The Budget Process: Allocations from the State to USG to UWG to Divisions January 1112, 2006

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The Budget ProcessAllocations from the State
to USG to UWG to Divisions January 11-12, 2006
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Plan for Presentation

• The Budget Process and Timetable
• Allocations to Divisions
• Introduction to Fund Accounting

Note The next several slides, i.e. Items I and
II, refer to State Allocation Tuition There are
other Funds Discussed in Item III
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Two Intertwined Processes
Today, we will focus on the external process
the one on the right
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I. The Budget Process and Timetable

• Board of Regents staff develops a budget request
  and Board approves a proposal (typically in
  September) for the Governors Office of Planning
  and Budget (OPB)
• Fall Chancellor and senior staff present,
  explain, and defend the budget proposal to OPB
  and Governor
• January Governor proposes the Budget for the
  entire State to the Legislature
• The major component of the USG budget is Formula
  Funding

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The Formula

• Is a mathematical device used by the State of
  Georgia to allocate EG funds to Board of
  Regents.
• Is based on student credit hours, operation and
  maintenance of physical plant, and other
  organized activities.
• Is not used to allocate money to the various
  institutions.

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The Process (Continued)

• Governor proposes the Budget to the Legislature
  in January
• Formula Funding
• Special Funding Initiatives
• B Budget
• Capital Budget
• Other Adjustments, such as Budget Cuts
• Separately, Governor proposes Salary Increases
  (average and effective date) to the Legislature
  in January in recent years, this has been the
  same as that of K-12 teachers.

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The Process (Continued)

• January Governors Proposal to Legislature
• January to March/April (40 Days) The
  Legislature debates the budget House, Senate,
  Conference Committee. During this period, there
  are considerable efforts on the part of USG
  staff, Presidents, VPs, Legislative Advocates
  (friends/supporters/faculty), etc. to include
  items of interest to the USG
• February Institutions make 20-minute
  presentations to USG Senior Vice Chancellors
  (initiatives largely based on our internal
  process)
• March/April Governor signs budget or declines to
  do so (In GA, the Governor has line-item veto)
• April University System of Georgia Office
  receives final allocation and makes allocations
  to institutions
• Note UWG cannot start computations until we
  receive our allocation

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Allocations to Institutions

• Useful to think of these allocations as
• Continuing funds
• New Funds
• Salary raise allocations
• (75 from State Merit required though
  difficult in low raise years)
• Basis for allocations of New Funds to
  institutions
• Credit Hours (80)
• Performance (5)
• Strategic / Discretionary (15)

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The Process (Continued)

• April/May Institutions have a very short time
  (days) to finalize budget
• Presidents Advisory Committee Recommends
  distribution of new funds to President for
  allocation within Divisions
• June Board of Regents approve budgets for the
  fiscal year starting on July 1

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Summary of Process

• July-September Board of Regents staff develops a
  budget draft Board approves proposal and sends
  it to the Governors Office of Planning and
  Budget.
• Fall Chancellor and senior staff defend the
  budget request to Governor and OPB
• January Governor presents the Budget to the
  Legislature
• January to March/April (40 Days) The
  Legislature debates the budget House, Senate,
  Conference Committee.
• February Institutions make presentations to Sr.
  Vice Chancs.
• March/April Governor signs budget or declines to
  do so
• April USG receives final allocation allocations
  to institutions
• April/May Institutions have a short time (days)
  to finalize budget
• PAC Recommend distribution of new funds for
  allocation within Divisions
• June Board of Regents approval of budgets for
  the fiscal year starting July 1

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II. The Allocation Process of New Money to
Divisions

• Any money allocated to specific initiatives by
  the USG must go to those initiatives
• Contingency Reserves Which have later in the
  year been used for Budget Cuts (47), Library
  Acquisitions (27 for forward funding),
  Equipment for Buildings (8 for TLC, Adamson),
  other (typically one-time) university needs (19)
• Allocatable money is computed
• 50 is allocated according to percentage of
  budget
• 50 is allocated based on strategic directions
  expected of UWG
• Examples Math/Science Faculty, Nursing,
  Pre-major Advisors, Enrollment Management
  strategic initiatives, Federal Work Study
  matching funds, Web Content Manager, Tax
  Compliance Officer, Utilities-additional, Oracle
  personnel training, etc.

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Budgeted Positions by Division FY94 FY06
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Percentage Change in Budgeted Positions by
Division FY94 FY06
Percentage Change in Student Headcount and FTE
Faculty 46.4
This change represents a net reduction
exclusive of two transferred positions in FY
1996. Without this adjustment, it would show a
33 decline.
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This change represents a net reduction
exclusive of two transferred positions in FY 1996
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UWG Budget by Division FY 2005Final Amendment
Question How much do you believe each of these
divisional budgets should have grown since 1994?
Note Growth in HC 28 and in Cr. Hrs. 37.
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UWG Budget by Division FY 2005 Final Amendment
This change represents a net reduction
exclusive of two transferred positions in FY
1996. Without this adjustment, the 12-year
increase would have been 8 .
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Intertwining of the Two Processes
Departmental requests feed Institutional
Requests Funding for these come from specific
USG allocations, special initiatives, and
allocations from both parts of the allocatable
money.
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III. Brief Introduction to Fund Accounting (FY
2006 Data)

• EG Fund 10000 67,205,356

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UWG Resident Instruction Fund 10000Revenue by
Source
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Brief Introduction to Fund Accounting

• EG Fund 10000 67,205,356
• State Funding
• Tuition
• Student Mandatory Fees
• Technology Fee (Fund 16000) 1,092,924
• Auxiliary Fund 12000 18,871,148
• Bookstore
• Food Service
• Residence Halls
• Student Mandatory Fees
• Athletic Fee
• Health Fee
• Transportation Fee
• Student Activities Fund 13000 1,028,808
• Student Mandatory - Activity Fee
• Sales

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Capital / MRR

• Major gt 5 million
• Examples TLC (past), Health Wellness (future)
• Minor 5 million
• Examples Adamson (past), Callaway (future)
• (MRR)
• Examples Building improvements in Martha Monro,
  Library, Callaway, Ed Center, disabled access
  ramps, street lights, and elevators in Pafford,
  Boyd, Callaway, Mandeville...

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Fund Accounting (Continued)Other Funds

• Continuing Education (14000)
• Indirect Cost Recoveries (15000)
• Technology Fees (16000)
• Sponsored (20000)
• (Restricted Education General)
• Unexpended Plant (50000)

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Specific Funding All Dollars are not Green!

• If Academics is your top priority, how come you
  spend money on putting lights in parking lots and
  on walkways?
• How come we can afford to build a fountain?
• How many classes did we have to cut to fund the
• Endowed Chair in Mathematics?
• Nursing Resource Center Instructor?
• Lecture Series for Public Service?
• How can UWG buy street lights when no (or low)
  raises are being given due to budget cuts?
• How many classes will we have to cut to build a
  Stadium?

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Thank you for coming!Questions?
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