Budget Planning Council
September 15, 2006
M I N U T E S
HRTC 154
Present: Wendy
Merb-Brown, Gail Houlette, Phyllis Bernt, Gary Neiman, Dennis Irwin, David
Thomas, Morgan Vis, Aimee Howley, Joseph McLaughlin, Morgan Allen.
Absent: Kathy
Krendl, Dominic Barbato, Greg Shepherd.
I. FY07 Introductions
-members present introduced
themselves and their departments
·
BPC acts in an advisory capacity to the
President
·
Council members represent the university
community and their various constituent
groups
·
Co-chairs Decatur and Krendl will communicate Council
recommendations to the President
- Council charge
·
Ensure financial policies and budgetary
guidelines are consistent with and promote the priorities of the institutional
academic plan
·
Advise the President on the allocation of
University resources and incremental funding requests
·
Review and recommend approval for tuition, fee,
and internal rate requests
·
Recommend the annual General Fund and Auxiliary
budgets to the President
·
Monitor and review progress towards movement to
a new University budget model
- Membership
roster
- Revisions will be made to the distributed
roster before posting it on the web
- Meeting
place, dates, times
- Meetings
are scheduled on Oracle for Fridays, 10 a.m.-12 in the HR/TC building
primarily bi-weekly – watch your calendars for updates throughout the year
- Goals, process, ground rules
- Each
member represents a different group – please relay information to your
constituents
- Members
should work toward “common goals”
and ideas should reflect the same
- Members
to wear their ‘University hat’ when discussing issues in this forum
Comments
- Disappointment
expressed with the lack of progress toward the new budget model
o the
new “taxonomy” will create significant changes from the old subsidy model –
more information will be available by the end of quarter
- Presentation
of SSI was not presented to this group last year
- New
“taxonomy” has been endorsed by many major groups and will likely go
forward with wide-spread support.
- New
“taxonomy’ reflects state’s emphasis on STEM => Science, Technology,
Engineering, Mathematics, Medicine
- New
budget model creates a policy question
o “hold
harmless” policy effective for the first year
o how will “rebasing” be accomplished?
- Any
information on how this will “play out”?
o form
will be available to this group as it becomes available
- The
model will initially look like transfer payments with some areas being
subsidized and others not subsidized
o need
for “phase in” approach
o the
amount of the transfer determines the length of the “phase in”
o how will centers and institutes be handled?
- Dawn
will create a year-long calendar outlining events
o An
orientation for the BPC group will occur
II. Background
Materials
- FY07 Budget Book
- The budget book is built during
the year to furnish the BOT with information
- Eight sections are included in the
book and coded by color –
- Board
of Trustees Resolutions – Section A
- Budget
in Brief – Section B
- Selected
Definitions – Section C
- Budget
Highlights – Section D
- Detail
of Budgeted Resources and Expenditures by Fund & Campus – Section E
o The
book builds upon itself to get to Section E 1, shows restricted and
unrestricted funds, details Athens
campus general funds and E-10 reflects state support
- Student
Tuition and Fees – Section F
- Contains
the proposed fee schedule for the next year and is approved by the Board
in March or April
- It
is proposed that special course fees will be looked at annually
- Fee
cap is currently at 6% (tuition and fees) and it is not likely that caps
will be discontinued; however caps can be applied separately
- Auxiliary
Operations – Section G
- Trend
Data – Section H
o Examples:
annual enrollment by campus, resident tuition and fees, and comparisons to
other institutions, etc.
- The
BOT approves the book at the June meeting
- Various
groups, University Outreach and Regional Campuses and COM will visit BPC
to discuss how their budgets are built – Auxiliaries visited and presented
the past two years
- FY06 Subcommittee Reports (reports
were sent to last years’ committee members and are also available online)
i. Next Steps
1. Tuition
and Fees Committee, chaired by David Ingram
a. General Fee Update
- Fee
caps apply only to undergraduate students
- Special
course fees will be looked at annually
- Fee
cap is currently set at 6% for tuition and fees, it is not likely that
caps will be discontinued, caps can be applied separately
2. Compensation
Committee, chaired by Madeleine Scott
- The
committee made several recommendations
- Work
this year will build on the work from last year
- Mike
Williford, Jim Kemper, and Madeleine Scott will visit the September 29th
meeting
3. Central
Funding Committee, chaired by Phyllis Bernt
- The
committee looked at the cash amount needed in the Central Reserve for
emergencies, what the cash reserve for the University should be--both now
and under RCB model, where the dollars would come from and who would
allocate them. Other institutions
practices were researched in relationship to this topic
- A
copy of the Resource Implementation Team report
would be helpful for our new members
- Dialog
and discussions with the BOT are ongoing regarding the balance sheet
leading up to the 10 year capital plan approval; quantitative and qualitative
information are included in planning.
- An
explanation of SB6 and Moody’s ratings was delivered at the Audit,
Finance, Facilities and Investment Committee Meeting held September 8,
2006 in Walter Hall.
- A
“condensed version” of the Ratio Analysis will be presented to this
group. VPFA staff
are currently collecting information and trends from other
institutions.
III. Reallocation/Realignment
Funds
a. $6.3M from FY06 realignment PLUS
additional SSI
- $2.1M
is available through the state SSI for OU Main campus--$1.8M is available
as Athens General Programs
- $6.3
M surplus is available for programs
this year (not all will be spent this year)
b. Realignment plan –
FY08 bridging/plan vulnerability
- $18.6M
was the realignment attainment target when Bill arrived
- $14.373M in realignment was accomplished in the
FY07 budget
- $3.8M
of the $14.373M realignment was identified as requiring until FY08 to realize
and one time bridging funds were provided to accommodate FY07 budgeting
- $4.2M
of the target was not attained due to the negative impact on the delivery
of programs
Comments:
·
Academic areas did not approach this issue in a
similar manner – carry forward vs. budgeting information was not communicated
quickly enough and was inconsistent – the 2 year “phase in” plan contrasts to
“Tier 1+2” approach.
- Morale
issue throughout the university needs to be reversed and
- Consistency
for procedures needs to be attained – Business Service
Center would be very
beneficial
- Can
the Athens
campus benefit from success of Regional Campuses?
c. Process for
accessing realignment funds
i. building the FY08 budget
ii. BPC process discussion
·
The University Strategic Plan will be used to
determine priorities for investment and resource allocation in the next fiscal
year
·
Proposals are due to the University Leadership
Council by the end of fall quarter--units and groups will provide proposals;
compensation cannot be handled through the units
·
The University Leadership Council will review
and rank all proposals during winter break and then forward this information
along with ALL the proposals to the BPC
·
BPC will begin their review of proposals in
January with recommendations due to the president by March 1
o These
are base dollars not one time only.
o What
is the role of BPC in reviewing requests?
IV. Next Meeting –
Friday, September 29, 10:00 – noon, HRTC 154
