2. Budget Update Senate Meeting April 17, 2008

3. Latest News UBAC provides recommendation to President by which structural deficit (extant and expected) is erased with a 3.4% cut to University’s baseline budget. Recommended cut for AA is 3.5% President and Cabinet are reviewing rec.; likely will approve, at least pending May Revise Based on this, I have asked the deans to reduce by half the funds to be cut from their budgets and to place the savings back in the schedule immediately. Deans have discretion in the matter of replacement with emphasis on maximization of enrollment. Outcome: For 2008-09, something between 3.5 and 7%, could well be 4.5%

4. Assumptions Still Operative 1.Duration of budget crunch: 2-3 years (at least) 2.State revenue shortfall of $15-$20 billion, 08-09 3.End of crunch: no $ restoration; new enrollment $ only

5. “New” Money Under New Enrollment Formula 1000 Additional FTES @$3,400 per FTES to AA = $3.4 million -Instructional costs at current rate and distribution of students across colleges ($2 million) = $1.4 million for priorities/investments (including additional faculty to teach new students)

6. Focus on “Carried Forward” Funds “Baseline Funds” (Ongoing, renewed yearly, subject to state cuts) Types:Committed (e.g., salaries): colleges, library, AA units Multiple-year “One-Time” (e.g., CTL) Reserve (produce “carry-forward”) “Carried-Forward” (Unspent baseline funds from previous year (s), originally produced by not spending a % of baseline) At risk: may be swept Not renewable Important: Not rainy-day funds but discretionary OE

7. Seeking Balance Preserve Enrollment (risk: drop in student course load via reduced sections, drop in FTES) Preserve “Necessities” (assigned time, OE, fac. dev. etc.) (risk: save all enrollment, gut all else) Timeframe: 1 year, 2 years, 3 years? (risk: spend all carried forward funds to plug holes in year 1; fall off cliff in year 2)

8. 08-09 7% Scenario (5.5% for Colleges and Library) (Note: All Projections are Estimations) Total Baseline Budget: $94m Gen Fund Reserve: $680k (less than 1% of $94m) (+ differential in hires/seps) to produce carry-over (cf for Equip 09-10) Carr Forw Reserve: $4.13m [- $2m* = $2.13m cf] Carr Forw Equip $: $2.13m [- $1.2m = $930k cf] *$1m, course schedule; $185k, new advising policy (already committed $165k); $200k retention initiative; $315k Academic IT strategic initiative; $300k, other

9. 09-10 7% Scenario (5.5% for Colleges and Library) Gen Fund Reserve: $680k (+ differential in hires/seps) to produce carry-over (cf for Equip 10-11) Carr Forw Reserve: $2.13m [- $1.2m* = $930k cf] Carr Forw Equip $: $930k + $680k [- $1.2m = $410k cf] *$600k, course schedule; $185k, new advising policy; $100k retention initiative; $165k Academic IT strategic initiative; $150k other

10. 10-11 7% Scenario (5.5% for Colleges and Library) Gen Fund Reserve: $680k (+ differential in hires/seps) to produce carry-over (cf for Equip 11-12) Carr Forw Reserve: $930k [-$700k* = $230k cf] Carr Forw Equip $: $410k + $680k [- $1.09m = $0 cf] *$150k, new advising policy; $100k retention initiative; $150k Academic IT strategic initiative; $300k, other

11. 08-09 3.5% Scenario (2.75% for Colleges and Library) (Note: All projections are estimations) Total Baseline Budget: $97.5m Gen Fund Reserve: $1.18m (+ differential in hires/seps) to produce carry-over (cf for Equip 08-09) Carr Forw Reserve: $4.5m [- $2m* = $2.5m cf] Carr Forw Equip $: $2.13m [- $1.2m = $930k cf] *$1m, course schedule; $185k, new advising policy (already committed $165k); $200k retention initiative; $315k Academic IT strategic initiative; $300k, other

12. 09-10 3.5% Scenario (2.75% for Colleges and Library) Gen Fund Reserve: $1.18m (+ differential in hires/seps) to produce carry-over (cf for Equip 10-11) Carr Forw Reserve: $2.5m+$930k [- $1.58m* = $1.85m cf] Carr Forw Equip $: $1.18m [- $1.18m = $0 cf] *$845k, course schedule; $185k, new advising policy; $200k retention initiative; $200k Academic IT strategic initiative; $150k other

13. 10-11 3.5% Scenario (2.75% for Colleges and Library) Gen Fund Reserve: $1.18m (+ differential in hires/seps) to produce carry-over (cf for Equip 11-12) Carr Forw Reserve: $1.85m [-$900k* = $950k cf] Carr Forw Equip $: $1.18m [- $1.18m = $0 cf] *$185k, new advising policy; $200k retention initiative; $200k Academic IT strategic initiative; $315k, other