General Budget Framework Document FY 2010-2011 - Timeline

General Budget Framework Document
FY 2010-2011
January 29, 2010

II. Timeline for Implementation of Procedures

The timeline contained in this document is designed to initiate the process for permanent reductions. Initial steps required by the Procedures Document, including publication of this general budget framework document, will be completed by February 1, 2010. Preparation by Deans and Directors of budget cut proposals should be completed no later than March 1, 2010. However, the earlier cuts can be finalized and reviewed by the APC, the easier it will be to manage the reduction and the less uncertainty will be experienced by the campus.

A critical step in any budget reduction process is when the Chancellor makes public his recommendations for cuts, which permits the Academic Planning Committee to conduct the public hearings required by the Procedures Document. Public identification of a cut has serious consequences for the employees and any clients associated with that unit. These consequences can include loss of morale and reduction in the effectiveness of that unit, even if the cut ultimately is not required. Thus, ordinarily, we try to delay public announcement of any recommended cut until there is greater certainty that a cut is required. At the same time, those associated with any proposed reduction are entitled to a thoughtful hearing before the Academic Planning Committee, and hearings held too close to the end of the academic year or in the summer are less effective and can create an appearance of unfairness. This presents a significant dilemma, given that any budget reduction will not be absolutely certain until June 2010, when the Board of Regents adopts its amended budget. However, this year, because we already know the minimum amount of required budget reductions for FY10 and FY11, based on the November 2009 Special Session of the Legislature, it may be possible to announce proposed budget reductions as they are formulated rather than all at once. This will allow the APC to stagger its workload and will provide some affected units more time to make budget adjustments. This framework contemplates this as a possible way to proceed. If we do adopt this process, the Chancellor will be available to the APC, on a confidential basis, to discuss the broader context in which the cuts are being considered. Thus, the intention is to announce recommended cuts as they are formulated, and some may be announced prior to March 1.