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FISCAL ADVISORY Fiscal Advisory Committee Notes May 23, 2006
Present: Kevin Dallaire, Janet Horne, Jo Laird, Alan Selser, Betty Crockett, Becky Emery, Tim Dunn, Greig Mitchell, (Absent: Bob Long, Lisa Gray, Charlotte Rayne)
The committee met to discuss the FY 2007 operating budget. Per the charge of the committee, “The purpose of this committee shall be to review the University’s fiscal resources and to make recommendations regarding the utilization of these fiscal resources to the President’s Administrative Council. One focus includes: “reviewing and commenting on the University’s operational budget” which should follow a second focus: “examining the University’s plans and priorities in making recommendations regarding current and ongoing initiatives.”
Last week, some emails were circulated which questioned the information available related to next year’s operating budget, the timing of providing information/deliberation, and the ability of the Fiscal Advisory Committee to carry out the task of reviewing and commenting on the operational budget. Lengthy discussion ensued related to those issues as well as others.
Alan Selser provided the committee with a document of the Projected FY 2007 State Support Budget. It included Revenue along with Mandatory Expenditures and provided an available balance. This document listed proposed need with funding levels attached to each item to include: Programmatic Commitments: 1. new staff positions ($395,463) 2. reduce reliance on Auxiliaries to balance E&G ($300,000) 3. additional new faculty (enrollment) (8 positions = $572,000) 4. operating budget enhancements subdivided into: a. Provost ($148,534) b. Administration and Finance ($61,859) c. Student Affairs ($21,210) d. Advancement ($15,244) 5. faculty recruitment/retention ($230,000) 6. Non-Exempt Reclassifications ($100,000) 7. Contingent II Conversions ($78,544)
Items considered but not funded included: 1. Equipment Fund – Fleet ($62,500) 2. Integrated Marketing Plan ($250,000) 3. Equipment Fund – PCs ($225,000) 4. Ward Museum ($200,000) 5. Equipment Fund – Smart Classrooms ($125,000) 6 TETC-Supplemental Funds ($350,000) 7 IT – Legislative Audit (Security) ($125,000) 8. Electrical Loop ($87,500) 9. IT Consulting (PeopleSoft Upgrade) ($75,000) 10. Additional Operating Budget Enhancements ($206,006) 11. Additional Reduction in Reliance on Auxiliaries (335,000)
After considerable debate, the committee decided neither to endorse nor reject the proposal based on lack of information. Although the committee has no intention of micromanaging, it could not make informed decisions, which would lead to recommendations, without information on how certain items would either comply with the University’s Long Range Plan or support the business plan. For example, it appears obvious that increased faculty lines would help with increased enrollment needs, and this is stated in the document. However, $642,310 (close to one third) is proposed without a named motivation (enrollment, student services, physical plant or maintenance support, etc.). The committee does not see its role as approving positions or micromanaging academic departmental budgets. However, information related to the University priorities and whether these items support those priorities is essential for the committee to carry out its responsibilities. The committee recognizes that the deliberations only result in a recommendation and the administration still has final say as to allocations. Administration and Finance was willing to provide this information, but due to the late date, it was decided that we would improve the process for next year, but not take further action this year.
The committee made the following recommendations:
1. The Financial and Budget Communication Outline will be altered to include: a. September: Under Internal Information Available, the official financial statement will specify operating budget, capital budget, and Auxiliary) b. November: Request supplemental funding from Vice Presidents c. November: Where the request is made for supplemental funding priorities, we will add that requests for operating budget increases for the next fiscal year will also be solicited d. March: Fiscal Advisory Committee will prepare a list of supplemental funding requests e. March: Fiscal Advisory Committee will identify operating budget needs for the future f. April: Where the committee is to prepare/review supplemental lists, add: and make recommendations to the PAC g. May: Add: Fiscal Advisory Committee reviews proposal for next fiscal year operating budget and makes recommendations to the PAC
2. The Fiscal Advisory Committee will be more diligent in identifying operating budget needs for the future.
3. The Office of Administration and Finance will attempt to provide information that will allow the committee to adequately review the next FY budget proposal.
4. During July, or when it becomes available, the committee will be provided with the final FY 2007 budget. This will allow the committee to have “beginning, middle and end” information related to the budget for the year.
5. Guidelines for the committee’s operations along with guidelines for the chair of the committee and the annual report will be posted on the committee’s website.
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