General Budget Framework Document FY 2009-2010 - Implementation

General Budget Framework Document
FY 2009-2010
Preliminary Draft
March 5, 2009
V. Implementation of Reductions

Any reduction will ultimately require approval or acquiescence by the President of the University and the Board of Regents. Those principles will, of course, supersede anything in this document that is inconsistent.

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 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.

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 in the form of user fees 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.

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.