1. Office of Budget and Planning 2.2.18
BB2.0 Training for Deans
Office of Budget and Planning
2.2.18

2. University Base Funding (sometimes called permanent)
Is considered an ongoing source of funds for budget planning and management
Base funding to Boise State is composed of:
General state appropriation which is determined by the state legislature.
Tuition revenue, which is based on our projection of enrollment and tuition rates per student.
Total base funding for the university normally does not change during the fiscal year.
However, were the state to end up in a budget crisis, the State Legislature may impose a mid-year budget cut to reduce the university’s base budget.
If actual enrollment falls short of the university’s base budgeted enrollment, the university may want to choose to reduce our base budget to ensure we don’t spend more money than we have available.

3. Types of College Funding
Source of Funds
Budget Type
Base Funds (appropriated: tuition, some student fees, and state general fund)
Base Budgets (or Permanent Budget - part of the Appropriated Budget). Always equal to Base Funds.
One-Time Funds (appropriated: tuition, some student fees, online program fees)
Carryforward plus One-time Budget Transfers (part of the Appropriated Budget)
Course fees, F&A from grants, some student fees, gifts, spending from endowment earnings, self-support academic program fees, etc.
Local Budgets
Health Center in COHS
Auxiliary Budgets
Outside entities awarding the grants / contracts
Research Grants and Contracts

4. Base Funding for Colleges
Base funding is primarily used for hiring regular base funded positions (sometimes called permanent) such as T/TT faculty, clinical faculty, full-time lecturers, and admin / professional / staff positions.
Regular positions require an ongoing source of funds to support the positions.
Exceptions are now made based on new budget protocols recently implemented: In circumstances where future funding is highly likely and with approval, online program fee revenue and salary savings from grant buyouts can be considered an ongoing source of funds and used to fund regular positions.
Projected salary savings from turnover are not considered an ongoing source of funds.
As context: 84% of Boise State’s FY18 base budget is for positions.
Base funding can also be used for ongoing needs, such as ongoing basic operating expenditures.

5. BB2.0 Approach to Base Funding for Colleges
Base Funding for the College
Decision Based
(changed only through decisions made during regular University-wide Annual Budget & Planning process)
Subvention
reflects acknowledged differences in historical allocations, cost of instruction, and/or college mission (e.g., amount of research)
A 260
GA / TA
BB2.0 Formula Based
SCH
Majors
Degrees

6. Why are BB2.0 funds distributed at the College level?
Establishing an acceptable level of quality is very challenging, difficult to assess, and must be partially informed by the resources available. However, we need to do so in order to continue to attract students.
Determining capacity is also very difficult. However, given our limited resources, we need to do so in order to fully utilize the resources available to us.
B2.0 funds should be used to cover the educational costs for your students and these costs vary across programs.
Deans will need to make an informed decision on these factors in order to budget appropriately for the educational services they are providing for their students.

7. Types of Base Funding Subvention: Decision based
Changes during the regular university-wide annual budget planning process
Increases occur through:
Approved strategic budget requests
CEC / benefit rate increases
State funded line items
Special allocations approved by the President
Decreases occur through:
Budget reductions / reallocations
Benefit rate reductions
Can be changed through “permanent” budget transfers during the year
A260 funds: determined by the Provost Office and budgeted separately by College
GA / TA funds (505, 506, 507 accounts): budgeted directly in College base budgets
BroncoBudget 2.0 Revenue, based on SCH, majors, and graduates

8. BB2.0 portion of Base Funding
Bronco Budget 2.0 (Formula based) funding
Changes for the upcoming fiscal year would occur during the annual BB2.0 budget planning process.
Changes would be based on changes to the College’s revenue-generating enrollment compared to the prior year enrollment.
Early enrollment numbers will inform the projection.
Budgeted enrollment (that is, the next FY’s funding from BB2.0) is a strategic decision based on past enrollments, projected enrollments, and potential changes in enrollments from new programs. Agreement required from Provost, Budget, and College
For FY18, the Office of Budget and Planning used actual enrollment to determine your FY18 budgeted enrollment and FY18 BB2.0 base funding.
For FY19, OBP and IR will work with you to make a strategic decision as to what your FY19 budgeted enrollment (and therefore your FY19 BB2.0 base funding) will be.
If your FY19 BB2.0 base funding is greater than your FY18 BB2.0 base funding, you will have additional base funding available to support instructional costs of the increased enrollment.
If your FY19 BB2.0 base funding is less than your FY18 BB2.0 base funding, you receive reduced funding (or receive funding through the University-wide Annual Budget & planning process to offset the reduction).

9. BB2.0 One-Time Funding
One-time funding is generated through BB2.0 when BB2.0 revenues based on actual enrollment exceeds your budgeted enrollment. Comparison of actual enrollment to your budgeted enrollment is will occur near the end of the fiscal year during the annual reconciliation process.
For example, for FY19, if your FY19 actual enrollments exceed your FY19 budgeted enrollments (based on BB2.0 calculations), BB2.0 one-time funds will be reserved for your College to be held in reserve and/or used in FY20.
One-time funding is primarily used for funding reserves and operating expenses that can vary year by year and can be deferred during a tight fiscal environment.
Professional development, travel, equipment replacement, etc.
Adjunct faculty (in some instances) and temporary positions to fill temporary needs.
It may be appropriate to utilize one-time funding as incentive funding for departments.
One time funding should be used by the college to create a central reserve that can be used to address annual fluctuations in enrollment.

