Billings BUDGET DEVELOPMENT PLAN & PRIORITIES
MONTANA STATE UNIVERSITY BILLINGS
PRELIMINARY FY 2001
BUDGET DEVELOPMENT PLAN & PRIORITIES
Presented to the Montana Board of Regents
November 18, 1999
Montana State University Billings participated in the Collaborative Bargaining process established by the Governor and the Board of Regents for use on the campuses of the University System. This process was to look at how increases could be given to faculty based on a variety of assumptions. Participants in this process were the Governor s Office, Board of Regents, Commissioner s Office, Faculty Association, Academic Senate, Students, and the Administration. In Fiscal Year 1997 in the Collaborative Bargaining Process, MSU-Billings agreed to a financial plan for faculty and administrative salary increases to be funded by tuition increases and projected increases in enrollment. In Fall 1996, upon facing an enrollment decline rather than an increase, MSU-Billings decided to look for a positive way out of this situation rather than permanent budget reductions. Based on this, temporary and permanent reductions were made to the operating budgets and a concerted effort was made to increase enrollment to receive increased funding. In Fiscal Years 1997, 1998, 1999, and 2000, the budget was balanced based on a combination of temporary and permanent reductions. MSU-Billings did increase its enrollment, however, changes were made to the funding model and MSU-Billings did not receive the revenue anticipated for the enrollment increases. Now the University must make permanent cuts to its departments and programs. The University started Fiscal Year 2000 with a need to permanently reduce the base budget by approximately $1 million. The University began a process in Fiscal Year 2000 to permanently adjust its budget over the next four years to achieve a permanently balanced budget.
Description of the Budgeting Process:
Montana State University Billings has two budgeting processes. One is coordinated through the Academic Senate Budget Committee and the other is coordinated through the Vice Chancellors and the Chancellor.
Vice Chancellors and Chancellor:
Division of Academic Affairs Process:
In early fall of the annual budget cycle, the Deans of the Colleges of Education and Human Service, Business, Arts and Sciences, Technology, and Professional Studies and Life Long Learning, along with the Director of the Library consult with Department Chairs and staff for recommendations concerning budget requests and/or budget reductions/reallocations in their respective Departments.
Deans consolidate the departmental requests and recommend a College budget to the Provost and Vice Chancellor for Academic Affairs.
The Provost meets with the Deans and the Director of the Library to establish the budget priorities for the Academic areas.
Working within the Academic Affairs budget allocation, the Provost presents a recommended budget to the Chancellor s Cabinet and the Chancellor for review and approval.
The largest single expense in the Academic Affairs budget is faculty salaries. In fall 1998, the Provost directed a planning task force composed of faculty, department chairs, and Deans to develop a four-year plan for hiring faculty within conservative budget parameters. The Chancellor s Cabinet and the Chancellor review and approve the plan.
Division of Administrative Services:
The process starts at the department level. The departments (Human Resources, Financial Services, Business Services, Budget Office, Campus Police, Facilities Services, and Information Technology) are asked what their needs are for the upcoming year or two. They also have a target amount that must be cut from their departments. The Directors bring their recommendations forward to the Administrative Vice Chancellor. Meetings are conducted with the Administrative Services Directors and the Administrative Vice Chancellor to prioritize needs. The recommendations from this division are then forwarded to the Chancellor s Cabinet and the Chancellor.
Division of Student Affairs:
Departments are requested to submit budgets based on a 5% and 10% reduction. The departmental directors then meet with the Vice Chancellor for Student Affairs to review the reductions and the impact of the reductions. Budget priorities are developed by the Vice Chancellor and the Directors. New budget needs are brought forward. The Directors and the Vice Chancellor for Student Affairs provide a recommended balanced budget within the parameters given by the Chancellor to the Chancellor and the Chancellor s Cabinet.
