Budget Primer October 22, 2013 Rick Straka
Macro Higher Ed Budget Issues Federal Budget Concerns Fiscal Cliff – Will Financial Aid Play a Part of Federal Budget Fix? Impact on Federal Student Services Grants Trio, Carl Perkins Student Debt Bubble State Budget Concerns Legislature Mandated Undergrad Tuition Freeze Performance Funding Accountability 5% Holdback in FY15 if Performance Measure Not Met (Appears OK as of Now)
National Education Trends Impact of Online/Hybrid Learning on Student Life and Facility Implications Commoditization of Higher Ed Compile Credits From Multiple Institutions Competition From Private For-Profit Institutions Refocus on Accountability For Outcomes Accreditation Focus on Integrated Planning, Resource Allocation and Assessment
MSU Micro Budgeting Issues Current Emphasis on Enrollment Management Budget Balance Between Recruitment and Retention Trying to Gain Larger Share of Declining HS Grads Looking Outstate and International For Students Charting the Future/CSC (Cooperative Sourcing) Office Max/P-card/Grainger Procurement Administrative Collaboration in Non-Academic Areas HLC Use of CFI for Assessment of Financial Health
MSU Budget Process Operating Budget is Primarily Incremental in Nature (Gen Fund, Student Fees, Room and Bd) Last Year’s Base +/- Incremental Change Incremental Change Aligned with Strategic Goals Mandated/Required Changes Also Considered Legislative and Bargaining Changes Challenging Biennial Budget Finalized 6 weeks prior to Biennium Start Bargaining Agreements Often Settled Late in Biennium
Gen Fund Budget Subcategories Basic Operations Base +/- Incremental Equipment 50% Base, 50% Zero Based Strategic Priority Zero Based Repair and Betterment
Fund Budgeting General Fund General Fund Budget – Tuition and Appropriation Student Activities/Health Service/Athletics Ops Student Activity Fee Funding Student Union Student Fee Funded Residential Life Room and Board Fees
What else is on your mind? Q & A What else is on your mind?
Budgeting Primer October 22, 2013 Rick Straka