10. BB2.0 Funding Recap Projection by Dean for next FY in SCH, etc.
College request re: college base budget
Change in college base budget
Actual change in SCH, etc.
Movement of one time funds
No change
None requested
Increase, remain flat,
or decrease
College receives or gives up one-time funds, depending on change relative to projection:
If projection>actual, college receives funds
If projection=actual, no movement of funds
If projection<actual, college gives up funds
Increase
Request ongoing increase to cover increased instructional cost
Increased if plan approved
Decrease
Request ongoing decrease to reflect decreased instructional cost
Decreased if plan approved

11. Annual BB2.0 Budget Planning
Base Budget
Agreement must be reached on budgeted enrollment #s.
Budget plan must be presented, and approved, for the use of additional BB2.0 revenues.
The general expectation is that additional BB2.0 revenues will be utilized for meeting the educational needs of your students.
In advance of the BB2.0 budget planning hearing in May, a Dean may seek approval to search for a T/TT faculty line in anticipation of an increase in BB2.0 revenues. This approach should be considered an exception and only utilized in limited circumstances.
One-Time Funds
By default, funds will be held in a dedicated central reserve.
A budget plan requesting the use of BB2.0 one-time funds must be presented and approved.
BB2.0 one-time revenues not allocated during budget planning will be held in a central reserve account dedicated for the College.
Access to funds in a College’s BB2.0 one-time central reserve during the fiscal year can be requested through a SFR (Special Funding Request).

12. Annual BB2.0 Budget Planning Hearing
The Budget Planning Hearing will be the place where the dean will present plans for utilization of increased base budget or actions taken to deal with a reduced base budget.
Plans will be put into the overall context of the outcomes the College is achieving with available resources.
Discussions will be held regarding the impact of BB2.0 on faculty behavior, both positive and negative.
Specific metrics from the Department Analytics Report that will be discussed will be forthcoming.
For FY19,
the budget planning hearing will be considered a “practice” hearing and participation will be limited to participants from the Provost Office, Office of Budget and Planning, and potentially a few others.
However, specific budget plans regarding the use of BB2.0 revenues will need approval, and will be the focus of this year’s hearing.

13. Recommendations for Managing BB2.0 Base Funding
The budgeting of educational activities (instruction, advising, service learning, etc.) should have the overall goal of matching to demand in such a way that maintains an acceptable level of quality.
If Demand > Capacity, either quality suffers because the department teaches more students than they are resourced for, or access suffers because fewer classes are offered and students are not able to get into needed classes
When Capacity > Demand, educational resources are being underutilized.
Colleges should target funding to programs that are under-resourced. That funding can consist of:
New funding from increased BB2.0 Base Funding, increased subvention via the University-wide Annual Budget of Planning process, and increases to A260 Funds and/or GA/TA Funds.
Reallocated funding (e.g., faculty lines) from programs within the college that are over-resourced.

14. Recommendations for Managing BB2.0 Base Funding
More on Allocating Increases in BB2.0 Base Funding
Increases in BB2.0 Base Funding should be primarily utilized to increase the College’s capacity to meet the educational needs of students. Typically this means the funds should be used to hire new base funded positions.
This also means that BB2.0 Base Funding increases should not be formulaically distributed to academic departments. Doing so will constrain the College’s ability to hire additional faculty to support an increasing # of students.
Addressing Decreases in BB2.0 Base Funding
Deans will need to assess whether this a longer-term trend or a one year anomaly.
If a longer-term trend, Colleges will need to:
Consider how to reduce educational capacity.
Consider how to shift the College’s focus towards more research and public service and potentially request funding for this shift in focus through the regular annual budget planning process
Regardless of the circumstances, we recommend all vacant T/TT faculty lines rescind to the Dean’s Office. The Dean, in consultation with the Provost, should determine where best to allocate the T/TT faculty line. Once a T/TT faculty line if filled, the university has made a long-term commitment to the faculty member.

15. Recommendations for Managing BB2.0 Base Funding
Example 1:
Four departments across a College increase enrollment equally and generate an increase in BB2.0 Base Funding of $100,000. All other departments remain flat in terms of enrollment.
Scenario One: Allocate the funding to the departments that grew (e.g. $25k each). Such an action:
would not provide sufficient funding for any department to hire any additional faculty.
may ignore needs of programs that are under-resourced and unable to grow.
Scenario Two: Use the $100,000 to make a strategic to hire of an additional T/TT faculty line:
in a department with a critical need
In a department that can use the additional line to produce even more revenue.
In a department that is the focus strategic investment by the college (e.g., a new graduate program)
The process used to make decisions and the communications that follow will determine the effectiveness of any incentives that result from BB2.0.
The Dean will be challenged to gain buy-in across the College with their decisions. It is important that the criteria for the decision is based on the educational demands on the department relative to their capacity.

16. Recommendations for Managing BB2.0 Base Funding
Example 2:
A departments proposes to create a new academic program that will result in an enrollment increase and an attendant increase in BB2.0 Base Funding of $150,000. In order to implement the program, they will require an additional faculty member. You are confident that the request is valid: (i) they currently do not have capacity, or perhaps the complement of faculty expertise, to undertake the program, and (ii) the proposal is realistic: demand exists, etc.
Funding the faculty line with BB2.0 base funding and related operating funds allows the department to start the academic program.
To be able to allocate the BB2.0 base funding to the department making the proposal, the College would need to:
Project increased enrollment in the upcoming base funding year to secure increased base funding or
Reallocate resources from another department
The Dean will be challenged to gain buy-in across the College with their decisions. It is important that the criteria for the decision is based on the educational demands on the department relative to their capacity.