Chancellor s Cabinet:
The Vice Chancellors meet with the Chancellor and prioritize all of the areas budget needs. The Vice Chancellors also bring proposed budget cuts forward. These proposals are reviewed in detail. A final recommendation from this group is made to the Chancellor based on the budget needs and possible budget reductions/reallocations. For two years, members of the Faculty Association have participated in this process.
The Faculty Association, which is the faculty union on campus, has participated in the budget process over the last two years as part of the Chancellor s Budget Committee. They bring faculty needs forward and prioritize the budget requests/reductions based on the faculty point of view. They are also a significant part of the budgeting process in developing financial plans to fund the salary proposals.
Academic Senate Budget Committee (ASBC):
The Academic Senate Budget Committee (ASBC) is comprised of two faculty from each College, two students, one individual from Student Affairs and one individual from Administrative Services. The Vice Chancellors serve as ex-officio members. A Chairperson is elected at the beginning of each Academic Year from the faculty members on the committee.
The ASBC has used a variety of processes over the years. The process is determined each year by the members of the committee. The regular process is for the committee to review the entire budget and work with the departments and the Vice Chancellors to determine where there is a need for resources and what budget reductions/reallocations can be made. This committee has used a variety of techniques such as interviewing departments, sending out surveys, and requesting various budget scenarios from the Vice Chancellors. Once the committee has adequate information, they work together to develop a balanced budget. This committee then forwards their recommendations to the Academic Senate for review and the Senate forwards recommendations to the Chancellor. The Chancellor reports back to the Senate on which recommendations were implemented and which were not.
Associated Students :
Representatives of the Student Senate participate in the Academic Senate Budget Committee. The Administration also visits frequently with the Associated Students to discuss tuition, fees, and budget issues.
Calendar for FY 2001:
November Budget Strategy Chancellor s Budget Committee
- Review actual and projected FY 2000 enrollment and revenue
- Revise FY 2001 budget assumptions and variables
- Revise projected FY 2001 budget deficit
- Develop broad strategic goals and objectives for FY 2001
- Vice Chancellors seek input from deans and directors on budget needs to accomplish strategic objectives
- Devise strategy for resolving the projected FY2001 deficit
November Academic Senate Budget Committee ASBC
- Review the FY 2000 budget allocations in light of the University Strategic Plan
- Investigate possibilities for committee participation in the comprehensive capital campaign
December Budget Strategy Chancellor s Budget Committee
- Vice Chancellors report requests and assign division priorities
- Discuss process for prioritizing budget requests as a whole
- Vice Chancellors seek input from deans and directors on possible budget reductions and reallocations
December Academic Senate Budget Committee ASBC
- Report on findings from review of budget allocations and the strategic plan
- Recommend reallocations and increased focus on areas of concern
January Budget Development Chancellor s Budget Committee
- Prioritize budget requests and assign funding source
- Vice Chancellors discuss division reduction/reallocation ideas
- Communicate with the Academic Senate Budget Committee
January Academic Senate Budget Committee ASBC
- Receive update on budget development process
- Decide participation activities
February Budget Review/Budget Development Chancellor s Budget Committee
- Review FY 2000 actual enrollment and revenue collections
- Discuss FY 2000 additional budget issues
- Adjust assumptions for FY2001-2004 budgets
- Adjust FY 2001 projected deficit
- Vice Chancellors present division budget reductions/reallocations
February Academic Senate Budget Committee ASBC
- Receive update on budget development process
- Recommend budget reductions/reallocations
March Budget Development Chancellor s Budget Committee
- Receive COE formula update
- Calculate appropriate enrollment reserve
- Discuss cascade effect of budget reductions within and between divisions
March Academic Senate Budget Committee ASBC
- Receive update on budget development process
- Receive feedback from Vice Chancellors on committee recommendations
April Budget Development Chancellor s Budget Committee
- Present analysis of faculty positions
- Discuss methods to adequately staff courses for increasing number of students
- Discuss other methods to strengthen academic programs
