Budget and Finance Committee Minutes

Budget and Finance Committee Minutes

January 13, 2010

Attendees: Bill Vertrees, Ed Day, Shelly Baird, Elaine Ames, Matt Cziske, Loran Cutsinger, Jim Schwing, Rebecca Gubser, Margaret Badgley (via phone), Tracy Seely (for Jack Bishop), Kirk Eslinger, Richard DeShields, Agnes Canedo, Jen Gray, and Sandy Colson

Absent: Roy Savoian, Keith James

Vacant position: Academic Affairs (Faculty)

1.Committee purpose

Bill Vertrees explained that this is a new committee that will bring a more inclusive process to budget planning. There are two subcommittees that report to the Budget and Finance Committee: the Capital Budget Subcommittee chaired by Shelly Baird and the Operating Budget Subcommittee chaired by Ed Day. The Budget and Finance Committee willreview and integratethe input of both subcommittees; align budget priorities with our strategic plan and goals and, ultimately, recommend afiscal year 2011budget to the President’s Cabinet. Bill noted that this is a significant change in the way budgets are developed and referred to the first handout, Budget Planning Process, which lists each committee’s committee purpose and membership. He requested that members bring forward questions and ways to improve this process, noting that future budgets will be developed as a result of improvements identified this “first time through.” Bill also reviewed the legislative process; the session started this week and will end sometime around the first of April, if it is not extended. The schedule the committee is facing over the next six months is brisk schedule. It must not only become educated on the budget and finance system but also review the budgets that are recommended by the subcommittees, integrating both capital and operating funds, and be prepared to present a budget proposal to the Cabinet within the timeframe needed to get a final budget to the Board of Trustees for the April 30 meeting.

2.Capital Budget Subcommittee Report

Subcommittee chair Shelly Baird reported that the Capital Budget Subcommittee has met twice and it has reviewed a list of the state capital budget requests and each project’s ranking. Committee members have asked for a description of each project and FMD is working to provide the descriptions by the next meeting. The next step for the subcommittee will be to merge the array of projects in priority order, and it agreed that the minor works (MW) priority would be: 1-MW Health, Safety, Code; 2-MW Infrastructure/Preservation; and 3-MW Facility Preservation. The next step for the committee will be to look at self-support capital plans.

3.Operating Budget Subcommittee

Subcommittee chair Ed Day reported that the Operating Budget Subcommittee met for the first time on January 11. The primary focus of the meeting was to understand the committee purpose and to begin the process of understanding the total scope of the University’s operating budget. One of the first issues to be apparent was that everyone thinks of budget using different terminology and that we need a glossary of terms and the relationship between funds to facilitate our discussions. The committee agreed to meet weekly and to develop a schedule of the type of budgets it will review. The final order of business was the review of the 2010 Summer School Budget (see below).

4.Discussion

Bill Vertrees explained that the committee was starting its work half way through the fiscal year and without specific direction from the Board of Trustees on targets for enrollment, tuition and university reserves. The committee will make decisions based on their understanding of data developed by the subcommittees; Business and Financial Affairs will manage the process. Loran Cutsinger asked about the process the committee will use to make decisions; everyone agreed that decisions will be made based on formal motions and votes.

Bill then talked about the current budget, noting that the University is still in cost saving mode. He shared his opinion that any cuts made by the Legislature during the supplemental session will be implemented fiscal year 2011 (July 1, 2010) and the budget approved the 2011-2013 biennia will be implemented fiscal year 2012 (July 1, 2011).

5.Set action plan and regular meeting schedule

The committee reviewed two other handouts – a meeting schedule and a screenshot of the committee’s website. Agnes Canedo requested that the Business and Finance Committee have access to reports and meeting documents from the subcommittees, and Bill agreed that this access would be provided. Sandy Colson also noted that the committee needs a faculty representative and Loran Cutsinger said that the Faculty Senate was working to identify a faculty member. Matt Cziske also asked that reminders be sent to committee members prior to meetings.

6.2010 Summer School Budget

Ed Day explained that the 2010 Summer School Budget went to the Board of Trustees as an information item in December. However, allow for a more thorough review and to bring it into the new committee structure, it was referred back to the Operating Budget Subcommittee. A copy of the 2010 proposal was distributed and Ed noted the following:

• The proposal was originally developed by the Summer School Advisory Committee
• Academic departments rely on summer money to supplement meager academic year goods and services allocations.
• Summer school is operating on a self-support basis; students pay for each credit.
• The 2010 proposal eliminates a registration fee, but implements a per course online fee. Funds generated from the online fee support expanding the Help Desk and to assist faculty/students with the online experience. Revenue from this fee is distributed to Multimedia Technology and Instructional Support (MTIS), Information Technology (IT) and Continuing Ed (CE).
• Revenue and expense projections are based on the same number of credit hour generation as that of summer school 2009 (38,000 credit hours). Becky Gubser noted that instructional costs stay flat because faculty salary remains the same as last year.
• The Academic Affairs internal allocation process includes a percentage that goes to the Provost for Academic Affairs priorities, a percentage to the Dean for College priorities, and distribution to academic departments based on credit hour generation.

Bill Vertrees called for the motion. Becky Gubser moved that the 2010 summer school budget proposal be recommended and forwarded to the President’s Cabinet for approval. The motion was seconded and Bill called for discussion.

The committee identified several areas where the proposed budget needed additional information in order for them to make an informed decision rather than being a “rubber stamp.” However, they acknowledged that the timeline for submitting the 2010 summer school budget to the Board did not allow for further review. The motion was amended to read:

“..That the 2010 summer school budget proposal, as previously presented to the Board of Trustees for information, be recommended and forwarded to the President’s Cabinet for approval with the following caveat: that all future budget proposals include sufficient detail, including a brief history of the request, and are submitted within a timeframe that allows for thoughtful review and discussion.”

Motion was seconded and passed with one abstention.

The next meeting of the Budget and Finance Committee will be Tuesday, January 26, from 1:30 – 3 p.m. in Barge 412.