TO:   Policy Committee

FROM:   Richard A. Crofts, Commissioner

SUBJECT: FY 2002 Operating Budgets

DATE: June 26, 2001

The Board of Regents will take action on proposed operating budgets at the September meeting. In order to help keep the focus on priorities, goals, and direction, I am suggesting the following guidelines for and components of your submission. Laurie Neils will be working with your fiscal officers on the more technical details of your submission.

The submission of operating budgets should include a one-page executive summary from the CEO reporting on the level of achievement of the priorities and goals included in the operating budgets for FY 2001 approved by the Board of Regents.

The submission of operating budgets should include a one-page executive summary that identifies the priorities, values, goals, and commitments reflected and incorporated into the proposed operating budget. References should be made to the goals and objectives included in the campus and universities planning documents. Special reference should be made as to how the proposed operating budget contributes toward the implementation of the Mission, Vision, and Goals of the Montana University System (copy enclosed).

The budget targets established by the Board of Regents beginning with the FY 2001 budget continue in place. Given the importance of enrollment reserves and library resources, the assumption is that the operating budget of each campus will include at least a 2% enrollment reserve and the appropriate commitment to library expenditures (6% of the operating budget for the four-year campuses; 3% of the operating budget for the Colleges of Technology at Helena and Great Falls). In addition, we expect to see (1) continued progress toward a 5% commitment to technology infrastructure (Rod Sundsted will be sending your fiscal officers directions on reporting on this item); (2) increasing expenditures for professional development for all groups of university employees; (3) increasing expenditures for operations and maintenance of our physical plants.

The CEO should report on what improvements in quality and productivity will be achieved due to the additional 1% of tuition increase approved by the Regents in May. A couple of campuses have reported to me that their current budget plans require further programmatic and personnel reductions despite the tuition increase of 5/13% approved by the Regents in May. If you are unable to report improvements in quality and productivity, then you should address the reasons for that in this section of your submission.

Finally, the July meeting of the Board of Regents has planning for FY 2002 operating budgets on the agenda. I am providing the Regents a copy of this memo. During the upcoming meeting they will have the opportunity to comment on this memo or make other decisions about next year's operating budgets.



cc: Board of Regents

OCHE Staff