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Business and Financial Affairs

Fiscal Year 2017 Operating Budget Call

TO: Cabinet

FROM: George Clark / Adrian Naranjo

DATE: January 11, 2016

RE: Fiscal Year 2017 Operating Budget Call


Below please find the assumptions Business & Financial Affairs is using to set up department budgets. Please review the following information and then respond if you require additional funding to meet operational needs in Fiscal Year (FY) 2017, or if you intend to alter your organizational configuration.

Assumptions for FY 2017:

1. Salary Actions

a. Faculty salary increase of 3%
b. Classified represented and non-represented salary increase of 1.8%
c. Exempt salary increase of 2% (Tentative)

2. Employer Pension and Benefits

a. Rate and funding will be determined during January – March 2016 legislative session

3. Fiscal 2017 tuition rate reduction of 15% for resident undergrad students. The state has allotted funding to cover the 15% reduction in tuition for 8,823 student FTE. Student FTE is the driving factor for the state funding and therefore the FTE true up will determine if there will be any increases or reductions in funding for general state support, pensions and insurance,
targeted programs, and financial aid policy.

4. 2/1 Program: This concept only applies within the University/ASL overhead for the President, BFA, Provost, Library, Student Success, OISP, and Graduate Studies and requires that the overhead units identify efficiencies to cover the salary increases not met with the 1% increase in overhead base budgets.
Ledger 1 targets-accountable at VP Level* (revised)

5. Macro targets have been established for Ledger 1 budgets by VP and Self-Support units with automatic built-in budget constraints (expenses cannot exceed revenue unless there is specific carryover plans along with efforts to become revenue positive in long term).

6. iCAT investments: $750K to $1.1M funding for Fiscal 2017 from the CWU Reserve.
Any reorganizational changes need to be submitted by February 15th so the structure is accurate when departments are entering their budgets in March ‘16.

New Funding Requests

March's budget reconciliation process is the time to determine if new funding is required to operate your division/department. This year we will use two forms, to evaluate and prioritize funding requests:

1) New Funding Request form. This form allows you to describe your request, justify the needs for additional funds, and correlate your request to goals and strategies in the CWU Strategic Plan.

2) New Funding Request Priority Grid. This form allows you to clearly summarize your funding request and place it in priority order.

The university budget will be finalized in Spring 2016. The Cabinet will update the CWU Board of Trustees on May 20th, and the budget/finance managers will work with departments to finalize the fiscal year 2016 budget by June 15th.

Instructions on budget implementation at the department level will be communicated prior to March 2016. The following timeline list the budget-development activities, leading to the Board of Trustees meeting in May whom would need to approve our fiscal year budgets.

FY 2017 Budget Development Timeline:

January 29th - Fiscal 2017 Revenue Expense Forecast
February 15th - All re-organization changes submitted to the Budget Office
Feb – March - Track legislative budget proposals and impact on CWU internal budget
March 21st - College/Departmental Request(s) for new funding, with supporting justification and priority grid due to VP/COS
April 4th - New funding request(s) for one-time funding with supporting justification and priority grid due to Vice President Business and Financial Affairs and Budget Office
April 13th - Cabinet review of proposed budget / reconciliation in Hyperion (Cabinet Retreat)
April 29th - Department Reconciliation of 2017 State Budgets in CatPlan
April 29th - Department Reconciliation of 2017 Self-Support Budgets in CatPlan
May 20th - Board of Trustees Fiscal 2017 Budget discussion and Approval
May 23rd - Notify Budget/Finance Managers of final budget for Fiscal 2017
May 30th - All approved faculty tenure and promotions will be entered into CatPlan by the Senior Academic Finance Manager
June 15th - Budget/Finance Managers final budget reconciliation

For your information, I also have provided projected revenues by funding source, a graph that shows the anticipated revenues by fund for fiscal year 2017 based on the best estimates of the budget/finance managers in January. The biennial capital budget tracking form is included for your information.

Attachments:
1. Administrative Assistants assigned by division for Hyperion (CatPlan) input
2. Ledger-1 Budget by Division
3. Summer Session Budget forecast
4. New Funding Request document (Word)
5. New Funding Request priority grid (Excel)
6. Projected Revenues by Funding Source (PowerPoint graph)
7. Budget Allocation Transfer Request (base to base funding)