1. Strategic Budget Planning

2. 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.”

3. 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

4. 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.)

5. 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

6. 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.

7. 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

8. 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.

9. 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.)

10. 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

11. 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