase Eastern s enrollment 25 BOT Budget Reduction Goals Goal 3: Enhance (continued) Strategy 6, Use Division I athletics as a vehicle to enhance the visibility, image and value of the university Strategy 7, Enhance the diversity of the campus in all its aspects (e.g. students, faculty, staff, advisory boards) Strategy 8, Enhance the visibility of EWU Spokane 26 13

91 Open Budget Forum Presentation, January 12, 2009 Panel Discussion Questions, Suggestions and Comments