Budget Office Division of Business and Finance

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Budget OfficeDivision of Business and Finance
DEVELOPING A UNIVERSITY-WIDE BUDGETAn Overview
of the External Budget Development Process
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What is the University-Wide Budget?

• Total Current Funds - Unrestricted and Restricted
• At USC, this includes funds
• A, B, C, D, E, F, G, H, J, K, L, S, R RP
• Excludes funds
• T, V, W, X, Y Z
• At the state level, our funds are
• General Funds (state appropriations)
• Other Funds (also called earmarked funds)
• Restricted Funds

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UNIVERSITY OF SOUTH CAROLINA COLUMBIA
ONLY Summary of Current Funds Revenue 1996-2006
10 Year Growth in Current Funds Revenue 74.3
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UNIVERSITY OF SOUTH CAROLINA COLUMBIA
ONLY Summary of Current Funds Revenue FY2006
Budget
Does not include School of Medicine
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UNIVERSITY OF SOUTH CAROLINA COLUMBIA
ONLY Summary of Current Funds Expenses 1996-2006
10 Year Growth in Current Funds Expenditures
71.3
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UNIVERSITY OF SOUTH CAROLINA COLUMBIA
ONLY Summary of Current Funds Expenses FY2006
Budget
Does not include School of Medicine
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USC Campuses
USC Columbia USC Aiken USC Lancaster USC
Beaufort USC Salkehatchie USC Upstate USC
Sumter USC Union

• Senior and Regional Campuses account for over
  200M (24) of the Total Current Funds of USC
• Enrollments on these campuses are 30 of USCs
  total student count

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External Budget Development Execution

• Budget Development
• Commission on Higher Education
• Governor
• General Assembly
• Budget Execution
• Budget Control Board
• State Treasurer
• Comptroller General

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Commission on Higher Education

• The South Carolina Commission on Higher
  Education (CHE) operates pursuant to South
  Carolina Code of Laws (Title 59, Chapter 103) to
  serve as the coordinating board for South
  Carolinas 33 public institutions of higher
  education.
• The major functions are advocacy and
  coordination, information services,
  accountability, and administration.
• The CHE is organized into four divisions
  Academic Affairs and Licensing, Finance,
  Facilities and Management Information Services,
  Student Services, and Access and Equity.
• Mission Resource Requirements Model
• Performance Funding Reporting
• Below the Line Requests
• Capital Budget Requests
• Access Equity Funding
• Academic Endowment Incentive
• Lottery Funds Scholarships

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Commission on Higher Education Public
Institutions

• Sector I Research Institutions
• USC Columbia (includes School of Medicine)
• Clemson
• MUSC
• Sector II Teaching Institutions
• The Citadel Lander
• Coastal Carolina SC State
• College of Charleston USC Aiken
• Francis Marion USC Beaufort
• USC Upstate Winthrop
• Sector III Regional Campuses
• USC Lancaster USC Sumter
• USC Salkehatchie USC Union
• Sector IV Technical Colleges (16)

South Carolinas 33 higher education institutions
are split into four sectors
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Commission on Higher Education

• Act 359 passed in 1996 gave authority to the CHE
  to submit the annual budget request for all of
  higher education and to establish the funding
  methodology for all institutions based on the
  institutions achievement of performance funding
  standards.
• As part of the implementation of performance
  funding, the CHE designed the Mission Resource
  Requirements (MRR) to provide an estimate of the
  budget needs of all public institutions.

Performance Funding Mission Resource
Requirements
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Mission Resource Requirements

• The MRR is a 10 step model
• Step 1 Instruction
• Three year average credit hour production by
  discipline
• Pre-determine student/faculty ratio
• Pre-determine faculty salary average
• Allowance for fringes
• Step 2 Research
• Calculated at 30 of sponsored research
  expenditures
• Step 3 Public service
• Calculated at 25 of sponsored public service and
  non-general fund public service expenditures
• Step 4 Libraries
• Prior years expenditures per FTE inflated by
  HEPI
• Step 5 Student Services
• Prior years expenditures per headcount inflated
  by HEPI

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Mission Resource Requirements continued

• Step 6 Physical Plant
• Calculated by five formulas for general services,
  building maintenance, custodial services, grounds
  maintenance and utilities
• Step 7 Administration
• Calculated at 25 of Steps 1-6
• Step 8 Total Education General Cost
• Sum of Steps 1-7
• Step 9 Revenue Deduction
• Target revenue based on 50 of in-state
  undergraduate student revenue and 100 of
  out-of-state undergraduate revenues
• Actual fee revenues are deducted for graduate
  students
• Medical students are calculated at 30 in-state
  and 75 out-of-state
• Step 10 State Support Needs Amount
• Step 8 less Step 9

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FY 2005-2006 Mission Resource Requirements
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Mission Resource Requirements FY 2005-2006
All South Carolina Public Institutions
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Mission Resource Requirements FY 2005-2006

• USC Columbias performance funding score is
  consistently one of the highest in the state with
  a substantially exceeds requirements rating
  but no new funds are currently tied to
  performance funding.

USC Columbia
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Change in State Appropriations - Columbia Campus
(excludes School of Medicine)
USC Columbia FY 1996 FY 2006
State Appropriations 132,913,554 138,481,591
of Total Current Fund Revenue 37.2 22.1
Reduction in State Appropriations FY2001 to FY
2006 - over 45,000,000
Does not include School of Medicine
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State Funding Changes Columbia Campus(excludes
School of Medicine)

• New state funding is for designated purposes, not
  for
• general operations
• These new funds do not offset the over 45M
• reduction in state funding
• Pay package increases require a commitment of
  University
• dollars as the state covers approximately
  two-thirds of the
• increase
• For FY2005 the USC amount of the 3 pay package
  was
• 1,483,041
• For FY2006 the USC amount of the 4 pay package
  was
• 2,457,957

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USC Columbia State Appropriations -
Below-the-Line and Special Funding
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Columbia Campus State Appropriations and Tuition
Fees
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USC Columbia Campus Enrollment Headcount History
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Budget Control Board - Office of State Budget

• State Detail Budget Submission - Line-item
  Budget
• Report three years each fall actual for fiscal
  year just ended,
• update current year for legislative changes,
  and plan next fiscal year
• Establish spending authority for all unrestricted
  and restricted funds
• Governors Submissions
• Operating capital requests and provisos
• Agency Activity Inventory
• New for FY2007 Agency Accountability Report
  based on Baldrige criteria (in conjunction with
  Institutional Planning and Assessment)
• Fiscal Impact Statements
• Throughout legislative session, complete fiscal
  statements with USC impact from various
  legislation

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Timeline

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QUESTIONS