General Budget Framework Document FY 2010-2011 - Implementation

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

Implementation of Reductions

Phase-in period for reductions. The "Principles Document" refers to those University policies that apply to budget reductions that adversely affect university employees. These policies often provide notice and other procedural requirements that may require a period of time for implementation. Similarly, if academic programs are reduced or eliminated, student reliance may suggest a phase-in of any such reduction. In developing reduction scenarios, units may in appropriate circumstances propose a planned phase-in reduction not to exceed 3 years in length. In such a case, the unit shall also propose a method of bridging the phase-in with other funds. This provides an opportunity, if necessary, to utilize a three-year planning horizon for full implementation of the proposed reductions. However, units must keep in mind that if the economy does not improve, it is possible that additional reductions will be required in subsequent fiscal years. The emphasis should be on fashioning a plan for the reduction that produces the maximum revenue savings in the shortest amount of time.

Evaluation of cost implications of cuts. Evaluation of cost implications of cuts. Any proposed reduction should contain a careful assessment of the likely savings to be produced. This requires not only an assessment of the expenditure savings, but also a realistic assessment of any revenue to be lost by the reduction. For example, any proposed cut in an academic program must take into account loss of tuition revenue.

Revenue enhancements. Units may propose revenue enhancements to offset in whole or in part any proposed reductions. However, significant increases in student or other fees will be closely examined. If such fees are proposed, an alternative must also be included. Revenue enhancements may include proposals to increase enrollment of new students (not at the expense of another unit) and such proposals can be made with assurance that the increased revenue will be credited to the unit.

Efficiency enhancements. Units may propose changes to their operating procedures, academic requirements, or organizational structures that reduce costs and/or enhance revenue.

Moving expenditures to non-state aided accounts. Units may propose to move permanent expenditures to non-state-aided accounts. However, units should understand this would be a permanent change of funding, and might affect other programs currently funded by non-state-aided accounts.

Operating funds and non-academic personnel. A strong University cannot exist without productive faculty and faculty cannot be productive without adequate support in terms of operating funds and non-academic personnel. Proposals that appear to reduce the support that faculty need to succeed in their research and teaching will be closely scrutinized.