FY10 Budget Status Update

1
FY10 Budget Status Update

• University of Massachusetts Boston
• Faculty Council
• February 2, 2009

2
Review of UMass Bostons FY09 Budget Reduction
Plan

• UMass Bostons strategy for handling the FY09
  budget reductions was to enable the campus to
  absorb the mid-year reductions and provide us
  with time to plan for FY10 in a more thoughtful,
  thorough way.
• Key components of the FY09 plan include
• Shift of personnel expenses to trust funds, the
  majority only for the remainder of FY09 but some
  on permanent basis
• Delayed hiring for vacant positions
• Reduced use of temporary, non-benefitted
  employees
• Reduced use of overtime
• Delay of several FY09 new program initiatives
• Implementation of energy and operational savings
• Budget adjustments through project financing.

3
FY10 Plan

• As the guiding principle of decision-making at
  UMass Boston in both good and bad financial
  times, the strategic plan is the foundation of
  our plan for FY10. We are using the FY10 budget
  process to advance the implementation of the
  strategic plan and to ensure the strength and
  integrity of our academic enterprise.
• We are developing a budget for FY10 that ensures
  that we are prepared to handle the expected
  increased demand for our services.
• Therefore, we will manage state budget cuts in a
  way that enables UMass Boston to continue to
  provide high-quality, reasonably priced
  higher-education services to current and future
  students.
• We are reorienting our budgeting practice from a
  needs-based to an investment approach.
• Invest in departments/programs that will advance
  the goals of the strategic plan.

4
Growth, Both in Enrollment and through Fee
Increases, Are Important Parts of Our FY10 Plan

• We have created a Revenue Advisory Committee to
  help us develop an FY10 and multi-year revenue
  strategy consistent with goals of the Strategic
  Plan.
• Members include Ellen OConnor, Chair,
  Administration Finance Dirk Messelaar, CCDE
  Gary Siperstein, BLRPC Carol Colbeck, Graduate
  College of Education Donna Kuizenga, College of
  Liberal Arts Phil Quaglieri, College of
  Management Teresa Jardon, Financial Aid Lisa
  Johnson, Enrollment Management Anne Riley,
  Administration Finance Katie Hope, Budget
  Financial Planning and Jeff Poreda, Student.
• In addition, we have also instituted a Growth
  Planning Committee to help us understand and plan
  for the resources necessary to accommodate future
  growth.
• Members include Kathy Teehan, Co-Chair,
  Enrollment Management, Joan Liam, Co-Chair,
  Graduate Studies Patrick Day, Student Affairs
  Donna Kuizenga, College of Liberal Arts Anita
  Miller, Academic Affairs Jennifer Brown,
  Institutional Research David Cesario, Registrar
  Joan Becker, Academic Support Services Sue
  Wolfson, Administration Finance Katie Hope,
  Budget Financial Planning.

5
We Expect Enrollment To Continue To Grow in FY10

• Current projection for Fall 2009 is that
  enrollment will grow by 5.3 to 14,866.
• UMass Boston is well positioned in the higher
  education market during this time of economic
  turmoil.
• The most recent admissions data shows that spring
  enrollment is up over 10 compared to the same
  time last year.

Source Enrollment Management OIRP
6
Higher Enrollment Will Generate Additional
Revenue in FY10

• UMass Bostons current projection for Fall 2009
  enrollment is 14,866, an increase of 5.3 that
  would generate approximately 1.75M in new
  revenue for our campus.
• If enrollment were to increase by an additional
  500 students to 15,366, the total
  enrollment-driven increase in revenue would be
  4.0M.

7
Preliminary Estimate of Size of FY10 Budget
Challenge

• Revenue growth from increased enrollment will not
  be nearly enough to solve the FY10 budget problem.

• An additional option to help close the gap would
  be a fee increase. UMass Boston commits to using
  20 of any fee increase for financial aid.

8
Process To Close FY10 Budget Gap

• The FY10 process will include a rigorous review
  of base budgets for consistency with the
  Strategic Plan, not merely focus on requests for
  new resources.
• The Vice Chancellors will develop 2 scenarios to
  reduce their base budgets
• 6 reduction
• 9 reduction.
• We are requesting these scenarios to be able to
  understand the implications of major spending
  cuts on our academic enterprise and campus
  operations. Reductions in base budgets can also
  provide resources to redirect to new initiatives
  aligned with the strategic plan.
• In addition to expense reductions, we are
  examining revenue options.
• FY10 budget process will be all funds.
• Personnel
• We will expand position budgeting to cover
  positions supported by trust funds.
• We will continue use of the newly instituted
  controls over hiring of non-benefitted employees,
  including for part-time faculty.

9
FY10 Budget ProcessUpdated Key Events Timeline
10
FY10 Budget Decision-Making Framework

• UMass Board of Trustees
• Establishes broad policy for the 5 campuses
• Approves fees and annual budgets for all campuses
• Presidents Office
• Directs and coordinates fee-setting and budgeting
  planning for all campuses

• Strategic plan goals will drive FY10 budget
  decisions
• During the FY10 budget process, the various UMass
  Boston committees and groups shown here will
  interact with one another and share information
  on a regular basis.

Reporting relationship

• Revenue Advisory Committee
• Will help to develop campus FY10 multi-year
  revenue strategy

• Growth Planning Committee
• Will help UMass Boston to understand and plan
  for the resources necessary to accommodate future
  growth

• Chancellor Exec Staff
• Establishes strategic priorities for UMass Boston
• Approves operating budget for campus consistent
  with UMass Bostons strategic priorities
• Deans
• Work with faculty to develop and implement
  academic vision for their colleges
• Work with their departments to develop budget
  requests consistent with UMass Bostons strategic
  priorities and goals for their college

• BLRPC
• Represents Faculty Council in operating budget
  process
• Provides input on budget process, on budget issues

• AF/Office of Budget Financial Planning
• Manages UMass Bostons annual budget process and
  supports the effective allocation and use of the
  campus financial resources

11
Conclusion

• Despite severe financial constraints, the FY10
  budget process will focus on the goals of the
  strategic plan
• Increase student access, engagement and success
• Attract, develop, and sustain highly effective
  faculty
• Create a physical environment that supports
  teaching, learning, and research
• Enhance campus community engagement through
  improved organizational structure.
• We know that budget cuts can be painful, and that
  even the smallest reductions have impacts.
• We also know that we must plan for continued
  enrollment growth and provide high-quality,
  reasonably priced higher-education services to
  current and future students.
• We pledge to have a transparent, participatory
  process to ensure that the campus community works
  together during these uncertain economic times.
• Overcoming these obstacles will require all of us
  faculty, students, and staff to pitch in, and
  to keep our eyes on our goal of making the
  University of Massachusetts Boston a great
  student-centered, urban public research
  university.