Strategic Budget Planning

What does strategic budget planning mean to you? “In contrast to long-term or multi-year planning, which begins with the current status and lays down a path to meet estimated future needs, strategic budget planning begins with the desired-end and works backward to the current status.”

Models of Budgeting Short-term planning Current method Long-term planning Where we are going Reactive Decisions made in response to state appropriation Short-term, planning one year at a time Proactive Address funding impacts to programs in advance Long-term planning Collaborative Please note that neither one of these models is better than the other, they are simply different methods to approaching budget development. We believe that utilizing a longer term approach will be beneficial for budget development

The Goal To complete budget projections for five years Be sure to include: Description and cost to establish new programs/ initiatives and savings from eliminating unproductive programs Cost to enhance current programs Personnel costs Ongoing costs The budget submission must include: Budget Template for five years with budget data Budget Narrative or the Financial Highlights For colleges, such as the College of Arts and Humanities, departments in Academic Support, which report to you, will also need to be included in these projections (i.e. Band, Piano Maintenance, etc.)

New Programs Provide a description for new programs and initiatives while developing detail for costs Briefly include how these programs support the vision and mission of the company Discuss related equipment and software needs and costs, including on-going costs Additional staffing requirement

Banner Budget The budget must be set up in object by categories Personnel Contractual Services Supplies and Materials Continuous Charges Equipment In a few minutes we will go into Banner to view a budget so that you can see the different components that will make up your budget. As far as your projections, you will only need to focus on the main categories of expenditures. I will explain that in more detail shortly.

Personnel Costs In banner, personnel cost includes the following categories: Salaries, Administrative Higher Salaries, Classified Wages, General Other Benefits Personnel Development Object code 1145 is used to fund adjunct support. Please note that the only information you will need to provide for adjuncts is the number of LHEs needed. The Provost’s Office will calculate the budget needed to meet the LHE. For the other underlined object codes, you will need to project the estimated budget needed

Personnel Costs Staff Projection must include: Number of staff needed Qualifications required personnel With this information, we will be able to determine the funding needed to support permanent and temporary personnel for the next five years.

Non-Personnel Costs Focus on the following object codes: Contractual Services (e.g. includes postal and printing services, travel - includes training and travel for staff) Supplies and Materials (e.g. includes office supplies, as well as, production supplies) Continuous Charges (e.g. such as equipment rentals) Equipment (e.g. includes items, such as, computer hardware and software, R and D equipment, stationary equipment, machineries, tables, fixtures, etc.)

Non-Personnel Costs When considering non-personnel costs, look for opportunities to create efficiencies and cost- savings within your department Such as, for example, having a cooperative contract for copier services for all of units instead of separate contracts per department. The focus is not simply lowering cost, but to be the best stewards of corporate resources. Within Academic Affairs, the more we can be efficient with our non-personnel dollars, the more we will have available for our core service to educate our students

Other Things to consider Budget projections for departments should be based on actual need, for example, if one department consistently has savings each year, but another has overages, adjust the budgets so they are better aligned Describe how funding will support your programs, describe how your programs is aligned with your company priorities Demonstrate the relationship between resources and outcomes We understand that these are estimates and may change over time You may need assistance from the group heads/ team leaders