TYPICAL HIGHER EDUCATION BUDGETS 1. General Operating Budget Primary budget for college: supports salaries, benefits, supplies; funded thru tax funds and tuition revenues 2. Designated Budget Generally funded thru student fees, includes Parking Services intended to be selfsupport programs 3. Auxiliary Budget Student Center, Food Service, and Bookstore activities intended to be selfsupport 4. Restricted Budget Funded by external groups via grants and contracts for specific projects 5. Capital Budget One-time funds used to support new buildings and remodels cannot be used for salaries or ongoing operating expenses 1
CAPITAL BUDGETS RECENT BUILDINGS Approved 2010 Legislative Session Approved 2016 Legislative Session Academic & Administrative Building Fall 2013 WestPointe Building Fall 2018 CAPITAL PLANNING PROJECTS COSTING GREATER THAN $1 MILLION New Building Project Idea Executive Cabinet Review and Approval Board of Trustees & Regent Approval Building Board Ranking Capital Facilities Appropriation Committee Recommendation Legislature Approval & Funding 2
CAPITAL BUDGETS Request 2017 Legislative Session Herriman Building/Campus Generally one-time in nature Appropriated through separate Legislative committee Used to fund new construction and renovations of existing space Used for capital improvement projects (i.e. roof repairs, HVAC) CAPITAL PLANNING WHAT HAPPENS AFTER THE PROJECT IS FUNDED? Architecture firm selected through RFP Programming and space needs identified Schematic design and detailed drawings created Contractor is selected through RFP & building is constructed 3
State of Utah 2017 Appropriated Budget 31% Public Education 6% Exec & Crim. Justice 13% Infrastructure & General 2% Econ Dev & Labor Nat Res, Ag., Environ. 3% Higher Education Social Services 12% 33% $14.9 Billion Budget Source: FY 2017 Legislative Appropriations Summary Utah System of Higher Education 2017 Appropriated Budget SLCC 9.6% DSU 3.7% Snow 2.1% UVU 13.0% U of U 34.5% SUU 4.4% WSU 9.4% USU 20.5% Regents 2.8% Source: FY 2017 USHE Appropriations Summary 4
How is Higher Education Funded? Three primary sources State Tax Funds Tuition Revenue Other Sources General Sales Tax Income Tax 1 st and 2 nd Tier-Tuition Rates Grants & Contracts Sales & Services Student Fees Auxiliary Revenue Salt Lake Community College 2017 Total Revenue Budget State Tax Appropriations 40.6% Grants & Contracts 16.3% Auxiliaries, Sales, Services 4.1% Other Sources 2.4% Gifts & Donations 1.3% Tuition & Fees 34.0% Capital Appropriations 0.9% Investment Income 0.4% Total Revenue Budget: $235,012,400 Source: SLCC Controller s Office 5
GENERAL OPERATING BUDGET General Operating Budgetfunded by tax funds and tuition revenues Primary budget for college: 1- salaries 2- benefits 3- equipment 4- supplies 5- travel SALT LAKE COMMUNITY COLLEGE 2017 APPROPRIATED OPERATING BUDGET BY REVENUE SOURCE Tuition & Fees 40.2% State Tax Funds 59.6% Other Sources 0.2% Total Appropriated Budget: $155,428,400 6
Salt Lake Community College Historical Tax Funds Appropriation $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- Salt Lake Community College 2017 Appropriated Operating Budget by Expenditure Function Scholarships 0.7% Public Services 0.1% Facilities 13.9% Student Affairs 10.3% Instruction 48.7% Institutional Support 19.7% Academic Support 6.6% Total Appropriated Budget: $155,428,400 7
Salt Lake Community College 2017 Appropriated Operating Budget by Expenditure Category Personnel related costs represent 79.6% of total budget Current Expense 15.1% Travel 0.4% Total Salaries & Wages 56.9% Employee Benefits 22.7% Equipment 2.4% Fuel & Power 2.5% REQUESTING NEW FUNDS Budget Request Process: Legislative & Regent Process Tuition Increase Process SLCC Informed Budget Process 8
LEGISLATIVE & REGENT PROCESS OPERATING BUDGETS Legislative statute requires that Regents: Justify institutions appropriations are consistent with needs, and the financial ability of the state; and Determine an equitable distribution of funds among the respective institutions LEGISLATIVE & REGENT PROCESS JULY -DECEMBER UU USU WSU SUU SC DSU UVU SLCC July August August - September COP OCHE Board of Regents November December Governor (Governor s Office of Planning and Budget) Executive Appropriations Committee Legislature (Legislative Fiscal Analyst) 9
