Playing Ball in Tough Economic Times Impact of Budget Reductions on Your Campus MASFAP Fall 2005 Conference November 7, 2005 Presenter: Dan Mann University of Illinois at Urbana-Champaign

Understand the Budget Reduction Process Understand who is going through this exercise. Understand what budget reduction scenarios are being considered. Understand when the budget reductions are scheduled to occur and whether they are temporary or permanent reductions. Understand why the budget reductions are being considered or mandated. Know the politics involved in this process.

Understanding “Who” All units/some units All levels/some levels Academic/non-academic Mandated (core) functions/ non-mandated (discretionary) functions

Understanding “What” Differential/across-the-board reductions Operating/program/both Salaries/other-than-salaries Programs/services/activities

Understanding “When” Timing of cuts - Now (this fiscal year) - Next fiscal year - Over multiple years Permanent (base)/temporary

Understanding “Why” External reductions (state or federal shortfalls) Endowments not earning enough Enrollment decline Downsizing/rightsizing To provide funds for new/other priorities Understand the politics

Know and Understand the University’s Priorities Most universities want budget reduction plans that do the following: Maintain consistency with the university’s mission statement and strategic plan. Protect programs, activities and services that are central to the academic mission. Reflect commitment to diversity.

Assess Office Priorities Against the University’s Priorities How does your office’s mission statement and strategic plan compare to the university’s mission statement and strategic plan? What are your strengths, weaknesses, opportunities and threats?

Gather Data! Budget detail Personnel data Compilation of programs, services and activities provided Office data Information from peer schools

Know Your Operating Budget What is the source of your operating budget? State funds Tuition funds Federal administrative allowance funds Short term loan funds JLD funds Foundation/Other funds

Know Your Operating Budget By income/expenses By function By activity By service Personnel (by category) Postage Printing/duplicating Data Processing Telecommunications Travel Professional development Contractual services Commodities Equipment

Know Your Financial Aid Program (Awards) Budget What is the source of your program budget? State funds Tuition Institutional/Foundation scholarships Institutional loans Institutional grants Institutional employment

Know Your Personnel Data Number and cost of staff Full-time/part-time staff Graduate assistants Student employees Union/non-union Exempt/non-exempt Professional/clerical

Compile An Inventory of Programs, Activities & Services Develop a comprehensive inventory of what your office does. Prepare a spreadsheet to analyze this inventory. Analyze the inventory by cost (if available), number of staff involved, mandated or discretionary, university’s priorities, etc.

Other Data About Your Office Know how many students you serve. Know the number of dollars and number of programs administered. Share student survey results. Share program review results. Share student success stories. Use your financial aid advisory committee.

Gather Information From Peer Schools Organizational charts Number of staff Office budgets Functions/services provided Dollars administered Students served Benchmarking data

Review Data Determine who should be involved in this review (all staff, committee, management staff, director only, financial aid advisory committee, other university colleagues, external efficiency experts). Develop some guidelines for review and determine what restraints (if any) should be employed.

Things to Consider Customer service/customer-driven changes Streamlining/reorganizing/combining Office inefficiencies/duplication of effort Workflow processes - 90% of problems are process, 10% people - Attack processes, not people Technology-driven or people-driven Staffing (full-time/part-time)

Things to Consider Know what other colleagues are doing Outsourcing Transfer functions to other offices Travel/professional development Telephones/long distance phone calls Office supplies

Consider Options Do you have uncommitted resources? Be creative! Think outside the box! Determine impact of each option realizing both the short-term and long-term impact. Realize that long-term reductions may require higher short-term expenditures. Staffing (organizational staff/current personnel)

Consider Options Technology improvements may require students to conduct more of their business online and have less human contact. Public perception of office may change. Staff workloads may change. Workflow processes will likely change. Organizational structure may need changes.

Determine Plan Be careful what you propose, it may happen! Market (sell) your office and make sure that the impact and ramifications are made known. Determine how to share the plan with your staff.

Don’t Strike Out! When the University gives you lemons, make lemonade! Try to be positive and view this as an opportunity to improve your operation and service to students. These are difficult decisions. You will likely not make any new friends during this process! Be creative! Try to do the right thing(s)! Good luck!

Contact Information Dan Mann Director of Student Financial Aid 620 East John Street University of Illinois at Urbana-Champaign Champaign, IL phone: 217/