Budget Planning Update Office of Budget Financial Planning
Budget & Planning Update Office of Budget & Financial Planning Presentation Title | May 4, 2009
Good news Bad news Presentation Title | May 4, 2009
Good new, bad news If you are on the receiving end, . . . experiments showed that an overwhelming majority—more than 75 percent— wanted the bad news first. "If people know they are going to get bad news, they would rather get it over with, " she says. Then, if there is good news to follow, "you end on a high note. “ /1 /1 Personality and Social Psychology Bulletin; Angela Legg & Kate Sweeny, Feb 11, 2014. Presentation Title | May 4, 2009
Revenue/Cost Drivers FY 15 FY 16 FY 17 UG (Enrollment Mgmt) 2. 5% Graduate (Graduate Studies) State (UMass system) $9. 0 2. 4% 6. 7% $4. 5 2. 3% 6. 2% 5. 9% $4. 5 million 3. 0% 3. 0 pp 3. 0% 1. 0 pp Revenue drivers Cost drivers (UMass system) • cost of living/merit • fringe benefit rate 3. 0% 1. 0 pp Campus master plan • Debt service • Facilities • Depreciation $2. 0 million $2. 1 million $4. 9 to 10. 7 million (each yr) Presentation Title | May 4, 2009
Multi-yr Fcst ($ million) FY 14 FY 15 FY 16 FY 17 Current gap (6. 5) (6. 7) (6. 5) (8. 4) FY 15 cost drivers $28. 4 million Presentation Title | May 4, 2009
Then vs Now Presentation Title | May 4, 2009
Where Will More Resources Come From? • More tuition and fees o higher enrollment o higher fees o grow net revenue • More grants and contracts • More auxiliary income • More state appropriations o grow the UMass pool o increase UMass Boston’s portion • Reallocation of existing resources Presentation Title | May 4, 2009
Net revenue Headcount (HCT) Full-time equivalent (FTE) Undergrad or Graduate Resident or Non-Resident Program Waivers Net revenue Presentation Title | May 4, 2009
Enrollment Presentation Title | May 4, 2009
Net revenue 12 -credit cap (Board of Trustee policy) # of credits (Fall, UG out-of-state) 12 credits or less 706 13 credits or more 1, 021 % no additional fee 59% Revenue not realized $5. 8 million Presentation Title | May 4, 2009
Net effective revenue Graduate waivers, TA/RA payroll Memo: UG waivers 9% Presentation Title | May 4, 2009
Closing out FY 14 • fund payroll (AA-reg, AA-other, and CC) • right size operating (non-payroll) budgets • identify rollover (>$10, 000, one-time, discrete purchases or projects) • execute on remaining funds • review org structure Presentation Title | May 4, 2009
Going into FY 15 • no budget ‘all-call’ • review base budgets (base + strategic funds – one time) • review position mgmt (full-time, benefitted positions) • Summit position mgmt application (vacancies) • new budget transfer tool (People. Soft Finance) Presentation Title | May 4, 2009
Summit Position Mgmt t f a r d Presentation Title | May 4, 2009
Going into FY 15 • Look for opportunities to reallocate resources to support strategic priorities in your area o tough decision: what to do o tougher decision: what not to do o toughest decision: what to stop doing (Michael Porter, Harvard Business School) • Focus on o growing undergraduate enrollment (retention, new admits) o supporting physical infrastructure transformation o planning for the future Presentation Title | May 4, 2009
Going into FY 15 ‘When the going gets tough, the tough get going. ’ When the situation becomes difficult, the strong will work harder to meet the challenge. What can you do to make a difference? Presentation Title | May 4, 2009
- Slides: 16