Budget Planning Council

October 13, 2006

M I N U T E S

 

Present:  Co-chairs Bill Decatur and Kathy Krendl, Morgan Allen, Phyllis Bernt, Rich Carpenelli, Dominic Barbato, Joe McLaughlin, Brenda Noftz, Greg Shepherd, Dennis Irwin, Gary Neiman, David Thomas, and Morgan Vis.

 

Absent:  Gail Houlette, Aimee Howley, and Wendy Merb-Brown

 

I.  Strategic Investment Process  

A.  BPC Role in Process

  • Role of BPC – this group will review everything and make serious decisions that will go forward to the President regarding the reinvestment of funds – this group needs to stay informed
  • How does the committee want to handle
    • GERB / General Fee / Course Fee / Facilities Fees
    • Fee Committee will be a sub-committee of BPC

RCB DISCUSSION NOTES

  • Funding will flow to academic areas with an assessment for academic support unit (the process will be a unified approach with different guidelines
  • Need to address mechanics of RCB at BPC
    • What happens if revenue is not generated as planned?
  • Units will be held “harmless” the first year
  • Need for accountability for funds distributed (not practiced in the last decade)
  • This year is a base year/”shadowing” - first year under new budget is next year (FY08)
    • Statement of principles from Deans and change in state taxonomy needed
  • “RCA” (Responsibility centered Analysis) is a better term to link to the plan; base allocation is included in the RCA model for under-funded colleges while dealing with over-funded colleges as well

o        Similar to Regents model

  • Discussion regarding potential hours spent to write a proposal for a unit and as a result not funded
  • 3 goals this year to focus on Institutional priorities: graduate research, faculty compensation, and undergraduate education

o        GERB will address research

  • Delay in Press Release is  to allow communication of accurate information; John Day will assist with the draft and be reviewed by the VP for Finance/Admin and Provost Krendl
  • 4 hour BPC meeting needed over winter break to look at additional information regarding RCB and identify material and principles to put a budget together

 

REALIGNMENT FUNDS

  • “Over promise” issue – Vision Ohio and academic areas are both promised – room for several “losers”
    • “Manage the expectations” considered at every stage of process
  • Inter-disciplinary discussion regarding dollars available
  • Faculty Compensation reinvestment funds were achieved only from the Athens campus and will address the same  (excludes COM and RHE)
  • How do we cover $2M shortfall in tuition revenue this year?  A conscious, specific recommendation for the President is needed
  • Undergraduate enrollment and retention is the key for now and the future
  • Revenue generation is essential--linked to retention and transfer issues

o        “Relocate” definition:  students from Regional campuses

o        “Transfers” are students from outside institutions (OSU etc)

  • Decision regarding GERB funding needed in order to prioritize requests to Deans and BPC (Jan 1 timeline for deans/mid Feb for BPC)
    • A standardized format for funding requests is needed
    • Is there a limit on the number of requests (from approximately 15 planning units, the executive implementation team and GERB)?
  • Quality has to be considered in this evaluation – qualitative and quantitative need to be considered equally
  • Process of BPC and transition is key topic

 

II. Subsidy

A. Current Methodology A Primer on SSI Calculation

  • Information is derived from the OBR (Ohio Board of Regents) website
  • Step 1 – Data files are submitted to HEI every quarter) Mike Williford reports data to the state to determine course level (B2 etc.) for subsidy
  • Step 2 –  Compile Historical FTE’s (Enrollment file)
  • Step 3 – Calculate 2 and 5-year FTE averages
  • Step 4 – Determine Dollars Earned for Instruction and Support
  • Step 5 – Determine Subsidy Earned for Student Services
  • Step 6 – Determine the Subsidy Earned for Activity-Based POM
  • Step 7 – Determine Which Average to Use (3 above)
    • Doctoral 1 & 2 H’s are not included in $85 M figure
  • Step 8 – Calculate Doctoral Subsidy
    • Must maintain 85% or receive a penalty
  • Adjustments to subsidy
  • Stop Loss (“The Guarantee”) creates adjustments in subsidy each year; always guaranteed 97% of the previous year
  • The Final Answer – a look at our institutions’ subsidies
  • Subsidy Trends

 

B. New Taxonomy

  • Average cost is $10,000 / range is $7,000 to $18,000
  • Baccalaureate II model was used as an example of how programs will shift to new models with different cost impacts
  • Reimbursements based on percent of six-year average of costs of disciplines
  • New groupings from 16 to 26
  • Ten adjustments on top of taxonomy to alleviate shifts
  • Some discussion at state level regarding the possibility of variable tuition
    • Above are reasons Deans want to run the new model with new taxonomy
  • 37% of the university’s General Fund budget is from subsidy (see H.4 in Budget Book)

 

 

III.   NEXT MEETING – Friday, October 27, 10:00-noon, HRTC 154

         Enrollment and Scholarship