1. Cattlemen’s Beef Board Planning & Budgeting Process

2. 2 Pillars of Planning Process Knowledge-based Joint committees Inclusive process Collaboration Evaluation

3. 3 Joint Committees Establish program priorities Recommend programs (ARs) to Operating Committee Review programs

4. 4 Planning & Budgeting Process January/February – Joint Committees evaluate and establish priorities March – Operating Committee reviews committee priorities and provides input to planning process April – CBB estimates revenues and cost of CBB-only budget components

5. 5 Planning & Budgeting Process May – Committee leadership reviews detailed program plans and develops recommendations to Budget Committee May – Joint Industry Budget Committee estimates all checkoff revenues and recommends industry program budget May – Operating Committee reviews and recommends the annual budget to the CBB

6. 6 Planning & Budgeting Process May – Executive Committee reviews administrative portion of budget & makes recommendation Summer conference – CBB takes action on annual budget recommendation September – Operating Committee approves plan of work and sends approved ARs to USDA for approval

7. Budget Development

8. 8 CBB FY2011 Amended Budget

9. 9 Budget Development Producer involvement is a standard feature of budget development process Budget Committee considers financial resources from all industry partners when recommending industry budget Budget set at beginning of each year but process allows for amendments in emergency situations

10. 10 Budget Development Individual costs within an approved AR may vary between tactics within the same strategy Funding cannot, however, be moved to a different strategy or AR without approval from the Operating Committee

11. 11 Two Major Expense Types ProgramImplementation Direct Expenses Examples: Advertising costs Retail promotion Printed materials Allocation of Salaries & Benefits, Admin Overhead Examples: Staff salaries Staff benefits: health insurance, pension Rent, utilities, telephone Admin expenses: HR, accounting, IT Equipment: copies, printers, computers

12. 12 Checkoff dollars are paid to contractors on cost- recovery basis only Cost-Recovery

13. 13 Checkoff Budget Woes CBB national checkoff program budget for Fiscal 2011 is 20 percent lower than our Fiscal 2007 budget – and it’s likely to get worse before it gets better.

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