Florida Atlantic University Overview of Operating Budget Process

Florida Atlantic University Overview of Operating Budget Process Presentation to the Florida Atlantic University Foundation, Inc. Board of Directors February 6, 2007

Florida Atlantic University Overview of Operating Budget Process The budget process consists of four major components: n State University System Legislative Budget Request n Governor’s Budget Recommendations n Legislative Budget Appropriations n Florida Atlantic University Budget Construction 2

Florida Atlantic University Overview of Operating Budget Process State University System Legislative Budget Request n Guidelines and Coordination through Board of Governors n Process begins one year in advance n University / Board of Governors Legislative Budget Request is needbased and linked to SUS Strategic Goals: Goal 1: Goal 2: Goal 3: Goal 4: Access to and production of degrees Meeting statewide professional and workforce needs Building world-class academic programs and research capacity Meeting community needs and fulfilling unique institutional responsibilities 3

Florida Atlantic University Overview of Operating Budget Process State University System Legislative Budget Request n FAU’s Legislative Budget Request is: n Linked to University Strategic Goals and Objectives n A collaborative process developed through Academic and Support Units and the BOT Committees (Academic and Student Affairs, Audit and Finance, and Strategic Planning) n Approved by the Board of Trustees in June n SUS Budget Request is approved by the Board of Governors in August Approved SUS Budget Request is submitted to the Governor for consideration in Governor’s Recommended Budget n 4

Florida Atlantic University Overview of Operating Budget Process Governor’s Budget Recommendations n Recommended budget integrates agency requests into a unified, consolidated budget n Comprehensive budget to address State of Florida Priorities n $70 billion budget reflects a balance between projected State revenues and planned expenditures for over 30 different agencies n Key components are education, health care, transportation, natural resources, and corrections n Budget Recommendations are submitted to the Legislature 30 days before the start of the Legislative session 5

Florida Atlantic University Overview of Operating Budget Process Legislative Budget Appropriations n n Legislature reviews Governor’s budget recommendations prior to start of Legislative session begins “first Tuesday after the first Monday in March” (March 6, 2007) and lasts for up to 60 days Appropriations process begins with budget recommendations from both the House and Senate, with a comprehensive budget developed through a joint conference committee and approved by both the House and Senate (General Appropriations Act) Governor has line item veto power, and once exercised, signs the General Appropriations Act into law 6

Florida Atlantic University Overview of Operating Budget Process FAU’s Budget Construction n Process begins at the time the Legislative Budget Request is developed -- one year in advance During the spring, FAU’s proposed budget request is refined to reflect projected appropriations, university needs, and consistency with FAU’s Strategic Goals and Objectives FAU’s Strategic Goals: Goal 1: Goal 2: Goal 3: Goal 4: Goal 5: Goal 7: Providing increased access to higher education Meeting statewide professional and workforce needs Building world-class academic programs and research capacity Meeting community needs and fulfilling unique institutional responsibilities Building a state-of-the-art information technology environment Enhancing the physical environment Increasing the University’s visibility 7

Florida Atlantic University Overview of Operating Budget Process FAU’s Budget Construction Major Legislative Funding Appropriations: n Enrollment Growth • • n n n Instructional and Research University Support Library Resources Technology Infrastructure Branch Campus Funding Student Financial Aid Student Services Cost to Continue Prior Year “Partially Funded” Initiatives Special Request Issues Tuition Increases 8

Florida Atlantic University Overview of Operating Budget Process FAU’s Budget Construction n Through collaborative processes within departments, colleges and divisions, prioritized budget requests are presented to the Executive Committee by area Vice Presidents and Directors n Requests are discussed analyzed to ensure efficient and effective allocations of resources that are consistent with FAU’s Strategic Goals Comprehensive budget recommendations are revised by the BOT Committees over several weeks, resulting in a final budget recommendation to the BOT n 9

Florida Atlantic University Overview of Operating Budget Process FAU’s Budget Construction n FAU’s recommended budget consists of these components: • • n Educational and General Student Financial Aid Grants and Contracts Auxiliary Enterprises Athletics Local Student Government Concessions FAU’s $500 million operating budget is approved by the BOT prior to July 1 10