1. Budgeting Basics Marcy P. Driscoll Florida State University Christine McCormick University of Massachusetts-Amherst

2. Opening Exercise What kind of budget model do you have? – Incremental model – SCH production model – RCM model – Some combination

3. Find the money

4. Where does the money for your college come from? State appropriation/Tuition revenue – Direct from tuition – Allocation from central administration – Unfilled faculty positions – Unfilled staff positions – Summer programing – Graduate student tuition and fee waivers – Carryforward

5. Other sources of revenue – Distance learning fees – Tech fees – Material & supply fees – Online degree programs/courses (fees & tuition) – Continuing and professional development (fees & tuition) – Charter school contracts – Royalties from commercial ventures – Other off-book activities

6. Private funding – Gifts from individuals – Corporate and foundation gifts – Bequests and planned gifts – Real estate and other gifts of real property

7. Research funding – State service contracts – State flow-through federal grants – Federal grants – Foundation grants – Research overhead and residual funds – “course buyouts”

8. Where are the accounts held? Provost/central administration Dean’s office, units in dean’s area Departments Sponsored research Foundation Other entities (e.g., Distance Learning, Continuing Education)

9. Table Discussion Do you have a centralized budget for the College/School? Or does each department and unit have its own budget? What are the advantages and disadvantages of each?

10. Spend the money

11. Who spends the money? Dean Dean’s units Department PIs Centers

12. What drives decisions about spending? Basic operational needs Instructional needs and investment Enrollment and student-credit-hour targets Research needs and investment College priorities (strategic plan) Faculty recruitment and start-up Salary equity and counteroffers Spousal hires

13. What drives decisions about spending (cont’d)? Collective bargaining agreements Student financial needs Facility and technology upkeep and renewal Expenditure guidelines and policies Risk tolerance Investment in other revenue generating activities Recurring vs. non-recurring expenses

14. Things to keep in mind In some places, money is money. In others, money comes in multiple buckets that are generally not interchangeable. In either place, spending guidelines and restrictions can affect how you spend what you have.

15. TIPS TO BUDGETING SUCCESS – LESSONS LEARNED Make sure you have a competent budget manager. Understand the budget yourself. Keep asking questions until you do understand it. Get to know the budget people in central administration. Talk to other deans. Maintain a reserve (5-10%). Make the college budget transparent.

16. Fiscal Year Projection: SAMPLE 89% used for Faculty and Staff Salary Base Budget$x,xxx,xxx Salary Expenses Faculty and Staff Salary $x,xxx,xxx Part-time Lecturer Salary$xxx,xxx Total Salary$x,xxx,xxx Available for other expenses$xxx,xxx Graduate Assistantship Salary (Additional GA funded by Grants and CPE programs) $xxx,xxx Net Available for operating$xxx,xxx * Est. Operating Expenses$xxx,xxx

17. College Operating Expenses Category201320142015 Administrative, General Office, Student Travel & Department Discretionary Faculty Travel Technology and Equipment Telephone/Ethernet Recruit/Hire (includes moving) Copy/Print Postage Total

18. College Revenue Fund Description201320142015 Research RTF (College-level) Research RTF (PI) Continuing Education Revenue Activity Unrestricted Gift Undergraduate / Out-of-State Graduate Revenue Share

19. Department Revenue Sharing Funding SourceABC Full-time Faculty (Fall 2015) GOF General Operating Funds (does not include travel allocation) RTF Research Trust Funds 25% of College’s FY15 RFT Return CEI Continuing Education Incentive Funds 30% of College’s FY15 Net CPE Revenue

20. Follow the money

21. Questions?

22. To Do: Find the money. Spend the money. Follow the money.   