Performance-Based Budgeting

Steering CommitteeJanuary 28th, 2013

AgendaIntroductions (Monica and Sona)

Where we left off (Monica)

PBB working group report -attribution tool Revenue Costs (Direct and Indirect)

Next… moving from an attribution tool to PBB (Sona)

Where we left off 2011-2012 Built a Revenue and Cost Attribution

tool – prelude to PBB Essential for understanding our budgetary

environment (long term: revenue = expenses) Attribution tool is not the budget model The attribution tool is not an SCH model. It

examines the source of all revenue and attributes it accordingly . It will adjust to future changes (State Allocation based on degrees granted, credit for prior learning versus SCH)

Cross subsidies are acceptable, but must be understood and have an upper limit.

What is in a name A common language

Attribution tool (AT) Budget Attribution Tool (BAT) Revenue and Cost Attribution Tool (RCAT) Other? Steering Committee Recommendation

PBB Working GroupThe Attribution ToolSEE HANDOUT 1 Built using 2012-2013 budgets and current

enrollment. REVENUE

Tuition (Undergrad and Grad) Actual versus theoretical tuition collected, residency, differential, UNST classes, SCH redistributions, includes tuition from summer and Salem Center

Remissions IDC (predicted, can be updated) Targeted revenue State Share of research funding State Share of Instruction

Attribution Tool (Handout 1)EXPENDITURES

Direct Expenses Summer Session and Salem Center

Adjustments (1 year only) NACUBO Categories- (expenditure

classification by function)

Attribution Tool (Handout 1)EXPENDITURES

Indirect Expenses- Steering group decisions (close calls)

NACUBO Category

Driver

Academic Support X

Institutional Support

Y

Cost DriversAlternatives

2-Close Calls Institutional support and Indirect Component of O and M

Research – fixed per steering committee instructions

Summary of effect of different drivers Discussion of whether the group wishes to change

drivers

Effect of Different DriversINSTITUTIONAL SUPPORT

Cost Driver UGE CLAS SSW SBA GSE MCECS FPA CUPA Total

Student, Faculty & Staff Headcount 50,544$ 11,124,858$ 1,031,982$ 3,115,147$ 1,449,575$ 2,645,555$ 2,451,158$ 2,896,750$ 24,765,570$ Student, Faculty & Staff FTE 1,674,998$ 12,529,519$ 782,350$ 2,339,343$ 1,773,164$ 1,457,363$ 1,837,261$ 2,371,572$ 24,765,570$ Net Effect of Change in Driver (1,624,454)$ (1,404,661)$ 249,633$ 775,804$ (323,589)$ 1,188,191$ 613,897$ 525,178$ -$

OPERATIONS & MAINTENANCECost Driver UGE CLAS SSW SBA GSE MCECS FPA CUPA Total

Student, Faculty & Staff FTE 1,442,630$ 13,119,151$ 1,126,328$ 2,098,800$ 1,675,063$ 3,225,190$ 3,304,710$ 2,952,702$ 28,944,574$ Student, Faculty & Staff Headcount 310,474$ 12,140,179$ 1,300,308$ 2,639,493$ 1,449,539$ 4,053,295$ 3,732,563$ 3,318,723$ 28,944,574$ Net Effect of Change in Driver 1,132,156$ 978,972$ (173,980)$ (540,693)$ 225,524$ (828,105)$ (427,853)$ (366,021)$ -$

Moving from an Attribution Tool to a Performance Based-Budgeting

Objectives

Get input from the group on the ATAt the end of today’s session we will have a better sense of:

It’s effectiveness for budget modeling What modification are needed to the AT

Questions for the Team

What is in the AT that might make it an effective tool to “feed” a budget model?

What is missing from the AT that prevents it from being an effective tool to “feed” a budget model?

What is missing to “feed” an effective budget model that cannot be part of the AT?

Work Session Every member of the Steering committee uses as

many post-it notes possible to provide responses to each of the 3 questions (put your initials in the lower right corner)

Stick post-its randomly on the white board with the appropriate question number

Break up into assigned groups and categorize individual responses

Label the categories

Group Conversation

Have a group conversation about the categories Do they feel right? What is missing?