LEGISLATIVE & REGENT PROCESS JANUARY -JUNE January - February LFA Higher Ed. Approp. Sub. Regents Institutions GOPB Late February Executive Appropriations March Legislature Late March Governor April Regents/ OCHE Tuition Implementation Guidelines April - June UU USU WSU SUU SC DSU UVU SLCC TUITION INCREASE PROCESS 10
FIRST-TIER TUITION INCREASE Established by the Board of Regents Uniform for 8 USHE institutions Legislative match requirement for compensation increases (75%/25%) If first-tier tuition is insufficient, then the compensation package is not fully funded SECOND-TIER TUITION INCREASE Initiated in the 2001-02 academic year Optional increases recommended by a president with approval from the Board of Trustees: Requires consultation with students and public hearings Must be adopted by the Regents Excluded from legislative appropriations process for the first year: Institutions retain authority to allocate funds consistent with discussions with students Second-tier tuition is then included in the base stateappropriated budget 11
STUDENT FEES REGENT POLICY: R510, TUITION AND FEES Regents allow institutions to increase student fees each year up to the rate at which firsttier tuition is increased Exceptions may be granted after justification is presented General student fees are subject to Board of Regents approval Course fees do not require Board approval but will be monitored SLCC Informed Budget Process It is a process that: Establishes institution-wide budget priorities Encourages institutional collaboration Gives all employees the opportunity to participate Allocates new resources to accomplish institutional goals Reallocates existing resources to accomplish institutional and departmental priorities Promotes accountability 12
ALIGNING PRIORITIES AND RESOURCES Resources Allocated/ Reallocated SLCC MISSION & VISION Institutional Goals Budget Requests Aligned with Mission, Vision, Goals Performance Metrics Department Goals Typical Budget Development Full-Time One-time Start Up Hourly Benefits Staffing Needs Equipment Ongoing Mission & Vision Institutional Goals Off-site Training Supplies Off-site Meetings Travel Current Expense Leases and Contracts Computers 13
Informed Budget Process Decision Cycle Department Meetings Priorities Developed September - October April - May Executive Cabinet Review and Final Decisions Department Priorities Discussed October - December Mission, Vision, Institutional Goals February - April Budget Meetings & Executive Cabinet Proposals Legislative Session & Tuition Hearings Division Priorities Finalized & Submitted January - March INFORMED BUDGET PROCESS All finalized budget information is shared with employees at the end of the Informed Budget Process cycle Accountability reports are required from each division receiving funds at 1 year and 2 years to ensure funds are being used to meet strategic priorities 14
BUDGET CENTER MANAGER FINANCIAL ROLE & RESPONSIBILITIES BCM is a special designation that means acceptance of financial empowerment and accountability Generally only administrator/manager level positions are BCMs BCM s act prudently in ALL financial matters to protect College interests BCM accountability cannot be delegated, but administrative assistants assist the BCM fulfill his/her role by in performing financial related tasks See list of BCM financial duties and responsibilities (handout) PURCHASING PRODUCTS & SERVICES Purchases are subject to State procurement laws Free to make small $ purchases (items < $1,000) Enter an online purchase requisition for items >$1,000 Choose the appropriate descriptive account # for purchase (Refer to the Expense Account Number Definitions & Descriptions document) Two approvals required for purchases - one should be the Budget Center Manager SLCCBuy Procurement System 15