1. Budget Primer
October 22, 2013
Rick Straka

2. 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)

3. 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

4. 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

5. 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

6. Gen Fund Budget Subcategories
Basic Operations
Base +/- Incremental
Equipment
50% Base, 50% Zero Based
Strategic Priority
Zero Based
Repair and Betterment

7. 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

8. What else is on your mind?
Q & A
What else is on your mind?

9. Budgeting Primer
October 22, 2013
Rick Straka