- Revise and approve budget reductions/reallocations
April Academic Senate Budget Committee ASBC
- Receive update on budget development process
- Discuss approved budget reductions/reallocations
May Budget Development Chancellor s Budget Committee
- Review of current year budget status and outstanding issues
- Assign status of permanent or temporary to budget reductions
- Discuss new FY 2001 budget issues/problems
May/June Administrative Tasks Budget office
- Update spreadsheets with proposed permanent and temporary reductions
- Calculate salary and wage line item budgets
June Budget Development Chancellor s Budget Committee
- Review and discuss resulting departmental budgets
- Make adjustments and approve the budget
- Discuss remaining budget items/issues and assign funding
July Administrative Tasks Budget Office
- Load position budgets into Banner HR
- Load operating budgets into Banner Finance
- Distribute budgets to departments
August Administrative Tasks Budget Office
- Prepare and submit budget for MSU book
- Submit CHE forms for general operating fund
- Submit CHE forms for all other funds
Fiscal Year 2000 Regent Approved enrollment targets
Fiscal Year 2000 Enrollment projections
Fiscal Year 2001 Regent Approved enrollment targets
Fiscal Year 2001 Enrollment projections
(net of fee waivers)
Fiscal Year 2000
Fiscal Year 2001
*The allocation of general fund and millage has not been determined by the Board of Regents at this time. This number is a projection of payplan based on the percentage allocation for FY 00.
Fiscal Year 2000 Budgeted Revenue
Fiscal Year 2001 Budgeted Revenue
Anticipated Budget Increase
Anticipated Additional Commitments above FY 00 Budget
Classified Wage Increase
3% Faculty Salary Pool*
3% COT Faculty Salary Pool*
3% Admin/Professional Salary Pool
Inflationary Increase for Utilities
Inflationary Increase for Library books and journals
Annualize previous years salary increases
Increased employer costs for ORP
Title IV Requirement for Financial Aid Repayment
*Faculty Salaries are still under negotiation for 1999-2000 and 2000-2001. These amounts may change based on the outcomes of negotiations.
Other Proposed Program Enhancements and Budget Adjustments for FY 01:
Accreditation (Note A)
Distance Learning and Technology (Note B)
Student Access ( Note C)
Student Excellence (Note D)
State of the Art Administrative and Student Services (Note E)
K-16 Educational Initiative (Note F)
Deferred Maintenance (Note G)
Note A: Funds are needed to address issues within the accreditation standards including outcomes based assessment, additional faculty, library acquisitions, faculty development, capital equipment, faculty research support, and graduate program enhancements.
Note B: Technology is essential for a University to stay current. Funds are needed in the operating budgets for the annual replacement of hardware, software, upgrades, and infrastructure support. The University would also like to invest in a pilot program for students to lease lap top computers. Technology is very important to all students, the University would like to develop a technology prerequisite course. Distance learning is important for many Montanans to receive an education due to time and location barriers. The University must invest in distance learning to provide this population with access to education.
Note C: In order to ensure students can complete their degrees in a timely manner, the University needs to provide them with appropriate and timely access to classes. Funds are needed to replace faculty positions not filled due to budget reductions, replacement of operating budgets, add new faculty, add more part-time faculty, provide a viable intersession, and provide additional space for classes.
Note D: Students need a variety of experiences to provide them with a solid foundation of learning. Such experiences must include cooperative education, field experience, internships, clinicals, an honors program, and international education opportunities. The University needs to work more effectively to retain a higher percentage of students that start on campus. Additional scholarship funds are also needed to assist students with financial needs.
Note E: The University has made a significant investment to purchase and implement the Banner 2000 system. With this investment, it is important the University develop and use the system to the fullest extent possible to provide students, faculty, and staff with the best services and information the system can provide. An important focus must be made on customer service.
Note F: This initiative is essential to integrating K-16 educational opportunities for Montanans and includes working with the College of Technology, Community Colleges, Tribal Colleges, High Schools, etc.
Note G: This is the amount of additional funds needed to get MSU-Billings Operation and Maintenance of Plant program to 13% of the General Operating Budget.