Last week was not only the first week of a new fall term, but it was also the start of the Academic Affairs budget and enrollment planning for FY16. FY 16 will be our second year of performance-based budgeting (PBB). PBB is a change from the incremental budget setting that PSU used in the past and it no doubt will take some time for everyone to have a full understanding of how it works and for us to use it to its full capabilities.
This new model changes our budget paradigm. Whereas in the past we set budgets and then determined what we could do with those funds, we now have a process whereby we assess what is possible and feasible and develop a budget to support that. This requires an integrated planning approach that begins with school/college level Strategic Enrollment Management (SEM) plans. SEM planning anticipates the ups and downs in trends of demographics, enrollment, and demand; articulates the strategies units will use to improve success of current students; lays out recruitment efforts for new students; and identifies potential new programs. The SEM plans are done at the school/college level with each having an internal process. The SEM plans are critical to projecting revenue generated by tuition, which along with the state appropriation and fees establishes our Education and General (E&G) to support the teaching, research and services provided by the university.
The process of SEM and PBB planning is an integrated one and is a combination of analyzing data and making assumptions on student decisions. It needs to take into account the interdependence units have on one another and how we function as a university as a whole. It is a process that cannot and does not take place behind closed doors. It is iterative as can be seen in its timelines
that are publicly posted and have been shared with the deans, the Faculty Senate Budget Committee, and all academic department chairs/directors. I do not expect that everyone has had a chance to grasp all the aspects and capabilities of this new way of planning and budgeting. In the spring we did create a short 9 minute video
to explain the basics of PBB and I have started to write PBB issue briefs
to help demystify concerns as they emerge.
On October 13th from 3-4 pm in SMSU 296/298 (and repeated again on the 17th from 9-10 am in SMSU 236) I will host open forums to provide a recap on the Academic Affairs FY 15 budget, to share information on the FY 16 SEM and PBB process, and to listen to concerns and questions you might have. I encourage you to attend as well as to use this blog to share your views.